In 2025, global tariff pressures and geopolitical fragmentation have accelerated a shift in supply chain strategy. Brands across industries are reassessing supply chain concentration risk, landed cost volatility, and long-term operational resilience. Regional diversification is no longer optional — it is a strategic imperative.

As a forward-thinking company, OSM Group anticipated the importance of establishing manufacturing facilities in multiple locations to provide flexible production solutions. As part of our long-term dual-region manufacturing strategy, we established our manufacturing facility in the Philippines in 2021. In July 2025, we initiated an expansion to further support our customers by providing an alternative to single-region sourcing for risk diversification while strengthening production flexibility.

The expansion is scheduled for completion in March 2026.

Expanding Capacity to Support Growth and Complexity

To meet the growing market demand across engineered soft goods, portable audio, and hybrid electronics-integrated products, we have strategically expanded several key functional areas, including:

Warehouse

Expanded storage capacity and improved inventory control to support safety stock strategies and buffer against supply volatility—minimizing the risk of material shortages for our customers’ projects.

Material Preparation Area

This expanded space is dedicated to preparing materials before they enter the main production line, ensuring everything is fully ready for efficient, high-quality manufacturing.

Production Floor

Additional automation and manual production lines to optimize high-volume efficiency while maintaining flexibility for complex product manufacturing across our customers’ programs.

Laboratory Area

Dedicated quality assurance and product validation space to strengthen reliability control for our customers’ programs.

The newly expanded space enables us to nearly double our output capacity which significantly strengthens our on-time delivery performance and supports scalable growth for our customers.

Watch our new facility tour video to see how our upgraded facility ensures flexible, reliable, and cost-effective production for your upcoming launches:

Investments for Stability and Speed

In parallel with physical expansion, we have invested in advanced manufacturing capabilities aligned with industry trends toward smart and reliable factory transformation. These upgrades enhance process consistency, production efficiency, and operational predictability. Key additions include:

Machining Workshop for Tooling and Fixtures

Enables shorter tooling lead times, reduces reliance on external suppliers, and improves responsiveness for design changes, repairs, and production adjustments — helping our customer reduce delays and control costs.

Auto Edge Painting

Enhances manufacturing efficiency for our customers’ programs while ensuring consistent product quality, reducing variability, and minimizing risks associated with skilled labour dependency.

Auto Nesting and Cutting

Increases production efficiency and output capacity to support our customers’ volume ramp-up, while optimizing material utilization to improve cost competitiveness across their product portfolio.

With predictive workflow management, real-time data monitoring, and digital process controls, we reduce downtime and minimize production variability.

A Strategic Step Toward Supply Chain Diversification

Supply chain diversification decisions made today will shape cost stability, operational flexibility, and launch reliability in 2026 and beyond.

With our expanded facility in the Philippines, complementing our China facility, we offer a balanced and resilient manufacturing footprint to support brands navigating tariff pressures and increasing product complexity.

In this video, Edwin Bermas, General Manager of Operations at OSM Manufacturing Philippines Corp., shares why working with a single supplier with integration capabilities can create real advantages for brands developing outdoor gear, portable audio, hearing protection, and other products that combine engineered soft goods with electronics:

Backed by this strengthened foundation, we offer a unique combination of technical precision and refined craftsmanship across a wide range of categories, including:

• Portable Audio e.g. Industrial and Consumer Headphones, ANC Headphones, Bluetooth Speakers, Radio Communication Systems
• Personal Protection e.g. Advanced Hearing Protection Solutions
• Hybrid solutions – engineered soft goods with integrated electronics e.g. diagnostic pads, tracking devices, laptop covers with integrated speakers, antenna
• Carry Solutions e.g. Travel Case, Carrying Laptop Bag, Backpack
• Specialised Sports Gear e.g. Weighted Training Vests, Hydration Packs and Functional Accessories

If you are evaluating manufacturing partners with expertise in engineered soft goods, portable audio, or hybrid electronics-integrated solutions, we welcome you to explore how our expanded capabilities can strengthen your next project.

Your next launch deserves a stable, scalable manufacturing foundation.

About OSM Group

OSM Group was founded in Sweden in 2004. With strategically located production facilities in China and the Philippines and an R&D hub in Stockholm, we support leading brands worldwide with expertise-driven and reliable manufacturing solutions. Our vision is to deliver exceptional and sustainable products that strengthen our customers’ market competitiveness and long-term success. By combining Scandinavian heritage with a culture rooted in integrity, collaboration, and continuous improvement, we are committed to building enduring relationships based on trust and mutual growth.

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