What are the financial benefits of outsourcing my injection molding project to the US?
- Avoid Risk
- Faster Start-Up
- Cost Savings
- Economies of Scale
- Streamlined Inventories
- Guaranteed Quality and Expertise
- Strategic Optimization
Thinking of starting production on a new plastic product? You may be contemplating implementing a plastic injection molding department into your business. But before you do, you may want to consider outsourcing.
While having your own injection molding facility can be beneficial, many components affect the quality of plastic parts, and only experienced professionals can maximize this process — which is why outsourcing may be the most cost-effective option for you.
If you plan to use plastic in your business, here are seven financial benefits of outsourcing injection molding to the US that you must know before proceeding with your plastic project.
There is always high initial investment and risk when establishing a new business venture, operation, and the like. And with manufacturing projects, the risk is quite daunting — you are entirely dependent on demand, sales, economies, and other factors that affect your new department’s return on investment.
In some cases, it can take years to just break even on creating your own manufacturing facility. Rather than banking your hard-earned money on something so risky, investing that into a business that’s already established is much safer. Outsourcing transfers most of that risk onto the manufacturer.
“Time is money” is a saying we’re all familiar with. And, when it comes to producing plastic products, it’s entirely true. Setting up your own plastic injection molding facility takes a considerable amount of time.
From creating your workshop, finding the right equipment, and even hiring and training workers — all of these can take months, if not more than a year, to do. Outsourcing your manufacturing saves you time upfront by removing the need to set up your own injection molding shop. Why reinvent the wheel when so many US manufacturers are established and ready for business?
While small plastic parts of products may seem easy to make, they actually require plenty of detailed specifications, techniques, and expertise to create. Plastic injection molding is a complicated manufacturing process, which needs specialized skills and expensive machines to create products that best fit your needs.
Moreover, plastic injection molding involves several kinds of molding and processing machines to create plastic products and parts. As such, there is a need for significant floor space and infrastructure to house and sustain them. They require stringent and almost constant maintenance as well. The costs of setting up an injection molding department are sizable.
Outsourcing your molding needs to an injection molding company in the US will significantly lower ongoing production costs, which can help you establish a more competitive price for your plastic parts and products.
Economies of Scale
Production volume is critical to meeting product demand, recouping initial investments, and creating economies of scale. Newly established injection molding manufacturers simply do not have the capacity, personnel, and network to fulfill large production volumes. This is how they miss out on the benefits of economies of scale.
Rather than struggling to scale your production, partnering with a US injection molder will provide the necessary capacity, supplier relationships, and workforce needed to drive prices down for sourcing and processing large product orders.
Inventory is another important aspect of selling and supplying plastic products. Having just enough inventory for sudden demand spikes can prevent supply chain interruptions, shipment delays, and unhappy customers.
This is a fine balance that is difficult to strike on your own. Keep too much, and your warehousing costs increase, and you’re likely to have waste products as well. Too little, and you’re running short on demand. Working with an experienced plastic injection molder means you’ll be receiving their planning capabilities — you’re more likely to receive what you need when you need it, and at affordable prices.
Guaranteed Quality and Expertise
Staying competitive in the market for plastic products requires quality, speed, and scale. When it comes to efficient and valuable production, there is no denying that experience is what sets manufacturers apart.
When a manufacturer practices a craft over many years, there is a clear difference in quality compared to the newly established. It takes a team of experienced professionals trained in different disciplines, such as design, engineering, operators, maintenance, and more to ensure that the product meets the highest quality standards.
Having seamless processes, minimal rejects, and excellent production is the by-product of experience — all of which contribute to reducing risk and costs for you, the client.
Outsourcing in general is typically a good idea if your business wants to expand in a certain direction, but falls under a field of operations that is not your business’ forte.
If your business has not created custom-made products or ventured into injection molding before, outsourcing is a sound idea. This way, you can funnel more of your time and resources into core aspects of your business, while still receiving the benefits of expanding your operations through outsourcing. This is more profitable in the long run.
These seven financial benefits of outsourcing your injection molding to a US manufacturer are all the result of one thing. Creating plastic injection molded parts is complicated, so it is a process best left to the seasoned experts of the field.
If you choose to outsource your plastic injection molding project, choose a partner who is dedicated to the craft, and provides dependable and high-quality results — like Richfields.
At Richfields, we have accumulated numerous clients and projects that have allowed us to become experts in all things plastic injection molding. If you need assistance or have an inquiry, take a look at our FAQ, or send us a message here.