HOW CAN U.S. MANUFACTURING COMPETE WITH CHINA?
The Short Answer: Automation
SMI was recently asked to quote on a project that was currently being done by a Chinese manufacturer. SMI has always been able to compete with China on projects that have very little labor involved, but this project was different. This project not only needed to be molded, but needed a simple decoration on each part (a hot-stamp decoration). This project was very high volume so not only was a hand run hot-stamp machine labor intensive, it was also impractical.
With an automated hot-stamp machine not only was SMI able to compete with the
Chinese manufacturer, but was able to beat their price. The icing on the cake was that
SMI was less expensive even before overseas shipping charges.
But what about quality?
SMI’s parts not only cost less than their Chinese counterparts, but outperformed them in durability, number rejected parts, and dimensional consistency.
U.S. manufacturing can compete with overseas manufacturing, especially when you factor in shipping charges. Even with seemingly complex parts, automation can step- in and make not only less expensive parts, but higher quality ones as well.