Outsourcing product assembly to China can help grow your business and increase your bottom-line.
It’s a step that many companies are taking to help bolster their manufacturing process, reduce turnaround times, and save on costs.
But finding the right product assembly partner isn’t always easy and problems often arise due to business misunderstandings. To mitigate any issues there are some important things to know.
After all, is outsourcing really worth it for your business? And how do you find the right assembly partner in China? Keep reading to find out.
Benefits of Outsourcing Product Assembly
More and more businesses are opting to outsource their product assembly process to China. Why? Because it provides several benefits over the traditional in-house approach.
Here are some of the main benefits of outsourcing product assembly.
Assembling complex products often requires a hefty investment. For example, many electrical products need to be assembled by expert technicians. This means companies will have to hire new talent to get the job done.
On the other hand, rapid assembly may require expensive machines. Investing in this kind of equipment is expensive.
Assembly partners already possess the correct expertise and equipment to get the job done. Outsourcing this process allows companies to save on these large costs.
Outsourcing partners are experts at product assembly. They understand how to complete the process with minimal difficulty.
Access to Experts
Product assembly can be a complicated task. Depending on the product, it may require expertise beyond the capacity of your business. This is where an assembly partner comes in.
Product assembly companies already have the talent and knowledge to complete the assembly process. Their technicians assemble goods all day long and they know exactly what they’re doing.
Shorter Lead Times
Using an assembly company can decrease your lead time. In-house turnaround times are generally much longer, and, as everyone knows, time is money.
Assembly companies are experts at what they do. Their processes are refined and their technicians work fast.
With the right outsourcing partner, it’s easy to scale up your assembly. Scaling-up in-house requires investing in more machines and hiring more employees.
Assembly companies already have the necessary equipment and technical knowledge. They will be happy to take on more work. And when you need to increase production, you don’t have to worry about logistical headaches.
Things to Know About Product Assembly Outsourcing
When it comes to outsourcing product assembly, there are some important things to understand. It all starts with drawing up a detailed strategy.
Define Your Strategy
Having a proper plan is crucial for the success of any new project. After deciding to outsource product assembly to China, there are several things to think about. You need to consider all the variables before beginning the transition.
The first step is to bring together all of the business leaders. Ensure everyone agrees about the benefits of outsourcing assembly. Once the leaders are all on board, set up a team to manage the project.
Remember to plan for the long-term when analyzing the financial benefits. A long-term approach is important for the success of your business.
Understand the Costs
Before outsourcing product assembly, you need to understand your in-house manufacturing costs. This helps when you’re choosing and comparing different assembly partners.
In fact, failing to understand your current costs of assembly can result in more money lost.
Choose Your Partner Carefully
There are many product assembly companies in China, so which one should you choose? The truth is that not all partners are created equal. Quality is a sliding scale.
When searching for a partner, you should keep in mind your own business needs and goals. Find a partner that specializes in the service that you need. And remember to read past all the showy sales speak.
Find out whether their services are cohesive enough to help you save costs. Some assembly partners are more streamlined than others.
Protect Your Intellectual Property Rights
Keeping your intellectual property safe is important for the success of your business. Outsourcing to China may be appealing, but remember to do your due diligence.
If your intellectual property is stolen or leaked, this could be a big set back to your business.
It’s important to ensure that your chosen partner’s data systems are secure. You should also do some research on the intellectual property laws in China.
Remember, the size of your outsourcing partner matters. If you’re a medium-sized manufacturer, look for a partner of similar size. Larger assembly companies often struggle to service smaller accounts.
A large scale assembly company might cause delays to your production line. To avoid this, find an assembly partner in China who services businesses of similar sizes to yours.
Many problems that occur when first outsourcing assembly to China are due to poor communication. This usually happens due to the language barrier and differences in business culture.
In China, most staff don’t have a high level of English. It’s mostly sales members that can communicate proficiently with customers.
The good news is, if you’re aware of these issues beforehand, you can mitigate problems down the road. One way to ensure success is by writing up the specifications of your business agreement in Chinese.
Let Shield Words Take Care of Your Product Assembly
Outsourcing your product assembly to China is a big step but it comes with a lot of benefits.
Before making the switch, it’s important to have a clear plan in place. Assemble a team to handle the project and choose a partner that meets your business’s needs. Lastly, remember to ensure the protection of your intellectual property.
If you’re looking for an outsourcing partner in China, look no further than Shield Works. We’re a British-owned assembly company based in Zhuhai. We’re driven by quality and we offer customized solutions. Contact us today.
You’ve just come up with a genius blueprint and need to implement it but don’t have the tools or the know-how to make your design come to life. What should you do? Where do you go from there? OEM Original equipment manufacturers are some of the most important organizations in the world.
The parts they make and the designs that they produce to keep the world as we know it spinning every day. If you were wanting to learn more about OEMs and what they do, you’ve come to the right place.
What Is an OEM Original Equipment Manufacturer?
An OEM (or Original Equipment Manufacturer) makes OEM parts or components of a part for their buyers. These buyers can be separate companies that sell those parts to consumers or other companies under their own brand.
As an example, a manufacturer of factory equipment might assemble the equipment. From there, a lot of the parts were manufactured by an original equipment manufacturer.
What Do OEMs Do?
The primary function of original equipment manufacturers is to produce new parts for a product, but they do much more on top of that. OEM sell parts to consumers or businesses seeking replacement parts for products they have purchased.
These parts can be sold through the market or vendors, or to business through business-to-business sales. Some companies will even set up partnerships with OEMs in which the OEM will manufacture the part and send it to the company for them to re-brand and use.
Who Does Business With OEMs?
A major source of business for OEMs is the work that they do with value-added resellers. Value-added resellers are companies that purchase OEM parts and upgrade or augment them to add more value before selling them.
The value that VARs add to these products is usually in the form of software upgrades or special features. VARs also take these products and bundle them together to make new products to sell under their own brand.
In most cases, original equipment manufacturers work in a business-to-business capacity. The last few years have seen increasing amounts of OEMs that are beginning to sell replacement parts directly to consumers.
