The Great Debate: The Pros and Cons of Manufacturing in China.
As technology continues to grow so does the need to manufacture goods more efficiently and for lower costs. In the most recent decades, China has stood out as not only a leader in economic growth, but also in global manufacturing. Businesses around the world are turning to China for their manufacturing needs and to help scale quickly with quality workers, factories, and shipping.
While China may be a leader in manufacturing goods on a large scale, there may be several reasons why turning to the east Asian country might not meet the needs of your particular business. Below we list of a few of the pros and cons you should consider when deciding where to manufacture your products.
First, let’s discuss the pros.
- One of the leading and most well-known pros for manufacturing in China is the cost of production. The cost of producing goods in China is typically far less than in the United States. China has some of the lowest labor costs in the entire developed world and readily available skilled workers to staff the large factories. Although labor costs continue to rise in many countries, including the U.S., China has been able to maintain the ability to keep production and labor costs to a minimum, relatively speaking. Outsourcing also let’s you leave training to the labor employer, which allows you to have higher margins for your products because of less overhead expenses.
- Manufacturing in China permits for easier product and business expansion. If launching your products internationally is one of your goals, you will be at an advantage over the competition. By manufacturing in China, your product is already in the country, which allows you instant access to a new market and new customers without incurring additional international shipping fees.
- Scaling and increasing your production are simple when manufacturing in China-based factories. Factories in China are accustomed to churning and producing goods on a large, global scale. Factories in China are outfitted with workers and equipment to be as efficient as possible, allowing you to easily scale without delay or downtime.
Now, we’ll take a look at some of the cons.
- Quality control can become a concern. If you choose to manufacture your goods anywhere that is out of reach for you or your team members, there will naturally be less capability to monitor and control the quality of your goods. This leaves you in a situation of only being able to check quality ones you have received your entire order. If mistakes happen or something is wrong with the items, it could become incredibly costly to manufacture an entire order again. Delaying your ability to go to market could not only cost money but also reputation in a time when customer reviews are imperative to successful business.
- You may be subject to minimum order requirements. While one of the advantages of manufacturing in China is scalability and fast bulk ordering, your minimum order constraints may be more than you anticipated. Because China-based factories are so well-equipped with large, expensive equipment and readily available labor, order quantity must be cost-effective and net positive for the manufacturer in order for production to make financial sense.
- There may be language and time zone barriers when collaborating with people in a different country. Although there are several translation tools available for easier written communication, challenges with audio conversations could be difficult. If you do not have a native speaker, it may be difficult to address concerns, questions, or specifications in a timely manner. It may also be tricky to communicate during “working hours” that accommodate different time zones.
When determining whether or not you should manufacture your goods in China, there are multiple considerations. The list of pros and cons for every perceived business need can be exhaustive. Global Manufacturing and Sales is your US-based trusted sourcing partner when you need help making the best decision for your business. We specialize in sourcing, manufacturing, and quality assurance to help you meet the needs of your business.
To get more information on how we can meet your needs, contact us at Info@GlobalManufacturingSales.com or (732) 970-7800.
