The tag reads “Made in China,” even though the product you purchased was from an American company. How can this be? Well, the answer lies in the outsourcing electronics manufacturing that companies in the United States have engaged in on a large scale.

Outsourcing electronics manufacturing allows companies to get a higher-quality, less-expensive product to you, the consumer. In addition, these companies still handle all the marketing and logistics right from the home soil. Here are five facts about outsourcing electronics to help you get the full picture.

1. Since the 1970s, contract electronics manufacturing companies have had a hold on the making of different electronics throughout the world. Before this time, however, the majority of electronic design and manufacturing was handled in-house by these large companies. Today, though, it is quite commonplace for a company to outsourcing electronics manufacturing including to plants in China.

2. Why outsource? The advantages of contract manufacturing include allowing companies to pool their resources, plus save quite a bit on the cost of labor at home. Additionally, outsourcing electronics manufacturing allows these companies to produce with a much greater amount of raw materials than if the services were performed at home.

3. Analog electronic devices tend to be involved with continuously varying electrical signals. In other words, they run on a series of these signals. Analog is often rivaled by digital devices, which can do much of the same features. But when it comes to outsourcing electronics manufacturing, analog is chosen because of the wide availability of microelectronics.

4. Quick fact! If you recycled a million laptops, the amount of energy saved would be equivalent to how much electricity 3,675 American homes use in a year. The top contract manufacturing companies have energy recycling as a key point in their practice of outsourcing electronics manufacturing.

5. The China International Consumer Electronics Show allows trends and developments to be showcased around the world. The SINOCES has become an annual affair and is now in its 11th year. Companies who engage in outsourcing electronics manufacturing can learn quite a bit at these demonstrations. More info like this.