Makita Expands Production in Thailand and Romania to Supply U.S. Market Amid Shift from China
Japanese power tool manufacturer Makita Corporation has announced plans to expand production in Thailand and Romania, aiming to supply more tools to the United States as it diversifies manufacturing away from China. The strategic shift highlights a growing regional realignment in global manufacturing, as companies respond to rising labor costs, trade tensions, and new digital economy policies shaping supply chains.
According to a company statement, the new production capacity in Thailand and Romania will focus on high-demand cordless power tools and electric equipment, supported by upgraded automation systems and AI-based quality monitoring. The move is part of Makita’s long-term effort to reduce overreliance on Chinese manufacturing hubs while maintaining competitive costs and operational flexibility.
Industry analysts say the decision reflects both economic and policy-driven factors. The U.S.–China trade environment has become increasingly uncertain, with tariffs, regulatory restrictions, and compliance risks prompting multinational manufacturers to seek alternative locations in Southeast Asia and Eastern Europe. Thailand offers proximity to raw materials, a skilled industrial base, and access to regional trade frameworks like the Regional Comprehensive Economic Partnership (RCEP), while Romania provides a gateway to the European Union and logistics access to Western markets.
Makita’s transition also mirrors a broader industrial trend toward AI-powered and digitally managed production ecosystems. Both new facilities will integrate data analytics for predictive maintenance, automated material handling, and real-time coordination with suppliers. These tools are part of a wider global movement toward smart manufacturing, which helps reduce downtime and improve energy efficiency.
The company’s decision comes at a time when global manufacturers are re-evaluating supply chain resilience after years of pandemic disruption and policy uncertainty. By distributing production across multiple countries, Makita aims to hedge against future risks while aligning with the U.S. and Japan’s shared push for “friend-shoring,” building supply networks among trusted trade partners.
China remains a significant manufacturing hub for Makita. The slowdown in China’s construction sector and tighter digital compliance regulations have increased operational costs for foreign manufacturers. At the same time, emerging economies in Southeast Asia have improved their technological capabilities, offering more favorable environments for advanced manufacturing setups.
Romania, in particular, is becoming a rising center for industrial automation and electric equipment production within the European Union. Its alignment with EU digital economy policies allows companies like Makita to benefit from subsidies tied to smart manufacturing and green energy adoption.
By leveraging AI-driven efficiency and digital monitoring, Makita expects to enhance both sustainability and speed of delivery to the U.S. and European markets. The expansion underscores the growing importance of policy adaptation and digital transformation in global manufacturing decisions.
As trade dynamics evolve, Makita’s pivot serves as a case study in how global companies balance geopolitical pressures with the need for technological innovation and market access. The shift from China toward Thailand and Romania signals a new phase in supply chain diversification, one defined by digital readiness, regional cooperation, and the pursuit of greater stability in a complex global economy.
