Outsourcing to China no longer means saving money
In the past few years, economists have seen a phenomenon take place: reshoring. This means that manufactures from all kinds of industries who have outsourced their production to facilities in Asia are now bringing them back home. Let’s look at why it is now, more than ever, a wise business move to partner with a USA-based wood furniture manufacturer.
Recently, labor laws became firmer in China. Thus, labor strikes or conflicts became a recurrent issue, with workers wanting to get higher wages. A narrower gap in worker’s wages and a rise in fuel costs make savings on logistics less significant than they used to be, making outsourcing more expensive.
Support your local economy, create jobs
Under the light of these facts, it sounds worth it to take the time to think about bringing boys back home!
After the recession, we need more than ever to create sustainable jobs to make our economy stronger. However, with advances in technology, robotics and automation, we do not have need for a manufacturing workforce as important as what it once was. Still, domestic manufacturing will strengthen economy and be an incentive for innovation. It is important not to forget also that when a company stops manufacturing, it loses its ability to innovate. Practice makes perfect, the saying goes. So let’s roll-up our sleeves and get our hands dirty.
Even better, according to an article published by
The Boston Consulting Group, by 2015, the manufacturing costs will be higher in Europe or in Japan than in the USA. All of this point towards the fact that American-made goods are here to stay.
Meet your customer’s needs
Last but not the least, all manufacturing companies want to offer good quality products at a sustainable price, while meeting customers’ needs and demand.
Few of the main downsides of outsourcing manufactured goods are that quality control can hardly be done before the shipment arrives, added to the frustration of having to wait for the time it takes of it to sail around half the world. All of the products that do not meet the quality standards are a loss of both time and money for the company; they either need to be sold at a discounted price, lowering the business margin of profit. This can become rather costly in the long run, and won’t help in lowering the retail price for the end-customer.
With a
wood component manufacturer in USA, it is much easier to meet customer’s needs quickly and efficiently. It also allows
contract furniture suppliers such as Newport Furniture Parts to reduce their inventory and transportation costs, have a high-quality production and develop innovations while keeping technology here. Let’s support our economy and made in USA goods. Contact us today for all your wood furniture needs!
