Advantages Of Offshore Electronics Manufacturing

Electronic manufactures are faced with increasing competition

, high labor costs, and stagnant growth in some markets. Electronic manufacturers in the United States are motivated by market conditions to expand their customer base, while reducing the cost of manufacturing. To balance the customer requirements of delivery, quality, and cost requirements, electronic companies are turning to outsourcing their labor intensive operations to offshore sub-contractors.When choosing an electronics manufacturer, this is an important factor to consider.

Additionally, internal company resources and cost limitations often hamper their ability to meet key objectives. Electronics companies cannot always commit with their constrained technical assets to develop new electronic assemblies or even redesign an existing assembly. Choosing electronic manufacturers that utilize offshore manufacturing can help refocus resources to the development of new technology and time to market.

Driven by customer demands for across the board cost reductions, electronic manufacturers are moving labor intensive manufacturing and assembly programs to offshore sub-contractors. This course of action also provides the option of utilizing these offshore operations either as a component contract manufacture or as full service turnkey developers.

Offshore sub-contract manufacturers also provide the benefit of prototyping and production experience, dedicated workers, and maintaining a fixed fully burdened labor cost. The offshore electronics manufacturing strategy is expanding the cost delta between offshore manufacturing and state side based production locations. The end result is an increased market-share gain relative to the new ability of the electronics company to sustain competitive pricing for their end product.

Electronic companies are also taking advantage of offshore manufacturing due in part to customer demands for logistical final assembly concerns. At present a vast majority of completed electronic assemblies are now done at offshore facilities. Logistical considerations are a critical factor in considering offshore manufacturing. An offshore sub-contractor must be able to provide, either internally or externally, a safe and secure warehouse for storage, safety stock, packaging, and product distribution.

Commonalty of objectives is an important operating characteristic that needs to be prioritized prior to any commitment to move forward with offshore manufacturing. Using all due diligence, expectations relative to manufacturing processes and quality requirements must be resolved before moving into production.

To clarify, businesses must make sure the sub-contractor understands that the established manufacturing and quality requirements are to be adhered to in all stages of the manufacturing process. Commonality of objectives provides the best option for controlling costs, ensures efficiency, and maintains end customer satisfaction.

by:TerryRettig

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