Products with the “Made in China” label on them seem to be everywhere. So much so it might look as if no matter what the item is, it’s all suited for China Manufacturing. If you look a little more closely you will discover there are many items that are made domestically.
There is a multitude of reasons a product is or is not suitable for overseas manufacturing. In this blog, we’ll discuss three reasons a product is or isn’t right for China manufacturing.
Labor Component
The top reason products are good candidates for China manufacturing is the percentage of labor that goes into that product. For example, if a product is a one-shot plastic injection mold requiring little or no post-production work, it’s not ideal. How so? Well, it simply pops out of the injection molding machine, cools, and then sits in a retail carton. However, let’s say a plastic injection molded product needs post-production work. If workers need to trim the piece, for instance, then join it to another part, or glue and assemble it with screws, that’s a labor and then painted or inserted into unique packaging. That could very well be a candidate.
Consider Quantity with China Manufacturing
China Manufacturing is all about quantity. But factories will show little interest in small quantity orders on even the most labor-intensive products out there. Factories as well as their material suppliers each have a “MOQ”, Minimum Order Quantity, for each product. Manufacturers base the MOQ on, among other factors, the quantities the material suppliers are willing to sell to the factory. Also, the cost of those materials in various quantities is another factor. The producing factory’s MOQ takes into consideration two main things: the cost and time to train and set up the production line versus what the factory will make on the production run.
Additionally, factories will pay workers for their production at a piece rate. So, if the quantity is small the workers don’t have an opportunity to make very much money. Furthermore, with small production runs, factories cannot get into a “rhythm” and become as efficient as possible.
Transportation
Transportation is a cost that must be added to the total cost of the item when comparing the viability of domestic vs. China manufacturing. Quantity, as we have already discussed, comes into play here too but the idea is typically the most economical way to ship goods from China is in full containers. The most common size container shipper use is 40’. If for whatever reason, the quantity needed is less than a full, 40’ container, the total cost of transportation is more.
For instance, when shippers amortize over a smaller number of items in that container, it may add too much to the cost of each, individual item. And in this case, it won’t make China manufacturing worthwhile. There are 20’ containers available, however, logistics use them for products that have a lot of weight. So, these “half containers” work best for specialized products. And, if shippers were to fill a full 40’ container with the same heavy products, they would consider the shipment overweight.
The Bottom Line – China Manufacturing with ITI
For most products, deciding if they are suitable for China manufacturing is fairly easy. For others, the only way to tell is for the completed product to be evaluated by an expert. The third scenario involves having the product and all of the details analyzed by a reliable China Manufacturer.
The professionals at ITI Manufacturing have been evaluating products for over 40 years. The best way to determine if your product is suitable for China manufacturing is to contact ITI and let us do what companies have trusted us to do for all these years. Not only will we discuss your product and its suitability to be “Made in China”, but we will also provide you with a detailed quote at no charge. This way you will know your exact cost, before you make any sort of commitment, to manufacture your product in China. The consultation is also no charge to you. It’s to your benefit to find out. Call us today.
