Falconer Electronics Inc. is seeing a strong trend in bringing custom manufacturing services back to the U.S. using onshoring. As a United States based contract manufacturer for over 30 years the company knows what works and what does not. There are numerous challenges and threats with outsourcing manufacturing operations to foreign countries. There are also many hidden costs associated with outsourcing manufacturing operations overseas. These determining factors include the heavy cost of monitoring operations and quality control, lack of intellectual property protection and an extended supply chain. Consequently these are all reasons a company would be better onshoring their products instead of offshoring them.
Manufacturing Benefits of Onshoring
Since these positive trends with manufacturing operations returning to the U.S. hold great promise for U.S. manufacturers. This is opposed to outsourcing production abroad to foreign countries. Terms such as onshoring, reshoring and redesign manufacturing are generating a new buzz. Onshoring drastically improves lead times and cuts inventory levels. It is crucial to be located close to our vendors as supply chains shrink. Companies in the U.S. are finally realizing the many benefits to manufacturing products stateside after decades of losing U.S. manufacturing jobs to lower cost countries such as China. Since wage gaps are also shrinking between China and the United States, the U.S. offers a superior infrastructure. The U.S. is superior in terms of automation, education, information technology and transportation.
The products and services a business offers effect every aspect of the company from strategy, supply chain, staffing and operations. Control over the protection of intellectual property is another one of the many concerns and a huge vulnerability with relying on foreign suppliers. Stolen proprietary information and processes are a major problem and can be devastating to a company.
Quality Control in Manufacturing
Quality control is another serious issue. Separating manufacturing and product development can be extremely detrimental. Managerial focus when operations are halfway around the world is a significant disadvantage. At Falconer Electronics, we pride ourselves on producing top quality printed circuit boards (pcb) and wire harness assembly. We have had many clients experience unacceptable products from foreign suppliers where these products had failed to meet our customer’s standards. Falconer Electronics has a history and in-depth knowledge of Circuit Board and electronics assemblies from subsystems to complete systems assemblies. We have found that our customers greatly cherish the reliability and high quality work our team provides.