The "O" Word: Let's Talk About Outsourcing

If you’re a customer of Amerascrew, you’ll know that we are proud to produce American-made parts. In fact, our website states, “Don’t go overseas when the quality your business needs is right in your own backyard!”

So why do so many companies these days send jobs overseas to manufacture products in warehouses in places like China and India? Let’s take a look at some of the pros and cons of outsourcing.

First, manufacturers can find much cheaper labor costs in countries where the living wage is much lower than that of the United States. Avoiding high operating expenses of course means that money is being saved.

Second, outsourcing plays a big role in the globalization of a company, and may even create international business allies in developing countries where these jobs are being created.

Another benefit of outsourcing is that when so-called “simple” jobs such as assembly are done overseas, the home company can redirect time and energy into the high-dollar administrative tasks or those focus areas that require more expertise.

However, many people, ourselves at Amerascrew included, believe that outsourcing takes too much away from the middle class American man (or woman) and our history of quality production. It creates a huge loss of jobs here when our own people struggle too often with unemployment!

When manufacturing is outsourced to another country, that country’s laws regarding labor and the environment are not necessarily the same as ours, so ethical issues like pollution and child labor might fall through the cracks, unfortunately.

These are just a few cons of outsourcing. What do you think? Is it a smart business practice? Click here to learn more about how Amerascrew can offer you American quality for your industry.