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The Added Costs of Offshore Sourced Zinc Die Castings

Many cost conscious buyers are looking at offshore sourcing for their zinc die castings. These buyers fail to appreciate the "hidden costs" associated with offshore procurement of zinc die castings, including:

 

 

 

 

Market Share Risk

Providing detailed product information may result in the creation of new competitors for your products. These new competitors may have access to your marketing information, product specifications, and in some instances, your tooling.

Technology at Risk

It is dangerous to reveal your secret technology to an offshore supplier. Your technology could end up in the hands of a competitor-at home or abroad.

Miscommunication

Communicating with overseas suppliers can be difficult. Language, cultural, and distance barriers often result in miscommunication, making die design changes and their proper implementation difficult.

Long Lead Times

Long offshore production lead times and delays are common due to the distance factor.

The Price of Die Failure

Low die costs are often achieved with the use of uncertified and untreated die steel. There are no guarantees on tool life, and the cost of premature die failure is high.

 

Legal Liabilities

Low price is often achieved by cutting corners. The use of uncertified, off-spec alloy often is the key to the lower prices offered by offshore die casters. This factor can expose manufacturers to product failures when these low cost components are incorporated in products.

Payment Sight Unseen

Many offshore producers have advance payment requirements, but you have no right to review shipment quality or quantity before payment is made.

The Uncertain Value of The Dollar

We live and work in a global economy that exhibits constant fluctuations in the value of currency, Long term planning based on a constant value of US currency is impossible.

Summary

Some things are "too good to be true." Many manufacturers who have been tempted by the low prices of offshore die castings have had unpleasant surprises as their projects unfold. When all of the potential "hidden costs" are added up, many manufacturers realize that domestic production of their die castings is still their best value. If consistent quality, predictable price, and flexibility in your manufacturing processes are valuable to you, consider made in the USA zinc die castings from Creco Cast.