USA vs. Off-Shoring
With rising costs in other countries, DaMar Plastics has recently brought back products previously made in China and Korea. DaMar Plastics is competitive with off-shore manufacturers when all costs are considered, including development time, required trips to the source, shipping costs, duties, delays and loss of Intellectual Property protection. DaMar Plastics will work closely with you to reduce cost of goods through alternative materials, packaging, freight rates and plastic manufacturing processes.
Then there’s the “hassle factor”, distance and communication challenges that make doing business overseas more difficult.
“Made in USA” is gaining cache today as both consumers and manufacturers have more trust in the quality of products Made in USA and a sincere desire to help keep jobs in the US.
13 Reasons Why Producing Your Product in the United States is better than going Off-Shore.
- Reduces lead-times. No long lead-time to get purchase order acceptance, materials procurement, production scheduled, parts made and shipments completed.
- Reduces inventories. JIT can be utilized. Upside volume in sales can be quickly accommodated.
- Reduces shipping time. If your product is coming from overseas (such as Asia), it could takes 30 days OTW (on the water) for shipments to arrive. U.S. shipments only take 1-5 days.
- NO delays due to U.S. Customs or Ports of Entry inspections.
- Shipping rates are reduced when products are sourced in the U.S. Shipping containers can cost over $3,000 each, plus inland freight charges.
- There are no duties on goods produced in the U.S. There are no assist papers that need to be filed.
- Reduced development time. Normal time for a product from concept through tooling to first article in the U.S. is about 8-12 weeks. If produced in Asia, the time is about 6 months and several trips.
- Reduced time and cost to visit your supplier. Costs to send an engineer or procurement person to an off-shore company can cost thousands of dollars, and a week out of the office, where U.S. based factories cost significantly less to get to and can be done overnight.
- Intellectual property is much safer in the U.S. Asia has a history of counterfeit goods being produced and shipped to the states creating competition for your own product. There are no laws being enforced in Asia to protect U.S. companies from being “knocked-off”. Trademarks and Patents are largely ignored in Asia and other foreign countries.
- Communications are very difficult when doing business off-shore and can cause costly mistakes. Language differences are often the reason.
- Time zones hinder development and production schedules. With up to 14 hour time differences, delays of at least one day to get responses to questions and issues are not uncommon.
- Quality issues are easily managed in the U.S. Quality issues from off-shore may require on-going back and forth several times causing huge delays. If new production is required, another production cycle, including time on the water is required.
- Less control. Many of the consumer products produced off-shore for the U.S. find their way to the “street market” and diminish the good name of the manufacturer and increase cost.
Summary: DaMar Plastics injection and blow molding services can be competitive with off-shore when all costs are considered, including development time, required trips to the source, shipping costs, duties, delays and loss of Intellectual Property protection.