Stay Competitive in the Manufacturing Industry Through Localisation

According to the Economic Development Board, The Asia Pacific (APAC) region is one of the global hubs for manufacturing and accounts for approximately 49% of the world’s manufacturing output. Over the next 5 years, the APAC market is expected to register a Compound Annual Growth Rate (CAGR) of 7.6%, with manufacturing being one of the most significant contributors.  

APAC is an attractive region for global manufacturers to invest in due to its geographic, regulatory, economic and demographic advantages. Favourable factors present myriad opportunities for businesses to thrive, owing to lower costs, availability of a diverse talent pool, accessibility of established manufacturing bases, the rapid development of technological advancements and state-of-the-art infrastructure facilities.

Product localisation not only enables businesses to be agile and efficient by improving supply chain resilience and delivery lead times, it also increases competitiveness by levelling the playing field and tailoring products to meet local market demands. 

Gaining a competitive edge through localisation

Competitive costs
Localisation lowers costs as local production is generally more affordable than importing goods. Global manufacturers that wish to cut expenses can localise their products and gain a better understanding of the local market for boosted competitive advantage. 

Faster turnaround time
Local production and distribution allow for a faster turnaround for local customers. In industries such as manufacturing and electronics, swift responses are needed to cater to changing consumer demands and preferences. 

Regulations adherence
When it comes to manufacturing products and goods, different countries have different regulations and standards. Producing goods locally ensures that they adhere to local regulations, thereby reducing the risk of non-compliance and penalties. 

Environmental concerns
Manufacturing goods locally can reduce the carbon footprint associated with transporting products across long distances, resulting in a more sustainable and environmentally friendly production process.

Localisation as the new globalisation
Schaeffler currently has a broad manufacturing footprint with global advanced production facilities located right where its customers are. With a focus on expanding its local footprint, cost competitiveness and business mix, Schaeffler is making a positive contribution to the supply chain ecosystem while strengthening overall profitability.

Schaeffler Vietnam plant

Recently, Schaeffler expanded its footprint in APAC with a modern manufacturing facility in Bien Hoa City, Dong Nai, Vietnam. As a global production hub, this Vietnam plant manufactures a comprehensive range of industrial bearings, including an extended range of Radial Insert Ball Bearings (RIBB) both ISO and JIS range, Tapered Roller Bearings (TRB), Deep Groove Ball Bearings (DGBB), Mask Roller Bearing (HMR), Steering Column Bearing (SCB) or Schaeffler’s flagship product Needle Ball Bearings (NRB).

Developed as a pilot for a new digital manufacturing concept, Schaeffler Vietnam is part of the Group’s global network of 75 plants. Each plant within this synergistic network operates under the same production system and technology framework, meeting the highest requirements and standards in terms of efficiency and quality. 

Schaeffler Vietnam’s complete portfolio of quality products and technologies serves regional customers with best-in-class performance across 60 industrial sectors ranging from agriculture, construction, mining and two-wheelers. 

Schaeffler India plant

Schaeffler India celebrates a strong culture of innovation by leveraging best-in-class digital technology and the latest engineering tools and testing equipment to introduce relevant innovative products, optimise manufacturing processes and build local competencies. 

From design and engineering to manufacturing and service, Schaeffler India represents the global benchmark of excellence with a longstanding presence of over 50 years and well-represented major product brands – FAG, INA and LuK in the region. Schaeffler India currently operates one of APAC’s largest industrial manufacturing hubs, strategically located and specifically designed to meet the demands of regional customers.

Its two state-of-the-art facilities situated in Gujarat are well-equipped with unique in-house high-precision machines and tools based on German technology, dedicated to manufacturing a diversified mix of industrial products and bearings with flexibility and cost efficiency. Additionally, its plants are managed by highly experienced local engineers and operators who strive to deliver quality products.

For over six decades, Schaeffler India has operated its Maneja facility, which plays a crucial role in establishing the Group's presence in APAC as a major regional supplier of top-quality industrial products including spherical roller bearings, cylindrical roller bearings, tapered roller bearings, and wheelset bearings.

On the other hand, the Savli unit – Schaeffler India’s newest manufacturing unit – began operations just a decade ago and is renowned for its stringent quality control and utmost precision in processes such as heat treatment, precision grinding and honing. In fact, Schaeffler’s Deep Groove Bearings and Large-sized Bearings are manufactured at the Savli facility, best known for their reliability in critical applications.

A quick centre facility at Schaeffler India has also been purpose-built to offer customised products at ready-to-fit speeds according to the customers’ requirements. 

Pioneering motion for the industry of the future

Both Schaeffler Vietnam and India plants directly integrate quality assurance into their manufacturing processes, from procurement to production and assembly through to logistics which are all supported by stringent quality checks and audits to ensure precise, reliable and high-quality bearings and solutions. 

Innovation and manufacturing excellence are the lifeblood of Schaeffler. Combining the expertise of industry professionals and business partners' acumen, Schaeffler enhances its customers' competitiveness through localised innovation synergy and continues to pioneer motion for the industry of the future. 

Find out more on how Schaeffler is expanding its manufacturing footprint in APAC here. 

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