My colleague Paul Miller pointed out that the Financial Times recently published a compelling piece titled “Honey, I shrunk the factory“, spotlighting the rise of microfactories—compact, flexible, and often automated production units that challenge traditional manufacturing paradigms. While the article paints a vivid picture of the trend’s momentum, it also raises critical questions: Are microfactories just a novelty, or do they represent a viable strategy for customer-centric manufacturing?

From Cost to Customer: Why Microfactories Are Reshaping Manufacturing Strategy

At Forrester, we’ve been tracking this shift closely. Our report, “Use Microfactories To Underpin A Customer-Centric Manufacturing Strategy”, explores how microfactories can enable manufacturers to respond faster to local demand, reduce logistics costs, and support sustainability goals. These agile facilities are ideal for industries where customization, speed, and proximity to the customer are competitive differentiators.

 

Gauge Your Microfactory Fit

But the microfactory model doesn’t suit all manufacturers. That’s why we developed the Microfactory Suitability Assessment, a tool designed to help manufacturers evaluate whether their operations, products, and strategic goals align with the microfactory approach.

The FT article’s microbrewery example may have drawn some skepticism, but it underscores a broader truth: small-scale, localized production is no longer fringe. It’s a strategic lever for differentiation in a world where customer expectations are evolving faster than supply chains. Microfactories leverage speed and sustainability advantages in local markets and matter more now than ever as manufacturing pivots from an exclusive focus on cost to a focus on customer centric blending of cost, choice, availability and sustainability.

If you’re wondering whether your organization should shrink the factory—or rethink it entirely—our research and tools are here to guide you. Please book an inquiry or guidance session with Paul Miller or with me.