Contract Manufacturing Archives | Staub Precision Machine, Inc.

The Great American Reshoring: Why OEMs are Returning for Precision CNC Machining

Staub Precision Machine Inc. — Wed, 28 Jan 2026 16:35:58 +0000

A fundamental, strategic realignment is occurring within the global manufacturing community. Original Equipment Manufacturers (OEMs), once primarily focused on minimizing unit costs through offshoring, are increasingly shifting their focus to resilience, quality, and control by bringing their precision CNC machining needs back to the United States. This movement, known as reshoring, is not merely a reaction to recent crises but a calculated business decision driven by a comprehensive evaluation of the total cost of ownership, which often makes U.S. manufacturing more cost-competitive than initially assumed. This trend presents a significant opportunity for high-tech precision machine shops across the US to build robust, localized partnerships and reassert American manufacturing excellence.

Supply Chain Resilience: from Strategic Advantage to Operational Requirement

When manufacturing is concentrated in a single offshore region, even a localized disruption can cascade across an entire supply chain. These offshoring strategies limit flexibility, reduce visibility, and leave businesses with few viable contingency options when a disruption occurs. Recent global events—including pandemics, geopolitical conflicts, natural disasters, labor shortages, regulatory changes, and port congestion— have repeatedly caused major shipping delays and widespread production shutdowns, and have exposed just how fragile offshore distributed supply chains can be.

Key Resilience Drivers Include:

Reduced Vulnerability to Disruption: Organizations that once prioritized the lowest unit cost are now confronting the hidden operational, financial, and reputational risks embedded in offshore supply networks. This has shifted their focus to total value, risk mitigation, and operational excellence. By partnering with a high-tech precision machine shop in the United States, OEMs are making a vital investment in supply chain resilience, superior quality assurance, and the robust protection of their innovation, driving the next era of American manufacturing.

Improved Cash Flow and Responsiveness: Ultimately, these shorter US-based supply lines optimize logistics and cash flow. Parts can be delivered in days or weeks, rather than the months required for international shipping and customs clearance, enabling the implementation of lean manufacturing and “just-in-time” (JIT) inventory systems. This reduces the need for expensive inventory buffers, improves cash flow, and enhances overall operational speed and responsiveness.

Reduced “Inventory on the Water” Risks: Heavy reliance on ocean freight results in weeks or even months of inventory tied up in transit, effectively immobilizing working capital and increasing exposure to forecasting errors. Long transit times restrict a company’s ability to respond quickly to changes in customer demand, design updates, or regulatory requirements. In addition, quality issues discovered upon arrival can have severe consequences—if a defect is identified in a single shipment, it may necessitate recalling, reworking, or scrapping large volumes of in-transit and warehouse inventory, significantly increasing costs and operational complexity.

“As a precision machine manufacturer, we work with companies who have come to us after a manufacturing fail overseas. More often than not, the failure wasn’t because of machining complexity, but because offshore lead times eliminate any margin for recovery when something changes,” said Cameron May, General Manager at Staub Precision Machine.

These challenges have elevated supply chain flexibility from a strategic advantage to an operational necessity, prompting many organizations to reassess sourcing strategies, supplier proximity, and manufacturing control.

The Total Cost of Ownership Reassessment

Staub Precision Machine has continually invested in cutting-edge CNC technology, becoming a machine shop The perceived cost advantage of overseas CNC manufacturing for precision-machined components often erodes quickly when subjected to a comprehensive Total Cost of Ownership analysis. While offshore quotes may show a lower piece price, they frequently exclude the downstream costs associated with quality assurance, logistics, engineering changes, and supply chain risk—factors that are particularly critical for tight-tolerance, high-mix, or application-critical parts. These “hidden” costs add up rapidly. “By the time customers account for engineering rework, inspection overhead, shipping, transport, tariffs and the logistics risk, the piece price is no longer a deciding factor,” said May.

Primary contributors to TCO erosion include:

Rising Overseas Wages & Tariffs: Labor rates in historically low-cost manufacturing regions have steadily increased, particularly for skilled CNC operators, programmers, and quality technicians capable of producing close-tolerance components. When added to fluctuating tariffs, duties, customs brokerage fees, and compliance requirements, the initial unit-cost difference narrows or disappears entirely.

Regulatory & Traceability: For customers with regulated or traceability-driven applications, the administrative burden and cost of ensuring offshore compliance further compounds the issue.

Logistics Volatility: Offshore sourcing often requires long, inflexible supply lines. Volatile fuel prices, container imbalances, port congestion, and extended transit times can lead to high, unpredictable freight costs. More importantly, long lead times reduce a customer’s ability to respond to shifts in demand, engineering revisions, or production ramp-ups. A single missed delivery window can shut down assembly lines and delay product launches, resulting in additional costs that far exceed any initial savings in piece price.

Hidden Manufacturing & Quality Costs:

Managing quality issues across multiple time zones adds significant overhead. Nonconforming parts discovered upon receipt often require lengthy root cause analysis, rework, or full-lot rejection, with limited recourse once parts have crossed an ocean. Communication delays slow corrective actions, while engineering changes or tolerance clarifications can take weeks to implement. Many customers are forced to absorb additional costs related to on-site inspections, third-party audits, expedited freight, or overseas travel to maintain quality standards.

In contrast, a domestic precision machine shop enables direct collaboration between engineering, production, and quality teams, accelerating problem resolution and minimizing scrap and downtime.

