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Where to produce your products outside of China?


Companies are still looking for ways to expand their production and China as been the right place for several decade as the world factory. Sourcing in China is relatively easy, as they is services such as Alibaba and Global sources and made in China .




7. Mexico

Mexico specializes in automotive products, industrial machinery, and electronics. Mexico is a viable alternative to China to manufacture your product.

Mexico manufacturing offers your company an assortment of benefits. The location is ideal for logistics, turnaround times, and shipment costs.

Manufacturing in Mexico has a few similarities to US manufacturing . The time zones are the same as the US. This promotes easier communication. The nation also has similar intellectual property laws to the US.

A major downside to manufacturing in Mexico is the high levels of crime and corruption. The nation’s regulations are not nearly as good as the US regulations either. Tax rates and regulations do not work to your advantage and the labor laws are much worse than a few of the other alternatives.

6. United States

The US’s manufacturing is focused on machinery and equipment, industrial supplies, consumer goods, and pharmaceuticals.

Manufacturing in the US comes with many other benefits as well. The labor force is highly skilled and educated.

The US offers intellectual property protection through an assortment of intellectual property laws. There are many government policies that favor manufacturing , the regulations and oversight ensure a great manufacturing environment.

The United States also offers an advanced infrastructure that is organized and developed.

Of course, the disadvantages to manufacturing in the United States is the high labor costs. Thus, the United States is not a viable candidate for manufacturing if you want to stay competitive with companies that manufacture overseas. With that said, there is a big movement in the United States to buy American-made products. Of course buying American-made products comes at a huge price premium. It will remain to be seen whether consumers are willing to pay for the big price premium in the long run.

5. India

India specializes in many sought after products. These products include pharmaceuticals, computers, machinery, textiles and garments, and mineral and chemical products.

India features a huge workforce with low labor costs. Its location is near China and other trade partners. This is convenient in order to obtain the raw materials necessary for the products. India is unique in that there are both high skill and low skill labor forces.

With its list of pros, India hosts many cons, The first of which is that India has a low level of productivity. The nation also falls behind China in infrastructure and timeliness rankings. The nation’s firm registration is also twice as long as China’s.

The cost upfront is more expensive due to fees and dependant on the professional services required. Plus it would take longer to get the product’s shipped due to India’s low road capacity.

4. Indonesia

Indonesia is the fourth alternative to China to manufacture your product. The nation has the fourth largest workforce in Asia and the cost of labor is low.

Another benefit Indonesia offers your business is its exchange rate. This nation’s government is focused on upgrading its infrastructure. These upgrades would seem perfect for a company searching for a long term manufacturing partner.

The problem is that Indonesia has an unstable government and an inefficient government bureaucracy. The nation’s location could make coordination very difficult.

3. Malaysia

Malaysia manufactures auto parts, electrical components, and consumer electronic sectors.

Malaysia offers the benefit of convenience.

The nation’s ease of doing business score is very high. It is second only to the United States The nation also owns the second and third busiest ports in Southeast Asia.

The workforce in Malaysia is very small and the average minimum wage is one of the highest in Asia.

2. Thailand

Thailand’s manufacturing works in the following sectors, computer components, automobile components, and machinery equipment.

The workforce in Thailand is able to take on high and medium skill level tech manufacturing. Thailand offers an abundance of natural resources but is pretty far from China for trade purposes.

The government is investing a lot in the nation’s infrastructure. The nation is improving its ports and railways, as well as creating new railways and conducting airway projects.

Thailand’s average minimum wage is slightly higher than the majority of other Asian countries, including Vietnam.

1 Vietnam

Vietnam specializes in electronics, garments, furniture, and footwear. The nation has experience dealing with large brands. Nike, Samsung, Microsoft, and Intel are just four of the well-known brands that have manufactured in Vietnam.

Vietnam also has close proximity to China. This proximity is beneficial in gaining materials.

This nation is a great option for those searching for a long-term manufacturing relationship. The nation has a stable government and offers intellectual property protection.

The workforce is not necessarily big. It is comparable to most other countries. The nation is also dependent on the trade laws of other nations, especially China. Productivity can be low at times due to strikes that cause factory shutdowns.

Conclusion

Vietnam is the number one ranked country. This means that it is the best possible alternative for China to manufacture your product. Apple has stated that they are moving some of their manufacturing to Vietnam.

Vietnam earns the top spot for a few reasons. First, it can work closely with China to obtain the materials it needs. The nation permits long-term work because the government is stable and works hard to protect your product.

Another winning feature Vietnam holds is experience. The country’s top manufacturers have professional experience working with large brands.

Regardless of the manufacturing nation, you select, it is vital to have an inspection, or audit, completed before doing any paperwork. Setting up a regular inspection cycle can assist in setting your product’s standards and avoiding defective products.

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