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Why Quality Decides the Race

Written by Henry Furman | Mar 3, 2025 7:00:00 PM

In global manufacturing, it is easy to think the contest will be decided by price.

China can build for less, so the story goes, and that is the story’s end. But that is not quite right. Price is a symptom. The deeper contest is about who can control costs, move faster, and get stronger with each iteration. Quality sits at the center of all three.

First, quality sets the cost floor.

Poor quality leaks money everywhere. Warranty claims, rework, wasted parts, idle workers, and damaged reputation all eat into margins. In a market where margins are already thin, every defect is a tax on your ability to compete. The company with fewer defects does not just save money. It buys the freedom to invest more aggressively in new products and processes.

Second, quality enables speed.

The old cliché is “move fast and break things,” but in manufacturing, moving fast while breaking things is how you go bankrupt. If every new model or product change spawns a fresh wave of failures, iteration slows to a crawl. High, consistent quality makes speed possible because changes do not trigger cascading defects.

Third, quality compounds.

Every defect solved strengthens the product, improves the process, and teaches the team something they can use again. Over time, those gains layer on each other like compound interest. The gap between a company that learns fast and one that learns slowly starts small, then widens until it is unbridgeable.

That is why quality will decide this race. It is not just about avoiding defects.

It is about building a system where low costs, high speed, and continuous improvement reinforce each other, and where that flywheel spins faster than your competitors can keep up.