Blog from CEO, Ted Fogliani

Posted: March 02, 2011 by Ted Fogliani in: Blog Posts

Since it started, the contract manufacturing/outsource manufacturing industry has been one known almost solely to those who work in it.  People in general don’t know that most companies do not manufacture their own products, rather they choose to partner with a manufacturing services company.  The purpose of using an outsourcing company is that the contract manufacturing company should be able to deliver better costs, higher efficiency and better supply chain support for most OEMs compared to their manufacturing on their own.  Our company is one of those in the San Diego market that works hard to deliver on those expectations.

People I speak with are always surprised by how many contract manufacturing firms are in the San Diego market.  Few believe that manufacturing is even going on in San Diego.  Manufacturing is happening in San Diego.  Often, I explain to them how could the area support so many lawyers, accountants, UPS drivers, insurance brokers and other service providers if there weren’t companies manufacturing.  Manufacturing exists and is an important key to supporting many of the service companies and jobs all around San Diego.   And, there are some significantly sized contract manufacturing companies in San Diego who bring in revenue, tax dollars, jobs and support for the community.  We are proud to be among those, and among the largest 2 or 3 of them.

What is important to realize is that manufacturing is happening in San Diego, it is happening in the U.S. and with companies such as Outsource Manufacturing, Inc. which choose to run efficiently and profitably, it has a very solid future.

Outsource will be working hard this year to get the message out about the success and the future of U.S. Manufacturing.  We want to remind OEMs that the U.S. being is a market where products can be manufactured at costs which are not only competitive, but in many cases lower than manufacturing in markets that many think always provide lower costs.  It’s not always true that the cost to build in China or Mexico is lower than to manufacture in the U.S.   We will look to educate, provide information and support U.S. based OEMs in their evaluation of where to build their product.  Our expectation is that some may realize it is more cost effective to manufacture in their own city versus setting up relationships with manufacturing facilities in facilities outside the U.S.

We are going to challenge companies to at least consider U.S. facilities in their evaluation of where to build the products.   The U.S. offers many more advantages as a manufacturing site than any other in the world and it’s time to get that message out.

When I speak at industry events or I am talking with potential customers, I try to communicate a message about how to choose the location that will truly give you the lowest total cost of goods.  It is not only the cost of the product, but requires factoring in freight, cost of money, travel, logistics and communication and support.    We think it is important to broaden the audience for that message and will be doing it through a number of mediums.

For those that find value and the time to stay connected to our website, LinkedIn and Facebook pages, we will be putting out information about the industry and information specific to our business as examples of what works, and in some cases what hasn’t work.   To the extent that it can help others to find ways to manufacture in the U.S. we think our time and investment to get that message out is worth the effort.

When done right, there is nothing better than manufacturing in the U.S.

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