When looking for a manufacturer to produce your product, it’s vital to consider the location of the facility. A lot of companies find themselves moving manufacturing overseas in an effort to reduce costs associated with production and labor, but this transition often comes with headaches and challenges that actually end up costing more in the long run. As a matter of fact, there are a number of benefits to choosing a US-based manufacturer over those found around the globe.
Reason #1: More Jobs for Americans
When you choose to keep your manufacturing in the United States, you’re supporting both the local economy where you’re manufacturing as well as the national economy. By helping American’s and their families thrive financially through good manufacturing jobs, the economy as a whole is stimulated. As it stands currently, manufacturing in the United States provides some of the best wages for industrial workers. The U.S. Bureau of Labor Statistics reports that industries that specialize in the manufacturing of goods pay an average salary that is $10,000 more per year than other working-class sectors like education and healthcare.
Reason #2: Reduced Delivery Time and Cost
By manufacturing in the United States, rather than outsourcing overseas, you’ll save a tremendous amount of time and money. While the costs of manufacturing itself may be lower abroad, the safety, quality, and efficacy often suffer. Moreover, the logistics and costs of shipping can become a nightmare. Often, the shipping time can be weeks or even months on the product you’re manufacturing overseas. Even then, it may get held up in customs for an indefinite period of time, keeping you from conducting business and making deadlines. Additionally, parts and products have to be inspected and tested upon arrival and many times businesses discover a large portion of their product does not meet the requirements and they cannot resolve it quickly with the international manufacturer.
Nobody wants to have to start issuing refunds on delayed shipments and out-of-stock products or have to work on expediting replacement parts. By shipping domestically, even if it’s across the United States, you’ll be able to save money by utilizing economical shipping methods that still won’t require as much lead time as importing overseas.
Reason #3: Decreased Lead Times
This goes hand in hand with the reduction of delivery time and cost. The goods have less distance to travel, arriving to you much faster. This can accelerate your sales process and enabling you to get money in your pocket sooner, rather than waiting an undefined period of time for product arrival. These shorter and more predictable lead times can also enhance customer satisfaction. The age we live in has conditioned consumers to expect products to arrive incredibly quickly, as companies like Amazon have shifted the culture of retail. To be able to cater to this culture shift, you either need to keep large warehouse storage of products, which requires significant overhead costs, or you need to be able to manufacture quickly and predictably. Working with a reliable US Based manufacturer affords the most benefits when it comes to lead times and predictability.
Reason #4: More Environmentally Friendly
Did you know that ocean transit shipping is one of the biggest emitters of greenhouse gasses? Reducing international shipping will not only reduce costs but also carbon footprint. Additionally, many US Based Manufacturers, like us here at Rutherford Manufacturing Group, are utilizing more green energy resources and methods of manufacturing to further reduce our carbon footprint. Additionally, many consumers are now factoring a company’s environmental standards into their purchasing decisions.
Reason #5: Higher Safety and Quality Standards
By using local manufacturers and being closer to your production facility, you’re able to better control the manufacturing process. If a problem were to arise, you will be able to catch and correct it much faster than if you order lots of inventory from an overseas facility. This provides a tremendous value in saved time and money. Additionally, when you work with an American manufacturer, you’ll be able to better understand the safety and quality standards that the manufacturer operates by, which often far exceed those of overseas facilities.
Reason #6: Better Customer Service
Customer service is one of the keys to success in business. When you’re dealing with customer service abroad, getting things done can often take longer and you may not be met with a friendly, service-minded support team. This can cause a disconnect between you and your manufacturer and creates a large margin for error. Additionally, working with a domestic manufacturer affords you the opportunity to understand their processes, meet their engineers, and be involved in the production of your own product.
Reason #7: Economic Benefits via US Taxes
When businesses outsource their manufacturing overseas, they pay taxes overseas. When businesses keep their manufacturing on home soil, they pay United States taxes. This benefits the US Economy in many ways. It doesn’t just provide jobs for American Families, but it supports the overall economy and infrastructure in the United States.
Reason #8: Demand for US Products
American consumers like purchasing products that are proudly Made in the USA. Many are even willing to spend more of their hard-earned dollars knowing that purchase fueled the American way. Consumers have a sense of pride in products with the Made in USA stamp, and many cite the fact they would like to see more of that.
Reason #9: No Language or Time Zone Barriers
Similar to the culture of customer service, language barriers and time zone differences can make communications a challenge. Clear communication is vital to the success of any project and managing a project with an overseas manufacturer may require you or your staff to handle business far outside traditional business hours. To add to the challenges, language barriers can leave room for error and misunderstandings. Issues like that on large-scale orders can be absolutely detrimental to a small business’ livelihood, and can easily be avoided by utilizing a local US Based Manufacturer.
Reason #10: Clear Rights to Intellectual Property
One of the scariest challenges for a creator, inventor, engineer, or entrepreneur is when someone steals your intellectual property. Fortunately, the United States has a fair amount of enforced laws regarding Intellectual Property, whereas many overseas options do not. Many novice and even experienced product developers have fallen prey to a low-cost overseas solution, only to find their products being manufactured under a different brand and sold online at a fraction of their retail price. No matter where you manufacture, be sure there is clear, enforceable documentation regarding your intellectual property to protect your brand.
Ultimately, the most important step you can take is to research your manufacturer, get to know their business, their operations, and their team. Building that type of relationship with your manufacturer is easier to do with a domestic option.