Contract Manufracturing blog

Is India Ready to Transform into a Global Manufacturing Hub?

Contract Manufacturing

India’s contract manufacturing sector is experiencing a remarkable surge, poised to challenge China’s long-standing dominance in global manufacturing. The Indian contract manufacturing market is projected to grow from $19.63 billion in 2023 to $38.92 billion by 2028, representing a robust 14.67% compound annual growth rate (CAGR). This rapid expansion is being driven by a confluence of factors, including favorable government policies, technological advancements, and shifting global supply chain dynamics.

High-Profile Investments and Strategic Partnerships:

India’s potential as a manufacturing hub has not gone unnoticed. Tech giants like Apple and Cisco have already announced plans to expand their manufacturing operations in the country, with Apple aiming to produce 25% of its products in India eventually. Additionally, Indian conglomerate Vedanta Group has signed agreements with 20 South Korean display glass companies to create a manufacturing hub in the country. These high-profile investments, coupled with India’s large domestic market, skilled workforce, and favorable government policies, have made the country an increasingly attractive destination for contract manufacturing.

Government Policies and Technological Advancements:

Favorable government policies have played a crucial role in propelling India’s contract manufacturing sector. Initiatives such as the Make in India campaign, production-linked incentives (PLI) schemes, and infrastructure development projects have created a conducive environment for manufacturing growth. Technological advancements in automation, artificial intelligence, and IoT are further enhancing India’s manufacturing capabilities, making it a competitive alternative to China.

Shifting Global Supply Chain Dynamics:

The COVID-19 pandemic and subsequent global supply chain disruptions have prompted companies to reassess their manufacturing strategies. As Hanish Bhatia, an associate director at Counterpoint Research, explains, “What has happened during the pandemic is companies, now, have started looking at alternate places just to hedge their risk. They have started looking at more places. India has an advantage over other countries because of the large domestic market itself.” This shift in global supply chain dynamics is driving more companies to explore India as a viable manufacturing destination.

The Future of India's Contract Manufacturing Industry

The future of India’s contract manufacturing industry looks exceptionally bright. With the sector’s blend of global collaborations, support from government initiatives, technological advancements, and strategic market maneuvers, India is poised to emerge as a formidable challenger to other Asian countries’ long-standing dominance in global manufacturing. By leveraging its strengths in raw materials, manufacturing expertise, and a burgeoning domestic market, India is well-positioned to capture a larger share of the global manufacturing landscape, potentially reshaping the dynamics of the industry in the years to come.

As the world continues to grapple with supply chain disruptions and geopolitical uncertainties, India’s contract manufacturing industry stands as a hope of stability and growth. The country’s rapid expansion in this sector, fueled by favorable policies, strategic investments, and technological advancements, positions it as a significant player on the global stage. India’s contract manufacturing sector offers a promising alternative in the evolving global manufacturing landscape.

AUTHOR

Sriram Parthiban

Business Analyst, Srushty Global Solutions

Meet Sriram, a visionary business analyst in India’s dynamic contract manufacturing sector, dedicated to serving discerning clients throughout the USA. With strategic expertise and a sharp focus on optimizing supply chains, Sriram is driven to elevate India’s manufacturing prowess on the global stage. His goal is to position India not only as a leading manufacturer for the world but also as a pioneer in setting new benchmarks for quality and innovation, shaping a revolutionary industry landscape.

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Injection-molding-blog

Can Selecting the Right Fastening Method for Plastics Change the Product Outcome?

Contract Manufacturing

When it comes to assembling molded plastic parts, selecting the right fastening method is crucial for ensuring the structural integrity and functionality of the final product.  In this blog, we will explore various fastening options available for joining molded plastic parts and discuss the economic considerations associated with each method.

Snap Fit Assembly:

Snap fits are a cost-effective method of joining plastic parts, especially if side pulls can be avoided in the mold.  Proper design of snap-fit features is essential to prevent overstressing the plastic snap fingers.  Accommodations for self-tapping screws are recommended as a backup in case one of the snaps breaks.  Disassemble is possible but limited in frequency depending on how robust the snap feature design is.  Several good Snap Fit Design Guidelines are available online.  Some manner of locating features (i.e. a boss in a hole) are suggested to resist lateral movement, dynamic loading after assembly.

