Domestic vs International Manufacturing - Mechanical Power Inc.

Are you planning to manufacture new products? If your answer is yes, then we have a few tips for you on how to select manufacturing company.

When working with international supplier, It’s always a good idea to hire domestic manufacturer as a backup. Your local manufacturer can be used in case orders sourced from overseas arrive late or are defective. International shipment can take several weeks so, keeping product stocked locally will keep your clients happy.

Because of reduced labor costs, it’s typically cheaper to source your product from other countries, particularly in Asia, such as China, India, and Taiwan. But the decision is about much more than the initial investment and cost per unit.

 

Both, domestic and international sourcing have benefits and drawbacks:

Advantages of Domestic Sourcing

  • Labor norms and manufacturing quality are both improving
  • Communication is easier because there is no language barrier
  • Made in USA marketing appeal
  • It’s a lot easier to find respectable manufacturers
  • Faster shipment protection of intellectual property rights
  • Payment security have improved

Disadvantages of Domestic Sourcing

  • Costs of production are rising
  • Fewer product options

Global Sourcing – a nerve center of Global Supply Chain.

Sourcing the highest-quality products at competitive prices from around the world.

Advantages of overseas sourcing

  • Manufacturing costs are lower
  • There are several manufacturers to choose from
  • Multiple one-stop platforms have made it simple to find suppliers

Disadvantages

  • Customers’ perceptions of quality are lower (manufacturing standards)
  • There is a lack of intellectual property protection
  • Barriers in language, communication, and time zones can be difficult to overcome
  • It’s difficult/expensive to verify the manufacturer and go on-site
  • Shipping time is longer
  • Differences in business methods between cultures
  • Importing goods and clearing customs
  • Payment security and redress are reduced

Working with experienced global sourcing company will take the hassle out of global sourcing. Companies such as Mechanical Power, have close relationships with manufacturers overseas and handle negotiations, orders, and shipment tasks.

Long-term relationships developed over the years with major manufacturers help to save time and money by sourcing what you need, when you need it.

Over the years, Mechanical Power has strengthened manufacturing partner relationships, developed new ones, leveraged others, expanded our boots on the ground and developed standard operating procedures that ensure we always have what the customer needs when the customer needs it.

Author: Lorain Wilson - Content Marketing Specialist at Houston Pump and Gear
Home to North America’s most reliable industrial gearbox and pump repair. Whatever the brand, issue, or timeline, the Houston Pump and Gear team of certified engineers is standing by to offer a free quote and durable solution.