The variety of parts and products that are manufactured in China is vast. Some can be more profitable to source than others, and there are factors that can influence the overall price.
Profitable Product Types
Machined parts are very lucrative to source from China. Parts that require more labor are ideal to outsource. These can be from a wide range of different materials such as aluminum, steel, copper, polypropylene, polyethylene and ABS, as well as other various types. The huge assortment of parts that are machined in China vary in size and function from screws, medical equipment, and automotive parts, to educational products. We worked with a spare parts wholesaler and helped him save 70% of the domestic cost on the molds and plastic components he was paying for.
Textiles can be profitable to source in high quantities. Clothing, jeans, rugs, carpets, furnishings, netting, and towels are all items that can be worthwhile to get manufactured overseas in large volumes.
Electronics such as circuit boards, speakers, chargers, and computer parts can be worth looking at buying overseas. These components can land very nice savings when sourced properly.
Wood products such as bottles, furniture, cases, boxes, pens, blocks, cabinets and spice racks are other good products that have been beneficial to source. From rosewood to maple wood—bamboo to reed, there are many different materials that we’ve helped customers source to manufacture their wood products.
Factors that Influence Profitability
The higher the amount of hours a product costs in labor, the more profitable it is to source from China. China’s average labor cost is $2.00 an hour. Molds are generally 80-90% cheaper to produce there than in America. We helped a client save 66% of the cost he was paying for on a patented metal assembly.
A larger quantity ordered of a product will lower the cost of the part. Factories are much more willing to be flexible in price negotiation if there is a high volume of parts ordered.
China’s large industrial base and the massive amounts of products they source make them an ideal option to manufacture your products. We have experience in saving customers money manufacturing their products in china, get a quote now to see how much you could be saving.