Why Tech Needs European Manufacturing
By Petter Neby, Founder & CEO of Punkt.
From pandemics to trade disputes, recent global events have exposed significant vulnerabilities in our manufacturing networks. As a European tech founder, I’ve seen first-hand how relying solely on distant factories can backfire. When a single clogged port or new tariff can stall production, it’s clear this model is fragile at best.
The Case for Reshoring to Europe
European tech firms should start to consider bringing their manufacturing closer to home. What was once dismissed as uncompetitive and financially unviable has now become both viable and increasingly necessary. Advances in areas such as automation and robotics have played a significant role in levelling the playing field for European manufacturing. As already mentioned, beyond cost, there is a strong strategic case. Take the COVID-19 crisis, for instance, which at the time exposed the underlying fragility of global supply lines; or geopolitical tensions and the threat of sanctions or export controls; all of which make long overseas routes a growing gamble. By manufacturing in Europe, companies are able to gain more control and therefore stability. Reshoring to Europe can enable businesses to avoid being caught in trade wars or sudden policy shifts and ensure a steadier supply for customers.
Europe’s Manufacturing Renaissance
Just as importantly, Europe can build at the highest quality. The notion that high-tech devices must be made in Asia is simply outdated. Our region has a skilled workforce, world-class engineers, and now a new generation of highly automated factories. We’re witnessing a manufacturing renaissance, with companies blending Europe’s famed precision and quality standards with advanced automation. The result means that “Made in Europe”, in itself a brand of quality and sustainability, is now more feasible than it has been in decades. Governments are backing this trend too, with EU initiatives like the European Chips Act, signaling strong support for home-grown high-tech production.
Reshoring manufacturing closer to customers also serves to shrink carbon footprint by cutting long-distance shipping. European factories can tap into cleaner energy as well. Our German partner, for instance, runs on 100% renewable electricity.
Control and Trust
Perhaps the strongest reasons to reshore are gaining control and building trust. When production is an ocean away, even a well-managed supply chain has blind spots. Problems are harder to catch, and protecting intellectual property is tougher from afar. By bringing manufacturing back, we regain direct oversight. Now, my team and I are able to walk the factory floor, see processes first-hand, and resolve any potential issues in real time.
Security is tighter too. With devices assembled under the nose of tech companies, the risk of IP theft or tampering drops. A device labeled “Made in Europe” carries the assurance of strict EU oversight, giving reassurance in an age of cybersecurity concerns. In fact, the Made in Europe label itself has become a strong selling point, synonymous with quality and reliability.
Proof of Concept
Recently, Punkt. partnered with Gigaset in Germany to produce our next mobile device. Gigaset’s Bocholt facility is state-of-the-art, highly automated, rigorously tested, and powered entirely by green energy. Working with a local manufacturer enables our engineers to collaborate directly with the factory team, something very difficult when production is an ocean away. We can iterate quickly and solve any potential issues on the spot.
This approach creates a native trust chain. From Swiss-made software to final assembly in Germany, every link is under our control. We know exactly what goes into the product and can assure customers it was built with integrity and security.
A Call to Action
Reshoring is now part of a broader shift in tech, and Europe is uniquely positioned to lead with high quality, ethical and sustainable manufacturing. By investing in local production, we can boost our resilience and contribute to Europe’s technological autonomy.
Sure, bringing manufacturing back isn’t easy. It takes investment and a mindset shift; but momentum is building. Companies that seize this opportunity will no doubt gain a competitive edge while earning deeper customer trust. Now is the time to explore local partnerships. The conventional logic that we must offshore everything is now fading.
A renaissance of “Made in Europe” will not only reduce dependency on constant geopolitical shifts, it will ensure our fragile but fundamental value system thrives for generations to come. The journey towards a sustainable and prospering Made in Europe, supported by a flourishing long tail of services and suppliers, starts with all business owners (and consumers), making conscious decisions when buying their next product or service. The future of tech can be Made in Europe, and it’s ours to shape.
The post Why Tech Needs European Manufacturing appeared first on European Business & Finance Magazine.
