While overseas labor markets might benefit your company short term with cost savings, there is far more to consider when it comes to the value your manufacturing company is adding, and often any cost savings in manufacturing can be eroded by costs you didn’t consider. The company you choose should be a partner and work with your business so that you achieve your manufacturing objectives, and when you work with a local company, you’re more likely to get the support you need. Here are four key benefits for keeping it local when it comes to manufacturing.
More Jobs for American Workers
Keeping manufacturing local means that the jobs required will be given to American workers. Supporting local contract manufacturing companies directly supports not only the local labor markets but the local economy too because the cost of manufacture isn’t being paid to an overseas company. It’s not even just the direct manufacturing jobs you’ll be helping to create either, but the many ancillary ones too like those making the components used in the manufacture, steel and metal foundries and even delivery drivers who will need to deliver your products to you.
Shipping Costs Are Drastically Reduced
Naturally these delivery drivers are travelling shorter distances without international shipping and customs, so the cost of getting the manufactured goods to you will be reduced. You won’t be paying shipping insurance and the high costs of fuel and constantly shifting exchange rates will be a worry you can eliminate. Not only will you be saving in costs, but in complexity too since you’ll no longer need import certificates. Consider too the environmental impact shipping internationally has compared to that of local manufacturing.
Lead Times are Shorter Too
Because of the shorter distances that your goods need to travel, you’ll be saving huge amounts of time in the process. Just-in-time manufacturing and procurement practices are commonplace in today’s market, but it means you need to be agile. If shipping takes too long or the lead times needed on international manufacturers are extensive, you’ll have to revert to keeping larger inventories and this means more risk on your company as well as increased costs for storage and insurance on your inventory.
Customer Service is Local
There are many reasons why using American workers is beneficial and one of the biggest is that you’re going to get local customer service. Not only does this mean that you’re speaking the same language as your customer service agent and manufacturing company, but because there’s no language barrier you won’t be missing vital details when it comes to support. Because the manufacturing company is local, they’ll have a better understanding of the local market too. As an added benefit, you won’t be working across time zones so responses will be quicker which means better service and happier customers.
There we have it – four compelling reasons to keep your manufacturing inside the United States and improve your flexibility and ability to provide goods to your customers quickly and with less need to store inventory. There are almost no downsides!
