Details
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.