There are two main industries in which consumers are purchasing OEM parts. They are the technology industry (particularly computers) and the automotive industry.
Both industries have a large number of people who work on and build their own devices or machinery. It is less expensive for them to source the original part and complete the work themselves. It also keeps the warranty for their device or machinery in place.
Benefits of Original Equipment Manufacturers
There is a multitude of benefits that come with getting new parts from the original equipment manufacturer:
- Top Quality: There are a lot of ways to get replacement parts, but nothing will beat the original equipment manufacturer part. It is identical to the original part that it is replacing. Though it may cost more than other options the quality is better.
- Durability: OEM parts are more durable. They come with the added benefit of knowing the materials used to make them, and they tend to be better made.
- Lifespan: OEM parts last much longer before requiring a replacement part. The processes used to make them and the materials that make up the parts are both top-notch.
OEM parts are made specifically for the product that is being used and will work perfectly as a replacement. They are made to precise specifications and most times they come with lifetime warranties. If the part does go bad and requires a replacement that replacement part can be obtained for free.
These benefits also spill over into the bottom line of your business. Working directly with original equipment manufacturers can save you money and time.
By working with an OEM, a company can save money in investment into the manufacturing of the parts they need. This also shortens the turnaround time that it takes for producing those parts.
Other OEM Services
There are a lot of other services that original equipment manufacturers provide that can be a valuable asset to you and your company.
Some OEMs are able to customize procedures and create specialized in-house processes for manufacturing OEM parts for you and your business.
Depending on what you need, original equipment manufacturers can produce new innovations that you draw up. OEMs are able to create new equipment and parts for whatever your needs may be.
OEMs can also be a great resource for outsourcing important tasks or parts of the manufacturing process. This can be especially important if you wish to keep your design safe and secure.
Best of all, original equipment manufacturers are able to implement these specialized processes at their own manufacturing plant. This can give them an opportunity to apply their expertise and make manufacturing efficient.
Another service that OEMs can provide is helping you to secure intellectual property patents. This is a great idea if you develop new ideas and innovations. Doing this protects your ideas from being stolen and implemented by other manufacturers.
OEMs work with companies that will look after your intellectual property. It doesn’t matter if it is copyrights, trademarks, or patents.
How to Start
Now you know all about OEM original equipment manufacturers and how they can benefit you. Whether you are a business using a certain product, a VAR looking to upgrade parts, or a consumer trying to source a replacement part, OEMs are here to help.
Get started today with all of your original equipment manufacturing needs.
When it comes to manufacturing, China is the dream destination. The sheer size of the country and its population make it a natural choice for manufacturers looking to produce on a large scale.
However, finding the proper manufacturer in China can be tricky. This is applicable if you’re unsure what you’re looking for or where to start your search. Many people believe Chinese manufacturing to be sub-par, but this simply isn’t the case.
This article will cover some tips that will help you locate Chinese manufacturers that are right for your company!
When you’re keen on reading more about the utility & power of Chinese manufacturers, scroll down.
What Is Chinese Manufacturing?
In short, it’s the process of outsourcing your manufacturing to China. This is done by hiring a factory in one of China’s numerous cities and working with them on creating a product that meets your specifications.
In some cases, manufacturers may be able to hire for specific tasks. While other times, they will manufacture entire products from start to finish.
What Are the Benefits of Moving Manufacturing to China?
When you outsource production overseas, several benefits come along with it. This list is not exhaustive by any means, but it does hold evident benefits of moving your factory.
Your costs can decrease substantially. This is because China has lower minimum wages than many industrialized areas like Japan or Germany. While this isn’t true across the board (China has been increasing its minimum wage in recent years), it remains an essential factor.
Labor costs can be lower than domestic costs since most employees prefer working for foreign companies and often accept a smaller salary. This is due to several factors such as improving their resume, learning English, and skills that may transfer over into other industries later on.
Chinese manufacturers can provide you with a great deal of value for the price. Compared to companies in other countries, China’s manufacturing industry is very cost-efficient. This makes it easier for your company to profit without charging customers more or cutting corners on quality control.
China’s sheer production scale means that factories have access to technology and resources unavailable elsewhere. Since there are many factories in one country, they can share ideas and implement new technologies faster than suppliers from different nations could ever hope to!
Many Chinese factories can produce products quickly and in large quantities. If you’re looking for a company that can churn out your product at high speeds and low costs, then look no further!
Why Do People Think Chinese Manufacturing Is Bad?
While Chinese manufacturers are highly sought after for their low costs and high productivity, there also exists a lot of stigma surrounding them.
Some people think that Chinese companies aren’t capable of producing products with the same level of quality as many other countries do.
However, this belief doesn’t accurately represent contract manufacturing China hubs. Chinese manufacturing is top-notch and it works at scale, unlike other locations.
China is most probably your best bet for manufacturing in the 21st century. With so much experience and resources, China can make any project come to life.
When looking for a Chinese factory to outsource your production line to, there are several factors that you’ll want to take into account:
Communication is an essential factor when it comes to any business transaction. If your supplier can’t answer e-mails or phone calls promptly, then don’t expect anything good to come from working with them!
How does the company communicate with its customers? Remember, though, quality communication doesn’t necessarily mean they’re fluent English speakers (although this certainly helps). It’s more about finding someone who will respond quickly and clearly.
Many Chinese factories focus on creating goods such as consumer electronics, toys, packaging materials, and more.
What kind of products do they specialize in producing? If you have a specific product in mind that you want to manufacture, it’s essential to find a familiar supplier with your industry.
This may be one of the most important factors to consider when choosing a Chinese factory. You don’t want your reputation or brand name to be tarnished by poor-quality goods! You must inspect samples of their work before making any decisions.
What is the quality of their products?
Do they have experience working with companies from other countries? More and more businesses are outsourcing production overseas, so your chosen supplier likely has experience collaborating with people from different parts of the world.
However, suppose you’re looking for someone who has worked specifically with other brands operating in your industry. In that case, you’ll need to find a company that has experience working with businesses similar to yours.
How Do I Find a Supplier?
