8 Benefits of Offshoring that go Beyond Cost Savings

June 1, 2022

Offshoring has been a growing part of the global manufacturing landscape for years, but for many organizations, it hasn’t made sense to offshore — until now.

We are seeing a growing demand for offshoring due to factors such as supply chain issues and labour shortages locally, amongst other factors.

If you thought that offshoring’s only benefit was cost savings, here are eight benefits you may not have considered.

1. Easier access to specialized suppliers

Offshore countries that have a large focus on manufacturing often have specialized suppliers that can provide you with niche or unique products and use equipment that isn’t always available domestically. As well, the talent or labour pool offshore may have skills that aren’t prevalent here. Rather than buy the equipment or train new workers, offshoring allows you to get these specialized supplies without the extra start-up costs.

2. Allows you to have limited production items

If you are interested in manufacturing products that will have a limited production, offshoring these needs makes the most sense. Rather than purchasing the equipment and materials and hiring the labour needed to make your limited-production items, offshoring allows you to source these while you need them without having to worry about what to do with everything once production is complete.

3. Reduce operational concerns

By moving your manufacturing offshore, you can reduce or eliminate some of the headaches of controlling your operations. This can include staffing and labour, equipment purchase and maintenance and other requirements of running a business. Your offshore partner can manage these tasks while you reap the benefits of the finished product.

At Kingstec, we have the KTI advantage, where you as the customer can leverage our large group of experienced manufacturing partners. We speak the languages of our customers and our partners and have 24/7 access, regardless of time zone difference. We can assist with sourcing hard-to-find components in North America, Europe as well as overseas and get them to the manufacturing line on time to ensure your project stays on track.

4. Scale up or down as needed

Every business has a busy season. Why let machines sit idle during down times or have to rehire staff during busy times? With offshoring, you can produce what you need to produce, when you need to. If your production needs increase or decrease unexpectedly, you don’t have to make quick decisions. You can simply inform your offshore supplier of what you need.

Even if you aren’t currently offshoring, if your production needs have increased to a level your current manufacturing setup can’t keep up with, temporarily offshoring might be the answer.

5. Increased production efficiency

Many offshore manufacturers have quicker turnarounds than if you source locally. This is especially true for complex projects that need specialized equipment or resources. Even with transit times factored in, setting up an offshore product helps you be more efficient in your production.

6. 24/7 availability

Many offshore companies operate around the clock. This means that even with the time difference, you will be able to get status updates and make changes day or night. Some factories can work 2-3 shifts, to meet your deadlines. If you have a rush task, your employees can go home to sleep while your offshore contacts complete the task for your approval in the morning.

7. Ability to focus on what you do best

When you offshore your manufacturing, you can spend more time focusing on what you do best, whether that is design or engineering, product development or something else. By taking the manufacturing aspect of your product out of the equation, you free up your time to be creative and develop new ideas.

8. Cost savings

Of course, the obvious benefit to offshoring is cost savings. With offshoring, you’ll save on your budget on:
- Labour and training costs
- Raw materials - manufacturing closer to the source
- Specialized equipment
- Management and logistics costs
Offshore companies are exponentially less expensive than manufacturing companies in North America and Europe.

For more information on how to partner with offshore companies, speak to one of the experts at Kingstec. We can point you in the right direction and get your manufacturing ready to offshore.

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