Any advice on this topic in general. Just looking for any stories/recommendations/connections any fellow Aggies may have surrounding this topic as I am very inexperienced on the proper questions to ask, and method of going about picking where to manufacture.

Thank you!

Would this be manufacturing a final product ready for sale or a product that would be worked on further in the US? I remember rgv ag (I think) saying that he would order some type of textile by weight and find that the Chinese put rocks in there to hit the number.

Quality being equal, manufacture wherever gives you the highest profit margin.

Manufacture in China if the price/quality/variety/availability suits your needs. Grow bananas in Utah if "muh culture" is important to your organization.

The Original AG 76 said:

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Business Time said:

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That's not something you can say without knowing more about what you are manufacturing, the need for specialized tooling or equipment, the quantities, and how often you will be ordering.

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Alex I'll take questions that can't be answered on some internet forum for $1000....

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Then don't expect anything more helpful than freight sucks.

Why do you say freight sucks? In regards to what?

Freight and duties really, but it depends on your product. You need to figure out the tariff schedule for your product and get a ballpark idea for your landed cost (product cost, duties, overseas (air or boat) freight, and then freight cost to your warehouse. So whatever you buy in China may cost 40% more than your purchase price before you can sell it. Then just hope our longshoreman aren't on strike. Now that may be worth it because many Chinese factories produce high quality goods in sufficient quantities at a good cost. I've made similar goods in the US and China and the Chinese experience has been much cleaner, faster and with fewer headaches, but ymmv

I work for a Chinese company that produces specialty additives for oil field, coatings, surfactants, and now I'm launching an Ag division for them. We supply to several of the major companies that won't put up with off-spec materials. There are a lot of Chinese companies that make excellent, high quality products. Often times with significant savings compared to similar US products. You just have to do your due diligence on the companies.

I'm by no means an expert but I did spend quite a bit of time evaluating contract manufacturers for the start-up I work for.

US vs China... depends on the product and intellectual property involved. If you don't want to get ripped off, then stay out of Asia or just have the "dumb" / non sensitive components of the product made in China. I've seen situations where people entrusted too much IP with their contract manufacturers... Employees from the CM would quit and start a competing business.

TheAggieInventor said:

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Why do you say freight sucks? In regards to what?

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it takes at least 4 weeks to receive anything by boat, but container ship is the cheapest way to transport.

TheAggieInventor said:

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Any advice on this topic in general. Just looking for any stories/recommendations/connections any fellow Aggies may have surrounding this topic as I am very inexperienced on the proper questions to ask, and method of going about picking where to manufacture.

Thank you!

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If it is completely automated manufacturing, you can do it in the US.

Otherwise, look overseas.

To give you better advice, I'd need to know what you are trying to make.

If it is a relatively simple product (esp apparel) look in a duty free country.

China and USA aren't your only options anymore.

moses1084ever said:

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I've seen situations where people entrusted too much IP with their contract manufacturers... Employees from the CM would quit and start a competing business.

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this happens in the US all the time.

moses1084ever said:

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I'm by no means an expert but I did spend quite a bit of time evaluating contract manufacturers for the start-up I work for.

US vs China... depends on the product and intellectual property involved. If you don't want to get ripped off, then stay out of Asia or just have the "dumb" / non sensitive components of the product made in China. I've seen situations where people entrusted too much IP with their contract manufacturers... Employees from the CM would quit and start a competing business.

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What sort of contract terms should there be to prevent this?