Given the fact that it is much cheaper and easier to manufacture items in a developing country rather than in the United States, it is not hard to see why many companies opt to outsource their manufacturing. However, despite the fact that there are many outsourcing destinations to pick from, China remains the most popular overseas manufacturing destination for a wide range of companies. Following are three reasons why outsourcing manufacturing to China is better than outsourcing to other countries in Asia or Africa.
Rising wages and transportation costs have made manufacturing in China more expensive than it was in years past. Even so, designing and manufacturing items in China is, in many cases, much cheaper than doing so in the United States. What is more, the fact that American businesses with thirty or more full time employees will soon have to provide health insurance means that it is quite likely that manufacturing in China will once again gain in popularity.
There are a number of other countries with lower manufacturing costs than China. However, the infrastructure in these countries is not as advanced as it is in China, which means that production can easily be delayed due to power cuts, plumbing problems, flooding and/or other issues. What is more, it is hard to find a country in Asia that offers the same political stability that China has. A business that outsources its manufacturing to China need not wonder whether changes in national laws and/or government will force a plant to shut down.
Another factor to consider is that China has stable supply lines and export lines. There is almost no risk of manufacturing being delayed due to lack of parts or raw materials.
Experience and Training
Many items are quite difficult to manufacture and it is not uncommon for businesses that outsource manufacturing to need to invest time and money in training foreign employees to do a job right. However, this need is not as great in China as it is in other countries. Because China has been such a popular overseas manufacturing destination for so long, there are already many companies on the ground that provide training to employees who are hired to manufacture foreign goods. No matter what type of item needs to be created, it is relatively easy to find an experienced manufacturer who can take on the task and ensure the job will be done properly.
Outsourcing production to another country is no small matter. It is a decision that requires a great deal of research to ensure that costs are kept low while the quality level of the product in question remains the same. However, any corporate entity that has already decided to outsource some or all of its manufacturing to a developing country would be hard pressed to find a better destination than China. China’s stable infrastructure, abundant resources, relatively low costs and trained, experienced workers make it an ideal manufacturing location for items ranging from clothing to electronic appliances to accessories.
Let the overseas manufacturing experts at ITI show you why outsourcing to China may be the best decision you can make for your business. Contact us today!