Interesting Facts About Manufacturing Companies in China

China has always been the destination for mass manufacturing and product development. With most of the world relying on China manufacturers for their production requirements, companies face great competition as they try to enter the market. with the expanding infrastructure for manufacturing and production all across the land, along with its outstandingly low labor rates, it is not surprising why many companies see China as a manufacturing haven and the place to go for all their production requirements. Below are some interesting facts about manufacturing companies and the manufacturing industry in China you should know about:

• China manufacturing is more complex and high-tech than ever. It is experiencing a huge paradigm shift from its traditional assembly base to becoming a full-scale manufacturing machine/center for multinational companies.

• Manufactured goods have already surpassed raw materials as being China’s top export item. In fact, the account for an excess of 80 percent of China’s total exports.

• Chinese companies are major global competitors in the areas of PCBs, component design and manufacturing, Network Hardware, surface mount technology, TVs, PCs, auto parts, refrigerators, and many others.

• One of the largest producers of manufactured goods in the world, Chinese manufacturing grows at least 12% on a yearly basis.

• Chinese exports from outsourcing can only be expected to grow by 45% over the next half decade.

• China manufacturing stands out from the rest of the world not only because of its dirt-cheap labor rates, but more importantly because of its large supply of highly skilled and extremely disciplined work force.

• Leading Chinese manufacturers invest in in quality assurance and special training for their personnel in order to ensure compliance with the latest standards.

• The Chinese government offers continued incentives to companies, both foreign and domestic as they work with local manufacturers.

• 400 out of 500 leading companies in the world invest in Chinese manufacturing.

Boost Your Manufacturing Company in China with These Tips

Dubbed the manufacturing capital of the world, China can produce virtually any product you can think about, and do so more cheaply than any other country. Whether sourcing and importing goods from the country, selling private label products through any retail capacity, or exploring different sides of the Chinese manufacturing business, here are some tips to help you get the most out of the Chinese manufacturing scene:

• Relationships carry great weight. The Chinese culture puts heavy weight on established relationships. If you want a successful experience with a Chinese manufacturer, make sure to lay down a strong foundation for your relationship by visiting their factory and establishing a close personal relationship with them. This will not only strengthen your partnership, but will also help you get in on the nitty gritty of the manufacturing process. Having a close partnership with your Chinese manufacturer also puts you in a great position to negotiate costs, as well as to protect the general welfare of your business as well as your intellectual property.

• Language can be a real barrier. For a successful partnership with the right China manufacturer, you may want to invest time learning not only the Chinese language, but the business jargon or at least hire someone who can effectively communicate your cause to your prospect partners. Trading companies make a great solution when it comes to sourcing manufacturing partners and arbitrating for companies who want to manufacture in China.

• Quality assurance should go beyond a typical visual inspection of your manufactured product. You want to get a deeper look into prototypes and finished products so as to guarantee the overall quality of the products you invested in. This will help you discover faults in the design early on, possibly mitigating larger problems down the line.

• Shipping can be an expensive endeavor because of all the added cost that could pile up beyond your typical shipping price.

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Know About Quality Control and Inspection Services in China

Importers who buy products in China have three choices of QC and inspection agencies to help ensure the quality and compliance of the products they are sourcing from their chosen manufacturer. These are commissioned agencies, trading companies, and third-party service providers. Selecting between these agencies is a matter of knowing their product specialization and their scope of service. Below are some important things you should know about quality control and inspection service providers you will need to work with when sourcing products from China:

• Commissioned agencies – Commissioned agencies usually have strong ties with factories and manufacturing facilities. They typically charge somewhere between 5 and 10 percent of the FOB rate from buyers for each order followed. Because of their close relations with factories (that give them more money than they usually get from importers and buyers), they have the reputation of favoring manufacturers and defending suppliers over importers during disputes.

• Trading companies – When not doing product inspections themselves, traders would pay third party quality control firms to conduct production checks and factory inspections. The advantage of using a trading company over other service providers is that they allow the handling of smaller orders and provide comprehensive services that deal in production and sourcing for importers and buyers.

• Third party service providers – Third party service providers or sourcing consultants offer a range of services to importers, allowing for a more cost-effective production, project management, procurement, and overall manufacturing. These companies even conduct quality control and inspection services to closely monitor all stages of the production and procurement process.

Quality inspection agencies also differ in terms of their flexibility, reliability, and focus. This is why it is important to know which type of agent is most suitable for the type of product and size of order you are following. High flexibility and low touch agencies, for instance, are best for buyers looking for quick and fairly reliable inspections, especially when dealing with larger order quantities. High reliability and high touch agencies on the other hand, are more ideal for those who value quality and thoroughness of inspection over speed.

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A Few Things One Should Know About China Wholesale Suppliers

Entrepreneurs with great ideas for a product are often stopped in their tracks by sheer cost of local production. If a limited budget is keeping you from turning your new product idea into reality, considering overseas option might just get you the services you need at the prices you can afford. China manufacturing facilities are well-known in the world for their low-cost production, but with the myriad of factories offering the services you need, it can be difficult to find the right company to trust with your production. Here are some important things you should know about dealing with China wholesale suppliers:

• If you can’t afford international tradeshows to meet actual manufacturers or when overseas manufacturer directories and industry trade association confuse more than help your search, turning to specialist companies that offer complete manufacturing solutions will cut your search time significantly and lead you to the right suppliers that can meet your needs. These companies will help you navigate the complex world of wholesale suppliers and manufacturers and provide assistance in other critical areas of production from sourcing raw materials and services from local China vendors to other market dealings until your product reaches your doorsteps.

• Wholesale suppliers who have been exporting to Western countries for long period of time typically have higher standards of quality. Their experience with other Western businesses give them the advantage of knowing the expectations and requirements of Western importers in terms of product safety, and compliance with packaging and labeling regulations. They also have the advantage of experience in dealing with shipping logistics and getting through product red tape.

• It is important that you are knowledgeable about basic wholesale principles like minimum order quantities, sample and production prices, manufacturing period, and typical payment terms. The wholesale market is a smooth-working machine with its unique complexities and familiarity with its particulars will help you go a long way in the business.