Offshore Manufacturing in a Post COVID-19 World

Were you considering moving the manufacturing of your products offshore to China, Taiwan, or South Korea before the COVID-19 pandemic took the world by storm?  If you are like many business owners or individuals you are uncertain if offshore manufacturing is still the right move.   Even though there have been several disruptions to our daily lives and business in general, moving your production offshore is still a viable option.

made in Chine goods: what happens after COVID-19?

Offshore Options are Still Sustainable

There is a push and desire to bring manufacturing back to the United States and to buy ‘Made in America’ products only.  Many people would agree this is a good idea but, even if it were to happen, it would take a very long time as well the prices businesses are used to paying for their goods, as well as the prices consumers are used to paying, would need a transition period.  According to Time Magazine online, bringing manufacturing back to the United States and buying American made is almost impossible these days because over time businesses as well as the international supply chain has continuously looked for ways to reduce costs.  Businesses constantly strive to offer and most consumers shop for an acceptable version of products with the lowest cost.  Lower cost for consumers, higher margins for companies.  The icing on the cake if they can find a way to undercut their competitors.  Manufacturing offshore, with the reduced labor rates that come as a package deal, allows companies and consumers to do just that.

Well Known Corporations are Still Moving Offshore in 2020

The global Coronavirus pandemic has demonstrated how fragile the supply chain is and how easily it can be disrupted. Yet, despite this, many companies are continuing to move production of their goods offshore.  Even well-known companies such as Starbucks are moving forward with plans to produce their products in China despite COVID-19.  The reason is not rocket science or brain surgery (rocket surgery?).  Starbucks is no different from any other company in that it wants to offer an affordable product as possible while maintaining its quality standards while maximizing its profit.

What About Tariffs?

Tariffs have been in the news more than ever.  It’s understandable if news about tariffs is holding you back from choosing to manufacture offshore.  However, it shouldn’t prevent you from honestly investigating whether this is a viable way to manufacture your products.  Tariffs have always been a part of manufacturing away from home.  In most instances, your bottom line will still be improved.  The only way to find out for sure is to get the facts.

ITI Manufacturing has been helping businesses understand how tariffs work and if offshore manufacturing is right for each individual company they work with since 1974.  We can help you look at what your total cost to manufacture offshore would be so you can know if it is right for your business.  We can give you the details to take the guesswork out of your decision.

Get Started with Offshore Manufacturing Today

If you are considering manufacturing your products offshore we would love to meet with you to discuss the details.  Chances are there are options that you are not aware of that could make a difference in your bottom line.

Also, with travel to China currently restricted, if you are currently manufacturing there and need “eyes and ears” on the ground in China, call us.  We already are there working out of 8 locations strategically placed throughout China.  We can pick up the ball and run with it on your behalf until it’s safe for you to travel there once again.  If your company is currently manufacturing in China and experiencing challenges, call us to discuss our offshore management service.

Call us today at 281-242-7030.  Let us help you as we have been helping our customers for the past 46 years.

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