Know Your Enemy, Yourself – and the Perfect 3PL Location(s)

Ancient Wisdom from Sun Tzu Still Applies

Sun Tzu has an old saying about knowing your enemy – and yourself. Knowing both, and how that knowledge affects subsequent events, can come in handy when deciding where to locate your 3PLs (third-party logistics companies).

Believe it or not, all those things are tied together.

You see, the U.S. government launched a public-private manufacturing initiative in 2014. China almost immediately responded with its own plan detailing its goals for 2025 – which just happens to be this year.

To some extent, both governments had similar aspirations. According to the NIST Office of Advanced Manufacturing, the countries aimed for manufacturing innovation and competitiveness. Policymakers also wanted to develop a degree of self-sufficiency for their respective countries.

China has succeeded far more than the United States. But the Manufacturing USA Institutes launched in 2014 have changed the landscape. And the U.S. is continuing to address the gap with China through industrial policy, including the CHIPS Act. Knowing how those moves have changed the landscape and anticipating future changes can yield the following insights:

1. Businesses in various sectors can decide where they need 3PL services.
2. 3PL companies who want to serve certain sectors can decide where they want to operate.

But first, let’s get back to that ancient Chinese general and philosopher, Sun Tzu. Who may or may not have existed – Wikipedia is uncertain.

3PL Victory Begins with Awareness: Sun Tzu’s Strategic Wisdom

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, you will suffer a defeat for every victory gained. And if you know neither the enemy nor yourself, you will succumb in every battle.”

– Sun Tzu, “The Art of War,” Chapter 3: “Attack by Stratagem”

OK, I remember when business leaders resurrected Sun Tzu’s “The Art of War” decades ago. They started applying the book’s sayings to business strategy.

In a way, it was all kind of overwrought. Business leaders shouldn’t be looking for bloodshed. We’re not trying to crush the enemy, roll over territory and slaughter the opposition.

Instead, we are looking for competitive advantage and profitable growth. But yes, studying Sun Tzu can help.

“Knowing the enemy” means you should understand where your risks lie and where your competitors are headed. In business, that includes knowing where governments are investing, where that investment is concentrating talent and where that investment is helping form production ecosystems.

“Knowing yourself” means knowing your company’s strengths, your sector’s direction and the supply chain operations to support that journey.

Together, this knowledge translates to competitive advantage. But without both, you’re flying blind. That’s how companies end up with 3PLs in the wrong locations, mismatched capabilities or underwhelming logistics operations. And that’s not a path to profitable growth.

A Global Manufacturing Scorecard

The United States created the Manufacturing USA Institutes in 2014 to regain its edge in advanced manufacturing. These institutes bring together companies, universities and stakeholders to test new tech, train workers and reduce the risk of innovation.

China’s response came fast – and massive. The “Made in China 2025” plan, launched the following year, set out to dominate 10 strategic industries. And China backed it up with action.

By early 2025, the country had 33 national MICs operating. They say MIC stands for Manufacturing Innovation Center, but I say it also stands for Made in China. Either way, China is well on its way to 40 MICs, its stated goal.

These MICs have transformed China into the world’s high-tech powerhouse. According to the NIST report, in 1980 the U.S. produced 40% of global high-tech goods. Today, that number has plummeted to 18%. China, meanwhile, produces nearly 30% of the world’s total manufacturing output.

The United States is responding. The 2022 CHIPS Act authorizes $280 billion in new spending over the next few years, including $52.7 billion for the semiconductor industry.

Companies are building new wafer fabrication plants in several states. In fact, according to the Semiconductor Industry Association, the sector has planned more than 100 projects since 2020. Total private investment will top more than half a trillion dollars.

All that has led to what I call seven “MIAs.” Now, MIA doesn’t stand for missing in action, despite what some say about U.S. manufacturing. It stands for “Made in America.”

Yes, the U.S. needs to continue working on self-sufficiency in critical industries. And these seven MIA hubs of excellence are great starts. Knowing all that can give you insights.

That knowledge can tell 3PLs where added services are needed. And if you’re in one or more of these MIA sectors, you know where you need logistics partners. Because those seven MIAs will lure more investment, more employment and the need to move more materials, components and products.

The Seven Hubs of Advanced American Manufacturing

Let’s look at the seven MIA sectors. If you want to match your 3PL capabilities to America’s re-emerging manufacturing might, here’s where to start:

• Semiconductors: Phoenix, Austin, Columbus (Ohio)
• Pharmaceuticals: Raleigh-Durham (North Carolina), Boston, New Jersey
• Advanced Materials: San Jose (California), Columbus (Indiana), Pittsburgh
• Energy: Houston, Phoenix, Detroit
• Infrastructure: Dallas, Chicago, Atlanta
• High Tech: Silicon Valley (California), Seattle, Austin
• Automated Manufacturing: Detroit, Pittsburgh, Chicago

Each location is a cluster of talent, innovation and investment.

So Where Do You Put Your 3PLs?

That question came up during a recent interview. The answer, of course, is that like most things in business, it depends.

If you’re dealing in apparel or footwear, you still need to stay close to the seaports. Other manufacturing sectors will never be returning to the U.S. – no matter what the politicians say.

But if you’re working with semiconductors, you’d better be thinking about Phoenix, Austin and Columbus. Those cities are building the future.

Automated manufacturing? Pick Detroit, Pittsburgh and Chicago – nowhere near the ocean. In fact, those are Rust Belt locations. I find it kind of cool that the old Rust Belt is becoming the advanced manufacturing belt.

Detroit is a leader in automation and robotics, as well as energy. Pittsburgh is a rising star in AI-driven manufacturing and advanced materials. Chicago’s infrastructure and automated manufacturing strength lies in integration and systems engineering.

I thought it was interesting that Raleigh-Durham, my home for decades, is strong in biotech and pharmaceutical research. Boston is a leading life science hub and has many major pharmaceutical companies. And New Jersey’s regulatory infrastructure and big pharma footprint make it a smart pick, too.

And I’ll admit – I did a double take at Columbus, Indiana. But I cleared up that surprise with a little research. The area has an Advanced Manufacturing Center of Excellence, major engineering talent and significant employment in the sector.

So, as you can see, each of the three locations under each of the “MIAs” has a strong reason to be there.

Know Your Enemy, Yourself – and Where to Build.

At Tompkins Ventures, we know ourselves. We know our network of hundreds of partners worldwide. We also know our enemy: the wrong fit. The wrong location. The wrong 3PL.

That’s why we’ve built the tools and strategies to help you navigate the new manufacturing map. Whether you need help with 3PL strategy, or just want to find the right partners, we can match you with exactly what you need.

Because in a world of MIAs and MICs, you need to know more than just your own company. You need to know the battlefield. Only then can you select the right location, the right transportation services, the best way to reduce delivery times for improved customer satisfaction and more. Only then can you win the logistics war (without bloodshed, of course.)

Let’s find the perfect 3PL fit – together.

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