Top Seven Added Costs of Offshore Sourcing of Die Castings Market Share at Risk You may create a new competitor for your product. The competing product can be developed using your marketing information, specifications, and even tooling. Technology at Risk It's dangerous to reveal secret technology to an offshore suppler. You may find your technology shared with your competitors - at home or abroad. Miscommunication Extra costs are built in to the process of communicating die design changes and assuring their proper implementation despite barriers of language, distance, and culture. Long Lead Times Long offshore production lead times and delays are common. If a company's crystal ball is cloudy and product demand soars or drops, commitments to overseas suppliers can't be easily altered. Short-term cancellations are virtually impossible. The Price of Die Failure Low die costs may be based on uncertified, untreated die steel, with no guarantees of tooling life - foreshadowing the heavy costs of premature die failure. Legal Liabilities The use of uncertified, off-spec alloy often contributes to the low prices offered by offshore die casters. This factor can be a time bomb for manufacturers, leading to a high risk of product failures when such components are incorporated in products. Payment Sight Unseen Because of advance payment requirements - to ifs, ands, or buts - you have no right to review shipment quality or quantity before cash changes hands.