THE PROS AND CONS OF MANUFACTURING IN CHINA

Are you questioning the uncertainty surrounding the Chinese economy? Companies manufacturing overseas want to know if their business will be affected. We want you to have some clear pros and cons of manufacturing in china, so we’ve built a short list.

PROS

1.Lower Cost
It can be argued this is the number one reason companies are manufacturing in China right now. The cost of manufacturing in the U.S. is competitive, but most often it’s cheaper to manufacture overseas. It’s important to remember that lower cost isn’t always indicative of lower quality.

2. Extensive Knowledge
China was built with an infrastructure for the manufacturing industry. Roads and cities were designed to bring optimal service and efficiency when it comes to production of goods. With that foundation we’ve seen China conquering the world of manufacturing. As their specialty for hundreds of years, there is something to be said about the knowledge this country has gained along the way.

3. Faster Turn Around
Our clients at Blacksmith are in love with the fact that we can come up with a concept of product and have a sample back for review in just weeks. Due to the infrastructure we discussed, factories in China can handle larger order quantities. This is possible in part because of advanced machinery and workforce.

 

CONS

1. Language and Communication
Describing your product in detail prior to production is vital. Each aspect of your design needs to be produced exactly as specified. Conveying this information over a language and time barrier can further complicate your order. At Blacksmith, we understand the importance of clear communication. Our team consists of several bilingual client success managers who help interpret your vision.

2. Higher Minimums
While China is able to handle larger orders, that is often what they require. If your business isn’t prepared to produce over 1,000 units, this can be a problem. Factories overseas want to know if you are a serious client they can rely on for frequent orders. If this is not the case, they are unlikely to take on your order.

3. Shipping
This is likely the most frustrating con of manufacturing in China. You may reach a point when your production is complete, but are now struggling getting your order on a boat. Customs inspections and high duty rates might also get you down. You have deadlines and product launches scheduled to keep your customers happy. Delayed shipping is not an option for you.

We have been in this industry long enough to have already fought these battles for you. Blacksmith can handle all shipping tasks for your business.

Depending on your needs, one side might outweigh the other. Do some of these pros or cons resonate with you personally? You might ask yourself if you are dealing with the right China Manufacturer. If not, give us a call and we will show you the difference with the PROS!