Now that we know some of the benefits of using Chinese manufacturers, it’s time to learn to find one. The best way to start is by doing online research or contacting an agency specializing in finding suppliers for foreign companies. However, there are also a few things you can do on your own:
Look for Trade Shows
Trade shows are a great place to start if you meet with potential suppliers face-to-face. They will have representatives from many different factories in attendance so you can ask them questions and get a feel for what they’re capable of.
Use a Search Engine
If you’re looking for a specific type of supplier, then using a search engine is the best way to find them. Enter in what you’re looking for and your location (or the location of the factory), and Google will do the rest!
Ask Friends Or Colleagues
If you know someone already doing business with a Chinese manufacturer, ask them for advice. They’ll likely be able to recommend a few good factories that have worked well for them in the past.
In essence, China is a great place to find manufacturers for your business. They can offer lower costs and increased production speed, which will ultimately help you succeed as an entrepreneur.
How Do I Vet Great Manufacturers From Bad Ones?
There are several factors involved when looking at Chinese manufacturers. Nevertheless, here are some key points:
Price is one of the most important factors when choosing a manufacturer in China. If your product is new to the market, you will likely not have much competition. Therefore, you can afford to charge customers more for what they’re getting.
Still, there are some cases where this isn’t true (such as with commodities). This means you need to find someone offering competitive prices with high-quality products.
No matter how good your supplier does on price, if their result doesn’t meet industry standards, then it won’t do any good! Quality control matters.
Make sure whoever you work with has an extensive history of OEM manufacturing items before signing control of production. This is so that they know exactly what needs to be done once tasks are handed off between each stage of production.
Product assembly in China is quality-oriented. Thus, this part of the equation is a given.
Even if you have a good relationship with your supplier and usually produce high-quality products, some exceptions will likely be. You’ll want to choose a manufacturer in China who is willing to work with you on fixing errors.
This should happen as soon as possible so that customers don’t get upset by poor service! China assembly service is one of the best, so keep that in mind.
In the end, finding the right Chinese manufacturers should always come down to choosing someone who can meet all of your company’s needs. This may take time, but it’s well worth doing due diligence before moving forward. Outsourcing manufacturing overseas has enormous benefits for companies looking to grow!
A successful business owner must find their niche market. They must know what product/service combination will yield the most sales.
Outsourcing to a Chinese manufacturer is often the answer for businesses that want to keep costs low. But also to remain competitive in their industry.
Manufacturing Done Right
When looking for a Chinese manufacturer, research is essential to find the best partner possible.
There are many things to consider, such as price, quality control, and service, but if you take the time to find a supplier that meets all of your needs, then you’ll be able to succeed as an entrepreneur.
If you’re looking for product assembly/contract manufacturing, get in touch with us, and we will take care of you.
Chinese trade has expanded at a breakneck pace over the last several decades. In 2018, China exported a whopping $2.49 trillion in goods. The value of China’s exports always surpasses their annual import cost. This makes them a powerhouse of manufacturing and industry. Chinese factories were not always positioned like this, though, and it took a lot of growth to get there. So how did that all change?
We’re going to break down how product assembly in China got to where it is today and why it is still leagues beyond anyone else in the world. Stay till the end to see where they aim to go from here.
The History of Chinese Factories
During the period from 1992 to 2002, China implemented a series of incentives that were very attractive to foreign companies and investors. This alone had a massive impact on the growth of China’s manufacturing sector.
The term “made in China” was first coined in the early 1940s and this was because of a boycott of Japan and foreign-made products. China’s economy lacked the structure for efficient industrialization and they wanted to change that.
Chinese citizens wanted more opportunities to grow domestically. Boycotting these foreign-made products gave them an opportunity to take part in what they dubbed the National Salvation Effort.
What Was the National Salvation Effort?
This was a movement that opposed the Nationalist Government and demanded a stronger resistance to the expansion of Japan. As a whole, the National Salvation Movement was a coalition of leftist groups, albeit a loose group.
It included members of the Chinese Communist Party, including those who were both open and secret participants.
Why is this relevant? It was a crucial step in positioning China as a powerhouse, and not just in the manufacturing sector.
China Is the Factory of the World
Cheap and plentiful labor primarily aided in China’s rise as the ‘world’s factory.’ Besides this, an abundance of raw resources and low environmental regulations made it easy for them to grow. And, lest we forget, China’s extensive workforce is only matched by the quantity of land at their disposal.
If we’re talking about labor, we must acknowledge that in 1980, the average Chinese annual salary was between $416 to $508. On the other side of the world, the average American was earning 40-50 times that amount.
This salary discrepancy was one of the biggest draws for global corporations, as it meant higher profit margins. Additionally, China’s proximity to the Four Asian Tigers made it easy for global industries to transition.
China began a series of market reforms in the late 1970s that established the real groundwork for change.
Because of rural land reforms, farmers benefitted more from their produce, which allowed more people to seek work in major cities.
In order to entice foreign investors, the Communist Party began establishing special economic zones. These zones had market-friendly policies that massively benefitted businesses and traders.
With this reform came significant growth, and today, China has several of these manufacturing hubs. Each one specializes in various parts of the supply chain.
For example, Guangdong focuses on electronics. The eastern provinces near Shanghai specialize in daily goods, mechanical parts, and medical equipment. The cities of Wuhan and Chongqing are known for their production of chemical products and auto components.
Why China Is Still Considered the World’s Factory
China has two major advantages as a manufacturing power, both of which have been demonstrated in the last year. To start, China’s industrial foundation is unrivaled in terms of range and depth.
With the capacity to produce anything from low-cost footwear to high-end biotech, China’s grip on the supply chain is unmatched.
China’s combination of manufacturing hubs, improved factories, and first-class infrastructure has made them even more competitive. This is true despite recent wage growth.
The Top Contributing Factors
Despite a change in international trade policies, China still holds most of the world’s manufacturing power. This is largely due to a few, consistent factors.
China’s Business Ecosystem
Industrial production doesn’t occur in a vacuum. It’s supported by a network of suppliers and distributors, as well as component manufacturers, government agencies, and customers.
Through competition and collaboration, these groups all become involved in the manufacturing process.
