There are over three million American manufacturing jobs outsourced to Chinese companies. Businesses small and large enjoy the vast benefits of manufacturing in China.
Have you considered having your products made in China but don’t know if it’s right for your business? Are you wondering if manufacturing in China actually helps boost profits?
The following guide will explain the top 5 advantages of manufacturing in China. Read on and learn why outsourcing helps so many small businesses get ahead.
- Manufacturing and Labor Costs
Manufacturing in China is significantly cheaper than manufacturing domestically. It’s because domestic manufacturers have higher overhead and training costs. Chinese manufacturers have a lower turnover rate, too.
Outsourcing also offers cheaper labor without having to train a single employee. You don’t have to provide access to computers or any other equipment. Visit china2west.com for more outsourcing costs information.
- Higher Production Rates
Chinese factories produce goods sold globally and have advanced scaled capabilities. They can manufacture amounts well beyond what’s possible at the local level.
China offers time-tested factories that make quality products in bulk. They’ve been producing mass quantities for years on end and are extremely efficient.
- Trusted Quality
Sometimes items made in China get unfairly associated with being cheap and poorly made. However, major companies such as Apple and Sony choose to make many popular products in China.
The trick is to avoid companies that prioritize high volumes and sacrifice quality. China has plenty of reputable and trusted companies to choose from, but you must vet all candidates.
Consider visiting the factory in person if possible. Always verify the certification of their employees. In the beginning, you might want to use a day-to-day contract before committing to anything long-term.
- Expansion
Outsourcing to China also gives you the benefit of placing your products near Asian markets. This can be a huge advantage if your business strategy involves selling in fast-growing Asian countries.
You can also grow and diversify your product offerings on the fly. It makes it easier to sell products to other international markets outside of Asia, too.
- Rapid Prototyping and Quick Scaling
Chinese manufacturing also helps businesses achieve proof of concept quickly. Their rapid prototyping processes use state-of-the-art methods such as CNC prototyping.
Advanced prototyping helps develop your products as designed and envisioned. The process is also fast and allows you to test multiple concepts without wasting time.
China’s factories are also great for expanding the production scale of your output once demand grows. This is very important once you’ve entered full-scale production.
Chinese production models are very flexible and it’s easy to negotiate minimum order quantities. It’s beneficial if you encounter downturns in demand for a particular product.
Having Products Made In China
Now you know the top five benefits of having your products made in China. Production is fast and mass quantities are China’s manufacturing specialty. Even more importantly, you’ll save money while getting these benefits.
Check out our business section for more cost-cutting tips and expansion ideas.
