Falconer Electronics Inc. is seeing a strong upward trend in onshoring custom manufacturing. As a United States based contract manufacturer for over 30 years, we have witnessed many ups and downs in manufacturing.
Recently, it seems like more and more conversations revolve around bringing manufacturing back to the States. One particular reason is due to poor quality products produced in foreign countries.
Outsourcing production to a manufacturer lends tremendous benefits. Especially for a small business or a start up.
However, there are numerous challenges and threats to outsourcing manufacturing operations. Therefore, these threats increase dramatically when you outsource to foreign countries. In addition, outsourcing abroad brings many hidden costs.
These determining factors include the heavy cost of monitoring operations as well as quality control. There is also a lack of intellectual property protection as well as extending the supply chain.
Consequently, these are all reasons a company benefits when onshoring custom manufacturing their products instead of offshoring.
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Benefits of Onshoring Custom Manufacturing
This positive trend with manufacturing operations returning to the U.S. holds great promise. Especially for small U.S. manufacturers. The outsourcing of production abroad to foreign countries certainly carries a negative impact on the U.S.
Therefore, terms such as onshoring, reshoring, and redesign manufacturing are generating a new buzz. Onshoring drastically improves lead times. It also cuts inventory levels. For example, at Falconer Electronics Inc., being located close to vendors narrows the supply chain.
Like Falconer Electronics, other companies in the U.S. are also realizing the many benefits to manufacturing products Stateside. However, this is after decades of losing U.S. manufacturing jobs. The majority of which went to lower cost countries such as China.
Consequently, wage gaps are shrinking between China and the United States which delivers another onshoring benefit.
In addition, the U.S. offers superior infrastructure, automation, education, information technology, and transportation. This may be arguable, but since we are biased, we certainly think we hold an edge.
Risks with Intellectual and Proprietary Information
Onshoring custom manufacturing while partnering with the right company dedicated to your success delivers powerful results.
The positive impact improves everything from strategy, supply chain, staffing, and operations.
Control over the protection of intellectual property is another one of the many benefits. Especially since there is a huge vulnerability when relying on foreign suppliers. Meanwhile, the threat of stolen proprietary information and processes decreases dramatically in the U.S.
The loss of proprietary information to a foreign supplier brings devastation to a company. Most noteworthy, legal recourse and recovery is challenging at best. As a result, a company has more control when they choose onshoring compared to offshoring.
Quality Control in Onshoring Custom Manufacturing
Quality control is another serious issue. Separating product development and manufacturing operations can be extremely detrimental. If prototyping and product development are conducted in the States while production heads overseas, quality and consistency may suffer greatly. Managerial focus, when operations are halfway around the world, lends a significant disadvantage. Partnering with experts with vast experience places you in a position of strength.
Wrapping It Up
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- Falconer Electronic’s Instant Ground Strap QuoteBuilder
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