Israel is a unique and prosperous setting for many advanced manufacturing processes and companies, many of whom are renowned worldwide for their advanced products, advanced processes and advanced information technologies. The likes of Intel, TEVA, HP Indigo and Applied Materials ply manufacturing, research, development and marketing centers in Israel, and many more continue to express their interest in collaborations.

The concept of advanced manufacturing has undergone a rejuvenation in recent years with advanced technologies leading to radical changes in traditional manufacturing processes. This has included big data and cloud, which gradually become more accessible as their cost decreases; sensing systems and powerful processors that make production machines that are much more advanced and significantly less costly than in the past; additive manufacturing technologies that are becoming more widespread and common; industrial robots, with rapidly developing abilities and declining cost; and information technology (IT), enabling new models of collaboration.

Advanced manufacturing enables enterprises to become more efficient in many ways, such as allowing short-run production; manufacturing products with special features that were not possible before; rapid response to market needs; dramatic savings in manpower; and the ability to gather information and control manufacturing processes virtually, with no human intervention. The efficiency of such processes is so radical compared to traditional manufacturing, that businesses must implement advanced manufacturing processes in their plants if they want to maintain a leading position globally.

As such, the impact of advanced manufacturing is not only evidenced at individual plant level, but also at a global level. The distribution of added value among the various countries in the global value chain is expected to change dramatically thanks to these rapidly developing processes.

In recent times, it has become more common to see giant multinational companies bringing manufacturing back to developed countries. These industries – such as footwear and consumer electronics – are characterized by intense assembly processes that can now be conducted using advanced robots, additive manufacturing processes and IT technologies and sensors. As a result, countries such as China and Vietnam, which are a magnet for labor-intensive processes, might lose their distinct competitive advantage.

In the US, since 1975, average earnings in advanced industries have increased almost five times as fast as those in the overall economy. Furthermore, every new advanced industry job supports more than two other jobs, comparable to an average of one in the American economy.

The R&D Connection

A coordinated product development cycle, which closely ties the R&D process with the manufacturing process, perfectly suits the fast pace of advanced manufacturing technologies.

Over the years, many studies have highlighted the benefits of developing and designing a product in parallel with the manufacturing process, while manufacturers benefit from the close feedback and quick adjustments available in the coordinated process.

This process can only occur when the development teams and the manufacturing teams are located in close proximity and maintain a continuous relationship that includes the transition of workers and feedback between the two teams.

In Israel, this type of coordinated product development is highly stimulated by the physical proximity and the advanced abilities of the advanced industries.

For years, Israel’s vast R&D and hi-tech industries have pushed the Israeli economy and the manufacturing industry forward. The active Israeli industry-R&D cooperation constantly creates new relevant technologies that had, still have, and will most certainly have a great impact on Israeli manufacturing facilities and abilities. Israel offers the perfect combination of R&D and manufacturing – the best minds possible together with the most qualified workers, close proximity and highly interrelated industries all come together to create a unique possibility for advanced manufacturing.

Companies choose manufacturing sites based on their unique means and ends. Invest in Israel helps each one of them find its own path to growth, tailored perfectly to its needs. It doesn’t matter which industry you’re in, or what kind of product you manufacture. If you are looking for your next best investment, the manufacturing opportunities in Israel are endless.

Why Choose Israel?

Israel has one of the world’s best labor forces. The reasons for Israel’s highly skilled, highly educated and highly diligent human resources are rooted deep within the Israeli story and so they provide the basis for a very distinctive innovative spirit. This includes their entrepreneurial culture refined through the educational system and a cultural atmosphere that encourages excellence; military service which encapsulates all types of industries and fine-tunes their skills; and higher education, known for being innovative, high level and diverse.

Moreover, Israel’s strategic geographic location and highly stable economy have led to many types of Free Trade Agreements and other international agreements with many different countries and unions across the globe. Israel is an OECD member and is currently developing other bilateral agreements with leading global economies such as China, South Korea, India and more.

Israel has an abundance of industrial parks, some hi-tech oriented, other more disposed to traditional or advanced industrial factories, while the government offers a wide array of financial inducements, including capital grants; tax incentives, together with an innovation box – aimed at intellectual property (IP) based companies, in particular, technology companies; and employment grants.


In order to learn more about Israel’s vast manufacturing ecosystem, as well as learn how to reap the rewards of your investment, be sure to read over the following link:

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