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Case Studies

Reshoring: From Asia to Canada

Tripar received an RFQ from a US lighting based OEM for 20,000 qty of 1287 bar hangers. Upon receiving the PO we noticed something weird: a shipping address to China.

1287 bar hanger recessed lighting

Intrigued, we reached out to our client. They told they had all their components, assembly, and packaging done offshore, importing only the final product. Upon reviewing their annual components costs, they spotted their offshore pricing being charged for bar hangers where way too high. Knowing Tripar’s strength as a lighting component manufacturer, they reached out to us for an RFQ. Not only did our bar hangers cost less, but sufficiently so to justify the US OEM buying them from us, paying for shipping to China, at which point 2 sets were added to each boxed assembly, then shipped back into the US! This is a perfect example of successful reshoring and Tripar’s competitiveness.

1. Reshoring: Besides this US based OEM reverting back to Tripar, a North American source for its bar hangers, it is studying doing so for the reminder of the components used in this and other assemblies. Such reshoring not only greatly reduces lead time, but also order sizes, inventories, warehouse space, and risk by not having to predict needs 12-14 weeks ahead of offshore deliveries. Lastly, most goods manufactured in North America fall under the US-Mexico-Canada Agreement (USMCA), which permits duty & hassle free entry and trade between the three member countries.

2. Tripar’s competitiveness: Achieved in this case through the use of a progressive die that pumps out a bar hanger set on every stroke (one male and one female bar hanger), and a high degree of automation. This results in the parts falling straight into a box with very little labor. Since the overwhelming majority of the cost is in the material, and steel being a world commodity for which most countries pay almost the same price, Tripar was able to be as competitive as Asia!

Now if you’re looking for sheet metal components and to reduce risk, you may be pleasantly surprised at the prices of your in-shoring fabrication partners. Especially when it comes to metal stamping, Tripar is very competitively priced, sometimes better priced than Asia in complex parts.

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