L shaped cantilever

Snap Fit Feature

Consider a PWBA mounted to a molded plastic chassis. If the electrical connectors are all on one side, they will locate the PWBA in one direction. Depending on board size, three to six snap features will retain the board against the chassis, more if vibration is an issue. Molded stops, ribs or locating features prevent the PWBA from shifting on the chassis. As a PWBA is often a service item, it may require removal from the chassis. In the event of broken snaps, it is prudent to place holes in the board and molded screw bosses adjacent to the snap features to accommodate thread-forming plastic screws as a back up.

Thread Forming Screws:

Thread forming screws, (such as PlastiteTM) into molded holes in the mating part are suited for any production volume when a tight fit is required.  Assembly tooling, such as a hand-held electric torque gun, is inexpensive, but the dynamic torque must be carefully controlled to avoid stripping the threads out of the molded boss.  Either the screw thread ODs or molded pins fitting into holes and slots, can be used to locate the parts relative to each other.  Thread forming screws are ideal for applications where parts are to be disassembled only a limited number of times, usually 2 to 4.  Avoid Thread cutting screws in plastic as they produce a chip.

Hand Held Electric Torque Gun

Hand Held Electric Torque Gun

Thread Rolling _ Forming Screw

Thread Rolling / Forming Screw

Access Panel with Locating Slots

Access Panel with Locating Slots

Consider locating an access panel or machine cover. Use snug fitting tabs in slots (one narrow locator slot and the rest widder) to position the panel in one direction and secure it against the mating part so that it won’t rattle. Use Thread Forming Screws A/R to secure the edges of the panel or cover.  One of the screws should fit thru a narrow hole to complete the panel or cover alignment (in conjunction with the tab in a low clearance slot).  The remaining screws fit thru clearance holes in the panel.  Be cautious not to strip the threaded bosses when the screws are removed and reinserted.  This is usually limited to 2 to 4 removals.

Machine Screws and Threaded Inserts:

Machine screws into threaded metal inserts are appropriate for applications that require frequent disassembly.  Part to part location protocol is similar to that used for thread forming screws.  This method is not suited for recycling due the metal inserts not being regrind friendly.  If the inserted part is designed so that the inserted feature can be easily snapped off, recycling is enabled. 

Threaded Insert in Plastic

Threaded Insert in Plastic

All of the same locating and fastening protocols apply as discussed with Thread Forming Screws, except, the molded bosses contain metal threaded inserts. These are required when multiple screw removal and replacements are required! If the inserted plastic part design can be adapted to allow for the plastic containing the insert to be snapped off of the part, then it will facilitate regrind for recycling.

Ultrasonic Welding:

Ultrasonic welding of plastic parts provides a permanent assembly.  While this method may involve higher initial equipment costs, it becomes less significant as the production volume increases.  Ultrasonic welding is an ideal choice for applications where a permanent and robust assembly is required.  Self-locating features are required to position the parts correctly, possibly incorporated into the ultrasonic welding features.  Flash may be visible from the melted plastic.  Most commonly used thermoplastics can be ultrasonically welded.  Avoid welding of dis-similar materials.

Selected Ultrasonic Welding Options

Selected Ultrasonic Welding Options

Consider an inseparable assembly of a box with a lid. Because they are separate parts, various features can be molded into the box and lid interior. Many options are available for a flush lid design. A flanged lid, similar to a manhole cover geometry, is quite common and very practical.

And the appropriate placement of the energy directors, triangular sections that concentrate the US Energy and melt to form the welded joint, would direct flash, if any, toward the inside of the box. The result is an inseparable, sturdy torque tube box. There are several good Ultra Sonic Welding Guide Lines available on line.

Economic Considerations:

When selecting a fastening method for molded plastic parts, it is essential to consider both assembly and part costs.  Snap fits are the most cost-effective method, provided that side pulls in the mold can be avoided.  Thread forming screws are suitable for any production volume, while machine screws and threaded inserts are ideal for applications that require frequent disassembly.  Ultrasonic welding, although involving higher initial equipment costs, provides a permanent assembly and becomes more economical as the production volume increases, provided dis-assembly is not required.

In conclusion, the selection of a fastening method for molded plastic parts should be based on the specific requirements of the application, including the frequency of disassembly, production volume, and the need for a permanent assembly.  By carefully evaluating the economical and functional aspects of each fastening method, manufacturers can ensure the successful assembly of molded plastic parts while optimizing costs and performance.

