J – CAD Inc. offers mass production overseas and in the USA. Back in the early 2000’s right around the time China really started to BOOM, J-CAD carefully selected manufacturing facilities to partner with, so that we can offer top-notch mass production capabilities while offering very competitive pricing. J-CAD has created partnerships with only experts in mass production that offer attention to detail, quality materials, sound processes and reliable deliver-ability. We are your connection to value-added manufacturing, offering you a real plan to mass produce your parts or product. We also use reliable industrial Computers in our factories so that we can run as smoothly as possible with as little disruption due to software issues. For infomation on industrial PCs, see here.

Sometimes manufacturing overseas is difficult for an inexperienced individual or small or even large business to navigate through the processes. That’s why we’re here to take your project from beginning to end and deliver a finished product right to your door.

MADE IN USA!

Some of our clients insist on having their parts made locally in USA or Canada to help their local economy and we totally get that! For this reason, we have also set up facilities in North America that can handle your mass production requirements on a large scale keeping everything done right here! The factory has been equipped with the latest equipment to make the build quality superb, you can read more here. When mass producing your parts locally you can expect to pay 30% – 50% more for your order but keep in mind that the shipping cost of your parts is only a fraction of shipping them from Asia making the increased cost to produce them not that much more when you add it all up.

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For example:

  • Let’s say 500,000 parts cost $0.30 each to make overseas plus $40,000 to ship back to the USA. Total project cost is $190,000.
  • The same 500,000 parts cost $0.40 each to make in the USA, but shipping is only $2,000. Total project cost is $202,000.

As you can see, sometimes it’s not that much different, and you have the comfort of knowing that the parts are “MADE IN USA!”

We typically deal with minimum part orders of 50,000 but we can accommodate smaller order quantities if you require. Just let us know and When it comes to manufacturing you have plenty of options available, something that can make finding the right choice for your business difficult.

Should you choose domestic or foreign manufacturing? What are the pros and cons of each? Is it ethical to outsource a job?

Below are some more in-depth thoughts on these questions, and how they can affect your business.we’ll price it out for you!

When it comes to manufacturing you have plenty of options available, something that can make finding the right choice for your business difficult.

Should you choose domestic or foreign manufacturing? What are the pros and cons of each? Is it ethical to outsource a job?

Below are some more in-depth thoughts on these questions, and how they can affect your business.

What is Foreign Manufacturing?

Foreign manufacturing is whenever a company sends a product overseas to be created. Some of the most common countries that often receive American company manufacturing requests are China, Thailand, and Singapore. This tends to be a popular choice for businesses due to reasons like cheaper costs and fewer regulations.

The main country where this type of manufacturing usually occurs though is China. China is actually called “The World’s Factory” because of its large amount of them.

Foreign manufacturing is mainly used because there are typically more options available for companies.

What is Domestic Manufacturing?

Domestic manufacturing is when all factory work and production are done on U.S. soil. Some popular manufacturing locations in the U.S. today are Grand Rapids, Louisville, and Denver. Overall, domestic manufacturing has produced over $2.2 million dollars for the U.S. economy and continues to grow.

Domestic vs. Foreign Manufacturing

Both ways of manufacturing are very different from each other and each has their own pros and cons. Below is more about these two different types and how they differ.

Foreign Manufacturing

One of the biggest advantages of foreign manufacturing is that production often costs less for businesses. This is due to workers having much lower wages compared to American workers, which is why many companies tend to ship their products overseas.

However, while this option might be more cost-efficient compared to domestic manufacturing it does have some drawbacks. With foreign
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manufacturing, you often have to wait a long time for the manufacturing to be completed and communication can sometimes be bad so you might not know how things are going. You also have to consider custom reports and the time and money it could take for your products to pass them.

Customs

The biggest difference between foreign and domestic manufacturing is that customs is required for importing foreign manufactured products. If you decide to use foreign manufacturing, you are legally required to have a customs broker. This broker is someone who has a valid license that allows them to help you with the necessary documentation, regulations, taxes, and other important details when importing products from overseas.

Domestic Manufacturing

While domestic manufacturing costs much more, this option is often the quickest. You’ll usually have better access and communication with the factory and many U.S. manufacturers often are able to handle low order amounts, something that foreign manufacturers are usually unable to do.

Federal Regulations

Domestic manufacturing means that federal regulations must be followed. Close attention is paid to things like where you buy and source your materials, how the assembly line is designed, and quality control.

The labeling is also paid close attention to because a few things need to be listed on it for the customers’ knowledge. Things like the origin of the product, manufacturer’s name, and any health effects are often required to be written on the label.

