The right fit for growth: HARMAN's manufacturing facility takes shape in APAC

When HARMAN sought to expand its Asia-Pacific (APAC) presence beyond its existing facilities in China and India, the leading automotive electronics manufacturer needed a location where they could scale up production while diversifying their manufacturing footprint and optimising costs.

With that in mind, we assembled a dedicated One JLL team — combining expertise across supply chain network design, location strategy, and project management — to deliver an end-to-end solution for HARMAN’s facility in the Rojana Laemchabang Industrial Estate, Chonburi, Thailand. 

HARMAN’s ambitious five-year revenue growth plan fuelled their need for a new manufacturing facility focused on producing speakers and electronics, primarily for export to Japan and South Korea. 

Selecting the right location for the new facility was critical. Proximity to automotive manufacturers topped the list of priorities as it allowed HARMAN to leverage established supplier networks to source components locally, and to tap into a readily available pool of skilled talent.

Utilising data from various sources, our Logistics & Industrial team, alongside HARMAN, embarked on a comprehensive evaluation process to narrow the field from 10 to three top contenders before a final location was eventually selected.  

Joint field visits were arranged to assess potential land plots, hold discussions with developers, and analyse labour and utility costs across multiple sites in each of the three countries. 

Every detail was meticulously compared. For instance, Vietnam initially emerged as a frontrunner with slightly lower labour costs, but its projected wage inflation suggested they might become comparable to Thailand's in a few years. 

Ultimately, Thailand's mature automotive ecosystem, coupled with its political stability, attractive government incentives, and robust logistics infrastructure, made it the perfect fit for HARMAN’s new manufacturing facility. 

During the design phase, JLL facilitated intensive workshops with ESR in HARMAN's facilities in China for a critical purpose: gaining a deep understanding of the design and technical specifications required to manufacture the two distinct products, each with its own unique supply chain.