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How to handle globalization as a manufacturer



Globalization has been defined as the integration of economic, political, and cultural systems across the globe.As the manner in which businesses are conducted has changed dramatically in recent years, it has become increasingly more important to adapt strategies to remain competitive.Globalization is to be approached with an offensive tactic.This means that globalization should not be looked on as a challenge or a threat to your operations but rather as an opportunity to advance on a global scale.


As a manufacturer there are many different things that you can do to handle globalization.Some manufacturers find it is sufficient to be aware of the changes happening around them and that no changes to their specific operation are needed.These types of business who feel it is unnecessary to explore international options are usually the minority.Other manufacturers find that they must make changes directly related to globalization in order to continue progressing as a manufacturing business.

How to handle globalization as a manufacturer


  • Do your research on a global scale- as a manufacturer you are looking for various supplies, machinery, employee talent, etc.Instead of reviewing estimates and other possibilities that are confined to the United States, look further than our boarders to see if other possibilities exist.
  • - Consider international outsourcing- outsourcing is one of the most effective ways to benefit from globalization.By outsourcing portions of your operations or by outsourcing some of your workload you benefit from having less of an expense for the same product.
  • - Be opened to the possibility of moving your business to another country- some companies see so much success with outsourcing and using international talents, that they find it wise to move their entire operation out of the country.Benefits of doing so could include a lower cost of living and lower operational costs in many different countries.
  • - Increase international exports- globalization isn't all about utilizing the talents of others; you must also find a way to entice other international business people to do business with your company.Your international exports again strengthen your hold on the global market.
  • - Raise standards- in accordance with trade agreements (such as NAFTA), international quality standards are being set for products that are traded in the global marketplace. The International Organization for Standardization is responsible for the establishment of standards that provide quality management guidance and quality assurance requirements to international businesses. These standards allow manufacturing to receive certification for complying with world-class standards for quality.This certification is important to have especially if you are handling large global accounts and need for your international customers to trust that your product is in compliance with set standards of quality.

Other tips

Ask important questions. The following are some diagnostic questions that you can ask yourself if you are still contemplating whether or not globalization is something that you need to be thinking about.

  • Is there strong demand for my company's product here in the United States?
  • Is the overall health of my company good?
  • Is the industry of manufacturing of which I am a part seeing success as a whole?
  • Do my employees feel secure working at my manufacturing plant (as in are they worry free when it comes to their job security)?

If you answered no to all or some of these questions you may be a prime candidate for a re-fresher course in handling globalization.Globalization is like a wave of change that can carry the prepared business people and drown those who cannot handle the changes.It may be wise to take advantage of opportunities for an expansion of your manufacturing specialty.

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