Over two-thirds of all mobile handset devices were assembled and shipped from China in 2021.
While most of these units were due to the success of the iPhone, China has cemented itself as the global leader in the manufacturing and logistics industry. China has managed to dominate these sectors of the global economy for decades, transforming the Chinese economy in the process.
This dominance has left the Chinese manufacturing industry with the skills, expertise, and experience to be the world’s manufacturing hub. However, these facilities are also available for smaller businesses that want to outsource their product assembly needs to China.
Want to learn more about the product assembly services China has to offer? You’re in the perfect place. Here’s everything you need to know.
The Manufacturing Industry
The Chinese manufacturing industry is incredibly diverse in its offering. The entire industry is designed to be the ultimate one-stop shop for all your manufacturing and logistics needs. Here are the three different kinds of services that you can leverage to optimize your business.
Warehousing and Distribution Services
One of the main advantages that China has over the rest of the world is the fact that they have the logistics infrastructure to support its manufacturing sector. This allows businesses from around the world to manufacture and ship their finished products from China to every corner of the globe.
China makes use of the latest technology to help streamline the entire process. These technological advancements have left it with some of the most efficient ports and airports in the world. Despite its location, China can effectively ship to every country in the world.
China Product Assembly Services
Product assembly services can range from company to company. However, these services are vital to businesses that want to outsource the assembly of their products.
The Chinese market has one of the leading supply chains in the world. This means that there are tons of suppliers around China that can deliver various components and parts to the assembly facility just on time. This kind of logistics allows parts to arrive as they are needed on the production line.
Since they arrive when they are needed, there is no need to store them on site. This helps save space, time, and money while keeping things as streamlined and efficient as possible.
Product assembly is one of the most common kinds of assembly services. This service includes working with a wide range of materials to help assemble your product for you. This includes materials such as plastic, metal, carbon fiber, wood, composites, textiles, and even cardboard.
Electronic assembly is also incredibly popular in China. This is why companies like Apple use Chinese facilities to assemble their premium devices. This service includes a wide range of services, such as assembling wiring, connectors, clamps, switches, and various kinds of testing.
Assembly facilities have the tools to help with circuit testing, final product testing, and lifecycle testing. This can help ensure that your product is built to your satisfaction before it leaves the production floor.
Mechanical assembly is riveting, tapping, drilling, and staking. This kind of assembly is more technical in nature but can help ensure that your mechanical products are working exactly how they are meant to.
While many may not think of packaging being part of the assembly process, it’s actually the most important part. The packaging that you use for your product can help set it apart from the competition. This plays a big role in your company’s branding and can be the difference between you and your competitor.
Benefits of Product Assembly Services in China
The Chinese manufacturing industry is the leading market for all your production and distribution needs. As the largest production industry in the world, the Chinese market can offer a level of service, quality, and affordability that you can’t get anywhere else. Here are just a few reasons why you should consider outsourcing your product assembly to China.
Strong Manufacturing Industry
As mentioned above, the Chinese manufacturing market is the most successful and dominant in the entire global economy. China has leveraged its favorable labor market and economic stability to dominate the industry for the last few decades. This has led to the evolution of the local sector, making it one of the most technologically advanced in the world.
It’s no secret that the success of the Chinese manufacturing market was heavily based on its low wages. However, the Chinese government, along with the local industry, has managed to evolve the entire industry. This evolution has left the market with some of the most technologically advanced systems and infrastructure.
This infrastructure has made China a global leader in manufacturing, product assembly, and logistics. This makes China the perfect partner to get your products sourced, manufactured, assembled, stored, and transported around the world. The one-stop shop nature of the Chinese market allows you to optimize your entire organization while managing to save on total costs.
Significantly Lower Production Costs
China became the manufacturing hub of the world because of its labor market. China is home to over 1.6 billion people that form part of a competitive labor market. The economic and political landscape in China has ensured that wages have grown but remain fairly low compared to other countries around the world.
While the minimum wage across Europe can range from $7 to over $20 an hour, the average wage across China is still below $3. However, the purchasing power of the local currency makes up for this difference. This makes China the perfect market to outsource your manufacturing to.
