Is your company producing a physical product that needs to be manufactured? Of course, you have the option to manufacture in the United States, but it may be more financially beneficial to outsource.
Outsourcing manufacturing involves hiring a manufacturing company to produce your goods at a cheaper price than you could get if you hired a company in the United States to do it. A common place to outsource manufacturing is China, and may be a good place to start.
Before delving too deep into where to outsource manufacturing, let’s talk about the pros and cons.
Pros of manufacturing outsourcing
There are several pros of manufacturing outsourcing, which is why if you look at the label of any of your clothing or products, you’ll most likely see “Made in China,” printed on it. Here are some pros.
Cost savings
It can cost a fraction of the price it would cost you to manufacture something at home to outsource manufacturing to another country.
Efficiency
A company that focuses solely on manufacturing has all the details worked out already. You can count on production running smoothly and products getting delivered in a timely manner.
Supports innovation
When manufacturing is efficient, it makes innovation much easier. Rather than trying to sell a product that spent so much time getting manufactured, you can rely on innovation, knowing your new product will get manufactured just as quickly.
Cons of manufacturing outsourcing
Economic impact
You’ve heard it a million times. Outsourcing jobs to other countries takes away blue collar jobs from hard-working Americans.
It’s true. When you outsource jobs that could be done here, it has an impact on the American economy.
However, keep in mind the United States has several manufacturing companies as well.
Ethics
The United States places strict protections on workers in manufacturing plants. Those same restrictions may not exist in other countries.
It’s important to consider your ethics and do research on the manufacturing company you plan to hire to make sure their practices are in line with your values.
Top 5 US companies for manufacturing outsourcing
There are several companies for manufacturing outsourcing in the world. Here are the top US manufacturing companies:
- Patrick Manufacturing Inc. – They specialize in manufacturing wood products.
- Align Technologies Inc. – This company specializes in making medical equipment and instruments.
- Pilgrim’s Pride Co. – Looking to produce a food product? If so, you may not want to go out of the United States. Pilgrim’s Pride Co. is a great place to start.
- Clorox Co. – Clorox Co. specializes in offering the production of chemical products.
- Lennox International Inc. – This company manufactures electrical equipment and appliances.
It’s difficult to list the top 5 US companies for manufacturing outsourcing because products are so diversified.
For example, you may produce printed materials and none of the companies above could help you.
For a more comprehensive list of the top manufacturing companies, check out Industry Week’s 50 Best US Manufacturers.
For a list of top manufacturing companies regardless of country, check out this list. It also may fare well to conduct a Google search with your industry and location.