Success Stories
Precision Machined Parts Manufacturer
California
This company specializes in precision machining of
high quality parts of various
materials to customer specifications. The company is
a full service contract
manufacturer equipped to support prototype,
pre-production and production orders.
The company faced increasing competition from
contract manufacturers located in
Thailand and Mexico. As customers began sourcing
production offshore, the
subcontracting jobs were also sourced locally in
these respective countries. These
competitive pressures resulted in a 40% decrease in
annual sales and a 15% decrease
in employment 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) in November of 2001.
Western TAAC and the company’s management developed
a strategy specialize in
the manufacture of complex precision machined parts
targeting larger OEM industry
leaders in selected markets. Their strategy focuses
improving its manufacturing
technology, efficiency, and cost competitiveness,
enhancing quality and service
differentiation to strengthen name recognition,
upgrading the supporting capabilities
of its information and Internet systems, and
focusing its marketing, sales and
promotion efforts on expanding sales through larger
diversified OEM Industry
Leaders.
The company has finished its 3rd year in the
implementation phase of the TAA
Program, and has successfully implemented one of its
production engineering
projects. This project 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
172% to $6.1M, employment increased 71% to 36
employees, productivity improved
59% to $170,102 sales per employee, and the company
regained profitable
operating income over the past two years. |
