Due to the developments regarding Corona, awareness of supplier dependence and its influence on the supply chain is increasing, resulting in more nearshoring than ever!
The biggest consideration for outsourcing to low-wage countries is the cost per product. It is often thought that production in, for example, Asia is by definition cheaper than in the Netherlands. However, production companies in Western Europe with a high degree of automation prove the opposite.
The global effects of Corona are undoubtedly terrible, on the other hand it also creates more awareness in the supply chain, which is good news for the Dutch and overall Western European manufacturing industry.
One of the effects of Corona is that products and raw materials from other parts of the world are simply not available or are difficult to obtain. As a result, companies come to a standstill, for example, the closing of entire automotive factories just a few weeks after China went into lockdown. In the short term, this is without doubt negative, but because companies try to find suppliers who produce closer to home, awareness is created and people become aware of the fact that a product can also be produced for the same price level in Western Europe and even the Netherlands. There are enormous opportunities for the Dutch manufacturing industry and economy.
In this extraordinary period, Betech will also have the opportunity to prove that products can be made close to home for equal cost. Many internationally operating companies realize that they can buy a qualitatively equal or better product with a lower risk profile (delivery reliability) and at comparable costs.
Due to the very high degree of automation and therefore low added value in terms of labor costs, Betech is able to be a strong competitor of low-wage countries in, for example, Asia.
Betech has proudly been producing components for respiratory equipment at 2 of the 3 production locations for a few weeks now. A very nice example of Made In Holland and matching delivery reliability. In addition, Betech Plastics produces a lot of plastic screens for, among other things, office buildings, shops, restaurants and commercial vehicles to fight the spread of COVID-19. Click here for more information.
