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What type of manufacturing do you do? |
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| Cypress Industries performs
a wide variety of electronics, plastics,
and metals contract manufacturing at both
our domestic and Asia facilities. Our U.S.
facilities are designed for low to moderate
volume projects requiring shorter lead times
whereas Cypress is a contract manufacturing
service supplier in Asia. Our China electronic,
plastic, and metal manufacturing facilities
are designed for moderate to high volume
projects. |
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| In the United States, Cypress
Industries manufactures electronic products,
cables, box builds, plastic injection molding,
custom tooling, precision machining, and
performs circuit board rework and basic
assembly as well as various other associated
manufacturing methods. |
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| In China Cypress maintains
all the capabilities of the U.S. but also
manufactures a full line of metal products
as well including: investment casting, sand
casting, die casting, metal injection molding,
aluminum extrusion and many others. |
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| Cypress Industries also has
the ability to combine all of these parts
together to deliver you a final assembly,
packaged and ready to be delivered to your
consumers. |
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What are manufacturing lead times in the
US and China? |
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| Typical manufacturing lead
times vary for different types of products
and also depending on volumes. For an initial
production run in China, the typical lead-time
is five weeks for production. After the
initial production run, lead times are typically
closer to four weeks. In addition, after
production in China, freight will take one
week by air and approximately five weeks
by ocean. |
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| In the U.S. lead-times depend
largely on raw material availability. If
raw materials are in stock, manufacturing
lead times are typically one to three weeks
depending on production backlog. If raw
materials must be ordered and are not expedited,
the additional lead-time will typically
be one week. |
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| - China versus U.S. Manufacturing
Pros and Cons |
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| Cypress Industries has traditionally
manufactured the preponderance of its product
in China. Through the years we have found
there to be value in maintaining both domestic
and China manufacturing capabilities. Our
experience shows deciding whether to manufacture
either domestically or offshore strictly
depends upon the unique needs of each customer. |
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| An obvious benefit to manufacturing
in China is the opportunity to drastically
reduce production costs. For electronic
and metal products our customers have experienced
40-80% manufacturing cost savings depending
on labor requirements. In addition, our
plastics customers typically experience
up to 50% production cost reductions by
choosing to produce products offshore depending
again on labor requirements. The higher
the volumes produced the more cost savings
Cypress is able to provide for its customers. |
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| However, manufacturing in
China does have a few drawbacks that should
be taken into consideration. As a result
of the rise in world energy prices, the
cost of freight (air and ocean) has also
risen substantially in recent years. Additionally,
should the client desire a quick-turn production
for manufacturing performed in China, the
cost of airing goods into the US can be
very expensive. Because goods shipped from
China to the US via ocean require 5 weeks
on the water, our factories in China require
longer lead-times. |
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| The major benefits to Cypress’s
domestic manufacturing operations are the
ability to provide customers with quick
turn lower volume production services and
the closer proximity of manufacturing activities
to customers. Domestic manufacturing requires
shorter lead times, and the closer proximity
provides substantial cost savings opportunities
on freight. |
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| -Will
you manufacture my previously designed product
(e.g. a product based on existing prototypes,
designs, or drawings)? |
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| Of course! In fact, approximately
90% of products manufactured by Cypress
Industries are based on existing prototypes,
designs, or drawings. While your product
may have previously been designed elsewhere,
Cypress is in an excellent position to assist
you in improving those designs by exploring
engineering cost-savings options or manufacturability
improvements. |
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