China’s business ecosystem has evolved dramatically in the last 30 years and there are a few noteworthy changes that stand out.
First, some areas have remained hubs for production. Shenzhen is an example, as it produces a substantial number of goods for the electronics industry. Overall, this domination of the market makes it difficult for anyone outside of these hubs to stand out.
Second, China boasts a technical workforce that surpasses any other. They also have a chain of assembly providers that seem to exceed the bounds of human capacity, making them the powerhouse we know today.
Taxes and Tariffs
Another significant factor was the export tax rebate China introduced in 1985. They set this into motion to boost the competitiveness of its exports. It effectively abolished double taxation on exported goods.
Additionally, any customer-based products were exempt from import taxes if they were coming from China. These lower tax rates helped keep production costs low and attracted businesses eager to make low-cost items.
Currency and Wages
Despite the US’s concerns that China manipulates its currency for national gain, the weaker yuan does make Chinese exports more competitive. Or rather, they become cheaper to buy with other foreign currencies.
Predominantly, it is a win for consumers all over the world, as Chinese products become significantly cheaper because of this.
And, if we’re talking about money, we can’t disregard the impact that China’s law of supply and demand plays on its worker wages.
Because the supply of Chinese factory workers exceeds the demand for work, salaries remain low. Furthermore, until the late twentieth century, most of the Chinese population were considered rural or ‘lower to middle class.’
Internal migration reversed the countries’ skewed rural-urban distribution. As the rise of industrial cities made more work available, there was a natural pull towards urban living and development.
A Working Example
Let’s have a look at how the supply of face masks gave us a particular illustration of China’s strength. In 2020, at the start of February, it made about half the world’s supply of masks, around 10 million a day. Within a month of that, output increased to nearly 120 million.
It would become excessively costly if every country were to develop its own production capacity to match rising demand. Most countries simply do not have the infrastructure and resources.
China still does manufacture a bulk of the face masks required for the pandemic. Any country hoping to make its own masks needs companies with expertise in textiles, chemicals, metallurgy, and machining.
They also need a good, consistent supply of raw materials, adequate manufacturing space, and qualified personal. Never mind the money required to keep it all running smoothly. Because of this, it’s impossible to start from scratch, which is why China had such a good head start.
All those things we’ve just mentioned? We know they were already in place. The cogs of China’s manufacturing machine were already well oiled and geared up to take on the load.
How Does China Want to Grow From Here?
So, while we know China is equipped to handle anything thrown at them from a manufacturing standpoint, where do they want to go from here?
Based on everything we’ve seen, China aims to move into more advanced lines of production. The industries they’ve pioneered till now have simply been a springboard.
As education and salaries grow, as they should do, that initial cost advantage shrinks. The aim for China now is to focus on domestic consumption and leave the chore of mass-producing, cheap, and labor-intensive items to others.
This gives them the space to focus on their own citizens. There has always been an aim to grow socially and economically but they intend to do this while maintaining a hold on their manufacturing.
On pure scale alone, China remains unopposed. We’re likely to see a massive change in time, but China’s manufacturing power is likely to remain unchecked.
There is a considerable new focus on technology and automation in particular. With the promise of robotics and AI, there is room for people to concentrate on more skilled pursuits.
Automation will revolutionize the way we make goods, even if we’re not quite there yet.
Quality Contract Manufacturing in China
As an OEM manufacturer in Chinese factories, we have the knowledge and expertise to offer exceptional service and goods delivery. We know how the system works, and we are proud of the last 16 years of service we’ve conducted in China.
We value quality, innovation, integrity, and excellence in all things, and aim to always offer the same to you.
Contact us today to see how we can help you with your OEM manufacturing, fulfillment, and precision assembly needs.
Globally, companies realize the benefits of manufacturing their goods in China. However, you might wonder which industries benefit the most from product assembly there.
Today, we’ll take a look at the industries that benefit from manufacturing in this nation. Keep reading to learn more about which industries benefit the most from product assembly in China.
China and the Global Marketplace
Around the world, there’s a wealth of goods that were made in partnership with a China assembly service. Some companies manufacture their goods in China because of the abundance of affordable employees.
Also, China’s ecosystem of suppliers, component manufacturers, and distributors has evolved. Now, the nation is a more cost-effective and efficient place to manufacture many products.
Years ago, many individuals migrated to China seeking work. Now, the labor pool in China enables the region to produce goods cost-effectively and in bulk.
Furthermore, China factories can meet any seasonal industry requirements. They can even help your company to meet unexpected fulfillment needs for sudden rises in demand.
Doing Business in China
Manufacturers in China don’t operate in a silo. Instead, they rely on a network of competent business partners. These partners include:
• Component manufacturers
• Government agencies
Together, these partners facilitate efficient production through competition and cooperation. In fact, the business ecosystem for product assembly services in China has evolved considerably over the last three decades.
Big Players in Product Assembly in China
Shenzhen borders Southeast Hong Kong. The area has become a hub for the electronics industry.
It’s cultivated an effective ecosystem for meeting companies’ manufacturing and supply chain needs. This ecosystem includes component manufacturers.
Also, the area’s factories employ affordable workers. However, part of the local workforce also consists of a highly skilled technical workforce.
Area manufacturers also partner with assembly suppliers. Moreover, they work closely with their clients.
Some of the most well-known and biggest brands in the world have realized the advantage of manufacturing and product assembly in China. For example, Apple Inc. leverages China’s supply chain efficiency. The partnership helps to keep the company’s costs low and its profit margins high.
FoxConn Technology Group is another major company that operates in China. It works with several suppliers and manufacturers of components in the area.
In fact, several industries rely heavily on OEM manufacturing in China.
Industries That Rely on Product Assembly in China
The global economy is expanding. Simultaneously, companies are struggling to meet the increasing demands of consumers.
As a result, a growing number of companies around the world are outsourcing manufacturing and product assembly to China. By doing so, these companies can afford to produce more products. More importantly, they can keep pace with rising consumer demand.
Still, there are some industries, in particular, that benefit from partnering with China. Let’s have a look at them.
Electronics are one of the top goods exported with the help of manufacturing in China. In the United States, for instance, consumers are passionate about electronics.
