Why outsource manufacturing to a domestic manufacturer as opposed to China for example?
Outsourcing in America provides an option to offshore manufacturing that in many cases has significant advantages. Communications are better as the companies are not on radically different time zones and speak the same language. In most cases start-up times are less, as travel time, transfer logistics and communications are easier. Every production scenario has its “sweet spot” of what volume of production benefits from what options of domestic or offshore production. Some of the advantages to domestic outsourcing include: • Better communications with the factory (sales, engineering, materials, production and quality). • Faster time to market. • Advantages in quality, faster ramp to quality production. • Highly skilled American workforce. • Lower start up costs and in many cases and volumes lower ongoing production costs. • Significantly lower transportation and logistics costs. • Potential savings in duties and tariffs not required in a domestic manufacturing scenario. • Stability in
