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Apprehensive About Offshore Manufacturing? Let’s Talk

How companies navigate the latest developments in global trade and manufacturing sectors will remain a dicey issue. This is especially the case for those just starting with offshore manufacturing. Likewise, the magnifying glass keeps a close eye on trade talks between the US and China. And companies that need to outsource their manufacturing still have many options and avenues available to them.

Simply put the viability of a product is inseparable from its production requirements. Choosing the right offshore supplier requires a comprehensive evaluation of the technology, market niche, and manufacturing capabilities they employ.

ITI Manufacturing finds optimized solutions for manufacturing its customers’ products offshore.  For companies that remain apprehensive, there are options that should be considered before abandoning their offshore strategy.

Is China Still an Option for Offshore Manufacturing?

China remains a popular option even under the current tariff clouds. This is because China has the capacity and remains determined to stay in the fight and remain the world’s premier manufacturing location. Even after recent agreements, the Chinese government refused to budge on Industrial Concessions for manufacturing zones. They’ve also taken measures to limit the impact of increased tariffs for companies choosing to outsource to the country.

ITI Manufacturing can work with US companies to find an offshore solution in China by understanding the production needs, finding a reputable factory, and determining what exactly should be outsourced. The ability to create an equitable production model is what ITI Manufacturing prides itself on since 1974.

Other Options besides China

If the product is in the crosshairs of the current trade war, other offshore manufacturing options may be more beneficial. The rise of Vietnam and India as manufacturing friendly economies provide a viable alternative to Chinese factories. South Korea is once again becoming a destination for American manufacturers as well.  China’s increased labor costs and rising standards of living have enabled these countries to compete, even if there were not a “trade war” in process.

Vietnam particularly benefits from China’s pressure, producing textiles, footwear, apparel, furniture, and electronics over the last three decades. ITI Manufacturing can help source the right suppliers from a combination of in the same country or in different countries to ensure your company’s product’s viability and stable supply within the US market as well as worldwide.

Emerging Offshore Options

Apart from Vietnam and China, other countries have opened their industries more recently, providing more options for offshore manufacturing. These include Brazil, Mexico, and the Philippines. Each provides benefits and has drawbacks, depending on the product’s design and production criteria.

For Brazil and Mexico in particular, proximity benefits may sway the consideration in their favor. However, the low labor cost in the Philippines and the country’s recent “Manufacturing Resurgence Plan” make them just as attractive to product teams.

Ready to Talk? We’re Here!

One thing our clients find reliable about ITI Manufacturing is that we remain consistent in our service, as well as with our guarantees. We’ve been in the manufacturing industry since 1974, and we’ve learned a lot along the way. We help USA-based companies learn what to do and what not to do when it comes to offshore manufacturing. And through years of mastering and navigating through the changes and the ins and outs of process strategies and negotiations, we’ve developed a business experience that benefits our customers.  So, if you’re ready to talk, let’s get the conversation started. Discover what your options are and how we can help you! Call us today at 888-574-6823.

By |2019-11-18T15:18:26-06:00April 30th, 2019|Manufacturing|

About the Author:

Avatar for Mike Stewart
Mike Stewart joined ITI in 2002 and is Vice President of Business Development. He has a BA in Business and Journalism from SFA University. Before joining ITI Mike sold, installed, and trained businesses in comprehensive business computer systems in the medical and automotive industries and served as Executive Vice President of a video news magazine production company.