In a world that is dominated by those businesses that can continually increase their profit margin, it is increasingly important that your business consider making serious changes in order to compete in a global economy. Over the last 25 years manufacturing has undergone a metamorphosis that has seen the United States supplanted by China and India in the realm of manufacturing. This does not mean that the United States is unable to produce high quality material but it does remind the world that the United States is no longer capable of being competitive. Because of the high labor cost and the ever-expanding regulations on business, business owners have decided to move much of their operations overseas in an effort to maximize profit. In an ever-changing world your manufacturing business should consider the benefits of contract manufacturing.
Perhaps the best reason for considering contract manufacturing is that this process can be outsourced. This word has received negative publicity lately but it is not an ugly word. This simply means that a labor force will make your products that do not require the same amount of money as an American assembly plant. While this can be viewed negatively it does nothing but add positives to your bottom line. Since profit is the name of the game you should do everything in your power to make sure that your company is working efficiently and profitable.
One of the largest reasons that contract manufacturing is so much cheaper overseas is because of the intense regulations in the United States. With so many rules and laws on the book and with so many benefits now being paid to workers, manufacturing companies can no longer afford the American worker. When the work is being done at a lower rate there is nothing that should stop you from taking full advantage of this benefit. Some of the more intriguing countries in the world that are now moving forward in the world of manufacturing is China, India, Brazil, and Germany.
If however you are not willing and/or interested in outsourcing your job to a cheaper labor force, it is possible to hire specially trained and highly qualified technicians here in the United States. As previously stated this will require much more time and money on your end however it will show the potential customer base that you are willing and able to afford American workers. This could be beneficial in areas that are currently ravaged by a poor economy. It could also serve to boost awareness of your products as well as your willingness to hire American workers.
Regardless of what your final decision is, it is clear that contract manufacturing is the best way for your business to move forward in a world that demands and thrives on quality manufacturing.
Caltronics Design and Assembly, Inc. was established in 1995. They provide PCB assembly and contract manufacturing in Wisconsin.
