When you think of major centers for electronic manufacturing, Silicon Valley and Southeast Asia probably come to mind, which makes sense as so many tech companies are located in those regions. It’s unlikely you’d consider the American Midwest to be the best place for manufacturing high-tech electronics, but you should. The Midwest offers significant benefits over coastal cities and overseas manufacturing facilities when it comes to the production of electronic components and systems.
New Product Development Cost
Cost is usually the main concern at the start of any new product development project. While it’s important to keep expenses low, producing a quality product is equally important. Manufacturing in the Midwest allows for both; product costs remain low for consumers, and the profit margin stays healthy.
When you have complex electronic products to produce, choosing a manufacturer with low overhead is particularly beneficial. The lower cost of living in the region keeps manufacturing costs reasonable (including labor costs), which translates to product costs that maximize value.
Conversely, outsourcing manufacturing to international partners may mean lower labor rates, but global tariffs and shipping costs will quickly offset those expenses. Additionally, it’s much easier to monitor the production process of your new product when it’s happening here in the United States; doing so will allow you to retain a solid balance between low manufacturing costs and reliability.
There’s a reason companies like UPS and FedEx choose to house their largest distribution centers in centrally-located cities. The Midwest is simply better positioned logistically. It offers well-established distribution networks to move freight with ease. Therefore, the production process is more efficient and cost-effective.
The Speed of Production
Because the Midwest is so logistically sound, production times tend to be faster. Since the entire process is more efficient, it’s not uncommon for midwestern manufacturing facilities to complete projects weeks or months ahead of schedule. These companies don’t have to worry about tight employment demands, constant heavy traffic hindering shipping, and other issues that are prevalent in coastal cities.
Skilled Labor in the Midwest
You can get skilled manufacturing labor anywhere. It’s not exclusive to the Midwest, however much of the regional economy is based on production in warehouses. Compare that to the largely service-based employees and white-collar professionals of the west coast, and you get highly skilled production labor at a fraction of the price.
Consolidated Manufacturing Processes from One Source
When it comes to electronics, the manufacturing process is highly complex yet vital to the success of your product development. Consumers are becoming even more price-conscious. By partnering with a company specializing in manufacturing, with particular expertise in Design for Manufacturing (DFM), and locations throughout the globe, will extend price savings to not only your company but your customer.
Pivot International owns our own manufacturing facilities throughout three continents with scalable manufacturing in the Midwest. We have global engineering teams to help with the design of your product and offer a highly skilled project management team that can guide you through the entire product development process. Learn more what our team can do for you. Contact us today.