Likely because of the offshoring boom of the 90s and 2000s, there persists a belief that American-based manufacturing is too expensive to be worth considering - but nothing could be further from the truth. According to multiple studies into the matter, in the long term, costs associated with manufacturing in China and manufacturing in the USA are effectively at parity.
Moreover, American manufacturers have been hard at work updating their processes and competing on value rather than sheer cost. Sure, the up-front costs of a cut-rate overseas manufacturer will be lower than domestic... but that domestic manufacturer can offer plenty of services and long-term value that few, if any, overseas centers could hope to compete with.
When looking at costs across the entire lifespan of the product -not just its initial manufacturing- domestic contract electronic manufacturing services deliver a better product, happier customers, and a superior ROI.
Four More Reasons To Consider Reshoring In 2015
1 - Reshoring is going mainstream
What was once a trend largely among smaller businesses looking to get an edge over the competition has expanded to cover more and more major A-list businesses. Just last year, General Electric brought roughly 1,900 jobs back from China. And given that GE is well-known for its cost-cutting efforts, they're obviously not doing this solely for PR value.
The problems with offshore manufacturing are becoming increasingly well-known and, accordingly, companies are looking for better alternatives.
2 - Better infrastructure and equipment
China may be one of the leaders in overall manufacturing, but America is still tops in innovation and the adoption of new technology. Most of the factories in use in China were built 10-20 years ago, and haven't seen many updates, at least outside of the biggest names like Foxconn.
In the meantime, US manufacturers are continually investing in new manufacturing techniques, allowing them to offer products that are smaller, faster, or more rugged. When the market for electronics is so competitive, a company needs to be able to say their products are being made in cutting-edge facilities.
3 - Fully integrated product development
Modern US contract electronics manufacturing services do far more than simply build products to spec. They can be true partners, working with you every step of the way, from initial concept through multiple prototypes and into the final build. Testing and even focus-group sessions are also possibilities.
This can vastly accelerate the development of a product, when one company is handling its development throughout the process. The testing process, in particular, can quickly iron out the problems in a product before release, creating a product that garners great reviews right out of the gate.
4 - In-house technical support
Who could ever be more effective at providing post-sale support than the same facility which designed and manufactured the product? In-house support services have the benefit of the engineers' own expertise, as well as gaining insight from the testing reports previously generated.
In many cases, highly accurate failure rate predictions can be made. allowing them to precisely manufacture components based on likelihoods of failure. This allows better-targeted purchases, as well as reducing the chances of a production run having to be re-started due to a lack of spare parts.
ZenTech is one of America's premiere wholly domestic electronics manufacturers. Contact us to learn what US manufacturing can do for you.
