Staying Local: More than Just a Feel-Good Catchphrase when it Comes to Manufacturing

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From supporting local economies to more effective disaster management, manufacturing locally keeps U.S. companies in control of their economies and their products.

Buying Local Supports the Local Economy
Manufacturing locally, at its most fundamental level, supports a local economy. The circles of this local work ripple through many organizations and strengthen the U.S. economy. In addition, companies that produce in the U.S. pay taxes to the U.S. government.

Many small- to-mid-sized OEMs aren’t scaled to handle the nuances of offshore production, and prefer to have an intimate relationship with their electronic contract manufacturer.”

But there are other benefits to keeping the manufacturing chain local. For instance, many small- to-mid-sized OEMs aren’t scaled to handle the nuances of offshore production. Companies like these prefer to have an intimate relationship with their electronic contract manufacturer. For them, the close support throughout the design and production process helps realize a better end-product capable of delivering greater value in the long-run.

This relationship also proves beneficial when OEMs require last-minute product changes. An OEM, for example, might realize there is a design problem and it needs to change a circuit board layout. If it relies on an overseas manufacturer, an OEM has to relay the desired changes through emails, phone calls and video conferences if it can’t quickly jump on a plane. Working with a local contract manufacturer enables representatives to simply jump in a car (or a short flight) and go over product changes in person, alleviating confusion and saving time. A local manufacturer can react to those changes quickly and efficiently.

Close production ties also provide the flexibility to ramp-up or ramp-down production at almost a moment’s notice. Usually, ramping-up can be difficult to achieve, but a contract manufacturer that’s equipped to change production can handle an order increase without difficulty. It can also change the product requirements of an order without hesitation.

Flexibility, fast delivery, adherence to specifications – these aren’t promises that are made to be broken. Unlike an overseas manufacturer that can duck the tough questions and not answer why it didn’t uphold its end of the bargain, a U.S. manufacturer stands by its word. It’s easy to hide when you’re overseas.

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Stay Home, Manufacture Locally

Did you know?

In 2010, the consulting firm Grant Thornton found that 44% of respondents perceived no benefit from overseas manufacturing, while another 7 percent believed that offshoring had actually caused them harm.

Source: http://www.assemblymag.com/articles/88601-reshoring-bringing-it-all-back-home

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Fast forward to the present day, and the average wage of previously “cheap” offshore labor continues to rise – demonstrating that the value-gap continues to close.

So, does manufacturing “at home” mean OEMs have to suffer? No! Through geography, closer working relationships, and the expectations and regulations of the U.S. market – not only are both parties kept honest, but the manufacturer and their client give new meaning to the term “domestic partnership.”

Sure, overseas manufacturers offer reduced manual labor costs, but at what hidden cost?

You can’t recover your stolen intellectual property, be sure that environmental and safety standards were properly followed or, most importantly, walk onto the manufacturing floor to tweak the scheme of your product if you go outside the U.S.

A contract manufacturer in the U.S. aims for responsiveness, timeliness and full support. Its workers have high expectations for the products they deliver, and they believe in accountability. You can’t get that overseas. You can get it locally.

Interested in learning more about the benefits of contract manufacturing in America vs. Overseas?  Our mission is to be the authority. Click below to read the full white paper.

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