The power of China as a manufacturing hub is not hidden from the world. One of the greatest joys for an entrepreneur is the manifestation of his designs and dreams into practical products and goods. However, when it comes to full-fledged production – turning blueprints into feasible and realistic goods for use, decisions need to be arrived with caution, weighing all the related pros and cons. Production costs are one of the biggest de-motivators as entrepreneurs get ready to turn their dreams into reality. Outsourcing the manufacturing to reliable and specialized manufacturing companies in China is one of the options that many in the Western world consider to be the best way to manufacture products cost-effectively.
Globally, China is the sure-shot leader in manufacturing with the industry worth more than $2.01 trillion currently. In 2014, about 120 million workers in China were involved in the manufacturing industries – a number that was at least ten times more than the US figures for the corresponding industry. The question is: How can manufacturing companies in China help overseas business?
The answer is:
- Substantial reduction in manufacturing costs. This is one of the primary reasons why most overseas businesses use the services of manufacturing companies in China. Low manufacturing costs in China are due to two reasons- the labor here is comparatively cheaper than the rest of the world; and tremendous scalability and flexibility of the manufacturing companies in China who are thoroughly specialized in manufacturing all kinds of goods and products.
- For businesses that are looking at expansion and want to test the waters first before probably going into in-house large-scale production can outsource the job to companies in China so those customer reactions can be gauged precisely, and production estimates are calculated with accuracy.
- With manufacturing companies in China, businesses can manage their lead times better. China companies are quite adaptable, and they can help companies cut down on lead times and ship quicker deliveries.
- Production related efficiency is another big plus point in favor of Chinese companies who are thoroughly proficient in manufacturing related aspects.