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If You Needed A Reason To Manufacture In China, Here’s 10

1. Lower Production Cost

Expect to spend less on molding and manufacturing when using a Chinese company. Other companies known for manufacturing such as USA, Japan, and Germany are almost always significantly more expensive.

 

2. Faster Production and Scalability

Lead times on production orders made in China are usually less than that of other countries. China makes it easy for businesses there to grow quickly, build new facilities, and expand with few obstacles. 

 

3. Willing to Work with Smaller Companies

Many manufacturers only want to work with large, well established brands. China’s manufacturing entrepreneurs are often more willing to work with start-ups and people at the beginning stages of development in hopes that the business grows over time.  

 

4. Pro-Business Government Policies 

China’s laws, rules, and regulations make it easy for businesses to grow year after year by not placing unnecessary restrictions on them and by supplying valuable incentives to manufacture in China. 

 

5. Abundance of Skilled Talent

China graduates more skilled laborers from university than anywhere else in the world. So many new engineers enter the world force every year in China that the large supply of skilled labor available keeps the cost for such services affordable. 

 

6. Stability

Over the last 30 years China has been the pinnacle of stability around the globe. While other countries often change leadership and policies, China’s consistency in this area gives business people confidence that what they invest in now will not change in the years to come. 

 

7. Modern Infrastructure

China has been at the leading edge of creating roads, bridges, and highways that efficiently transport people where they need to go. They are also known for their state of the art public transportation system, so you can have confidence that even if your interests are in several cities or provinces, you can travel between them easily. 

 

8. Abundance of Raw Materials

Basic commodities such as metal, wood, and chemicals cannot be found anywhere at cheaper prices than in the Chinese open market. Whatever the raw material is that you need for your company, it is most likely produced in China and can be purchased there at a fraction of the price than anywhere else in the world. 

 

9. Product Quality

There is a misconception that Chinese products are cheap and often break. This is due to past notions about products produced during the developmental stage of China’s growth. Now China is a global superpower that has all of the same or better technology and innovation as the rest of the world which allows them to supply products of the same quality as other developed nations. 

 

10. Language Barriers Disappearing 

In the past, communication with Chinese factories created a language barrier. Now with the push in education to train everyone to speak English, it is almost universal that an English only speaking business person can effectively communicate directly with people who work inside of Chinese factories. 

 

Finding the Right Manufacturer for Your Product

Finding the Right Manufacturer for Your Product

When it comes to bringing a new product to market, it is quintessential to have the best-fit manufacturer for your business. Many factors go into determining the best manufacturer for your organization, including quality, pricing, location, and factory size. Finding a manufacturer that is the best fit for your product and company is a tedious process but can ultimately save you money, time and prevent you from creating a failed product. 

What Exactly is a Manufacturer?

A manufacturer is a company that produces finished goods made from raw materials and/or sourced parts. It is common for manufacturers to specialize in producing specific types of goods such as tech, packaging, glass, boxes, and more. Once a manufacturer makes the finished good, they can ship directly to retailers, wholesalers, consumers, and more.

If you are developing a unique product, you must use a manufacturer rather than a drop shipper or supplier because a manufacturer has the capabilities to produce your unique invention.

The Location of a Manufacturer: 

The location of the manufacturer you select is crucial because it can affect the cost of production, the number of manufacturers to choose from, speed of production, and quality and labor standards. There are pros and cons to any manufacture, whether you decide to use a domestic or foreign company. Keep in mind that the best choice for your company may not be the same as another. While location will play a role in your ultimate decision, remember that the manufacturer itself and the quality of products they produce are most important. 

Domestic manufacturers located in North America pros and cons:

  • Perceived higher quality and labor standards
  • Lower shipping costs
  • Easier communication because of no language barrier
  • Higher cost for production 
  • Fewer choices in manufacturer to choose from 

Foreign manufacturers located overseas pros and cons: 

  • Less expensive production costs 
  • More one-stop services that can produce, package, and even sell products 
  • More manufacturers to choose from 
  • Potential language barrier
  • More expensive shipping
  • Limited warranty options and often no repair services 

When determining the location of your potential manufacturer, ask yourself these critical questions: 

  1. How much can you afford for your product’s production, and what price do you want to sell your product at?
  2. Do you need a one-stop-shop manufacturer that can handle producing the product and packaging it?
  3. If the manufacturer is located across seas, do they have an account management team that can address the potential language barrier?
  4. How will you plan on managing damaged or returned goods? Will you need the manufacturer or a third party to service products?

The Quality of a Manufacture: 

In any business, the quality of the product you are selling goes hand and hand with successful sales. To ensure that customers are happy with your product, have positive feedback, and make repeat sales, you must be sure that the manufacturer you are working with produces a quality product for you. 

To determine if the quality of the manufacturing company you are considering working with is up to your standards, you must do your research on them. 

  • Look for customer reviews and at their reputation. 
  • Who have they worked with in the past?
  • Does this company have poor labor practices? 
  • Does the company have any regulation violations or fines? 
  • Do they have quality standard certifications such as ISO9001?
  • What types of materials and quality of materials does this organization use?

After you have finished your research and meeting with a potential manufacturer to work, it is essential to ask questions to ensure that they are knowledgeable in the industry and market segment you are entering. 

The Size of a Manufacturer: 

Picking the size of the manufacture you are going to work with depends on a few things:

  1. What is the output quantity needed to meet consumer demands?
  2. How fast do you need a product manufacturer? Will they meet your speed and efficiency standards?
  3. What types of manufacturing processes do you need, and does the manufacturer have the capability to fulfill these manufacturing needs?

The answer to all these questions will significantly help you narrow down your manufacturing search. Some organizations may not meet the production needs of your product. Ensure that you have done your market research to have the most accurate idea of what you need in the size of the manufacturing company you will need to work with. 

The Cost of a Manufacturer 

The cost of a manufacturer that you will use varies depending on size, location, types of materials you use, reputation, and production speed. Investing in the proper manufacturer for your company and product can be worth the money if it means that you will have a better quality product on the market. When speaking with potential manufacturers, it is best to compare quotes and go with which one is best for your business needs. 

Takeaways: 

Working with a manufacturer is a large commitment that may take time to determine but can ultimately affect your bottom line. Doing the proper research and understanding the market demand for your product will ensure that you select the best company to work with. 

 

If you are looking for a manufacturer to begin working with, then check out Esino’s website because product design and manufacturing is our company’s specialty. We design and make high-quality electronic devices and offer super competitive prices. We not only work with you to create your product, but our engineers and project managers provide their expertise of over ten years of experience to elevate your product even further. We have over a decade of experience working with high-profile clients to develop their winning products. Although we manufacture overseas, we do offer repair services in the United States. Feel free to reach out to EsinoUSA if you have any questions or are interested in seeing how we can help! 

 

Interested in Esino’s manufacturing services? Check out the Inventors Only Contest for the chance to win up to $10,000 of product development services at Esino and much more.