Introduction:
Companies need a step change in efficiency

Under the pressure from fierce competition and hyper-volatile markets, engineering companies – from aerospace, to telecom, energy, automotive and beyond – are being pulled in two directions.

On one hand, they must innovate faster without compromising safety. On the other, they must dramatically cut costs. In many cases, remaining competitive can mean doing things 30% faster, at 30% of the cost.

New challengers are rewriting the rules. Established carmakers struggle to compete with Chinese EV manufacturers, who produce quality vehicles 20% cheaper and twice as fast. This is not just due to lower labor costs, but better

mastery of supply chains, smart manufacturing technologies, and agile, collaborative cultures.

Even in America and Europe, new entrants – unburdened by legacy systems – are creating better products for less by embracing automation and digital manufacturing technologies.

Some estimates suggest SpaceX has reduced the per kg cost of putting payloads into space by 40-90%, demonstrating how engineering breakthroughs can redefine entire industries.

This pace of transformation raises a critical question: How can leaders of long-standing engineering companies dramatically reduce

the cost of their core engineering (in which we include production, operations, upgrades, supply chain management) and their product design – while continuing to innovate and deliver on safety and compliance?

The solution – we believe – is Engineering Factories: a next-generation approach to outsourcing that integrates world-class engineering talent, digital technologies, optimized factory setups, and cross-industry collaboration. These engineering factories deliver cost savings and continuous innovation at scale, in a way that traditional outsourcing never could.

In this paper, we will explore the existential challenge facing established engineering intensive companies, and how Engineering Factories provide a new path forward.