BATCH FOAMING INSTALLATION. OPORTUNITY STUDY. FRANCE 2024
For small and medium companies that manufacture mattresses, upholstery furniture, or other products using foam, we see that the large majority of them buy the foam already cut in pieces. Now, the question is why these companies choose to buy foam instead of producing it, or why they choose to have it cut by others, instead of cutting it by their own?
In both cases, whether foaming or foam processing, the real calculation starts with raw materials, space, machines, people. All these elements of calculation exist for your supplier also, and on top of them there is a margin of the supplier, so, according to a simple calculation, buying from others should be more expensive than producing it by your own.
So, why to chose others for producing or cutting foam for you and when this becomes more economical to be done in house? Are the figures the only decision factor in this equation? Let’s look at another what to choose situation, when buying or renting something, and it becomes obvious that not always the figures decide whether to buy or rent. We all know that renting is more expensive than buying, but people and companies are still renting.
Similarly, when deciding to produce or process something in house, there is always an economical calculation, but also a whole complex context associated with it, starting with certifications and authorizations, finding the right people, suppliers for raw materials, and others. Even though, the evidence tells us that buying is cheaper than renting, and producing in house is cheaper than purchasing from others, the next level of development is decided by a multitude of factors.
A next level of development requires a complex analyses of the opportunity of the new investment and we have all experience and knowledge to guide you through this process.