As global markets converge and the world gets smaller by the hour, its often tempting to look to abroad to get your custom injection moulding needs serviced.
Labour markets are cheap and these days communication is relatively fast and simple, so it is tempting to look straight to the off shore market in the hope of saving dollars, BUT it comes with several risks.
In this blog I unearth the traps and shed some light on the benefits of moulding in Australia.
Trap 1. Time Frames.
Turnaround times vary with 18 days on the water and 2 customs clearances at the ports. The smallest details can delay your project considerably causing added cost to the project. Fumigation Certificates for all pallets and wooden boxes, customs red flags, incorrect manifests all adding to the time frame. Any one of these can stop your project dead in its tracks and this just the beginning. And that's before we consider the current Australian "V" US Dollar Exchange rate which can be extremely difficult to predict and plan for.
Trap 2. Legal issues
What if something goes wrong? The cost of chasing up a refund if at all possible is horrendous let alone your confidentiality and intellectual property being disseminated potentially to several other sub contractors without your knowledge. This is risky as the Chinese understanding of "Copyright" is less than nonexistent. You could find your million dollar idea in the local two dollar shop before you have even worked out your artwork and sales strategy.
Trap 3. Attention to detail
Will you get exactly what you have paid for? In this instant the cost of going to china to manage your project will inevitably detract from the potential savings that can be realized for first timers.
When your Injection moulding tool arrives in the country, the challenges continue. How do you get warranty, moulding size adjustments and other expected considerations? Is it dimensionally accurate to "Your Businesses Standards"? All of these issues weigh heavily on your mind from the moment you place your order until you have it up and running in your Injection moulding machine.
Yes it is true there are savings to be made, however for first timers wishing to produce injection moulded plastic products the question remains, at what risk?
By taking ownership and running the project in Australia you can be sure that you are in control of timing, setup costs and ultimately the quality of the final product. From here, at a point of time it may then prove beneficial to explore an overseas option but this would be after several years of successful production in Australia.