5 Benefits of Nearshore Electronic Manufacturing

Let’s face it. Every link in your supply chain comes with a certain amount of risk. Unfortunately, many OEMs are feeling the pain left by production disruptions caused by COVID-19.

Prioritizing the safety of workers, vendors, suppliers, and customers is of the utmost importance. Yet, modern consumers have zero patience for delayed availability, even if there’s a natural disaster or global crisis as its cause.

Historically, Asia was the place OEMs sourced their electronics to remain competitive on a global scale. However, times have changed and labor, wage inflation, and even tariffs make overseas manufacturing operations less than ideal for modern manufacturers.

Factor in the uncertainty of a variety of factors outside anyone’s control, and you’ve got a recipe for disaster by way of supply chain disruption. Manufacturing efficiencies can still be obtained through nearshoring — and they come with far fewer risks.

Nearshore, North American partner benefits include:

PCB Assembly Partner

01. Supply Chain Gains

Right now, many companies are learning the hard way that the “cheap labor” they tap into across the world has many potential hidden costs that impact their bottom line even more. Alternatively nearshoring empowers OEMs through:

  • Reduced production costs – nearshore manufacturing reduces costs from every angle, especially freight and transportation fees.
  • Shorter lead times – get your product to customers faster thanks to manufacturing facilities that are in the same time zone (or pretty darn close).
  • Tariff-free operation – trade wars with Asia don’t seem to be going away anytime soon. But it’s the manufacturers and consumers who pay the ultimate price of increased tariffs and fees. These additional costs can make your product much more expensive to produce and less profitable to sell than those manufactured in North America.

Efficiencies in your supply chain may be the most obvious advantage, but nearshoring delivers other benefits that are becoming increasingly important during ever-changing times.

02. Agile Development Methodology

Speed isn’t the only thing you can gain from nearshore production. For example, VCC uses agile development processes to achieve more streamlined project management from start to finish.

Our ISO9001 2015 Quality Management System is one of the many ways we strive to be better, faster and more responsive without losing sight of quality. This certification means our processes for the design, development, manufacturing, delivery, and internal customer service have been verified by third-party audits.

03. Closer to Home = Closer to Market

Even in the best of times, products manufactured overseas can take over a month to ship from Asia to America. (Of course, this doesn’t account for trade wars, earthquakes, pandemics and other issues of our times.)

On the flip side, nearshoring puts your products a few hours’ drive from your assembly line, which is essential for just-in-time (JIT) manufacturing and inventory management.

Shipping is faster, more reliable and cheaper from a neighboring country, where no oceans must be crossed to get your hands on your product. The faster your products hit your facility, the faster they get into the hands of your customers.

04. Greater Protection for your IP against Copyright and Patent Theft

Delays may be the top concern for OEMs at the moment, but intellectual property (IP) protection should also be a top consideration when choosing a manufacturing partner. Certain countries are notorious for patent theft and copyright infringement.

When your intellectual property is the lifeblood of your organization, why risk anything other than production that eliminates your risk to fraud and the theft of your IP. Work with a partner that adheres to the strict IP laws established in the U.S.

Before any work begins on your design or manufacturing project, VCC can put a non-disclosure agreement (NDA) into place at the customer’s request. We understand how to balance confidentiality and speed, and have the protocols and infrastructure in place to securely exchange:

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NDA documents

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CAD drawings

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Specifications

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Bill of materials (BOM)

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Gerber files

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Anything else required to quickly get moving on the project

05. Access to a Highly Skilled Workforce

If your manufacturing operations are in China, your team may need to be available at 9 or 10 p.m. to answer questions, and there is at least a 12-hour delay on all communication. One medical device manufacturing consultant calls this impact “Asia fatigue.”

Real-time access to trained and experienced professionals located nearby eliminates back-and-forth exchanges that can lead to delays, frustration, and errors.

Highly skilled workers are also more adaptable to change. And in today’s market, change is the only certainty we’ve got.

“No matter what is happening in the world around us, our customers know we’re close by and ready to respond to ever-changing needs. Plus, they get their products faster while still taking advantage of reduced production costs most people associate with overseas manufacturing. And they do it without the risk of costly disruptions in their supply chain.”
Thomas Macon

VP of Sales, VCC

Nearshore PCB Manufacturing and Beyond

Whether there’s a global crisis or not, keeping your production closer to your operations provides the flexibility and confidence required to remain competitive:

  • Faster, more reliable delivery
  • Streamlined supply chain
  • High-quality products
  • Shorter lead times
  • Reduced production and transportation costs
  • Enhanced IP protection
  • Flexibility during uncertain times

As customer demands increase, manufacturers need to consistently offer higher quality products at the best value. And of course, as quickly as possible. Nearshore manufacturing is the most practical, cost-effective and sustainable supply chain strategy.

Building a flexible supply chain is a must. Fortunately, it may be easier than you think. If you’re ready to reevaluate your supply chain, our dedicated team of professionals is available to assist you. We look forward to helping you through this stressful time with proven nearshore capabilities.

Frank D'Aliesio

Frank D'Aliesio

Regional Sales Manager - West Coast + Latin America

Victoria Winstead

Victoria Winstead

Regional Sales Manager - Central

Melissa Canup

Melissa Canup

Regional Sales Manager - East Coast

Pam Bickel

Pam Bickel

Customer Service Manager

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We look forward to helping you through this stressful time with
proven nearshore capabilities
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