AUTHOR

Srushty Subject Matter Experts

Henry T. Bober

Subject Matter Expert, Srushty Global Solutions

Henry is a seasoned Mechanical Design Engineer with 40 years at Xerox Corporation, specializing in Product Development, Cost-Effective Design, and Technology Development. He holds degrees from West Virginia University and the University of Rochester and has 35 patents to his name. After retiring, he founded Fast Forward Engineering, consulting for clients like Xerox, Diebold, NCR, and Siemens Medical Products. Now a Subject Matter Expert at Srushty Global Solutions, Henry lives in Fairport, NY, with his wife Leslie and their pets. He enjoys Western-style horse riding, Japanese garden landscaping, woodworking, naval warfare history, and animal welfare advocacy.

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Contract-Manufacturing-Quality-and-Delivery_1

Cost and Delivery Optimization in Manufacturing – How to Achieve the Right Balance?

Contract Manufacturing

Introduction

Contract manufacturing has been a pivotal part of our business strategy. While it offers cost savings and flexibility, it also presents challenges related to quality and delivery. To achieve the baseline quality and delivery performance, we planned to work closely with suppliers.  In this blog post, I’ll share my experiences and strategies for achieving the balance.

Quality Performance

The Challenge

When we decided to outsource manufacturing, we knew that maintaining product quality would be critical. However, giving up direct control over the production process was a significant risk.

Strategies for Improvement

  1. Clear Expectations: We communicate our quality requirements explicitly to our suppliers. Frequent product inspections and audits help reinforce these standards.
  2. Continuous Vigilance: Regular monitoring of the manufacturing process at the supplier’s end is essential. We identify areas for improvement and collaborate with our suppliers to address any deviations.
  3. Shared Understanding: We work hard to ensure that our suppliers understand our specific quality needs for each delivery. Transparency fosters alignment and ensures consistent results.

Delivery vs. Quality

Striking the Balance

Balancing quality and delivery timelines is like walking a tightrope. Sometimes, pushing for top-tier quality may lead to delays. On the other hand, compromising delivery schedules for quality isn’t always feasible.

Our Approach

  1. Prioritization: We evaluate each situation individually. Some deliveries warrant prioritizing quality, while others require timely fulfilment.
  2. Open Dialogue: Effective communication with our suppliers is key. We discuss trade-offs and collaborate on solutions that strike the right balance.
problem-solving-wheel-new

Supplier Improvement: A Learning Journey

Learning from Mistakes

  1. Iterative Learning: Mistakes happen, even with the best suppliers. The key is to learn from them and prevent their recurrence. Continuous improvement is our mantra.
  2. Systematic Evaluation: We assess our suppliers based on QCD (Quality, Cost, Delivery) parameters. Regular audits and supplier rating cards help us identify areas for enhancement.

Building Strong Partnerships

Contract manufacturing isn’t just about outsourcing—it’s about building strong partnerships. By emphasizing clear communication, vigilance, and supplier improvement, we maximize the benefits while maintaining quality and meeting delivery commitments.

Remember, it’s a journey—one where we learn, adapt, and grow together.

AUTHOR

Arun Kumar V

Senior Engineer - QA/QC, Srushty Global Solutions

Certified Six Sigma Green Belt Quality Engineer with extensive experience in CNC machining, assembly, fabrication, and special processes such as powder coating and anodizing. Proficient in IATF 16949 and ISO 9001 auditing standards, with proven expertise in establishing and maintaining Quality Management Systems (QMS).

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Alternatives to China for Manufacturing

5 Global Alternatives for Contract Manufacturing – A Guide for Businesses

Contract Manufacturing

Looking to diversify your manufacturing operations outside of China? This comprehensive guide is tailored for business owners seeking alternative manufacturing locations. From Vietnam to Mexico, we’ll explore the benefits and drawbacks of various countries, helping you make an informed decision for your business.

Introduction to Manufacturing Alternatives

As global supply chains continue to evolve, many businesses are looking to diversify their manufacturing operations outside of China. The need for diversification has become increasingly apparent due to various factors such as rising labor costs, trade tensions, and the need for greater supply chain resilience. Exploring alternative manufacturing locations can offer numerous benefits for businesses, including cost savings, reduced lead times, and access to new markets.

