Where is the best place to set up manufacturing facilities?

Ask a real estate agent about the most important aspect of buying a house, and he or she will probably tell you, "location, location, location." The same maxim applies to the manufacturing industry. In an economy that is increasingly globalized, the place where a manufacturing company chooses to set up shop is important not only for its immediate bottom line, but also for long-term growth prospects.

Writing for Manufacturing.net, contributor Jeff Sweeney argues that discussions of location are focused too much on the concepts of "off-shoring vs. on-shoring." The problem, however, is that this framing leads to zero-sum game, in which the establishment of a manufacturing base in one area is considered a loss for all competing areas.

Sweeney rejects this view. Instead, he argues that strategic offshoring can support domestic operations, and vice-versa. The real question, then, is "where is the best place to manufacture?"

It certainly doesn't hurt that, in the past few years, the playing field has leveled significantly. It is no longer obvious that offshoring is the best option for American manufacturing businesses. Costs are rising in other countries, while the U.S. energy boom has had a significant impact on local operations.

So, when companies look for the best place to manufacture, they may want to consider states that support businesses and enact policies that facilitate the development of CNC machine shops, which offer custom services that can benefit growing business operations. These are big advantages for companies that want to invest in the long-term growth of their business.