James Dyson, the British inventor famed for revolutionizing vacuum cleaner technology and a prominent supporter of Brexit, sparked considerable debate when he decided to relocate his company’s headquarters to Singapore. This move, announced in 2019, immediately raised questions about Dyson’s manufacturing origins and global strategy. While CEO Jim Rowan stated the relocation was “nothing to do with Brexit or tax,” understanding Dyson’s manufacturing locations requires a deeper look into its global operations and market focus. So, Where Is Dyson Made and why did this British icon shift its base to Asia?
Dyson’s journey away from British manufacturing began long before Brexit. As early as 2002, Dyson made a significant shift by moving all of its manufacturing operations from the United Kingdom to Malaysia. This pivotal decision marked the start of Dyson’s increasing focus on Asian production and markets. Today, Dyson’s manufacturing footprint extends across several Asian countries, including Singapore, China, and the Philippines. These locations are not just assembly lines; they represent a strategic network deeply integrated into Dyson’s global ambitions.
The decision to establish a headquarters in Singapore, therefore, wasn’t a sudden departure but rather a strategic culmination of Dyson’s eastward shift. While the UK corporation tax rate is slightly higher than Singapore’s (19% vs. 17%), tax benefits were likely not the primary motivator. For a global company like Dyson, factors beyond Brexit and taxes played a more crucial role. The real drivers behind Dyson’s Singapore move are intrinsically linked to market access and growth potential in Asia.
Asia has become Dyson’s most critical market. By 2017, Dyson’s turnover had surged by 40% to £3.5 billion, with the Asian market contributing over 70% of this remarkable growth. This explosive growth is attributed to the burgeoning middle and upper classes in Asia, who are increasingly drawn to Dyson’s innovative and high-quality products. James Dyson himself has acknowledged the pivotal role of Asian consumers in the company’s success.
Singapore itself has been a strategic hub for Dyson for many years. Dyson initiated motor manufacturing in Singapore in 2012, followed by the establishment of a Research and Development (R&D) lab in 2017. Significantly, in October 2018, Dyson unveiled plans to manufacture its electric vehicles in Singapore, slated for production in 2021. This decision was driven by Singapore’s advantageous access to supply chains, a skilled talent pool, and, crucially, proximity to key markets.
Electric car stock by country in 2017, highlighting China’s dominance as a key market influencing Dyson’s electric vehicle strategy in Singapore.
China stands out as the world’s largest electric car market, accounting for 40% of global electric vehicle stock in 2017. Singapore’s free trade agreement with China provides Dyson with tariff-free export opportunities for its electric vehicles manufactured in Singapore. This strategic advantage further solidifies the rationale behind Dyson’s deepened presence in Singapore.
Dyson’s strategic relocation reflects a combination of market-seeking and asset-seeking motivations. It’s less about escaping Brexit repercussions and more about proactively seizing the immense opportunities that the burgeoning Asian market presents. By positioning its headquarters and manufacturing closer to its primary consumers and key supply chains, Dyson is strategically aligning itself for future growth and expansion in the global landscape.
While the move to electric vehicles and the deepened commitment to Singapore carry inherent risks, Dyson’s ambition for growth remains undeniable. Electric cars represent a significant diversification from Dyson’s traditional product lines, requiring different expertise and posing challenges in a competitive market dominated by established players like Tesla and Toyota. Whether an R&D base in Singapore will be sufficient to navigate these complexities remains to be seen.
In conclusion, where is Dyson made is a question with a multifaceted answer. While Dyson’s roots are British, its manufacturing and strategic focus are firmly planted in Asia. From manufacturing facilities in Malaysia, China, and the Philippines to its headquarters and electric vehicle production in Singapore, Dyson’s global footprint is strategically centered in Asia to capitalize on market growth and opportunities. The relocation to Singapore underscores a decisive business strategy aimed at long-term global success, driven by market dynamics rather than political factors like Brexit.