Benefits of exploring alternative manufacturing locations

  1. Diversification of Supply Chain: By manufacturing in multiple countries, businesses can reduce the risk of disruptions to their supply chains, ensuring continuity of operations even in the face of geopolitical or economic challenges.
  2. Lower Labor Costs: Many alternative manufacturing locations offer lower labor costs compared to China, allowing businesses to achieve cost savings without compromising on quality.
  3. Access to New Markets: Setting up manufacturing operations in alternative locations can provide businesses with access to new markets and trade agreements, enabling them to expand their customer base and reach new opportunities.

India

Overview of India's manufacturing industry

India has a diverse manufacturing sector, with strengths in pharmaceuticals, electronics, automotive, and textiles. India’s electronics exports to the U.S. saw significant growth, reaching $6.6 billion from January to September last year, up from $2.6 billion during the same period in 2022, as reported by Pankaj Mahindroo, chairman of the India Cellular and Electronics Association, in a LinkedIn post.

The country’s large consumer market and growing middle class make it an attractive option for businesses looking to establish a manufacturing presence in South Asia.

Advantages of manufacturing in India

  1. Large Consumer Market: India’s large and growing consumer market offers businesses significant market expansion and growth opportunities.
  2. Skilled Workforce: India has a large pool of skilled workers, particularly in engineering, technology, and manufacturing, making it an attractive option for businesses with specialized manufacturing needs.
  3. Government Initiatives: The Indian government has launched various initiatives to promote manufacturing, including incentives for foreign investment and efforts to improve the ease of doing business.
  4. Digital infrastructure: The last decade has seen tremendous growth in India’s digital landscape offering significant efficiency in operations.

Challenges and drawbacks of manufacturing in India

  1. Infrastructure Constraints: India’s infrastructure, particularly in terms of transportation, energy, and logistics, can pose challenges for businesses looking to establish manufacturing operations.
  2. Bureaucracy and Red Tape: Navigating India’s bureaucratic processes and regulatory environment can be complex and time-consuming for businesses unfamiliar with the local landscape.
  3. Labor Laws: India’s labor laws and regulations may pose challenges for businesses, requiring careful consideration and compliance measures.

Vietnam

Overview of Vietnam's manufacturing industry

Vietnam has emerged as a popular destination for businesses looking to diversify their manufacturing operations. The country has a well-established manufacturing sector, particularly in electronics, textiles, and footwear. Vietnam’s strategic location in Southeast Asia also makes it an attractive option for businesses looking to access the ASEAN market.

Advantages of manufacturing in Vietnam

  1. Competitive Labor Costs: Vietnam offers lower labor costs compared to China, making it an attractive option for businesses seeking to reduce manufacturing expenses.
  2. Strategic Location: Vietnam’s proximity to major Asian markets and its participation in free trade agreements make it an ideal location for businesses looking to expand their reach.
  3. Government Incentives: The Vietnamese government offers various incentives to attract foreign investment, including tax breaks and streamlined administrative procedures.

Challenges and drawbacks of manufacturing in Vietnam

  1. Infrastructure Limitations: While Vietnam’s infrastructure has been improving, there are still challenges related to transportation, logistics, and energy supply that businesses need to consider.
  2. Skilled Labor Shortages: Finding skilled workers in certain industries can be a challenge in Vietnam, particularly in specialized manufacturing processes.
  3. Regulatory Environment: Navigating Vietnam’s regulatory environment and business practices may pose challenges for businesses unfamiliar with the local landscape.

Mexico

Overview of Mexico's manufacturing industry

Mexico has long been a key player in global manufacturing, particularly in automotive, aerospace, and electronics industries. Its proximity to the United States and participation in trade agreements such as the USMCA make it an attractive option for businesses looking to diversify their manufacturing operations.

Advantages of manufacturing in Mexico

  1. Proximity to the United States: Mexico’s proximity to the United States offers logistical advantages, including shorter lead times and reduced transportation costs for businesses serving the North American market.
  2. Skilled Workforce: Mexico boasts a skilled labor force with expertise in various manufacturing processes, making it an attractive option for businesses with specialized manufacturing needs.
  3. Trade Agreements: Mexico’s participation in trade agreements provides businesses with access to a large consumer market and favorable tariff arrangements.

