PROSPECT, CT – Forty-two percent of US OEMs surveyed indicate they expect to have more outsourcing projects/purchases in the next year than in the past twelve months. This is up 3% over the previous year and up 11% from the 2010 Design-2-Part Manufacturing Trends Survey.

However, only 48% said business has grown in the past twelve months compared to 51% in 2011.

The survey also asked OEM engineers and buyers that outsource what their company’s most important factor for measuring manufacturing outsourcing vendors was.
“Quality” continues to be the number one priority with 49%, followed by “product cost” with 39%, “delivery” with 9%, and “technical support” at 3%. These responses are within two percentage points of answers given in 2011.

The survey asked, “Where do you currently outsource the majority of your projects?” The most popular answer was “local vendors-up to 100 miles” at 42%, followed by “regional vendors-up to 250 miles” at 20%, “national vendors” at 19%, and “overseas/international vendors” at 20%.

Those who answered “local vendors” were asked, “What is the primary reason for using local vendors?” Fifty-six percent said “hands-on access/vendor visits.” “Delivery time” was second at 21%, followed by “support local economy” at 13%, and “cost” at 11%.

Responders who answered “overseas/international” were asked, “What is the biggest supply chain risk as viewed by your company?” Fifty percent answered “delivery time,” followed by “vendor stability” at 31%, “shipping costs” at 12%, and “natural disaster” at 7%.

Five common themes were apparent from survey answers about advantages to outsourcing domestically: superior quality, better communication and supervision, reliable delivery, shorter production runs, and “Made in America” pride.

Common challenges include industry and government regulations, smaller run quantities, and maintaining quality while dealing with price pressures.

The survey yielded 436 responses across all major manufacturing industries.