What if I told you that 53% of all American businesses selling physical products, according to Statistic Brain, outsource their manufacturing? “Outsource” has become something of a dirty word in the United States, generally tied to words like “un-American.” However, you need only look at Microsoft, Apple, and Google, three American powerhouses that rely on electronic manufacturing companies to generate their revenues and employ American workers, to see that outsourcing can be an economically viable solution to your production needs.
If you think that negative consumer sentiment outweighs the benefits of contract manufacturing, you might not have all the facts. Here are the three biggest benefits of contract manufacturing that more and more American businesses see as reason enough to send their production out of the country.
The Three Biggest Benefits of Contract Manufacturing
- Drastically Reduced Production Costs
- Expertise and State-of-the-Art Technology
- Security and Reliability
One of the main reasons companies, like the aforementioned Microsoft, send their production to electronics contract manufacturing companies is cost. As The Houston Chronicle details, when you outsource production, you don’t need to pay workers’ wages, provide healthcare benefits, or purchase and maintain expensive equipment. All of this means drastically reduced overhead.
For the Business Development Bank of Canada, access to the most skilled workers and advanced production technologies in the world is reason enough to use electronic manufacturing services and other outsourced manufacturing companies. Taken together, expertise and technology means being able to produce every unit of your order to your exact specifications, in a very short amount of time, at very low costs.
When you take on production for yourself, there is a seemingly endless list of things that can go wrong. Losing employees, for example, can cripple your ability to produce great products on time. Outsourcing helps you avoid that pitfall by providing a stable, reliable presence. Not only does this reduce your risk, it also means knowing that every time you put in an order for your latest and greatest product, you’ll know exactly what you can expect.
Which advantages of contract manufacturing have had the biggest impact on your business? Share your story in a comment below.