Designed, Manufactured and Quality Tested in the USA
Smart Controls designs, manufactures and quality tests all production runs locally in the USA. Design, manufacturing and quality control occur on site, located conveniently in the central United States. Six Sigma processes ensure each production run is on time, in budget and quality controlled.
Smart Controls has been manufacturing locally since 1993. With a firm dedication to continue and maintain manufacturing locally, Smart Controls has been innovating with optimal manufacturing techniques for decades. Lean Manufacturing, Six Sigma and Zero Defect Strategies are used to enable both large and small quantity runs. Smart Controls maintains component inventory to build any size product order within weeks, giving an amazing advantage over foreign manufacturing.
Home Field Advantages of Manufacturing in the USA
In early 2012, a trend began. Instead of manufacturing overseas, many American businesses turned to local manufacturing for production. What are the advantages that these businesses experience when they choose local manufacturing over foreign manufacturing? Several articles from reputable sources cite the costs of going overseas, the creativity of American design, the innovative methods employed by American manufacturers, and the end result of high quality products as the main reasons for choosing local manufacturing.
In March 2012, entrepreneur and startup magazine Inc. published an article by Erik Markowitz that captured the start of the local manufacturing phenomenon.
According to Markowitz, the costs of going overseas have been wildly underestimated, and American firms are beginning to realize that the total cost of going abroad don’t justify offshoring in the first place.
“Looking only at only price, which is what most companies do, all the work would stay offshore,” says Harry Moser, founder of The Reshoring Initiative, a group promoting the return of American manufacturing. “But if you looked at total cost of ownership, that’s no longer true.”
“Our study found … that many manufacturers who had offshored their operations likely did so without a complete understanding of the ‘total costs,’ and thus, the total cost of offshoring was considerably higher than initially thought. Part of the issue is that not all costs of offshoring roll up directly to manufacturing; rather, they impact many areas of the enterprise.”
But it is not mass production that is driving the return to local manufacturing. The New York Times published an article by Jim Dwyer citing the draw of the uniqueness and creativity of American manufacturers. Because businesses find niches for custom made products, and because American manufacturers offer those unique designs with the assurance of high quality, businesses are increasingly choosing to produce in the USA.
“The days of mass producing in New York City are gone,” Mr. Abel said. “If you were producing nuts and bolts by the tens of thousands 50 years ago, you’re not going to do it today. But creativity, or uniqueness or design is definitely something that can flourish.”
Perhaps the biggest factor bringing manufacturing back to the U.S. is rising labor costs abroad. CNN Money recently published an article by Emily Jane Fox that evaluates the labor and wage situation in China.
“In 2000, the average worker was making 58 cents an hour in China. Today, it’s a little over $4,” said Mike Zinser, a partner at BCG who co-authored a survey that asked over 100 companies about overseas manufacturing. “If you continue to play that out, by 2015, it will be over $6 or $7. The economic advantage is shrinking.”
The survey found that 70% of companies agreed that “sourcing in China is more costly than it looks on paper.” Zinser cites unforeseen headaches that come up with shipping, product quality and complicated supply chains.
And with the widely experienced uncertainty over the quality of Chinese production, it is small wonder that businesses are seeking to produce locally.
Dwyer, Jim. “ABOUT NEW YORK; A Manufacturing About-Face: Made in America but Sold in China.” The New York Times. The New York Times, 21 Sept. 2012. Web. 30 Oct. 2012. <http://www.nytimes.com/2012/09/21/nyregion/a-manufacturing-about-face-made-in-america-but-sold-in-china.html?_r=0>.
Fox, Emily Jane. “Can the U.S. Handle a Manufacturing Comeback?” CNNMoney. Cable News Network, 23 July 2012. Web. 30 Oct. 2012. <http://money.cnn.com/2012/07/23/smallbusiness/us-manufacturing-workers/index.htm>.
Markowitz, Erik. “Made in USA (Again): Why Manufacturing Is Coming Home.” Inc.com. Inc., 23 Mar. 2012. Web. 30 Oct. 2012. <http://www.inc.com/eric-markowitz/the-long-journey-home-why-manufacturing-is-returning-to-the-usa.html>.