For precision components where performance, repeatability, and delivery reliability matter, the value of a capable U.S.-based machining partner extends well beyond the quoted price per part. By fully quantifying the Total Cost of Ownership, factors such as logistics risk, quality management, engineering responsiveness, and supply chain resilience once again demonstrate that domestic CNC machining is more cost-competitive.

Speed to Market and Agility

In fast-paced, competitive markets, speed to market is a technical and operational differentiator. OEMs must move quickly from concept to prototype and into production, and that responsiveness is heavily influenced by their CNC machining partner’s capabilities. A domestic precision machine shop enables early Design for Manufacturability and Assembly (DFMA) collaboration, allowing engineers to work directly with CNC programmers and machinists to optimize geometry, tolerances, materials, and fixturing before production begins. This upfront alignment shortens development cycles, reduces the risk of tolerance stack-up, and minimizes costly design revisions.

Proximity also drives production agility. Shorter supply chains allow for faster prototyping, expedited first-article inspection, and rapid implementation of engineering changes during validation and ramp-up. A proficient CNC machine shop with flexible capacity, multi-axis equipment, and in-house programming can quickly adjust volumes, modify batch sizes, and respond to demand fluctuations without the constraints of long lead times or rigid schedules. For customers manufacturing tight-tolerance or complex components, this agility reduces program risk and accelerates time to revenue without sacrificing quality or delivery performance. “Most tolerance and quality issues are preventable when machinists and programmers are involved before the design is solidified,” said Gatlin Walters, Quality Control Manager at Staub Precision Machine.

In contrast, international supply chains inherently lack this level of agility. Extended transit times, language barriers, and time-zone differences slow communication and delay corrective action. A single design change or quality issue can halt progress for weeks, undermining development timelines and delaying market entry. For customers manufacturing precision-critical parts, the ability to respond quickly and decisively often outweighs nominal cost differences, making speed and agility central considerations when selecting a CNC machining partner.

Unmatched Quality Control and Consistency

In precision-driven industries such as aerospace, medical devices, defense, and advanced automation, quality is not a variable—it is a requirement engineered into every process. For customers sourcing CNC-machined components, consistent dimensional accuracy, material integrity, and repeatability across production runs are essential to system performance, regulatory compliance, and long-term reliability. A qualified precision machine shop builds quality into the manufacturing process rather than relying solely on final inspection.

Core Quality Differentiators:

Rigorous Standards and Quality Process Control: U.S.-based precision machine shops typically operate under highly structured quality management systems, including ISO 9001 (manufacturing), AS9100 (aerospace), and ISO 13485 (medical applications). These frameworks mandate documented work instructions, controlled revision management, validated machining processes, and formal corrective and preventive action (CAPA) systems. From raw material certification and lot traceability to in-process inspection and final acceptance, every step is governed by repeatable, auditable procedures. For customers, this translates into reduced variability, predictable outcomes, and confidence that parts will perform consistently across multiple builds and program lifecycles. “Final inspection does not create quality – process validation and control do,” said Walters.

Direct Oversight and Collaboration: Local manufacturing enables direct, real-time engagement between the OEM’s engineering, quality, and procurement teams and the machine shop’s production and inspection staff. Customers can participate in first-article inspections, review inspection reports on the shop floor, and validate critical-to-quality features before production ramps up. This proximity accelerates issue resolution, clarifies GD&T intent, and reduces the risk of tolerance misinterpretation. When questions arise regarding surface finish, datum structure, or functional fit, they can be addressed immediately—preventing the costly rework and schedule delays often associated with remote suppliers.

Advanced Metrology and Inspection Infrastructure: Precision machine shops invest heavily in advanced inspection technologies to verify increasingly complex part geometries. Coordinate Measuring Machines (CMMs), optical comparators, laser scanners, and in-process probing systems allow for accurate measurement of tight tolerances—often down to ±0.0002″—as well as true position, profile, and concentricity requirements. Statistical Process Control (SPC) is frequently applied to critical dimensions to monitor trends and ensure long-term process stability. For customers, this level of advanced metrology ensures that parts meet both dimensional and functional requirements, even in high-mix or low-volume production environments.

Together, these quality-focused practices deliver a level of consistency and reliability that is difficult to replicate in extended, offshore supply chains. Because failure is not an option, partnering with a precision CNC machine shop that prioritizes robust quality systems and an advanced inspection infrastructure is a strategic necessity, not a premium feature.

Enhanced Intellectual Property (IP) Protection

For high-tech OEMs, intellectual property extends beyond patents and drawings to include CAD/CAM data, CNC programs, custom fixturing, and proprietary machining processes. Manufacturing with a U.S.-based precision machine shop places these assets under a well-defined legal and contractual framework, supported by enforceable NDAs, controlled data access, and documented process controls. This significantly reduces the risk of unauthorized data sharing, reverse engineering, or unapproved secondary production runs that can occur in less regulated offshore environments.

Domestic manufacturing also provides greater visibility and traceability throughout the production process. OEMs can maintain direct oversight of machining methods, process development, and revision control while ensuring material certifications and serialized part tracking are properly documented. This level of control mitigates the risk of counterfeiting and protects proprietary know-how, making IP protection not just a legal safeguard, but a critical operational advantage when selecting a CNC machining partner. “The real intellectual property risk isn’t the drawing – it’s the machining strategy and process knowledge behind it. And that’s the expertise you will find leading your project at Staub,” said May.

