Contract manufacturers produce products under the label or brand of the company that hires them. Businesses often enlist the help of a CM to fulfill orders in periods of high demand and to reduce costs and time to market.
Utilizing a contract manufacturer is an extremely smart business move. Businesses across a wide range of industries turn to contract manufacturers to help with the production of a wide range of products and components.
Until recently, companies frequently outsourced their manufacturing to Asia. However, labor rates in Asia have risen steeply over the past few years, causing manufacturing costs to rise. This has bridged the gap between Asian and American contract manufacturers. In fact, when you consider manufacturing costs, customs fees, shipping charges, duties, and other fees, producing products in Asia costs about the same as producing them in the United States.
Outsourcing Production to a U.S. Based Contract Manufacturer
When outsourcing production to another country, it can be difficult to know for sure what’s happening with your order. Communication problems are common due to time differences and language barriers. Shipping issues can delay the time it takes to receive products. Products traveling from Asian countries must pass customs and businesses must meet strict requirements before receiving their product. Costs can add up if additional paperwork is required. Delays can lead to expensive storage charges while problems get sorted out.
There are numerous benefits to partnering with a U.S. based contract manufacturer. When you work with an American firm like Means Engineering, you’ll always know the status of your order. You’ll also have intellectual property protection. American CMs operate under U.S. law which ensures compliance with labor laws. When you outsource the work to another country, you risk contracting a firm that uses unethical labor sources.
At Means Engineering, we provide clear communication throughout the entire process. We work directly with you from concept to completion to ensure you get exactly what you want when you want it.
Means Engineering provides a variety of contract manufacturing services. Please contact us for more information.