Importing vs. Domestic Production
May 15, 2011 Leave a Comment
Usually direct import orders will carry a cost of $2500 or more to meet minimum production quantities whether the item is $1.00 or $10.00 each. Overseas orders take 30-75 days which includes transit by boat. In most cases manufacturing takes 30 days and transit by ocean 20-30 days. You do need to allow extra time for sampling and proofing. At times, air freight is used to meet deadlines, however, it is not usually cost effective. Savings from doing overseas production compared to domestic production continue to marginally get smaller and smaller and maybe 10-20 years from now Made In The USA will be more available. This is due to increased overseas production costs including higher wages, less government subsidies, and increased shipping costs. We have seen a drop in product quality from direct overseas production, maybe because of the financial strains on those factories and fewer factories to work with. Most promotional products are all made overseas as blank goods and then held in the USA for imprinting on demand as orders come in. This probably won’t change anytime soon. Apparel production is the category where we see the most movement back to the USA. Companies want to keep less inventory on hand and get market faster with new products. The saving of doing these orders overseas is smaller now and the quality control is difficult. The benefits of waiting 4 months for an order rather than 1 month is not as appealing anymore. USA factories are gearing up to meet this new demand.