We’re all familiar with the business drivers that lead companies to outsource some, if not all, of their manufacturing production (what often boils down, at its essence, to saving money, whether those savings come from cheaper labor or economies of scale for high volume manufacturing).
But while outsourcing as a business strategy continues to grow, we aren’t seeing corresponding growth in offshoring. Why? And how does hyper-local manufacturing fit into this outsourcing model?
WHY WE CHOOSE LOCAL: WHEN MONEY ISN’T EVERYTHING.
Sure, all businesses want to save money, but most businesses won’t simply do whatever it takes to save money, when that means they also risk so much more in the process. That’s often the case when it comes time to select an outsourcing partner. Why risk the communication challenges and loss of control that can often go hand in hand with overseas production, when working with a local manufacturer provides you nearly as much control of your production as if it were happening at your own facility? Want to keep a close eye on the quality of your products? Come on by the factory and see the products in person anytime you want. When you work with a local manufacturer, this type of access is no longer just a pipe dream.
OK, WHAT IF MONEY IS EVERYTHING FOR YOUR BUSINESS? LET’S TALK SHIPPING.
For many businesses, shipping costs can run as high as 30 percent of the overall costs associated with a product. That number can often be dramatically reduced when working with a local manufacturer. Add to that the corresponding decrease in the amount of time needed for shipping, and you’re looking at an outsourcing winner. Combine that with the specialized services and deep expertise businesses gain access to when they work with an outsourcing partner, and it’s not hard to tell why these numbers are growing.
REGIONAL LOYALTY EXTENDS TO MANUFACTURED PRODUCTS.
Ever felt the pride of seeing a local athlete make it to the big leagues? That feeling extends to the businesses that work to give back to the community in the form of job creation and other economic benefits that come from strengthening your region’s manufacturing industry. If you think your customers won’t notice whether your products are manufactured in a city they recognize versus somewhere in Indonesia, you may not know your customers very well.
The global manufacturing industry is evolving, and sticking to the tactics that used to work may leave you behind your competitors. Manufacturing is a critical component of our region’s success. And our region works best when we work to build it up together.
Have questions about choosing a local outsourcing partner? Contact us today to speak with a KASO service representative today.