Posts Tagged ‘Outsourcing’

Getting up to speed on "soft" costs

October 18th, 2012
By: Dan Davis

I've got a friend that coordinates purchasing relationships between U.S. manufacturers and Chinese part suppliers. That may rub some people the wrong way, but his current occupation is just part of a natural evolution. He once acted solely as a manufacturer's rep for manufacturing service providers in the Midwest, but had to change his approach as everyone began to seek overseas sourcing connections. In typical American success story fashion, he saw an opportunity and jumped on it.

But this story isn't about him; it's about one of his customers. This one in particular had been a very satisfied customer until the arrival of new company management. The new regime wanted a review of all existing supplier relationships. In short, management wanted to see what cost savings could be gained by intensely scrutinizing current contracts.

My friend has been through these scenarios before, and he prepared a plan. How could he improve his position while helping out the customer? He knew it wasn't just about parts and prices; it was about solving a customer's pain—even if the company didn't know it had one. (more...)

Will Olympic uniform outrage be the catalyst for change?

July 19th, 2012
By: Vicki Bell

By now, the U.S. Olympic CommitteeRalph Lauren, and you probably have heard much about the U.S. Olympic athletes’ official uniforms, and I don’t mean their style. A July 12 report on the ABC program World News Tonight featured a look at the uniforms designed by Ralph Lauren and made—head-to-toe—in China.

Most of the feedback to the online report on abcnews.go.com was negative. So was the feedback from “Stamping News Brief” subscribers responding to the last week’s newsletter that featured the ABC report. (more...)

Don't fear the summer swoon

July 5th, 2012
By: Dan Davis

Is the U.S. manufacturing slowdown a speed bump or a sink hole? Honestly, the answer really doesn't matter.

The June 2012 Institute for Supply Management™ Manufacturing Business Survey—the Purchasing Managers Index—declined 3.8 percentage points from the May numbers, falling to 49.7 percent, which typically means U.S. manufacturing went into contraction. This is noteworthy because the retrenchment comes after almost three years of consecutive months of growth; the last time the survey came in under 50 percent was in July 2009.

Enlightened manufacturers might show some concern, but they are looking ahead because they know U.S. manufacturing is about to undergo a big change. The work is going to be there for those that can deliver quickly and be cost-competitive. (more...)

Act thankful: Buy American

November 23rd, 2011
By: Vicki Bell

My favorite holiday is upon us—Thanksgiving. A day spent sharing a meal and quality time with loved ones; calling family and friends in other parts of the country; watching football (in moderation); and expressing gratitude for all the good things in our lives makes for a great day in my book.

Among the things I'm most thankful for is the country in which I live. Granted, the U.S. has problems, but so does the rest of the world. The economy could be better (it also could be worse), and our elected officials don't seem to be making much headway in resolving important matters. 

A matter of importance to domestic metal suppliers was described in this month's "Tube Talk" e-newsletter. It involves protecting our military and U.S. jobs, and "Tube Talk" readers shared their thoughts. (more...)

Manufacturing: The most powerful jobs engine of all

September 13th, 2011
By: Tim Heston

On Sunday The New York Times business section put a metal fabricator front-and-center. The reporter visited Vermeer, a Pella, Iowa, manufacturer of heavy equipment--and a manufacturer The FABRICATOR covered several years ago. The Times reporter pointed out that “as president Obama urges Congress to enact a package of tax cuts and new government spending intended to revive growth and create jobs, one crucial corner of the American economy--manufacturing--has largely fallen off Washington’s radar screen.”
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Two ways to manage manufacturing risk

April 19th, 2011
By: Tim Heston

Last week I visited two facilities that focused on low- to medium-volume manufacturing. Both customize products to meet customer needs. Both tout quick response and comprehensive customer service. Yet in many respects, the two couldn’t have been more different.

