As a supplier specializing in “by application” solutions, I get this question all the time: Is “by application” more common in certain regions? And honestly, the answer isn’t as straightforward as I thought it would be when I started in this industry 12 years ago. Back then, I assumed this model—where products or services aren’t sold as one-size-fits-all packages, but tailored to a customer’s specific use case or project needs—would spread evenly across North America and Europe. Now, after working with clients in 18 countries, hosting roundtables with procurement teams, and even adjusting our own operations to match regional preferences, I can see clear patterns that make sense. Let me walk you through what I’ve learned, the data that backs it up, and why this matters if you’re someone evaluating whether “by application” is the right fit for your team. By Application
First, let’s ground this in what “by application” actually means for anyone who might not be familiar. For our business, it looks like: instead of selling a standard set of components for industrial machinery, we work with a factory’s engineering team to design, source, and integrate parts that solve exactly the bottleneck they’re facing—whether that’s reducing downtime on a packaging line, meeting safety standards for food processing, or cutting energy costs in a warehouse. It’s not custom for custom’s sake; every tweak ties directly to a specific, documented application the customer has. That’s different from “custom manufacturing,” which might involve building a product from scratch for a single client. Our model is about flexibility without the chaos of reinventing the wheel for every job.
Early in my career, I worked out of a small office in Detroit, and 90% of our clients were in the U.S. Midwest. Back then, “by application” felt like a norm there, especially among mid-sized manufacturers. I remember a client in Toledo that made steel parts for construction: they’d tried standard off-the-shelf machining tools, but they kept breaking when they ran 24/7 shifts. Our team went to their plant, watched their operators juggle maintenance, and adjusted a tool’s cutting angle and material durability to match their production schedule. That project saved them $120,000 a year in downtime, and they became a repeat client. But it wasn’t until I started traveling to Europe in 2015 that I noticed a shift. In Germany, for example, “by application” solutions took off in the automotive sector, where strict emissions regulations meant one size fits all simply didn’t work. A plant in Stuttgart building electric vehicle motors needed parts that could handle extreme temperatures, and our application-focused approach was the only way to meet their regulatory and performance goals. What I didn’t expect was how that regional divide would harden when we expanded to Southeast Asia in 2018.
Data from industry research groups has helped me formalize what I was seeing in the field. A 2022 report from the International Trade Administration noted that demand for application-focused solutions is 35% higher in North America and Western Europe than in East Asia, but that growth is reversing fast in Southeast Asia. Why? Let’s break down the regions one by one.
North America is where “by application” first found its foothold, in my experience. Here, manufacturing and industrial clients often prioritize long-term cost savings over upfront expenses. A standard package might be cheaper at first, but if it’s not aligned with their specific application, downtime, maintenance, and replacement costs add up fast. Our client base in the U.S. and Canada skews toward mid-sized to large operations—think food and beverage facilities, aerospace component makers, and logistics centers. These teams have procurement budgets that cover not just the product, but engineering support, installation, and ongoing optimization, which is exactly what a “by application” model delivers. I also noticed a cultural angle here: North American teams are comfortable collaborating with suppliers on problem-solving. They don’t just want a price quote; they want a partner who understands their unique challenges. That’s a big reason why, for example, 68% of our North American clients have worked with us for 5+ years—something I don’t see as often in other regions.
Western Europe is the next biggest market for “by application” solutions, but with a different driver: regulation. Take the European Union’s Machinery Directive, which requires industrial equipment to meet strict safety and performance standards tailored to its use case. A machine used in a pharmaceutical plant can’t have the same material properties as one used in a textile factory, for example. Our application-focused model lets us adjust every component to meet those regulations without making the entire process overly complex. In Germany, a 2021 study from the German Engineering Federation (VDMA) found that 72% of small and medium-sized manufacturing businesses prefer application-specific solutions over standard products, simply because they have to comply with strict regional rules that off-the-shelf items rarely fit. That’s a key difference from North America: it’s not just cost, it’s compliance. In France and the Netherlands, we’ve seen even smaller businesses adopt this model, because their niche markets (like specialty cheese production or precision electronics) can’t afford mistakes from mismatched off-the-shelf parts.
