How much does it cost to outsource manufacturing to China?
By outsourcing to China, you can reduce costs by between 30 and 80 percent depending on the labor intensity of the product. These outstanding rates will lower your cost of production exponentially.
Is it cheaper to outsource production to a third party?
By outsourcing part or all of its production line to a third party in a lower cost location, the company can enjoy a significant decrease in production costs. It is more affordable to outsource production processes to companies that have a comparative advantage in that area than to produce them internally.
Why do companies need to outsource their manufacturing?
One of the many obstacles faced by companies today is the need to bring new products to the market as quickly and as efficiently as possible. Outsource manufacturing involves the hiring of people who are not employees of that company to assemble parts of, or build an entire product.
How much of the world’s manufacturing is in China?
The steady growth of the manufacturing industry in China has been very remarkable. In fact, 35 percent of the global output is primarily sourced in China. To this regard, a lot of companies are showing interest in outsourcing their manufacturing to China.
By outsourcing to China, you can reduce costs by between 30 and 80 percent depending on the labor intensity of the product. These outstanding rates will lower your cost of production exponentially.
When do you have the manufacturing team based in China?
When you have the manufacturing team based in China, you additional insights into foreign markets. Most companies who manufacture products in this country are likely to diversify their reach and try some of the common local products and this can help in improving your business growth. The Asian market is growing at an incredible rate.
One of the many obstacles faced by companies today is the need to bring new products to the market as quickly and as efficiently as possible. Outsource manufacturing involves the hiring of people who are not employees of that company to assemble parts of, or build an entire product.
How big is the outsourcing and offshoring industry?
The outsourcing and offshoring industry is at a turning point. What began as a small-scale sector dedicated to application development, accounting, and payroll has become, as of 2008, an $80 billion global industry, addressing a range of business processes and technology services.