The citizens of China represent only about 40% of end-users of electronics. Most of the electronics manufactured in the country are for export.
Some experts forecast that reliance on product assembly in China will continue to grow over the next decade. Around the world, there’s no sign that the demand for consumer electronics is slowing. As a result, a growing number of electronics companies will likely turn to China to support their operations.
A considerable number of medical equipment firms source product assembly in China. The devices designed by the medical field save lives. They also help to improve the quality of life for patients.
Their partnership with regional manufacturers helps to curtail costs. Most importantly, medical equipment companies continue to work with manufacturers in China because they consistently receive high-quality products.
There’s no place on the planet that doesn’t use plastic goods. No matter where you go, you’ll see goods made of plastic. In part, companies can keep up with the demand for plastic goods because of their relationship with manufacturers in China.
Many of the things that people use daily are a result of contract manufacturing in China. There’s plastic in nearly every tool, toy, and component.
Factories in China continually output plastic toys, electronic devices, and parts. It’s in all the top manufactured products in various consumer industries.
People rely on these goods every day. As a result, the plastic industry’s reliance on OEM manufacturing in China will likely continue.
Factories in China produce an incredible amount of clothing and textiles. In fact, clothing and textiles are the top exports in China.
Many United States companies sell textiles made in China. Manufacturing in China is a vital part of the fashion industry.
As with other industries, manufacturing in China enables companies to produce high-quality, affordable goods. Moreover, the production capacity of OEM manufacturers in China enables the fashion industry to meet the ever-increasing speed of today’s fashion cycles.
A Trusted Manufacturing Partner in China
Now, you know a bit more about which industries benefit the most from product assembly in China. Still, have you ever thought about how your company could take advantage of working with suppliers and manufacturers there?
If you want to learn more about working with companies in China, Shield Works Precision Manufacturing can help.
Our warehouse and manufacturing facility is located in the heart of Zhuhai City near the South China Greater Bay area. We provide custom OEM manufacturing, assembly, and warehousing. For more than 16 years, Shield Works Precision Manufacturing has worked with a growing international client base.
Please feel free to contact us today to learn more about risk-free, high-quality manufacturing solutions in China.
For many years, China has been the manufacturing hub of the world. Last year, this production rate shrank, partially due to the impact of COVID-19. This means that China needs your business and there has never been a better time to manufacture in the country. If not you don’t know how to benefit, then we can help. Read on as we discuss why you need to outsource OEM manufacturing to China.
One of the more obvious and important benefits of OEM manufacturing in China is the reduction in cost. The bottom line is that the better your product and price, the more units you will sell. Even if you are putting out a high-end brand, then you can increase your profits by lowering manufacturing costs.
Domestic manufacturing sounds good in theory. However, it has increased overheads that do not exist in China. This makes locally produced products expensive and is why manufacturing in Western countries has declined in modern times.
Of course, you will have to pay to ship the products and pay import tax. But even if the overall price works out fractionally less, you are still saving. Over time and in increased volumes, you can expect this to be a substantial amount added to your balance books.
When OEM manufacturing in China, many manufacturers will offer you a warranty for a given period of time. This can set your mind at rest when ordering products from across the world. If a product has issues, then you can ask for a replacement or ask for a solution to the problem.
Quick Output and Turnaround
China creates goods for companies all around the world. This means they have scaled up their manufacturing to unprecedented levels. If you need a large number of goods in a short time, they will deliver them.
These factories will have produced similar items to yours before. That means they have all of the procedures in place to get things manufactured quickly and on time.
One of the arguments against this is the unfair conditions of Chinese workers. However, if you research the plant you are using you will be able to find out if workers are paid a fair amount and treated fairly. You should also take into account that the attitude to work in China is culturally different from that in the West.
Manufacturing in China brings with it the exceptional service inherent in their culture. Even for smaller businesses, you will get the same treatment as a larger, global operation would.
This service also carries through to product support. When you contact an OEM manufacturer’s support team, you will get to talk with their engineers. Speaking to their technical team cuts out the middlemen, meaning you can make informed decisions and get great advice on how to improve and refine your product.
By no means do you need to counterfeit a product. However, when manufacturing in China you can specify things you like about one item and have them replicated.
Perhaps you want to include a feature you have seen on someone else’s products or use the same dimensions. By discussing this in advance, Chinese manufacturing companies will be able to arrange this for you easily.
This is how a product evolves. By taking something great and improving, you have the opportunity to make it even better. With each iteration of the item, you can expect the quality to improve as well.
Lead Time Reduction
When you outsource OEM manufacturing to China, you have a number of options to help you reduce lead times. One way is to use automation software to manage your inventory. This will ensure you stay on top of how much stock is needed, ordering at the precise time as you begin to run low.
The other option is to order regularly and consistently. This will mean a reduction in delivery and you won’t miss out when orders run low.
Expansion and Diversification
Outsourcing allows you to add new product lines and verification to your portfolio. This has been something you have been thinking of for a while but did not think possible with your current manufacturers. All of this can be done while keeping prices low and with better production.
This can also help you engage more international markets. You can ship to areas all over the world, allowing you access to markets not possible in the past.
Low Labour Costs
Another of the main benefits of OEM manufacturing is that you gain access to all the best that the company has to offer, including their labor. This means you get expertise without having to search, recruit and train your workers. Not only are labor costs lower in China, but you will not have to pay many of the expenses related to hiring local workers.
If you deal directly with overseas manufacturers, scamming is a possibility. You may find deposits or whole budgets go missing. In addition, even delivered products could be below standard if you have never dealt with the company before.
That means it is important to get a reputable company to arrange this for you. They will have trusted manufacturers who work to the highest standards. In addition, they will have agents who can traverse language and cultural barriers for you.
Now you know the benefits of OEM manufacturing in China, speak with an expert. They will be able to work out the best way for you to benefit. You may be able to improve profit more than you think.
Your first stop should be Shield Works. We are a British company working in Southern China for OEM manufacturing needs. Contact us here and see what we can do for your business.
