One of the earliest and most consequential decisions in product development is where to manufacture. Local manufacturing in NZ or AU, or offshore in China? There is no universal right answer, but there are clear frameworks for making the decision.
When Local Manufacturing Makes Sense
Local NZ or AU manufacturing is the better choice in these situations:
- Low volume: if your first production run is under 500 units, offshore minimum order quantities may not be achievable or cost-effective
- High complexity, low volume: highly engineered products with tight tolerances and complex assembly often benefit from the closer communication that local manufacturing enables
- Speed to market: local manufacturing eliminates sea freight time, which can be 4 to 6 weeks from China
- Regulatory requirements: some products in regulated industries require local manufacturing or manufacturing under a specific quality management system
- Brand positioning: Made in New Zealand or Made in Australia is a genuine differentiator in some markets
When Offshore Manufacturing Makes Sense
Offshore manufacturing in China is typically the better choice in these situations:
- Volume: for most consumer products at volumes above 500 to 1,000 units, Chinese manufacturing is significantly lower cost
- Process capability: China has broader manufacturing process capability than NZ or AU for many product types, particularly injection moulding, die casting, and electronics
- Material and component availability: China has deeper supply chains for components and materials than NZ or AU
- Tooling cost: tooling for injection moulding and die casting is significantly cheaper in China than locally
The Hybrid Approach
Many products use a combination: prototype and develop locally, then manufacture at scale offshore with proper factory management and quality oversight. This gives you the communication benefits of local development and the cost benefits of offshore production.
Pro-Dev has manufacturing partners in both China and New Zealand, and we match products to the right manufacturing location based on the specific requirements of each project. If you are trying to make this decision for your product, it is a good conversation to have early.