A week ago today I pulled into the parking lot of Atlanta Precision Machining & Fabrication and its parent company, Atlanta Attachment Co., a make-to-order manufacturer in Lawrenceville, Ga. Atlanta Attachment began as an equipment supplier to the apparel industry and diversified into automated machines for mattress-making. The company also fabricates products for the aircraft maintenance market. When business went downhill during the past recession, managers considered the manufacturing technology on the floor--press brakes, lasers, waterjet, painting, rows of machining centers--and had a thought: Why not offer contract fabrication? That’s how, in 2009, Atlanta Precision Machining & Fabrication was born. (Look for an article featuring the company in a future issue of The FABRICATOR®.)

Because the company already fabricates and assembles complete machines for its product lines, Atlanta Precision offers more than just parts. For certain customers it handles the entire manufacturing process. Managers are finding that some OEMs are stepping out of the manufacturing arena entirely, especially for products with highly variable demand.

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Spiraling out of control

December 8th, 2010
By: Eric Lundin

Last week I took a trip to Genoa City, Wis., and felt like I had spent a couple hours in 1955 or so. I paid a visit to Ralph Wells, owner of Wells-Osborn Spiral Stairs, a company that specializes in spiral staircases. Founded in 1949 as a welding and repair shop, it expanded its repertoire to include spiral staircases when its founder, Bill Osborn, was asked by a customer if he could build such an item. Never one to shy away from a challenge, Osborn got to work on it. The shop had windows near a street, and curiosity from several passers-by turned into orders from several passers-by. Spiral staircases caught on, and to this day they make up about half the company’s revenue. (more...)

Who you callin' a protectionist?

July 9th, 2010
By: Dan Davis

If you haven't read this opinion piece by Andy Grove, co-founder of Intel, you should probably check it out.

In the editorial, Grove makes the point that the U.S. has outsourced not only tons of jobs to Asia, but also the ability to innovate. He thinks that manufacturing companies that grew and scaled up their operations in the U.S. over the years also fostered innovative thinking among their own employees and contractors. When recent start-up companies launched business plans and went to Asia to fulfill their manufacturing destiny, their absence removed a key dynamic for sparking innovation stateside. And, yes, the reduction of jobs was another byproduct, according to Grove. (more...)

Metal fabricators are true knowledge workers

June 28th, 2010
By: Tim Heston

Last week DeWys Mfg., a metal fabricator based in west Michigan, launched a new Web site, and the content of that Web site is worth noting. The contract fabricator is touting its “circle of companies” concept, which is another way to describe the fact that DeWys is a one-stop shop for metal manufacturing: precision sheet metal, metal stamping, powder coating, product assembly, machining, and international sourcing.

Yes, you read that last one right: international sourcing.

As DeWys’ Web site states: “Following the principles of lean manufacturing, we strive to accomplish tasks using the most efficient manufacturing systems and following the most direct route. It is for this reason DeWys International was established. DeWys International simplifies the process of sourcing component parts and finished products from offshore manufacturers.”

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Labor is not a bad word

April 27th, 2010
By: Tim Heston

Countless talking heads have argued for and against globalization. Some say it’s an unstoppable force, as companies continue their hunt for the company that gives the most bang for their buck. In manufacturing, that often translates to the cheapest labor that can meet or exceed required quality standards. Others have said fuel costs have changed the math behind the global supply chain. As the economy emerges from recession, fuel costs are sure to rise, and once they do, outsourcing certain work to factories across the ocean won’t make as much sense as it once did. Still others argue that lean manufacturing, the new norm, forces the supply chain to react just in time, and it can’t do this if it has to ship large parts across an ocean.

This is all just math, though—measurements of money and time—and I’ve got a feeling that it’s not the real reason that so many are so passionate. I think it’s more about our view of labor. In manufacturing, labor has turned into a bad word. Managers succeed in part by reducing the labor content within the parts they produce. The less labor it takes to make something, the better. (Even the phrase labor content is a bit dehumanizing.)

No wonder manufacturing has trouble attracting skilled workers. What budding skilled tradesperson, one who has a passion for the attributes of hands-on metalworking, would want to join an industry that has given the word labor such a bad name?

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