What’s better than having a high-tech manufacturing facility with well-trained workers and engineers designing new approaches to your product? It seems like a pretty ideal situation for any manufacturer.

Welcome to the world of Dutch Manufacturing, a re-emerging industrial economy. It may sound strange to consider the Netherlands as a manufacturing hub but ever since 2008, both the private and public sectors have taken an initiative to help the industrial economy of The Netherlands grow. Reshoring and government investment played a huge role. 2014 demonstrated great promise, for instance, when the Ministry of Social Affairs and Employment invested 600M euro in only manufacturing.

With many manufacturing companies recently making Capialmind’s Fabulous Forty Industrial Markets, we can no longer ignore the impact that the Dutch have as a manufacturing hub. Their bounce back from the international economic crisis seven years ago is an example to follow. With mid-sized manufacturers doing better than huge legacy companies and specialized industry growing, the Netherlands has shined through in European manufacturing over the past few years. This is due to multiple reasons.

New Companies Move to the Netherlands

Companies from around the world, including the U.S., are starting to make their way to the Netherlands. These companies sell their products to the local European market. In March of this year, the Paul Mueller company decided to invest 21M euro in creating a new plant in Groenlo. Paul Mueller is a Missouri-based company that produces steel for dairy farms. The Dairy industry booms in the Netherlands and surrounding countries, so the location makes sense. Their goal is to join already existing plants so that their workers can have a more collaborative approach in the manufacturing process.

Established Companies Come Home

The Dutch industrial market has a considerable amount of companies that have dedicated themselves to reshoring or bringing their production back to the Netherlands. This, as in the United States, is happening with more frequency and for several reasons. One of the most important is that supervision of the production processes as well as the production costs themselves are cheaper when they are local. Another is that outsourcing tends to lead to cheap imitations. While China for example, may have a convincing price tag, they don’t have a strong enforcement of patents and copyrights. Just like in the U.S., more and more Dutch companies are starting to realize there are huge benefits in reshoring.

An Economy & Labor Market Structured for Growth

They have an incredible tax structure that motivates growth in the manufacturing industry. In addition, the Dutch workforce is highly skilled with engineers and designers ready to innovate and continue adapting manufacturing process. The market adjusts quickly and connects to their consumer in a way that not many current manufacturing markets do. Therefore, the Netherlands should garner our attention as an emerging manufacturing market in the global community.

This article brought to you by the edge prep experts at Mutschler Edge Tech/MET. To learn more about our custom edge prep work, contact MET today and speak with our experts about creating an edge-prep solution for you.