Go Local?
Manufacturing locally vs manufacturing abroad.
This is a question that we are asked all the time!
In truth there is no easy answer. There are arguments for both sides and most are equally valid.
Many say that the money and jobs should stay within your borders. (whether City, State or Country)
And others say that without the lower cost labor abroad then many locally concieved products would never make it to the shelf - and that would result in less income locally anyway.
As industrial designers we are often caught right in the middle of this argument. We have been charged with the design and often the realisation of a product and are expected to act in the clients best interests. The best way to tackle this issues is to inform yourself for your specific application.
This informed approach is best made in conjunction with your product design consultancy. As each product has specific manufacturing processes and materials we are your best bet for knowing the right starting point. Unless you have a good knowledge of the tooling processes and alternatives we suggest you refrain from emailing every google listed manufacturer for price indications - as you may build up unrealistic expectations. (Either positive or negative.)
Part of the decision making process include some simple questions:
- Does anyone local have the manufacturing capabilities and expertise required? If not you have no choice but to look abroad
- What quantities are you intending to produce - do local companies have the capacity to cope with the work load? (and equally is it too small to realistically approach large factories?)
- What are your business intentions? - are you out to make the the cheapest possible product and sell it for the highest possible price? (The “get rich quick” mentality) or are you trying to build a solid brand on quality products?
There are plenty of other questions your designer will ask to help formulate the best approach to manufacture. They will work with you to find the best option for your business and budget.
There are also many myths that surround manufacturing:
- China is always cheaper -> not always the case. Labor is cheaper so products with high manual assembly/production do tend to be cheaper. However if your product is automated in production (such as injection molding) then comparable quality products are not going to be much different with local prices. In both cases the manufacturer has to purchase tooling, material and machinery to produce your product. (Plastic pellets cost the same to locals and internationals!) Before you jump to China give locals the chance to pitch.
- Local manufacturers always produce higher quality product -> again not necessarily true. This is entirely dependent on the operators skill and investment into their art. If you have a good manufacturer hang on to them!
- Comparing quotes from manufacturers is as easy as looking at the price. You need to compare ‘apples with apples’ - are the materials the same quality, are the quantities the same, what is the life expectancy of the tool, what are the working conditions, what is the shipping cost?
As you can see from the brief touch on the subject - this is a complex one, entirely project specific and best handled with you designer.
Tags: Industrial Design, local manufacture, Manufacture China, Manufacturing, manufacturing agent, product design