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Is production returning?

A lot of industrial production has been offshored from Finland, but there is also production being reshored back home. How much production is moved abroad and how much is returning? And on what grounds is production returning? A seminar at TUT on 15 Feb will present a future outlook on production.

The significance of the manufacturing industry has traditionally been great for the open and relatively small Finnish national economy.

“The competitive edge of the Finnish industry has decreased significantly since the global economic crisis that began in 2008. The gravest challenges for the manufacturing industry include offshoring of production and the decreasing added value generated by industry,” Professor Jussi Heikkilä from the Department of Industrial Management states.

In a study completed at the end of last year, manufacturing companies from Finland, Sweden and Denmark were compared to find out the extent of production transfers across the borders from and to these three countries. According to the study, production is both offshored and reshored. Most of the flow is outbound, however.

Out of the Finnish manufacturing companies that participated in the study, 30 per cent have permanently offshored their production in the past five years and 13 per cent have reshored their production to Finland.

"Key reasons for offshoring production are labour and other costs, while reshoring in Finland is especially affected by flexibility, quality, delivery times and access to technology, skills and knowledge, and proximity to R&D and product development,” Heikkilä lists.

The same study was also carried out in Sweden and Denmark. At the research seminar on 15 February, the research results will be presented, comparing the three countries in terms of production transfers and their drivers.

In Finland, the study was carried out by the CROPS research group from TUT's Department of Industrial Management, led by Professor Miia Martinsuo. The Finnish study was funded by the Finnish Funding Agency for Innovation (Tekes), and by VINNOVA in Sweden.

Welcome to the seminar!

At the 'Is production returning?' seminar at Tampere University of Technology on 15 February 2016, Professors Jussi Heikkilä, Miia Martinsuo and Petri Suomala from TUT, Professor Jan Olhager from Lund University in Sweden and Professor Jan Stentoft from University of Southern Denmark discuss the challenges and consequences of production transfers in light of the recent research.

The 'Is production returning?' seminar is open and free for all. Enrolment is open for everyone interested – welcome! The event is held in English.

Date and time: 15 February 2016 at 2–5 pm 

Location: Festia, Korkeakoulunkatu 8

Enrol on 10 February at the latest >> 

For more detailed programme, see the event calendar >>

News submitted by: Tiina Leivo
Keywords: science and research