Factorycentered

Factorycentered is a term used in economic geography and planning to describe a production system in which a small number of large manufacturing facilities act as central hubs around which suppliers, logistics, and labor are organized. In a factory-centered configuration, proximity between the core plant and its feedstock and component suppliers is reinforced by structured networks of transit routes, shared infrastructure, and coordination platforms, producing higher levels of vertical and horizontal integration than in dispersed systems. The model contrasts with diversified regional development or purely market-driven manufacturing, where production wells are widely scattered.

Characteristics include central plant dominance; strong supplier clustering nearby; emphasis on just-in-time delivery and complex logistics; heavy capital intensity; reliance on skilled labor and automation; and governance arrangements that protect the core plant's operations. Digital connectivity and Industry 4.0 practices often accompany factory-centered systems, enabling real-time coordination across tiers.

Origins and usage: The phrase is used in scholarly and policy discussions to analyze historical and contemporary manufacturing patterns, particularly in regions where a flagship factory anchors regional economies. It is not a formal standard, and definitions vary by author.

Implications: Benefits can include efficiency gains, knowledge spillovers, and stable employment near the hub. Drawbacks include risk concentration, reduced diversification, and vulnerability to disruptions or price shocks affecting the core plant.

See also: industrial cluster, hub-and-spoke model, factory town, supply chain resilience, agglomeration.