Outsourcing to China: 7 Reasons to Do Your Vacuum Casting OverseasCharles Leveillee
Thanks to the modernization of technology and communications, our world is smaller than ever.
Businesses have taken advantage of this in many ways, but especially so with incorporating China into their manufacturing plans.
While some companies thrive on using China in their business structure, there are some that don’t understand what all the hype is about.
That may be due to their unfamiliarity with what benefits can be offered by outsourcing to China. Your business has enough on its plate already.
Here are several reasons why integrating China into your business model may be the smartest decision you ever make.
1. Labor Costs
One of the most well-known benefits of why companies outsource to China is the significantly-low labor costs.
Labor costs take up the largest piece of the pie for most American-based manufacturing companies, and they continue to climb.
At the end of the day, that means more money out of your pocket to keep up with those trends.
Meanwhile, you could be saving on labor costs by outsourcing your manufacturing needs to China. It saves in overhead costs and helps you to keep up with the growing demand that your product is gaining every day.
Once you have an exceptional marketing plan in place, you’ll find that keeping the costs low to keep up with the demand will be tricky.
Outsourcing to China gives you the best potential of meeting demand and keeping labor costs down simultaneously.
2. Lower Rates on Products
Every product has certain needs for both materials and resources. Sometimes the price for meeting both of those factors can be costly.
However, in China, you’ll get the quality that you’re searching for at a lower price than back in the States for a few reasons (more on that in a bit).
You also may be more susceptible to a friendly bulk order rate that helps cut costs over the span of more volume.
Whatever the case, the price point on manufacturing your products will be much lower if you were to outsource to China.
Do you wish you could lower the price a bit on your product’s retail cost to maximize sales? That could finally possible thanks to China’s low rates.
3. Maximizes Your Business’s Process
You know the in’s and outs of your product: what materials work best, the purpose(s) it serves, the clientele that it matches, etc.
However, if you don’t have much manufacturing experience, then there may be wasted time and effort on non-essential processing tasks if you were to manufacture yourself.
Rather, by outsourcing to China, you’re putting yourself into business with experts in the manufacturing industry that focus solely on the essentials to maximize your process.
This helps you focus on other aspects of your business, and letting your friends in China worry about the rest.
4. Quality and Quantity
Any manufacturing company can increase their productivity to meet the demands of your bulk order needs.
But how many can say they’ll exceed your expectations for quality at the same time? Not many.
Chinese companies place a premium on their relationships with clients in the United States, so you can expect your orders to meet the needs of your business two-fold.
5. Access to State-of-the-Art Practices
The moment you switch your outsourcing to China, you’ve more than likely exposed your business to a new wave of technology in its processes.
This is thanks in large part to Chinese manufacturing companies exhausting their research and knowledge to find ways of technological advancement.
Perhaps there’s a more efficient method of vacuum casting.
Maybe there’s more value in vacuum casting in China due to low volume plastic parts.
Whatever it may be, your processes will gain access to constant advancement it may not otherwise have should you manufacture elsewhere.
6. Timely Production
The manpower and population in China are unrivaled. That means more access to hiring more and more potential employees to fit the demand for their services.
That means you can expect on-time return as one of their clients.
The more business that you give them, the more they’ll build a headcount to increase the turnaround time.
China may also have the necessary resources and materials for your product more available to them than in the States.
Less wait time and more access to your product’s resources equals faster production to feet the needs of your business and its clients.
7. Optimized Distribution
If your intention is to push your product world-wide, then outsourcing to China can also help with the logistics of your finished product.
Chinese manufacturing companies offer to assemble and test your products after manufacturing is met, therefore shortening the process.
From there, they can also help you cut the costs of distribution from China to those countries you sell to that are in closer proximity to it.
Ultimately, the main goal is to maximize productivity and return on investment. The distribution benefits are just one more advantage your business can have over the competition.
Outsourcing to China: Meet Your Client’s Needs More Than Ever
Now that you’ve seen the benefits of outsourcing to China, it’s time to see the maximized return for your business.
Simply integrating a new manufacturing process will help you see increased revenue over your competitors.
Be sure to read this page on how our expertise of materials can cut more costs on your products.
We’re constantly looking for new advancements to help our clients stay at the forefront of their industry’s production.
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