Did you know that some of the best well-known brands and companies send their manufacturing needs overseas? Thousands of companies choose to outsource their manufacturing because it gives them more time to focus on other facets of their business. With China being the primary source of overseas manufacturing, you may be surprised to learn which companies seek a little help overseas.
Apple’s unique relationship with the Chinese manufacturing firm Foxconn is no secret to the world. Without this partnership, there’s a good chance the company wouldn’t be able to sell their products like iPhones, iPads, and Macbook computers at such a reasonable price. According to an article from 9 To 5 Mac, Foxconn recently broke new ground on its first plant in the United States. The Wisconsin factory has been estimated to cost close to 10 billion dollars with the hopes of filling thousands of jobs.
As one of the world’s biggest retailers of athletic shoes, Nike is known for manufacturing their footwear and clothing outside of the United States. According to an article from the Wall Street Journal, Nike’s founder, Phil Knight, came up with the idea of outsourcing manufacturing jobs to cut down costs. As an early adopter of outsourcing, Nike saw an extreme boost in business growth. While China hosts the largest share of Nike’s manufacturing plants, they also have plants in other countries like South Korea, Thailand, and India.
A majority of Walmart’s goods are manufactured overseas in China. With more than 10,000 suppliers in China manufacturing for Walmart, the company eventually moved its global outsourcing headquarters from Hong Kong to a Chinese city called Shenzhen in 2002. In 2013, Walmart’s Chinese imports from overseas totaled a whopping 49 billion dollars.
In 2010, Microsoft signed a three-year deal with Infosys Technologies in Bangalore, India to manufacture specific parts of its internal IT operations. The agreement spread across 450 unique Microsoft locations throughout 104 different countries. As a result, Infosys enhanced the company’s technological capabilities by introducing them to new technologies that were not available yet in the United States.
In addition to the companies listed above, the following corporations currently outsource to Asia:
- Hewlett Packard
- PDM Bridge
- Omega Engineering
- Hasbro Inc.
- Boeing Co.
- General Motors Powertrain
Why Do Companies Outsource Manufacturing?
There are many reasons to outsource your manufacturing needs. Whether you’re looking for a way to cut labor costs or improve focus in the office, finding an outsourcing company to help you can be the difference between a successful business and a failing one. Because China accounts for one-fifth of the global manufacturing market, it remains one of the biggest manufacturing nations in the world.
Reduce Labor Costs
As we mentioned above, one of the biggest reasons people choose to outsource manufacturing is because they are looking for an easy way to cut labor costs. Instead of building a manufacturing facility from scratch and hiring new employees, it can be much easier to delegate the job to a qualified facility overseas.
Similar to labor cost savings, outsourcing can also save you a significant amount of money when it comes to overhead costs. Instead of worrying about how to expand your business, you can rent or buy spaces overseas at a cheaper price.
Outsourcing your production needs of a new product may allow you to get to the market at a quicker pace. Since you won’t have to worry about building your own factory, purchasing the proper equipment, and hiring employees, there’s much more room for you to expand your business’s capabilities.
Improve Workplace Focus
When manufacturing products on your own gets too cumbersome, outsourcing your needs can be the best route to go. While you’re busy marketing your business and generating new sales, hiring a manufacturing facility in China or South Korea can save you a ton of time, energy, and focus. This will allow you to concentrate on what’s really important: running your business.
Access To More Talent
When you expand your manufacturing needs overseas, you’ll have more access to talent that you wouldn’t have in just the United States. If you need specialized help, say for a sporting good product, you may be able to find a company overseas that only makes tennis rackets, hockey sticks, volleyball nets, and the like.
High-Quality Products & Materials For A Good Price
When you purchase products and materials from China, you can get them for a mere fraction of what you’d pay in the United States. It’s also important to note that some Chinese factories offer discounted rates for bulk orders.
As you can see, there are many reasons to consider outsourcing manufacturing. While outsourcing can be a somewhat controversial topic, it’s done wonders for a hundreds and thousands of businesses across the United States. If you need simple to complex products created, you can trust United Global Sourcing to find you a manufacturing facility that meets your needs and budget.
United Global Sourcing: Your Partner In Outsource Manufacturing
If you have a brilliant idea for a product but you don’t know where to start, reach out to United Global Sourcing today. We’ll take the time to understand your unique needs before recommending an overseas manufacturer for your product. Unlike other companies that connect you with a manufacturer, only to disappear, we’re proud to maintain a 24-hour communication cycle with all of our clients. We understand that your needs are unique, which is why our team will always ensure that your components and parts are delivered on time, as promised.
Our professional team can help you find the best manufacturing facility for a myriad of processes, including:
- Castings and forgings
- Precision machining
- Plastic-injection molding
- And more!
We also offer supply-chain services to help you get your product on the market such as:
If you have any questions about our services, contact our team today. We specialize in both industrial manufacturing and consumer products and we can help you find the best overseas manufacturer for your product.