Imagine a beehive and picture a hundred bees flying around. These bees are on a mission and each have a task to accomplish. That's kind of like what a job shop is like, many workers doing a specific task but each task when put together creates a completed project. At Fluid Power Support we have 50 metal fabrication works and operators excelling at their job producing quality metal parts. If you were to walk into Fluid Power Supports main office you would be greeted by our friendly front office workers. Past the front office is the main shop. The shop is comprised of stations for maximum workflow. There is the laser station, welding station, cutting station, bending station, shearing station, powder coat station, and the list goes on and on. The main shop is 81,000 sq feet and grows almost every year.
The typical day-to-day of a Monday. At the start of the workday we have a company wide meeting to go over goals for the week, how last week went, what we can improve on, any safety issues, and how we can become safer. After the meeting the shop foreman assigns tasks for each worker. The workers check into each job through our job tracking system which measures productivity, time, and materials used. Workers are very familiar with the equipment they operate and have gone through training for safe operation. After each job is completed the workers checks out of the job on the computer and is assigned a new task. Material handlers move each piece to the next station until the piece is a completed part. When the parts are completed they are cleaned and packaged, usually on a pallet which is then shipped to the client.
We are happy to bid on your RFQ! Give Fluid Power Support a call at (573) 581-8200 or stop by our facility at 22398 Audrain Road 9824 Mexico, Missouri.
The question: To manufacture in-house or outsource manufacturing?
To answer the question of whether to manufacture yourself or to outsource manufacturing we need break down the benefits of each. Manufacturers need to weigh factors like turnaround time, equipment costs, labor costs, taxes, facility, proximity to distribution, and the list goes on and on...
Total Control- When you manufacture the whole product yourself you have total control. When things are going right total control of manufacturing a product is great and a seamless.
Turnaround Time- Turnaround time can be shorter when you manufacture a product yourself. You don’t have to rely on outside vendors to supply parts or completed products to you.
Outsourcing The Manufacturing
Diversification- Outsourcing manufacturing or parts of manufacturing helps reduce the risks while maintaining a quick turnaround on product delivery.
Equipment Costs- Outsourcing manufacturing in whole or part will reduce your upfront capital expenditures on costly equipment. For example a powder coat line can cost upwards of $1 million or more which would tie up your money for a long period of time. By outsourcing manufacturing and powder coating your company will save money by not having to invest in costly equipment. Another cost of equipment is maintenance. Each day equipment needs to be maintained to work efficiently and safely. Maintenance takes time and money that needs to be factored in. By outsourcing you effectively have reduced your liability exposure onto another company who has the high equipment and labor burden.
Labor Costs- Labor is one of the top expenses in manufacturing. As you know the expenses with employees are wage, taxes, insurance, training and benefits. In many regions finding qualified skilled employees is becoming a challenge for manufacturers. Manufacturing is becoming more technical and the workforce is not keeping up. By outsourcing you do not have to worry about finding a skilled workforce.
Manufacturing Facility- Manufacturing typically takes an ample amount of floor space due to the large equipment footprint and considering the safety of employees and optimal workflow. Buildings are expensive to build and maintain. You can have a smaller building by outsourcing.
Proximity To Distribution- For example if your company headquarters are on the East coast but your distribution warehouse is located centrally in the United States it makes sense to have manufacturing close to your distribution to save on turnaround time and transportation costs.
Turnaround Time- Outsourcing can reduce turnaround time by ensuring that parts or whole products get manufactured on time every time.
Outsourcing manufacturing can save your company money and reduce the turnaround time. It may make sense for your company to outsource the whole part, some of the parts, or just the powder coating/assembly. Having strong partners is usually a smart position to take.
Fluid Power Support located in Mexico, Missouri is centrally positioned in the United States and is only an hour and a half drive from St. Louis, Missouri. We’re a large metal fabrication and production powder coating company and would be happy to bid on your jobs. Feel free to call us at (573) 581-8200.