Manufacturing in China Custom Manufacturing: A New Trend in the Post-Pandemic World

The COVID-19 pandemic has disrupted the global manufacturing sector, exposing the vulnerabilities and risks of relying on long and complex supply chains. Many businesses have faced challenges such as shortages of raw materials, delays in shipments, and increased costs. As a result, some businesses have started to rethink their sourcing strategies and look for more resilient and flexible solutions.

One of the solutions that has gained popularity is custom manufacturing, which is the process of producing products that are tailored to the specific needs and preferences of customers. Custom manufacturing allows businesses to offer more variety, personalization, and innovation to their customers, and to adapt quickly to changing market demands and customer feedback.

China, as the world's largest manufacturing hub, has been at the forefront of custom manufacturing. China has a strong supply base, a large and skilled workforce, and advanced technologies that enable custom manufacturing. China also has a huge domestic market that is becoming more sophisticated and diverse, creating more demand for customized products.

According to a report by McKinsey[^1^][1], China's custom manufacturing sector has grown rapidly in recent years, especially in industries such as electronics, machinery, and consumer goods. The report also predicts that custom manufacturing will account for 15 to 20 percent of China's total manufacturing output by 2025, up from 5 percent in 2018.

The pandemic has accelerated this trend, as more businesses have turned to custom manufacturing to cope with the challenges and opportunities brought by the crisis. For example, some businesses have used custom manufacturing to produce medical supplies and equipment, such as masks, ventilators, and testing kits, to meet the urgent and diverse needs of different countries and regions. Some businesses have also used custom manufacturing to create new products and services, such as online education, remote work, and entertainment, to cater to the changing lifestyles and preferences of customers.

Custom manufacturing, however, is not without its challenges. Businesses that want to adopt custom manufacturing need to overcome some barriers, such as:

- Higher complexity and risk. Custom manufacturing involves more variables, uncertainties, and dependencies than mass production. Businesses need to manage the increased complexity and risk of custom manufacturing, and ensure that they can deliver products that meet the quality, cost, and time standards of customers.

- Higher skill and technology requirements. Custom manufacturing requires more skilled and trained workers, who can handle the diverse and dynamic tasks of custom manufacturing. Businesses also need to invest in more advanced and specialized technologies, such as 3D printing, AI, and ML, that can support custom manufacturing.

- Higher customer involvement and expectations. Custom manufacturing requires more communication and collaboration with customers, who have more input and influence on the product design and development. Businesses need to balance the customer involvement and expectations with their own capabilities and constraints, and manage the potential conflicts and trade-offs that may arise.

Custom manufacturing is a promising and powerful strategy for businesses that want to create value for their customers and themselves in the post-pandemic world. By leveraging the benefits and overcoming the challenges of custom manufacturing, businesses can create products that delight customers, and that give them a competitive advantage in the market.