The presence of critical spares in your business is essential, but sometimes you encounter unexpected breakdowns. You’re caught in between making a hurried order from the original equipment manufacturer (OEM) or outsource from local suppliers.
With minimal repair time, most businesses prefer the latter, not knowing its financial implications. But before you make this critical choice, here are the benefits of using original equipment manufacturer parts in your business.
What Is OEM?
An Original Equipment Manufacturer also referred to as OEM, manufactures products and sells them to different companies. The purchasing company will then brand the product before selling it to its customers as a finished item. OEMs are common in the IT and auto manufacturing industries.
OEMs can be best described as business-to-business entities because they only deal with value-added resellers. The primary goal of the OEMs is to manufacture product components according to customization requirements.
Top Benefits of Using an Original Equipment Manufacturer
As a busy tech, health, or auto company, you’ve limited time to produce high-volume goods.
Thus, outsourcing the products from the original equipment manufacturer becomes cheaper and convenient. You also get high-quality and authentic products that fit your products.
Here are the benefits of using OEM:
Guaranteed Quality Parts
OEM products are pure quality, and their precision is top-notch. When you make an order from an original equipment manufacturer, you’re confident of getting the exact parts.
Using the original component blueprint and design template, OEMs craft accurate products.
You don’t need to describe the materials used because they know what to use at every stage of the parts manufacturing. Whether you’re in the robotics, medical, or health industry, you’ll get the exact product you’re looking for.
Using precision machining ensures that all products meet hyper-specific requirements.
Before dispatch, the manufacturers test the parts to ensure they meet the original specification. You get compatible parts that match the factory specs.
What happens when a spare part breaks down a few days from its date of purchase? Buying from an OEM saves you from component defects and losses when the device cannot perform.
If the parts don’t work, they’ll replace the elements or repair them for free.
With a manufacturer’s warranty, the equipment lifespan is enhanced. Also, it reduces your downtime, saves money, and maintains its peak performance in the long run.
Should you experience part defects, call, and the manufacturer will resolve the problem.
Your product value is what maintains your customer base and attracts more prospects. Stocking generic spares in your business can affect the product value.
The OEM in-house upgrades, engineering, optimization, and modifications maintain the component value. It’ll serve you past a specific duration and will be resilient between maintenance schedules.
With enhanced lifespan and minimal repairs, buying from an OEM gives you great returns on investment. It’s worth the wait and money spent on every component bought from these manufacturers.
Unlike generic suppliers who take time to imitate the original products, OEM requires less time to avail the required product. To beat downtime, most OEMs stock essential machine components ready for dispatch in case of a breakdown.
OEMs ensure that operations resume fast after unplanned shutdown by holding stock on consignment. They maintain catalogues of critical components and make them available.
Excellent Customer Service
Virtual description of different spare parts to an engineer can lead to wrong interpretation and production of a faulty part. When you partner with an OEM, you get a fast response to all your inquiries from designated engineers.
The professionals understand the parts and know how the blueprint and design work.
If the equipment is faulty and may not need a replacement, the engineers will virtually guide you through troubleshooting it. The exciting part is; you get to work with engineers that designed the components.
Also, they’re conversant with every aspect, making it easy for you to get the right answers to every of your question. The OEMs become silent partners whom you can trust with different component issues whenever there’s a complication.
Dealing with OEMs opens up your business to competent product prices. Since the manufacturers will create bulk goods for your supply business, you can utilize the economies of scale.
At the start of the component production, the OEM will check and develop parts that match the budget. Though aftermarket items are cheaper, you can still match the price when buying from an OEM in bulk.
Yet, you’ll have better quality and customized parts, helping you save more.
What happens to old machine parts whose production ceased and the availability in the market is scarce? The availability of blueprints and raw materials simplifies the OEM production process.
No matter how old the vehicle or medical equipment is, the manufacturer has everything it takes to produce the required part. Upon request, the manufacturer will start production, ensuring that it meets factory specs.
Products obtained from an OEM are 100% percent durable. You don’t have to worry about the materials or the product strength in challenging conditions because it’s made with precision.
The manufacturers understand how component quality matters to consume and cannot compromise it.
OEM knows the duration that each component takes before wearing out. With an idea of when the changeout is due, you can plan on the new replacement.
Choosing an Original Equipment Manufacturer
Choosing an ideal manufacturing partner is overwhelming for the first time. Below is a list of things to look at before contracting an OEM:
• Expertise and capabilities
• Track record
Entrusting your blueprints to a manufacturer requires trust and the ability to build a long-term relationship. Checking on the above facts before hiring one will safeguard your products and ensure your expectations are met.
Get a Reliable Original Equipment Manufacturer Near Me
It’s no secret that dealing with an original equipment manufacturer has many benefits to your business. Besides an impressive return on investment, you get quality products and a warranty for every product you buy.
Are you a startup and need a reliable OEM for your IT, electronics, medical, or food industry? At Shield Works Precision Manufacturing, we provide diverse manufacturing services. For more information about our services, get in touch with us today.
Manufacturing is a vital part of the U.S. economy. It accounts for more than 11 percent of total output and about 8.5 percent of total jobs.
This also means remaining competitive can be a challenge. Doing so entails producing superior products for your customers.
If you are new to manufacturing or looking for new opportunities for production, assembly, or warehousing, consider original equipment manufacturing (OEM). This alternative can make all the difference in the price you are paying for parts and the quality of the end-product you are offering.
There are many advantages to choosing the OEM option. This original equipment manufacturing guide will give you an idea of what these production methods entail. It also will offer some insights into how your business could benefit from them.
What Is Original Equipment Manufacturing (OEM)?
Original equipment manufacturing (OEM) means that a company makes components for other businesses. These value-added resellers (VAR) then sell the end-product under its own brand.
OEM companies market to other manufacturing retailers, while VARs focus on sales to the public. The computer, electronic, and automotive industries are the most common types of businesses that use OEM.
For example, a computer company will not manufacture all the components in the machine. An OEM will make the processor, disc drive, or other hardware, then the company assembles and sells the completed computer. Similar arrangements are found in automobile manufacturing.
