plant visit report

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How to Write a Visit Report

Last Updated: March 30, 2024 References

This article was co-authored by Madison Boehm . Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. This article has been viewed 666,811 times.

Whether you’re a student or a professional, a visit report helps you document the procedures and processes at an industrial or corporate location. These reports are fairly straightforward. Describe the site first and explain what you did while you were there. If required, reflect on what you learned during your visit. No additional research or information is needed.

Writing a Visit Report

Explain the site's purpose, operations, and what happened during the visit. Identify the site's strengths and weaknesses, along with your recommendations for improvement. Include relevant photos or diagrams to supplement your report.

Describing the Site

• Reports are usually only 2-3 pages long, but in some cases, these reports may be much longer.
• In some cases, you may be asked to give recommendations or opinions about the site. In other cases, you will be asked only to describe the site.
• Ask your boss or instructor for models of other visit reports. If you can't get a model, look up samples online.

• If you visited a factory, explain what it is producing and what equipment it uses.
• If you visited a construction site, describe what is being constructed and how far along the construction is. You should also describe the terrain of the site and the layout.
• If you’re visiting a business, describe what the business does. State which department or part of the business you visited.
• If you’re visiting a school, identify which grades they teach. Note how many students attend the school. Name the teachers whose classes you observed.

• Who did you talk to? What did they tell you?
• What did you see at the site?
• What events took place? Did you attend a seminar, Q&A session, or interview?
• Did you see any demonstrations of equipment or techniques?

• For example, at a car factory, describe whether the cars are made by robots or humans. Describe each step of the assembly line.
• If you're visiting a business, talk about different departments within the business. Describe their corporate structure and identify what programs they use to conduct their business.

Reflecting on Your Visit

• Is there something you didn’t realize before that you learned while at the site?
• Who at the site provided helpful information?
• What was your favorite part of the visit and why?

• For example, you might state that the factory uses the latest technology but point out that employees need more training to work with the new equipment.
• If there was anything important left out of the visit, state what it was. For example, maybe you were hoping to see the main factory floor or to talk to the manager.

• Tailor your recommendations to the organization or institution that owns the site. What is practical and reasonable for them to do to improve their site?
• Be specific. Don’t just say they need to improve infrastructure. State what type of equipment they need or give advice on how to improve employee morale.

Formatting Your Report

• If you are following a certain style guideline, like APA or Chicago style, make sure to format the title page according to the rules of the handbook.

• Don’t just say “the visit was interesting” or “I was bored.” Be specific when describing what you learned or saw.

Sample Visit Report

Community Q&A

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• ↑ http://services.unimelb.edu.au/__data/assets/pdf_file/0010/471286/Site_Reports_for_Engineers_Update_051112.pdf
• ↑ https://www.examples.com/business/visit-report.html
• ↑ https://www.thepensters.com/blog/industrial-visit-report-writing/
• ↑ https://eclass.aueb.gr/modules/document/file.php/ME342/Report%20Drafting.pdf

About This Article

To write a visit report, start by including a general introduction that tells your audience where and when you visited, who your contact was, and how you got there. Once you have the introduction written out, take 1 to 2 paragraphs to describe the purpose of the site you visited, including details like the size and layout. If you visited a business, talk about what the business does and describe any specific departments you went to. Then, summarize what happened during your visit in chronological order. Make sure to include people you met and what they told you. Toward the end of your report, reflect on your visit by identifying any strengths and weaknesses in how the site operates and provide any recommendations for improvement. For more help, including how to format your report, read on! Did this summary help you? Yes No

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Home » Report Templates » Free Industry Visit Report Templates (Excel / Word / PDF)

Report Templates

Free industry visit report templates (excel / word / pdf).

When an individual visits the industry whether he or she is a student or an employee, they need an industry visit report template to create a visit report. This document contains a detailed summary of the visit organized in a sequence.

Table of Contents

How to write an industry visit report?

Here are the steps to write an industry visit report;

Introduction

In this section, provide the introductory information about the event including;

• Who proposed and organized it
• Complete designation of the facility you’ve visited
• The name of your college or company
• The names and positions of people who played a significant role in organizing and implementing the event
• Faculty members who are associated with the students or employees
• Total number of people involved in it

Details of Visit

Here, you need to provide the following details about the visit;

• The timeline of the visit
• Point-by-point detail of every part of your journey
• Where and when you started
• What industries and facilities you’ve visited
• Where and when you attended seminars
• When the event ended
• When you come back

Detailed descriptions

Describe the important stages of your visit in detail. In case, you have attended seminars then specify the following;

• When and where they took place
• How long they lasted
• Who conducted them
• What they were about
• What you’ve learned
• Your general impressions

In addition, if you have visited any specific places then mention the locations, staff members that are with you during the visit, knowledge you got during the visit, and your feedback about the visit.

Travel details

This part of your report includes technical and statistical details;

• Names of the people or students who are with you during the visit
• The place where you stayed

Feedback from students or employees

In the end, the students or employees have to provide their generalized opinion of the whole event. State whether it was useful and whether you got any specific new knowledge and experiences from it.

Store Visit Report Form

School Visit Report Form

Site Visit Report Sample

Industry Visit Report Template

Team Home Visit Report Template

Field Visit Report Template

Sales Person Daily Progress Report Template

Construction Site Visit Report Template

Business Visit Report Template

It provides you with updated details regarding the current events after a visit. It facilitates decision-making in a company.

First, state the general information about the visit and specify the purpose of the visit. Describe the entire visit in detail and summarize the report with important information.

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I am Ryan Duffy and legal writer. I received a bachelor of business administration (BBA) degree from London Business School. I have 8+ years of writing experience in the different template fields and working with ExcelTMP.com for 7 years. I work with a team of writers and business and legal professionals to provide you with the best templates.

• Visit Report

Visit Report Format

Visit report samples, what is visit report, the basic format of a visit report, how to write a proper visit report, what are some examples of a visit report, how many pages does a visit report have, what is a trip report memo, how do you write a visit report, what is included in a site visit report, how to prepare a site visit report, how to prepare for a customer visit, what should a report include, what is a customer visit report, how do i end a report, what is the summary of the activity report, what does a report look like, what is the objective of a site visit report.

1. Title Page

• Organization Name
• Visitor’s Name
• Date of Visit

2. Introduction

• Purpose of Visit
• Location of Visit

3. Details of the Visit

• Activities Undertaken
• Observations

4. Findings

• Summary of Observations
• Key Points Noted

5. Conclusion

• Summary of Visit
• Recommendations

6. Appendices (if any)

• Additional Documents
• Photographs

Visit Report Sample

Visit Report PDF

Field Visit Report Sample PDF

Site Visit Report Template Word

Visit Report Template

Sample School Visit Report

Customer Visit Report Template

Field Visit Report

Sample Site Visit Report

Customer Visit Report Outline

Sample Industry Visit Report

New Customer Visit Report Template

Construction Site Visit Report

Sample Customer Visit Report

Free School Visit Report Template

Sample Official Overseas Visit Report

Weekly Site Visit Report

Project Field Visit Report

Recommendation Study Visit Report

Observation Site Visit Reports for Engineers

Simple Industrial Visit Report

School Lab Visit Analysis Report

Building Construction Property Visit Report

Medical College Visit Report

Sample Location Visit Report

Monitoring Visit Report Summary

Marketing Team Site Visit Report

School Academic Visit Report Template

Chemical Exposure Visit Report

Business Renewal Site Visit Report

Management Conference Visit Report

Pre-Event Site Visit Report Example in PDF

Sample Parent Visit Report Format

Home Tour Visit Report Template

Report of Research Visit

Daily Food Sponsor Visit Report Example

Sample Civil Site Monitoring Visit Report

Why Are Visit Reports Important?

Step 1: determine your purpose, step 2: be observant and write what happened, step 3: reflect on your visit, step 4: download a template and insert the details, step 5: organize details according to the format.

