China Works have been featured in an article on low cost sourcing in one of the UK’s largest manufacturing magazines – Works Management.
Here is a short excerpt from the feature:
“Adam Herson, Managing Director at China Works, a company that helps UK companies lower costs by moving production to China, says that althought outsourcing production to low cost countries is often criticised, the issue is far from black and white. “In specific circumstances outsourcing can offer real benefits – improving the international competitevness of UK manufacturers and enabling new product development projects to get off the ground”
About half of China Work’s 35 strong customer base is made up of UK manufacturers looking to improve end pricing by outsourcing secondary parts and components while retaining control of technical value added processes. The other half comprises mostly smaller inventors looking to bring new ideas to market. Many new product development projects simply wouldn’t get off the ground without the option of cheaper tooling from the Far East (as low as 20% of the cost of UK tooling), insists Herson
Despite its partial perspective, China Works advises customers to maintain a global sourcing strategy – keeping the option to manufacture in the UK if economic conditions are more favourable for a given product at a given time, as they may be when the exchange rate permits. Herson add “retaining the option to manufacture in the UK also provides a fallback if outsourcing projects don’t provide the desired outcome”. Neither is every product suitable for outsourcing to a low cost country. Products that are highly automated, attract high duty, are bulky, or are high tolerance, typically generate the lowest cost saving. However projects with a high level of labout input, such as machined or fabricated parts, can pull in savings of up to 40% he reckons”
You can read more on the article at http://tinyurl.com/mvuacs
