Many companies find that moving manufacturing back to the States is saving time, money, and eliminating headaches.
For years the common trend was to move manufacturing offshore. But with rising shipping costs, import tariffs, and logistics headaches, today many manufacturers are bringing operations back to the U.S. Is onshoring a good choice for your electronics products? If so, how will you navigate the transition? Keep reading to find out.
Offshoring may not be cheaper
There are many aspects that weigh into electronics manufacturing costs that may not be obvious in the bottom line. Let’s explore where additional costs arise:
Quality – In my experience quality is the most expensive part of overseas manufacturing. With my first company, we were working with foreign manufacturers and struggled frequently with quality issues. The overseas manufacturers ignored moisture sensitivity requirements, used unauthorized alternative parts, disregarded component storage requirements, disregarded ESD requirements, etc. It seemed like every month there was a major QC issue. Best case scenario we had to pay for costly product rework once the product arrived. Worst case would be shipping faulty product to a customer.
Freight and Logistics – Rising shipping costs and supply chain issues are dramatically increasing the cost of landing finished goods from overseas manufacturers. Extended delivery times can often upset customers and may even lead to losses.
Rising Foreign Labor Costs – The labor cost gap in countries like China is shrinking. Employees are demanding better pay and benefits. As a result the difference in cost from US based manufactures is more comparable than ever to overseas competitors.
Time is Money – If you have to wait 3 months for deliveries, deal with delayed communication due to time differences, what is that costing your organization? Manufacturing in the U.S. means you are dealing with people working the same hours that you do, and shipping takes only a few days.
Made locally – Being able to tell the Made in the USA story as part of your marketing message helps you relate to you buyer. Consumers feel a sense of pride about supporting local companies. Make the onshoring message a part of your marketing story.
Bringing your Product Home
When you make the decision to onshore your product manufacturing, we want to help! I started Tritium Electronics to bring electronics manufacturing to my home in Ashland, Ohio. I was tired of the quality issues with foreign manufacturers and knew that we could do better. Tritium is obsessed with details. Delivering quality product on time is our mission. We have helped many companies like yours bring their product manufacturing back to the United States.
Reach out to us today! We would love to hear from you.