Seamless Communication and Engineering Collaboration

Effective CNC manufacturing depends on precise, timely communication—particularly when parts involve complex geometries, tight tolerances, advanced materials, or challenging machining strategies. Time zone differences and language barriers common in offshore sourcing often slow decision-making and introduce ambiguity into critical engineering discussions.

A domestic partnership ensures:

Real-time Collaboration: Engineers from both the OEM and the machine shop can collaborate seamlessly during standard business hours, accelerating troubleshooting, design iteration, and prototyping. This proximity allows rapid alignment on Design for Manufacturability & Assembly (DFMA), tooling selection, fixturing strategies, and machining methods such as hard milling, multi-axis contouring, or high-speed machining. Questions related to Geometric Dimensioning and Tolerancing (GD&T) interpretation, datum schemes, surface finish requirements, or material condition can be resolved immediately—often with the part, fixture, or CMM report on hand. Engineering changes, tolerance refinements, or process adjustments can be implemented and validated quickly, reducing iteration cycles and preventing costly scrap or rework.

Clarity and Collaboration: Technical jargon and industry-specific terminology (like “hard milling”) are clearly understood, leading to fewer miscommunications and costly rework. Clear communication also ensures that technical specificity is preserved throughout the manufacturing process. Industry-specific terminology, material callouts, heat-treat conditions, and inspection requirements are fully understood and correctly executed. For customers, this level of collaboration translates into fewer assumptions, faster problem resolution, and higher confidence that parts will be produced exactly as designed, making communication effectiveness a critical factor when selecting a precision CNC machining partner.

Optimized Logistics and Cash Flow

Domestic supply lines fundamentally reshape both logistics efficiency and working capital management for OEMs sourcing precision-machined components.

Shorter Lead Times: When parts are produced by a nearby CNC machine shop, lead times are measured in days or weeks rather than the months required for overseas production, ocean freight, and customs clearance. This compressed timeline enables faster responses to demand fluctuations, engineering changes, and production ramp-ups, while reducing the risk of schedule disruptions caused by port congestion, customs delays, or geopolitical events.

Reduced Inventory Costs: From a financial and operational standpoint, shorter lead times support lean manufacturing strategies and just-in-time (JIT) inventory models. OEMs can order smaller batch sizes that align with actual consumption rather than forecasting months in advance, significantly reducing safety stock and inventory carrying costs. Cash is no longer tied up in in-transit inventory, and exposure to obsolescence from design revisions or program changes is minimized.

The improved cash flow and supply chain visibility often outweigh nominal piece-price differences, making domestic CNC machining a strategic advantage for both operational agility and financial positioning.

Conclusion: A Strategic Investment in the Future

The recent shift in the manufacturing landscape has OEMs moving beyond a singular focus of low unit price and embracing a more strategic approach focused on total value, risk mitigation, and operational excellence. By partnering with a high-tech precision machine shop here in the United States, OEMs are making a vital investment in supply chain resilience, superior quality assurance, and the robust protection of their intellectual property.

Staub Precision Machine is committed to leveraging advanced technology and a highly skilled workforce to deliver unparalleled precision, reliability, and value, leading the next era of American manufacturing innovation.

The post The Great American Reshoring: Why OEMs are Returning for Precision CNC Machining appeared first on Staub Precision Machine, Inc..

Why OEMs Choose Onshoring in Today’s Global Climate

Staub Precision Machine Inc. — Fri, 06 Sep 2024 12:59:07 +0000

Many US-based corporations that previously outsourced their production to places overseas are now looking towards sourcing production back to the United States, a process often referred to as reshoring or onshoring. Over the past few decades, manufacturing has moved from more developed economies like the United States to developing countries like China. However, ample calls for “Made in the USA” products have been louder over the past few years. The pandemic reaffirmed the need to source domestically, as offshored components became increasingly scarce as pandemic-related lockdowns negatively affected supply chains.

While the US machining industry had already seen some original equipment manufacturers (OEMs) talking about onshoring manufacturing in the late 2010s, the supply chain debacles of 2020 greatly encouraged this. OEMs will unlikely move all their machining business back to domestic machining companies, as globalization has created an interconnected web of manufacturers and distributors. Yet supply chains remain unstable with current sanctions, trade wars, and major military conflicts, so onshoring manufacturing is becoming increasingly attractive to many US-based OEMs.

Why Onshoring Manufacturing Makes Sense

Once seen as a panacea to lower labor and other production costs, US manufacturers offshored much of their production from the 1980s onwards. However, as costs rise in other industrialized countries, the economics have shifted, making it less cost-effective to offshore production. Perhaps more importantly, the changing political climate and high tariffs for Chinese components have made offshoring to China less tenable. Manufacturing by OEMs has been moving back, especially for high-precision machining of components, as accuracy, labor, shipping, and quality have made the cost of doing business within the United States much more competitive.

Onshoring manufacturing doesn’t just mean bringing production back to domestic suppliers. It also means homegrown US companies that didn’t move production overseas are expanding their operations locally, either by nearshoring – moving production to neighboring countries – or onshoring. Manufacturing giant China seems to be losing some of its dominance as a destination for OEM manufacturing as US parts producers automate their operations, and problems inherent in outsourcing to overseas manufacturers have become increasingly apparent.

