5 Key Benefits of Outsourcing Manufacturing in USA

You have a great product to take to market, and you’re considering outsourcing your manufacturing… in the USA.

NOW is the moment to make your products here in the USA. We are enjoying an undisputed renaissance in Made in America manufacturing today. MadeInUSAWe believe so strongly in the movement that we make US-based contract manufacturing our own business.

However, don’t just take it from us. American icons such as General Electric, Apple and Whirlpool are making headlines as they shift their product manufacturing back to the United States. Likewise, international companies like Beijing-based Lenovo are utilizing American manufacturing to deliver products to American consumers more quickly and add the “Made-in-the-USA” stamp along the way.

Here are 5 key benefits that make outsourcing manufacturing in USA the best decision for your business right now:

1. USA-made will give you fast, reliable, cheaper delivery.

Having your precious cargo cross the Pacific, in many cases, is no longer worth the headache. Plus, it’s expensive. One of our customers experimented with sourcing parts to Taiwan about 5 years ago.  Today, after enough delayed (or lost) ocean freight shipment, our company – not Taiwan – is manufacturing their higher-volume parts again.

“Companies perform better when they are located near many other firms than when they are more geographically isolated,” notes the Brookings Institute.  “When a manufacturing establishment relocates offshore, the related companies in the region suffer disproportionately.”

2. Outsourcing Manufacturing in USA vs China to be even again by 2015.

Cost savings of outsourcing – particularly to Asia – is eroding and making American manufacturing a more attractive option. Add the costs of shipping (see #1 above), rising value of the Chinese Yuan and higher Chinese labor wages, and your decision to manufacture in the USA just makes good financial sense. Just ask Jeffrey Immelt, CEO of General Electric – this outstanding Atlantic cover story tells his and GE’s story.

“I don’t [manufacture in America] because I run a charity,” Immelt said at a public event in September 2012. “I do that because I think we can do it here and make more money.”

3. Embrace the American tradition of ingenuity and productivity.

For one California-based startup, ET Water Systems, declining working capital and innovation soon following after they joined the exodus to Asia in 2005. According to The Economist special report on reshoring manufacturing, ET Water Systems improved their innovation processes by shortening the distance between manufacturing and design and working with a San Jose-based manufacturing partner instead.

Specialty Design’s central location between the major US metropolitan areas of Washington, D.C., Philadelphia and New York enables our customers to work closely with our engineering and CAD design staff. MadeInUSA2Some customers even visit with our CNC machining crew on their commute to work to review current orders. Keeping your manufacturing and engineering closely tied together – geographically – will help tremendously in the long-run.

4. “Made in the USA” will protect your PR and your business.

According to BCG and the USA Today, 80% of Americans are willing to pay more for American made products, and 93% of whom buy USA-made because they want to support domestic jobs.

In other words, “Made in the USA” gives you FREE, built-in branding. Your customers will be more likely to trust your product. Trust that their purchase generates American jobs. Trust that your workers received a fair, American-level wage. Trust that their purchase was manufactured in a safe, OSHA-regulated plant. Trust that they are not receiving a pirated product.

Investing your manufacturing outsourcing with an American vendor might be one of the soundest marketing, safety and intellectual property decisions you ever make for your business. We’ll take a 3-for-1 deal any day.

5. Do your part to “re-manufacture” the American economy again.

For every $1 spent on US-manufactured goods, $1.48 goes back into the economy (Time). That is the type of ROI that we need to rebuild the American economy the right way.  Time Magazine Made in the USASince manufacturing represents a huge 67% of R&D spending in the private-sector, as well as 30% of the United States’ productivity growth, the payoff could be enormous.

There is a high-road to take in manufacturing after all. Take it from Carolyn Rafaelian, who built a $100 million jewelry company that only sources from domestic partners and has brought hundreds of jobs back to the US in the process. Or find inspiration from the success of the Made Collection website – an flash sales site selling solely USA manufactured products.

Your reasons to pick American manufacturing outsourcing are as clear as our colors are red, white and blue.
American plants are (once again) proudly open and ready to support your business.

About Justin Knabb

Justin Knabb is VP of Operations at Specialty Design and Manufacturing, a family-run, US manufacturer of custom home building products as well as custom industrial machinery. Justin is a fan of microbreweries, traveling, Apple products, and Philly cheesesteaks. He can be reached at 1-610-779-1357 or here.