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Deciding where to source parts and carry out electronics manufacturing for products sold in the United States can be complicated. While overseas companies can often offer lower labor costs and a steady supply of parts, those are not the only factors to consider. Keep reading to find out from our panel of readers why manufacturing electronics in the United States could be your best option.
Christen da Costa

Christen da Costa

Christen da Costa, CEO of Gadget Review.

United States Manufacturing Laws and Market Awareness

There are two major advantages I can identify. The more practical one is that U.S. manufacturers are more aware of the specifications desired by U.S. markets. They also know the laws regarding manufacturing and consumer safety and can ensure your product isn’t destined for recall. This knowledge saves you time, money, and potential legal trouble down the line.

The other reason is for branding. If you can say your product is fully American-made, people will support it just because of that. Obviously, you need a competitive price point, but Americans will pay a bit more for something American-made because they perceive the quality as being higher–whether that’s technically true or not.

Reduced Shipping Cost

The most obvious advantage to outsourcing the manufacture of electronics to the U.S. when your target is the U.S. is the reduced shipping cost, as well as the avoidance of tariffs on the final product.

In addition, being able to label your product as ‘American Made’ is very appealing to many consumers. It would also bypass some but not all the supply chain issues that were happening during Covid last year. I say some because components will undoubtedly still be coming from [Taiwan and China] to be assembled in the U.S.

Keesjan (Case) Engelen

Keesjan (Case) Engelen

Keesjan (Case) Engelen, CEO of Titoma.
Eden Cheng

Eden Cheng

Eden Cheng, Co-Founder of PeopleFinderFree.

Support Local Manufacturers and Cut Shipping Costs

Outsourcing has long been the most popular way for companies to handle their electronic manufacturing services, and for good reason. It is a tried and tested method that can offer numerous benefits to both the company and its customers. Most of the reasons that motivate electronics companies to outsource their manufacturing to countries in Asia and their surroundings have to do with a cheaper labor force, which is a pretty solid reason, to be fair.

However, I believe that there is an argument to be made for the potential advantages an electronics company could enjoy if they outsource their electronics manufacturing to manufacturers in the U.S. If their target market is the U.S. then for one, there is a definite benefit when one of their products has a label saying, ‘Made in the USA.’ The customer will feel more inclined to purchase it knowing they will be supporting local manufacturers by purchasing this particular product.

Another potential advantage is that of reduced shipping costs. When buying a product that has been manufactured outside the U.S., shipping costs are always factored in. Therefore, outsourcing to U.S. electronics manufacturers eliminates any shipping costs, making it more affordable for the customer.

Advantages Of U.S. Electronics Manufacturers

The Best Place to Mature Your Design
The biggest advantage in manufacturing in the U.S. is the quality of the solutions suggested by U.S. companies in terms of design, integration, and feasibility. This quality has much to do with the level of qualification and education of the personnel. So, when you’re in the development or maturation stage of your product, it makes sense to take advantage of partnering with U.S. manufacturers. Their level of expertise will help solve design problems and optimize your design for mass manufacturing.

Reduce Time Difference
The time difference can’t go over three hours. It has its importance for quickly discussing issues and reducing latency in projects. Moreover, there is no language barrier.

After Product Maturity
Only when your product is mature enough you might consider outsourcing your manufacturing outside of the U.S. By then, you should know the design of the parts you need. Double sourcing is also a way to keep a form of competition between your manufacturers. It can give you leverage for price negotiation.

Ludovic Chung-Sao

Ludovic Chung-Sao

Ludovic Chung-Sao is the Founder of Zen Soundproof. He uses his experience as a Mechanical Engineer to compile Soundproofing DIY guides.

This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.