TRICOR Systems contracted  Lohbauer Electric to remove the inefficient 400 watt MH fixtures and replace them with 6 lamp florescent fixtures. In addition to the energy efficient lighting, occupancy sensors were strategically placed in areas where lighting was not needed on a daily basis or in areas that were only occasionally  used by employees.

All of the old inefficient lighting fixtures that were removed were recycled by Lohbauer Electric in a responsible manner.

But in many cases while moving production and manufacturing overseas may seem like the best way to save money, it can come with some unexpected costs. Startup costs alone can run in the 10′s of thousands of dollars. In an article recently posted by the Los Angles Times titled Sending manufacturing overseas is not the easy road, Michael Hiltzik describes how moving a manufacturing project overseas isn’t always as easy or cheap as some make it seem. Lack of support on technical issues and timeliness of sending parts overseas are just a few of the pitfalls and challenges that manufacturing overseas presents (Hiltzik, 2012).

Below I’ve outlines some things that many organizations should consider before moving production overseas.

1. Regulation – Electronic Contract Manufactures in the US are better regulated than those in most foreign countries. Companies that are ISO certified offer their customers a regulated quality system that is continually audited and improved upon. The FDA also regulates and frequently audits manufactures of medical devices to better protect US consumers.

“FDA-regulated products account for about 10% of all imports into the U.S., arriving from more than 300,000 facilities in 150 different countries.” (“Pathway to Global Product Safety and Quality” n.d.). These numbers continue to grow at a very rapid pace, placing a burden on the FDA’s already strained resources. You can view FDA import alerts on the their website.

2. Keeping Jobs here in America – In President Obama’s most recent State of the Union Address he stated:

“Tonight, I want to speak about how we move forward and lay out a blueprint for an economy that’s built to last, an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values. This blueprint begins with American manufacturing.”

This is great news for manufacturers in the US. New tax breaks and incentives for organizations can help quickly spur growth and create new jobs. A focus on manufacturing in America is something that we haven’t heard from a President in years. Let’s just keep our fingers crossed that there are actions behind these words.

3. Flexibility - Manufacturing in the US will give you more flexibility over production scheduling, sourcing parts and implementing changes to products or processes. Whether it’s short run or full scale manufacturing, changes are likely to be implemented along the way. Controlling and handling these changes requires a flexible manufacturer with the ability to respond quickly.

4. Security - You can be confident that your products documentation, software and manufacturing processes are secure with a U.S. manufacturer. Confidentiality agreements are put into place to protect the details of your product. Those confidentiality agreements are honored and respected.

Piracy is a huge problem in some foreign countries. Lack of regulation, respect of property and greed contribute to be a problem that many US companies that manufacture their products overseas have to deal with, accept or spend time and money fighting.

5. Communication - Language barriers, time zones, and cultural differences can often make communicating difficult, especially in situations where timing is critical. Even communicating small changes can become a source of frustration to U.S. companies that have outsourced too foreign manufacturers.

While manufacturing your device overseas may seem tempting at first, there are many things to consider. Is your organization prepared to deal with these challenges? Have you considered all of the potential problems manufacturing overseas presents?

References 

Hiltzik, M. (February 7, 2012) Sending manufacturing overseas is not the easy road. Los Angeles Times. Retrieved: February 9th, 2012, from http://goo.gl/t9Mmj

Pathway to Global Product Safety and Quality. (n.d.). Retrieved: March 1, 2012, from http://www.fda.gov/downloads/AboutFDA/CentersOffices/OC/GlobalProductPathway/UCM259845.pdf