Designing for Manufacturability – Part 5: Manufacturing Location
Today we are more of a consumer and service economy, rather than a manufacturing economy. Low cost regions of the world have developed. For instance, China has become a powerhouse for a variety of reasons:
- Their cost to manufacture is lower
- Their manufacturing speed is faster
- Their material availability is becoming better and better
- And their personnel and resources are extensive
Concurrently, there are also reasons individuals prefer to do business in the United States. Manufacturing in the US means faster shipping, similar time zones, and no tariffs or import/export duties.
Panova real world example: Back when Panova had a tool & die shop within our facility, we had a client with a new product that needed it very quickly. The Panova team immediately began working with our offshore partners. In the meantime, the manager in our US shop decided he would also build the tool. Ten days later, we had FA samples from our offshore partner in our hand. They were the right color and right dimensions and a full report was provided. The parts were ready to be delivered to the client. When speaking to our tool manager in our shop, he informed us that he was done with the tool design, but he still did not have the steel to begin building the tool.
As with all things, both locations have pros and cons and it is up to each company to do what is best for their business.
Want even more insight? Download our training now.
Read Other Blog Posts:
Related posts
How Blanket Orders Can Reduce Inventory and Improve Your Cash Flow
Forecasting demand is one of the biggest challenges in procurement. If you buy too much inventory, your cash is tied up on the shelf. If you buy too little, production delays and long lead times can leave you empty-handed. Most procurement managers spend a lot of...
How to Get your Project on the Path for Success with your Contract Manufacturer
What Successful RFQs Get Right (and Why It Matters): Contract Manufacturing 101 When you’re reaching out to a contract manufacturer for a quote, it’s tempting to think the RFQ is just a transactional step, send a drawing, get a price, compare numbers… But the reality...
Reduced Production Time with a More Reliable Supply Chain – Button Extenders Manufactured at Panova
For many customers of custom seals and related small parts, the biggest hurdle is establishing quick, reliable product delivery. It’s often such seemingly simple production challenges which require some of the most innovative solutions from your supplier. The...
Subscribe to our Blog!
Stay in the loop on the latest Panova news, trends in product development, case studies, and other stories on how we Simply Solve product design challenges. Sign up for new blog posts alerts today!