• Site visit report
• Business visit report
• Field trip visit report
• Industrial visit report
• Monitoring visit report

• Define the Purpose: Clearly state the visit’s objectives and expected outcomes. For example, the purpose of a  Training Report  may include identifying partnership opportunities.
• Collect Information: Take detailed notes during the visit, and use photos or videos to supplement your observations.
• Organize Data: Categorize the information into sections such as background, observations, and analysis.
• Draft the Report: Begin with an introduction, followed by detailed observations, analysis, and end with a summary and recommendations.
• Review and Finalize: Proofread for accuracy and clarity, ensuring the report follows the planned structure and incorporates stakeholder feedback. You may also see  Lab Report
• Introduction: State the purpose, date, duration, and participants involved. For instance, a Construction Site Visit Report should specify the project stage being assessed.
• Site Description: Provide a detailed description of the site, current conditions, and relevant background information.
• Observations: Offer a detailed account of activities, notable events, and any issues encountered.
• Analysis: Interpret the observations, relating them to the visit objectives and providing insights.
• Conclusion and Recommendations: Summarize key findings and provide recommendations for future actions or improvements. You may also see  Technical Report
• Pre-Visit Preparation: Understand the visit’s purpose and objectives, gathering necessary information beforehand.
• Data Collection: Take comprehensive notes during the visit and use multimedia tools to document observations.
• Data Organization: Organize the collected data into coherent sections, highlighting significant observations.
• Report Drafting: Write an introduction, detailed body sections covering observations and analyses, and a conclusion with recommendations.
• Review and Finalization: Proofread for accuracy and clarity, ensuring the report meets its objectives and incorporates stakeholder feedback. You may also see  Police Report
• Research: Understand the customer’s needs, preferences, and background information.
• Planning: Schedule the visit, prepare an agenda, and coordinate with relevant team members. You may also see  Social Media Report
• Materials Preparation: Gather all necessary documents, presentations, and product samples.
• Team Briefing: Brief your team on the visit’s objectives, roles, and responsibilities.
• Follow-Up: Plan post-visit actions, such as sending a summary email and addressing any customer queries. This approach can be applied to a Home Visitation Report to ensure thorough preparation and follow-up.

• Title and Introduction: Clearly state the report’s title and provide an overview of its purpose and scope. For example, an Internship Report should highlight the intern’s role and learning objectives.
• Methodology: Describe the methods used to collect and analyze data.
• Findings: Present detailed findings, supported by data and observations. You may also see  Weather Report
• Discussion: Analyze the findings, discussing their implications and significance.
• Conclusion and Recommendations: Summarize key insights and provide actionable recommendations for future actions. This format is equally effective for a School Visit Report to convey the visit’s outcomes comprehensively.

What does the site visit report example cover?

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Site Visit or Plant Tour: How to Maximize Its Effectiveness

• December 3, 2018
• Supplier Assessment , Supplier Sourcing

We’ve talked about why and how you should do a site visit before. Even though you know a site visit is of great importance in assuring you the quality and the consistency of your future products, you may still find it hard to put it to effective use. This is all the more true if you or your team have limited experience in conducting site visits or plant tours.

For some, especially those who are looking for overseas suppliers, site visits are both time and money consuming. Especially when you don’t have a local team to help you with that.

So what can you do to ensure an effective site visit? How can you maximize the effectiveness of the plant tours?

We’ve broken the whole site visit into the following 3 parts, so you’ll have a better idea of what to do in each phase of the site visit so as to make it effective as you hope.

Before the visit

Before going straight forward to the supplier, there are things that you can do to save time for the both parties. Such preparations are of utmost important in that they set the tone for the rest of the tasks that follow.

Prioritize your goals for the site visit

First, you need to know for sure why you want to do the site visit, what accomplishments you want to achieve, who do you think you should talk to if you want to get the problem solved.

Without knowing where to focus the time and effort, it’s almost unlikely that you will see a promising outcome for the site visit.

The last thing you want to do is to make the site visit just a day tour to the factory, only to discover that the site visit is but a tiring and non-effective waste of time.

Gather the right resources

Once you’ve set the goals for your site visit, it shouldn’t be hard for you to gather the right resources to actually going to the site.

For example, you should include a quality engineer in your site visit team if one of your priorities is product quality. And you should definitely include a sourcing professional if you want to make sure the product price is not off the chart.

It is, of course, very natural for you to include as many people who have site visiting experience as you can. Because the more site visits one has done, the easier for them to maximize the effectiveness of the tours. However, with the clear goals and structure set, it’s easy for even the young, in-experienced engineers to get the most out of site visits.

Do a joint preparation

When you have the goals and team set, the next thing you do is to start preparing for the visit. And we suggest doing a joint preparation, i.e. a joint meeting between you and the potential supplier.

In this way, you won’t have to explain to your supplier what exactly are you looking for at the site and waste the precious visiting time. And your supplier can prepare the required information such as data, numbers, figures when you ask for it at the site.

In addition, you can settle down on the detail schedule for the visit and propose changes to items that are of little importance to your visit goals.

During the visit

We’ve covered in the post Select the Ideal Supplier With a Site Visit  about what questions you should as during a site visit.

Here is just a screen shot for your reference. Feel free to give it a read if you’re interested in knowing more.

After the visit

When the visit ends, it’s crucial that you summarize the visit into a form of report and then send feedback to your potential supplier.

On the one hand, the site visit report is a good way to tell how well you and your team have achieved the goals you set before the visit. In addition, the report provides an objective insight of whether the visited supplier is a good fit for your product.

On the other hand, your potential supplier could use the feedback to improve their expertise and capabilities. Even though the supplier won’t be your choice at the end, it’s still good for your business to maintain a nice, friendly relationship with more potential suppliers.

If site visits are almost impossible…

There are many cases where site visits are almost impossible to be done. For example, when your potential suppliers are located somewhere across the world; when you don’t have the right resources to assess the potential suppliers at site; when the suppliers refuse any chance of site visiting from you…

If you’re still bothered by the above problems, feel free to reach out to us, and we’d be more than happy to fix the problem for you.

We have a team of engineers with decades of experience in field; we’re located in Asia so it’s easier for us to get around; we have great relationships with hundreds of suppliers in almost any industries… In a nutshell, we’ve got you covered.

Feel free to let us know what’s bothering you, and we’ll see what we can do to help.

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How to Write an Industrial Visit Report

Unfortunately, they are rarely given coherent instructions as to how it is supposed to be done. Here we will clarify this point a bit.

First of all, you should understand that, as a rule, you are not expected to provide any fantastic insights into the inner workings of the plant you’ve visited. You should simply tell how it all went. In most cases, you will be given instructions as to how you are supposed to organize your report – which means that if you have any questions concerning the formatting, you should address them to your college. However, most reports are organized as follows:

Project name, your name and status, name and status of the person you submit your report to, college name, plant name, date and place of the visit.

Introduction

Here you write the preliminary information about the event – who proposed and organized it, full designation of the facility you’ve visited and the name of your college and department. Don’t forget to mention the names and positions of people who played an important part in organizing and implementing the event, faculty members who accompanied the students and total number of people that took part in it, both students and faculty members.

Details of Journey/Work Plan

Here you provide the timeline of the visit, enumerating, point by point, every part of your journey. Where and when you started, where and when you attended seminars and other events accompanying the visit, what industries and facilities you’ve visited, when the event ended and when you got back. No details are necessary; you simply give a short report of your actions and movements.

Detailed Descriptions

In this section you describe the more significant stages of your visit in greater detail. If you attended seminars, you mention when and where they took place, how long they lasted, who conducted them, what they were about, what you’ve learned, and your general impressions.

If you visited particular facilities, you enumerate them and their locations, mention staff members accompanying you during the visit, what new information you got in the process and your impressions about the visit.

Travel Details

This part contains mostly technical and statistical information: names of the faculty members accompanying you and other students taking part in the visit, where you stayed and with whose help the entire thing was organized.

Students’ Feedback

Finally, students are supposed to give their generalized opinion of the entire event: whether it was useful or not, whether the plant’s staff was helpful and supportive, whether you got any particular new knowledge and experiences from it and so on. Complete it by mentioning who took part in preparing this report.

