Manufacturing in China: Pros and Cons

Manufacturing in China: Pros and Cons

Are you of the opinion that today, it is a very challenging time for all companies? Could you please tell me what it is? Yep, getting new products to the market as quickly and efficiently as possible. It’s likely that you are aware that China is one of the few markets in the world that can offer the opportunity to manufacture a wide range of injection molded products at the lowest price possible.

Before buy any injection molding in China, you should carefully consider the advantages and disadvantages of that country. The process of starting a business can be difficult and complex, so it’s important to know if it’s the right decision for you.

China’s manufacturing advantages

• Cost-effective

Most of the companies choose China for manufacturing their injection molded products because the cost of production there is much cheaper than in other parts of the world. It is possible to reduce labor by up to 80%, however it is always determined by the intensity of your design.

You will not be charged shipping costs or duties if you choose to manufacture in the United States. Also, do not be afraid to be aggressive in your negotiation with the seller. All prices are negotiable, so be sure to be aware of that.

• Output and turnover are high

It is well known that many injection molded factories in China have high production capacities and fast turnaround times, making them capable of producing large orders efficiently and in a reasonable amount of time. Besides the low cost of labor, there is another key element here. If a production requires a lot of resources, you can hire more people to complete it.

It is very likely that your order will be completed within four weeks if you hear from your injection molded manufacturer that they can complete it in that timeframe.

Even though the low cost of labor is obviously an ethical consideration, there are also some facilities that are equally unethical due to their low wages. In these cases, you should make sure you do your research.

• Service Improvement

China’s manufacturers often go out of their way to get your business, but that doesn’t mean that they won’t do anything to get it. As you are signing a contract, it is important to keep in mind that service levels may change, so it is critical that your expectations are set clearly. Later on in the article, you will learn how you can do this yourself.

• Expansion opportunities

You may also be able to sell your goods locally if you have your injection molded products made in China. With over 1.3 billion potential customers, you can be sure it will generate positive returns since it is a big market.

Outsourcing to China is more than just overseeing the production process, it is also about setting up follow-ups with their production. By outsourcing to China, getting into the Chinese market has become easier, faster, and cheaper.

Chinese manufacturing has its cons

• Risks associated with intellectual property

It is extremely difficult and costly to enforce your IP rights and protect your IP in China. If you are a pinjection molded roduct seller, you probably know how important it is to protect your intellectual property when selling your products in China, but you also have to make sure your manufacturer is protected as well.

Time and money are required to protect your intellectual property rights in China. So, if you want to protect your rights, you should always use a lawyer who is familiar with Chinese law. This article will explain a bit more in detail how you can protect your intellectual property later on in the article.

• How to Find Your Factor

Finding the right injection molding factory to manufacture your products is going to be the very first challenge that you will have to face. You can rest assured that you will receive proper service because this is going to take some effort and due diligence. The development of a relationship with a manufacturer who is located on the other side of the world is not easy.

Although there are many resources and methods that you can use to make this process as easy and stress-free as possible, there are a few things you can do to make it smoother. In the end of this article, I will give you a full explanation of how to find your own manufacturer.

• Barriers to communication

On a whim, I’m gonna say that Cantonese or Mandarin aren’t up to par. Even though China has thrown open its doors to international trade, that does not mean that everyone is proficient in the English language. Getting a translator to help with the process can make it much easier.

The language barrier is one thing, but when you add the cultural differences, it takes on a whole new meaning. As a result, you’ll need to be more diligent in building relationships, since it isn’t like western business culture.

This is again something you can learn more about in the article about Chinese business culture.

• A higher minimum order amount

China is known for having lower profit margins than most European countries, which leads to higher minimum order requirements in Chinese injection molding factories. Your company may not be able to accommodate these minimums, in which case you will have to look for a new employer. There’s a good chance the price per unit will go up if you are able to find a factory that will produce small quantities.

If you are looking to negotiate MOQs (minimum order quantities) you will learn that there are several strategies available to you, and you will be discovering them as we progress through this guide.

• Transport

Depending on the shipping option you choose, shipping can be a real pain and, depending on what time frame you choose, can take a long time. When comparing the costs of manufacturing in China with those in countries like the United States, you will need to take into account the shipping costs, as well as the duties and tariffs.

• QA/QC

Chinese injection molding manufacturers often get a bad rap, but it really depends on the product(s) that you ask them to manufacture rather than the manufacturer. When choosing the cheapest option, you are likely to get low-quality produce. Therefore, choosing the cheapest option is not a good idea.

To ensure that the process is being regulated, you can hire a trustworthy local agent who will be able to perform in-person inspections to ensure quality. In the following section, we will discuss the ways in which you can develop a quality control plan.

It is impossible to hide from the stigma of your products being made in China. This is not going to change anytime soon. Despite the fact that some people are often willing to pay an increased price for products manufactured domestically, the fact remains that people buy products produced in China every day around the globe.

In terms of choosing a brand, there are plenty of world-famous manufacturers that come from China, so this shouldn’t be a determining factor when making a purchase.