China has always been a hub for manufacturing. By 2025, the country hopes to be the top place for innovation, efficiency, and green development under the Made in China 2025 plan.
But, some businesses are still hesitant to move to overseas manufacturing because of the increase in shipping rates and potential safety risks. Yet, outsourcing manufacturing is still one of the most popular choices.
This article will give you an overview of working with an overseas manufacturer and how it can benefit your business. That way, you can make an informed decision on whether this method suits you.
Keep reading to find out more.
What Is Overseas Manufacturing?
Overseas manufacturing is often referred to as offshore manufacturing, which means your business products and goods are transported to another country.
The main reason people do this is that production costs are lower elsewhere.
For instance, china manufacturing companies have low production costs, which makes it an ideal location for outsourcing manufacturing.
For the most part, an offshore company operates in a foreign country. Sometimes, the raw materials are also cheap in other places, so businesses decide to outsource their manufacturing.
Why You Need To Manufacture Overseas
You must weigh your options carefully when deciding where to establish your manufacturing. This section will cover the benefits of overseas manufacturing for cost and functionality.
Lower Production Cost
Without a doubt, every business wants to find a cost-effective solution to their manufacturing needs. And China sourcing and overseas manufacturing is the best option for reducing costs.
Think of it this way; the cost of living and salaries are much lower in some countries compared to the US, so you’ll be able to get work done for less money.
Even though some raw materials cost the same in china, the labor cost is less, so your overall budget will be lower.
Wider Choice of Manufacturing Partners
If you stick to one country, you’ll have limited options for manufacturing partners. When you open your search to other countries, you can find better places to set up production.
For example, the most popular choices are Asia and Mexico, but China is the best in terms of quality and resources.
More Production Capacity
Overseas manufacturing also allows you to get a higher volume of products made in a shorter amount of time. For a business, time is money, and having to wait for extra days can cost you a lot in the long term.
If you can get more work done for less money, why wouldn’t you move your manufacturing to another location?
The answer is simple; you should go overseas if you want quantity and cost-effective production methods.
Closer To Raw Materials
Products are made from numerous raw materials; sometimes, it can take a long time before those resources reach your country. If you have to wait for your materials to arrive, you can’t start work, which is a problem.
But, if you can move your manufacturing closer to the factory, you’ll get to work quickly.
China is a fantastic location for bridging the production and raw materials gap. You won’t need to export materials. Instead, you can have them on your doorstep.
Access To Skilled Employees
With the rise in digitalization and remote work, the world is seeing how much talent is out there. This means that businesses are looking for more ways to attract skilled employees.
However, if you could move closer to talented workers, you can stop trying to attract new employees, which creates problems with visas and other paperwork complications.
Moving your business overseas will give people the chance to work for your company and for you to find new talent in a new country.
In China, the number of manual workers is high, so plenty of people are looking for an opportunity to work in a manufacturing warehouse.
Are There Negatives to Overseas Manufacturing?
Before making a final decision, you should consider both sides to the possibility of overseas manufacturing.
One downside to taking your business to another country is the cultural aspect of work. Not only is the climate different, but the language will not be the same as in your home country.
Language barriers will play a role in important decisions like signing contracts, making business deals, and adjusting to new employees.
Therefore, you must factor in the possibility of learning a new language to ensure that you don’t miss out on crucial information when securing a business deal.
Thankfully, there’s a solution if you don’t want to learn a new language. You can hire a translator to conduct business meetings or choose a Chinese manufacturing partner that speaks English.
That way, you won’t need to navigate language problems and difficulties.
High Shipping Rates
Having your products manufactured in a country is only part of the puzzle. You must ship the items to different markets and have them ready for consumers.
The location of your manufacturer will influence the shipping costs and time for post-production. So, it’s good to think about this before moving your business overseas.
Otherwise, unexpected issues could arise after you’ve moved to China or another country.
As you can see, the benefits of overseas manufacturing are worth the risk of a few minor problems. If you plan and think over the shipping details, etc., there should be no issues setting up production in another location.
Luckily, we can help you with outsourcing manufacturing to China!
China Is the Best Place for Overseas Manufacturing
Are you looking for a cost-effective alternative to manufacturing? Then, you need to start production in China.
Overseas manufacturing offers a range of advantages from the distance from raw materials, the labor costs, and more effective production rates.
At China 2 West, we can help you find the best services in China that will provide high-quality products and ensure your business is in safe hands.
Plus, we’re not limited to China. We have offices in Bangkok and Ho Chi Minh, so the world is your oyster.
Check out our website and email us if you have any further questions.