In general, there is nothing particularly hard about preparing an industrial visit report. You don’t have to think anything up – just make sure to follow your college’s guidelines and mention everything of note.

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Why (and How) to Take a Plant Tour

• David M. Upton
• Stephen E. Macadam

By adopting a systematic approach to plant tours, visitors can uncover and communicate a wealth of strategic and operating information.

In recent years, managers have recognized how manufacturing capabilities contribute to a company’s overall strategic strength. The ability to respond quickly to customers’ orders, to customize products to match customers’ exact requirements, or to ramp up production rapidly can be a powerful and difficult-to-imitate competitive weapon. But many corporate managers identify their plants’ capabilities only by accident—as a result of chance conversations with plant managers or operations specialists. Consequently, many managers do not have the information necessary to cultivate, shape, and exploit their company’s manufacturing capabilities. As plants develop, however, they need guidance to build capabilities that meet current and future needs. Plant tours can be a powerful way of providing factories with that kind of direction.

• David M. Upton is the American Standard Companies Professor of Operations Management at the University of Oxford’s Saïd Business School.
• SM Stephen E. Macadam is a principal at McKinsey & Company’s Charlotte, North Carolina, office.

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Dashpivot article – How to write a Site Visit Report for construction

How to write a site visit report for construction

What should be in a construction site visit report.

A site visit report for construction is essential in capturing the progress, challenges, and conditions observed on a construction site. Here's a breakdown of what should typically be included in a site visit report report:

• Project Reference: The construction project name and reference ID.
• Location: The exact address or co-ordinates of the construction site.
• Date of Site Visit: The specific date(s) when the visit was recorded.
• Prepared By: The name of the individual or team responsible for the report.
• Project Overview: A brief description of the construction project and its significance.
• Purpose of Visit: The main objectives or reasons for the site visit.
• Names, titles, and affiliations of all individuals present during the site visit, including site supervisors, engineers, contractors, stakeholders, etc.
• Planned activities, areas inspected, and topics discussed during the visit.
• Construction Progress: Status of ongoing construction activities, milestones achieved, and work remaining.
• Equipment & Material Status: Condition and availability of machinery, tools, and materials.
• Safety Observations: Notes on safety measures in place, potential hazards observed, and any safety incidents that may have occurred.
• Quality of Work: Observations related to the quality and standards of the construction work.
• Team Dynamics: Interactions among the construction team, including any challenges or bottlenecks in workflows.
• Highlights: Significant accomplishments or milestones achieved since the last visit/report.
• Issues/Challenges: Problems, delays, or potential risks observed during the visit.
• Actionable suggestions or solutions based on the observations and findings. This might include fixes, interventions, or changes in procedures.
• Relevant photos from the site visit that showcase progress, challenges, or specific areas of interest. Ensure that photos are labeled or captioned appropriately with timestamps, geotagging and markup.
• A brief recap of the main observations, emphasizing the overall status and health of the construction project.
• Details about planned interventions, further visits, or any immediate actions required based on the report's observations.

How do you plan for a construction site visit report?

Planning a construction site visit report is crucial to ensure the visit is effective and that the subsequent report is comprehensive and valuable. Here's a systematic approach to planning a construction site visit report:

• Determine the main reason for the site visit. Is it a routine check, a response to a reported issue, or to monitor a specific phase of the project?
• Familiarize yourself with the status and findings from prior reports to understand the project's progression and to identify any outstanding issues.
• Outline what you intend to inspect and the issues you aim to address.
• Allocate time for specific activities, such as meetings with the site manager, inspecting particular areas, or reviewing certain processes.
• Inform them about your visit, discussing your agenda and objectives.
• Request any specific materials, equipment, or personnel you might need during the visit.
• Gather project plans, previous site visit reports, safety protocols, and any other relevant documentation that will help guide your visit.
• Ensure you have the necessary personal protective equipment, such as a helmet, safety shoes, high-visibility vest, and any other site-specific safety gear.
• Carry tools for documentation: notebook, camera (if allowed), voice recorder, and measuring tools, if necessary.
• Determine whom you need to meet, such as the site supervisor, safety officer, project manager, or specific workers. Ensure they are available during your visit.
• Familiarize yourself with the site's safety protocols.
• Ensure you are informed about potential hazards and the safety measures in place.
• Set aside time to discuss findings, concerns, or clarifications with the on-site team. It's beneficial to address issues or misconceptions immediately.
• Set Report Deadlines:
• Determine when your report will be written and by when it needs to be distributed to stakeholders. Setting a deadline will ensure timely follow-ups and actions.

How often should you run site visit reports?

Here's a general guideline for determining the frequency of site visit reports:

• Large-Scale Projects: Bigger projects such as skyscrapers or major infrastructure projects might warrant weekly or even more frequent reports, especially during critical phases.
• Medium-Scale Projects: Residential complexes, mid-sized commercial buildings, or similar constructions may require bi-weekly to monthly reports.
• Small-Scale Projects: Smaller projects, like home renovations, might need bi-monthly or even quarterly reports unless there are significant changes or issues.
• Initiation and Mobilization: Frequent reports can ensure the project's initial stages align with plans and guidelines.
• Critical Construction Phases: During essential stages, such as foundation laying or the installation of primary structures, more frequent reporting may be needed.
• Completion or Finishing Phase: As the project nears completion, visits might focus on ensuring the quality of finishing touches and adherence to project specs.
• Conducting site visits upon the achievement of significant project milestones can confirm progress and alignment with project goals.
• Some stakeholders or investors might have mandatory frequencies for site visits as part of their oversight or contractual obligations.
• If previous visits or reports highlight certain risks, problems, or deviations from the plan, it can be necessary to increase the frequency of visits to monitor corrective measures and developments closely.
• Unpredictable events such as severe weather conditions, labor strikes, or supply chain disruptions might require unscheduled visits to assess impacts and adjustments.
• Some projects might be under mandates from local or federal agencies, requiring specific site visit and report frequencies, especially if there are environmental or community concerns.
• In the wake of safety incidents or if particular high-risk activities are underway, increased visit frequency can reinforce safety measures and ensure compliance with safety standards.

What should a completed site visit report look like?

After you've written your construction site visit report, it should look along the lines of the example below.

Use this free Construction Site Visit Report template for your next project

Use a standardised construction site visit report.

Make it easy for your team to write construction site visit reports by using a standardised site visit report template .

The digital construction site visit report comes standardised with all the fields and sections to run site visit reports smoothly with all the information. you need, first time.

Customise the site visit report with any extra information you need to capture on site to show the progress on the project.

Distribute your digital construction site visit report for your team on mobile or tablet so they can write it on site and sync it back to the office when it's completed.

Build automated processes for your construction site visit reports

Make it easy for your team to request, write and sign off on construction site visit reports by using a dedicated site visit report app .

Create automated workflows with automatic notifications for when someone needs to write a report, or give signoff approval.

Share completed site visit reports quickly and easily as PDF or CSV with brand colours and logo for a professional construction site visit report.

Take and attach photos directly on site from your phone with automatic timestamps, geotagging, markup and smart tags for a well documented construction site visit report.

Site diary template

Complete and organise your daily diaries more efficiently.

Meeting Minutes template

Capture, record and organise those meeting minutes.

Progress Claim template

Streamline and automate the progress claim process to get paid faster and look more professional.

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About Nick Chernih

Nick is the Senior Marketing Manager at Sitemate. He wants more people in the Built World to see the potential of doing things a different way - just because things are done one way doesn't mean it's the best way for you.

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How to make a report of a technical visit?

• October 9, 2020
• by Sandra Melo
• Work Orders/Services

Table of Contents

A technical visit is a process in which a technician or a group of technicians makes a visit to review a specific project and see its status (planning, costs, characteristics, etc.). It is a kind of technical inspection. After the visit, the technician (s) must issue a report with all the relevant information gathered on the ground during the visit.

What is a technical report?

Is a document that describes the progress, process, or results of a technical research and visit. It also can include some recommendations and conclusions. Its importance lies in the fact that analyze a process and provides information and conclusions that could be used to make relevant decisions for the business or organization in question.

