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Injection Molding In US vs. Offshore Facilities: The Truth About Cost Differences

Facts You Should Know

Companies are always seeking to save money and establish an advantage over their competitors. For years, one option has been to outsource manufacturing duties to overseas suppliers. Lower employee wages and reduced overhead allow many foreign providers to quote much lower initial prices. So why does the market share for injection molding in US facilities continue to grow? The answer is the true cost of ordering parts from overseas. When choosing a plastic parts supplier, there’s much more to calculating prices than simply comparing bids. Here are just a few of the factors that must be carefully considered.

Communication

The most obvious difference when utilizing offshore suppliers are the inherent language barriers. Clear and continued communication are vital to every part of the order process and ultimate services expected. A simple misunderstanding can result in significant costs, not to mention the additional fees required to pay reliable translators for each and every business transaction. Working with different measurement standards, inaccurate translations or basic inequalities in the way business is handled, can all affect your bottom line. Forming partnerships with local companies means you begin the process from, literal, common ground.

Order Fulfilment

Logistics are a primary concern in any manufacturing scenario, but are doubly important when considering international suppliers. Here are just a few of the factors to take into account:

  • Timing – Even short delays in production can have a major impact on turnaround times, as orders must undergo additional processing procedures to ensure they meet customs regulations. There are also, often unfamiliar, local holidays or labor regulations that might delay delivery.
  • Order Minimums – Because of the additional costs to the supplier, international order minimums are often higher in order to make them financially viable. While you may only need 200 parts, an overseas supplier may require orders of 1000 or more.
  • Shipping – One of the most obvious potential order issues is shipping. While quoted prices may initially appear lower from a foreign manufacturer, injection molding in US facilities can often be accomplished at a lower overall cost when shipping fees are factored in. Customs charges, duty fees, insurance and additional transportation expenses must all be factored in when estimating the real cost of doing business.

You Know What To Expect From Injection Molding in USA And North American Facilities

Design and production standards allow domestic factories to produce parts of a quality that international suppliers often struggle to match. Molds are created using the latest 3D modeling technology and are machined to minute standards. Materials are also highly regulated and sourced from reliable, certified suppliers to ensure consistency. While some offshore companies have similar standards in place, regulations can be difficult to enforce and the resulting parts can range dramatically in quality and durability.

Working with local companies also ensures that should problems arise or if additional parts or products need to be ordered, they will be available and quickly accessible.