Often Domestic Supplies Cost Less in the Long Run

Are you sure it’s really cheaper to have your parts made in China?

Using Chinese and other foreign parts suppliers has been the reigning trend over recent years in the production industry. But metal fabricators and manufacturers are experiencing wide-spread disenchantment with their off-shore suppliers. While the cost of foreign labor may be low, the actual cost of doing business overseas and relying on them for timely supply has been disastrous. Why is this?

Ocean freight to transport cargo is long and expensive. You need your materials now, not 30 days from now! Oceanic shipping also comes with the additional risk of climate and jet stream current changes that delay delivery times, ships that sink, break down, or lose cargo, and safety hazards due to an increase in piracy.
  • Air freight to transport replacement parts for quality control or emergency changes in quantity can send the total production cost soaring.
  • The language barrier extends much further than differences in dialect. Chinese manufacturing companies have consistently shown a lack of innovation and understanding for the American market. While they may “copy” parts efficiently, they cannot be turned to for creative solutions and new design for market distinctions.
  • The entire process is fraught with stressful fluctuations and additions through changing currency values, port of entry fees, storage and lift fees, and additional duty/tariffs, all of which are avoidable by using a domestic supplier.
  • Quality control issues are extremely high risk as news story after news story breaks over inferior and hazardous material choices Chinese companies have used.
The solution to this frustration is to remember that the cheapest option is not always the lowest cost in the long run. Stock holders may want to see a low bottom line and pressure you to select the lowest quote. If you’re attempting to sell them on cost, you must show that the lower overall cost comes in avoiding the consequential expenses of dealing with suppliers overseas: their delays, freight charges, and risky quality control issues.
 
Use American suppliers for customized metal stampings, Tool & Die products, and manufactured parts. Unique Tool can offer you local solutions at a better price in the long run. It is possible to have an edge over the companies that are relying on imports; the production process involves much more than mere labor costs. Reliable suppliers that use dual sources, maintain high performance with lean production practices, and possess industry knowledge they then pass onto you set you apart from your competition. Avoid being cheap only to pay the painful consequences of customer and profit loss through unnecessary delay and overhead expense. To speak with someone who can supply you with customized stamping products or help you examine your own production practices, call 1-734-850-1050 or send us a message using the contact form below.
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