OEMs are distinct from aftermarket parts manufacturers. These companies make parts that look and function like original components. They are generally less expensive, although that is not always the case.
Examples of aftermarket parts include fenders, rims, or cargo racks for vehicles. These are less common in computer manufacturing but are prevalent in the manufacture of a variety of electronic products.
Most aftermarket parts do not function with the same reliability as OEMs. There are exceptions, but it depends on the product. For instance, people might buy tire rims that drive better than generic ones that come with their vehicle.
What are the Advantages of OEMs?
There are many advantages an original equipment manufacturing company can provide. Here are a few significant ones to consider.
The most obvious advantage of OEMs is that they function as intended. Unlike aftermarket parts, OEM components fill an original, specific function. This means that in most cases, they are more reliable and durable.
A reputable OEM company will have some type of guarantee for the parts they are producing. Warranties differ by company, but you can expect to get the components they promise and that they will perform as intended.
Another advantage of OEMs is customization. If you are ordering these parts for a specific purpose, you will be starting from scratch with the production company. They will design a process for producing the part with precision.
Besides basic parts production, OEM companies will often offer extra assembly options. They are more likely than other manufacturers to work with you on getting the final combination of components that best suits your production demands.
You can expect a more personal and interactive customer relationship with OEM companies. This is because, from the outset, you must be in conversation with them about components and their function. They are more likely to be in tune with how to meet your product and assembly needs.
OEM companies will send you samples and adjust specifications based on your recommendations. Likewise, they can adjust the production process where necessary. This is something you will not get from many aftermarket manufacturers.
Aftermarket parts can be cheaper for consumers looking for a quick replacement. But this is not always the case for VARs with larger manufacturing needs. In fact, due to economy-of-scale, OEM companies can keep production costs low and pass those savings along to their clients.
Once OEMs have design and manufacturing processes in place, production is cost-effective. Depending on the size of your order, this is likely to mean cheaper costs to you, especially in the long term.
OEM companies can estimate the cost of production with precision. This will allow you to budget long-term. It also allows you to eliminate the guesswork of what parts may cost––and how quickly you can get them–months down the road.
This also means you can return to that OEM at a later date and expect to receive the same part. This can translate to huge efficiencies for your business. Since you will not be starting from scratch, you can fill new orders quicker without having to worry about accessing the parts you need to do so.
Warehousing is a big part of manufacturing. Another benefit of going with an OEM company is their ability to assist in this endeavor. OEM companies are more likely to offer a variety of third-party logistics (3PL) services, such as repackaging and labeling.
Warehousing is another add-on service that OEM companies are more likely to offer than aftermarket parts businesses. It can be a huge asset for larger orders and shipping efficiency.
Warehousing provides you with greater flexibility for inventory management as well. Prominent OEM companies are likely to offer cloud-based management services. Such programs can make it easier for you to manage your parts on-hand and get them where they need to go.
This can translate to serious cost savings for your business. It helps you manage larger orders and do direct shipping to customers. It also may allow you to reach a broader market base.
Find Original Equipment Manufacturing Near Me
Now that you have an idea of some original equipment manufacturing tips and what OEM entails, you can decide if it is right for your business. Find a reputable company that can meet your specific production needs and provides value-added services that can help you provide a better product and manage delivery processes.
At Shield Works Precision Manufacturing, we provide original equipment manufacturing (OEM) production, assembly, and warehousing solutions to our international clients. We offer quality custom manufacturing at globally competitive speeds and prices. Reach out to us today for a free quote and consultation.
China’s factories ran at record-high levels in the second quarter of 2021. High demand for Chinese exports in places like the US and Europe fueled this production.
Would you like to take advantage of the benefits a Chinese OEM manufacturer can bring your business, but you’re not sure where to start? Are you wondering how to choose an OEM manufacturer?
Learn more here about how to find the right OEM manufacturer for your products.
Why Use an OEM Manufacturer?
Many companies don’t have the resources for high-volume manufacturing or highly specialized products. You can outsource manufacturing to reduce costs and avoid the complexities of keeping production in-house.
An Original Equipment Manufacturer (OEM) makes the components for your product. You provide the design specifications for anything the OEM produces. You receive the parts and assemble them into the finished product with your trademark.
An OEM with experience making products similar to yours knows the product assembly process. They already have a supply chain in place. You can put this experience to work for you.
Domestic or Overseas Production?
Before you start looking for the right OEM manufacturer, you need to decide if you want to use a factory in the US or overseas. The best solution for your product manufacturing depends on your business priorities.
Pros and Cons of Domestic Manufacturing
Domestic manufacturing has some advantages. Using a factory in the US can give you more direct control over production. You can visit the site more regularly. You avoid dealing with tariffs and international shipping logistics.
American factories usually let you order small batches of a product. Overseas factories often have large minimum orders.
The main disadvantage of using an American factory is that you’ll almost always pay more. In addition, you may not be able to find a domestic manufacturer for some types of products.
Pros and Cons of Overseas Manufacturing
Using a factory overseas has several benefits. A factory in a country like China will almost always be cheaper than a factory in the US.
You have more options. The vast number of companies that have outsourced their manufacturing to China means that you’ll usually be able to find several sites with experience making your type of product.
Possible challenges include longer shipping times and handling import/export regulations. You’ll also need to navigate differences in business cultures. However, you can address many of the issues surrounding overseas production when you start vetting potential manufacturers.
Start Looking for a Chinese Manufacturing Plant
You can get suggestions for Chinese manufacturers you may want to use from many sources. Your industry trade association can give you potential names. The small business network for your industry is another resource.
You can also get recommendations from business contacts and networking groups.
International trade shows in the US that attract Chinese manufacturers are a good starting point as well. You can meet manufacturers and make connections with exhibitors selling products similar to yours.
Online directories of overseas manufacturers are a good resource. These sites include:
- Global Sources
- Global Sourcing Specialists
Searching by industry or product category can help you find manufacturers with expertise in your area.
Narrow Down Your Choices
You can use several factors to narrow down your list of potential manufacturing partners. One of the most important considerations is to find a factory that makes products similar to yours. Some manufacturers will offer to make anything, but the quality will likely be lower.
