Trade barriers are reshaping how things get made, shipped, and sold around the world. Manufacturing companies are scrambling to keep up as new tariffs pop up overnight, supply chains snap, and old ways of doing business stop making sense. Piece by piece, the global manufacturing map is being redrawn. That’s where George Lawrie comes in. After two decades helping CIOs at billion-dollar manufacturing companies navigate rough waters, Forrester’s VP and Principal Analyst sees what’s coming next – and it’s going to take more than just moving factories around to stay competitive.
Adjusting to Rising Costs
Money talks and right now it’s saying things are about to get expensive. “You’re going to have to prepare for price increases,” George says. He’s talking about raw materials getting pricier as trade walls go up around the world. Some companies might need to slash their factory prices just to stay in the game when markets start closing doors. Most folks think they’ve got their supplier contracts locked down tight. But George has seen enough surprises to know better. “You need to look at contracts with suppliers, channels and customers,” he warns. Those airtight agreements might spring leaks when new tariffs hit, and those price escalation clauses nobody reads? They suddenly matter a whole lot.
Understanding Challenges of Accounting
Here’s a headache nobody wants: trying to figure out if you’re making money when duty bills show up weeks after your products have shipped. “Sounds a dull subject,” George admits about tracking costs of goods sold. But he’s watched too many companies get burned by overlooking this boring bit of business. Think about it – how do you price your stuff when you don’t know what it really costs until months later? The old ways of keeping books just don’t cut it anymore. Companies need better tools to catch these sneaky expenses before they eat up all the profit.
Strategizing Factory Locations with Technology
The days of just picking the cheapest place to make things are over. George watches companies scramble to figure out where to put their factories now that trade maps are being redrawn. But moving factories around isn’t enough anymore. “We do lots of research into using smart Manufacturing Technologies,” George explains. It’s not as simple as choosing between making things at home or overseas. Smart companies are mixing it up – some stuff close to home, some far away, all of it tied together with tech that helps them keep track of what’s really going on.
Strengthening Supply Chains for Resilience
Everyone talks about making their supply chains tougher these days. But talking is easy – doing it without breaking the bank is the hard part. George sees companies wrestling with this every day. “This is particularly important as well in achieving resilience and sustainability still meeting your cost objectives,” he points out. The trick isn’t choosing between being tough or being cheap – it’s finding ways to be both. The technology’s there to help companies figure this out. They just need to know how to use it right.
Certainly, manufacturing isn’t getting any simpler. But George isn’t telling companies to give up – he’s showing them how to get ahead of the game. From taking a hard look at contracts to getting smart about where and how they make things, companies have options. The world of trade is messy right now, and it’s probably going to stay that way. But that doesn’t mean companies have to get caught with their pants down. With the right tools and some clear thinking about how to use them, they can keep their operations running smooth even when trade rules try to trip them up. It’s not about having a crystal ball – it’s about being ready to roll with the punches when they come. And in today’s manufacturing world, those punches are definitely coming.
To learn more about George Lawrie and his approach, check out his LinkedIn profile.
