Insight · Global expansion
Local Production Is No Longer a Bonus. It Is a Requirement
In recent years I have seen a clear shift in large deals across defense, aerospace and infrastructure: customers no longer ask only whether the product is good. They ask where it will be made, who the suppliers are, and what happens if the supply chain breaks.
For Israeli technology companies, this changes the order of priorities. You can develop the best technology in the world and still lose a deal, because a competitor offered local production in the customer’s market.
In practice, decisions on production, local partners and technology transfer need to be made much earlier, while the product and the business strategy are still being planned. A company that waits for the big order to think about it usually finds itself a year late.
Three questions every leadership team should ask now: which markets require local production or industrial participation? Which parts of the product can be transferred without putting intellectual property at risk? And who are the local partners you can start building trust with today?
Setting up production and operations abroad is part of our work with companies expanding globally.
This article reflects the author’s personal opinion only. It is general information, not professional advice or a recommendation to take any action, and any use of it is the reader’s sole responsibility.