US Manufacturing

Can Electronic Manufacturing Be Affordable in the United States?

by Conelec Team Conelec Team No Comments

For most companies, and most headlines, it has become trendy to look overseas to produce affordable products. The perception being that you can’t create a product in the States at an affordable rate or match the production capabilities of say, China. Conelec is out to prove that you can create an affordable product Stateside and not only match quality, but exceed it. 

But Why the United States?

Lower energy costs, increased productivity and automation, growing domestic markets, and shorter supply chains are shifting trends. Not to mention producing your product in the States generally makes it easier to walk the factory floor, watch the manufacturing process and inspect quality on each run. For example, with Conelec, our managers are always available to discuss your products. Customer service is key and because to us, everything matters.

Shorter Supply Chains

There’s a lot of factors that generally assumed when manufacturing overseas – one of those is supply chains. The added cost of shipping, tariffs and of course, the duties all add to the bottom-line. Extra factors such as managing those complex and lengthy supply chains for those overseas companies – is, to put it lightly, difficult. 

The path of least resistance makes sense, when your product is new. There’s always issues that come up – which can be design or component issues – say a possible defect? US companies can get products in consumers’ hands quicker. You can get replenished stocks quicker. You can make design changes quicker. Don’t just rate labor rates – make sure your analysis factors in worker productivity, transit costs, logistical issues, time-to-market and other expenses that you may have in certain scenarios. 

One Takeaway

Deciding where to manufacture your products depends on a multitude of factors. But assuming China is the cheapest and most effective manufacturing solution is an antiquated approach to operating a business today. If there’s one takeaway I want readers to get out of this article, it is this: Do your research and question everything you think you know about manufacturing, especially for new and small business.

Who Should You Trust For Your Electronic Assembly Needs?

by Conelec Team Conelec Team No Comments

Finding your contractor manufacturer is tough. We always recommend ourselves but we understand you’re going to explore options. Getting different quotes, meeting with the engineers, visiting the plant and learning about the manufacturing capabilities. It’s all super time-consuming. We decided to make a quick list for you to take with you during your search process.

Trusting

The first introduction to the company should give you a warm feeling. Is this a company I can call when there’s an emergency? Do I know the names of the people directly working on my project? Will I be able to see the assembly if I decided to drop-by?

Getting answers to your top questions starts with the ability to trust.

Has Industry Experience

Startup companies are often quite enthusiastic about taking on new clients, and may even offer irresistibly low prices. It’s important to remember, though, that experience pays. You should always look for a business that has been handling electronic assembly for years. Don’t’ hesitate to ask your prospective contract manufacturer how long they have actually been in business, as well as what their hiring requirements are for their employees. Is their team comprised of seasoned veterans? This is always ideal.

Experience pays. In an industry with so much growth and changes in technology – you’ll want to partner with a company that has the experience to take you from prototype to full-production. If you scale, you need a company that can scale with you. Be sure to always ask your contract manufacturer how long they’ve been in business. You can even inquire about their hiring process, if you’d like to know how they handle quality control with new hires. How many seasoned engineers do they have? Ask way — and be sure to walk away with solid answers.

Is Based in America

Taking your business off shore isn’t a good idea for several reasons. First, you are reducing the amount of work that your company is producing for American laborers who are in need. Secondly, many overseas contract manufacturing businesses tend to make use of counterfeit components and parts. While this may not seem like that big of a deal at first glance, it can create big problems. If parts used aren’t up to US industry codes and requirements, you could be fined and forced to recall your products. A faulty unit as a result of counterfeit parts can also result in a lawsuit or harm to another person. It’s in your best interest to stick with an American company that adheres to a higher standard.

