Guide

Every manufacturer knows that to stay competitive in the market, cost is king. The ability to reduce cost while maintaining quality is the number one concern for any profitable company. There are many methods that a manufacturer can use to reduce cost, each with their own pros and cons.

For many industries, one of the most attractive cost saving methods is the acquisition of raw materials or components from suppliers overseas. The low cost of labor in less developed regions creates a market of goods that at first glance seem to be comparable quality at a significant discount.

In reality, products and materials from these regions carry with them a host of other complications. Difficulties in communication, lack of understanding regarding culture and processes, and limited control of quality all combine to make working with foreign suppliers a significant challenge.

The recent events surrounding the Lumber Liquidators company is a prime example of this kind of difficulty. In this case, the company had decided to accept raw materials from foreign suppliers at reduced costs as is common practice among many industries. When questions arose regarding material quality and environmental issues of certain chemical content of the wood, the company was faced with providing explanations for a process they did not fully control. This creates an extremely volatile condition for both the company, and their customers. Maintaining local suppliers reduces risks such as these by offering more detailed communications, adhering to U.S. industry standards, and even providing facilities tours. Knowing exactly how your supplier is operating can eliminate difficult questions in the future.

Manufacturers of deep drawn parts are world-wide. The Chinese industrial market has been a powerful workhorse for many decades, and provides many of the products used in the U.S. market every day. Although the industry is strong, there are many issues that make choosing a local provider the better choice.

One of the major strengths of U.S. deep drawn suppliers is flexibility. Issues regarding design, quality, and volume can be addressed quickly and efficiently. By comparison, communication with suppliers overseas can be cumbersome, quality is difficult to control, and purchase volumes need to be high in order to make the cost of shipping viable.

Producing the right deep drawn parts for any product requires detailed information regarding quality, material source, and operating standards. Having your supplier nearby ensures that answers are just a phone call away.