Sourcing Trends 2025: Why OEMs Are Moving Toward Multi-Country Manufacturing

How global manufacturers are de-risking, decentralizing, and redefining supply chains with India, the US, and hybrid models at the core

The Manufacturing Reset of 2025

As global supply chains enter a new era, Original Equipment Manufacturers (OEMs) in the US and Europe are rapidly rethinking their sourcing models. Geopolitical volatility, pandemic aftershocks, and tightening ESG requirements have revealed the fragility of single-source manufacturing strategies.

Enter multi-country manufacturing — a rising global trend in which OEMs diversify their supply chain footprint across regions to build resilience, optimize costs, and remain competitive.

In this blog, we explore:

• The key OEM sourcing trends shaping 2025
• The risks of overreliance on a single manufacturing base
• Why India — and Indian manufacturers like Duroshox — are emerging as pivotal global partners
• How hybrid models blending Indian manufacturing with US-based assembly and warehousing deliver next-level flexibility

The Evolving OEM Sourcing Landscape

From trade wars and semiconductor shortages to port congestions and labor constraints, supply chain disruptions between 2020 and 2023 exposed the vulnerabilities of traditional, single-country sourcing strategies.

In 2025, sourcing priorities have shifted dramatically. Today’s OEMs are optimizing for:

• Risk mitigation over cost alone
• Supply chain agility over static, offshore contracts
• ESG compliance as a core sourcing criterion
• Regional diversification to navigate trade policies and market demands

Global leaders are moving toward AI-enabled, digitally integrated, and multi-country supply networks that provide real-time visibility and regional flexibility.

Single-Country Sourcing Is Outdated — OEMs Shift to Multi-Country Models

The Risk of Overreliance

China has long dominated global manufacturing due to cost advantages and scale. But recent years have revealed the strategic risks of depending on one country:

• Factory shutdowns and lockdowns
• Export restrictions and changing policies
• Container shortages and freight price volatility
• Increasing tariffs and sanctions

OEMs that were overly reliant on a single nation faced cascading operational delays, lost revenue, and unmet customer demand.

What Multi-Country Manufacturing Looks Like in 2025

Modern OEM sourcing leaders are embracing:

• Primary and backup suppliers across multiple countries to hedge geographic risk
• Component-level segmentation, sourcing complex parts in India and doing final assembly locally
• Hybrid sourcing strategies, where manufacturing is done offshore but warehousing or last-mile customization happens closer to end markets

The result? Faster delivery, reduced operational risk, and better compliance with local regulations.

India’s Growing Role in Global OEM Supply Chains

India is emerging as a strategic sourcing hub — not just for cost savings, but for innovation, engineering excellence, and export readiness.

Here’s why global OEMs are betting big on India:

• Skilled engineering talent for custom manufacturing and prototyping
• Competitive pricing with flexible MOQs
• Certifications like ISO/TS16949, ISO 9001, and others
• Government support via PLI schemes and export incentives
• Strong track record of supplying to US and EU markets

One standout player is Duroshox, a Pune-based manufacturer with over 35 years of experience in custom shock absorbers, motion control products, and precision components for OEMs worldwide.

Hybrid Manufacturing Models: The Best of Both Worlds

In 2025, the most forward-looking OEMs are not choosing between India or the US — they are combining global engineering with local execution.

Duroshox offers a hybrid manufacturing model that combines:

• Indian-based production of high-quality components
• US-based warehousing to meet just-in-time (JIT) needs
• Final assembly or kitting in the US, reducing lead times and import complexity
• Integration with your local supply chain systems for real-time visibility

Benefits of Hybrid Manufacturing:

This hybrid approach enables OEMs to move faster, reduce shipping costs, and enhance resilience, while still benefiting from India’s manufacturing excellence.

What to Look for in a Multi-Country Manufacturing Partner

When sourcing beyond borders, strategic alignment is everything. Look for partners who offer:

1. Engineering collaboration – from design to prototyping
2. Certified quality standards, such as ISO/TS 16949 and ISO 14001, etc.
3. Export experience – especially to the US and European markets
4. Transparent communication – with regular updates and live tracking
5. Integrated logistics – including local warehousing and delivery management

Why OEMs Choose Duroshox

Duroshox is more than a manufacturer — it’s a strategic sourcing partner for global OEMs building the future of decentralized manufacturing.

What Sets Us Apart:

• 40+ years of engineering-led manufacturing in India
• Full-stack services: design, prototyping, production, and global shipping
• Hybrid solutions with local US warehousing & assembly
• Flexible order volumes — from prototyping to mass production
• Trusted by leading OEMs across automotive, industrial, and specialty sectors

Partnering with Duroshox means unlocking the India advantage while maintaining local speed and compliance.

Final Thoughts: Sourcing in 2025 Is Decentralized, Digitally Integrated, and Dynamic

The sourcing playbook is being rewritten.

Tomorrow’s supply chains won’t rely on a single country or a single strategy. OEMs must build multi-country, hybrid, and AI-enabled sourcing models that deliver cost efficiency, compliance, and agility simultaneously..

Duroshox is at the forefront of this transformation, enabling OEMs to:

• Expand sourcing capacity
• Diversify manufacturing risk
• Shorten lead times with hybrid India-US integration
• Co-create solutions built for today’s complexity

Future-Proof Your OEM Sourcing Strategy

Ready to decentralize your supply chain without losing control?

📩 Contact Duroshox today to explore a customized multi-country manufacturing and warehousing strategy built around your unique goals.