The technical report is the main instrument to find the answers to questions of great importance for the business and can outline the changes required and the steps to follow in order to keep improving processes and the quality of products and services.

The elaboration of the report consist in three stages:

a) Data collection

b) Information analysis

c) Conclusions

The inspection must be exhaustive and meticulous, when checking the infrastructures, the equipment and processes. It is necessary to take into consideration the data collected can be diverse: qualitative, quantitative, numerical, textual, random, etc., so it is necessary to use various instruments for data collection.

Information gathering tools and techniques 

A key step in producing an effective technical report is data collection. The important thing is that the selected techniques should allow to be capture data in a way that it is easy to classify it and analyze it. There are many different methods of information gathering and here are a few:

Observations

The main technique used in data collection is observation; the oldest method used by humans to obtain information and to capture any action of interest that may be relevant for the elaboration of the technical report and the final evaluation. It is important that the information gathered is stored properly, using notes to know when the information was collected. Observations should be labeled with date, time and subject so the subsequent analysis is easier to carry out.

Video recordings & photos

The information does not need to be necessarily written, as it is vital to consider the use of photos and videos, as well as other audiovisual materials. Recordings can be very useful to record specific situations, but it is advisable to transcribe them and extract only the information that is relevant to the process.

Paper surveys

It is one of the more traditional data collection methods. It can be costly in terms of financial, administrative and logistical efforts such as printing and transporting questionnaires to and from the job site. There is also a real risk of surveys getting lost in the field or damaged by weather or transport before the data is processed. Another drawback is that, after all the interviews have been done, the responses must be manually entered into a digital file before the data can be analyzed. This process is time consuming, requires manual labor and increases the margin of error. Data quality controls are limited, and errors are sometimes only recognized when the survey has finished, making it more difficult to carry out corrections.

CAPI surveys

These are personal computer-assisted interviews or CAPI for its acronym in English (Computer-Assisted Personal Interviewing). It is a method that is used to conduct face-to-face interviews, with the help of a software. In recent years, CAPI surveys have become very popular as they represent an inexpensive way to collect high-quality data.

Online surveys

Online surveys tend to decrease the margin of error, provide accurate information, are easy to use, allow faster analyzes, reduce execution times, save money and resources, and optimize data collection and analysis.

Each approach has its own inherent benefits and drawbacks. Most companies find that varying the information-gathering tools based on the companies needs yields the best results.

Once the information has been ordered, classified and categorized, the next step will be to analyze the data collected, ensuring that the premises obtained are supported by evidence.

The data collected can be analyzed through techniques such as content analysis, a method that contrast and compare data of different nature.

The importance of a good technical report

Technical reports are used to communicate information to customers, colleagues and managers, and they are used to document the equipment and procedures used in testing or research and the results obtained so that the work can be repeated if necessary or built upon.

By creating this document your company gets benefits such as:

• Improved team productivity

• Cost control and cost reduction 

• Greater workplace efficiency 

• Improved quality of products and services

• Having an organized database 

• Informed strategic decisions

• Significant increase in customer satisfaction

And you will avoid future problems like:

• Loss of relevant information

• Bad management and organizational problems

• Loss of clients

These are some of the considerations that need to be taken into account when making a technical visit report. From these points, it is necessary to think, organize technical visits to get the most out of them.

How to make a technical visit report

The first thing is to choose the format that best suits your company. Documents printed on paper were widely used until some time ago, but thanks to technology, it is now possible to create digital technical visit reports.

With the digital option, it is possible to guarantee faster results- You can also add photos, GPS tags, date, time and others. Additionally, you can monitor tasks in real time and keep all the information collected synchronized and stored in the cloud.

What information is essential?

If you got the topics carefully ordered on your technical visit report, the work of the technical staff will be faster, more precise and comprehensive. Nothing worse than realizing, after the visit, that information and photos were missing, or some questions were not properly answered.

How to write a technical visit report?

A technical report should have the following structure:

Summary. No more than 200 words describing the content of the report.

Introduction . No more than 2 pages detailing scope, objectives and results of the technical visit.

Content. Include as many sections as necessary, explaining all the technical details.

Conclusions. It should summarize the essential points of the report and can be a kind synthesis of the technical visit report.

Appendix. This section should brief but should include a detailed description of the report elaboration.

Backing up the report with photos, videos, apps can make a difference, as these tools can provides exhaustive information. For example, let us say one of your technicians has a preventive maintenance service for a customer’s various equipment. You could make your report in a way that every photo you take comes out with the date, time when was taken and the location tag.

Using some applications with the QR code can also make data collection easier and faster. Use as many digital tools as you can to get better results. Compliance and non-compliance questions can be answered with simple cell phone clicks. Photo reporting and geolocation contribute significantly to create a reliable report. The schedules from checking in and checking out will give the average time each technician takes to perform tasks and complete a visit. This information can improve future visits and management.

In the appendix there should be extra notes for future visits and unforeseen events that may occur during the visit and were not mapped. In this section, we also recommend writing down reminders for the next visit, requests for spare parts and quotes for complementary services.

Customer suggestions

In order to improve the service, in the visit report you should include suggestions, praise or criticism. We know it is not pleasant to hear criticism, but this is an important action for necessary optimizations. Suggestions for improvement can help customers improve their processes. It often happens that they are so committed to day-to-day tasks that they forget about certain processes that can make a difference in the opinion of their customers.

Report conclusions

A technical report must be written in a clear, well-structured, concise and forceful way so the recipient can get an idea of ​​the content without having to read it completely.

In the conclusion include few words (the less the better) about the report objectives. All the content, descriptions, explanations, photos, essays has to lead to the answers provided in the conclusions of the report. You do not need to repeat everything again, simply make a list the conclusions obtained after the visit and after analyzing all the information gathered. 

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• 6 Areas Every Buyer Should Check During a Factory Visit

Manufacturing and Quality Control blog

By Maegan Burkhart 2 Jul 2019

Many importers use factory visits as an opportunity to strengthen their relationship with a supplier and evaluate their capabilities. Productive factory visits can lead to improved product quality, smoother communication and fewer production delays.

And preparing before your visit helps ensure you get the maximum benefit and insight from your trip. If you’re not prepared, your factory contact might rush you through a brief tour of parts of the facility before you have a chance to see any issues or ask any questions.  

There’s no substitute for a formal audit of a supplier’s facilities. But visiting the factory is a valuable opportunity for you to informally evaluate the factory for yourself. Whether your factory is in China, Vietnam, India or elsewhere, here are six areas to check during your next visit.  

1. Factory organization

You often don’t need a black belt in Six Sigma to spot serious organizational issues during a factory visit.      

Poor organization can cause many problems—from order delays to wasteful production processes, poor quality and even safety issues ( related: Factory Efficiency: 5 Common Examples of Poor Factory Layout & Process Setup ).

5S is a workplace organization method originating from Japan as part of the “just-in-time” manufacturing methodology. The rough English translation of each of the five S’s is:

• Sort : Sort through all items in a factory area and remove unnecessary tools, parts and instructions
• Set in order : Organize remaining items and arrange for easy use
• Shine : Clean the factory area on a regular basis
• Standardize : Schedule regular cleaning and maintenance
• Sustain : Train employees to make 5S a habit and monitor implementation

While you might see 5S posters when touring factories, it’s rare to see small- and medium-sized factories that actually implement the 5S method.

Here are a few questions you can ask yourself when visiting a factory to evaluate its organization: 

• Do employees seem to be walking far from one production area to another? Moving long distances to transport materials can cause bottlenecks and slow down production.
• Are parts or semi-finished goods stacked neatly in an accessible location ? Disorganized items could be damaged or lost between production stages.
• Are materials and components labeled clearly and accurately? You should be able to spot signs and labels next to materials, even if you can’t read the local language.

2. Factory capacity: Production planning board

A supplier will often tell you their production capacity exceeds your order quantity to convince you to place an order. You can often validate this claim for yourself while visiting the factory.

