Creating products requires different processes. Two main points of consideration include what type of production is necessary to achieve the desired results.

In manufacturing, two different ends of the spectrum are custom manufacturing and mass production. While custom parts may run into the hundreds and thousands, mass production quantities are usually much higher.

Let’s look a little closer at exactly what these processes entail.

Mass Production

When thousands or even millions of identical parts are needed, companies turn to mass production to meet their needs.

These manufacturers use a production line to create tons of identical parts on automated machines that run 24/7 with very little human interaction. Many overseas manufacturing plants operate this way. Automation is the primary means to produce parts.

Pros of Mass Production

Mass production is more cost efficient for companies producing large quantities of metal and plastic parts. Because machines do most of the work, labor costs are relatively low. Identical parts are easier to come by because everything is programmed and research-driven.

If maintaining an inventory of spare parts is important, mass production can easily provide more than necessary.

Cons of Mass Production

Human interaction on the production line is limited. If quality is an issue, there is less oversight to catch issues that appear during the process. Minimum run quantities tend to be extremely high, so waste is another issue. If a part needs design changes, it is more costly to pull something out of production to work out issues.

Custom Manufacturing

Creating a small number of parts, or an untested part that may require design changes are both situations that work well for custom manufacturing. Because of the amount of human involvement over the course of production, quality is easier to monitor and stopping production is not as much of an issue.

Pros of Custom Manufacturing

Custom manufacturing has lower minimum quantities, if any at all. Though lower volumes will be more expensive, these parts are easier to make changes to during production.

Quality inspections are more frequent, and many times involve more than just observing the appearance for flaws. Adjustments can be made to account for quality problems that didn’t appear until production began without as much difficulty as mass production.

Cons of Custom Manufacturing

Because of the higher degree of human interaction with custom manufactured parts, the downside is a part that costs more to produce.

Less automation also means more chances for errors, but even small runs usually involve CNC machines that are programmed to create identical parts, so this isn’t a huge issue.

Conclusion

While mass production has some advantages, unless you’re producing parts by the millions there really isn’t much of a reason to go that route.

Custom manufacturing provides a durable part, with the option to make changes as necessary. This eliminates waste and allows you to create only as many parts are needed for a short period of time.

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In the early 1970’s GE CEO Jack Welch started moving some operations to overseas factories with lower costs of production. Offshoring continued for decades (and still does), but really began to pick up speed in the 2000s as the internet removed technological barriers and made it easier to deal with foreign operations.

Today, however, a new trend is emerging. As regulations change and labor costs start to increase, many companies are starting to see the advantage in using US manufacturers to complete work formerly done in countries like China.

The following describes five reasons to invest in US manufacturing.

Reason #1: Ease of Communication

Though technology allows you to quickly send an email to check status on your work, getting in touch with overseas workers may not be as easy as you think.

First, there is a significant time difference. When you’re at work wondering what the status of your project is, your point of contact is probably sleeping. Sending an email or calling isn’t likely to get you an immediate response.

Language barriers can sometimes be difficult to navigate as well.

Reason #2: Less Paperwork

Overseas shipping requires lots of complicated paperwork. The documents required depend on the destination country, which in most cases would be the US.

Bills of lading, detailed packing receipts, bureaucratic customs paperwork and special labels are just a few of the headaches you have to prepare yourself for when dealing with international suppliers.

Reason #3: Simpler Logistics

Depending on your purchase, many US-produced goods can easily be sent via a number of methods. Wait times are shorter, and if anything happens, problems are usually resolved much faster. Your overseas shipment could be stuck on a dock in customs for months before it ever makes its way to you.

Reason #4: Advertising Advantages

According to Consumer Reports, 80% of customers prefer to buy good produced domestically. Many will even pay more for them. This allows you to recoup costs by charging a higher price for goods with the Made in the USA label or stamp.

Reason #5: Comparable Costs

Though overseas labor costs are low compared to the United States, they are rising. While they are nowhere near US levels, these rising labor costs combined with increased transportation costs make offshoring less profitable than in the past.