Manufacturers of products made with sheet metal or sheet metal components are faced with choosing whether it makes sense to outsource the sheet metal fabrication. Decision-makers are tasked to determine if outsourcing is financially feasible for the company. When looking at costs from an outsourcing perspective, there is a bigger picture beyond piece or unit price that includes cost savings, cost avoidance (soft savings), and future revenue opportunities.
Outsourcing can contribute to your competitive advantage over others who offer similar solutions in several ways. One is by creating an atmosphere for a more focused business strategy. If sheet metal fabrication is not your primary focus, your focus is split by doing it in-house. As a result, new product development and further advancing your product lines may suffer. Focusing on developing new products or improving current products has the potential to increase revenue.
Contributing to your competitive advantage is enhanced services. If you are doing the metal fabrication in-house, an outsourced metal fabricator may have additional services, such as engineering services, automation, or installation services that can expand what you currently offer customers. They may also have equipment or processes that are more efficient, which will produce a part faster or with better quality.
In addition to enhanced capabilities, you will have access to skilled resources. A company that focuses on sheet metal fabrication has skilled and experienced employees who have likely seen just about every challenge and can find solutions faster than a company that doesn’t focus solely on sheet metal fabrication. Many companies have found it challenging in recent years to find skilled employees, so outsourcing also takes this responsibility off your HR team’s plate, as well as the costs associated with having additional employees.
Outsourcing provides additional flexibility in your manufacturing processes. Business demands can often be unpredictable. Having an outsource fabrication allows you to scale up and down without worrying about equipment or people being overscheduled or, worse idle during slow times.
The cost of poor quality can be high. When you work with an outsourced metal fabricator, you can choose a partner with an excellent track record for quality. Again, if sheet metal fabrication is their focus, they will have tight controls on their quality processes and quickly react if something changes or falls out of spec. You will not have to carry the risk of non-compliance.
CMD — A Leader in Sheet Metal Fabrication and Metal Manufacturing
Cameron Manufacturing and Design is a leading producer of custom metal fabrications, machining, welding, engineering, and installation services. With over 30 years in the manufacturing space, we understand that quality, costs, service, and time are essential to our customers. Thoughtful planning, careful and punctual project execution, and a thorough inspection are part of every job we do.
Whether you need design-to-build prototypes or large production runs, we can meet your needs. We separate ourselves from the run-of-the-mill job shop by providing a one-stop shop, including mechanical and electrical engineering capabilities and installation services.