Resolving Supply Chain Issues by Onshoring Manufacturing

The world saw logistics and production issues contribute to broken supply chains in 2020, as factories throughout China were often locked down for weeks. Since so much global production had moved to China, this led to global shortages of various machined and other components. Added to this were higher costs for shipping, which inflated prices not only for parts but also for finished products. Onshoring manufacturing closer to end markets reduces this risk while saving time and transport costs. When an OEM’s components are produced closer to where they’re needed, it becomes more cost-effective for onshore manufacturing.

Though the 2020 pandemic lockdowns disrupted global supply chains considerably, conflict in Ukraine has also caused considerable disruption to supply chains, along with the imposition of trade restrictions with certain overseas producers. While OEMs will still need to deal with events affecting supply chains domestically, like chronic labor shortages and natural disasters, some have decided that the problems inherent in overseas production now outweigh any risks associated with onshoring manufacturing. Yet, there will always be a need to offshoot components like computer chips, LEDs, and other electronics, which are almost exclusively made outside the United States.

Trade Restrictions

Another factor played out over the past few years is the trade restrictions that have strained the relationship between the United States and countries with whom they trade, including the European Union and other Asian countries. Though the current US administration has pulled back from vocal support for trade wars, there continue to be considerable restrictions in trade concerning precision machined parts and machinery. Though China is not a source for most precision components, the current US administration has placed even more restrictions regarding technology transfers, making Chinese companies less useful as partners for OEMs that require precision machining.

Technology & Location

The key to onshoring manufacturing for OEMs, especially when machining precision components, involves cutting-edge technology. New technologies like artificial intelligence (AI), machine learning, and the Internet of Things (IoT) drive innovation, giving US machining companies an edge over those in many developing countries. For this reason, many companies seek companies positioned in or near high-tech corridors throughout the country when looking into onshoring. According to The Boyd Company – a location consulting firm that works with aerospace manufacturers – many OEMs look first at areas along important interstate highways or near transit hubs when selecting sites for onshoring. Manufacturing companies need to be near areas with considerable infrastructure and close to labor markets that can provide a reliable pool of highly skilled workers.

Why ESG is Important

Another reason some OEMs are moving away from offshoring in developing countries involves the need for ESG (environmental social governance) values. As many consumers have made these standards necessary in their purchasing decisions, manufacturers have looked at ways to improve their ESG standing. This includes shrinking their carbon footprint by onshoring manufacturing to truncate supply chains, which also has the added effect of reducing time in transit, shipping costs, and lead times for production.

Onshoring Manufacturing: Competitive Costs & Better Quality

Some of the most frequent issues OEMs have seen with machining from offshore companies include poor accuracy, low levels of durability, lack of stability, and frequent part failures. This has encouraged OEMs in industries that require high-precision parts to source these from more reliable partners. Often, manufacturers need to go to processing facilities to address production issues, which for offshored contracts means the expense of international travel and the added trouble of acquiring visas. This becomes even more difficult when there’s a language barrier and the supplier is a dozen or more time zones away.

While a considerable amount of machining will likely remain in developing countries, much of this is low-end or mid-level. US-based manufacturers have concentrated on more advanced methods of manufacturing that enable domestic machining companies to produce high-quality components at competitive prices. This is due to various technologies that promote automation and data analytics, which are utilized to optimize production. Onshoring manufacturing processes is increasingly seen as a means to obtain high-quality components with tight tolerances for the aerospace, automotive, defense, healthcare, and other industries that require precision parts.

Conflicts, Sanctions & Onshoring Manufacturing

The close relationship between China and Russia, especially after the latter invaded Ukraine, also brought talk of “friend-shoring” by US Treasury Secretary Janet Yellen and others. This involves moving manufacturing connections and reconfiguring logistical nodes to traditionally more friendly and reliable countries. Onshoring manufacturing of high-precision components while friend-shoring others can create win-win situations for OEMs and their partners in production.

While COVID exposed the weaknesses in the global supply chain, Russia’s invasion of Ukraine and the resulting sanctions created a nightmare scenario for those doing business with Chinese partners. China’s close relationship with Russia has already created concerns about sanctioned technology making its way to the Russian military units in Ukraine via China. As a result, sanctions have expanded to several Chinese companies, and there have been claims that Chinese components are finding their way into Russian weapons systems.

Sanctions have expanded to limit this, supported by Ukraine’s allies, including the United States. Onshoring manufacturing will eliminate the chance of OEMs doing business with sanctioned Chinese companies. Yet other concerns exist about sourcing critical parts from China, further encouraging onshoring. Manufacturing in China means potentially doing business with entities involved in committing human rights violations against the ethnic Uyghur population in western China.

Contracting with Staub for Onshoring Manufacturing

While OEMs reestablish relationships with domestic partners to return manufacturing to the United States, companies like Staub Precision Machine continue to innovate. If your company is considering onshoring manufacturing capabilities, Staub will meet and surpass expectations. To minimize risk from incomplete supply chains, consider Staub for contract manufacturing of the highest quality precision parts, with numerous other benefits for our partners.

Staub provides collaborative solutions with our leading-edge equipment and top-notch customer service. To assist with your onshoring manufacturing needs, we use automated processes and a dedicated workforce’s expertise to provide end-use components, finishing, and support services. Staub is a partner manufacturers can count on for high-volume production. To learn more about our capabilities and how we can help with your project, contact the machining experts at Staub today.