Stable Economic Environment
Despite the economic uncertainties over the last few years, the economic environment in China is quite stable. The government has included new legislation to make foreign investment easier. This has made the country perfect for investors looking to diversify their portfolios.
Favorable Local Currency
As mentioned above, China has a favorable local currency. The exchange rate is controlled completely by the national Government, allowing them to set the price according to their foreign investment needs at the time. While this is controversial, it helps strengthen the purchasing power of the local currency by insulating it from the rest of the global economy.
There are many benefits to controlling your currency this way. Besides allowing you to make investing more desirable to investors, it can also help investors make the most of their investment. This means that the same investment amount can stretch a lot further when working within the Chinese market.
Excellent International Logistics
China has evolved and upgraded its production facilities over the years. However, the country has made massive strides in other areas of the economy as well. The Chinese logistics and transportation sectors have been completely overhauled to help boost the local manufacturing industry throughout the country.
This has left China with some of the most efficient and productive ports in the world. In addition to this, China has state-of-the-art highways for logistics by road. China is also working on new highways to help them deliver goods by road throughout Europe.
The logistics and transportation services available in China make it the perfect place to base your international distribution center. However, outsourcing your production to China can allow you to produce and distribute your products from China. This can help make the entire process more efficient, saving you money in the process.
How To Find the Right China Product Assembly Service
Finding the right manufacturing partner is an important decision. This is because you want to find a long-term partner that can meet your organizational goals. Here are a few tips to keep in mind when looking for the right product assembly service to partner with within China.
1. Consider Your Needs
There are hundreds, if not thousands, of manufacturing plants, factories, and production facilities across China. While this does give you a lot of options, it can also make it difficult to find the right partner for your business.
Different companies have different needs. Figuring out exactly what you need from a manufacturing partner is the best place to start as it can help you filter out services that you may not need. While it’s beneficial to partner with a capable company, it can also be a waste of money to pay for services that you do not necessarily need.
It can also be beneficial to hire a consultant that’s experienced in the local manufacturing industry. These professionals are experienced within the Chinese market and can help you find the right partner for your company. These consultants aren’t free, but they can help you secure a long-term partner, saving you a lot more time and money in the process.
Once you have a few companies shortlisted, compare the capabilities of each manufacturing company. Compare their fees but also look through each facility to examine their scalability. This is important because you want to find a partner than can seamlessly scale up production when demand increases.
Having a partner that can simply increase production quickly can help you keep up with demand around the world. If you were to partner with someone that could not scale up production, you would have to stop and find a new partner. Finding and switching manufacturing partners will take time and cost you potential sales while you’re busy handling the transition.
3. Track Record and Experience
As mentioned above, it’s important to look at a manufacturer’s scalability when evaluating the company. However, their track record is equally important. Don’t be shy to reach out to previous clients that they may have worked with to see what it’s like to work with them.
Finding and securing a manufacturing partner is probably one of the most important organizational decisions you will make for your company. This is especially important if you’re outsourcing production and trusting the manufacturing facility to produce and distribute your product on your behalf.
4. Range of Services
Not all production and manufacturing services are the same. This is why it’s so important to take a good look at the company before making your final decision. While some facilities only offer contract manufacturing, others may offer precision product assembly as well.
Partnering with manufacturing companies that offer more than one service is ideal as it also futureproofs your relationship. Even if you don’t need that particular service right now, the fact that the company can do it showcases how they still support you as your company grows.
5. Start Small
When you’ve found the perfect manufacturing company, start small with your first few orders. This can help you spot things you may want to improve on before you start production on a larger scale.
Even the smallest of delays can end up costing you money. Whether it’s an error in design or production, stopping production for even a second costs you sales. This is why it’s so important that you take your time to streamline every process and spot all the errors as quickly as possible.
Outsource Your Product Assembly
China is the manufacturing and logistics capital of the world. As a leader in the manufacturing industry, China is home to some of the most productive and optimized product assembly facilities. With the right partnerships, you can leverage this experience to grow your business around the world.
If you want to learn more about how you can optimize your production in China, Shield Works is the best place to start. We specialize in helping you outsource your production and product assembly needs in China to help you cut costs and maximize efficiency.
Interested in learning more? Contact us today.