• Increased production and shipping delays
• Misunderstandings regarding your quality requirements
• Limited social or other compliance oversight

A good factory takes steps to plan well for disruptions, whether they’re using sub-suppliers or not. Otherwise, they could constantly be playing catch up, especially around January or February when Lunar New Year affects manufacturing .

Every factory should be prepared year-round for potential material or labor shortages and equipment failures.

To validate a supplier’s production capacity, look for any visual boards on the production floor during your next visit. Do they list the day’s production targets and current progress? Is there a plan for the whole week? Month? These details can reveal the supplier’s true capacity and ability to track and manage orders.

Rushing production is rarely a good idea. And confirming your supplier plans for disruptions helps you rest assured that quality won’t slip during busy seasons.

3. Factory working conditions and instructions

A social compliance audit is often necessary to thoroughly assess your supplier’s working conditions. But the average buyer can still often tell the difference between a safe and unsafe working environment through a few basic checks during a factory visit:

• Are workers wearing any required protective gear to prevent injuries?
• Are workshops properly ventilated where required?
• Can you spot any safety hazards? Puddles of water, unlabeled chemicals and poor lighting are all cause for concern.

Detailed work instructions are another sign of a factory that takes working conditions and production quality seriously.

What are work instructions? You can think of them as the user instructions you reference when assembling a new piece of furniture. Assembly line workers should also have clear instructions, so they can safely and accurately complete production steps, like the below example:

Work instructions should generally be:

• Relatively simple with visual examples included to illustrate procedures
• Highly visible and clear, typically posted at each production station

You don’t need to be able to read and understand the local language to get a basic sense of how effective these work instructions are. Those that appear excessively long, poorly organized, inaccessible or hard to reference for specific information quickly can probably be improved.

4. Production equipment at the factory

Factories will generally cover the up-front cost of purchasing any necessary production equipment. But many factory owners don’t like to invest in the cost of regularly maintaining equipment.

Tools or machines that aren’t maintained or recalibrated periodically can lead to product defects , non-conforming products and inconsistent production runs.

Understanding what equipment your factory has on site can also help you set achievable quality standards based on your supplier’s available resources. You might be surprised to learn which production processes for your product are automated and which may require manual labor that can cause quality variance.

Some relevant questions to ask during your next factory visit regarding equipment include:

• Is equipment regularly inspected and in good condition? The factory should label equipment with maintenance information and log it in organized records. These records should note who performed the inspection and the inspection date.
• Does all equipment needed to manufacture your product appear to be available on site? A factory that doesn’t have all the necessary equipment might be outsourcing production.
• Does the factory have professional lab testing equipment available on site? Suppliers often claim to be able to test your products in their on-site lab but might lack essential equipment and personnel.

5. Warehouse and material inventory

Degraded raw materials used in mass production can cause quality issues in finished products, requiring extensive rework or replacement. A good factory usually conducts incoming inspections to verify raw materials before use in production.

Proper storage of finished products before shipment is also important for preserving product quality.  Temperature, lighting and humidity, for instance, can affect certain products and packaging materials ( related : 3 Reasons Your Product Won’t Reach Customers in the Right Condition ).

Be sure to check the factory’s storage area for the following during your factory visit:

• Material storage time : A good factory should be able to provide records of incoming materials, including the date they were received.
• Cleanliness and orderliness of storage conditions : Materials can change or degrade if stored for long periods in improper conditions.
• Volume : Warehouse volume can indicate your factory’s capacity. You might even be able to see whether your supplier is working with your competitors by looking at carton labels.

6. Production samples

Many importers choose to plan a factory visit once the supplier has had time to manufacture a production sample. For example, you might plan your visit among other sourcing activities as follows:

• Identify and qualify a potential supplier
• Request quotation
• Place purchase order
• Factory prepares sample
• Visit factory and review sample on site

Reviewing a product sample on site often speeds up a process that can otherwise take days or weeks.

Reviewing samples on site lets you give direct feedback and point out any nonconformities immediately. The founders of Need/Want said this opportunity was invaluable for their importing company:               

Immediately, we noticed a few issues with the product… Had we not been there, it would have taken a few weeks to catch them. This alone made it worthwhile for us to fly out there. The entire trip was all worth it just to catch this one mistake.

It’s still a good idea to have your supplier ship another sample after your visit to ensure they’ve corrected any nonconformities. But you can significantly speed up the process by providing clear feedback on site.

Gain more insight with a supplier visit report from a third party

Ultimately, there’s only so much information the average buyer can collect on site during a factory visit. Factory owners are often far more interested in “wining and dining” their customers than accurately representing their production capabilities ( related : 3 Cultural Barriers You Must Face for Effective China Quality Control ).

Sending an independent quality control professional to your factory can provide many benefits that an informal visit cannot. This sort of visit is commonly known as a supplier verification audit, or quality audit . The auditor typically follows a checklist based on international standards like ISO 9001 .

Professional auditors can use their industry expertise to objectively evaluate a supplier on even more areas than the six listed above. And a factory manager is less likely to influence an independent auditor that’s visiting the factory on your behalf.

How third-party supplier visit reports help you find a good factory

One of the main benefits of an independent audit is the supplier visit report you receive with results.

Quality control isn’t many buyers’ primary field of expertise, especially for purchasing managers and business owners . A third-party supplier visit report scores suppliers on objective criteria, making it easy to evaluate and compare suppliers.

• Quality management system : Evaluation of design controls, purchasing controls and production controls in compliance with ISO 9001 standards
• Quality control procedures : Evaluation of incoming, during and final product quality control procedures and use of acceptance sampling
• HR recruitment and training : Evaluations of records showing structured and frequent training programs and ethical recruitment practices

While auditors don’t typically review a production sample during an audit, you can usually ask the auditor to ship a sample to their local office for review. This can still speed up the sample review process by reducing shipment time and costs.  

You can often accompany an auditor to observe the audit process for yourself. This might be a good option if you’re planning a visit but aren’t confident about your own ability to evaluate the supplier.

Every buyer should try to evaluate these six areas during each factory visit. Consider checking these factory areas as your main criteria for evaluating a supplier’s facility and capabilities.

You might also benefit from a more detailed supplier visit report from an independent auditor. A formal factory audit is especially relevant if you’re working with a factory for the first time, placing a large order or want to manage your supplier risk .

By gathering as much information as you can during a factory visit, your supply chain will be much better protected against potential disruptions.

What kinds of horror stories or other interesting discoveries have you made during a factory visit? Share them in the comments below!

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For every business’s marketing initiative, a customer visit is one of the most vital activities a company’s product manager should do. This is to ensure that you get direct feedback from your customers  regarding how your product has impacted your costumes, in both positive and negative aspects. You get a list of action items that you need to do to improve your product based on customer suggestions.

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• Taking down simple notes during your visit can help you later on, while you make the report. Request reports and other documentation you’ll need to back up the input you are compiling and ensure that you have authorization from your source.
• Begin analyzing raw data for your visit report as soon as possible. You can follow your organization’s format or download and edit any of the above-mentioned printable templates easily.
• Start your visit report with an area emphasizing typical data such as the name of the site, address, contact person, arrival, and purpose and objectives of the visit.
• Write an introduction telling the organization you visited. Mention who are those you interacted with while on site. Exclude sensitive information from your quarterly report .
• Don’t forget to proofread your first draft. Add titles, subheadings, bullet points, and other organizing details.
• Arrange the attachments following your visit report in an organized manner.

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How to Write a Report?

• Make your research – Ensure you have the right number of sources for your services report.
• Always make sure that your sources are reliable – Make sure to double-check any facts you find. It is recommended to stay with the details gathered by known experts.
• Write a report states – This serves as the main concept of the report layout . This summarizes what you want to prove in your report for your reader.
• Write a precise and engaging introduction – Your goal is to entice readers to read your report. You should provide some background details on your topic.
• Write your content – The body paragraphs are where you describe the evidence that supports your report. Each paragraph contains a topic sentence and supports the proof sentence.
• Create your conclusion – This part should summarize your report and provide your final input.

