A few months ago, my mom told me a story about her friend who ordered a plush new armchair from overseas, and then received alarming news when the boat sank. While this was (hopefully) a singular accident, it did bring my attention to the unpredictability of ordering out-of-country.
Having built custom parts for over thirty years, Strouse has sold products to hundreds of domestic (in our case, American) and international companies. This experience has given us plenty of insight into the most common benefits and drawbacks of choosing domestic manufacturers.
With luck, you won’t have to worry about boating accidents, but there are plenty of other factors that might impact your decision to order close to home. By the end of this article, you should have a better idea of whether domestic manufacturers are right for you.
What is a Domestic Manufacturer?
Domestic manufacturers conduct their business and build their products in their “home location”—for some people, this might be the same country, region, or even territory where said products are primarily processed and sold. Strouse is a converter based in Maryland, and when we refer to domestic manufacturing, we’re typically referring to North America.
The Benefits of Choosing Domestic Manufacturers
There are many reasons for a business to consider domestic manufacturing.
BENEFIT 1: AVOIDING POTENTIAL RISK
Choosing a domestic manufacturer can help reduce the degree to which your company is impacted by new policies, such as tariffs (foreign goods taxation) or international trading laws.
That being said, a new domestic manufacturing partner may still purchase material from the same sources as your previous partner, which could develop into higher costs as the material is taxed upon entering the country.
Essentially, while certain policies might cause the price to increase regardless, you might be able to reduce the effect on your business by seeking out a domestic manufacturer.
BENEFIT 2: POTENTIALLY BETTER SHIPPING & TURNAROUND TIMES
Two well-known benefits of sourcing domestically are as follows:
- You’ll likely pay far less for shipping
- You can get things faster
Many domestic manufacturers have existing relationships with shipping companies and carriers, but international shipping is often more expensive and requires more work to arrange.
While domestic manufacturers' turnaround time may still be limited due to purchasing international materials, the finished parts will generally ship quicker and at a better price.
BENEFIT 3: MEETING LEGAL REQUIREMENTS
Have you ever noticed the difference in color between food in the U.S. and the U.K.? Many products, including sugary breakfast cereals, are modified to meet quality standards in other countries. Manufacturers must meet the material quality and safety requirements of international clients.
Choosing a domestic manufacturer guarantees a partner that is already accustomed to meeting your country’s legal requirements, which reduces the risk of legal errors.
In addition, certain countries have more stringent laws regarding ethical sourcing and wages, so domestic manufacturing could be one way to help guarantee that you’re sourcing goods responsibly.
BENEFIT 4: VISITING THEIR FACILITY
As we all know, the internet isn’t always the most… accurate source of information (I know—I’m being a hypocrite here). In an age of overflowing false images and paid address lending, visiting a domestic manufacturer’s facility will allow you to establish trust without the cost of international airfare.
Manufacturing facility tours are an excellent way to meet with your contacts and evaluate their machinery and operations. You can observe the condition of their factory, perform tests on-site, and continue strengthening ties with a potential partner.
BENEFIT 5: CONTACTING CUSTOMER SERVICE
Working with a domestic manufacturer can be easier logistically and in terms of communication. Your time zones are more closely aligned, so there’s a greater chance your manufacturer will be alert and operational in an emergency. Plus, you won’t need to rely on translators or translation technology.
Drawbacks of Domestic Manufacturing
Switching to manufacturing domestically can be challenging, and it might not always be the right choice. Some of the downsides are as follows:
- You’re limited by choice and availability
- Your final cost might be higher
- Still reliant on the price and lead time of international materials
International manufacturing offers endless options in terms of quality, suppliers, and more, while domestic manufacturing limits the number of companies you have to choose from.
Building parts domestically may increase your final cost due to the minimum wages of laborers, which vary by country. Depending on where you are located domestically, international prices might be significantly less. Some companies begin through international sourcing before switching to domestic production once they have earned enough profit. Typically, companies in this situation sacrifice initial part quality in order to get a lower price per part upfront.
Regardless of which type of manufacturing you choose, you’ll need to consider and plan for the cost and lead times of international materials.
Choosing Your Manufacturing Company
Ultimately, whether you choose a domestic or international manufacturer will depend on your specific needs based on the level of risk involved, price, and availability of qualified or specialized manufacturing in your country.
While there are benefits to choosing a company in your country, our team will deliver a high level of precision regardless of where your company is based.
If you’re interested in finding an American manufacturing company with ample project development experience, consider using Strouse as your converter.
As a converting company, Strouse’s capabilities involve transforming rolls of flexible materials into custom-cut, laminated, or slit goods. We optimize and build your complex designs to tight tolerance and high-quality standards.
Reach out for a product sample to see how we can optimize your design and plan a production process. And lastly, if you are in the United States (especially near Maryland), consider visiting us to see these capabilities for yourself.
