Vibrotech from New Delhi is a small manufacturer of laser pointer equipment for air handling. The company’s 1-2mm sheet metal and manufacturing requirements are cutting and bending. Most of the cutting work is outsourced to the workshop near his factory, and the bending and finishing work is completed in his own factory.
When the shop owner decided to move the factory to a new location a few miles away, Vibrotech owner Girdhar Sharma began to face a nightmare because the nearest workshop was at least 4.5 miles away. However, he decided to buy his own laser cutting machine instead of looking for an alternative work shop.
Over the past few years, the company’s sales and service engineers have begun to experience more similar situations. In the typical manufacturing-buying dilemma, “manufacturing” clearly wins. So why is this reverse integration more meaningful than ever? The answer is: demand has increased significantly, and machines have become more affordable.
Despite being a typical representative of a service-based growth model, India ’s trade deficit of imported goods is four times that of its export service trade surplus. This has led to a shift in the pattern. The growth of the manufacturing red laser pointer has become the top priority of the Indian government. Attractive plans, such as the launch of the “Made in India” after a lot of publicity, are used to stimulate the industry, so the Indian manufacturing industry increased by 9.3% last year.