Should Real Estate Developers and Operators Make Their Own Furniture?

Today’s Thesis Driven is a guest letter from Victor Cipolla, former Director of Procurement and Supply Chain at Common. He now runs Bond Street Procurement, an FF&E procurement firm.

For real estate developers and operators, offshore furniture manufacturing promises substantial cost savings and access to bespoke pieces that can elevate any design vision. However, this opportunity comes with its own set of challenges. Navigating these waters requires a nuanced understanding of the benefits and the pitfalls.

In this letter, we'll explore whether offshore furniture manufacturing deserves a place in real estate operators' strategic plans. We'll delve into the critical considerations, share real-world success stories and cautionary tales, and provide practical insights on effectively managing the complexities involved. By the end, you'll understand why and how to incorporate offshore manufacturing into your next project, including:

• When does it make sense to start thinking about offshoring? 
• What are the risks, and how do you manage them? 
• How do you find a reliable overseas partner when it's time?