The Manufacturing Footprint Expansion Playbook

A Due Diligence Guide for North America

Manufacturers across North America are rethinking where and how they produce. Nearshoring momentum, customer proximity, risk diversification, and cost pressures are pushing companies to reconfigure their manufacturing footprint, whether through expansion, consolidation, or relocation.

But a footprint expansion cannot be planned on cost alone. It requires a structured, multi-disciplinary due-diligence process that evaluates commercial constraints, operational readiness, supply chain continuity, labor availability, compliance, and long-term strategy. A misstep can result in delays, unplanned investments, or customer disruption.

This playbook outlines the critical areas of due diligence that manufacturers must evaluate before expanding a manufacturing footprint in North America—using real-world transition planning methodologies supported by Prodensa’s advisory experience and client processes.

1. Commercial and Customer Requirements

Before selecting a location of modeling costs, manufacturers must validate all commercial constraints tied to product movement, customer expectations, and contractual requirements.

Key Due Diligence Questions:

• Are any products controlled (ITAR/DFARS, COO-sensitive, export-restricted)?
• What customer qualification or revalidation steps are required before moving production?
• Will a move impact lead time, service levels, or OEM cost-sharing agreements?
• Does the future manufacturing footprint align with growth, profitability, and SKU strategy?

Why it Matters:

Commercial constraints often define what can move, when it can move, and how quickly a new site can reach customer approval. This may extend timelines by 12-18 months in some industries.

2. Current-State Operation Assessment

Every footprint project must align with a clear, honest evaluation of the existing facility.

Focus Areas:

• Facility - lease terms, capital needs, decommissioning costs
• Equipment - age, maintenance, EH&S risks, ability to relocate or refurbish
• Technology - SAP readiness, documentation quality, tribal knowledge
• Trade - tariff impact, trade agreement compliance
• Performance baseline - quality, delivery, operational stability

Why it Matters:

Understanding what is transferable (and what requires investment) helps define the future-state cost model and reduces surprises during ramp-up.

3. Supply Chain & Delivery Model

A manufacturing footprint change is also a logistics and sourcing transformation.

Evaluate:

• Material flow and replenishment models
• Existing long-term supplier agreements
• Make/buy strategy for core vs non-core components
• Transportation models, warehouse constraints, inventory build requirements

Why it Matters:

Even small sourcing decisions can shift a footprint model by millions of dollars. Lead times, transportation cost, and supplier capability often determine whether a region is viable.

4. Receiving Site Readiness (North America)

When expanding into North America (especially Mexico) manufacturers must assess whether the receiving site can support expected volumes, processes, and technologies.

Assess:

• Availability of leadership/technical skills

• Required new technologies (welding, stamping, molding, automation)

• Workforce availability and labor market dynamics

• Floor space, construction needs, material handling integration

• Local compliance (permitting, EH&S, infrastructure utilities)

Why It Matters

A footprint expansion is only as strong as the receiving site’s capability, labor pipeline, and time-to-productivity.

5. Strategic & Financial Modeling

Finally, all scenario paths must be validated through strategic and financial lenses.

Validate:

• Multi-scenario future-state cost models
• Capital vs operating investment impacts
• Real estate strategy: build, lease, retrofit, phased growth
• Integration with M&A, product platform consolidation, or long-term commercial strategy
• "Go / No Go" decision criteria and payback certainty

Why it Matters:

A footprint expansion is not just an operations project. It is a business strategy decision with long-term implications for competitiveness and profitability.

A Structured Roadmap for Confidence

A disciplined, cross-functional due-diligence process allows companies to:

• Model future-state scenarios with confidence

• Anticipate risks and customer impacts

• Build realistic timelines aligned with qualification cycles

• Ensure the receiving site is ready (talent, equipment, processes, space)

• Optimize long-term competitiveness in North America

Prodensa supports manufacturers by applying a proven methodology for footprint feasibility, transition planning, risk modeling, and nearshoring strategy development—including scenario validation, real estate and labor market analysis, and operational startup support.

Download the free Manufacturing Footprint Expansion Playbook.

Get a Quote for Expansion Support

Our team of project and operational experts have supported a number of expansion business plans in North America:

• Evaluation and decision of the site for a new paper manufacturing plant (US/Mexico) with high water requirements.
• Operations launch in Mexico including complex transfer of multi-million dollar machinery, and the validation of business plan to reduce tax burden.
• Project management support to integrate 2 manufacturing facilities (production, workforce, suppliers) after a strategic acquisition. 
• Numerous operations expansions of foreign companies in Mexico, from relocation to growth-driven expansion initiatives.
• Current operations administration and compliance responsibility for 70+ manufacturing facilities in Mexico.
  
  

Manufacturing Footprint Expansion FAQs

What is a manufacturing footprint expansion?

A manufacturing footprint expansion is the strategic process of adding, relocating, consolidating, or restructuring production capacity across different regions to improve cost, proximity to customers, resilience, or long-term competitiveness.

Why is due diligence critical before expanding a manufacturing footprint?

Footprint decisions affect customers, supply chain continuity, capital investment, labor dynamics, and long-term profitability. Due diligence ensures companies validate risks, model scenarios properly, and avoid costly disruptions.

How long does a manufacturing footprint transition typically take?

Depending on customer qualification requirements, equipment relocation, and site-readiness, transitions may take 12–36 months. Highly regulated or OEM-controlled industries may require longer lead times.

What factors should companies prioritize first?

Start with commercial and customer constraints, then evaluate current-state operations, followed by supply chain impacts, receiving site readiness, and finally financial modeling.

How does nearshoring impact footprint expansion decisions?

Nearshoring can shorten lead times, reduce risk, and align operations with North American customers. However, it requires evaluating local talent markets, infrastructure, compliance, and long-term cost competitiveness.