The Advantages of Manufacturing in China

Chinese manufacturing is a practice that U.S. and international businesses have recognized as an essential asset to reducing prices for their products. As domestic prices rise, the need for affordable overseas manufacturing grows (Nathan Resnick, 2018). 

China has answered that call and today, you can see the “Made in China” tagline on many custom products including clothing, furniture, and toys. Their manufacturing capabilities have continued to grow since the inception of China manufacturing, and their factories produce private label products worldwide (Nathan Resnick, 2018).

The Advantages of Manufacturing in China

1. Lower Manufacturing Costs

The cost differential between manufacturing domestically and manufacturing in China is significant. Domestic manufacturers have higher overhead with steep training costs and high turnover. China’s affordability makes overseas manufacturing ideal for the common business (Nathan Resnick, 2018).

2. Cheaper Labor

Outsourcing to China gives you access to that factory’s cheap labor without having to train the employees, provide access to a computer, or endure any of the other hardships of hiring locally. Wages are significantly lower in China and tapping into those savings is as easy as establishing a relationship with a factory (Nathan Resnick, 2018).

3. Higher Production Capability and Efficiency

Factories in China are sought around the world for their incredible efficiency and speed. As soon as production lines are set up, the manufacturing process can begin with little to no interruptions (Mike Stewart, 2014). They produce goods for the global economy. They have scaled their manufacturing capabilities well beyond what was ever believed possible. When you outsource to China, you’re working with time-tested factories that have been producing quality products in similar industries as yours (Nathan Resnick, 2018).

Cheap labour costs play a crucial role in this aspect. You can hire more people to complete volume-demanding production while requiring less money than domestic facilities do (MacKenzie Brown, 2018).

4. Better Expansion and Diversification Opportunities

Outsourcing to China manufacturers allows you to do this on-the-fly. You can expand and diversify your product offerings, as well as sell your products to international markets much easier (Nathan Resnick, 2018).

5. Worldwide Shipping

Even though products are made in China, it is easy to ship them across the world. You do not have to focus on simply domestic markets. However, you can now distribute and sell your products simultaneously to people on different sides of the globe (Mike Stewart, 2014).

6. Easy Market Expansion Opportunities

When you have products made in China, chances are you can also market the goods to the local market. They establishing a supply chain and local marketing efforts. They hire local employees and acquire equipment to support their ventures. With over 1.3 billion potential consumers, you get the promise of good returns. This is a big advantage if you plan to sell your product abroad (MacKenzie Brown, 2018). 

The Bottom Line

If your business could benefit from lower manufacturing costs, China manufacturing might be the single best move your company could ever make. There are millions of quality producers established in China with real factories. Consider outsourcing your ideas or products to China to get the most out of your business and improve your bottom line (Nathan Resnick, 2018).

Edited by: 浪子

Bibliography

Mike Stewart. (2014). 4 Benefits of Having Goods Made in China. Retrieved from 
https://www.itimanufacturing.com/news/4-benefits-goods-made-china/

Nathan Resnick. (2018). The Advantages of Manufacturing in China and the Benefits It Brings to Your Business. Retrieved from https://www.trysourcify.com/advantages-manufacturing-china-benefits-brings-business/

MacKenzie Brown. (2018). The Pros and Cons of Manufacturing in China 2018. Retrieved from 
https://www.cadcrowd.com/blog/the-pros-and-cons-of-manufacturing-in-china/