Three Benefits Of Outsourcing Manufacturing To China

Over the past several decades, consumers in both Canada and the United States have benefited from the low-cost outsourcing of Chinese manufacturing.
Some American companies choose to have their goods completely assembled and built overseas, while others only choose to have their items partially constructed there. Although many have been quick to point out that there are negative aspects to outsourcing our manufacturing needs to Chinese industries, there have also been several benefits that Americans fail to recognize. Whether they realize it or not, Americans benefit, as does the North American economy, from the outsourcing of manufacturing to China. These benefits include:

Keeping Our Consumer Costs Low

Outsourcing manufactured goods to China still continues to be a popular choice among many American companies. The savings that the manufacturers receive is then passed on to the consumer by keeping their point of sale costs low, and keeping more of their hard-earned money in their pockets. In fact, even though Chinese laborer wages are on the rise, as well as other related outsourcing costs like shipping, manufacturing costs are about 30 percent lower when items are manufactured in China.

A Healthy North American Economy

When American products, such as toys, Christmas lights, and clothing, are manufactured overseas in China, the American economy benefits. This may not make sense at first glance; however, when Americans can stretch their dollars, they can buy more for less. This, in turn, leads to more Americans spending more money and putting it back into the economy.

Skill and Reliability of Chinese Workers

China is responsible for one-fifth of global manufacturing, and with good reason. Chinese laborers are highly skilled and reliable. The Chinese manufacturing supply chain puts those of other countries to shame and is second to none. This is primarily the reason why other countries are unable to compete with the Chinese manufacturing industry.