As companies look to improve supply chains and cut costs, many are turning to outsource their stamped metal parts. By outsourcing, companies seek to gain manufacturing flexibility, increase efficiency, and re-focus on core competencies.
It appears that outsourcing metal-stamped parts won’t be slowing anytime soon. The market is expected to reach $310 billion by 2030 at a CAGR of 4.7 percent. If you’re considering outsourcing, we provide ten reasons why you should.
Reduce Total Costs
You can reduce the total cost associated with your product by outsourcing its metal-stamped components. By outsourcing, you don’t have costs associated with capital equipment, materials, manufacturing space, utilities, insurance, technology, and processes. Not only are you eliminating CapEx but also OpEx associated with running and maintaining this equipment.
Additional savings can be found if your stamping partner has full-service capabilities. A partner vested in your success will look for ways to reduce costs in your project by seeing if there is a more efficient way to manufacture it or suggesting different materials that will provide the same functionality and offer the same quality.
Metal stampers who have efficiently run operations have lower costs, so they don’t have to pass the cost of inefficiency on to you. When evaluating total costs, consider avoided costs as well. Greater efficiency can mean consistent on-time deliveries and quality, which can help you avoid costs associated with shipping delays and poor quality (e.g., further delays, failures, returns, and warranty claims).
Focus on Core Competencies
Manufacturing stamped metal parts, when it isn’t your core focus, can be time-consuming. Scheduling production, maintaining equipment, managing materials, and staffing all take time away from other activities. When you outsource components, like stamped parts, you can focus on building your business, putting efforts into R&D, or improving revenue-generating operations.
Tap into Expert Knowledge
You can’t know everything about everything. If you’re building a more fuel-efficient car or more effective medical equipment, you should have to think about how to make a metal-stamped part or fix an issue with it if one comes up. When you outsource stamped metal parts, you are partnering with experts. The metal stampers have worked with parts across industries and may have ideas you haven’t thought of or been exposed to. They also have likely encountered and resolved an uncountable number of challenges, whether it is from the design, the material, or the equipment.
Reduce Safety Risk
There are always risks when it comes to manufacturing. The fewer equipment and people you have in your facility, the less risk of injury and liability. While safety protocols will likely never purposely be ignored, less experienced workers may increase your risks. Additionally, metal stamping equipment requires regular maintenance to operate safely. Outsourcing to a metal stamping partner means you don’t have to be responsible for maintaining this equipment, reducing the risk of equipment malfunction or failure. However, it is essential to ensure that the metal stamping company selected has a good safety record and follows appropriate safety protocols to minimize the risk of accidents and injuries.
Take Control of Your Supply Chain
Supply chain disruptions can shut down your product line or require you to maintain safety stock, which has associated carrying costs. Also, because your stamping partner has developed supplier relationships and buys in larger quantities, they will have an easier time getting raw materials, and better pricing, than you might.
However, not all metal stampers are the same. So if your supply chain is a concern, check on on-time delivery and quality metrics as well as financial stability. A less stable company puts you at risk.
A metal stamping company that has been in business for decades knows the ins and outs of metal stamping and will have built efficiency into its processes. Look for a partner that follows lean manufacturing principles and looks for continuous improvements in their operations.
If you are manufacturing and selling HVAC equipment or consumer appliances, that will be your focus, not creating efficient manufacturing processes for stamping the brackets or other metal components your products need. When you outsource with a trusted metal stamping partner, the metal components will be there when you need them, allowing you to operate more efficiently.
Reduce the risk of overproduction or underproduction, which can lead to inventory management issues. If you can’t keep up with demand, consider outsourcing instead of expanding operations. Your metal stamping partner can act as an extension of your company while solving production scheduling problems you may be encountering.
In addition to having the ability to scale your operations quickly up or down as business fluctuates, outsourcing may also allow you to add additional services. Choosing an efficient metal stamping partner with extended capabilities can add to your bottom line.
Eliminate Labor Challenges
Finding skilled labor willing to show up for work every day has become a growing challenge. Labor shortages can increase labor costs as companies compete to attract and retain workers. When you outsource, the issue of labor is shifted to your partner. Outsourcing stamped metal parts can provide cost savings by using the expertise of metal stamping professionals and avoiding the need for expensive in-house hiring and training.
Get Quality Stamped Metal Parts
Aside from understanding stamping equipment and metallurgy, an outsource partner will intuitively and quickly notice if meeting a spec will be a problem. They will have quality processes to ensure your component’s critical characteristics are produced within spec. When you outsource, you are not responsible for developing and maintaining quality processes for metal stamping.
Customization When You Need It
If you are stamping parts in-house, you are likely set up to produce specific parts. Your processes and procedures are in place for those parts, and it might be challenging to change and disrupt production with customization, particularly if you need to purchase special equipment or materials. For example, if you need a different coating or finish on a part, a metal stamper is versed in providing customized solutions and will offer a variety of surface finishes. Or if you want to have a part welded instead of riveting parts together, you won’t have to buy equipment and hire a welder; your metal stamping partner can accommodate the change.
Die-Matic Premier Provider of Stamped Metal Parts
At Die-Matic, we don’t just claim to understand progressive stamping; we’ve been perfecting it for over 60 years. Our expertise and experience in precision stamped parts are unparalleled, and we’re committed to providing you with the highest quality products at a competitive cost.
We pride ourselves on being a one-stop shop for all your stamping needs, from engineering and prototyping to secondary operations and assembly. Our team of skilled professionals works tirelessly to ensure that every detail is considered and every part is made to perfection.
But don’t just take our word for it. Our 98% on-time delivery rating speaks for itself, demonstrating our proven track record for punctually delivering products. And with our “just-in-case inventory,” you can rest assured that we’ll always have your back in case of any unexpected delays.
So why take chances with your next project? Choose the partner you can count on for expertise, reliability, and quality. Contact us today to take the first step toward a successful partnership.