Finding a Product Manufacturer: Domestic vs. Overseas Manufacturers

One of the first considerations you’ll have to make while developing your product is whether to make it locally or elsewhere.

The term “manufacturing abroad” usually refers to countries like China. This is due to the fact that manufacturing expenses are very low for various products. However, low-cost manufacturing is not limited to Asia. Latin America, Eastern Europe, and Africa are all good places for savvy entrepreneurs to look for economical overseas manufacturers.

Your production location options may also be influenced by the type of product you’re producing. Depending on the raw materials available, knowledge, and other factors, certain items may be easier and less expensive to make in certain countries.

However, there are other considerations when selecting whether to manufacture domestically or overseas. Both possible manufacturers’ options offer advantages and disadvantages:

Manufacturing from Overseas

Advantages:
-Low production costs
-There are several manufacturers to choose from.

Disadvantages:
-Products may be of inferior quality and more difficult to verify ahead of time.
-Communication is hampered by language, time zone, and cultural limitations.
-Visiting a manufacturing facility is difficult and expensive.
-It’s possible that shipping will be more expensive and take longer.
-In terms of money and intellectual property, there is less security and legal redress.
-Import and customs laws can be complicated.
-Labor, ethical, and environmental norms are all being lowered.
-Overall, there is less oversight.

Manufacturing Locally

Advantages:
-Manufacturing of higher grade
-It’s a lot easier to converse now.
-More regular on-site visits are possible.
-It is simple to verify manufacturers.
-Shipping is less expensive and faster.
-Labor, ethical, and environmental standards have all improved.
-Payments and intellectual property are now more secure.
-Locally produced goods have a stronger marketing appeal

Disadvantages:
-Limited product possibilities (some products aren’t manufactured at all in Pakistan)
-Fewer manufacturers to pick from