Strategic Integration of PLM Systems for Manufacturing Location Optimization Under Regulatory and Environmental Constraints

Abstract

Modern manufacturing organizations face unparalleled intricacy in the identification of optimal locations of production in light of converging pressures from protective tariffs, sustainability regulations, and geopolitical sourcing constraints that fundamentally reshape strategic decision frameworks. Traditional cost-optimization models fall short in their multidimensional nature of location choices, creating analytical gaps that expose organizations to regulatory vulnerabilities and competitive disadvantages. Product Lifecycle Management systems have evolved beyond engineering documentation platforms to function as comprehensive strategic intelligence frameworks, capable of integrating material specifications, supplier characteristics, environmental attributes, and regulatory requirements within unified data architectures. It is by synthesizing heterogeneous variables across financial, operational, and sustainability domains that PLM enables sophisticated scenario modeling, quantifying trade-offs between domestic and international manufacturing alternatives under dynamic market conditions. The article looks at how PLM's relational data structures facilitate the simultaneous consideration of tariff exposure, carbon intensity, supply chain resilience, and regulatory compliance requirements. Through integrating with enterprise resource planning and supply chain management platforms, PLM transforms fragmented information into actionable intelligence that supports strategic decisions about manufacturing location. Advanced implementations incorporating predictive analytics and machine learning capabilities enable organizations to forecast the impact of regulatory changes, sustainability mandates, and market volatility on long-term manufacturing economics, thereby elevating location decisions from tactical procurement choices to strategic imperatives aligned with corporate goals across financial performance, environmental stewardship, and operational resilience dimensions.