Russia as Lucrative Sourcing & Production Location
Localization and cost savings through contract manufacturing
Partnership | Integrity | Loyalty
Russia as manufacturing location has many advantages, first and foremost the low price combined with a high quality (in our workshop partners on par with Western Europe), and the creation of local content to stay unaffected by political barriers, like import replacement initiatives or counter-sanctions. On the disadvantages side there is for one the communication barrier. Production locations have the technical skills to produce with highest quality, but their English language skills are mostly lacking. There are cultural risks as well: In Russia, you need to know how to expedite the workshop correctly to meet deadlines. Thirdly, a currency risk might be present: local workshops want to be paid in Russian Rubles, which, can be heavily fluctuating against the Euro or Dollar. These disadvantages are mitigated by BS International as your sourcing partner. We will take care of your project expediting, are close to the workshop with Russian-speaking natives and serve as communicator between you and the production location. Every document you supply we translate and communicate correctly, transfer drawings from European or American design codes to Russian standards, and have the ability to control all workshop-produced documents for compliance with local standards and regulations. Choose us as your partner for contract manufacturing, and you will be able to tap into the vast advantages of Russian manufacturing, while minimizing the risks involved. We make the outsourcing of your production easy.
A primary benefit of production in Russia got a lot stronger only recently: Prices are very low since the rapid devaluation of the ruble against major foreign currencies in recent years (manufacturing wages are at Chinese levels, energy prices are even lower). Low prices are combined with the possibility to achieve a high production quality, generally on a far higher level than in other countries with similar costs of workmanship (Thailand or India).
Localization for the Russian market
Of course, serving the Russian market itself is highly interesting as largest European market for industrial equipment. However, import substitution is a strict policy for most large Russian purchasing corporations, especially where government affiliated companies are involved. This is predominantly the case in Oil & Gas. Due to this fact, companies that localise by producing a high percentage of their products in Russia are clearly having a competitive edge. Engineering and design can be done outside the country, as long as a Russian location is chosen to produce the equipment. It will be “made in Russia” and is therefore prioritised in competition to foreign producers. Our production services offer Western companies the possibility to produce locally via us, safe and fully controlled, while engineering can be done at home in the US, Canada or Europe.