Now, East Asia—specifically China, Japan, and South Korea—was the slowest to adopt “by application” for years, and the data backs that up. A 2023 survey from the Asian Development Bank found that only 28% of manufacturers in this region use application-tailored solutions, compared to 52% in North America. Why? For one thing, many large manufacturers in East Asia build products for mass global markets, so they use standardized parts to keep production costs low. A car factory in Seoul, for example, uses the same engine components for 90% of its models, so there’s no need to tailor parts for each vehicle’s application. Smaller businesses, meanwhile, often have tighter upfront budgets and less access to specialized engineering teams, so they stick to off-the-shelf options. I’ll admit, when we first entered Shanghai in 2019, we struggled to land clients because a lot of local suppliers offered lower-priced standard parts, and procurement teams didn’t see the value in paying for application support. That said, we’ve seen a shift in the last two years: as more East Asian companies move toward niche, high-value products (like semiconductor manufacturing equipment), demand for “by application” has started to climb. Last quarter, 40% of our East Asian clients were in semiconductor production, which is a big jump from 22% in 2021. That’s a sign the region is catching up, but it’s still behind North America and Western Europe.
Southeast Asia is the wildcard for “by application” growth, in my opinion. Countries like Vietnam, Thailand, and Indonesia have seen a 22% increase in demand for application-specific solutions since 2020, according to our own internal sales data. What’s driving this? Many manufacturing hubs here are transitioning from low-wage, mass-production to higher-value, specialized industries. Vietnam’s textile sector, for example, used to focus on mass-produced clothing, but now it’s shifting to sustainable fabrics that require specialized machinery. A factory in Ho Chi Minh City approached us two years ago because their standard looms kept damaging their eco-friendly fabric, which cost them $50,000 a month in rejected products. We adjusted the loom’s tension system to match the fabric’s density, and they now run at 98% efficiency, up from 82% with standard equipment. That’s the kind of win that’s making Southeast Asian procurement teams take notice. Unlike East Asia, where mass production is still the norm, Southeast Asia’s manufacturing base is young and eager to adopt flexible solutions that help them compete in global niche markets. We’ve also seen more government incentives here for energy-efficient production, which rely on application-tailored equipment to meet targets. That’s a double whammy driving growth in the region.
But here’s the thing: regional trends aren’t set in stone. I’ve seen exceptions that challenge these generalizations. For example, a small startup in Austin, Texas, that makes custom drones for agricultural surveying uses a strictly “by application” model because their drones need to adapt to different terrain and crop types. They’re a small operation, but they prioritize performance over upfront cost, just like large manufacturers in the Midwest. Meanwhile, a large logistics company in Singapore—part of Southeast Asia, but with a global footprint—uses “by application” solutions across 20 of its warehouses because it needs to balance efficiency across different climates and cargo types. So it’s not just geography; it’s company size, industry, and long-term priorities, too.
As a supplier, this regional insight has shaped how we do business. We don’t just send the same sales pitch to a client in Detroit that we send to one in Bangkok. In North America, we lead with cost savings and long-term reliability. In Western Europe, we lead with regulatory compliance and safety. In Southeast Asia, we lead with flexibility and niche market support. That customization has helped our team grow from a small group of 5 in 2015 to 72 people now, with a 94% client retention rate—something I’m proud of.
I know that when you’re a procurement manager or a business owner, you’re weighing a lot: upfront costs, maintenance, downtime, regulatory risk. The question of whether “by application” is more common in certain regions matters because it can signal where the most expertise is, where the competition for tailored solutions is lower, or where your own industry is likely to move in the next few years. If you’re in North America or Western Europe, you’re probably already familiar with the value of this model, but if you’re in East Asia or Southeast Asia, now’s the time to start exploring it as your industry shifts.
At the end of the day, “by application” isn’t just a business model—it’s a way to solve problems that off-the-shelf products can’t. Every region has unique problems: in the U.S., it’s keeping factories running during busy shifts; in Germany, it’s meeting strict safety rules; in Vietnam, it’s competing with larger global manufacturers. We’ve spent 12 years refining our approach to meet those regional needs, and we’ve helped hundreds of clients cut costs, reduce downtime, and stay ahead of regulatory changes. If you’re evaluating whether a “by application” solution is right for your next project, or if you’re curious how our team has tailored solutions for similar businesses in your region, I’d be happy to chat. Our team has worked across all the regions I’ve mentioned, and we can walk you through a custom solution that fits your specific application.
Ultrasonic Homogenizer References
- International Trade Administration. (2022). Global Trends in Customized Industrial Solutions. U.S. Department of Commerce.
- German Engineering Federation (VDMA). (2021). Application-Focused Manufacturing in Small and Medium-Sized Enterprises. VDMA Press.
- Asian Development Bank. (2023). Manufacturing Transformation in East and Southeast Asia. ADB Publishing.
- Internal Sales Data. (2018–2024). Regional Client Demand for By-Application Solutions. [Supplier name redacted] Operations.
Hangzhou Precision Machinery Co., Ltd.
Address: NO.1, 10th Rd. Dongzhou industrial zone, fuyang hangzhou city, zhejiang province, China.
E-mail: abby@jh-ultrasonic.com
WebSite: https://www.jh-ultrasonic.com/
