Offshoring Not Always an Advantage For Small Businesses

August 19th, 2011

Made in USA LogoCertainly it’s much less expensive to offshore your manufacturing to Asia, but some US businesses have said, “Enough!” due to quality problems, production delays, intellectual property concerns, and the large lead time from prototype approval to delivery. These businesses have returned to domestic manufacturing sources. Note that this situation mainly applies to small businesses with relatively low manufacturing volumes—apparently the Asian companies don’t consider them important enough to worry about. But it’s not just small companies. The linked article also explains how Chinese wages are not as low as they used to be, and that offshoring, which used to be a no-brainer, is not necessarily the best business decision to make.


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