The world is evolving, and despite various periodic disruptions and economic slowdowns, the dynamics of this development are undoubtedly increasing. This does not necessarily mean that we will do everything faster and faster because such a pace of development would have its inevitable end – it is also difficult to find any valuable satisfaction in such a solution. The dynamics of development, in this sense, mean a certain kind of automatism and our adaptation to favorable changes and convenient solutions. Notice how quickly we have adapted to having mobile phones, mobile Internet, or satellite navigation. Electronic banking, cashless payments, and low-cost airlines have become permanent features of today’s reality. Most of us can hardly imagine functioning normally without these tools. A similar process is taking place in the industry. Dozens of thousands of new optimization solutions are implemented annually, many of which become indispensable elements of further functioning.
It is also worth noting the alignment of modern transfers with the principles of the “Industry 4.0” concept – the integration of intelligent machines, systems, and the introduction of changes in production processes aimed at increasing manufacturing efficiency and introducing the possibility of flexible assortment changes. Currently, increasingly, during the implementation of complex processes of plant or production line relocations, in addition to the physical transfer of technology, machinery, and equipment to a new location, work is also carried out on changes in the production process itself (technology). Modernization, automation, and robotization of processes, as well as the integration of machines into a single “organism,” are implemented as part of the transfer process and are possible thanks to the “decommissioning” of the line associated with the transfer. This approach allows companies to minimize both investment outlays (one process, one team, economy of scale) and production downtime losses (planning all stages of the above activities in advance allows for modernization and integration work to be carried out during the installation of the line in the new location without additional technological downtimes). Such a modern approach to plant relocation projects allows achieving even better results due to the comprehensive approach to process transfers. Modern dynamic transfers of production processes and comprehensive relocations of entire factories from anywhere in the world are also becoming a “first-need” product. The transfer of an entire plant or a large part of it is no longer surprising and frightening with various types of risks – it has become an available market tool. At this point, we can ask ourselves – for whom is this solution intended? Such solutions are most often directly related to the developmental intentions of the owners or investors. Many of them, having already built production potential and valuable know-how, seeking further development prospects, decide to change location. There may be several reasons for such a decision – searching for cheaper labor markets, savings on logistics and supply chain (proximity to raw material suppliers or product recipients). Currently, we can also observe that economic, political, and geopolitical changes are increasingly becoming reasons for such decisions. Why has this become possible? Thanks to the globalization of production systems and the specialization of suppliers, process transfers that seemed impossible a few years ago can now be realized quickly, enabling the comprehensive launch of production in a completely new location. This approach shows that necessity creates the product, not the other way around. Several years ago, leading relocation service providers were tested by transferring a plant. Many of them passed this test positively, and some excelled, finding a new path for further development. This development generally involves mastering the strategic process of transfer planning. As part of the relocation, we decommission a functioning process (production plant), and our primary goal is to restart it within a specified timeframe. Such a plan should include all elements necessary for the entire process (equipment, personnel, materials, etc.) and anticipate all risks that may arise and affect the project’s success (damaged equipment, additional spare parts). The key processes to focus on are: proper analysis, accurate project estimation, transfer plan development, project management according to the plan, implementation audit, and comprehensive risk analysis. The selection and consolidation of professions are closely linked to the scope of the transfer and the industry in which the client operates. Professional relocation service providers can foresee all needs at the design stage, including the most non-standard ones, such as:
- dedicated procedures and safety rules for a specific project (e.g., relocating equipment in a nuclear power plant)
- specialization in the type of equipment being relocated (e.g., relocating specialized technological lines in the chemical industry)
- industry specialization in terms of utility supplies (e.g., relocating an existing automotive plant in a “greenfield” project)
- the need for specialists in service and maintenance (e.g., relocation combined with comprehensive adaptation and modernization of equipment)
In summary, an efficient transfer plan is the consolidation of many processes and professions combined with the experience gained, which brings predictability of possible risks. An additional incentive for investors to transfer processes is the growing availability of industrial spaces. The dynamic increase in production and warehouse spaces in “multi-user” investments and industrial spaces in “built-to-suit” investments allows further optimization of transfer costs thanks to the service offered by the largest companies (e.g., Panattoni, Prologis) involving long-term rental/leasing of built spaces (so-called relocation without building investments). As seen in the above examples, modern transfer should now be treated as a “tool” for achieving business goals. Such an approach should be especially significant during periods of economic slowdown because it offers real chances to build a new operational model and gain a competitive advantage in a new, changed economic reality.
Sebastian M. Gawron CEO / SURET
