Companies that need an efficient, cost-effective way to launch new injection molded products still rely heavily on contract injection molding manufacturing in China. About thirty years ago, US companies started doing contract manufacturing with China and learned that doing business in China requires careful navigating, especially in the manufacturing sector.

Businesses attempting to do business in this foreign market can suffer catastrophic consequences if they fail to understand the nuances of language, culture, and regulations. When outsourcing injection molding to China, be aware of these considerations.

PLAN DE COMMERCE

Having a sound business plan or at least a break-even analysis of your injection molding product/project is helpful before setting out on your journey of finding a manufacturing partner. Manufacturing partners do not need to see this entire plan, but rather it acts as a demonstration of your understanding of your category and the market potential. By extending courtesy and foresight to injection molding partners, you can accomplish a great deal. For a company to establish credibility with partners like factory owners and bosses, forecasts and projections of anticipated product volumes should be quantified and backed up.

You can demonstrate your injection molding product knowledge by building a product deck. Included in this deck are:

The story behind the product and how it fills a void and is unique
3D renderings that are professional
Details of the materials
Affects final grades
Secondary and primary packaging
Testing requirements for fit and function
The initial run of the volume and the annual volume

CONCEPT

An essential part of injection molding design is considering the manufacturing process (DFM). It is often not feasible for factories to manufacture products that are not designed accurately, which requires reworking the design. It is also possible to reduce the cost of tooling by simplifying designs. When a designer is aware of how his or her designs affect aspects of injection molding manufacturing and can provide his or her manufacturer with 3D drawings and material specifications on primary/secondary packaging, the process of taking a design to production can be streamlined.

INVESTING IN A MANUFACTURER

Due to the large number of injection molding factories in China manufacturing an extremely wide variety of products, it can be difficult to find a reliable, efficient, and cost-effective manufacturer. A direct connection to fully audited, qualified suppliers should be the goal. Tools, samples, on-site manufacturing oversight, quality control, and logistics should be handled on site by boots on the ground. Having a bilingual team is critical.

Alibaba and other online tools are useful, but they rarely suffice because communication can be challenging and scammers are everywhere.

The vetting process is one of the most important ways to ensure a China injection molding factory can meet production demands and has reliable management. Among them are:

What kind of records do they keep about communication and production equipment?
What are the company’s current products and markets?
Approximately how many employees are there at the factory? When was it founded?
Having experience, a wide network, and local knowledge, supply chain managers and consultants are able to assist in locating factories and forming partnerships.

ASSURANCE OF QUALITY

In the beginning of your injection molding project you need to take steps to ensure that (a) a factory uses quality assurance processes and (b) all lots of production are checked for quality control before shipments are shipped. For fit/finish, dimensions, and tolerances as well as specific performance criteria, it is important to have pass/fail requirements. A quality manual would be a good place for this to be documented. The injection molding cost of receiving a large order of products and then finding out the products are of poor quality can be extremely high. Consider working with a sourcing agent overseas to minimize such costly blunders, or have “boots on the ground” to oversee shipments before they ship.

PROTECT IP/DOCUMENTATION

Because of China’s differing business laws and regulations, it is inherently riskier to work with Chinese injection molding manufacturers. Make sure your trademarks are registered in the countries where your products are produced. Should your product be released in that marketplace, whether retail or online, it has no chance of getting favorable judgment. It is common for intellectual property to be stolen. When IP needs to be protected, it can be difficult to maintain confidentiality even in the presence of a non-disclosure agreement (NDA) with a Chinese injection molding contract manufacturer.

DIVERSIFY

In terms of manufacturing, China remains the world’s largest economy, but many companies are shifting production to other regions, such as South East Asia. Divulging supply chains strengthens them by providing an insurance policy in case of (1) a major problem with a primary supplier in China or (2) an increase in price. There was a time when the COVID-19 pandemic and the trade war between the U.S. and China demonstrated how vulnerable businesses can be if they rely too much on China. In the current state of the auto industry, small disruptions are causing critical supply issues.

Communication

Chinese injection molding manufacturing partners may have difficulty communicating with you because of language barriers and a 12 hour difference in time. Although most factories have bilingual capabilities, details can often get lost in translation. Consult a supply chain expert or a China sourcing agent to minimize this risk. Relationships that are positive and sustainable have lower risks and fewer disagreements.