The challenges faced by manufacturing companies in today’s global trade landscape are clear. Tariff policies introduced during the Trump administration in the United States, followed by measures from other countries, triggered a fundamental shift in supply chain dynamics. Growing geopolitical uncertainty and protectionist policies are putting pressure on the traditional centralized production model. Tariffs on a wide range of imported goods are driving up international operational costs and exposing vulnerabilities in global supply chains.

In light of these challenges, many companies are seeking ways to mitigate the risks associated with international logistics and rising costs. One increasingly adopted solution is decentralized production, which reduces reliance on imports, lowers customs duties, and helps maintain competitiveness in the global market.

What does Decentralized Production mean?

Decentralized production refers to the shift from large, centralized manufacturing hubs to localized facilities near end markets. This model aims to shorten logistics routes and enhance operational efficiency, enabling companies to respond more flexibly to market demands. In essence, it brings manufacturing closer to the customer, allowing businesses to cut shipping costs, reduce tariffs and increase product customization capabilities.

In practice, decentralization isn’t just about relocating production facilities. It also means adopting technologies that enable on-demand production and agile workflow management, reducing the need for large physical inventories.

What opportunities does decentralization offer with regard to tariffs?

Customs tariffs are a significant obstacle for companies that rely on foreign supply chains. When manufacturing takes place in countries with high import duties, sourcing costs increase, undermining competitiveness. Decentralizing production offers several opportunities in this regard:

• Eliminating import tariffs: Producing locally allows companies to avoid or significantly reduce costs associated with import duties. When production is relocated closer to target markets, there is no longer a need to pay tariffs on imported goods.
  

• Lower logistics costs: Centralized production often involves moving large volumes of goods across the globe. Decentralizing helps cut transportation expenses and improves overall supply chain efficiency in the long run.
  

• Increased flexibility and responsiveness: Distributed manufacturing enables companies to quickly adapt to demand fluctuations, avoiding bottlenecks and enhancing their ability to tailor products to specific customer needs.

Additive Manufacturing: The Enabler of Decentralized Production

Additive manufacturing is one of the most promising technologies for enabling decentralized production. With its expertise in advanced manufacturing solutions, Roboze has developed a range of technologies that empower companies to produce complex components near the end market, reducing costs related to tariffs, transportation and warehouse management.

Roboze solutions like the ARGO 1000 HYPERMELT allow the production of parts using high-performance materials such as Carbon PEEK, Carbon PA PRO, and ULTEM™ 9085.

• Carbon PEEK is extremely resistant, ideal for applications requiring high thermal and mechanical strength, such as aerospace and automotive.
  

• Carbon PA PRO offers excellent wear resistance and is used in high-performance mechanical components.
  

• ULTEM™ 9085 is a preferred material when a balance between heat resistance, mechanical strength, and lightness is required.

A key benefit of this approach is warehouse dematerialization. Traditionally, companies maintain physical warehouses filled with components ready for shipment. With local additive manufacturing, parts can be produced on demand, eliminating the need to stockpile components and reducing logistics costs while enhancing production flexibility.

The Roboze Smart Factories Model

Roboze’s Smart Factory concept integrates production, technology, and real-time data to create a highly efficient, responsive local manufacturing ecosystem. Smart Factories are intelligent production plants that leverage advanced technologies such as additive manufacturing, automation, and digital data management to optimize operations.

Roboze enables companies to implement these Smart Factories through a distributed network of facilities, each capable of operating independently and collaboratively. This model allows businesses to shorten production times, tailor products to local needs, and reduce logistics-related expenses.

To learn more about how this model works, visit Roboze’s dedicated page: Smart Factories.

Real-World Example: The Roboze and SLB Collaboration

A practical example of how decentralized production and additive manufacturing are transforming industrial operations comes from the collaboration between Roboze and SLB (formerly Schlumberger). This project involved establishing a Smart Factory in Saudi Arabia, where Roboze provided additive manufacturing technology for the local production of components for the oil and gas industry.

Thanks to Roboze’s solutions, SLB was able to significantly cut transportation costs and overcome tariff-related challenges by producing components directly on-site. Furthermore, local production improved the sustainability of SLB’s operations by reducing the carbon footprint associated with material and component transport.

This collaboration showcases the potential of Roboze’s advanced technologies in driving decentralized production, enhancing efficiency, reducing costs, and optimizing supply chains.

Get in touch with Roboze experts to discover how additive manufacturing solutions can optimize your production and help you tackle the challenges of today’s global market.

Start your journey toward decentralized manufacturing today!