5 ms·

I really would like an alternative to Shenzhen for cheap manufacturing. Does anyone here have experience with factories located elsewhere?

by Iv 7y ago

syedkarim 7y ago
I regularly quote PCBAs in different countries. If you are looking for any place as cheap as China, I can't say that such a place exists. The only way that the math works out is by building the product yourself with a cheap SMT line. Using a domestic CM is a non-starter for a low-margin consumer product.
- Iv 7y ago
  That's for ideological reasons that I am looking for an alternative. I am just wondering what would be the additional cost. Is that more than 2x the cost?
  - syedkarim 7y ago
    I've found the domestic premium too be anywhere from 3X to 10X. It really depends on how much is being done. We sometimes build antennas, which are single layer PCBs. The cost-delta at production volumes is about 3X. On a circuit board assembly I've paid 15x more to build in the US, where the turnaround time was significantly slower and production yield was worse. This is CM-specific, of course.
baybal2 7y ago
Have experience in Vietnam. Some clients been asking for manufacturing there, but often get surprised that it will both be harder and cost the more than in China. Still some persist, and do that. You have to effectively import everything from China, and just do final assembly there. I see close to no point doing that when local inputs cannot reach even 10% of the value.
- syedkarim 7y ago
  Just confirming your 10% figure. Across a dozen or so products I've been involved with, the actual labor/SMT assembly costs have been about 10% of the total BOM (bill of materials). Very roughly the cost per component-placement is about 1-cent (USD). My quoted labor rates are about $7/hour, though I see $15/hour at a lot of other factories (and warehouses).
- Iv 7y ago
  Do you know if there is any decent plastic molding industry in Vietnam? I have something that needs off the shelf electronics (may buy them in China) but will have to meet manufacturers in person for the final assembly and plastic casing, which on a small series is probably going to be a sizeable portion of the cost (and seriously, that's more about ideology than cost anyway).
  - syedkarim 7y ago
    For plastic mold injection it's less about the infrastructure and more about how competent and reliable the supplier is. Circuit board assembly requires parts to be sourced. With plastics it's possible to be more logistically self-sufficient. You should be able to find what you need in Vietnam, but unfortunately I can't point to any specific sources.
  - baybal2 7y ago
    Even ordinary quality level plastics parts can often be easier to import from China there, moreover now. Even things like plastic bathtubs is a challenge at the moment. Not many options for small businesses there other than to work with garage factories, with all resulting complications. I will be glad to get in touch with you if you really need to make it there, and you are really ready to pay. For a project under $100k you will likely pay a fee from 10% to 20%. Disclaimer, this is not a binding commercial offer

I really would like an alternative to Shenzhen for cheap manufacturing. Does anyone here have experience with factories located elsewhere?

by Iv 7y ago

I really would like an alternative to Shenzhen for cheap manufacturing. Does anyone here have experience with factories located elsewhere?

syedkarim 7y ago

I regularly quote PCBAs in different countries. If you are looking for any place as cheap as China, I can't say that such a place exists. The only way that the math works out is by building the product yourself with a cheap SMT line. Using a domestic CM is a non-starter for a low-margin consumer product.

Iv 7y ago
That's for ideological reasons that I am looking for an alternative. I am just wondering what would be the additional cost. Is that more than 2x the cost?
- syedkarim 7y ago
  I've found the domestic premium too be anywhere from 3X to 10X. It really depends on how much is being done. We sometimes build antennas, which are single layer PCBs. The cost-delta at production volumes is about 3X. On a circuit board assembly I've paid 15x more to build in the US, where the turnaround time was significantly slower and production yield was worse. This is CM-specific, of course.

baybal2 7y ago

Have experience in Vietnam. Some clients been asking for manufacturing there, but often get surprised that it will both be harder and cost the more than in China. Still some persist, and do that. You have to effectively import everything from China, and just do final assembly there. I see close to no point doing that when local inputs cannot reach even 10% of the value.

syedkarim 7y ago
Just confirming your 10% figure. Across a dozen or so products I've been involved with, the actual labor/SMT assembly costs have been about 10% of the total BOM (bill of materials). Very roughly the cost per component-placement is about 1-cent (USD). My quoted labor rates are about $7/hour, though I see $15/hour at a lot of other factories (and warehouses).
Iv 7y ago
Do you know if there is any decent plastic molding industry in Vietnam? I have something that needs off the shelf electronics (may buy them in China) but will have to meet manufacturers in person for the final assembly and plastic casing, which on a small series is probably going to be a sizeable portion of the cost (and seriously, that's more about ideology than cost anyway).
- syedkarim 7y ago
  For plastic mold injection it's less about the infrastructure and more about how competent and reliable the supplier is. Circuit board assembly requires parts to be sourced. With plastics it's possible to be more logistically self-sufficient. You should be able to find what you need in Vietnam, but unfortunately I can't point to any specific sources.
- baybal2 7y ago
  Even ordinary quality level plastics parts can often be easier to import from China there, moreover now. Even things like plastic bathtubs is a challenge at the moment. Not many options for small businesses there other than to work with garage factories, with all resulting complications. I will be glad to get in touch with you if you really need to make it there, and you are really ready to pay. For a project under $100k you will likely pay a fee from 10% to 20%. Disclaimer, this is not a binding commercial offer