September 11, 2012
Bill Laursen, VP Sales & Strategy
Coghlin Companies, Inc. of Worcester, MA. USA, is a leading “time to market”, Concept to Commercialization focused Contract Manufacturer and Engineering Services company. As the Vice President of Sales and Strategy for CCI, I am often asked my opinion on contract manufacturing in the USA compared to Southeast Asia, and more specifically, China and Taiwan.
My response is quite simple – if we are talking about manufacturing of industrial devices, medical devices or large capital equipment then:
- Does the risk justify the return?
- How important is your total landed cost?
- Do you value your Intellectual Property?
However, it gets simpler if you add the dynamics to a successful outcome that includes procedures like Product Engineering, Design Services, Design for Manufacturing, Prototyping, RF Testing, Medical Device Contract Manufacturing and FDA certification and compliance initiatives like ISO 13485 or FDA 21 CFR Part 820.
- Do you value your time?
- Does time to market matter?
- Do you expect varying business cycles?
What makes my response so quick and so simple is a few staggering statistics:
- Counterfeiting costs US businesses $200 billion to $250 billion annually.
- Counterfeit merchandise is directly responsible for the loss of more than 750,000 American jobs.
- Since 1982, the global trade in illegitimate goods has increased from $5.5 billion to approximately $600 billion annually.
- Approximately 5%-7% of the world trade is in counterfeit goods.
- US companies suffer $9 billion in trade losses due to international copyright piracy.
- Counterfeiting poses a threat to global health and safety.
- China and the US have a 12+ hour time difference
- Average flight time from USA to China is 14+ hours
- Average sea freight time: (From Shenzhen, China to the USA)
To US West about 12-15days by ocean
To US East about 24-32days by ocean
To US mid via US west ports then transported via railway, such as Chicago, about 21days
In short, cast your confidence and choose an American engineering and manufacturing company that is local, one that honors and respects the laws that are established to protect your interest and one that values flexibility, integrity and trust.