Benefits of Offshore Manufacturing
|Offshore vs. Domestic Manufacturing|
Offshore manufacturing is a term used to describe the relocation of operational processes, including manufacturing and product assembly, to a facility abroad. Companies typically move manufacturing overseas because labor is less expensive, and it can be easier to find enough skilled workers to fully support a manufacturing operation. Another reason for conducting manufacturing abroad is to avoid higher raw material costs resulting from tariffs or inflation.
Various industries including automotive, computer, food manufacturing, aerospace, packaging and others utilize international subcontracting services to increase production while lowering costs. Once manufactured, the goods are then imported back into the company’s home country for distribution and sale.
International Subcontracting for Companies of All Sizes
Sun Fast International’s offshore sourcing gives you a wide range of options for manufacturing your products. As a trusted international outsourcing company, we only work with the best, most reliable offshore manufacturers to ensure that your products meet or exceed your expectations for quality and precision. All our offshore sources have years of experience and are highly skilled in their respective manufacturing fields.
Whether you need small, complex components, simple, oversize parts, or something in between, our offshore manufacturers deliver products that match your specifications with fast turnarounds and at a fraction of the cost of domestic manufacturing.
Why Your Company Should Consider International Outsourcing
- Lower labor costs: Offshore manufacturing labor costs have historically been lower than domestic labor costs. As an additional benefit, you will also have better access to highly skilled workers covering a wide range of industries.
- Less expensive raw materials: Raw materials often cost less thanks to the manufacturer’s proximity to their source. You get the same high-quality materials used domestically, but at lower cost, due to this logistical advantage.
- Easier access to specialized suppliers: Manufacturing countries such as Asia often have a larger number of specialized suppliers, making it easier for you to find the exact equipment and state-of-the-art technology you require, all while saving money.
- More time to focus on product development: Most companies have more than one product line. By moving some of your manufacturing overseas, you can place more focus on product development and the manufacturing of your company’s niche products.
- Eliminates operational concerns: Staffing, equipment maintenance, and other day-to-day requirements are managed by the offshore source; some of the associated expenses will be reflected in production costs, but overall, offshore manufacturing represents a net gain and reduces operational headaches.
Manufacturing is only part of the challenge of running a business. Managing production is a difficult, time-consuming task that can distract you from other aspects of your business. With help from an international outsourcing company, you can focus on other key business areas, knowing that your manufacturing is being performed by skilled experts.
Outsourcing Manufacturing for Business Scaling
Almost every business has a “busy season.” Even if you’re expecting it, a large uptick in business can be difficult to keep up with. Temporarily or permanently moving your manufacturing abroad can help you quickly scale up production to meet increased demand, and scale back down when demand decreases.
The ultimate goal of any manufacturing company is to grow and to sell more products. However, it’s not always easy to expand your company as sales increase. Growing demands often create a catch-22: Your company may need additional manufacturing equipment and/or factory space to keep up with growing demand for your product, but it may be difficult to fit additional resources into your budget until you’ve sold the products you’ve yet to manufacture. Outsourcing manufacturing lets you scale up production to meet demand without a major investment, using income from increased sales to acquire necessary upgrades over time.
Access Specialized Talent & Equipment with International Subcontracting
Offshore manufacturing can give you access to specialized machinery and production staff, two common obstacles associated with working on one-off or trial projects. These assets will help you tackle short-term/limited projects quickly and cost-effectively.
- Specific Equipment: Unique equipment required to manufacture your products can be prohibitively expensive, especially if it’s only needed for a brief period.
- Specialized Workers: Hiring workers who are trained to use specialized equipment, or for other production tasks, can be a challenge, as can (re)training your current staff. This is especially true if the product is intended only for limited production.
Offshore Manufacturing Supports Local & Global Economies
Outsourcing manufacturing lowers production costs, so you can sell your products for less while still generating a profit. Whether you want to drop the price under its initial offering, or below similar competing products’ prices, offering a quality product for less generally leads to increased sales and more satisfied customers.
Ultimately, relocating manufacturing overseas can improve the economy of both your company’s home country and the country where your offshore manufacturing is done. By reducing production costs, you can pass the savings on to customers; the money saved on these products can be spent elsewhere, thereby stimulating local economies.
Increase Production Efficiency with Manufacturing Overseas
If your company provides its own manufacturing, international outsourcing services can improve production efficiency. By sending complex projects that can’t be completed on schedule in-house to offshore manufacturers, you can provide quick turnarounds, even with transit times factored in. With turnkey project management and logistics services, Sun Fast’s international subcontracting services can handle every aspect of the shipping process.
Our offshore manufacturers have the skills and expertise to complete projects quickly and efficiently, without sacrificing product quality. They offer the versatility and adaptability to adjust their manufacturing processes to your project’s needs. Working with an international outsourcing company allows you to take on production that exceeds in-house capacity and still get the job done right.
Contact Sun Fast for Reliable International Outsourcing for Your Project
Sun Fast International is an international outsourcing company providing manufacturing solutions for companies of all sizes. Contact us to learn more about the benefits of manufacturing abroad or submit a project to put our offshore manufacturing capabilities to work for you.