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. |
