It’s no secret that China is the world’s factory. The country’s economy has grown rapidly in the past few decades. In fact, its share in global manufacturing output has been growing steadily at around 2% each year.
Its manufacturing goes from textiles to clothing, machinery, electronics, and even electronic assembly. As a result, manufacturers are adopting new technologies that allow them to stay on top of the game. It’s for this reason that China has become a world-class outsourcing destination.
If you’re thinking of joining the bandwagon, you absolutely should. There are many good reasons why you should outsource your electronic assembly in China. If you want to know what these reasons are, keep reading to find the top most beneficial reasons below.
1. Unmatched Expertise in Electronics
Many people are unsure about why product assembly in China is so popular. The answer boils down to the country having access to the resources required for manufacturing. Most manufacturers based in China have been doing this for generations.
They have a wealth of knowledge that surpasses what most other companies from around the world can produce. Does your company need a certain level of quality for its products? Outsourcing electronic assembly work to China would be a good idea.
Their highly skilled workers and advanced equipment mean top-quality production. China also specializes in developing affordable and reliable electronic products. When outsourcing, you get access to a team of seasoned experts that have years of experience in this field.
2. Availability of Different Types of Equipment and Facilities
China is a country with a large number of factories that offer electronic assembly services. There’s a high availability of different types of equipment and facilities. Hence, your company will be able to choose the right manufacturer for your production line.
You can focus on meeting customer demands by offering products manufactured as per their needs. In China, it’s easy to pull off product assembly, whether you need commercial or industrial goods.
3. Large Amount of Products Ready for Shipment Within 24 Hours
The fast-paced world we live in today has seen consumers demand products faster than ever before. As a result, many companies outsource to China because it offers quick turnarounds.
In most cases, companies can have all their products ready for shipment or delivery within 24 hours. This is one of the most significant advantages of outsourcing to China.
4. A Wealth of Materials and Services
China has a large number of suppliers, contract manufacturers, and logistics providers, all of which are necessary for running an efficient production line. Your business will not slow down even if you plan to increase the volume of goods produced for sale.
Companies that outsource their materials to China also get to save on storage space. You don’t need extra storage for materials and excess products. This makes manufacturing in China one of the best strategies.
5. Accessibility and Eco-Friendliness
China has expanded its economy to make it more accessible to people all over the world. This is possible due to low costs and simplified processes through automation and mass production.
Electronics manufacturing is one area where this is very efficient. The best part is that it makes consumer goods available at affordable prices.
For this reason, many countries outsource labor-intensive jobs to China to cut down on labor costs. You see, outsourcing eliminates the need for companies to set up manufacturing plants.
Even better, it’s increasingly eco-friendly. You eliminate the carbon footprint and wastage of materials that would be a result of manufacturing.
6. Quality Assurance and Quantity Control
Outsourced manufacturers are held accountable for providing quality goods and services. This is done by testing every product before it leaves the factories. They ensure that they meet all quality standards during transit and after delivery.
With this system, customers don’t have to worry about receiving faulty units. China is packed with highly skilled professionals that ensure quality control.
Another benefit of outsourcing your electronic assembly jobs to China is quantity control. You’ll be able to produce goods in the exact quantities you want, whether it is 1 or 1000, depending on your budget. With this flexibility, businesses save thousands by not having extra stock lying around.
7. Time Savings and Faster Time-to-Market
Outsourcing electronic assembly to China enables businesses to launch their products faster. Manufacturers in China can meet deadlines due to working at a fast pace. Companies outsourcing to China will have the advantage of launching their products on time.
This means that they can start marketing their goods early and increase sales before competitors even get a chance to enter the market. Furthermore, the turnaround time for getting samples is very short. The process makes it easy for businesses to test products before placing larger orders.
8. Free Trade Agreement (FTA) Benefits
Many high-tech companies outsource their manufacturing to China because of the FTA benefits. These include tax cuts, tariff remissions, and stimulus packages. Companies don’t have to worry about dealing with one country’s tariffs.
No tariffs will apply if they pass through another FTA member nation. At the same time, companies also enjoy zero customs duties on goods sold. This results in higher market penetration compared to non-FTA members.
9. Diverse Product Portfolio and No Minimum Order Quantity
China has one of the world’s largest populations. As a result, they have developed numerous manufacturing hubs. These hubs make it easier for businesses that outsource to access diverse markets.
If there is an increase in demand for one type of product, companies can easily scale up production. In China, facilities are already readily available and production can start ASAP.
Outsourcing electronic assembly to China is also ideal for start-ups and small businesses. They can do so without having to worry about meeting a minimum order quantity.
This allows them to experiment with a new product or design. Moreover, it also allows these companies to create personalized products at affordable prices.
10. Learn from Others’ Mistakes
Outsourcing your electronic assembly jobs saves you from making costly mistakes when entering a new market. Chinese manufacturers have years of experience. They also handle quality control and shipping operations.
They would make minimal to zero mistakes and not compromise on quality. This allows you to benefit from their expertise without worrying about major setbacks.
They have also established long-term relationships with shipping companies in America and Europe. They can negotiate for further discounts when sending goods to your country.
11. Reduced Overhead Costs
Companies that outsource to China can save up to 50% of overhead costs. This is money they would have spent if they were assembling them in their own countries. Low labor costs combined with low operating expenses make outsourcing effective.
Manufacturing in China is also possible because of the logistical efficiencies available. This includes easy access to seaports, airports, railways, and roads.
They make it possible for companies to ship goods quickly. Even when orders increase at the last minute.
At the same time, you can monitor product quality through tracking systems. Tacking in real-time allows you to receive fast feedback on all your production.
12. Lower Capital Requirement
Outsourcing electronic assembly to China leads to lower capital requirements. This is a huge benefit compared with setting up manufacturing plants locally. Because of the inexpensive labor market, it’s possible to hire hundreds of people at once.
This means that large orders are processed with minimal capital outlay. On the other hand, local manufacturing requires large amounts of capital. You have to hire or contract workers individually instead of hiring them by batch.
13. High-Tech Equipment and Affordable Labor
Advanced technologies are available for businesses that outsource their assembly to China. This is because of the availability of high-tech equipment in transferable conditions. The latter allows lower labor costs.
Electronics manufacturing jobs are being replaced by automation. It allows manufacturers to reduce costs further. In this way, companies can keep up with the competitive market without spending a lot.
14. Competitive Advantages and Business Growth
Businesses find it difficult to compete with bigger companies. However, by outsourcing their electronic assembly jobs to China, they can gain a competitive advantage. This is because of lower labor costs and proximity to the market.
Lower labor cost means that businesses have more affordable products than larger competitors. Having a warehouse in China means selling products to competing businesses at lower prices.
Outsource Electronic Assembly to China
Outsourcing electronic assembly can allow companies to focus on developing new technologies. Companies that outsource product assembly in China are able to benefit from the country’s massive market while still complying with their own innovation demands.
Are you ready to outsource your electronic assembly to China? Shield Works is the answer. We offer high-end electronic manufacturing services to businesses around the world. If you need a quote, simply contact us here.