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Hello there, that is a tough one. I would suggest that you find a local manufacturer and negotiate prices. I am sure you have not gotten to the point to leverage order size but you are able to say " Look, I could have gone to China but I did not. I want to help local businesses and we can do this together. May company is going to be big and I will keep you as a part of my sourcing resources " Do not make any promises as you do not know what the future holds for your firm.
Report Frank 's answer
You might want to look into rural areas and estimate the cost of labor. Also explore other emerging markets eg Africa that maybe more economical.
Report Mukup's answer
I would suggest looking at technology to help improve manufacturing versus low cost labor countries such as China. Also, the way to compete in this type of arena is to be flexible and unique. If your product is good, people will pay more if you can offer them something that is unique and personalized. Sometimes the experience is greater than the product.