The Implications of Outsourcing a Product Development to China - Jinz Haiggh Blog

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The Implications of Outsourcing a Product Development to China

Outsourcing the manufacturing cycles of a product to China is common practice by many companies around the world. Even with the current trade war initiated with the USA, the costs of having any product developed in the mainland are still some of the lowest fared in the world. On top of that, you have the Chinese suddenly becoming very efficient and focused on delivering quality products, and you no longer have to worry about the quality issues of the past. Rapid prototyping China is no longer a booming business, it’s raged competitive marketplace where everyone is doing their best to deliver shipments promptly and get more clients by expanding their offerings.

How Business Habits can Change in a Moment

Outsourcing the creation of prototypes to China was not something any entrepreneur was fond of, for many years the procedure of creating the prototype of any products where handled exclusively at the hands of the owners of the idea. It was a painful process that took too much time and money. These days thing is very different, from the use of 3D design and 3d printing technology.

The tooling done by these machines it’s so precise that it has made the manual crafting an outdated method of prototyping. Hard numbers back up these facts: China currently holds the record for most CNC machines bought up until 2017 with almost 283,000 pieces of hardware sold to various companies on the mainland.

The Benefits of a Solid industry

As expected this has turned out to be a good move for the overall economy of the country with China still being the top choice for manufacturing to many people across the world and with an increasing GDP that grows between 8 and 10% each year since the technology was first introduced in the country in the year 2000.

It’s not that difficult to see how the country has achieved a manufacturing industry currently valued at $1.2 billion with many entrepreneurs and their own countrymen willing to enter a market that leaves many dividends even to small-scale operators.

The numbers for the future still look good with a planned increase on revenue measured at 7% for 2018. Those are the wonders of the free market in action!

The Face of Competitors

The current trade war initiated by President Donald Trump could change the general outlook of this favorable scenario for China, but the effects will not be seen immediately. While it’s true that many products in America are manufactured and imported from China, it’s difficult for other Asian nations to take over their close competitor.

Rapid prototyping china is a huge market that has built a reputation for efficiency that cannot be easily matched. Even if the trade war affected the income of the Chinese due to increasing taxes and tariffs, the products they sell would still be a lot cheaper than anything crafted by an American outlet. Is the Chinese hegemony about to end? Not for the time being.

The economic measures taken by America are a way to correct unbalanced scales that need to happen from time to time to keep everyone on business.

Guess all we can do is sit tight and see how everything goes while we keep selling our products.
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