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IS MY PRODUCT RIGHT FOR OVERSEAS MANUFACTURING?
If you are currently manufacturing in the USA and are considering moving a part or all of your manufacturing overseas, you may be concerned about “what you don’t know you don’t know”.
Some companies have been manufacturing offshore for years. They have paid their dues and now are enjoying all of the benefits offshore manufacturing has to offer. Many have experienced nothing but trouble, while most others are somewhere in between.
Companies considering moving their production offshore in the current business climate cannot afford the time and expense to learn the ropes through trial and error. There can be no margin for error. It must be right the first time. But how?
The first question to consider is, “Is my product right for overseas manufacturing?” Not all products make good imports. Many factors come into play, the dominant factor being how labor intensive it is to manufacture your product. Material costs are fairly steady world-wide. The reduced labor rate in China is the #1 reason companies choose to make the move.
However, a lower labor rate is not much good if product quality is not maintained. How about intellectual property protection? What happens if something goes wrong and the product is not made to specs? How do you really know who you are dealing with? How do you know the product was tested properly? There are many other questions and potential problems to consider. ITI can offer expert solutions.