Re-shoring Sheet Metal Fabrication, Contract Manufacturing
A reassuring discussion about the pros and cons of re-shoring
Introduction
In the current global economic landscape, tariffs on imported goods have significantly impacted the cost structure of manufacturing operations. For companies involved in sheet metal fabrication and contract manufacturing, reshoring these activities to the USA presents a strategic opportunity to mitigate these costs and enhance operational efficiency.
Let’s talk re-shoring in general – and Connecticut, and Chapco, in particular.
BENEFITS
Why?
WHY Chapco
Cost Reduction and Tariff Mitigation
The reinstatement of tariffs on steel and aluminum imports has increased the cost of raw materials. By reshoring subcontracting operations, companies can avoid these tariffs, thereby reducing overall production costs 1 2.
Chapco’s experienced estimating team and buyers can get you the best prices and will proactively contact you when a commodity price drop or tariff change may result in a better quote to ensure that we stay competitive, and you feel confident of a great product for a fair price.
Enhanced Quality Control
Domestic subcontractors allow for stricter quality control measures and faster resolution of issues. Proximity to production facilities enables more frequent inspections and direct oversight, ensuring higher quality standards. For example, reshoring allows for real-time tracking and immediate corrective actions, reducing the risk of defects and enhancing customer satisfaction 3 4. leading to fewer product recalls and returns 5.
Chapco has invested heavily in quality assurance processes over the last 18 months with new staff and new equipment. We continue to focus on quality as we work towards ISO9000.
We actively invite our customers to our production facilities.
Supply Chain Resilience
Re-shoring reduces dependency on complex international supply chains, which are vulnerable to disruptions. Localized subcontracting enhances supply chain stability and reliability. The COVID-19 pandemic exposed critical vulnerabilities in global supply chains, causing unprecedented disruptions in manufacturing and logistics 6. By re-shoring, companies can mitigate these risks and ensure a more stable supply chain 7.
Chapco is ideally located in South Eastern Connecticut with fast access for our delivery vehicles to both I95 and I91. With this in mind our customers span the North East and Tri-State regions, and beyond.
Proximity to our customer-base also facilitates another advantage of re-shoring – reduction of the environmental impact of transcontinental shipping, particularly important for B-Corps and others whose missions include environmental impact reduction
Intellectual Property Protection
Subcontracting in the USA offers stronger intellectual property protections compared to many offshore locations. This reduces the risk of IP theft and ensures proprietary technologies and designs remain secure 8 9. For example, electronics manufacturers have increasingly moved operations to North America to safeguard their intellectual property amid geopolitical tensions 10.
Chapco is not only a sheet metal fabrication company, and contract manufacturer, we are also part of a collaboration of companies that produce and sell state of the art products. As such we understand and respect the investment – financial and emotional – made in your designs. Our engineering services provide added value in ensuring that products are designed for manufacture.
Improved Communication and Collaboration
Operating within the same time zone facilitates real-time communication and collaboration between teams, leading to quicker decision-making and problem-solving 12. Enhanced communication reduces misunderstandings and fosters a collaborative environment, improving overall efficiency.
Chapco’s philosophy is to build Partnerships not just Parts.
We truly value our customers and are committed to open and timely communication. It is not unknown for our customers to carve out their own design space and work collaboratively with our engineering services with personalized attention and support throughout the manufacturing process.
Faster Lead Times and Single Source Capabilities
Domestic subcontractors can significantly reduce lead times for production and delivery. Shorter distances and fewer logistical hurdles mean quicker turnaround times, allowing companies to respond more rapidly to market demands.
Over the past 12 months Chapco has reduced lead times through agile production planning and our continued investment in lights-out technologies. We offer comprehensive single-source capabilities, including precision sheet metal fabrication, CNC machining, contract assembly, and engineering. This integrated approach reduces the complexity of managing multiple suppliers and enhances overall efficiency.
Support for Local Economies
Reshoring subcontracting operations supports local economies by creating jobs and stimulating economic growth.
This can enhance your company’s reputation and foster goodwill within your communities of interest.
Chapco is a valued member of the community. We are a significant local employer, and play a role in Connecticut’s thriving Manufacturing Ecosystem. The skills-gap is often cited as a reason not to reshore. CT has long been known for it’s advanced manufacturing workforce and as part of that eco-system Chapco is proud and fortunate that we have a loyal workforce with a vast number of years experience – in the field and with Chapco.
Access to Advanced Technologies
The USA is a leader in technological innovation, providing access to cutting-edge manufacturing technologies and automation. Reshoring allows companies to leverage these advancements to improve efficiency, reduce costs, and enhance product quality.
Chapco has invested heavily in automated technologies to guarantee efficiency. Our programming engineers, and work center leaders are skilled operators, and where a craftsman’s touch is needed – we have that too. Our weld team have just been awarded AWS Certifications.
