November 4, 2021

Options for Outsourcing Electronics Manufacturing

Deciding to outsource certain portions of operations like manufacturing are often a sound business strategy, particularly in the medical device industry. Benefits include an increase in overall production efficiency, reduced development time and a reduction in costs.

The decision faced by many business leaders in this sector isn’t whether to outsource, but rather where to outsource. There are advantages and disadvantages associated with keeping operations close to home or outsourcing globally. This blog looks at options available to those companies that have already decided to outsource certain operations.


Onshoring of manufacturing of electronics became more of a topic of discussion once tariffs and the coronavirus pandemic hit in 2019 and 2020, severely hampering the electronics industry.

Advantages of onshore electronics manufacturing include:
  • Keeping intellectual property closer to home
  • Reduced shipping costs
  • Localizing supply chains
  • Made in the USA has value and helps move product
Disadvantages of onshore electronics manufacturing include:
  • Companies need to pay higher labor wages for U.S. manufacturing
  • Due to a lower labor pool, turnaround times for production could be negatively affected.

Although these disadvantages are noted, the lessons that the global pandemic taught manufacturers are still fresh. Offshore supply chains are extremely fragile. Bringing electronics manufacturing back to the United States gives manufacturers the opportunity to explore new suppliers and limit risk, but also is more of an expense.

Each organization has to weigh these issues and decide what works best for their operations overall.


Obviously, the largest advantage of moving manufacturing operations offshore is that the material supply chain is usually located in Asia and labor costs are significantly cheaper there than in the U.S. However, manufacturing in the U.S. most definitely decreases the chances of extended disruptions to supply chains. Although they might be a bit more expensive, obtaining raw materials is easier as well. 

Offshoring is additionally dangerous to intellectual property. When product designs are sent overseas, there’s no guarantee that they’ll stay secret, and you run the risk of knock-off products becoming legitimate competition. When the manufacturing is done on U.S. soil, it’s also easier to ensure a high-quality finished product.

Partnering with a company that has a global supply chain, including U.S. management and manufacturing options, like Sanbor Medical, minimizes risk and opens up more options to keep your production up and running.


The COVID-19 pandemic brought supply chain management to the forefront. It created shortages across the economy, whether for consumer goods or critical components for manufacturing. The need for dedicated supply chain management became very clear for everyone involved. As we saw with COVID-19, companies that planned ahead and had supply chain options could get what they needed faster, whereas companies with longer supply chains struggled to stay afloat. 

Moving forward, companies should pay even closer attention to their supply chains. If your organization is preparing to outsource a new electronics project, you and fellow stakeholders may still be on the fence about whether to work with an onshore or offshore manufacturer. There are distinct pros and cons of each. Only your organization can decide what is best for your operations and there isn’t a right or wrong answer.

Ultimately deciding to partner with a reliable electronic and electromechanical contract manufacturer that has a global footprint, and a U.S.-based management team could be the best option. You get the best of both worlds and the versatility to shift gears as unforeseen issues arise.

Sanbor Medical has the technical experience, global supply chain, and versatility you’re looking for. Contact us and one of our industry experts will work with you to bring your product to market quickly, efficiently, and affordably. 



Subscribe to email updates

Smarter Manufacturing Starts Here.

Connect with our team to learn how a Sanbor partnership is the future of medical device contract manufacturing.

Connect With Us