From Asia to Europe: A Shift in Manufacturing Strategy
For a long time, the answer to cheaper manufacturing seemed obvious: go to Asia.
In traditional manufacturing outsourcing models, long-distance offshore production was seen as the default solution for cost reduction. But as global markets evolve, so do the realities behind these decisions.
Today, hardware startups face a very different environment — one defined by rapid iteration, fluctuating demand, and increasing supply chain risk.
We are now witnessing nearshoring emerge as the new norm, particularly for hardware startups looking for cost-effective and dependable contract manufacturing solutions.
Nearshoring-based manufacturing outsourcing offers a balance that offshore models often struggle to provide:
Competitive production costs
Shorter lead times
Lower logistical and operational risk
Greater transparency and control
For startups, these factors are often more critical than achieving the absolute lowest unit cost.
At Synermont, we experience this shift firsthand.
Many of the hardware startups we work with have consciously moved their contract manufacturing activities closer to their core teams and end markets. This proximity enables:
Faster communication
Easier factory visits
Quicker response to market changes
Stronger alignment between product development and production
Manufacturing outsourcing becomes far more effective when collaboration is direct and personal.
Nearshoring is not just about lowering transportation costs or reducing supply chain risks.
For many startups, the real value of nearshoring contract manufacturing lies in building genuine partnerships. When founders and engineers can visit the production site, discuss challenges face to face, and adapt quickly, the entire manufacturing process becomes more resilient and scalable.
This relationship-driven approach to manufacturing outsourcing is increasingly replacing transactional offshore models.
What was once considered a contingency option is now, for many hardware startups, the preferred manufacturing strategy.
Nearshoring-based contract manufacturing offers the flexibility, speed, and reliability that young companies need to scale — without losing control over quality or timelines.
Being part of this shift is both a responsibility and an opportunity.
Supporting hardware startups as they expand and mature — while keeping manufacturing outsourcing close to their customers and development teams — is at the core of our approach to contract manufacturing.
If you are a hardware startup exploring contract manufacturing or manufacturing outsourcing options, nearshoring within Europe can provide the balance of cost efficiency, control, and reliability needed for sustainable growth.
In the wake of the pandemic, Western European companies have begun moving production from the Far East back to Europe. The impact of nearshoring can already be felt in Hungary, Synermont CEO Krisztián Kavas told us. The contract manufacturing company has seen quick success, with orders flooding in from around the continent, from Austria to Sweden.
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