China Remains a Global Leader
When discussing offshore manufacturing there are many countries to choose from. However, China is still the top choice. Let’s look at why.
When China became a more open nation many experts realized how its immense consumer market could affect the world’s biggest retailers and manufacturers. However, few anticipated that China’s large population base would provide a competitive advantage to companies choosing offshore manufacturing.
Contrary to widespread belief, China’s outsourcing market is still growing by approximately 30% per year. Many US companies have decided to establish offices there. As an aside to this statistic, Chinese Premier Li Keqiang recently was quoted as saying (March 23, 2018) China will further open its economy, including the manufacturing sector, and pledged to lower import tariffs, and cut taxes. Further, and even more importantly, China will not require foreign companies to transfer technology to domestic companies and will protect intellectual property.
While there are no shortcuts to success when outsourcing, China remains a top choice for offshore manufacturing. The following considerations may help if you’re a small start-up company considering outsourcing your product, OR if you’re a current US manufacturer experiencing challenges.
Differences in Business Culture Can Be Managed
The Chinese and American business cultures are very different. However, the fundamental differences in Chinese and American business cultures are not standing in the way of more and more US companies finding ways to better manage these differences to take advantage of what China offshore manufacturing has to offer. American companies encountering difficulties with China’s offshore manufacturing sector have an option in working through a liaison company like ITI Manufacturing to help them navigate through the differences and conduct a successful win-win campaign.
Understanding and successfully working with international business differences is crucial. China has remained a global manufacturing nation for decades, and new ways to communicate and do business are constantly being developed. Chinese business is more relationship-based as opposed to a more transaction-based model found in the US. Close collaboration is enhanced when there is trust between the Chinese supplier and the US company. With ITI’s expertise, and China staff visiting factories face to face daily, our American clients ultimately benefit from that trust.
It’s All About Commitment & Building a Solid Working Relationship
When US companies source products from China they can exert greater control over the process by creating and nurturing working relationships. Whether a company establishes its own base or works through a liaison like ITI it is critical for the Chinese maker to believe in the client’s commitment. When this is in place the project flows much more smoothly and it is much easier for US companies to do business and experience the success they anticipate. On the other hand, if a China factory is unsure of a client’s level of commitment that factory may not maintain their focus and commitment. Working through a reliable offshore manufacturing liaison like ITI Manufacturing avoids the monetary and reputational costs associated with mistakes and production delays.
Working Closely with Chinese Partners Makes All the Difference
Personal contact makes a huge difference. Chinese suppliers pay more attention to customers who work closely with them on issues such as sample creation, purchase orders, production scheduling and planning, shipping performance, and quality control. When US companies work with us at ITI Manufacturing, they get the benefit of:
- A logistics team dedicated to managing every detail of shipping and the proper paperwork
- A product team whose sole focus is the smooth execution of the project
- A quality control expert who ensures that goods are produced to the proper standard
With ITI’s help, clients enjoy a greater level of control over the production process.
Issues will present themselves sooner or later, and when (not if) they do, our dedicated full-time ITI team is at the factory ready to resolve the issue while continuing to reinforce the long-term relationships crucial to your company’s success. Our years of experience working in China’s offshore manufacturing culture have allowed us to create methodologies to ensure the process works for you in a way that fits your business needs. Learn more by connecting with us toll-free at 281-242-7030.