Challenges and drawbacks of manufacturing in Mexico

  1. Security Concerns: Certain regions of Mexico may pose security concerns, requiring businesses to carefully assess the location of their manufacturing operations.
  2. Regulatory Compliance: Navigating Mexico’s regulatory environment, including labor laws and customs procedures, can be complex for businesses unfamiliar with the local landscape.
  3. Infrastructure Challenges: While Mexico has made significant investments in infrastructure, there are still challenges related to energy supply, transportation, and logistics in certain regions.

Thailand

Overview of Thailand's manufacturing industry

Thailand has a well-established manufacturing sector, particularly in industries such as automotive, electronics, and food processing. The country’s strategic location in Southeast Asia and its participation in free trade agreements make it an attractive option for businesses looking to access the ASEAN market

Advantages of manufacturing in Thailand

  1. Strategic Location: Thailand’s strategic location offers businesses access to the ASEAN market and proximity to major Asian economies, providing market expansion and trade opportunities.
  2. Skilled Workforce: Thailand boasts a skilled labor force with expertise in various manufacturing processes, making it an attractive option for businesses with specialized manufacturing needs.
  3. Government Support: The Thai government offers various incentives to attract foreign investment, including tax breaks, investment promotion, and support for research and development.

Challenges and drawbacks of manufacturing in Thailand

  1. Political Instability: Thailand’s political landscape may pose business challenges, requiring careful assessment of the country’s stability and long-term investment prospects.
  2. Labor Market Regulations: Navigating Thailand’s labor market regulations, including work permits and employment laws, can be complex for businesses unfamiliar with the local landscape.
  3. Environmental Regulations: Compliance with environmental regulations and sustainability practices may pose challenges for businesses establishing manufacturing operations in Thailand.

Malaysia

Overview of Malaysia's manufacturing industry

Malaysia has a diverse manufacturing sector, with strengths in electronics, machinery, and chemicals industries. The country’s strategic location in Southeast Asia and its well-developed infrastructure make it an attractive option for businesses looking to access the ASEAN market.

Advantages of manufacturing in Malaysia

  1.  Strategic Location: Malaysia’s strategic location offers businesses access to the ASEAN market and proximity to major Asian economies, providing opportunities for market expansion and trade.
  2. Infrastructure: Malaysia boasts well-developed infrastructure, including transportation, logistics, and energy supply, offering businesses a conducive environment for manufacturing operations.
  3. Government Incentives: The Malaysian government offers various incentives to attract foreign investment, including tax breaks, investment promotion, and support for research and development.

Challenges and drawbacks of manufacturing in Malaysia

  1. Labor Market Regulations: Navigating Malaysia’s labor market regulations, including work permits and employment laws, can be complex for businesses unfamiliar with the local landscape.
  2. Competition for Talent: Malaysia’s competitive labor market may pose challenges for businesses seeking to recruit skilled workers, particularly in specialized manufacturing processes.
  3. Market Saturation: Certain industries in Malaysia may be saturated, requiring businesses to carefully assess the market dynamics and competition in their respective sectors.

In conclusion, exploring alternative manufacturing locations outside of China can offer businesses numerous benefits, including cost savings, access to new markets, and greater supply chain resilience. However, it is essential for businesses to carefully assess the advantages and drawbacks of each potential location, considering factors such as labor costs, infrastructure, regulatory environment, and market dynamics. By making an informed decision, businesses can effectively diversify their manufacturing operations and position themselves for long-term success in the global marketplace.

Alternatives to China for Manufacturing_1

AUTHOR

Henry T. Bober

Subject Matter Expert, Srushty Global Solutions

A seasoned expert in Mechanical Design Engineering with 40 years of experience at Xerox Corporation, where he specialized in Product Development and Integration, Cost-Effective Design, Project Management, Technology Development, and Product Architecture. Holding a Bachelor’s degree from West Virginia University and a Master’s degree from the University of Rochester, Henry has been instrumental in Media Handling and Feeder Technology Development, amassing 30 US and 5 European patents. Post-retirement, he founded Fast Forward Engineering, consulting for industries such as copiers, ATMs, and medical devices, with clients including Xerox, Diebold, NCR, Siemens Medical Products, Abiomed, Sycamore Hill Designs, and Impossible Objects. Henry is currently a Subject Matter Expert at Srushty Global Solutions. Residing in Fairport, NY, with his wife Leslie and their numerous pets, he enjoys Western-style horse riding, Japanese garden landscaping, woodworking, studying naval warfare history, and advocating for animal welfare.

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