Domestic manufacturing tends to be more expensive upfront than offshore manufacturing, especially when it comes to the price per piece. But manufacturing projects are more than just the individual part prices. Other aspects such as shipping costs, lead times, part quality and consistency, communication challenges, and cybersecurity also play into the total cost of the project. And despite offering initially lower upfront per piece costs, working with offshore plastic manufacturers may lead to a higher total cost for a project in the long run.
Offshore Plastic Manufacturers: Cheaper Piece Price, Increased Risk and Total Project Cost
Offshoring was a major trend for a long time, taking advantage of cheap labor, tooling, and price per piece found in overseas manufacturing suppliers. However, the recent global events, such as the pandemic and changing tariffs, show just how fragile these global supply chains really are, and how easily they break down due to unexpected changes. Add onto that inconsistent part quality, unreliable delivery schedules, and longer lead times–all of which drive up the total project costs–and that total cost suddenly gets a lot higher.
Plus, offshore manufacturing presents a far more volatile supply chain overall, prone to delays, unexpected changes in import duties and tariffs, unforeseen design corrections, and other major issues. Sometimes, the risk just isn’t worth the cost.
Domestic and Local Plastic Manufacturers: Higher Upfront Costs, Minimized Risk and Long-Term Expenses
Recent events may have brought the challenges of offshore manufacturing to the forefront of conversation, but reshoring and onshoring have been a major trend in the U.S. for the past couple of decades. Local plastic manufacturers have several advantages to offer over their global competition:
- Reduced Supply Chain Risks: Working with a domestic supplier, especially a local one, significantly reduces the risks associated with global supply chains. These suppliers won’t be as affected by tariff changes or overseas events that would impact offshore manufacturers.
- Shorter (and Cheaper) Delivery: Delivery costs might seem insignificant at first, but consider unexpected weather and shipping delays, long-distance deliveries, and the risk of damage during transit. All of these risks decrease significantly when working with a local or domestic plastic manufacturer, which decreases long-term, total costs as well.
- Consistent Quality and Security Standards: Quality and cybersecurity standards differ between countries, sometimes in small ways, and sometimes in large ones. Partnering with a domestic manufacturer eliminates these inconsistencies and reduces the risks of insufficient cybersecurity and insufficient quality management.
Looking for U.S. based plastic manufacturers?
World Class Plastics, Inc. is an American-made and Veteran-owned plastic manufacturing company based out of Ohio with a long history of quality customer service and plastic injection molding. If you’re looking to partner with domestic manufacturers, consider working with us–contact us today to request a quote or more information.