Success Stories
Precision Machined Parts Manufacturer
California
This company specializes in precision machining and
stamping of high quality parts of
various materials to customer specifications. The
company is a full service contract
manufacturer equipped to support prototype,
pre-production, production orders, and
provides complete in house tool and die services.
The company faced increasing competition from
contract manufacturers located in
the Western Pacific Rim (Taiwan and China). As
customers began sourcing
production offshore, the subcontracting jobs were
also sourced locally in these
respective countries. These competitive pressures
resulted in a 20.5% decrease in
employment over the two years before certification
in the TAA Program, and a 6%
decrease of a key product line in the 12 months
before certification.
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) in December of 1999.
Western TAAC and the company’s management developed
a strategy to specialize in
the manufacture of complex precision machined parts
and assembled subcomponents
while expanding and diversifying its customers and
industry markets.
Their strategy focuses on improving and expanding
its marketing and sales
operations, continuing to improve its manufacturing
technology, efficiency, and cost
competitiveness, enhancing quality and service
differentiation to strengthen name
recognition, and upgrading the supporting
capabilities of its information and
communication systems.
The company has finished its 6th year in the
implementation phase of the TAA
Program, and has successfully implemented its two
quality management projects, one
of its marketing projects, and one of its
information technology projects. These
projects focused on significantly improving
manufacturing efficiency, reducing
production cost and shortening cycle times. Since
beginning its public/private
sector partnership with the TAA for Firms Program,
sales increased 9% to $6.4M,
productivity improved 129% to $206,896 sales per
employee, and the company
regained profitable operating income over the past
two years.
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