1.3 Global Logistics – Speed vs. Stability

Geography is a risk management tool. A distributed manufacturing footprint allows for the strategic hedging of geopolitical tariffs, shipping latencies, and regulatory compliance. The decision of where to build is as critical as what to build, governed by the "Iron Triangle" of Speed, Cost, and Stability.

The Shenzhen Engine (China)

Shenzhen is the global epicenter of hardware speed.

• Strategic Value: Unrivaled supply chain density. If a production line halts due to a missing resistor, a replacement can be sourced within an hour from local markets.
• Use Case: High-volume mass production where unit cost sensitivity is paramount. It is the ideal launchpad for consumer electronics requiring rapid scaling.

The European Fortress (Lithuania & Turkey)

These facilities offer stability and regulatory safety.

• Strategic Value: Manufacturing within the EU (Lithuania) or its customs union (Turkey) eliminates complex import tariffs and VAT hurdles for Western clients. It creates a "Safe Harbor" for intellectual property, governed by European legal frameworks.
• Logistics: Overland trucking to major European hubs (Berlin, Paris) replaces unpredictable ocean freight, reducing inventory holding costs and "cash-to-delivery" cycles.
• Use Case: High-mix, high-complexity industrial, medical, or automotive products where IP protection and supply continuity outweigh raw unit cost.

Final Checklist