It is a commonly held misconception that precision parts manufacturing in an overseas factory will always be cheaper than producing that same part here in the USA.
In many cases it can be…. but buyer beware!
There are a few catches and possible bumps along the way that you may experience while trying to wheel-and-deal overseas.
The Hidden Costs in Overseas Precision Parts Manufacturing
While it is true, when dealing with a foreign factory you may be able to save money by exploiting cheaper labor and materials.
But transportation fees including export taxes will end up being very high.
In the end, the price can be comparable to having your metal components manufactured in the USA.
Quality and Standards
Will you be able to ensure a foreign factory is building quality parts for you?
Generally not until delivery, and remember if your product is coming from halfway around the world, it’s going to take much longer to receive your shipment.
It is a sad fact that many other countries have lower safety standards and much less operational scrutiny that we have here in the US.
This not only effects the cost of of the product, but the quality.
Accidents are much more likely, and could easily disrupt product delivery causing a breakdown in your supply chain.
In the USA quality precision parts manufacturing can be gauged by certifications held by the manufacturer such as ISO, ITAL, AWS and ANAB just to name a few.
A manufacturer that is certified by these organizations will ultimately be able to produce a better quality and more reliable product.
How well will you be able to communicate your initial ideas to a foreign factory?
You may need to hire an intermediary that will be able to effectively communicate with a oversea factory, but this service is not cheap and will add to the bottom line
What if you need corrections, or even worse.. you have complaints about quality, or delivery time-frame?
All these issues would be infinitely easier to handle if you choose a US based precision parts manufacturer, such as Group Manufacturing Services, Inc.
The ‘Made In USA’ label adds a measurable amount of value to your product.
When customers see that ‘Made In USA’ label on a product they feel as if it supports national industry, and also instills a sense of pride that has been lost over many years or industry off-shoring and overseas manufacturing.
Why not leverage this advantage for your product?
Manufacturing and the US Economy: Here’s the Facts
The manufacturing sector is vitally important to the US Economy.
Manufacturing adds over 12 million $60,000 dollar a year jobs.
Manufacturing comprises nearly 12% of the GDP while contributing over two trillion dollars to the US economy.
The More You Know: Facts About Manufacturing