Should I Outsource My Manufacturing?

Should I Outsource My Manufacturing?

Whether your company produces sporting goods, household products, or automotive accessories, determining how and where to complete manufacturing operations is critical to the success of your business. If you haven’t considered outsourcing already, we strongly advise you to do so. When you outsource your manufacturing and fabrication needs, you’ll likely end up with a reduce in labor costs, among other benefits.

At United Global Sourcing, we’re proud to provide turnkey solutions for your manufacturing and fabrication needs. We understand how challenging it can be to bring an idea or product to life, which is why we also specialize in various areas of supply chain management. We can help you find the best overseas manufacturing company for your needs and budget, and we always keep communication at the forefront of our relationships. Unlike other companies who will simply connect you with a manufacturer and leave you out to dry, we take pride in providing our customers with a 24-hour communication cycle. This helps us to quickly and efficiently identify any issues in the early assembly and production process. From product concept to design and production, we can help you navigate the murky waters of manufacturing. Call us today or get a free quote online!

 image of manufacturing assembly line

Why Do Companies Outsource To China?

Before we discuss why many companies choose to outsource their manufacturing needs to China, let’s talk about what outsourcing is. The U.S. Bureau of Labor Statistics defines outsourcing as the movement of work that was formerly conducted in-house, by employees paid directly by a company, to a different company. When a company outsources their manufacturing needs, whether it be for parts or components, they reap a variety of benefits.

Reduce Your Cost of Labor

As you may already know, the manufacturing industry can vary from country to country. People that work for manufacturing facilities in the United States tend to be compensated fairly well, largely due to union protections. According to new data that was released by the Department of Labor’s Bureau of Labor Statistics, the United States ranks 14th in the world in wages and compensation for manufacturing workers. Across the ocean, things are very different.

Bonnie Kavoussi, a writer for the Huffington Post, has said that, the average hourly wage for Chinese manufacturing workers is less than a tenth that of their average U.S. counterparts. This means that when you send a concept, idea, or product overseas for manufacturing, it will cost you a significantly less amount of money to have these items produced. Some articles say that the cost of labor in China may be lowered by up to 80% when compared to these same services in the United States!

Low labor costs are one of the biggest benefits of outsourcing your manufacturing and fabrication needs. With the right partnership, your labor costs can be performed at a fraction of the price, which can save you money when it comes time to start packaging and shipping your product.

Access The World’s Largest Economy

Did you know that more people live in China than anywhere else in the world? Over the last three decades, we’ve seen a tremendous boom in growth in China’s economy. While trying to asses China’s market can be very difficult to do on your own, when you have an outsourcing agreement in place with a manufacturer, that difficulty is significantly reduced. If you’re thinking about offering your invention or product to the people of China, developing a partnership with a well known manufacturing company can help. Nurturing these business relationships can produce a lifetime of results for your company.

Stay Close To Distributors

While there are plenty of distribution facilities in the United States, a large array of distributors have found themselves placing a flagship operation in China. Opening a distribution sector in China has become very appealing due to the close proximity of the goods that need to be shipped. If you’re thinking about outsourcing your manufacturing needs to China, it may be beneficial to look into local distributors there as well. Not only will this lower your overall capital costs, it will help your bottom line as well.

Focus On What You Do Best

Another reason that many companies choose to outsource manufacturing is so they can focus on other areas of the business they feel are valuable. When you opt to have your parts or components made at a local facility, you might find yourself spending a lot of time overseeing various manufacturing operations. This can take time away from other important parts of your day that may need your attention. On the other hand, when you hire a manufacturing company abroad, you can focus your attention on what you do best.

 image of manufacturing assembly line

Get Multidisciplinary Expertise

You’ve probably heard the old adage, two heads are better than one. The same is true for your manufacturing and fabrication efforts. If you have a truly innovative product, working with an experienced design and engineering team can make all the difference when you eventually bring your idea to life. Many overseas manufacturing companies specialize in a variety of manufacturing and fabrication processes, and choosing the right one is critical to the quality of your product.

Help Managing Your Timeline

Another major benefit of outsourcing your manufacturing is the fact that you’ll have someone there to help you manage your project timeline. We can’t tell you how many projects we’ve seen fall victim to missed or poorly managed timelines. Outsourcing partnerships offer a superior advantage because the engineering firm not only assumes the project timeline responsibilities, but they can also assign and manage resources.

If you’re struggling to determine whether or not you could benefit from an outsourced manufacturer, there are a few questions you can ask yourself.

  • Are my internal resources being stretched too thin?
  • When it comes to product launches, are yours often delayed?
  • Is it difficult for your company to keep up with the competition in terms of new product development?
  • Is there too much on your plate to have to worry about manufacturing?

If you answered yes to any of the questions above, it may be time to start looking for an overseas manufacturing partner.

United Global Sourcing: Your Partner In Overseas Manufacturing

At United Global Sourcing, we understand how confusing and daunting the manufacturing process can be. If you’ve decided you’d like to outsource your manufacturing efforts and you’re not sure where to turn, we can help. Our company specializes in offering turnkey solutions for your manufacturing and fabrication needs, and we can help pair you with the perfect manufacturer overseas. We’ll help you streamline your production costs, while giving you a high quality product that you can be proud of. Contact us today to learn more!