Products that are “Made in China” seem to be everywhere. So much so it might look as if no matter what the item is, it’s all suited for China Manufacturing. If you look a little more closely you will discover there are many items that are made domestically.
There are a multitude of reasons a product is or is not suitable for China manufacturing. In this blog we will discuss three reasons a product may or may not be suited for China manufacturing.
The number one reason a product is a candidate for China manufacturing is the percentage of labor that goes into that product. For example, if the product is a one-shot plastic injection requiring little or no post-production work, it just pops out of the injection molding machine, cools, and is placed into a retail carton, then most likely is not a candidate. On the other hand, let’s say a plastic injection molded product needs post-production work to trim and then to be joined to other plastic injection molded piece, glued or perhaps assembled with screws, and then painted or inserted into unique packaging. That could very well be a candidate.
China Manufacturing is all about quantity. A product can be the most labor intensive product out there but if the quantity isn’t worth the factory’s effort to produce it, no factory will be interested. Factories as well as their material suppliers each have an “MOQ”, Minimum Order Quantity, for each product. The MOQ is based upon, among other factors, the quantities the material suppliers are willing to sell to the factory and the cost of those materials in the various quantities. The producing factory’s MOQ takes into consideration the cost and time to train and set up the production line versus what the factory will make on the production run. Also, the workers are paid for their production at a piece rate so if the quantity is small the workers do not have an opportunity to make very much money. Also with a small production run, the workers do not have an opportunity to get into a “rhythm” and become as efficient as they could be with a larger quantity.
Transportation is a cost that must be added to the total cost of the item when comparing the viability of domestic vs. China manufacturing. Quantity, as we have already discussed, comes into play here too but the idea is typically the most economical way to ship goods from China is in full containers. The most common size container used is a 40’. If, for whatever reason, the quantity needed is less than a full, 40’ container, the total cost of transportation, when amortized over a smaller number of items in that container, may add too much to the cost of each, individual item to make China manufacturing worthwhile. There is a 20’ container available but the best use of this “half container” as it’s sometimes called, is for product that has a lot of weight, and a full 40’ container, if filled with the same product, would be considered overweight.
The Bottom Line
For most products, deciding if they are suitable for China manufacturing is fairly easy. For others, the only way to tell is for the completed product to be evaluated by an expert. The third scenario involves having the product and all of the details analyzed by a reliable China Manufacturer.
The professionals at ITI Manufacturing have been evaluating products for over 40 years. The best way to determine if your product is suitable for China manufacturing is to contact ITI and let us do what companies have trusted us to do for all these years. Not only will we discuss your product and its suitability to be “Made in China”, we will provide you with a detailed quote at no charge. This way you will know your exact cost, before you make any sort of commitment, to manufacture your product in China. The consultation is also no charge to you. It’s to your benefit to find out. Call us today.