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Advantages and Disadvantages of Domestic and Off-Shore Production

[white spacer] Advantages Disadvantages
Domestic Production Trade barriers not a concern

Supported by consumers who desire products "Made in the U.S.A."

Labor costs higher than in some other countries
Off-Shore Production Labor costs lower than in the United States

Can take advantage of 9802 (807) production

Differences in cultural norms and language

Possible trade barriers

Owner-Facility
Production
Quality control

Greater control over production timing

Financial requirements associated with equipment and personnel

Need to assure continuous production

Higher labor costs

Foreign ownership creates additional financial risks

Contractor
Production
Greater flexibility to changing equipment or production needs

No investment in factories, equipment, or training needed

Less control over quality or production timing

From The Business of Fashion: Designing, Manufacturing, and Marketing by Leslie Davis Burns and Nancy O. Bryant, 1997


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