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Plant-based meat substitutes may be healthier for the heart than real meat

Plant-based meat alternatives, despite being ultraprocessed, may be healthier for the heart than meat, a new report suggests.

A review of previous studies found that risk factors for heart disease, including total cholesterol, LDL cholesterol and body weight, improved when various animal-based meats were replaced with a substitute made from plants, according to the paper, published Wednesday in the Canadian Journal of Cardiology. 

“Plant-based meat is a healthy alternative that is clearly associated with reduced cardiovascular risk factors,” said the study’s senior author, Dr. Ehud Ur, a professor of medicine at the University of British Columbia in Vancouver.

The new research, which reviewed studies published from 1970 to 2023, also found a wide nutritional variation in the meat substitutes, such as in the amount of sodium and saturated fat they contained.

One of the clinical trials cited by the researchers found that when participants consumed plant-based alternatives they experienced a 13% reduction in total cholesterol, a 9% reduction in LDL cholesterol, a 53% reduction in triglycerides and an 11% rise in HDL cholesterol.

Ur and his colleagues focused on two burger brands — one older-generation, one newer with a closer approximation to beef flavor. The older-brand burger had 6% of the recommended daily allowance for saturated fat, compared to 30% in the newer company’s burger. Neither brand contained cholesterol.

The new report adds another layer to the question of how plant burgers affect health.

Most meat substitutes are highly processed. Ultraprocessed foods tend to be low in fiber and loaded with salt, sugar and additives and have been linked to a higher risk of heart disease and premature death . 

A study published this month in Lancet Regional Health—Europe suggested that consuming plant-based ultraprocessed foods — including meat substitutes — could increase the risk of heart attacks and strokes. The study didn’t, however, directly compare meat alternatives to actual meat.

Ur countered that not all ultraprocessed foods are unhealthy and that the term shouldn’t be the “kiss of death” for a food.

“In and of itself, processing is not necessarily a bad thing,” Ur said. “It’s true that these plant-based meats are highly processed, but not in the sense that they have lots of saturated fats or certain carbohydrates that are associated with adverse outcomes."

What’s needed is a randomized trial looking at heart attack and stroke in people who eat meat substitutes compared to regular meat eaters, Ur said. 

“Obviously, it could be difficult to conduct a double-blind trial because people might be able to tell whether they were eating meat or an alternative,” he said. “But some of the newer plant-based meats are very close in flavor to actual meat.”

Dr. Walter Willett, a professor of epidemiology and nutrition at the Harvard T.H. Chan School of Public Health, said that while some plant-based alternatives may be better for the heart than meat, “in general, the best option would be to consume whole foods.”

According to Willett, the healthiest whole foods are a combination of:

• Soy foods and other legumes
• Whole grains
• Liquid plant oils, such as olive oil

A vegetarian or pescatarian diet “would include a modest amount of dairy foods and eggs and fish about twice a week,” Willett said.

But not everyone is ready for that. “So I do think there is space for foods that might be called ultraprocessed,” he said.

He pointed to a study published in 2020 in the American Journal of Clinical Nutrition, in which participants consumed meat for eight weeks and a plant-based meat alternative for eight weeks.

When participants consumed the meat alternative, “cholesterol and blood pressure were reduced by about 10%, which is pretty substantial,” Willett said. “Just the fact that something might fall under the definition of ultraprocessed doesn’t mean it’s bad.”

People need to take into account the variation in meat alternatives made from plants, said Marie-Pierre St-Onge, an associate professor of nutritional medicine at the Columbia University Irving Medical Center. The amount of saturated fat in a meat alternative depends on the brand, for example.

“Consumers need to become more savvy and educated about the nutrition facts panel,” St-Onge said. “If a plant-based burger is 35% to 40% of the daily sodium allowance, it’s not for you if you have high blood pressure.”

Dr. Anu Lala, director of heart failure research at the Mount Sinai Fuster Heart Hospital in New York, said longer follow-up studies are needed to determine whether plant-based meat alternatives are healthier.

“There needs to be a concerted effort — like there has been with the Mediterranean diet — to understand the plant-based dietary programs and their long-term effects,” Lala said.

For a healthier choice, she suggested checking a meat alternative’s label for: 

• Sodium content
• Amount of saturated fat
• Source of protein, such as pea or soy
• Gluten, for people who have a sensitivity 
• Artificial sweeteners

People are desperate to find easy solutions and to try to pinpoint specific diet interventions, but a single food doesn't make an overall diet healthier, Lala said.

“We need to take a holistic approach that incorporates a balanced diet that is high in fruits and vegetables — and includes movement,” she said.

CORRECTION (June 27, 2024, 1:23 p.m. ET) A previous version of this article misstated the cholesterol content of the plant-based burgers in the study. None of them contained cholesterol, including the newer brand.

Linda Carroll is a regular health contributor to NBC News. She is coauthor of "The Concussion Crisis: Anatomy of a Silent Epidemic" and "Out of the Clouds: The Unlikely Horseman and the Unwanted Colt Who Conquered the Sport of Kings." 

Exploring new regions: The greenfield opportunity in semiconductors

By now, it’s old news: semiconductor demand is growing. What’s new, however, is how several global trends—including the rise of artificial intelligence, vehicle electrification, and autonomous driving—will broaden demand and take it to even greater heights over the next decade.

About the authors

This article is a collaborative effort by Ondrej Burkacky , Matteo Mancini , Mark Patel , Giulietta Poltronieri, and Taylor Roundtree, representing views from McKinsey’s Semiconductor Practice.

Already, many incumbents and new entrants in semiconductor manufacturing are expanding their operations to capture the increasing opportunities along the entire value chain, including those related to wafer manufacturing, chemical supply, packaging , capital equipment, and other areas. Globally, companies plan to invest about $1 trillion in semiconductor fabs through 2030. Most investment is concentrated in Asia and the United States, but funding for European projects is also increasing.

For some semiconductor companies, expansion efforts may involve building fabs in regions or countries where they have not previously operated. In the past, companies that explored such opportunities sought locations with established semiconductor ecosystems that met some basic requirements: sufficient and stable energy and water supplies, a pool of potential employees with technical skills, the right infrastructure, and a solid transportation network. Well-known ecosystems that fall into this category include Taiwan’s Hsinchu Science Park and Germany’s Silicon Saxony. (For more information on these locations, see sidebar, “Thriving semiconductor ecosystems.”)

Thriving semiconductor ecosystems

Strong semiconductor ecosystems can be found worldwide, and they come in different shapes and sizes. One of the most outstanding is Hsinchu Science Park in Taiwan. Within just three square miles, Hsinchu contains more than 150 semiconductor companies and suppliers, more than 600 manufacturers, three universities, and more than 160,000 highly skilled full-time employees. Similarly, Silicon Saxony in Germany, which is the largest semiconductor cluster in Europe, contains more than 400 industry actors, universities, and research centers. Through coherent policies and robust ecosystem building, Saxony has more than doubled the number of employees in the semiconductor industry over the past 20 years. The industry projects that there will be about 100,000 workers in Saxony’s semiconductor industry by 2030.

When semiconductor companies consider expansion today, they still restrict their search to locations that meet their basic requirements. But simply meeting these requirements is not enough to guarantee investment. Instead, semiconductor companies now focus on three S’s—sustainability, supply chain security, and subsidies—as they select new sites. Their shifting priorities reflect changes occurring in the world at large, including growing concern about climate change, geopolitical issues that are disrupting or slowing shipments, and economic uncertainty.

Given the value of the semiconductor industry, as well as its benefits to local economies, much is at stake as companies expand, both for the businesses themselves and for the regions or countries where they establish new sites. Here’s a look at the industry’s growth potential and the factors that may determine where new fabs are built over the next decade.

Would you like to learn more about our Semiconductors Practice ?

A thriving market that encourages expansion.

The global market for semiconductors is projected to reach $1 trillion by 2030, up from $600 billion in 2021 (Exhibit 1). Although the wireless communication and computing sectors are currently undergoing some disruptions, such as lower demand for mobile phones in certain countries, they are expected to experience the strongest long-term growth, followed by the automotive and industrial sectors.

