Is China Still the Best Answer for Electronics Manufacturing?

China has long been the hub of world-class electronics production. However, rising trade tensions, PCB tariffs, political shifts, increasing wages, and growing concerns about intellectual property (IP) protection have made many companies question if China remains the optimal choice for electronics manufacturing. The demand for China electronic products and services still exists, but new factors are pushing companies to explore alternatives.

The U.S. government is actively encouraging domestic manufacturing, while countries across Europe are reconsidering their dependency on China's electronics market. The global electronics industry is seeing a shift, with more companies looking for shorter, regionalized supply chains that bring manufacturing closer to both their design teams and customers.

There’s a growing consensus that shorter supply chains and closer connections between design and manufacturing are valuable, plus that China simply isn’t as cheap as it used to be. It’s easy to see why two words are on the lips of every purchasing or supply chain professional: regionalization and agility. Companies need more agile manufacturing relationships as well as procurement and execution processes closer to their design and their customers.

But switching from China electronics manufacturing to more localized production is a complex task impossible to achieve overnight. MacroFab and other forward-thinking companies have pioneered manufacturing solutions that address these challenges.

Read about the advantages of a China plus one strategy now.

MacroFab and other forward-thinking companies have pioneered manufacturing solutions that address these challenges. Through a secure online platform, MacroFab offers access to a network of North American pre-vetted contract manufacturers. These manufacturers bring a wide array of capabilities, making it easier for companies to find specialized skills, equipment, and expertise closer to their primary markets. Vetted companies offer a broad range of skills, equipment, and expertise to meet the requirements of even the most complex systems.

“The key to our success is perfectly matching supply and demand for electronics manufacturing,” said Misha Govshteyn, MacroFab CEO, adding “when one of our customers uploads their CAD and BOM files, our platform is able to interrogate that data and create a quote. Meanwhile, it is selecting which of our manufacturing partners is most suited to that order’s technology requirements, volume, and speed.”

Learn more reasons why electronics manufacturing is returning to North America.

These Manufacturing-as-a-Service (MaaS) platforms seek to improve both CMs and OEMs. CMs, get the jobs that suit them based on their specializations and capabilities. And OEMs get their job done at the ideal factory based on their requirements, all with the benefit of a single point of contact and a guarantee of workmanship.

With thousands of quotes and orders flowing through these platforms, their AI becomes increasingly intelligent and better able to find the right manufacturing fit. They also become smarter and more able to price a job from the data, meaning the buyer can get instant quotes, which they can adjust for volume and delivery while seeing the impact on pricing.

So, companies that have been using traditional purchasing methods and working with traditional EMS providers now have another option. They can now upload their data, get immediate pricing, and tweak those quotes for volume and delivery to arrive at their best solution. They can then place that order online, securely, with genuine peace of mind. This is in stark contrast to the traditional back and forth with multiple vendors and wading through complex quotes trying to compare like with like.

For companies needing to move their production away from Chinese electronics manufacturing, quickly and painlessly, these reasons provide the ideal solution. Onshoring and MaaS don’t just solve the short-term need to transplant manufacturing to a tariff-friendly location, they create an agile and flexible solution reflective of the digital world we live in. The benefits of reshoring include avoiding import tariffs, reduced lead times and shipping costs, and increased oversight and control of your production processes.

In some cases, it’s as simple as setting up a protected account, uploading files, and getting your order placed. For others, it is more complex. Companies with a portfolio of products, complex system build, custom test requirements, and many suppliers, need a white-glove service. They need a MaaS provider who will take a lot of manufacturing packages off their desk and get the data into their platform, quoted and ready for purchasing quickly and effectively. Such companies now exist.

If you’re currently getting products made in China, or you just want a more agile and dynamic solution, you can sign up for a protected account with MacroFab to get started. Our dedicated Sales team is here to prepare a quote for high-volume orders. You’ll be surprised by how simple and intuitive getting a quote with MacroFab is and you’ll wonder why you ever purchased manufacturing any other way.