Reshoring Metal Manufacturing to the USA
A Domestic Supply Chain Solution
How COMTEC helped move the customer’s powder metal gear production from Taiwan to Pennsylvania, establishing a domestic manufacturing source that could meet existing quality, production, and cost requirements.
Solving For Lead Time, Price & Quality
For manufacturers sourcing metal components overseas, reshoring can provide a way to strengthen supply chain reliability while increasing access to domestic production capacity. But moving manufacturing to the United States only makes sense when a domestic supplier can meet expectations for quality, volume, delivery, and cost.
One manufacturer found that opportunity with Vision Quality Components (VQC), part of COMTEC's family of companies.
The customer had been sourcing powder metal gears from Taiwan while also working with a U.S. supplier in Indiana. When the domestic supplier began experiencing delivery problems and labor challenges, the customer needed another reliable manufacturing source.
VQC evaluated the existing powder metal gears and demonstrated that they could be made in the USA at its Pennsylvania facility at pricing competitive with the Taiwanese supplier.
After approximately six months of discussions and qualification work, the customer transferred its tooling to Pennsylvania, establishing a qualified American manufacturing source and a more reliable supply chain solution.
The Challenge
Finding a Reliable Domestic Manufacturing Source
The customer already had two sources for its powder metal gears, but each presented different supply chain considerations.
A portion of production was being sourced from Taiwan. The company also had a U.S. supplier in Indiana that was experiencing labor challenges and difficulty meeting delivery requirements.
The customer needed additional manufacturing capacity, but simply finding another supplier wasn't enough. Any new source had to be capable of producing the existing gears to the required engineering specifications while remaining cost-competitive.
Vision evaluated the customer's current powder metal components to determine whether production could be successfully moved to its Pennsylvania facility.
The evaluation addressed the factors that matter when reshoring established metal components: manufacturing capability, available capacity, quality requirements, tooling, production volume, and price.
The Solution
Made in the USA at Competitive Pricing
One of the biggest considerations when reshoring metal manufacturing is cost.
VQC demonstrated that the customer's powder metal gears could be manufactured in Pennsylvania at pricing competitive with the existing Taiwanese supplier. That gave the customer an opportunity to increase its use of American manufacturing without sacrificing the economics of the program.
Building confidence in a new manufacturing source still takes time.
Over approximately six months, VQC worked with the customer to evaluate the components, discuss manufacturing requirements, and demonstrate its ability to support the program. Once the customer was confident in the transition, the existing tooling was transferred to Pennsylvania.
Production began with approximately five higher-volume gears along with several lower-volume gears.
The reshoring effort also had room to expand. An additional three or four gears were awaiting PPAP approval for a future transfer from Taiwan.
Validating Quality Through PPAP
Moving tooling to a U.S. facility was only one part of the reshoring process. The components also had to be qualified for production.
VQC completed the required PPAP process to verify that its manufacturing process could consistently meet the customer's engineering and quality requirements.
This included documentation and verification of runouts, tolerances, and other specified characteristics.
The PPAP process provided the customer with documented confidence that its new domestic source could manufacture the powder metal gears to the required specifications.
For companies considering reshoring, this qualification process is an important part of establishing a dependable domestic supply chain. A U.S. location alone isn't enough. The supplier still has to demonstrate that its processes, quality controls, and manufacturing capabilities can support the application.
The Result: A Stronger Domestic Supply Chain
By transferring tooling and production to Pennsylvania, the customer gained another qualified U.S. source for its powder metal gears.
The project provided several important supply chain advantages, including more reliable delivery, available domestic production capacity, competitive pricing, and manufacturing that met the customer's engineering and quality requirements.
It also provided a path for additional components to move from Taiwan to U.S. production as they completed the PPAP approval process.
Most importantly, the customer didn't have to choose between American manufacturing and competitive pricing. VQC demonstrated that the components could be made in the USA while remaining competitive with the customer's existing Taiwanese source.
For manufacturers facing overseas sourcing challenges, limited domestic capacity, supplier delivery problems, or other supply chain disruptions, reshoring can provide another option. The right domestic manufacturing partner can help evaluate existing components, determine whether they can be produced competitively in the United States, and complete the qualification work required to transition production.
Considering Reshoring Your Metal Components?
Reshoring metal manufacturing to the USA involves more than finding a supplier with available capacity. Pricing, tooling, tolerances, production volumes, quality documentation, and PPAP requirements all need to be evaluated before making the move.
If you're looking to reshore metal components, add a qualified U.S. source, or reduce your reliance on overseas manufacturing, contact COMTEC to discuss your application.