The great detail that goes into these regulations can be a turnoff for some businesses, but it’s designed to ensure that everything is of the highest-quality and customers are aware of what they’re buying.

Advantages and Disadvantages of Outsourcing Manufacturing

The Advantages

A major advantage of outsourcing manufacturing is that companies can have a huge tax break and save a lot of money when investing in foreign factories. The Foreign Tax Credit is where the taxes paid to the manufacturing company is removed from domestic taxes.

Another unique advantage of manufacturing overseas is that workers are often skilled in the necessary requirements for factories, unlike the U.S. This because factories are a huge part of the workforce in these foreign areas and it’s required that these skills (like running and fixing machines) be known.
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Outsourcing manufacturing is also ideal in the sense that there are often fewer regulations which means that it won’t take as long to produce items and payments can be cheaper.

The Disadvantages

This cost-efficient choice, however, comes at a price. While it might be cheaper, the quality isn’t always the best.

Because costs are so low factories have a huge demand from many different companies and only have a short time schedule to complete all of the demands. This can greatly impact the quality because the factories are working to produce as much as they can per day.

Also, you need to typically place a large order for foreign manufacturers. This can make trying to create only a small amount of products impossible and can be very discouraging to smaller businesses.

Another major disadvantage is that you need to put up about 30% of the payment beforehand. If you’re not able to do so, your product more than likely won’t be manufactured.

Communication can also be a problem as many overseas manufacturers speak little to no English which can make trying to express your ideas and concerns difficult.

Is Outsourcing Ethical or Unethical?

This is a question that many often ask, and it’s an important one to consider. While you might be spending less money and making more for your company, workers in foreign factories often aren’t working in pristine conditions.

Outsourcing jobs to foreign manufacturers can also have a major impact on the local environment, something that can negatively affect the local people. Because there are fewer regulations with these factories, shortcuts are often taken which can lead to excessive pollution and destruction of the native environment, especially in the form of smog.

For instance, China has closed over 80,000 of its factories due to recent safety inspections finding that factories were exceeding the allowed pollution emission rates. These factories leave behind a thick and yellow-colored smoke throughout the cities, which is sometimes so thick that it completely blocks the sky and sun from being seen.

However, outsourcing can also help to create jobs for people who would otherwise not have one. Many countries that do foreign manufacturing are able to help local people earn money to support their families, something that would be very difficult for them to do without the outsourcing work. Many factories overseas tend to be in developing countries and just a few U.S. dollars can make a huge impact on them.

Often outsourcing can be seen as being both ethical and unethical. However, outsourcing leans a little more toward the unethical side because workers and the environment are usually taken advantage of. If you decide to outsource a project it’s best to research the manufacturer carefully and come up with some conditions that are ethical to ensure that workers are treated fairly.

Ideally though, it’s good to invest domestically because there are rules to help prevent workers being taken advantage of.

The Pros and Cons of Manufacturing in the U.S.

The Pros

Manufacturing in the U.S. comes with plenty of benefits. One is that production here will be much faster and often of a better quality. This quality comes at a price though, which is why using the services of U.S. factories cost a little more.

However, while it might cost a little more to produce products here, there is a special incentive to encourage companies to do so. Form 8903 was created to offer tax incentives to businesses to do manufacturing in the U.S. Known as the Domestic Production Activities Deduction (DPAD), this form is especially ideal for small businesses because they tend to invest more in domestic manufacturers.
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Another advantage is that because the products are being manufactured on U.S. soil, many factories can accommodate smaller production quantities, something that can be very beneficial for small businesses.Production time is also pretty much the same in the U.S. as with foreign manufacturers, about 40 days. The difference however with manufacturing in the U.S. is that shipping those products is much quicker than with factories overseas because you don’t have to worry about the daunting and often time-consuming customs regulations.

The Cons

While it has numerous benefits, manufacturing in the U.S. also has some disadvantages. One is that you’ll be paying a little more for production, compared to what you would, if you worked with a foreign factory.

Factories in the U.S. have also lost a little bit of appeal to workers. Because of this, not many people work for factories (compared to those overseas) which can impact the productivity of a certain domestic manufacturer.

Because of this lack of appeal, there are only a handful of factories in the U.S. compared to overseas which can limit the options that companies have when trying to find manufacturers for their products. This makes it difficult for larger companies to find local factories that can produce the large amount of the products they need.

Our company completely manufactures all products in the U.S. and can work to quickly create all types of products, no matter how big or small they are. JCAD will be able to supply you with custom molds and other manufacturing services that your business needs to help it flourish.

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