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Western Trade Adjustment Assistance Center (WTAAC)

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.

 
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