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An American business purchasing products from foreign countries certainly creates many challenges. When working with a foreign company there can be some difficulty with achieving a positive final outcome.

A few issues that can arise include:

  • Misunderstandings due to language barriers and “lost in translation”
  • Challenges with manufacturing products
  • In addition, the difficulty of repairing products 

Communication Issues in Doing Business Abroad 

Doing BusinessWorking with other countries opens the door for communication gaps. This could be due to a simple misunderstanding. On the other hand, the gap could be caused by “lost in translation”. In other words, language barriers or translation challenges that create unwelcome errors. 

Whether the communication is happening through emails or even over the phone, barriers exist. These communication barriers can prevent the foreign company from fully understanding the needs of the American company.

They can also cost the American company more money on materials. This can happen due to different terms of products or even various means of measurement. Sometimes in these cases, the foreign company may make assumptions. However, if those assumptions are incorrect, the entire product could be wasted. It can be difficult to bridge the gap of communication which costs the company significant time and money.

Manufacturing Issues

Another issue that can go along with communication includes problems with the actual manufacturing process. If there is a gap in communication there is also a chance that there will be difficulties instructing the foreign country on how to manufacturer the product. If instructions are misunderstood or they have incorrect translations, the foreign business will have a difficult time producing the product.

When there is an issue with manufacturing, there is often a need for a representative from the American company to go on location to the foreign company. Travel costs run high. Especially when traveling abroad. In addition, traveling will also take up useful time that could be utilized for other projects.

Commonly, you can trace manufacturing issues back to communication. However, with no communication gaps, both companies would be able to achieve success through all the stages of production.   

Repair Issues

Another issue that can come from poor communication is damage. Some damage may occur during manufacturing or shipping. If the foreign company attempts repairs, the situation could become worse. Especially, if there was confusion with producing the product in the first place. Furthermore, it is difficult to troubleshoot a problem when they are not in physical proximity.

A company cannot plan for repairs on goods damaged during shipping. There will have to be replacement of pieces when damage occurs. There is no guarantee that repairs will actually fix the problem. However, even if the repairs provide a short-term solution, both parties need to focus on a long-term fix as well.  

Communication, manufacturing, and repair issues are serious concerns. These are all problems that can happen when doing business outside of America. When language barriers exist, it is difficult for everyone to understand the solutions for these problems.

Additional Helpful Information  

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onshoring custom manufacturing

Onshoring

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.

Check out these excellent articles:

“Small Businesses Find Overseas Factories Lead to Colossal Headaches”

“The American Onshoring Trend Is Gaining Momentum”

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 who possess vast experience places you in a position of strength. Close proximity to vendors allows site visits which in turn consistent quality inspection.

Meeting with vendors and suppliers face-to-face creates the opportunity to build long-term trusting relationships. The opportunity to see your products in production while also meeting the actual individuals producing your product delivers incredible value. 

Wrapping It Up

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Offshoring occurs when a company chooses to have their production outsourced to a country outside the United States.

This is due to the hope that their labor costs will be lower.

However, there’s something these companies don’t realize.

Their actions will have a negative effect on the country as a whole.

Offshoring

Offshoring Effects the Economy

There is an effect on the economy when production moves out of the United States.

However, it is not noticeable right away.

This is due to the manner in which a company outsources their business.

In some cases, a company does this in stages.

However, when a company begins to offshore, even just a single production line, it can affect the local economy by: 

  • Decreasing Jobs 
  • Reducing Consumer Spending
  • Negatively Impacting Local Business 

Decreasing Jobs

When companies all over the U.S. begin moving their businesses offshore, there are consequences.

Consequences such as:

  • A decrease in American jobs in favor of an overseas workforce that is cheaper.
  • Additionally, companies terminating some or all of the positions in America.
  • An increase to the unemployment rates for the U.S.
  • Furthermore, a decrease in the amount of monetary flow which will eventually affect the entire country.

Production Effects Consumer Spending 

Offshoring production heightens the economy in other countries. Meanwhile, the economy in our own country will decrease.

This is due to employees spending less caused by reduced income. 

Therefore, those funds are no longer circulating throughout the U.S.

However, this lack of circulated money doesn’t just affect the larger companies.

It makes it more difficult for small and local businesses to thrive as well.

Furthermore, individuals are less likely to spend their money on U.S. based products.

Especially, if there is less money to go around.

Eventually, money goes toward products that are lower in quality from cheap labor countries.

Furthermore, this will increase unemployment.  

Offshoring and It’s Impact on Local Businesses

Offshoring does not just affect larger businesses who move out.

When companies and jobs leave a community, it also negatively affects the businesses that are still here.

Fewer jobs lowers consumer spending. 

The flow of money connects all businesses.

The American economy is dependent on keeping businesses here as well as their employees.

Every lost manufacturing job impacts local service providers, retailers and restaurants. 

In conclusion, the entire country suffers when companies move to other countries.  

