When it comes to outsourcing manufacturing, many businesses in the western world, especially the US, want to know one thing: Is it worth it? Sending your products abroad to be manufactured can seem risky, and you’ll need to find an assembly plant that’s willing to work with you and produce your orders to high quality standards while staying within your budget. There are plentiful benefits of outsourcing assembly from China, which can help your business make a leap. Read on for what you’ll want to consider before signing on the dotted line.
Labor is not cheap anymore, but still worthwhile
China’s economy continues to grow in importance, as does its influence on global trade. From 2012-2021, China grew at an average rate of 5 percent and is expected to become even more important in global commerce, particularly if it can sustain its growth rate for another 20 years. What does that mean for small businesses hoping to save money on assembly and production of goods shipped from abroad? The short answer: It’s still worth it, despite its rising labor cost.
Rising labor costs mean that outsourcing assembly and manufacturing to China won’t save your business as much money as it did 20 years ago. Still, moving production and assembly operations from North America (or Europe) to China is still worthwhile for most businesses looking for a lower-cost option. In fact, certain Chinese cities have seen such a huge influx of foreign investment that they are now considered less expensive than US states with similar populations, such as Nevada and Utah.
Negotiable MOQs
When you outsource assembly to China, although there’s minimum order requirement, you can always negotiate lower quantities that focus on small scale manufacturing. This means that you can work with manufacturers who aren’t equipped for large-scale production runs, which is perfect if you don’t have a high quantity of products but want to test out outsourced assembly as a solution.
Many small business owners start off by first outsourcing assembly of one unit or a single batch before ramping up their orders if they get an approval from their customers. That way, you don’t need a big upfront investment in equipment and parts before finding out whether outsourced assembly is worth it for your business or not. Just put in your order and wait for it!
Short lead times
Getting your products back in a short lead time is one of many reasons why you should outsource manufacturing to China. In fact, with just three working days needed for Chinese assembly, there’s no excuse not to get an order on its way quickly. In comparison, most of Europe requires seven working days and North America needs eight. These added production days cost money—money that could be used more wisely elsewhere. You can pass on some of these savings onto your customers, allowing them a bigger margin when selling your products while maintaining a healthy profit margin yourself. Outsourcing your assembly line to China will give you shorter lead times than any other country and allow you to put orders through faster than ever before.
But that’s not all. If you’re able to ship an order within just three days of its completion, you can include a significant customer discount without losing profit. This will help build your brand and encourage more sales in future as customers know they can rely on quick turnaround times. A fast lead time is one of many reasons why manufacturing in China can be such a lucrative option for any business, no matter what industry they work in. Chinese assembly isn’t just about saving money and cutting down on production time—it’s also a way for your brand to stand out from competitors by offering next-day delivery services.
Better quality control
When you outsource manufacturing of your products, you can take advantage of access to many state-of-the-art production facilities in China that match and often exceed your own. The biggest perk here is a higher level of quality control. No matter what measures you put in place at home, it’s impossible to oversee every step in production.
Chinese manufacturers have more experience doing what they do and have more resources dedicated to monitoring product quality along the way. Often times you can first detect things that go wrong before you do, owed to their experience. You don’t want inferior or substandard goods finding their way into stores or under consumers’ Christmas trees. Paying for manufacturing in China will result in better overall quality control.
Flexibility with customization
If you’re ready to scale up your business, but need a steady flow of customized products or services, outsourcing to China is an option. But make sure you use reputable sources and carefully select who (and where) you work with. You might be surprised at what can come back from Chinese manufacturers—in some cases, better quality than that produced in-house.
Working with a company that specializes in outsourcing assembly to China can also ensure you get your desired amount of flexibility and customization but still within your budget. It won’t just stop at product production.
For example, if you need new packaging for an existing product or service—but don’t have time or resources to develop something yourself—working with an agent is a great option. They’ll help find packaging options that meet your needs while keeping costs low enough for you to turn a profit on each sale. That way, even if it’s not custom-made per se, it’s as close as possible without having any negative impact on profitability or quality control.
Proven technology system is in place
Years of manufacturing for the world has not only come into monetary fruition, but also resulted in another technology innovations. The tech boom in China makes it even more tempting to manufacture your product. You can easily find a manufacturer who will help you with CAD/CAM and CNC machining to make sure that you have a high-quality prototype or final product. Also, because of all these advancements in technology, there are many factories in China that are willing to work with you on creating custom molds or unique pieces for your project.
Its technical appeal does not only lie on product production, but also its system too. You can easily find a reliable manufacturer who is well-versed in international quality management systems and customer service systems as well. A large number of manufacturing companies have their own research and development departments that make sure that they are always up to date with new technology advancements. This makes it easier for you to trust them when you need something made that’s more complex than others.
When you’re just starting out, it’s hard not only to know where and how things should be done but also how much they’ll cost. By outsourcing an entire process (or part of it), you can focus on what’s important without wasting time worrying about whether or not things are being done right—and for far less than keeping everything in-house. There are plenty of quality manufacturers who specialize in specific processes and can take care of everything from start to finish. In fact, some even manage all aspects of production—from sourcing raw materials to final packaging and shipping. C2W is one of them with over 17 years of experience in the industry and the services span from pretty much all the sectors of a manufacturing process. Reach out to us now to learn more!
