US vs. China

So you think buying injected plastic parts in China gives you a competitive advantage? Companies are learning that China’s reduced labor costs come with added expenses. Any cost benefits are quickly eliminated when you factor in reworked parts, shipping delays and poor workmanship.

Here are some facts for you to consider:

Plastic Injection is coming back to the U.S. – The tenth largest export from the USA to China is Polyethylene … $569.7 million (up 127.7% from ’09 to ‘10). That’s plastic to you and me.

Hidden Costs – Chinese manufacturing quotes often exclude shipping costs, duty shipping, translators and international insurance. American companies must also factor the added cost of managing inventory that is warehoused internationally or in-transit.

Quality Fade – A recent Forbes Magazine article, “Dealing with China’s Quality Fade,” stated that Chinese manufacturers will often reduce the quality of their materials to increase profit margins. This is a growing problem that can compromise product safety, increase recall frequency and tarnish brand perception.

Legality – It is difficult or near impossible to take legal action against Chinese manufacturers; in many cases, Chinese manufacturers will adopt a new company name to avoid legal implications. In addition, US patent laws do not apply in China, resulting in the risk of copycat products.

Delays – China manufacturing turnaround times and shipping estimates are unpredictable due to logistics, manufacturing complications, weather, etc. Modor offers guaranteed turnaround times to improve your time-to-market and reduce warehousing costs.

Miscommunication – Language barriers can compromise final product quality. Often, American engineers must make repeat visits to China to correct manufacturing issues and oversee production. In some cases, Chinese manufacturers will not admit to manufacturing problems.

PaulMidler, author of “Poorly Made in China: An Insider’s Account of the Tactics Behind China’s Production Game,” states that, “Manufacturing companies that produce a substandard product often know what the problem is with their product, but they don’t provide much of a hint to their customers. This means that importing companies have to guess at where corners may have been cut.”

The American Difference

At Modor, your part is right when it leaves our factory or we make it right. Contact a Modor representative to learn more about the Modor difference.