When it Comes to American Vs. Overseas Manufacturing: Standards and Regulations Make a BIG Difference

Choosing American Production Guards You in More Ways Than One[/caption]

The news has been littered with stories over the years about overseas manufacturers stealing the intellectual property of U.S. companies. It’s gotten so serious that some U.S. companies have abandoned overseas manufacturing and returned home altogether.

Due to a combination of lax government enforcement of trade and patent laws and the highly variable nature of actually enforcing intellectual property rights internationally, protecting your intellectual property can sometimes become another hidden cost of manufacturing off-shore.  is a virtual non-issue with the combination of an American manufacturer and a simple confidentiality agreement.

In America, an NDA, confidentiality agreement, and well-established laws make this a virtual non-issue.

This has proven especially true when it comes to small and medium sized businesses, who – unlike large, corporations – possess few tangible resources outside their intellectual property itself. In the U.S. IP protection is comparably simple. In turn, U.S. contract manufacturers believe honesty is the best policy and carefully safeguard every customer’s intellectual property.

Benefit from the Best Available Safety and Environmental Standards

In the U.S. OEMs aren’t just protected in terms of intellectual property. Domestic contract manufacturers must also follow strict environmental standards. Hazardous chemicals must be properly disposed and the Environmental Protection Agency requires companies to fully comply.

Additionally, it’s incredibly difficult for manufacturers in the U.S. to cut corners when it comes to material quality. For every manufacturing relationship, keeping costs low and quality high is the name of the game. However, through a combination of distance and a higher degree of government oversight, quality can tend to fade over time when manufacturing happens thousands of miles away. Not only does this carry the risk of both reduced product quality, but also a reduction in reputation. Some worst-case scenarios have even seen products in various industries marred by unacceptable and even illegal levels of dangerous materials – all in an effort to cut costs lower and keep business overseas.

Ultimately, when it comes to overseas manufacturing – there’s often no telling what environmental and safety standards manufacturers follow.

Author: Distron Corporation

Distron Corporation is New England's original electronic manufacturing company, serving business and industry across the country with robust and comprehensive surface mount and pcb capabilities.