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.
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.