Product category:
Subcontract machining and assembly services
News Release from: Flinchbaugh Engineering, Inc. | Subject: Outsourcing manufacturing service
Edited by the Manufacturingtalk Editorial
Team on 26 August 2005
Transfer production to a US firm that
lowers costs
Instead of US OEMs sending manufacturing off-shore - a Pennsylvania company says 'bring it here' and it will lower part prices and reduce labor and capital costs.
There is a profitable alternative available to companies considering abandoning at-risk or unproductive manufacturing lines It is Flinchbaugh Engineering, a York, Pennsylvania firm that acquires existing cells and, aided by engineering and production specialists, makes needed changes and keeps the lines productive
This article was originally published on Manufacturingtalk on 26 Jul 2005 at 8.00am (UK)
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Transfer manufacturing to stay in business
Transferring the manufacturing to an outsider lets a business focus on its core competencies - and can benefit from lower part prices, improved machine uptime and reduced labor and capital costs.
'Line transfer' manufacturing brings growth
Large scale manufacturers who have older equipment, or are considering off-shore manufacturing to save costs, are finding Flinchbaugh's Line Transfer option to be extremely successful.
According to Flinchbaugh sales engineer Jeff Sterner, the approach is especially valuable for companies being squeezed offshore.
"Transferring the manufacturing to us lets a business focus on its core competencies".
"Benefits include everything from lower part prices to improved machine uptime, reduced labor and capital costs and bottom line improvement." Among businesses that have recently turned to Flinchbaugh is Mack Truck, now Mack Volvo of Hagerstown, Maryland.
With a post-acquisition reorganisation, floor space was reallocated to accommodate new engine production.
As a result, there was insufficient room to manufacture valve lifters, a diesel-engine component historically produced there.
After reviewing the options, it was agreed that FEI would take over the line.
With its lean processes and 24/7 capacity, Flinchbaugh has become the sole source for the new part, reducing labor costs significantly in the process.
AxelTech International, a Wisconsin maker of large axle housings, was downsizing and wished to get rid of its manufacturing operation and focus on assembly.
Because Flinchbaugh already had equipment of the exact type used by AxelTech, transferring the Wisconsin company's line to Pennsylvania permitted FEI to efficiently meet increased demand, even as AxelTech physically downsized.
"We took their fixers, their tooling, and their CNC program, everything they had developed for that part, and transplanted it here".
"And we were able to meet their target price while improving their process," says Sterner.
He adds that Flinchbaugh is poised to acquire several new lines within the next 18 months.
* About Flinchbaugh Engineering - in business since 1978, Flinchbaugh Engineering has grown to include complete engineering and machining of component parts for diverse industries.
Line transfers are a key component of the company's growth.
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