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News Release
More Jobs Coming Back to U.S. Due to Layered Issues with Outsourcing
ARMA Design President Finds Reason to Celebrate Labor Day
SAN DIEGO, CA - Monday, August 27, 2007
Outsourcing product design and development has its place, however, these days many consumers are frustrated by recent product recalls and are losing faith in companies that outsource so much of their production to China and other countries.
According to ARMA Design President and Founder Alex McKay, issues such as quality, cost, language and complex designs, are forcing some entrepreneurs to reconsider their outsourcing strategies. "This Labor Day, we have just a little bit more to celebrate," explains McKay. "More jobs are coming back to the U.S. due in large part to the ‘practicality' of designing and developing a new product at home."
From a practical standpoint, McKay says many medium-sized companies in need of design and manufacturing expertise are now returning to the U.S. to explore a domestic solution. ARMA Design is a San Diego-based full service electronic product development company providing design, prototype and in-house manufacturing services.
"Today's product designs, especially those that involve complex electrical circuitry, often need more rigorous product specifications that require real-time problem solving from the entire engineering team," says McKay. "It's not that off-shore can't handle complex product designs, the issues of cost management, language barriers and time zone challenges, often hinder the timely evolution of a product."
McKay also sites the practical issue of "familiarity with the actual product." "If the product is for the American consumer, it makes sense that a U.S. engineer would have a better appreciation for how that product should best work," says McKay.
In a recent article that appeared in Fortune Small Business magazine (August 3, 2007 http://money.cnn.com/2007/07/26/
magazines/fsb/china_sourcing.fsb/), Amber McCrocklin launched Paws Aboard, a line of gear for pet owners who like to take their dogs on their boats. When the orders began pouring in, McCrocklin decided to shift operations to China, which could trim costs by half and give her time to design more products to expand Paws Aboard (www.pawsaboard.com). Then the problems started. The clasps on her life jackets were breaking, the shipments were late and her contact in China was unresponsive. McCrocklin then found a new consultant based in Brooklyn Heights, Ohio, that took over the manufacturing, quality control, and shipping of McCrocklin's dog gear last summer. Her defect-driven headaches faded, and profits improved and "I don't receive late-night phone calls from China anymore."
"Most entrepreneurs bring their product idea to us in a concept stage," he explains. "It's so much easier to flush out an idea and develop a prototype when the designer and engineers are all in the same room."
Outsourcing to countries such as China and India makes the most sense when the product involves a very high volume and the item can be manufactured at a much at a lower cost, McKay believes. "We live in a global economy where one size does not fit all."
ARMA Design, headquartered in San Diego, provides turnkey electronic product design, development and manufacturing services. Founded in 1990, ARMA's mission is to help companies with commercial, consumer and industrial applications turn ideas into reality. For more information about ARMA Design, visit www.armanet.com or call 858.373.1320.
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