Success Stories of Clients Who Have Transitioned with Align MFG
Align Manufacturing has successfully helped many clients transition their manufacturing out of China. These case studies highlight the challenges faced, the solutions provided, and the successful outcomes achieved.
Client 1: Success Story in Thailand
Investment Casting parts for use in the braided hose manufacturing industry
Overview of the Project and Its Challenges: This client, a manufacturer of machines used to produce hydraulic hoses, faced significant challenges due to the extremely tight tolerances required for these parts (+0.0000”, -0.0002”). The parts are produced using Lost Wax Investment Casting and are critical wear components that must withstand hundreds of revolutions per minute.
The project faced three main challenges: technical parameters, cost, and volume. The technical parameters included requirements for surface roughness testing, concentricity, and perpendicularity. Additionally, these machines are not mass-produced, with an estimated annual usage of around 200 pieces each, and had an aggressive target price. Many factories were unwilling to take on such a small order, as the typical minimum order quantity for parts of this size is around 1,000 pieces.
How Align Manufacturing Facilitated the Transition: The client had been manufacturing these parts in China for over 20 years but struggled to find a vendor outside of China who could meet the technical specifications and cost requirements. Align Manufacturing leveraged its relationships to place the parts with an AS9100 (Aerospace) certified foundry in Thailand. We worked closely with the client to discuss the correct CNC machining processes needed to achieve the required tolerances. Additionally, we proposed consolidating shipments with another order from a different factory in Northern Thailand, reducing shipping costs by thousands of dollars per shipment. This strategy involved combining shipments between our parts and a client's existing supplier in Thailand, offering further logistics savings.
Results and Benefits: By moving production out of China, the client saved tens of thousands of dollars annually on just these two lower volume parts, avoiding the 25% tariff. The consolidation strategy also significantly lowered shipping costs, enhancing overall cost efficiency.
Client 2: Success Story in Vietnam
High Pressure Die Casting Vent Release Valve
Overview of the Project and Its Challenges: This client, one of the largest gas station supply companies in the US, needed a Vent Release Valve, a critical component that prevents gasoline overflow and requires rigorous testing and government approval. Previously manufactured as a Sand Cast part in China, the quantities were high enough to consider High Pressure Die Casting (HPDC), which offers lower unit costs despite higher tooling expenses.
How Align Manufacturing Facilitated the Transition: Align Manufacturing proposed switching to HPDC to reduce long-term costs. Although initially hesitant about the high tooling costs, the client saw the value of the proposed approach after we demonstrated the long-term savings. The first sample testing was approved and the client subsequently requested design revisions. We modified the tooling and delivered an updated sample that also passed testing.
Results and Benefits: The transition from Sand Casting to HPDC halved the unit cost and eliminated the 301 tariff, saving the client hundreds of thousands of dollars annually. Additionally, the part now has a much better finish, enhancing its aesthetic appeal.
Client 3: Success Story in India
Ductile Iron Spill Containment System
Overview of the Project and Its Challenges: This client, a company in the petroleum industry, was looking for a new supplier for a Ductile Iron Spill Containment System, one of their highest volume products. This system consisted of two castings engineered with tight tolerances to fit within each other and required compatibility with vent fittings and various engineered gaskets, seals, and O-rings. The client wanted to match their China pricing, integrate design revisions to lower part weight and improve aesthetics, and meet a 1,000-hour Salt-Spray Test (SST) requirement.
Finding a coating subcontractor in Western India who could commit to 1,000-hour SST resistance on cast iron was challenging. Cast iron is prone to rust, and the desired hammertone finish added extra areas for moisture to pool. We leveraged our relationship with a partner's office to prescribe a coating protocol that met our requirements, including a zinc phosphate pre-treatment, e-coat primer, and hammertone powder coat, and identified a coating subcontractor who could meet these needs.
How Align Manufacturing Facilitated the Transition: We worked with the client through two rounds of mold revisions and performed three rounds of salt spray testing to ensure compliance with specifications. Our efforts ensured that the parts met all technical and aesthetic requirements.
Results and Benefits: By relocating production to India, the client achieved significant cost savings by eliminating the 301 tariffs. Additionally, establishing a basis for regular container exports increased opportunities for consolidation with additional cast iron products and other castings and forgings supplied from Western India.
Proven Success in Strategic Manufacturing Relocation
These case studies illustrate how Align Manufacturing has successfully guided various clients through the complex process of relocating their manufacturing operations from China to more favorable environments in Thailand, Vietnam, and India. By addressing specific challenges and leveraging local expertise, Align Manufacturing not only ensures a seamless transition but also achieves substantial cost savings and operational efficiencies for our clients in areas like component manufacturing and metal parts manufacturing.
About Align Manufacturing:
Align Manufacturing, headquartered in Singapore and with offices in Bangkok, specializes in delivering high-quality industrial production solutions. Our expertise ranges from intricate sand casting and robust forging to efficacious stamping and state-of-the-art precision machining. This diverse capability ensures that we meet the complex needs of our clients with meticulous attention to detail and seamless communication. Partner with Align Manufacturing for efficient and precise manufacturing outcomes tailored to your project's success.
Note:
This article is part of an ongoing series exploring why US-based companies need to move their manufacturing operations outside of China.
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