FAQ- Frequently Asked Questions

China outsourcing and manufacturing: competitive advantage or a myth?

Yes, 20 to 30% cost savings can be achieved! Chinese labor rates are low compared to North America,  BUT …need to be well managed, eg. localisation of design and specifications, constant quality, constant production, volume, protection of copyrights....

Non-Disclosure Agreements – What are they and do I need one?

Before entering into any negotiations or submitting your product idea for review we will sign with you a Non-Disclosure Agreement (NDA), this warrants that that we will not discuss your product to any third party and protects both of us.

What about copyright infringement in China?

Copyright infringement in China is still a problem, even if the Chinese government is trying to prevent it. We protect your IPR by having an NDA signed with all our suppliers and contractors, your specifications and technical plans are stored on secured servers, with password protected access only on a need to know basis. We also keep track of all our suppliers and contractors who had access or knowledge of your specifications.

What types of products are better to be manufactured in China?

Most advantages come from the competitive Chinese labor rate and supply chain; from our over 15 years of experience in China we are amazed at the huge range of materials and specialised processing that is available.  If your requirements are very large volume, lower quality or single product type, there may be cheaper options. We offer our highly customisable inspection and assembly services to offer a low cost, high quality product capability to our customers. 

Am I the right company to be manufacturing in China?

If you are facing competitive cost pressure, the answer is probably YES. But in general, Small and Medium Enterprises (SMEs) do not have the time, money, expertise nor resources to take advantage of outsourcing or manufacturing in China. With us, you do not need to be a large corporation to benefit from the cost competitiveness that China provides.  You focus your valuable resources on R&D and design of new products, customer care and support. We take care of your manufacturing headaches and ensure that quality and source of supply are constant at the best cost.

We also provide manufacturing services to Fortune 500 and equivalent companies, largely due to our flexibility and lower overhead costs while maintaining strict process and quality control.

How are the manufacturing costs ?

Overall loaded labor rate in China across all skill sets is about 3- 4 times lower than in North America. And China's supply chain offers further savings. Customers are typically experiencing savings between 20%- 50%.

How do you ensure quality control?

Quality control in China is the most critical element. We follow all Western QC processes, ensure traceability and perform in-house and independent quality tests. Since you are the expert on your product, we like to partner with you to prepare a customised plan that meets your requirements.

Is there a minimal quantity I must order?

We know that it takes time for products to grow and changes to happen, and we respect customers who do careful testing to detect and resolve all possible problems during changes; we look forward to partnering with you to ensure success.  We generally assume that an annual relationship value of $150k or more within a couple years likely offers substantial value and savings to the customer.