5 Benefits of American Manufacturing

american_manufacturingAs product development managers and their teams complete the conceptual and design phases of their product, they begin looking into manufacturing. During this time, the pressure is often on these teams to keep costs down, which drives many to seek a manufacturing partner overseas, typically in a low cost country (LCC).

While there are multiple pros and cons to overseas manufacturing, one of the most notable cons is the increased levels of risk involved in your project sourcing. For example, you may be able to produce your electronic product in an LCC for a lower price than a domestic, or American, contract manufacturer would quote, but in the long run, you may be paying more. This is typically due to the difference in expertise and regulations between overseas CMs and American CMs.

At the end of the day, many companies elect to go with an overseas manufacturer because they’ve been solely focused on cost and haven’t taken into account the benefits of American manufacturing.

Here are 5 benefits of American manufacturing:

Higher Quality & Expertise

When you partner with a domestic contract manufacturer, you should take the time to understand their process and meet the engineers and manufacturers involved in the production of your product. Often, you’ll learn that many CMs have a team of highly skilled experts who can help streamline the process for your company.

In addition to the added expertise, the manufacturing and labor regulations in the U.S. are higher (and more enforced) than those of an LCC. This ensures that your project is sourced with quality parts and the team working on your manufacturing is taking every single detail of your product into account.

No Language Barriers

This is something that many companies don’t always take into account when they are first looking into contract manufacturing - how well will you be able to communicate?

While communication barriers have become less of a roadblock with the degree of American companies choosing to send work overseas, it is still something to consider. By partnering with a U.S.-based CM, you can avoid any language or culture barriers, and, know that your project requirements will be understood in their full extent.

Clear Rights to Intellectual Property

Protecting your IP isn’t just something to be aware of if considering LCC manufacturers - this is something that needs to be reviewed with every American CM as well. When you are reviewing the RFP and meeting with the senior engineers and manufacturing team, there should be clear documentation regarding your intellectual property.

Also, if you ever have any questions about the rights of your IP, your manufacturing partner should be fluent in the realm of intellectual properties and ensure that you and your company are secured throughout the manufacturing process.

Quicker Turnaround (Shipping)

While the cost of goods/manufacturing overseas may be lower than those in the States, it is important to take into account minimum orders and shipping costs/timelines.

Having to order a specific (large) quantity of your product just to meet the minimum requirements in order to be shipped can cost your company a lot of money - much different than order the exact amount you need and having it shipped or delivered via ground.
With an American manufacturing partner, you limit wait time for receiving the finished goods, which is ideal for product managers with a tight deadline to meet.

“Made in USA” Stamp

Finally, whether you are creating a consumer electronic product for the internet of things, or you have a circuit board that will be a part of a future product design, the “Made in USA” stamp has a high domestic appeal to consumers and buyers.

For consumers, there is a sense of pride in purchasing products made right here America, something many wish they saw more of. And for buyers and supply chain reps, many often want the highest quality parts for their project, and if they know the CM and where the product was manufactured, it can make a big difference in the selection (and pricing) of products.

Again, there are many pros and cons to overseas manufacturing, and the same goes for American manufacturing. The most important step you can take is to do your research, meet with vendors who understand your goals, and go from there.

To learn more about this process, you can set up a free consultation with a member of the Tecnova team here.

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Topics: Electronic Contract Manufacturing