Overseas manufacturing saves 30%…doesn’t it?!?!
Yes, it can…but not always.
Before you automatically assume that you’re going to get significant cost reduction by using overseas production, ask yourself a few important questions.
1. Are the materials subject to tariffs?
TARIFFS
Steel and electronics are the materials most commonly used in point of purchase displays that could be subject to tariffs, but with the changes that are happening you need to be certain what materials your display includes that could be affected by these costs. Also, you need to be aware of when new tariffs might come into effect and determine when you production will be completed and shipped before or after they take effect.
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2. Do you really have time to produce overseas?
TIME
While four weeks transit time is normal, this time can increase dramatically when ports are jammed. This happens with the congestion of many shipments attempting to deliver before tariffs take effect or the mass influx before the Chinese New Year shutdown.
Is missing a key product launch date with a display worth the savings?
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3. Is the display too large or heavy to ship efficiently?
SHIPPING
If a display cannot knock down into components with limited ‘dead air’ space around them, the savings from overseas manufacturing could be reduced significantly by the cost of shipping.
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Still, every case is different
We’d be happy to let you know whether domestic manufacturing, overseas production, or a combination of both makes the most sense for your project.
Do you have questions about manufacturing overseas?
We’re here to help.
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