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A Quick Look at the Hidden costs of off-shoring

To stay competitive, American manufacturers have had to get lean and mean in their processes. Many OEM companies found it necessary to outsource many of their smaller, more labor intensive processes in an effort to cut their costs and stay viable. And quite a few resorted to “offshoring,” using foreign companies in Central America or Asia, taking advantage of cheap labor and less stringent worker protection regulations.

High scrap rates, parts needing adjustment for being out of spec, delayed response times, and cultural variations and miscommunications are additional complicating factors that create unforeseen pressures and hidden costs to an offshoring relationship.

If your OEM products require custom tube products that currently come from an overseas supplier, chances are you can realize a significant cost reduction by bringing those operations back to the USA. At Central Tube and Bar, we perform many custom bending operations, and to ensure precision, we employ CNC laser cutting machines that can cut multiple channels in tube and bar products in a matter of seconds. This is done with such precision that there is no discernible difference from the first part to the last, no matter what the size of the part run may be.

As for quality, our goal is “scrap rate zero,” meaning every part we ship works as intended or we make it right. And when you need service, there is no barrier due to time zones or language, and our response time is immediate.

With Central Tube and Bar as your parts partner, you’ll never have to absorb the high cost of cheap parts. With us, there are no hidden costs, because we won’t pull you in with low published costs and then leave you on the hook for delayed shipping and poor quality, and because we support lean manufacturing operations, you’ll have the parts you need, when you need them!

Call CTB today at 501-450-7750, or contact us online and tell us how we can help. When you partner with CTB, you’ll never have to worry about the high cost of cheap parts again.

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