World Wide Competition In The Tool And Die Manufacturing Sector
In today’s competitive markets many Manufactured products are being outsourced to cheaper Asain competitors. This probably isn’t news to anyone who hasn’t been living in a cave, but the implications of it are still rippling through the older, more established manufacturing economies. One question still lingering is how much of the manufacturing base of the United States will be lost before the high water mark is hit. Another question is whether the jobs and business lost will ever return. Yet some companies like manufacturers of carbide tooling and draw dies will still be required nationally.
There was a time when the US was the new guy on the block taking over manufacturing from European countries. Making comparisons between the present day and manufacturing one hundred years ago is like comparing apples computers to oranges, but it does show that the United States can go one of two ways. The United States can survive as a major player in manufacturing or be marginalized, producing only specialty items. Germany for example has done very well, while other manufacturing countries have fared much, much worse.
No matter how much industrial sector is outsourced to foreign countries some manufacturing will remain in the US. There will always be a need for tool and die shops. Many of these tool and die shops are what would be called “mom and pop” operations. They do tooling work that is necessary to keep all the machines of society operating on an ad hock bases. What will become of tool and die manufactures that make parts for the general markets though? The answer to this question remains to be seen but some trends are emerging. The massive populations and low wages of India and China have already swamped many of these businesses, driving them out of the market and forcing them to close their doors. Since the start of the recession in 2008 many companies have become casualties of the slowdown throughout manufacturing and the cheaper foreign companies have taken their place. This has revealed one fact of manufacturing that people knowledgeable about industry have always know, cheaper doesn’t mean that it will cost less.
Cheaper Asain manufactured goods tend to be of a lower quality and this incurs many hidden costs to those that use them. The cost of replacing parts that wear out faster, the cost of idle machines and workers as foreign dies and tooling are replaced and hassle associated with defective parts all have real and very significant costs in the long run. The manufactures in the United States that survive the recession may actually find themselves in a strong place to compete as companies realize that the foreign products simply don’t measure up.
In order to receive the best quality of work possible many US companies have discovered that keeping their tool and die and other industrial needs in the American is the wisest choice. It allows them to work more closely with the company, reduces shipping times and perhaps most importantly saves money in the long run. An added benefit that shouldn’t be overlooked is that when American companies buy US goods it supports the US recovery and keeps desperately needed manufacturing within its borders.
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