It is China that is the undisputed outsourcing solution for US-based companies. Despite other nations like India and Pakistan rising and establishing their own market share, China remains the dominant market player for companies that are looking to reduce their production costs.
While low labors costs are one reason for China’s outsourcing success, there are plenty of other factors that contribute. When organizations consider outsourcing large-scale production of various products, Chinese manufacturing is the logically choice for many different components and industrial goods. Plastic is one area where China particularly excels.
One reason for Chinese dominance in manufacturing plastic components is not only the low labor rates but other, lesser known reasons. With almost 70 percent of the world’s plastic recycling being shipped directly to China, it allows production to reduce costs even more since recycled plastic is less expensive. China leads the markets in recycled plastic and is able to secure the raw material pricing that no one else matches.
Because the Chinese typically reject any unclean recycled plastic, it also ensure that the best quality of recycled plastic is used for Chinese plastic manufacturing. Chinese factories are focused on improving the quality and lowering the manufacturing cycle times by reducing waste and concentrating on producing a better quality product.
The Chinese efficiency and productivity rates have improved rapidly over the past years and when the lower labors rates and low cost of raw materials are also factored in, it makes Chinese manufacturing the clear choice in plastic manufacturing also.
With the cost of freight decreasing over the past couple of years, combined with the low manufacturing and material costs, it is little wonder that more and more businesses are outsourcing their plastic manufacturing to China.
China’s ability to slash and reduce costs in multiple areas is critical for US-based companies and can produce items from industries like electronics to automobiles. The are many other reasons why organizations are outsourcing manufacturing to China. To see if Chinese manufacturing is right for you, contact any one of our partners to help your organization navigate through the world of overseas manufacturing.