OUTSOURCING JUST 1 PART TO A ROLL FORMING COMPANY CAN BOOST PROFITS



U.S. manufacturing has had its share of bad turns over the last 50 years, with entire industries being outsourced to other parts of the world. Not good news for roll forming companies. Starting with products like clothing and electronics, we gradually saw large corporations move their production overseas or to South America to take advantage of cheaper labor and less regulation. Into the 1970s the trend continued with auto parts, furniture, toys, shoes and a host of others.


Fast forward to today, and we may be seeing a more influential recognition of the value U.S. manufacturing offers:


Rapid response of supply in close proximity to the largest group of consumers in the world

The lowest energy costs on the world

Highly advanced technology and automation

A fairly stable political and market environment

But as a manufacturer anywhere, what if you could outsource just one component of your finished product to a local supplier and increase your shippable units by 20% to 50%? How could this possibly happen?


WHEN TO TURN TO ROLL FORMING COMPANIES

Almost all manufacturers have equipment and processes designed to provide customized features inherent to the uniqueness of their product. Whether these features contribute to unique functioning of the product or allow the manufacturer to offer customers options, they form the core value and differentiation that support sales. It makes sense that investment in equipment, people, processes, and allocation of factory space should favor supporting these features of the product.


Many manufacturers tend to want to use equipment not only for unique, value-driven components of the product, but also for more generic, commodity components as well.


“If we can have 100% utilization of our equipment and resources, we get the maximum return on our investment.” … I can hear the plant manager saying that now!


But, what if available capacity for producing the true, value-driven components is consumed by the commodity components? What if the highly skilled labor that understands the custom processes is banging out generic widgets? Have lead times increased because we are so busy? Is the sales group screaming for more custom units with options that need to ship faster? I think we have a conflict.


CONFRONT YOUR CONSTRAINTS

The higher-volume, commodity items are constraining the ability of your organization to increase shippable units. And while you may think investment in equipment to produce these parts will help the company, would you invest here or in core value-producing equipment?


Localized efficiency measures are a fallacy clouded heavily by standard cost accounting techniques. If capacity is being pillaged by even one higher-volume commodity part, outsourcing this one part can exponentially increase your profitability.


Profitability is about accelerating throughput of shippable units using the same costs and existing investments. Experienced roll forming companies can help with that.

custom roll forming peoria

tile profile machine

light gauge steel framing machine

评论

发表评论

此博客中的热门博文

Double Deck Roofing Sheet Roll Forming: Elevating Structural Integrity and Efficiency

In the realm of construction, roofing plays a critical role in providing shelter and protection against the elements. One innovative solution that has gained prominence in recent years is double deck roofing sheet roll forming. This advanced manufacturing process not only enhances the structural integrity of roofing systems but also boosts efficiency in installation and maintenance. In this comprehensive guide, we explore the intricacies of double deck roofing sheet roll forming, its benefits, and its transformative impact on modern construction practices. Chapter 1: Unveiling Double Deck Roofing Sheet Roll Forming Double deck roofing sheet roll forming is a precision engineering process that produces roofing sheets with two distinct layers, offering enhanced durability, insulation, and weather resistance. At its core, the process involves feeding metal coils into a specialized roll forming machine equipped with precision rollers, dies, and cutting tools. These machines meticulously sh...
阅读全文

The Facts About Summer

We hope that you are enjoying a great summer. We have noted how quickly it is flying by. To help “preserve” the joy of these last remaining weeks a bit, we wanted to break from our normal subjects of home improvement, roofing, and energy efficiency and bring you a few “Surprising Facts” about summer. Maybe, if you have any remaining summertime gatherings with friends and family, you can amaze them with your knowledge of summer trivia. Or, better yet, just forward this email to them if you think they may want to share in these snippets of summer goodness The “Dog Days of Summer” are named after the Dog Star (Sirius) and officially began with the first sighting of Sirius at sunrise. The ancients evidently believed that Sirius’ energy was combined with the sun’s when they were so close together in the sky and this brought about the hottest weather of the year in the northern hemisphere. According to John Brady in Clavis Calendaria, the Dog Days were believed to be a time when “the sea boi...
阅读全文

Metal Warehouse: How To Build A Crossfit Gym

Let’s start from the beginning. Most people know what kind of high-intensity fitness training we are talking about here. If you don’t know, don’t worry, as we are here to help you understand a little better. Here is the technical explanation of Crossfit quoted from Nerdfitness.com “CrossFit is a training program that builds strength and conditioning through extremely varied and challenging workouts. Each day the workout will test a different part of your functional strength or conditioning, not specializing in one particular thing, but rather to build a body that’s capable of practically anything and everything”. Now you know a little bit more in-depth explanation about this great workout. But if you are still wondering why you should do it, this is why. Crossfit is undoubtedly an excellent workout for the regular person. You don’t have to be good at anything in particular. The training is designed to adapt to anyone willing to do the workout, at any age, shape, or form. The number one...
阅读全文