The post Why OEMs Choose Onshoring in Today’s Global Climate appeared first on Staub Precision Machine, Inc..

How Automation Machining Solves Part Scaling Challenges

Staub Precision Machine Inc. — Wed, 29 May 2024 11:39:32 +0000

Industrial Automation: Production Scaling Challenges for Parts

Scaling production is among the most difficult challenges that parts manufacturers face. While providing quality goods and services is a natural consequence, it also stretches a company’s capabilities to meet this increased demand. While growth in demand is desirable, it can also lead to production bottlenecks, longer wait times for customers, and even lower-quality components. Having scalable systems already in place gives manufacturers greater agility in the marketplace. With automation, production growth is much easier and can happen quickly.

Some specific ways in which automation benefits parts production include:

Aiding scalability by allowing speedier and round-the-clock production.
Building high-quality prototypes through CAD (computer-aided design) and CAM (computer-aided manufacturing) software.
Decreasing the possibility of human error, which can lead to downtime or other production delays.
Enabling predictive maintenance by deploying monitoring equipment and software that optimizes production.
Improving quality by reducing the need for manual labor, especially when it comes to dangerous or repetitive tasks.
Increasing output while also reducing labor costs, leading to higher profits.
Making the fabrication process more efficient and sustainable while reducing energy usage and waste.
Permitting companies to bring products to market more quickly.
Reducing the chance of workplace accidents by using sensors that automatically shut down production when hazards disrupt manufacturing processes.

Automated systems require significant investment, however. It’s not just the cost of the new technologies but also concerns expenses for employee training and adjusting production processes to keep pace with demand. Understanding how to use digital technology when scaling parts manufacturing is even more important after the pandemic, aggravating some of the business’s challenges. COVID showed how fragile the world’s supply chains were, bringing inflation rates not seen in decades. By increasing automation, production challenges involving material usage, production quality, and overall efficiency can be better met.

Material Usage

One way automated machining processes support production scaling involves how materials are used. Raw materials are a major expense for CNC machining operations, sometimes as much as half the cost of the parts manufacturing process, depending on the type of material used. Using automation, production processes can be streamlined so less material gets wasted, bringing down overall costs. As an example of programmable automation, production with CNC technology enables machine shops to conserve better the raw materials used to fabricate components.

Material waste is inevitable in any machine shop, but the amount produced can be mitigated through properly applied automation. Production involving machining will naturally produce a certain amount of scrap and defective components, but automated solutions greatly reduce this. By digitizing processes, manufacturers can make parts production more efficient. In today’s smart factories, sensors gather data and send it to the machine’s controller, where the information is processed. Analytics software then evaluates this data and produces reports that help make decisions, leading to less waste and fewer defects.

Production Quality

The quality of machined parts closely aligns with material waste, and it, too, benefits from automation. Production quality tends to drop when companies scale up component fabrication, often resulting in increased scrap generation and reduced component quality, often leading to more reworking. Reworking a part requires additional time and expense, raising production costs negatively affecting profitability. With automation, production lines see fewer errors or inconsistencies in their components.

Production lines incorporating digital elements provide greater control over manufacturing processes when used with robots or other automation types. This helps ensure quality doesn’t suffer when a company scales up production. Automation also benefits from analytics software, which is used with real-time data from smart sensors to help identify quality issues earlier in the parts fabrication process. This way, component defects can be easily identified, and quality issues can be addressed sooner.

Production can be scaled using automation so that more components are built in a set period. While quicker throughput means more parts can be produced faster, speed isn’t the only improvement automation brings. Production quality also improves with the use of automated systems beyond the idea of simple quality control. CNC machining processes are known for their precision, especially with 5-axis CNC machines that can make parts with the tightest of tolerances quickly and accurately.

Modern machining software helps augment component quality by:

Better controlling tool paths to increase efficiency while also leading to less tooling wear.
Calculating machining parameters from metrological data collected over time to improve precision in machining processes.
Monitoring and predicting tool wear through tool imaging and analysis of factors like depth of cuts, feed rates, forces applied, and spindle speeds.
Optimizing processing parameters to enhance part quality by predicting the workpiece’s surface roughness and deformation.
Predicting machining parameters such as the age of the tool, the force used for cutting, and surface roughness to determine inputs like feed rates, depth of cuts, and cutting speed.

For product manufacturers who choose to contract out machining work to third parties, it’s important to choose a partner with experience. While a contract manufacturer must have the right automation, producing precision parts relies on that manufacturer’s expertise. Though automated facilities require fewer workers, their staff must have sufficient expertise to work with these complex machines to produce parts of the desired quality.

Overall Efficiency

Automation augments the efficiency of CNC machining. Production scaling increases costs like raw materials and labor, which comprise most of the costs involved in producing parts. As previously mentioned, automation helps mitigate waste while improving both quality and speed of fabrication, which are important when a parts manufacturer wants to scale up production. Automation is the key to overall efficiency in modern machine shops, as automated equipment performs tasks quicker and more efficiently than people, increasing output while reducing production times.

Labor is one area in which automation can improve efficiency while reducing costs. Solutions like robots and cobots (robots that can work safely alongside human workers) can lower the overall labor cost involved in parts fabrication by automating tasks. Using automation, production with CNC technology helps streamline all process elements. Automation helps machine shops scale more easily to meet customer needs by allowing programmed production overnight and on weekends and holidays. This exponentially expands the amount of work a machine shop can produce without hiring extra staff.