The dream is always to have your goods produced in the States. You want to drive to your manufacturer, talk to them during normal hours and know you can stamp your product with the prestigious, “Made in America.” The big part when deciding where to produce comes down to cost. We can’t speak on others, but at Conelec, we can compete with any overseas manufacturer when it comes to quality, cost and production. How? Well, it starts with equipment. Our Panasonic NPM-W is the absolute latest. We’re talking about some of the top electronics on the market are produced with it. Second, comes from our LEAN manufacturing principals to keep waste out and efficiency up. Third, comes down to experience. We know how to produce high-level assembly without sacrificing quality.

Well-Connected

Save money on the parts that you purchase without having to sacrifice quality or safety by finding a contract manufacturing company that has strongly established relationships with suppliers. This will ensure that you will always get the fairest and lowest prices possible for the components required for your boards.

We’re besties with our suppliers. Our team is always looking to get the fairest and lowest prices for our customers — and work to make sure that we’re always looking to help you cut costs. You already have a great product — allow us to make it a carefree manufacturing experience.

Standing Behind the Work

The contract manufacturer you choose should stand behind their work. A trustworthy company will offer fulfillment services, help you troubleshoot issues and look to help with any issues that may arise during ANY stage of production.

Finding YOUR contract manufacturer of course starts with a call. We hope you consider us for your production and know that once you’ve had a chance to see our facility, meet the team and learn about what makes us different, you’ll look no further than Conelec.

 

US Based Electronics Assembly: Why It’s Making a Comeback

by Conelec Team Conelec Team No Comments

We hear about it all the time. On tv, websites or on covers of newspapers in our grocery stores; manufacturing is nearly gone in the US. The perception is that overseas, especially in places like China, it’s just cheaper to produce your goods. Lower wages, more workers and cheaper cost of goods. BUT, that’s not the case anymore. Let’s go over some myths you may have heard recently about electronic manufacturing and why Conelec can compete with anyone when it comes to price and quality.

 

Myth: All US-based companies are moving manufacturing overseas. 

This may have been more true 10 years ago but with recent reports talking about the growing number of companies expanding their capabilities stateside:

U.S. firms that have long operated abroad are making similar moves: Caterpillar, GE and Ford are among those that have announced that they’re shifting some manufacturing operations back to the United States. And economists are signaling the beginning of a major renaissances for American manufacturing. – Washington Post

What does this mean for you? IF you were considering producing a product stateside, you can now feel reassured that the product can be produced at an affordable rate and will be more readily available for inventory purposes.

 

Myth: Workers are way cheaper in China than the U.S. 

Back in 2006, the gap between workers was about $17 dollars. Pretty substantial amount. But as of 2015, the gap has shrunk to $7 bucks. This mostly from the increased wealth of China and the demand of workers for more money. Dan North, an economist talks about companies thought process with the lower gap between countries:

If you’re a U.S. company and the advantage is only $7 per hour, suddenly it may be worth staying home,” North says. “If I stay here, I have lower inventory costs, lower transportation costs. I’m closer to my market, I can have higher-quality production and I can keep my technology.

There’s a lot of things that go into making a decision on where to produce goods but quality should always be on your mind. Being able to walk the plant producing your goods should always be on your mind. Being able to pull inventory affordably off the shelf should always be available. You never know what your demand forecast can change to and having some stateside (hi!) can help save you money and save you headaches.

 

Myth: It’s cheaper to produce goods in Europe or Japan. 

Another case of maybe in the past but many companies are moving their operations to the States for cost-cutting. IKEA just opened up a facility in Virginia to cut shipping costs. Nissan, Honda, and Toyota are ramping up their exports.

 

Myth: The US is dominated by big manufacturing companies that drive costs up.

In the past, companies like Dupont would handle every aspect of production – but now with so many smaller companies springing up and having success. A compete landscape is better for everyone. Especially those looking to produce their goods stateside.


We want to be your electronic manufacturer. Come for a tour of our facility. We know once you see it, meet our team and hear our strategy to produce the highest quality product for your business— you’ll choose us for all your needs. Call us today: 386-873-3800 or email: info@conelec.net.