How US Companies Can Take Proactive Measures & Consider Impact
Companies must keep costs as low as possible to remain competitive. Overseas manufacturing has traditionally been a “go to” solution to helping them achieve this goal. While overseas manufacturing can save money, there are certain things business owners must know before taking this step, especially if they are planning to do so without professional assistance.
A major consideration many companies are not aware of or don’t seriously consider until it’s too late is the impact of Chinese holidays have their production schedules. They are then surprised to learn of the lengthy delays and other problems that arise when these holidays arise as they do every year. Let’s discuss 3 major considerations that companies should be aware of concerning China holidays.
Many China makers stop taking orders shortly before Christmas in anticipation of the Chinese New Year. In the event they do continue to take orders they typically do so knowing that there will be a delay in production. However, they do not always share this detailed information with customers. The business owner is then frustrated to learn about delays when orders are not received in the usual timely manner. One way to avoid this issue is to place larger orders in the months leading up to Christmas to compensate for the lack of production when the Chinese New Year rolls around. Another is to communicate closely with factory management to clearly understand that particular factory’s holiday schedule and adjust expectations accordingly.
The Chinese New Year
The Chinese New Year is considered the most important holiday in China. Factories close so families can spend this time together. There must be enough time for workers to travel to their family’s remote home locations. This means factories do not shut down for a day or two. They shut down for weeks at a time, typically three or four weeks for celebrations. There are a few exceptions in the high-tech factories, but they are truly exceptions. A company doing business in China must be prepared to have no communication with their manufacturer during this time period.
Factory Reopening’s & Schedules
When factories finally reopen it takes some time before they are back to their regular production schedule. This process takes more time than any American company thinks it should because typically the holiday timeframes were not adequately planned for in advance. Smaller businesses may find they are put on the back burner as the manufacturer works to fulfill larger orders. Every business owner needs to keep this in mind and either make other arrangements for manufacturing of their products during that time period or find alternate ways to ensure they can meet the demands of their customer base.
Don’t Get Caught by Surprise
Business owners should not let Chinese holidays hold them back from making use of China factories and benefiting from overseas manufacturing. USA-based companies they can work seamlessly through these types of issues successfully with the help of ITI Manufacturing. We have been helping companies like yours for 44 years. We have the experience and expertise to fully manage your China projects.
ITI Manufacturing has mastered the process of successful China manufacturing. This allows us to consistently address a variety of issues that routinely arise when manufacturing in China.
You can experience the same China manufacturing success as our current customers. Call us today toll-free at 281-242-7030 and speak with one of our seasoned professionals.
Learn more about Chinese Labor Day Holiday – May 1st.