The Challenge
Providing a product so cost-effective that its manufacturing would not be outsourced to China. Quality could not be sacrificed either.
The Background
A key customer of Mathison Manufacturing had a problem, and it was a big one.
The customer—let’s call them "Acme Components", though it’s not their real name—provides finished components. Many of the parts are developed off-site, by other sources, and assembled at Acme.
A key customer of Acme’s found they could get the component—not just a fabricated part, but the entire component—manufactured more cheaply in China.
Mathison Manufacturing didn’t work on this project with Acme. Still, we have a good relationship and as friends they were simply explaining the trouble they were in.
Acme’s main problem was the cost of one part, provided by another supplier. That single part made the entire component cost prohibitive. The supplier said sorry, but they simply couldn’t develop the part at a lower cost.
The more we learned, the more we realized we might be able to help. After all, we are not simply metal and plastic fabricators but do our own manufacturing. We agreed to give them a quote.
Acme was amazed when the quote arrived. First, it came quickly—within a day of our discussion.
Then the pricing floored them. How could it be this low?
We explained that we have state-of-the-art machines that enable productivity. We have a skilled labor force that knows how to do quality work in a very timely manner. And we have efficiencies built into our processes.
The Outcome:
Acme went to their customer with a new price. The customer agreed to continue to work with Acme, and Acme in turn agreed to work with us. We are now producing these fabricated stainless steel parts, assembling the components and shipping them on a regular schedule from our Southeast Wisconsin facility.
Demand for the custom fabricated components has grown, and Acme now has a work cell (with three or four employees) running five days per week just to fulfill those orders.
Call us at 262-542-7296 or contact us to learn more about how Mathison Manufacturing can help keep costs down and still be able to proudly say your products are made in America.