For years, the success of cable assembly manufacturers in the USA was eclipsed by cheap labor, mass production, and perceived lower costs that off-shore counterparts offered. The practice of offshoring the manufacturing of components to other continents like Asia resulted in many of these foreign-based cable assembly manufacturers to enjoy a period of sustained profits. But in time, such profits began to erode for a number of reasons. Higher wages combined with a decline in quality and service was shown to have a price tag of its own. Add to that the difficulties with project management, the extensive lead times needed for fulfillment, the complexity of trade and transportation logistics, challenge to intellectual property rights, even counterfeiting products, and there is a good reason why choosing a USA-based manufacturer for cable assembly is, in today’s market, the right choice.
Cable assembly manufacturers are those contract manufacturers that provide custom cable assemblies, electro-mechanical assemblies, wire harness assemblies, and box builds for a variety of devices in numerous industrial sectors. Domestic manufacturers are generally more reliable, offer higher quality parts and services, and far better lead times.
Benefits of USA-Based Cable Assembly Manufacturing
When deciding between a USA-based manufacturer and a foreign-based one, there are many factors that must be considered to ensure that your product is of the highest quality. This is especially true of specialized products like custom cable assemblies.
Reliability is a leading factor in selecting a USA-based cable assembly manufacturer. Domestic sourcing can not only meet high demand, but such companies are better able to meet production schedules and important deadlines. It’s also important to note the higher manufacturing and labor standards in the U.S. provide steady production and a stable, safe work environment for all employees.
Transportation Logistics & Lead Times
Another factor to consider is the complexity of transportation logistics and the overall costs associated with foreign-based manufacturers. There are no customs, duties and tariffs to deal with, and USA-based manufacturers are no more than three time zones away. The distance between U.S. offices and plants is a fraction compared with similar facilities located in Asia. This can improve project management, production costs, and ensure general supply chains are met and not interrupted. Logistics can be easily coordinated daily. With distance greatly reduced, quick delivery and lower transportation costs (duty-free) offer a big advantage.
Intellectual Property Rights
The protection of your products intellectual property rights should be a major concern for every US-based company. Protecting intellectual property rights is one of the biggest issues with foreign-based manufacturers, and one of the top trade and security issues between the U.S. and China today. Offshoring custom cable assemblies to countries that offer very little intellectual property protection places a company at risk. In the U.S., intellectual property rights are protected by law. They are strictly enforced - products cannot be duplicated and mass produced, which has become a big problem with foreign-based manufacturers of US intellectual property. Protecting intellectual property rights is a big reason to choose USA-based manufacturers for cable assembly products.
Finally, high quality is another important factor in choosing a USA-based manufacturer for cable assemblies. Expectations for high quality components are vital for optimal performance and operational integrity of manufactured products. However, in recent years, counterfeit electronic components have compromised the supply chain of manufacturers. Inferior counterfeit parts are very real. There are simply no guarantees that a foreign-based manufacturer is not involved in dubious practices such as remarking, reuse, unauthorized production, or false approval markings. Counterfeit mil-spec components have become a major problem in particular. The selling of reused components as new or re-marking non-functional components with false information, like original manufacturer, lot number, performance grade and so on is an ongoing issue.
Domestic sourcing is about better facilities, higher quality finished products, timely delivery, reliability, intellectual property protection, and the use of genuine parts in the manufacturing of custom cable assemblies or wire harnesses. These are the factors to consider in making the best choice for your business. When choosing a cable assembly manufacturer, better to choose the one that offers the most value now and in the long run.
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