Insight into Shenzhen’s manufacturing sector
It’s funny, manufacturing in China, let alone manufacturing in Shenzhen, has changed dramatically over the last decade. Many companies originally outsourced their manufacturing to Chinese manufacturers in order to save money. However, manufacturing in China has come a long way, and with the added bonus of China’s new tech hub, Shenzhen, there has been a huge transition from manufacturing in China just because of cheap labor.
What’s interesting, and what many people are unaware of is, China is no longer a low quality, cheap labor manufacturing country. In fact, they’re now becoming a premium manufacturing nation and this is a big reason why large corporates are still manufacturing in China. Because the Chinese know exactly what they’re doing.
Shenzhen is home to 100’s of thousands of hardware engineers, specializing in different areas of product development. The vibrant, innovative cities such as Shenzhen is attracting some of the worlds most talented. So, when looking for resources to develop and manufacture your hardware device, Shenzhen is the best location for you.
I have met and spoken with numerous startups asking me the same question, why should I manufacture in Shenzhen? To give context, the companies I talk with are usually developing complex B2B devices, such as, medical, agriculture, Ai integrated IoT devices, etc…. And so, they need a manufacturing partner who is able to support this. This is one reason why you should manufacture in Shenzhen because there are high-premium manufacturing sites in Shenzhen able to support the production of these complex devices.
Today’s startups are moving more of their efforts into developing a product for the B2B (business to business) sector. And, with B2B, more often or not you don’t need a high volume contract manufacturer to produce your products. Which causes a problem for startups to find a high-quality manufacturing company that will produce small volume.
So, the need for platforms able to support the manufacturing needs of B2B startup companies has become more and more needed, which is why manufacturing in Shenzhen can be the right choice for your B2B startup, because Shenzhen’s manufacturing ecosystem can easily support these needs, SVV’s manufacturing is one example.
Does it make sense to do your molding and tooling in Shenzhen? In the case of many startup companies, they usually do their molding and tooling in/around the area they will be manufacturing. So, if you’re going to manufacture in Shenzhen, then it would make sense to have your molding and tooling done in Shenzhen or other areas of the Greater Bay Area.
As you can see, there are many benefits to manufacturing in Shenzhen, especially if you’re a startup company focusing on the B2B industry. If you’re looking for manufacturing companies who are able to support tier-one low volume complex production, then producing your technology in Shenzhen is the best option for the success of your product.
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CHINA: Building 4, Level 9/10 Tianan Yungu Industrial Park, Longgang, Shenzhen USA: 955 Alma St, Palo Alto CA 94301, California
GERMANY: Eckstein: Albert-Einstein-Ring 1/F1,14532 Kleinmachnow (Berlin)
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