Outsourcing is a common practice for companies across the US. The main reason for this is that us manufacturing is far more expensive than it is in places like China or India. Even companies that boast “made in the USA” often only assemble their products in the US, while having the parts manufactured in another part of the world. While there are many people who are opposed to buying from companies that outsource, the truth is that most people ending up bending to the will of their bank accounts. If it’s less expensive to purchase a product made in China, then that’s what they do.
As a business owner, it can be conflicting to make the decision to outsource, but it is often about the bottom line. A company can pay a fraction of the cost of manufacturing if they outsource it to another country. Even with shipping, it’s less expensive to manufacture products in China. This type of savings can mean the difference between a company flourishing or being driven out of business.
It’s important, however, to be responsible when outsourcing to countries like China. Unfortunately, without labor laws protecting children and providing basic safety measures in the workplace, some manufacturing facilities are abhorrent. It’s safe to say that if a company gains popularity, and they use facilities that are essentially slave yards, they will be found out, and the company will take a big hit. It’s necessary to research the china manufacturing companies to ensure that only those with the best conditions for their employees are used.
This might actually require a trip to China in order to visit the facility. Reputable manufacturers in this country have no problem with an on-site visit. A company that refuses this service should be avoided as they likely have something they are hiding.
Outsourcing has the added benefit of saving on employment costs. Employing people in the US requires a number of insurance policies to be in place as well as quite a few taxes to be paid on a quarterly basis. Outsourcing allows a business to skip this part of manufacturing and the money can be spent on growing the business.
If you have a company that makes products, you might want to consider outsourcing this work to another country. It can save you money, which can also save your consumers money, which is something that everyone can be happy with.