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Potential Vulnerabilities With Overseas Production

One of the key issues that COVID-19 brought to everyone’s attention is the level of risk that’s associated with overseas manufacturing and import.  Conventional thinking reasons that overseas low wages, as well as minimal environmental regulations (and at times non-existent) will offer you very cheap manufacturing rates.  However there are big risks associated with this business model and often these risks can end up costing you more than you save.   Let’s consider the following modern day issues.

Logistical Chain Involved In Import Can be Daunting

There are numerous additional steps that are involved bringing manufactured products from overseas.  After production occurs you will be heavily relying on shipping carriers to bring your items into the U.S.  At the present many ship crews are at a minimum due to COVID-19.  Once your product arrives in the U.S. you will need to deal with customs clearance, possible random container inspections, and potential damage or loss during any of these steps.  After all of this is done you then need to have your products brought in from one of the ports and into your own distribution facilities.

Political Uncertainties

Over the past few years the United States has witnessed numerous tariffs, taxes and quotas placed on imports and exports.  These politically driven limits tend to heavily increase overall costs, which ultimately are either pushed onto the consumer or your own marging must be sacrified.   If you deal in industry with high price elasticity then you are already competing on price that can’t be changed without pricing yourself out of the market demand.

Sluggish or Delayed Secondary Runs

There are times when a product sells fast and demands a fast secondary run in order to address the high market demand.  Relying on overseas manufacturing may take a long time and you may miss out on the window when your product(s) are considered hot.  The longer the store shelves remain empty the more revenue loss your company will face.  Secondary runs from overseas have a long cycle and will eat into your sales dramatically.

How Can We Offer Cheaper Plastic Production Costs than Overseas Facilities?

We are often asked how a Made in USA plastic injection molding firm can compete with foreign based manufacturing plants.  We are a dual coast, high efficiency manufacturer that doesn’t have to deal with any of the above mentioned issues.  On top of that because we are highly efficient in production and logistics, and have a team of value engineers (who can evaluate and offer you design savings), we can often give you a highly competitive cost, significantly shorter production cycle, and find many other ways where we can save you costs or delivery times!   Plus, you will be supporting the U.S. economy when working with us.  Contact us today to learn more how we can help you remove these headaches and speed up your production needs!