No single country or region dominates any segment of the supply chain, with the notable exception of Asia and its strong manufacturing hubs (Exhibit 2). What’s more, no region or country has strong capabilities in every segment of the value chain, so the end-to-end process for creating a semiconductor involves a global effort. A plant in Japan might cut silicon ingots into wafers, which are then shipped to the United States for fabrication into semiconductors. The next leg of the process could take them to Malaysia for sorting, cutting into dies, assembly, packaging, and testing. Finally, they might be sent to Singapore for incorporation into a finished product as a chip.

The dispersion of expertise gave semiconductor companies some freedom during past expansion efforts, since they could typically find multiple ecosystems that met their needs. Although they traditionally gravitated to areas with large, established semiconductor ecosystems, a few bucked the trend by venturing into new regions, as California-based Intel did in Oregon in 1974, Arizona in 1980, and Ireland in 1989. These moves conferred various advantages, such as lower utility prices and, in the case of Oregon, greater land availability.

Today, many semiconductor companies still focus on locations with large ecosystems—new fabs are now being built in Dresden, which is at the center of the Silicon Saxony semiconductor hub, for example—but there’s a growing trend toward considering other countries or regions because they score high for sustainability, supply chain security, and subsidies. Here again, the global dispersion of expertise could be an advantage. Since no region or country dominates any step of the value chain, with the exception of Asia’s pure-play foundries, companies will not be competing against a single ecosystem that dominates the industry.

To see how investment is shifting to new regions and countries, consider what’s now occurring in the United States. While the country saw little fab construction over the past few decades, the value of US-based semiconductor projects  that are now under way, announced, or under consideration is estimated to range from $223 billion to over $260 billion through 2030. 1 These figures were current as of January 2023. Companies are also more likely to investigate opportunities in US states that have not traditionally attracted the greatest semiconductor investment, with Intel building facilities in Ohio and Skywater planning to expand in Indiana.

New prerequisites and investment calculations

What’s behind the shift that is prompting semiconductor companies to focus on the three S’s, and what do they stand to gain? And what do these trends mean for regions and countries that want to attract more semiconductor investment? To answer these questions, we examined recent developments related to supply chains, sustainability, and subsidies.

A secure location that minimizes supply chain risks

With the recent pandemic, global economic uncertainty, and the war in Ukraine, executives’ risk perceptions are rapidly shifting. According to a recent McKinsey survey of CEOs in advanced industries, many executives now view geopolitical dynamics as the most important challenge to their businesses . 2 McKinsey Global Resilience Survey, July 2023, n = 331. In response, many leaders are now actively monitoring supply chain risks and developing strategies to prevent disruptions. One strategy that is now receiving much attention involves localizing semiconductor manufacturing to prevent disruptions and increase resilience.

Governments often welcome nearshoring efforts because they want to ensure a steady chip supply for local companies, including automakers and other businesses that depend on semiconductors. They also realize that access to chips is essential for many government security platforms.

Governments often welcome nearshoring efforts because they want to ensure a steady chip supply for local companies, including automakers and other businesses that depend on semiconductors.

Sustainability and decarbonization as a clear priority

Motivated by both voluntary and mandatory targets, all semiconductor companies are attempting to reduce their emissions. These efforts may help them meet emerging regulatory guidelines and satisfy the needs of their most important end customers. Many of these companies have set ambitious emissions reduction targets . Microsoft, for instance, wants to be carbon negative by 2030. To meet these goals, end customers must not only mitigate or eliminate their own emissions but they must also address Scope 3 upstream emissions , which include those that arise from the suppliers that provide them with products or components. 3 Scope 3 emissions also include those that arise from an end customer’s product after purchase. If semiconductor companies do not take proactive steps to reduce emissions, their customers might instead purchase carbon offsets—and they might attempt to pass the associated costs to suppliers in the form of price reductions or margin erosion.

Some semiconductor companies have already set emissions reduction goals, and their strategies often involve transitioning to renewable sources because greater than one-third of a typical fab’s emissions arise from energy usage. Intel, which wants to reach net-zero greenhouse gas emissions by 2040, hopes to achieve 100 percent use of renewable electricity by 2030. The ability to shift to renewable energy will differ by location. While Singapore has a thriving semiconductor ecosystem, for instance, little land is available for building renewable-energy systems. Other locations face challenges because regulatory frameworks are still nascent.

If semiconductor companies in the United States or other countries with relatively high production costs can rely entirely on renewable sources, their energy costs could be two to four times lower than those in many Asian countries. This decrease might help offset some of their other expenses. Eventually, fabs in locations with little renewable energy might purchase it from other countries, which could raise overall energy costs above current rates. Singapore, for instance, wants to import 4 gigawatts of low-carbon electricity—equivalent to about 30 percent of its electricity supply—from neighboring countries by 2035. 4 “Regional power grids,” Energy Market Authority, Government of Singapore, last updated December 18, 2023.

Semiconductor fabs: Construction challenges in the United States

The European Union and the United States have increased the subsidies offered to semiconductor companies over the past few years. In another big shift, some countries without strong semiconductor ecosystems are actively trying to encourage the growth of such ecosystems within their borders. India and Spain are among the countries that have announced new programs over the past 12 to 18 months; these programs are designed to attract semiconductor investment and could have a major impact on site selection for new fabs.

The subsidies offered today are often higher than they were in the past and may include new incentives. For instance, subsidies in the United States have historically involved state and local programs, such as property or sales tax abatements, but policy shifts have expanded the potential benefits. Consider some recent government-sponsored efforts to reshore high-tech manufacturing:

• United States. Currently, the United States only manufactures about 12 percent of the world’s chips, and none are the most advanced varieties. The CHIPS and Science Act allocates over $50 billion for direct funding, federal loans, and loan guarantees designed to expand American semiconductor research and manufacturing. If successful, it would reduce dependence on foreign suppliers.
• European Union. Member countries have agreed to provide $47 billion in public funding aimed at doubling the European Union’s share of global chip output to 20 percent by 2030.
• Japan. This country only has a 10 percent share of the global semiconductor market, down from about 50 percent in the 1980s. The Japanese government has announced $6.8 billion in public investment to expand domestic semiconductor production.

The increased subsidies have important implications because expansion is so costly. (The average cost of constructing and equipping a new fab is approaching $10 billion and could exceed that in some cases.) A recent McKinsey analysis reveals that subsidy levels have a greater impact than location on reducing the payback period for fab investments (Exhibit 3). For instance, a subsidy equal to 45 percent of the required investment will reduce the payback period to 6.5 years, compared with 10.0 years for unsubsidized facilities.

A recent McKinsey analysis reveals that subsidy levels have a greater impact than location on reducing the payback period for fab investments.

One downside to increased subsidies: they are raising the cost of entry for regions that want to attract investment from semiconductor companies, and the hurdles could become even higher if they continue to rise. Regions that have historically had a significant semiconductor presence could be at the greatest disadvantage.

The power of strong, local ecosystems

Semiconductor companies are not the only group that stands to gain from greenfield expansion, especially if it helps countries create ecosystems similar to Hsinchu Science Park. Such developments can offer broad rewards for regional economies, because semiconductors enable growth in a variety of realms. For example, they are essential to the growth of the Internet of Things, which is expected to have a global market worth of $4.4 trillion by 2030, and the robotics market, which is expected to be valued at $120.0 billion. If a region or country has many technology companies , a strong local supply of semiconductors could help them thrive, resulting in more jobs and a stronger regional economy.

If a region or country has many technology companies, a strong local supply of semiconductors could help them thrive, resulting in more jobs and a stronger regional economy.

Economic data clearly show the benefits of nurturing the semiconductor industry. It is the second-most-profitable industry in the world and thus has a major impact on GDP. 5 Based on R&D spending as a percentage of sales. It also accounts for the second-highest amount of R&D spending, thus contributing to the creation of many highly skilled jobs. 6 Long-term implied economic profit based on July 21, 2022, market valuations from the EU Industrial R&D Investment Scoreboard and IC Insights. Finally, the semiconductor industry also has strong economic multipliers, with investments estimated to increase its current value to GDP by threefold within six years. Employment multipliers are also strong, with every new job within the semiconductor industry expected to sustain over five new jobs in other industries.

