Recent initiatives by the United States are leading to increasing protectionism. While I am a staunch opponent of this, I do believe that manufacturing domestically can make a company much stronger. This is not only because of the practical advantages, but also because of the positive effects on society and the economy.
Of course, there are a few important conditions to make this a success. Two conditions I like to highlight: innovate and invest.
A good business model is a great start, but without constant innovation and adaptation, it quickly becomes outdated. By making smart use of new insights and technologies, a company can remain young, -agile and flexible. This can only be realized if you actually dare to invest in those innovations. Entrepreneurship is about leaving the old, familiar approach and opting for solutions that make the company ready for the future.
A good example is the labor-intensive production of custom plastic window frames. It may seem tempting to look at the lower labor costs and less challenging labor market in neighboring countries. However, the Dutch market has very specific requirements. Here, customization is in high demand: a variety of custom sizes with large window areas, demand for a variety of colors and textures, and a preference for fast delivery and reliable assembly.
Now I come to the importance of focusing on added value. The Dutch are quite willing to pay extra for a clean finish, the right color and fast delivery. What they don't want is to pay extra for mistakes, lost materials or miscommunication.
So the challenge is to get the various customer requirements right the first time. This starts with a smart digital information system that manages and controls the processes from A to Z. In addition, investments must be made in production itself. Because of the variation in products, manual work remains essential, but with new technologies, many processes can still be streamlined and automated, resulting in a more beautiful end product.
In this way, competitive advantages are realized in terms of quality, delivery time, cost and reliability. And that results in even more beautiful custom window frames for the Dutch residential consumer. That this also contributes to the strength of Dutch society and economy is a valuable additional return.