Working with a new, faraway PCB contract manufacturer (CM) without in-person reassurance can also present challenges that only arise once production is in full swing.  With a local CM, it’s easier to collaborate to improve production schedules, quality, and cost quickly.  For a new product introduction (NPI), a local CM can also steer first-time products or even designers through the manufacturing process to encourage innovation in prototyping.  As with all engineering, there’s always a trade-off, but design teams may be pleased to learn of the many advantages inherent to a local PCB manufacturer.

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Advantages of Working with a Local CM

Ease of research. 

Geographical proximity allows for confidential inquiries with industry peers into a potential CM’s production history, management style, production strengths and weaknesses, and company integrity.

Collaborate proximally. 

Opportunities for in-person introductions, contract negotiations, and spontaneous design review meetings.  Engineers are available on short notice for hands-on troubleshooting, sometimes enabling same-day issue resolution.

Personalize oversight. 

A company’s engineering and quality assurance teams can oversee the first production runs.

Quicker turnarounds.

Expect quicker turnarounds for revised design schematics to reduce overall lead time.  An NPI could be received the same day it finishes testing.

Enhance communication.

Rapid communication to the CM is possible if design constraints or production volumes change.

Streamline design. 

Since CMs charge OEMs for engineering change orders after production commences, a local CM with engineering services can circumvent change orders by participating in pre-production design.

Procurement. 

Local CMs’ contacts with suppliers allow them to have high-quality components ready in advance, knowledge in forecasting, agility in meeting production needs, and thorough testing procedures.  With increased lead times and sourcing for components remaining an issue in 2023 as global supply builds back up to pre-pandemic levels, a CM’s ability to provide components has taken on an even greater significance.

Reliable delivery.  

Shipping via ground travel is affordable with a low risk of product damage — no expensive overseas shipping costs, no cargo insurance, and no tariffs.

Disadvantages of Working with a Local CM

Labor costs. 

Labor costs will be higher when working with a domestic CM.

Taxes. 

Utilities and tax expenses are likely to increase over common overseas CM locations.

Shipping expenses. 

A product marketed and sold abroad is a better fit for international manufacturing.

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