With such a tight labor market in the United States and no foreseeable end to this labor shortage, automated machine shops are well-positioned in the parts manufacturing marketplace. With the efficiency brought by automation, production won’t suffer nearly as much from turnover caused by workers leaving for other employment opportunities. Training costs will also be lower, as fewer workers need training.

However, efficiency goes beyond labor or materials, though these are the chief expenses for component manufacturers. Beyond production, automation can benefit a company’s logistics as well. While production quality is extremely important, getting parts to customers expediently is just as important. For manufacturers looking to scale their operations, logistical concerns are paramount, as products can’t be built without parts. A digital technology known as blockchain aids with managing inventory, allowing companies to track shipped components at points along the supply chain easily. For this reason, a manufacturer looking to scale up parts production should ensure that any machine shop with whom they partner has solid logistical support.

In tandem with logistics, robust and responsive customer service is needed. Delayed orders cause problems for any manufacturer, but these can be exacerbated by poor customer service. Customer service can be further enhanced through automation. Production is the core capacity of any machine shop, but it’s integral that concerns be addressed expeditiously. Scaling makes customer service challenging, but AI has become ubiquitous on company websites, responding to customer questions and easing the burden on customer service representatives. Automated parts ordering and checking if components are in stock in real-time also benefit customers.

Automation aids efficiency throughout the production process and even beyond it, enabling quicker processing of orders and management of inventories. Efficiency benefits the customers they serve and positions a company for smoother growth. Technology helps companies scale, whether it’s their own or that of their partners. Optimization of production processes through reducing waste, promoting quality parts, and ensuring an efficient supply chain are three keys that can help manufacturers scale up their operations while also giving them an edge over their competition.

Staub Automation in the Production of Parts

Since the 1980s, Staub Precision Machine Inc. has steadily adopted automation in its production. Sometimes referred to as smart machining by manufacturers, the use of automation in every stage of production is coming to fruition. Production challenges associated with scaling are easier to handle with Staub’s automated systems, and we have the data to prove it. Staub has pursued the idea of lights-out manufacturing since before it was a catchphrase. Today, we take great pride in our ability to produce precision parts successfully without the need for onsite workers. To learn more about our automated capabilities, contact the CNC machining experts at Staub.

The post How Automation Machining Solves Part Scaling Challenges appeared first on Staub Precision Machine, Inc..

How Contract Manufacturing Can Impact Your Bottom Line

Staub Precision Machine Inc. — Fri, 01 Mar 2024 12:37:48 +0000

A contract manufacturer partners with another business via a legal agreement under which production services are produced and delivered. For the hiring company, it often involves significant research when looking for a suitable partner to provide contract manufacturing. Opportunities that a contract manufacturer can offer go beyond cost savings and specialized expertise, though both should be major factors in this selection process.

Selecting the best contract manufacturer for a particular project takes careful consideration. Any agreement should spell out both companies’ obligations, though this agreement shouldn’t focus primarily on cost. The contract manufacturer’s capabilities are more critical to the hiring company, and should include considerations like capacity, equipment, experience with materials, and value-added services. Once a choice is made about the best partner for the job, it’s easier to take advantage of the contract manufacturing opportunities that are presented.

Contract Manufacturing: Opportunities to Improve Profitability

A company primarily partners with another company to fabricate products to increase production without significant capital investment. With contract manufacturing, opportunities abound to sell more goods and grow revenue without hiring more workers, investing in advanced technology, or purchasing more space to expand manufacturing. Many major manufacturers, including Apple, Boeing, General Motors, Microsoft, Nike, Tesla, and Unilever, take advantage of contract manufacturing opportunities.

However, smaller entities can also take advantage of contract manufacturing opportunities. To optimize design and development, expertise, lead time, resources, and other aspects of production, the right contract manufacturer will bring greater efficiency. Contract manufacturers often provide more cost-effective services, as both companies need to profit. For example, a good partner will work to make production more efficient in all areas under their control, from the design phase to delivery. With contract manufacturing, opportunities often come from substituting parts, managing supply chains, providing skilled labor, or other aspects of production.

Areas in which contract manufacturers bring benefits to production include:

Capital investments: Many contract manufacturing opportunities result in significant savings on equipment, technology, and other capital investments, as the hiring company doesn’t need to invest in those aspects of production.
Engineering expertise: In contract manufacturing, opportunities to collaborate with a partner with specialized experience and knowledge in certain areas often present themselves, allowing for more optimal production processes.
Labor: The expense of hiring more workers is negated when working with a contract manufacturer, as they will already have an experienced and trained workforce.
Procurement: Contract manufacturers tend to specialize, so they develop relationships with raw material suppliers to fulfill orders more efficiently and reliably.
Products: Normally specializing in specific products or processes, contract manufacturers often have sufficient expertise to optimize production by introducing new practices and materials that can decrease costs without lowering quality.
Quality control: Manufacturing partners working on contracts will have their quality control management systems, like ISO 9001, used to handle quality issues, significantly decreasing the chance of receiving faulty parts or products.
Speed: Teaming up with the right partner can lead to faster turnaround times, as the contract manufacturer will have everything necessary to begin and continue production without delays.
Supply chains: Contract manufacturers often manage supply chains for the companies they partner with, allowing them to redeploy resources to other areas like marketing, sales, and distribution.

