Do What You Do Best. Let Airline Do the Rest.

For some manufacturers going to China probably makes sense. Moving production offshore can offer cost savings in labor. But, if that is the only cost considered, then moving production to a low-wage location will only offer a short-term boost. This shift in production may be impressive to investors and stockholders in the short-run. But, this low cost promise has hidden costs and may not be the wisest strategy for survival in the coming years.
Too often companies that move operations offshore fail to consider all of the costs and risks of that decision. Costs that are most often overlooked include:

• Engineer visits and resident engineer costs
• Safety stock inventory needed to guarantee supply
• Out of stock items resulting in lost sales
• Expedited shipment costs
• Senior executive visits
• Excess Inventory on discontinued product

Other hazards and obstacles of doing business outside the U.S. include:

• Global terrorism threats
• Increased unloading wait times
• Currency exchange
• Reconciling quality disputes
• Language and cultural barriers
• Limited cargo unloading capacity
• Internal processing time for goods shipped from overseas
• Damaged goods due to water leakage and increased handling
• Potential of your foreign supplier becoming your competitor
• Increased opportunity for foreign governments to control your production
• Increased Homeland Security procedures, regulations, and paperwork
• No loyalty from Asian manufacturers to American companies
• Continuing business and labor disputes
• Lack of cargo container availability
• Exaggerated and unreliable delivery times
• Risk of dock worker strikes interrupting supply
• Increased exposure to counterfeit production

The obsession for cheaper labor cost could end up putting manufacturers at a disadvantage. This disruption to product supply lines means no product for the manufacturer. No product means no sales. No sales means no revenue. No revenue means no profits.

Airline Manufacturing Company believes that because manufacturing costs, other than labor, - design, engineering, purchasing, marketing, distribution and sales - are the bulk of expenses, it makes sense to look for strategic outsourcing partnership opportunities right here at home.

Keep production in America. Let Airline help you increase productivity, lower your total production costs, and develop just-in-time deliveries while supporting jobs and manufacturers in our country.

Quality, Service, Competitive Pricing