Falconer Electronics Inc. is seeing a strong upward trend in onshoring custom manufacturing. As a United States based contract manufacturer for over 30 years the company knows what works and what doesn’t. However, there are numerous challenges and threats to outsourcing manufacturing operations. Therefore, these threats increase when you outsource to foreign countries. Also, there are many hidden costs associated with outsourcing. These determining factors include the heavy cost of monitoring operations as well as quality control. There is also a lack of intellectual property protection. Along with an extended supply chain. Consequently, these are all reasons a company would be better off onshoring custom manufacturing of their products instead of offshoring them.
Benefits of Onshoring Custom Manufacturing
These positive trends with manufacturing operations returning to the US hold great promise. Especially for US manufacturers. The outsourcing of production abroad to foreign countries have negative trends. 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 us, at Falconer Electronics Inc. it is crucial to be located close to our vendors as supply chains shrink.
Like Falconer Electronics other companies in the US are finally realizing the many benefits to manufacturing products stateside. However, this is after decades of losing US manufacturing jobs. The majority of which went to lower cost countries such as China. Wage gaps are also shrinking between China and the United States. Right now the US offers a superior infrastructure. Also, the US is superior in terms of automation, education, information technology, and transportation.
Perks of Onshoring
Cutting Back on Concerns
The products and services an onshoring custom manufacturing business offer effect every aspect of the company. Everything from their strategy, supply chain, staffing, and operations are affected. Control over the protection of intellectual property is another one of the many concerns. Also, there is a huge vulnerability by relying on foreign suppliers. Meanwhile, there is also the threat of stolen proprietary information and processes. Therefore, causing devastation to a company. However, a company has more control to all of these aspects when they choose onshoring compared to offshoring.
No Heavy Cost of Monitoring Operations and Intellectual Property
You still want to be sure that the work is getting done correctly and on time. Especially when you are not in the same area as your operations. Also, you want to ensure your intellectual property is safe. How do you do this when offshoring? You will have to ensure you know what is being done there. This can mean hiring someone that you trust to run the offshored facility. It may also mean you will have to run the facility yourself.
Therefore, you would have to spend the extra amount to get a manager into that facility. Or at even greater cost moving your entire life to the new area. Whereas if you had your operations in the same place you are located you could save either of those costs.
Quality Control in Manufacturing
Quality control is another serious issue. Separating manufacturing and product development can be extremely detrimental. Managerial focus when operations are halfway around the world is a significant disadvantage. At Falconer Electronics, we pride ourselves on producing top quality printed circuit boards (PCB). We also take pride in our wire harness assembly.
Reliable Skills and Knowledge
We have had many clients experience unacceptable products from foreign suppliers. Therefore, failing to meet our customer’s standards. Falconer Electronics has a history and in-depth knowledge of Circuit Boards. We also have a long history with electronic assemblies from subsystems to complete systems assemblies. Our customers have been able to rely on us. Furthermore, we have a history of repairing products that have been imported. By repairing these products, we are able to show our superior knowledge and skills. Even when working on pre-existing products. We have found that our customers greatly cherish the reliability and high quality work our team provides.