Collaborating with a contract manufacturer helps improve product development, particularly when transitioning to production at scale. Optimizing the manufacturability of a product’s design will lower costs and decrease lead times, so it’s often a good idea to start at the development stage with contract manufacturing. When engaging the right partner, opportunities abound for cost savings, scalability, and specialized resources.

Cost Savings

There are many areas in which expenses can be lowered through contract manufacturing. As typical examples, opportunities to decrease costs extend to design customization, logistics, prototyping, raw material purchasing, and tooling. Outsourcing should be considered if hiring a contract manufacturer is lower than the total in-house production cost. Building a factory to produce a new product only adds to a manufacturer’s overheads, for example, so it’s often better to engage a third party that already has the production infrastructure in place.

The total cost of a product also depends on the cost of materials, production, and labor, so lowering production costs will naturally augment the hiring company’s bottom line. The contract manufacturer will also need to make a profit, so cutting costs is in both companies’ interests. With contract manufacturing, opportunities to reduce costs can come from both the hiring company and the vendor. Quality, too, is in both companies’ interests, and often, this collaboration will result in more cost-efficient solutions.

Certain contract manufacturers will also assist with design for manufacturability, which can often include optimizing production and sourcing components. For example, a contract manufacturer may vary the product marginally from the original prototype or even design a version that’s easier to fabricate and, thus, more economical. These discussions should occur prior to production, however, as certain design features like cavity depth, color, size, tolerances, and wall thickness may be integral to the final product.

Scalability & Flexibility

Contract manufacturing opportunities to reduce costs can grow if the hiring company wants to scale up production with the outsourcer. Contract manufacturers often provide the hiring companies with greater flexibility overall. When demand rises, it’s easy for the contractor to step up production; when it falls, it’s equally easy to lower production. If the hiring company were doing this in-house, however, this would result in layoffs, cutbacks in hours, and unused production space. For the contract manufacturer, it often just means they can move ahead with projects for other companies more quickly.

While looking at the potential contract manufacturing company’s size may provide insight into its flexibility, a smaller company offering cutting-edge automation can often do the job just as well, if not better. In these cases, technological capabilities are far more critical than the size of the vendor. Of course, smaller companies are nimbler, while providing quality that’s at least as good as that a larger vendor can offer. For precision machining of parts, scalability can be augmented by a contract manufacturer’s use of automation. Automated capabilities not only allow for scaling but ensure better quality as well.

Access to Specialized Resources & Expertise

One of the most important evaluations a hiring company can make is of a potential contractor manufacturer’s quality control system. Having broad quality management guidelines like ISO 9001 will ensure that any products the vendor makes are of a certain quality. It’s essential, too, that a vendor meets certain industry benchmarks, such as the AS9100 specialization for the aerospace industry or ITAR (International Traffic in Arms Regulations) for defense contractors. Contract manufacturing opportunities might include cutting-edge machinery, specialized skills of the vendor’s employees, or other resources that aid fabrication without the hiring company’s additional capital investment.

Expertise and equipment a contract manufacturer brings to the table might include:

Assistance with design for manufacturing to make production of an item easier.
Engineering services that include research studies related to the design, development, and testing of a new product or part.
Equipment capable of manufacturing to the required tolerances, such as automated systems, advanced quality inspection systems, and 5-axis CNC milling machines.
Regular calibration, inspections, and servicing align with a cohesive preventive maintenance plan.
Team that can assist with material selection, plans regarding how products will be fabricated, and other production elements.
Technical support that includes analysis and troubleshooting of issues.
Well-trained staff with sufficient expertise in the processes involved in the hiring company’s fabrication needs.

Before signing a contract, it’s vital to determine whether a potential vendor has the expertise and equipment to perform the work necessary to produce the hiring company’s product. Manufacturing opportunities might abound from hiring a contract manufacturer, but only if they have the appropriate capabilities. For this reason, it’s a good idea to visit the vendor’s physical production facility and ask pointed questions to ensure the best vendor is hired for a project. The benefits from properly outsourcing production free up resources that can be better used for core competencies, such as branding or research and development.

Contract Manufacturing Opportunities with Staub Precision Machine

Staub Precision Machine Inc. offers a wide range of services on contract. Manufacturing opportunities for our customers include cutting-edge machining and other production equipment, including custom components and subassemblies. Our trained staff also offers expertise in various value-added services, along with our extensive automated capabilities.

With Staub’s capabilities, customers benefit from in-house engineering experts who can streamline the design process, low error rates for precision parts, skilled machine operators, and other advantages that reduce production costs by increasing efficiency. By taking advantage of contract manufacturing opportunities by partnering with Staub, our customers can focus on other aspects of their business, such as customer service or expanding markets. Not only can Staub lower production costs and improve quality, but we can also help upscale businesses to augment growth.

Capabilities Staub can provide our customers include:

5-axis CNC machining services
AS9100 certification for the aerospace industry
Deburring and other finishing services
Electric discharge machining (EDM) services
Metal assembly and fabrication capabilities
Rotary transfer machining

Staub also offers other value-added services under contract. Our manufacturing capabilities include various technical finishing services, while we also rely on our associations with trusted third-party providers for other services. To learn more about Staub Precision Machine and the contract manufacturing opportunities we can provide your company, contact us today.

The post How Contract Manufacturing Can Impact Your Bottom Line appeared first on Staub Precision Machine, Inc..

