Why is industry now moving from China back to Finland?

Over the past decade, we have seen significant changes in the manufacturing industry on a global scale. The relocation of production from Finland to China and other low-cost countries began significantly in the 1990s and continued strongly in the early 2000s.

With globalization, companies sought to take advantage of lower production costs, larger markets and more efficient supply chains. China, which opened its economy and attracted foreign investment, especially after Deng Xiaoping's economic reforms starting in the 1980s, emerged as one of the most popular destinations for production relocation.

New trend - "reshoring"

However, in recent years, a new trend has been observed, where Finnish companies have started to move their production back to Finland. This movement is not a coincidence, but rather a response to the growing need to combine high quality and competitive delivery times. Brione Oy, Finland's leading contract manufacturer of sheet metal production, has taken a leading role in this development.

The return of production to Finland, often referred to as "reshoring", has sparked widespread discussion in industry circles. There are many reasons behind this, including the vulnerability of global supply chains, the need for fast deliveries and growing awareness of environmental impacts.

Brione has been at the forefront of responding to these challenges, demonstrating that domestic manufacturing can be both a competitive and sustainable option.

What's wrong with the global supply chain?

Globalization has led to the expansion of many companies' production chains around the world. Asia, especially China and India, has emerged as a manufacturing hub due to the cost advantages it offers.

The cost advantage has clearly narrowed in recent years due to the drastic wage development there.

This transition has brought with it both opportunities and significant challenges.

In the manufacture of sheet metal products, where precision and material quality are at the center, companies have faced complex challenges in managing their supply chains.

1. One of the biggest challenges has been the increase in delivery times. Long supply chains mean greater risks of delays, which can be caused by logistical problems, political crises, strikes or global health pandemics, as we have seen in recent years.
2. Another key challenge has been quality control. Although cost savings have been significant in the past, distance and cultural differences have proven to make it challenging to consistently maintain quality. Quality differences are often due to the high turnover of personnel in the factory. It is common for an employee to leave for another job in search of a better salary. This leads to the fact that quality is extremely difficult to maintain.
3. A third, perhaps less-noticed challenge is the current global political situation with its various sanctions, as well as China's ambition to become a world power. In recent years, China has taken new steps towards a totalitarian state model, and competition with the West, especially the United States, also brings various risks to Finnish companies. In the annual press conference of the Finnish Security Intelligence Service, SUPO assessed that the main risks facing Finland come not only from Russia and religious terrorist organizations, but also from China.

Brione, recognizing these challenges, has taken a proactive approach. The company has focused on developing its own production in Finland, which not only shortens supply chains but also improves quality control and flexibility in line with customer needs. This has enabled Brione to respond to market demand faster and more efficiently, while maintaining the high quality for which Finnish work is known.

The focus on domestic production is not only a strategic choice. It is also a response to the growing expectations of many customers who value sustainable practices and shorter supply chains. Thus, Finnish sheet metal production not only meets current challenges, but also sets the standard for the manufacture of sheet metal products in the future.

Price-quality ratio and shorter delivery times

When production is brought back from China to Finland, price-quality ratio and delivery times play a key role. Brione has realized that maintaining a competitive advantage does not only rely on low manufacturing costs, but also on the quality of the products and the ability to deliver them quickly to customers. This is especially significant in the manufacture of sheet metal products, where complex and precision-requiring products are common.

When it comes to price-quality ratio, Finnish sheet metal manufacturers are often pioneers. Brione has invested in modern manufacturing technology and process efficiency. Thanks to these measures, the company is able to produce high-quality sheet metal products at a competitive price. Especially for customers who value the longevity and reliability of their products, the products manufactured by Brione offer significant added value compared to cheaper, but often lower-quality alternatives.

Delivery times are another area where the Finnish operator stands out from its Chinese competitors. When production takes place closer to the customer, logistical delays are significantly reduced. This not only speeds up deliveries, but also increases delivery reliability. Brione has shown that its ability to react quickly to customer needs and deliver products in the short term is a key factor in building and maintaining long-term customer relationships.

In today's business environment, where markets can change quickly, companies must be able to adapt flexibly to the situation. This is why keeping production in Finland is increasingly a competitive advantage.

Teknologinen edelläkävijyys ja joustavuus

Technology plays a key role when it comes to the return of manufacturing to Finland, especially in the context of the sheet metal industry.

Automation and advanced manufacturing techniques, such as laser cutting, laser welding and bending machines, enable the production of complex and precision parts quickly and efficiently. This not only shortens delivery times, but also minimizes errors in the production process, which in turn increases the quality of the final product.

Technology enables the company to adapt to rapidly changing order volumes and product specifications. This means that Brione, for example, can offer tailor-made solutions that meet exactly the customer's requirements, whether it is a small special batch or a larger scale production.

In today's business environment, where change is the only certainty, the combination of technological leadership and flexibility is a strategic advantage for many Finnish subcontractors. Smart design, experienced product development, cutting-edge technology, automation and robotics are among the biggest reasons why production is now moving back to Finland.

Sustainable development and local production

Sustainability has become an important theme in industry, and Brione has taken up this challenge by integrating the UN Sustainable Development Principles throughout its operations.

Promoting local production not only supports economic sustainability by providing jobs and strengthening the local economy, but also has significant environmental benefits. When production takes place close to customers and efficiently, the carbon footprint of logistical processes is significantly reduced!

Many Finnish companies, Brione at the forefront, are committed to using environmentally friendly materials and processes, which is reflected in all operations from the procurement of raw materials to the delivery of finished products. We constantly strive to reduce waste and improve energy efficiency, which not only reduces environmental impacts but also lowers costs, benefiting both the company and its customers. We monitor the electricity consumption of all machines 24/7 and have succeeded in reducing consumption by identifying waste points.

Customers increasingly value companies that take responsibility for their environmental impact and promote sustainable development. As a result, Brione's commitment to sustainable development and local production creates a strong foundation for companies' brands and increases customer loyalty.

Customer case: Successful return to Finnish production

One of the latest examples of a Finnish company's ability to respond to modern production challenges is Brione's cooperation with Tamergo Oy from Lempäälä. Tamergo previously purchased the Armi Aktiivituoli mechanics from China through a Finnish partner. They faced challenges, especially in managing their supply chain and with long delivery times. Especially in connection with large orders, when the warehouse was empty, the challenge was production delays.

When turning to Brione Oy, the main goal was to shorten delivery times and ensure high product quality. Brione Oy managed to develop a production process that clearly exceeded the customer's expectations. Delivery times were reduced from three months to approximately 3-4 days. Product quality improved and cost-efficiency remained competitive. Moving production to Finland brings significant benefits to Tamergo!

Future Outlook

Returning production to Finland is a response to logistical and quality challenges, but also a strategic choice that meets the growing demands for environmental responsibility and sustainable development.

Now is a good time to stop and consider whether production could be moved back to Finland. We believe that Finnish companies can compete with Chinese competitors with quality, speed and delivery reliability with honor. We believe that the risks of keeping production in China compared to the benefits are disproportionate. These risks may materialize even in a short time, depending on what happens in world politics.

In the future, we at Brione intend to continue investing in technology and process development, ensuring that the company remains at the forefront of its field. At the same time, the company will adhere to its principle of supporting the local economy and community, demonstrating that responsible and successful business go hand in hand.

Finland on the rise through cooperation!