Component manufacturing derisks supply chains efficiently
The guest argued that high-value component manufacturing is a highly durable onshoring strategy because it requires a smaller physical footprint and lower capital expenditure than full-scale assembly plants.
The argument
Rather than building massive factories to assemble entire vehicles, cities can attract boutique, high-tech component makers that fit into 40,000 to 80,000 square foot facilities, allowing for easier integration into existing urban infrastructure.
The thesis, stress-tested
✓ What validates it
- ✓Rising absorption rates for industrial properties under 100,000 square feet
- ✓Increased domestic sourcing mandates by major original equipment manufacturers (OEMs)
▸ Risks discussed
- ▸Labor shortages in specialized technical roles
- ▸Competition from lower-cost international component hubs
Hear it yourself
"This was kind of around the same time as the rise of like maker spaces and three d printing was kind of coming online. It looked like you could do some stuff in a smaller form factor. And we kept thinking like, this is a chance for us with these strong roots in manufacturing to to bring some of it back. And we got deep into it and really explored. We we formed something called the Urban Manufacturing Alliance in collaboration with San Francisco and the Pratt Institute in New York and our friends in the Philadelphia Industrial Development Corporation and in Detroit to just kind of bring cities who are interested in manufacturing together."
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