China is a powerhouse country when it comes to manufacturing. According to the World Economic Forum, 28% of global manufacturing in 2018 was from China. With low labor costs and high mass production capability, it’s no wonder so many companies across the world turn to China manufacturing for their products. But, the benefits of Chinese manufacturing also come with downsides. Exporting products from China and dealing with Chinese customs can be difficult for businesses. International Product Solutions provides a one-stop-shop for getting goods from China without having to deal with Chinese customs and manufacturing yourself.
Advantages of Outsourcing to China
There are plenty of advantages when it comes to outsourcing to China. Lower costs for manufacturing creates an easy solution for businesses seeking higher profit margins for their products. Some businesses may already have products that they want to make elsewhere for cheaper costs of production. This is where China presents an advantage.
Lower Costs
When comparing the Chinese Yuan to the USD, you can already see the difference. Labor costs are significantly lower in China compared to the United States. In fact, China tends to be cheaper than most countries when it comes to manufacturing goods. According to the U.S. News & World Report, China is the second cheapest manufacturing country behind India. Combined with the highest population in the world, China has an abundance of manufacturing facilities mass producing goods for companies all over the globe.
Quality Control
Cutting edge technology and highly skilled labor force contribute to the ease of quality control at manufacturing facilities in China. IPS provides quality assurance at all of our manufacturing facilities in China. With our extensive quality control procedures and knowledge, we guarantee that our clients only receive the best quality product, every time.
Mass Production
Because China is one of the biggest countries in the world for manufacturing, they have high mass production capability. It also helps that China has one of the largest populations in the world. There is never a worry about finding skilled labor for manufacturing facilities. China has manufacturing facilities that can mass produce custom products for a wide range of industries. The trick is knowing which factories are reputable, and which are simply in business for the short term.
Faster Production
China takes pride in the high efficiency in which they can manufacture goods. Companies outsourcing their manufacturing to China will still have to wait until their products clear Chinese customs, and ship via ocean or air. But, because of fast production paces, they can receive their products faster than places with less efficient means of manufacturing.
Disadvantages of Using Manufacturers in China
Unfortunately, all of the benefits of manufacturing in China also come with downsides. Dealing with the exportation of goods from China, shipping timelines, language barriers, IP protection, financial risk and unscrupulous factories all pose challenges for businesses. Through IPS, businesses do not have to navigate China sourcing themselves.
China & US Customs
Handling China and US customs can be challenging. Before products are exported from China, they must undergo point of origin customs inspections. This can delay shipping and lead to uncertainty in delivery timelines. Products cannot be packed onto a boat or other transportation without going through customs. This may involve more back and forth in communication between the business and China. Once goods arrive, they undergo intensive examinations with US Customs as well, with some shipments getting “stuck” in Customs for months. With offices in China and the US, and a spotless reputation with customs offices worldwide, IPS has the experience and reputation to move goods through origin and destination ports quickly and efficiently.
Shipping Timeline
Shipping times vary when it comes to exporting from China. I Some ocean carriers have multiple ports to travel to once they start filling their vessels. The wrong (discount) carriers can add months to the overall timeline. IPS only works with reputable carriers. We negotiate our rates annually, and only use carriers with the quickest routes. If problems do arise, we leverage relationships we have cultivated with carriers for decades to expedite our clients shipments.
Communication
Language barriers between China and the U.S. can make manufacturing there difficult. Lack of communication is never good for any business. Having bilingual staff on the team becomes a necessity. Having a business like IPS communicate on your business’s behalf makes the process go much smoother without miscommunication bogging anything down.