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Western Trade Adjustment Assistance Center (WTAAC)

Success Stories

Precision Machine Parts Manufacturer
Arizona

This company specialized in precision machining of high quality parts of various materials to customer specifications within the defense and aerospace industries. It was capable of producing low to medium volume jobs of high complexity, the manufacture of tools and dies, and prototype development work. The company faced increasing competition from low cost manufacturers located in the Western Pacific Rim. Those competitive pressures resulted in a 21% decrease in sales to $9.3 million and a 21% decrease in employment to 114 over the two years before certification in the TAA Program.

The company, with assistance from the University of Southern California’s Western Trade Adjustment Assistance Center (Western TAAC) became certified as trade impacted by the US Dept. of Commerce, Economic Development Administration (EDA).

Western TAAC and the company’s management developed a strategy to improve its sales and promotion capabilities, enhance its manufacturing efficiency to improve cost control capabilities, and obtain ISO 9000 quality management system certification necessary to penetrate new commercial market segments with higher growth potential.

The company began participation in the Post Approval phase of the TAA program. Over a 3 1/2 year period, Western TAAC and the company’s management implement one information technology project to improve production cost monitoring and control capabilities and one quality management system project to obtain ISO certification that was a key factor in expanding its customer base and increasing sales.

Three years after program completion, the results are remarkable. These projects along with other strategy implementation led to outstanding growth and stability for the firm. As a result, in the five years since the firm began working with the Trade Adjustment Assistance for Firms program, sales increased 228% to $30.4M, employment increased 45% to 165, profitability more than doubled, and productivity improved 127% to $184,221 sales per employee.

 
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