Top 5 Reasons For Outsourcing to China
Many companies have benefited by outsourcing manufacturing of custom parts to precision machine shops in China. The most common reason to outsource manufacturing is to save money. Entrepreneurs and small businesses need to consider outsourcing some or all of this work to China because lower labor costs can significantly impact product margins. For businesses to remain competitive, maintaining healthy business margins is a must.
For engineers, researchers, and designs focused on a broad range of products and innovations, manufacturing in China opens a world of possibilities. China accounts for one-fifth of the world’s manufacturing, making it the largest manufacturing nation in the world. Its current outsourcing market is growing by approximately 30 percent each year, despite a global slowdown. China has skilled labor, as well as exceptional engineers, to produce high-quality parts and products.
Here are the five most important reasons for partnering with custom machines shops in China:
1. Labor costs
Outsourcing labor costs is not the same as moving your production to another country. Companies outsource domestically and internationally for any number of reasons, but it usually comes down to cost. Labor is the biggest expense for most manufacturing companies, and the lower costs of manufacturing in China make it a sensible choice.
There may be some isolated cases in which the addition of shipping and duties will make American shops competitive, but for the most part, the costs of precision machined products will be lower by using a Chinese machine shop.
2. High-quality products
Chinese factories, specifically their precision machine shops, are particular when it comes to quality. Most of the shops are ISO 9001 compliant and can offer quality parts on the latest Computer Numerically Controlled (CNC) multi-axis machine tools, which are known for their accuracy and reliability.
Companies that partner with a precision machine shop in China can ensure the highest quality parts if they commit to establishing and nurturing deep working relationships. A quality-control person from your company who communicates directly with the shop is the first step in making sure that your product is being produced to the specifications you require. Chinese factories pay the closest attention to customers who spend the most time working closely with them. When you think about it, these are the same methods you would employ with a domestic machine shop.
3. Faster delivery
It’s no secret that deliveries from American machine shops are being affected by a shortage of skilled machinists. Although there is an effort underway to encourage young men and women to consider careers in machining and manufacturing, it will take years before the number of precision machinists will be there to replace a retiring workforce.
No such shortage exists in China. Manufacturing in China stands out because of a large cadre of skilled CNC technicians and machinists. Due to a huge population, China has an abundant workforce. With a high ratio of potential employees, Chinese custom machine shops have hired and trained enough workers so that you are assured of a quicker turnaround time than CNC shops with limited capacity.
Machine shops in China are experienced in producing precision parts across different industries. Since the typical Chinese contract machine shop has more production capacity than the original equipment manufacturing (OEM) company, they can respond to increased production requests faster than the OEM.
Many of these custom shops can also provide various operations such as welding, plating, and fabrication in addition to their precision machining services.
5. Overall efficiency
China has been a global hub for manufacturing for decades. They have the ability to create the systems that support manufacturing. From material sourcing to shipping logistics, everything functions efficiently.
Their engineers and contractors take days or weeks instead of months to design and machine new products. That means if you’re working with prototypes, they will be expedited efficiently and you’ll be able to make any design refinements quickly.
You can now search globally with greater ease. If you’ve thought that only American machine shops have the CNC equipment and expertise to solve your machining problems, you need to reconsider. You will find a plethora of options by simpling googling “online CNC shops” or “rapid metal prototyping”.
Try request an estimate with Aprototype. Aprototype.tech provides estimates within a 24 hour turnaround and can start your custom machine order within 3 days. Aprototype’s factories are ISO 9001 compliant and have variety of three, five, and seven-axes CNC machines. And we will work with you to meet your deadlines and quality standards.