Posted on 1st February 2018 in the categories: Sub-Contract Manufacturing

Made in China: The Myth VS Reality | Goudsmit UK

Manufacturing in China

China manufacturing 

With a history of product recalls, less than optimal working conditions, and harmful environmental impacts, China’s overall reputation in the eyes of global consumers has been less than stellar. However, with the growing comprehensive and high standards of China manufacturing, finding the best materials and manufacturing facilities proves simple.

In recent years, China has emerged as one of the top manufacturing destinations for many brands. From leading electronic manufacturers to high end clothing companies, China attracts key players from all over the world. This, with a combination of factors has made China the most popular destination for manufacturing.

The myth of China manufacturing

Whenever many see the ‘made in China’ label, they immediately think of cheap, poorly made, plastic products. Despite being considered the world’s manufacturing capital and the biggest manufacturers having been highly profitable due to Chinese outsourcing. The China tag is unfortunately, still associated with poor quality. However, a quick analysis of the facts easily shows that this is nothing further from the truth.

The reality of China manufacturing

Anyone who has picked up an IPad will know the ‘made in China’ tag is purely nothing but a negative stereotype. The choice of China for the factory location has much to do with a deep labour pool and proximity to suppliers. China too offers a higher production rate, getting you your products quicker. In fact, China has the greatest ability to manufacture high quality products, making it the number one destination for manufacturing.

Why manufacture in China? 

Here’s a few other reasons why China remains a favourable place for manufacturing:

  1. Large and inexpensive labour pool – One of China’s main attractions for manufacturers is the availability of low cost labour, depending on labour intensity of production.
  2. Skilled workforce – The communication, teamwork and self-motivation skills of China’s workforce leads the way for continued success.
  3. Low costs – In most cases, China’s access to affordable raw materials helps bring down manufacturing costs considerably. However, rising costs in recent years means Chinese manufacturers do not rely on price alone, but productivity, product development and technological advancements.
  4. Access to the latest technology – Having realised the potential for their market in the era of globalisation, China has spent the last few years heavily investing in the research and development of their technology. Helping them gain an edge over other emerging countries.
  5. Infrastructure and efficiency – For decades, China has been a global hub for manufacturing excellence with the ability to create the infrastructure and systems required to support and adapt to manufacturing needs. From material sourcing to shipping logistics, everything functions like a well-oiled machine, creating an incomparable efficiency.
  6. Quality – Contrary to popular belief, Chinese manufacturers are focusing more on producing great products, developing world-renowned brands and using sophisticated technology.
  7. Rare earth materials – China holds a commanding monopoly over world rare earth elements supplies, controlling about 95% of mined production and refining. Additionally, China is the only country that has the manufacturing facilities with the necessary expertise to refine these rare minerals.

Potential Problems

It is important to remember that dealing directly with China with no previous experience will prove difficult, with problems such as:

  1. Language Issues – Most Chinese are not proficient in English; thus, your business operations could be delayed if neither speaks a common language. This could lead to some serious issues for your business.
  2. Copyright Issues – When you have your manufacturing base in China, you must be very careful regarding copyrights, trademark and plagiarism. Law is very different in Asia, and careful consideration of this is vital.

Therefore, that’s why we at Goudsmit UK take care of everything. We’ve had years of expertise dealing with high skilled and experienced co-workers in our our joint-venture factory in China. Therefore, putting us in the prime position to take care of everything both efficiently and effectively, saving you the trouble.

Goudsmit UK

Goudsmit UK place a huge emphasis on providing high quality products. Our team of experts can offer design support and simulation techniques before manufacturing your custom components in our joint-venture manufacturing facility in China. Goudsmit UK carry out the manufacture, magnetisation, coating, and inspection of your products to ISO 9001, IATF 16949 and AS 9120B quality standards, meaning you receive better quality parts time and again.

Quality Standards

So, what does this mean?

For now, China remains ‘the factory of the world’. China’s rise to manufacturing superiority in recent years has been remarkable. However, rising costs, more sophisticated consumers, and fundamental macroeconomic realities mean that yesterday’s approaches to manufacturing are losing their relevance. For Chinese manufacturers, it not simply about low costs anymore, the requirements now are to boost productivity, continue to create high quality products, refine product-development approaches, and tame supply-chain complexity. In doing this China will continue to create a competitive edge and remain the favourable place for manufacturing among many.

Goudsmit UK

At Goudsmit UK we sub-contract manufacture a vast variety of products to suit your requirements. Contact us today for more information at info@goudsmit.co.uk. Or if you’d like to speak to a member of our team call us on +44 (0) 2890 271 001.

FFor more information download our products and services brochure here.

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