Wrapping Up

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Magnetic 8" Reflector Spot Light

Falconer Electronics prides itself on manufacturing superior electrical products for its amazing customers. Therefore, over the past two years, Falconer Electronics served as a contract manufacturer of Magnet Base Spot Lights for industrial work light manufacturer, Standard Portable.

Things went so well that the companies decided to join forces and become one business. Furthermore, Falconer Electronics purchased Standard Portable to create an opportunity for businesses and consumers to purchase directly from the manufacturer at low prices.

As a Wire Harness Manufacturer since 1985, this partnership brings tremendous energy and excitement. Expanding from a manufacturer of Commercial Outlet Strips, PCB, LED Lighting and Wire Harnesses, adding the line of Industrial Work Lights is just……well…..deLIGHTful! (Sorry, we couldn’t help ourselves).

Magnet Base Spot Lights

Magnetic Spot Lights at Falconer Electronics come equipped with a sturdy ceramic or neodymium magnetic base that creates either a 30 or 45 lb pull. This durable Magnet Based Spot Light provides you the flexibility to attach to any ferrous metal surface allowing you to work hands-free. More so, each spot light is produced with an aluminum reflector delivering ideal lighting wherever maximum illumination is required.

You can now purchase our Portable Work Lights direct as well as Industrial Magnets on our brand new ecommerce store. We also offer Magnet Base Spot Lights for industrial, office, and residential use.

Industrial Magnet Base Spot Lights 

The Spot Lights can be purchased with a 3 prong grounded cord that works perfectly for industrial settings. These rugged and durable cords provide long-lasting use. Also, the grounded cord delivers the additional safety feature necessary in warehouses, factories or a garage.

MLC-200-25-C3 and MLC-200-50-C3

Magnetic 9" Spot Light with 25' Cord

 

MLC-231-25-C3 and MLC-231-50-C3

Magnetic 5-1/2" Spot Light w/50' Cord

ML-200-25-C3 and ML-200-50-C3

Magnetic 9" Reflector Light w/25' Cord

ML-231-25-C3 and ML-231-50-C3

Magnetic 5-1/2" Spot Light w/50' Cord

 

WSL-8-3

Magnetic Work Light w/ 8ft Cord

Magnet Base Spot Light with Cord Reel 

Also a perfect fit for industrial use, the Magnet Base Spot Light with Cord Reel is built to tackle challenging projects.

C200-20R
Magnetic 9" Spot Light with 20' Retractable Cord Reel

C200-50R

Magnetic 9" Spot Light with 50' Retractable Cord Reel

Magnet Base Spot Lights for Office and Residential Use 

Lastly, you can take advantage of low prices with a line of two prong spot lights that work great for office and residential use.

WSL-51/2-2C8

Magnet Base Spot Lights

WSL-8-2C8

Magnetic 8" Reflector Spot Light

 

WSL-2C8

Magnetic Spot Light

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Custom-Commercial-Power-Strips

Custom Electronics Manufacturer in the U.S. Since 1985

Falconer Electronics, Inc (FEI) has proudly served its community as a U.S. Custom Electronics Manufacturer since 1985. Our customers love the convenience and flexibility of working with a domestic manufacturer.

There are tremendous benefits gained when working with a domestic manufacturer. Especially since partnering with a U.S. Custom Electronics Manufacturer drastically reduces costs and lead time.

The three areas that FEI specializes in include:

  1. Wire Harness Assembly
  2. Commercial Outlet Strips
  3. Printed Circuit Boards

Benefits of Partnering with a Custom Electronics Manufacturer in the U.S.

Outsourcing your Wire Harnesses, Commercial Outlet Strips or Printed Circuit Boards to a U.S. Custom Electronics Manufacturer provides a list of competitive advantages for your company:

  • Time zone challenges do not exist – We get up super early and start our day at 6:00 am est.
  • Quick and easy communication where language barriers do not exist (except for our goofy accents).
  • Shipping charges are much cheaper.
  • QUICK turnaround time – we work fast!
  • Over 30 years of experience.
  • We lobby all of our tools, resources, and expertise to provide an outstanding customer experience.
  • “Made in the USA” is a symbol of pride and high quality. Hard working Americans at work producing incredible products.
  • Fast and convenient shipping options
  • Inventory management and control
  • Our purchasing power lowers your costs
  • Long-term relationship with vendors
  • Keeping our overhead costs as low as possible to pass savings on to our customers.  We are frugal! We consider ourselves part of your team and work relentlessly to keep prices down and dirty.
  • Accessibility – many of our customers visit our facility and we consider it a privilege to go on tour to visit our customers as well.
  • Supply chain efficiencies

Custom-Commercial-Power-Strips

Our experience, expertise, tools, knowledge, and resources become an extension of your business allowing you to do what you do best – Make your outstanding products and produce profits. One of the keys to the long-term success at FEI is our deep commitment to driving profits for our customers. The greater the ROI each customer enjoys from our products the better.

 

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