Look for online ratings and reviews to see what other buyers say about the manufacturer.
Finally, look for manufacturers that primarily export to the US and other western countries. These manufacturers already have experience complying with the necessary quality standards, product safety standards, labeling regulations, and packaging requirements. They’re more likely to have the international shipping logistics you need.
You can also look for a Wholly Foreign Owned Enterprise (WFOE). A WFOE manufacturer has its production facilities in China. However, the company has non-Chinese ownership and management.
Depending on its ownership, a WFOE will give you the quality and service western businesses expect.
Protect Your Intellectual Property
Protecting your intellectual property (IP) is critically important as you begin the process of outsourcing your manufacturing. Copyrights, trademarks, and patents are some tools you can use. Be sure your legal protections are designed for international situations.
A non-disclosure agreement (NDA) is a legally binding contract. It helps protect you against other companies copying your product. Before you start getting quotes from potential manufacturers, they should sign an NDA.
Questions to Ask a Potential OEM Manufacturer
Once you’ve narrowed down your list, it’s time to start asking some detailed questions. Ask about the labor practices of any factory you’re considering. Be sure to verify this information the best you can. Unsafe working conditions or abnormally low compensation for workers are at minimum a PR risk for you.
Ask to see a business license and documentation of the quality control system. Recent proof of inspections or third-party audits is also important. A reputable company will give you this information.
Other questions to ask include:
- What is your experience making this type of product?
- Who are some of your current clients?
- Do you do all the work in-house or subcontract to other factories?
- What is the minimum order size?
- How long will it take to make my order?
- What is the price for samples?
- What is the price for production?
- What are the payment terms?
With this information, you can choose two or three finalists and ask them to make a sample of your product. Comparing the results will show you which Chinese manufacturing plant you should use.
Choose Your OEM Manufacturer
The process for finding and evaluating an OEM manufacturer in China can seem overwhelming. Thorough research will help you find the best factory for your products.
Avoid the hassle and choose Shield Works for your product manufacturing. We’re a 100% British-owned WFOE. You get benefits like full IP protection, a live video stream from your manufacturing zone, and ISO standard quality control.
We also offer warehousing and logistics. Contact us today to find out how we can be your outsourcing solution.
Choosing the right manufacturer for your business will play a significant role and how much revenue you are able to generate. For this reason, most entrepreneurs tend to work with a Chinese manufacturing plant.
However, not everybody understands the benefits that they can experience from doing so. Let’s explore the key details you need to know about China manufacturing.
Lower Overall Costs
As you might assume, one of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
This is simply due to the fact that Chinese facilities have much less overhead to work with. Additionally, they also have fewer training costs. When manufacturing domestically, facilities need to allocate a significant amount of money to cover these expenses.
This leads to businesses of all types outsourcing instead. Of course, wages in China are also lower than those in the United States.
This allows each dollar you spend to go much further when outsourcing. Keep this in mind when moving forward so that you can take advantage of the utility Chinese product assembly can provide.
Larger Production Volume
Not every business needs to manufacture thousands of products within a single order. However, large organizations often find it difficult to find a domestic facility that can satisfy their needs.
Chinese factories produce goods for a substantial number of countries on Earth. This means that China has typically created facilities that are capable of high-volume production. In fact, even the average Chinese factory could drastically outperform most facilities within the United States.
For companies that need a massive supply of their product, there is simply no better alternative than outsourcing to China. In many cases, doing so is also the only way to hit your target metrics.
Part of long-term success involves scaling your business.
This can occur in a multitude of different ways. For instance, you might introduce a new product line to customers in order to generate additional revenue.
Or, you may break into growing markets in order to establish a niche. Regardless of how you do so, Chinese manufacturers can help you diversify your business opportunities. Creating new products, in particular, is one of the primary ways in which they can help.
In some circumstances, choosing a Chinese OEM manufacturing plant could be what helps you set yourself apart from your competition.
Quick Changes to Product Design
Domestic facilities can’t always accommodate design changes. More specifically, it may take them days or weeks in order to implement your new ideas.
As you can tell, this can easily cause issues with your sales numbers. Your current product might not be something your customers would be satisfied with. Delayed orders due to design changes also carry the risk of having your audience turn to competitors instead.
Chinese facilities are always ready to implement required changes. In fact, all you need to do is get in touch with a representative from your manufacturer and convey what you need.
More often than not, the facility will begin manufacturing the revised products immediately. This is a crucial factor to consider, as it can often mean the difference between whether or not you maintain your brand reputation.
Intellectual Property Protection
Interestingly, many people are unaware of the fact that many Chinese factories prioritize intellectual property protection.
This means that they painstakingly work to avoid any sort of infringement that could land you in legal trouble. For example, let’s assume that you sell a product that is highly similar to that of a competitor.
A reputable manufacturing facility in China will go out of its way to ensure that no copying or reverse engineering has occurred. As with any other manufacturing industry, there are shady facilities that employ the above tactics.
The good news is that you can research the reputation of your prospective factory to ensure that you avoid working with ones that use underhanded tactics. Otherwise, you may find yourself in a situation that is difficult to overcome.
Not only are Chinese factories capable of mass production, but they can also do so at a notable rate.
These facilities have the newest and most efficient equipment that makes them capable of meeting virtually any production standard. This also allows smaller organizations to compete with larger ones.
Under many circumstances, small companies simply can’t keep up with the rate at which larger companies produce goods. Without the right manufacturer on your side, there’s a strong chance you can’t remain competitive.
How Can I Find The Factory Right for Me?
It can seem overwhelming to find a Chinese manufacturer. Not only are there time zone complications, but the language barriers in place often deter entrepreneurs from doing so. Working with a professional will help get you in touch with the facility that is ideal for your business.
These individuals will serve as the liaison between you and the other party. So, they will handle nuances making agreements, conveying production needs, etc.
You can check out this resource to learn more about how you can benefit from doing so.
China Manufacturing Can Be Game-Changing
So, be sure that you keep the above information in mind when determining whether or not this decision is right for you. From here, you’ll be able to leverage China manufacturing if it’s appropriate for your business.
Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.