Should You Shift to Local Production in EMEA?

Over the past several years, pressure has been increasing on multinational corporations (MNCs) to manufacture locally in a diverse range of emerging markets in Europe, the Middle East, and Africa (EMEA). From increasing protectionist measures to growing customer price sensitivity, these pressures raise a serious challenge for executives:  which markets should you prioritize in the face of conflicting organizational demands and resource constraints?  To support their decision making, senior leadership teams need to know what to expect in terms of localization conditions as well as follow a structured framework for evaluating and comparing candidates for localization.

Frontier Strategy Group’s flagship Management Excellence report on Localization Pressures in EMEA offers extensive data, analysis, and diagnostic tools concerning the various growing localization pressures for MNCs across the region. This information is all presented within FSG’s three-step process for market prioritization:

  1. Understand the drivers of localization pressures and their future trajectory
  2. Assess fundamental market attractiveness for localization
  3. Analyze the gap and compare markets for investment

“When deciding how to respond to localization pressures, multinationals need to understand the gap between each individual market’s fundamental attractiveness for their business more generally and the expected intensity of localization pressures on their business over the medium term,” said Martina Bozadzhieva, head of research for Europe, the Middle East, and Africa, and author of this report.  “Our goal is to help executives narrow down the number of dilemmas and focus on the potential actions companies can take.”

This report, and many other like it, is available in the Frontier Strategy Group online store.  Click here for sample pages to help you evaluate whether the report is right for you.

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