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Advantages and Disadvantages of Domestic and Off-Shore Production
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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
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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
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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
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From The Business of Fashion: Designing, Manufacturing, and Marketing by Leslie Davis Burns and Nancy O. Bryant, 1997
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