Although the lure of low-cost labor is tempting, offshoring production of printed circuit boards can lead a company into a host of problems. Firms can find themselves dealing with increased costs, regulatory hurdles and pitfalls relating to quality control. Here are 10 reasons why:
- Intellectual property: It is very difficult to defend IP piracy abroad. U.S. firms lose 1$ for every $3 gained due to stolen IP.
- Counterfeit parts: This is a huge problem worldwide and out of the companies control. Most companies will find out after the parts have been utilized in their product.
- FDA shipment delays: All products having 510(k) approval must not only meet the FDA regulatory standards, but get FDA clearance in Customs and meet the Bureau of Customs & Border Protection standards. This can create delays of 4 to 8 weeks, with the shipment sitting in U.S. Customs.