The Reshoring Myth
For a Reality Check, Let's Look at Ryder Industries
Reshoring the Myth & the Reality
For those of us like me, who are old enough to remember the late 90's into the early noughties, offshoring became like a mandate for Original Equipment Manufacturers (OEMs). No questions asked, no Total Landed Cost analysis, just 'relocation, relocation, relocation', was the buzz, with secondary to Silicon Valley Headquarters popping up in strategic locations such as Shenzhen, Singapore and Hong Kong.
China became home to competitive high volume, mass manufacturing electronic equipment. It was endorsed by those leading brands, so if that's what they were doing, the start-ups followed. As time went on, the bumps on the road that those of us experienced in the early days smoothed out. The rising wage costs in China that we are all aware of, weren't a bad thing as you were contributing to a higher standard of living, manufacturing experience, quality standard, and less 3am conference calls or long-haul flights for quality checks or 'progress checks.'
Fast forward twenty years and we've found ourselves in a position where electronics manufacturing in China is being questioned, with COVID-19 and the disruptions caused influencing business makers decision to reshore.
Let's Get Realistic
For decades, China has invested in its infrastructure, and is leading the way in terms of smart factory solutions, robotics, automation, ERP, and industry 4.0 to continue to maintain its competitive position. Companies like Ryder Industries have been raised on the mantra of education, learning, development, and continuous improvement. Leadership and management have the experience of coming through the manufacturing boom which provides them with a unique set of skills to deliver optimized design, agility, flexibility, and responsiveness to deal with forecast fluctuations, material and logistic disruptions and the rises and falls in customer demands.
And then we get onto the subject of culture where they haven't ever 'loved and lost', in the way many high-cost locations in Europe or the Americas have. This has resulted in a real 'can-do' attitude where positivity and problem solving prevails. If they find themselves in a position that part of their outsourced Vertical Integration process becomes uncompetitively priced, they will invest in themselves to take that part of the production lifecycle in-house. This is why Ryder Industries boasts impressive skills set portfolio from; PCBA, both SMT and through-hole, screen printing, automated testing, mechanics, enclosures, plastic injection moulding, metal fabrication, to final assembly and casing.
Speed and accuracy have been the big benefits of Ryder's progressive Vertical Integration. Cross-functional issues can be addressed, by walking 30-seconds to an appropriate person, and discussed in an open and trusting environment. New processes are added as customer needs are anticipated and predicted. For example, their latest investment in their colour centre allows Ryder to mix any colour tone precisely to their customer requires, and their calibrated spectrophotometer ensures that it stays in sync with the customer and consistent between batches.
Decades of Manufacturing Leads to Data
Data Drives Decisions
In a data driven world, intelligence matters. By recoding and analysing their production for decades Ryder Industries have built systems, procedures, and processes to enable them to guarantee effectiveness from product concept, to design and development, to mass production. Visibility and traceability are key, and Ryder can track from batch. Experience has gifted them the ability to streamline their manufacturing performance and, in a market where speed and simplicity counts, Ryder Industries are in 100% control of their supply chain, to assure stability.
So, in the same way that many EMS companies seek ISO 13485 certification for the manufacture of medical devices, as this enables them to say, well OEMs trust me with the manufacture of their medical devices, you can trust me with the manufacture of your guitar amplifier, Ryder Industries are saying that if they can effectively deliver in the pressured environment of high volume, you can trust them with your low-to-medium volume, high mix, complex and customised assembly. There aren’t many challenges that they haven’t seen, addressed, and fixed over the years.
In China in general, electronics manufacturing is in their DNA. The country has evolved in this environment, it's what they know how to do, and they do it well. They aren’t culturally jarred, and they aren’t fighting against a tide of negativity. They understand high-volume manufacturing better than anyone else in the world, which means they have a true understanding of how to take their OEM partners from seed to scale efficiently and effectively.
So, when considering reshoring, ask yourself: will this really simplify my supply chain, crucially, will it reduce my risk? If Ryder Industries is your partner, the answer is likely to be no. Your supply chain couldn't be simpler, or better managed, than it is by Ryder's long-term experts in their field. Risky touchpoints are not your concern when Ryder has already successfully taken your product, and many more besides, from point A to point Z, just as it has done daily for decades.
For some, it won't be as clearcut as reshore or offshore, a hybrid solution, 'Smart Shoring', might be best. With the right partner, you can diversify your supply chain, combining the benefits China offers with another location that works for you. to support you, thanks to its longstanding partnership network, Ryder Industries is extremely well-placed help you find the right solution.