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If you have spent any time researching custom cable work, you have likely come across support for using offshore production, such as that for wire harness in Mexico. A number of factors come into play when making a decision about production location. Cost, of course, is always key when making any decision for business, but other things should also be considered. The quality of the work, the rate at which items are produced, and the flexibility with production are all important, too. Each factor has its own effect on the overall ROI of the project. After careful research, it could be the right decision for you to offshore your custom cable work.
1. Save time
Keeping staff needs met in the United States can be a laborious and time consuming process. Unless you have found a shortcut to the search, hire, and train process, these things just take time. Those work hours could be better spent on the actual operations and business development of the company, where the ROI is sure to be better. Companies overseas have little problem keeping positions filled, and the headaches of staffing becomes theirs when you offshore. That translates to less of your work week spent on the process of getting your staff to full capacity.
2. Reduced stress
By outsourcing production of your wire harness in Mexico, you save on the stress of running an additional department. That means less facility to maintain, staff to manage, raw materials to keep ordered, and proper storage methods for finished products. Rather than trying to stretch your business focus into an all-in-one company with multiple production lines, keep your focus on what you do best. While you will still want to do your due diligence on interviewing for the right company to outsource to, once they are hired, the stress of handling the operations becomes theirs.
3. Access to talent
The savings in labor costs are substantial, but not because the workers available in other countries are unskilled. Many of the workers abroad speak multiple languages, are educated, and are highly skilled at the technical jobs you need. The pool of qualified candidates is also broadened from your local area. You are relieved from being dependent on only local candidates to do the job.
4. Reduced costs
The bottom line is one of the most compelling reasons to outsource. Often, the costs associated with production can be drastically cut when producing wire harness in Mexico or other countries. The cost savings are due to less expensive land, labor, resources, and materials. Offshoring also means reduced costs in the way of domestic, commercial or industrial square footage to rent, own, or maintain to house the new department. In addition, you will also not be responsible for maintaining and operating additional specialized machinery.
5. Flexible with production schedules
Rather than trying to develop production schedules around keeping your own staff busy, you have the flexibility to produce as needed. By producing off shore, the staff are not under your roof. You don’t have to keep them busy in order to keep them hired. Rather than firing staff when things slow and then having to go through the trouble of hiring again when they pick up, you simply place orders and products as your business needs them.
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