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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.
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.