Governments and companies could foster ecosystem development if they consider working together and establishing joint goals. But such “competitive cooperation,” as some semiconductor companies’ executives call it, is challenging in the best of times and even more so in these uncertain days, where agendas, goals, and long-term plans can be subject to change. Can these actors collaborate on developing an agenda and shared goals? Can appropriate governance controls be installed to resolve potential conflicts and remain in compliance with all local laws? Are sufficient supply chain protections and skilled labor available and willing to be deployed together? What mutual efforts are needed to build a capable workforce and ensure that the necessary infrastructure is available?

These are hard questions. Nevertheless, committed companies and countries that successfully address them may foster the development of major semiconductor ecosystems that deliver returns that would far exceed those associated with a single new semiconductor company. In other words, the resulting juice may justify the squeeze of the additional effort.

Within the semiconductor industry, the macroeconomic sands are shifting. The demand outlook is exciting, geopolitical dynamics are changing, decarbonization is increasingly at the forefront, and countries are offering unprecedented incentives for greenfield investment. The emerging opportunities will help both incumbents and new companies that want to enter the fray. In all cases, subsidies, sustainability, and supply chain security will be among the most important considerations when selecting a location for greenfield building or expansion. If companies, governments, and other stakeholders successfully cooperate to create new semiconductor ecosystems, the advantages will extend far beyond individual countries or businesses. The entire industry—and the world as a whole—could benefit from the innovations that emerge.

Ondrej Burkacky is a senior partner in McKinsey’s Munich office, Matteo Mancini is a senior partner in the Riyadh office, Mark Patel is a senior partner in the Bay Area office, Giulietta Poltronieri is a partner in the Milan office, and Taylor Roundtree is an associate partner in the Atlanta office.

The authors would like to thank Sebastian Göke, Sean Planchard, and Ricardo Reina for their contributions to this article.

This article was edited by Eileen Hannigan, a senior editor in the Boston office.

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Ukraine war latest: Russia says it is considering nuclear shift - and tells West it is 'playing with fire'; US leads drills after North Korea warhead test

A senior Russian diplomat says Putin is reviewing the country's nuclear doctrine - and warns the West it is "playing with fire". Meanwhile, a Russian navy missile cruiser carries out drills in the Mediterranean. Listen to a Sky News podcast on Putin and North Korea while you scroll.

Friday 28 June 2024 08:56, UK

• US warned of 'dangerous illusions' as Russia mulls change in nuclear stance
• EU signs security agreement with Ukraine in Brussels
• Ukraine receives latest EU financial support package worth £1.6bn
• N Korea tests multiple warhead missile - as US leads drills after Putin-Kim pact
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We're pausing our live coverage of the war in Ukraine for this evening.

Scroll through below to catch up on the latest developments.

Two people have been killed and two more are wounded as a result of Russian shelling in Ukraine's eastern Donetsk region, an official has said.

Vadym Filashkin, head of the regional military administration, said Russian forces struck the centre of Kurakhove city, killing a woman and a 40-year-old man.

Two injured people were taken to hospital, he said.

He added that the extent of the damage in the attack was being assessed.

Volodymyr Zelenskyy and Hungarian Prime Minister Viktor Orban had a seemingly lively chat ahead of a meeting of European leaders in Brussels today.

It's not known what that the two men discussed - but relations between Budapest and Kyiv have become more strained since the Russian invasion in 2022.

Hungary is Russia's closest ally in the EU and Mr Orban has maintained a friendship with Vladimir Putin while criticising the EU's strategy on Ukraine.

In December, Mr Orban blocked a €50bn aid package for Ukraine in a move that frustrated other EU leaders. He lifted the veto several months later.

Two people have been injured in a Russian drone attack on southern Ukraine, an official has said.

The Kherson regional administration said Russian forces launched an attack on the village of Novodmytrivka, leaving a 66-year-old man and 71-year-old woman hurt.

Both have blast injuries and have been taken to hospital for treatment, it said on Telegram.

The US, Israel and Ukraine are all in talks to provide Ukraine with up to eight Patriot air defence systems, according to the Financial Times.

Volodymyr Zelenskyy has repeatedly called for NATO members to send his country the US-made Patriot systems as it battles intensifying Russian attacks.

The FT said the deal would likely involve Israel first sending the systems it plans to retire to the US, before they are handed over to Kyiv.

Sources with knowledge of the negotiations told the paper the outlines of the deal have been discussed between ministers and senior officials from each of the three countries.

Mr Zelenskyy said in May that Kyiv urgently needed at least seven more Patriot missile systems to ward off Russian strikes against its power grid, civilian areas and military targets.

Pictures have emerged this evening of the aftermath of Russia's latest airstrike on the northeastern Ukrainian region of Kharkiv.

Emergency services said earlier that five people were injured and buildings were damaged in the attack (see 17.55 post).

Russian forces launched an assault on a new front in Kharkiv in May, after months of fighting focused on the east.

Ukrainian troops have repelled Russian forces from a neighbourhood in the frontline town of Chasiv Yar, a Ukrainian military official has said.

Nazar Voloshin, a spokesman for the Khortytsia operational-strategic group, told the Interfax-Ukraine news agency that Russian forces had been pushed out of the Kanal neighborhood in the east of the town.

Mr Voloshin claimed Moscow's forces were not slowing down in their push to break through in Chasiv Yar, and said two assault operations were ongoing.

"Ukrainian defenders reliably hold the defence in this area and give a decent rebuff to the Russian aggressor," he told the agency.

For context: Chasiv Yar, a strategically-important town in the eastern Donetsk region, has long been a Russian target.

It has been pummelled by Russian air, artillery and drone strikes for months now, as Moscow views the town as a gateway to launch direct offensives against several Ukrainian "fortress cities".

Chasiv Yar had a pre-war population of more than 12,000, but now only a few hundred residents remain.

Volodymyr Zelenskyy has urged EU leaders to make good on their promises to provide his country with military aid after the bloc signed a security agreement underlining its support for Kyiv in the long term.

"Fulfilment of every promise is important, not only in terms of protecting lives but also to destroy the Russian illusion that they will achieve something by war," he said at the summit in Brussels today.

The Ukrainian president thanked countries that have so far promised equipment and arms aid, but pointed out that they were "needed urgently on the battlefield".

He also urged more help on "the urgent things - air defence, that is one".

The EU-Ukraine security agreement entrenches the EU's commitment to help Ukraine in nine areas of security and defence policy - including arms deliveries, military training, defence industry cooperation and demining,

In essence, it encapsulates what the 27-nation bloc has been doing for the country since the start of the war.

But the EU has made a specific commitment to the "predictable, efficient, sustainable and long-term provision of military equipment" for Ukraine.

Kyiv in return has promised to uphold European values and continue on its reform path in preparation to join the EU.

Five people have been injured in Russian airstrikes in Ukraine's northeastern Kharkiv region, according to emergency services.

The State Emergency Service of Ukraine said the strikes hit a residential area of the region, partially destroying one building and damaging others - including a school - as well as cars.

Crews at the scene said five people were hurt.

The windows and gates of the local fire station were also damaged, the emergency service said.

While the apparent gains made by Russia during its spring offensive in Kharkiv were the focus of much of the news coverage of the way in May, a new report indicates any progress made by Vladimir Putin's troops came at a significant cost.

According to UK and other Western intelligence agency sources cited by the New York Times, more than 1,000 Russian soldiers were injured or killed each day last month.

However, the newspaper also cites US officials as saying Moscow is continuing to recruit between 25,000 and 30,000 new soldiers a month - roughly as many as it is losing from the battlefield.

American officials told the outlet that Russia achieved a critical objective of Mr Putin in creating a buffer zone along the border to make it more difficult for the Ukrainians to strike into the country.

But, the Western officials said, this did not threaten Kharkiv and was ultimately stopped by Ukrainian forces.

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