FAQ

Due to the explosive growth in privatization and industrialization there, it seems that the world's attention is firmly fixed on China. Free Trade Zones, massive banking reforms and legions of quality-minded entrepreneurs make China the best Low Cost Country (LCC) in the world for sourcing and OEM Production. Hundreds of the largest companies in the world are making significant investments to take appropriate segments of their manufacturing operations there. Thousands of privately-owned factories, machine shops, mills, plants, workshops and other facilities are crowded into the bustling cities of China. In China two areas, Shanghai on the central coast and Shenzhen in the south radiate the vibrant, productive and creative energy of this emerging industrial giant. Premier Industries offers our customers the best avenue to reap the significant cost-savings benefits of manufacturing in China without incurring substantial risk or overhead.

Premier Industries has office resources centrally located to the vast number of facilities in the Shanghai and Shenzhen areas. We are staffed with Chinese-speaking members who are committed to making your application move forward in the smoothest possible manner. We work closely with you to fully understand your specifications. We interact extensively with the management and engineering staff of the selected Chinese makers to assure that the quality standards that you set forth are rigorously achieved. Under no circumstances will you be expected to accept production that does not meet your specified requirements.

Yes, as long as drawings are prepared in accordance with generally accepted standards for dimensioning and tolerancing. Engineering is universal. More importantly, before a Chinese maker is chosen and before any job is placed, complete agreement between your documented needs and the maker's capabilities are negotiated and fully determined. Throughout the set-up process, we will seek your clarification before any production is undertaken.

Yes, drawings can be specified in metric, SAE or a combination of measurements in accordance with conventional dimensioning and tolerancing practices. Drawings and specifications should be properly and clearly identified to avoid confusion.

Yes, but it is usually more practical to work from drawings to avoid misunderstandings of your defined tolerances. Ideally, most Chinese factories prefer to receive complete drawings and samples of a part/product in order to accurately quote production.

Timely deliveries are a concern world-wide, not just in China. We do our best to locate reliable factories and regularly update you on the progress of production. We work with customers and manufacturers to set realistic production schedules that suits both your needs and the capabilities of the factories.

Many customers already have made investments in China but still have need of our services. Your subsidiary or joint venture partner may not be able to handle all of your diverse needs from China or it may not be economical or practical to rely on them for every aspect of business there. Get to know Premier Industries and you may find that we can provide complimentary services or be employed to support a sourcing presence that you are already using.

Even if you are satisfied with your present representation in China, it is always a good idea to get competitive bids, and possibly to "2nd source" your production in order to have another source available in case it becomes necessary. In many cases, we may be able to negotiate or otherwise economize your supply in such a way that we can save you money even if sourcing from the same factory you are already working with.

Plastic Injection Molds and other tooling projects are very attractive for fabrication in China. The CNCs, EDMs and whatnot that are used in most shops are generally very new and therefore more efficient to operate than similar machines in the US. Labor cost, of course is significantly lower than in the US (or most other LCCs). The costs of raw materials are generally a bit lower as well, as is energy, physical plant and things such as insurance.

Part/Product production projects that are best suited for manufacturing in China tend to be labor intensive in relation to their market price and delivered in relatively large order quantities. Parts/Products that are relatively expensive to ship (bulky and/or inexpensive) or need to be delivered in small order quantities on relatively short lead times are normally not well suited for Chinese OEM production.

Containerized ocean shipments are the most common and economical way to ship from China. If you are buying in less than full containers, it still will most likely be economical for you to produce in China. With the help of a qualified freight forwarding agent, we help you to calculate the potential savings.

Even shipping small-to-medium sized tools from China via air is quite popular among our customers. They still realize significant savings as compared to US toolmakers, and they can have their tools in-house and producing profits very quickly.

Premier Industries US, Inc. is an American company located in the State of Nevada. Your payments to us are just like your payments to any other supplier that you deal with in the US. You will be invoiced and you can pay us with wire transfer between our banks or you could pay us by check. Generally we establish sales terms for our tools as 50% down payment and 50% upon approval of First Article parts. Freight is billed in arrears after all of the costs including duty has been accounted for. Usually this will occur about 30 days after delivery.

Down payments typically are required for NREs and sometimes for other reasons. You have the backing of Premier Industries and the respective Premier sales office to guarantee the security of your advance payment.

Most commonly specified materials are readily available in China. For materials that are not available, we may work with you to identify acceptable substitutes. In situations where substitute materials are not an alternative, we may coordinate import procurement and deliver specified materials to the factory in China.

We are not partners in ownership or alliance with any party in China. This allows us to impartially represent our customer's interests, and to recommend manufacturers that are best suited for the application.

We specialize in identifying reliable factories that satisfy the requirements of our customers. We are not limited to any particular type of application or process, nor are we tied to any particular factories.

Although this is not our focus, we are always open to opportunities that can build profits and deepen relationships. The best way for us to be involved in the distribution channels in China is to be involved in your products' manufacture. In that way we are most likely to interact with parties who distribute to the local market.

Delivery lead times and shipment times vary depending on the supply and transport conditions. Premier Industries typically quotes DDP (Delivery Duties Paid) to our customers. We have expertise and legal authority in importing your products. Once the products are produced, packaged and delivered to the port, the actual transit time via ocean could be anywhere from 3 to 7 weeks. Air freight is also avialable and can also be a very attractive and fast way to transport your products to you. Working with Premier we will help you understand total transit time and expenses with the help of a qualified freight forwarding agent.

Yes! We encourage our customers to visit China, experience the environment and tour the production facility before placing an initial order; that way you have a better understanding of the people and the places involved with your OEM Production in China.

There is certainly very little danger of this type of contamination affecting any of the products coming out of China. Millions of tons are shipped out daily, and there have never been any reports of that nature. If you plan to visit China, it is always wise to check with relevant governmental offices before any international travel in order to determine what travel advisories are in effect for health or other reasons. (See: World Health organization: http://www.who.int/country/chn/en/ )

Chinese factories often employ some English speaking staff, but their language ability is not always sufficient for detailed or technical conversation with our customers. Premier Industries' staff offers you a clear interface with the factory, and helps to identify and avoid possible areas of miscommunication.

Outsourcing production activities is a part of strategic, long-term consideration. Wise companies assign some of the cost savings of transferring certain job functions overseas toward employee educational, retraining or outplacement programs, thereby preserving domestic jobs and making the staff more valuable to the company, the economy and themselves. Companies that truly understand this find ways to re-develop much of their domestic staff into higher-value employees and go on to realize healthy growth and to become globally competitive.

The latest official studies, in fact, seem to indicate that this is not such a large issue. According to Federal Reserve Bank of Philadelphia President Anthony Santomero, reported in the Wall Street Journal of June 22, 2004...

Globalization appears on balance to be a positive thing for the U.S. "We will continue to see insourcing of jobs as the skills of U.S. workers are sought by foreign companies. The process of reallocating employment and employment opportunities around the world is ultimately beneficial," even as it does come with costs and difficulties for some sectors of the economy, he said.

Manufacturing and material costs do fluctuate in China just as they do in other world markets. Generally, prices don't change rapidly under normal market conditions. Typically, long-term contracts can be negotiated to secure production at a certain price level for a given time.

If you are a customer that is capable of importing independently, orders can be delivered FOB to a convenient Chinese port city. Your appointed freight forwarding agent will help you to coordinate all aspects of transport and importation from China.

Premier Industries has established excellent relations with qualified freight forwarding companies. Should you desire (and most of our customers do so) we can fully arrange the shipment, importation and delivery of your products directly to your loading dock.