I’ve worked with many clients in different industries. Some needs help in developing services, while some in developing products.
The most challenging part in developing a product is finding people with the right skills to make or produce it for you, at reasonable prices that you can afford, and allow you to mark-up and sell at a good margin. Whether the product is software, hardware, or a physical piece such as a luxury, wooden-furniture based on custom design, each has its set of challenges.
Recently, I spoke with a client whose business wishes to have wooden-furniture made in the U.S. He has been having a hard time finding manufacturer who can produce his product at reasonable costs, so that he can offer it to his customers at attractive prices.
After doing some research, I’ve learned why wooden-furniture making does not make economic sense to be produced in the U.S. A lot of the wood-work skills have been transferred to offshores since the 1990’s, where countries such as China, Vietnam, Indonesia, and the Philippines have gained grounds because of the low-skill, high labor-intensive product that they think they can compete in.
This article says it all and it’s well worth a read. While US wooden furniture makers retain part of the production here in the U.S., it’s still sad that we no longer see products that are 100% made in the U.S. In the case of furniture, parts of the furniture are being built outside of the U.S., where US workers put on finished touches such as custom upholstery on the furniture the way customers want them.
Although my client is experiencing some difficulties in finding furniture manufacturer who can make his product in the U.S., he wants to offer some sage advice for new comers:
1) Think of your manufacturing and cost trade-offs by having it done here in the US vs. overseas
2) Be more hands-on with your sourcing supplier. Develop and build relationship with the local sourcing agent and the manufacturer will help you get your products sooner than later.
3) Make sure you ask for sample of their work especially if your product is tangible, where touch, feel and comfort are important.
4) Plan to extend your product development time from the “normal” throughput, and multiple that by 2 or 3 times for final delivery
5) If you have another source of income, have reserve ready so you can live through the waiting period while your product is being developed.
If you would like to pursue having products made overseas, check out export.gov, Department of Commerce’s website, and look for the country where you can find the skills to develop your product. Download a copy of the Country Commercial Guide so you know how connect with people who do business there. Find your local sourcing agent through your connection with local businesses who might be making something similar to yours, and not as a direct competitor. Hopefully, you can re-engineer the process, and find the right manufacturers to help you produce your product.
We hope that by writing this blog, we are elevating some of the struggles that small businesses or entrepreneurs are encountering with respect to wanting products made in the US, and for economic reasons, cannot accomplish that goal due to the challenges mentioned here. We also hope this blog would inspire conversations on how to address this problem instead of solving it in the round-about way.
Sources: 1) American Products International, June 2018
2) https://www.pri.org/stories/2018-05-02/north-carolina-s-fight-keep-its-foothold-furniture
