Tripar received an RFQ from a US lighting client for 20,000 qty of 1287 bar hangers. Upon receiving the PO we noticed something strange: a shipping address to China!
Intrigued, we reached out to our client. They told they had all their component, assembly, and packaging is done offshore, importing just the final product. Upon reviewing their annual component costs, they spotted their offshore pricing being charged for bar hangers were far too high. Knowing Tripar’s strength as a lighting component manufacturer, they reached out to us for an RFQ to cross compare rates. Here’s the kicker: not only did our bar hangers cost less, but sufficiently so to justify the US client buying them from Canada, shipping it 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 in metal stamping.
1. Local 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. 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) with a high degree of automation. This results in the parts falling straight into a box with almost no labor. Since the overwhelming majority of the cost is material, and steel being a world commodity for which most countries pay similiar prices, Tripar was far more competitive than Asia.
If there are stamping projects, you might want to look at local options too. You may be pleasantly surprised by the outcomes than can be achieved locally.
