Onshore versus Offshore, Part II

Posted by Ben Harrison on Oct 22, 2012 2:30:00 PM
Ben Harrison

blank.pngAs a follow-up to the hugely successful newsletter last month on the topic of “onshoring,” I’d like to share with you why Kaysun may be your best option if you are considering a manufacturing partner in the United States.

First, our engineering team is world-class. We have all the skills necessary to make your new product introduction successful, right out of the blocks. Our capabilities include product design, design for manufacturability, moldflow analysis, and finite element analysis. Our deep design knowledge and engineering experience allow us to build injection molds quickly, with a minimum of iterations or design changes, that stand up over many years of production volume. After tool completion we apply scientific molding principles to establish a highly repeatable molding process that is validated by ongoing data monitoring to ensure we are meeting all the critical characteristics of your product, 100 percent of the time. In addition to injection molding we also provide full product assembly, testing, and packaging. In fact, over one-third of our sales are derived from these value-added services to our customers. Finally, Kaysun is extremely flexible in meeting your just-in-time inventory requirements. 

As a final note, there is no question that most U.S. manufacturers have more highly skilled workers, and produce higher-quality products, than most offshore locations. Communication is also easier with a U.S. partner compared to one offshore—you don’t have to wait a day to get the information you need to make critical production decisions. But these, of course, aren’t the reasons that so many American manufacturers went offshore—they left to take advantage of the lower labor costs.

That, however, is starting to change.

An article by Richard McCormack in Manufacturing and Technology News (August 31, 2011) entitled “The Case against Shifting Production to China: Hidden Costs and Growing Risks Make U.S. Attractive for Manufacturing” states that, “when adding logistics to the China price, the cost advantage of producing in China shrinks to 8 percent: $13.85 for a case-study product made in China versus $14.99 in the United States. But when design for manufacturing and assembly (DFMA) software is applied to the same product, the China advantage vanishes. The China cost declines to $9.79 versus the U.S.-made product at $9.47.”

These remarkable numbers show that, when American manufacturers like Kaysun use best practices and advanced design and engineering tools to maximize efficiency and quality, we can compete with China on cost, while delivering superior quality.

Why deal with the stress and hassle of managing a supplier overseas when Kaysun can provide you with all the services you need to make your project a success? Call us at 1-800-852-9786 and we’ll be happy to discuss your next project or simply answer any questions you may have.