Private Label vs. Contract Manufacturing: What’s the Difference?

Staub Precision Machine Inc. — Fri, 23 Feb 2024 13:09:02 +0000

There are several ways to describe how a manufacturer produces a product for another company that’s then branded and sold as its own. These include private label manufacturers, original equipment manufacturers (OEMs), and contract manufacturers.

Previously, we’ve compared contract manufacturing vs. OEM manufacturing, contrasting these two approaches for outsourced product fabrication. Here, we will compare private label vs. contract manufacturing while touching on OEMs, as they share a great deal in their methodology with private label manufacturers. This post intends to clarify the differences between companies considering private label vs. contract manufacturing. In so doing, an informed understanding will help companies choose the most appropriate business partnership model for their product.

Considering Private Label vs. Contract Manufacturing

Certain business models choose to outsource elements of production to fulfill specific production assignments for which a business doesn’t have sufficient capacity or capability to perform. When comparing private label to contract manufacturing, both processes involve outsourcing production to another company. However, contract manufacturers neither own the product nor can they change specifications for the company that hires them. As such, most contract manufacturers simply act as the production arm of the entity that hires them. However, sometimes contract manufacturers offer design capabilities as well, including taking a DFMA (design for manufacture and assembly) approach regarding the design and production of a product.

Private label manufacturers provide products that are branded and labeled according to the instructions of the organization that partners with them. In private label manufacturing, the manufacturer controls the specifications and quality of the end product. One example of this could be a retail business offering their store brands of a popular branded product. Another could be when non-profit organizations hire private label manufacturers to make items with their names and logos on them.

Creating partnerships with manufacturers enables these entities to more effectively produce their products, while outsourcing this work allows them to focus more on marketing, sales, and other elements. When considering private label vs. contract manufacturing, there is an array of pros and cons for each manufacturing style.

Private Label Manufacturing

Essentially, private labeling involves the branding of a company’s manufactured product based on a third party’s idea or design. For example, a company hires a private label manufacturer to make a product based on their partner’s concepts and specifications. Normally, the hiring entity won’t have to develop or tweak product designs. They are often even just putting their label on a product. Private labels are common in grocery and box stores that sell their brand of products, usually at prices that are lower than other similar products.

Private label manufacturing is about creating an ongoing relationship between the manufacturer and the entity that hires it. This manufacturing approach can be applied to just about any type of product, including machined components. Private labeling often, but not always, occurs for products that aren’t all that unique or innovative, with the sales and marketing completely controlled by the company that outsources the manufacturing. In these cases, the buyer of the private label manufacturer’s products supplies their own SKU codes, product descriptions, and branding, along with accompanying sales and marketing literature.

Advantages of private label manufacturing include:

Many private label manufacturers have storage facilities available, which reduces the cost of storing goods.
Not having to hire experienced product designers and developers, as private label manufacturers provide this service.
Product components have already been tested, eliminating the need for product testing expenditure.
Sourcing production facilities isn’t necessary.

All in all, private-label manufacturing is a cost-effective approach to manufacturing products. Yet it also has its downsides. Private label manufacturers require minimum orders, which can limit their use by smaller companies that can’t afford or have no need for larger orders. It also limits how much control a company has over its end product, though it takes less design control than an OEM.

How Private Label Differs from OEM

While a private label manufacturer and OEM are quite similar in their approaches, they do have differences. Both leave the sales and marketing to the company that hires them while remaining anonymous entities involved in the production, but the main aspect differentiating private label manufacturers from OEMs is who designs the product. While private label companies generally make items based on their customers’ designs, OEMs will often stipulate how the product is fabricated, including the materials and processes used.

Contract Manufacturing

In general, contract manufacturing vendors participate more narrowly in the production process. These companies are often brought in as a partner due to their expertise in a specific manufacturing activity. It may be more of a labor-intensive part of production, a value-added process available to the manufacturer, or involve technology that the buyer doesn’t have in-house.

Cost is often the determining factor in these relationships. Contract manufacturers will already have the resources to perform a task effectively, including access to equipment and materials used in production. It enables a company to take advantage of the contract manufacturing vendor’s capabilities, while also reducing the need to invest in expensive equipment and facilities. This allows a company to concentrate on what it does best, whether this be research and development, sales and marketing, or other pursuits that bring value to a business.

Advantages of contract manufacturing include:

Flexibility: As the company retains ownership of the product’s design, it allows companies to focus on other areas of production.
Knowledge: Drawing on a contract manufacturer’s knowledge base can be invaluable, as some manufacturers have considerable experience that can reject flawed designs before they’re built and otherwise help perfect a product.
Reduce overheads: By transferring production to a contract manufacturer, companies can often increase profits by negotiating lower pricing for finished products than with private label manufacturers.
Scalability: With already existing networks of suppliers, contract manufacturers can scale production without the need for capital investment.

When considering private label vs. contract manufacturing, the latter also has its drawbacks. For one, both parties must communicate well with each other to avoid expensive errors that can lead to longer production times. Vendors should be carefully vetted as well, as a dishonest contract manufacturer will have proprietary details for a product, which could potentially be sold to a competitor. As with any partnership, reliability also may be a factor that should be evaluated before any contracts are signed.

Yet the right contract manufacturer can help companies produce goods that meet their exact specifications and quality goals while also saving on operating costs. It costs significantly less than fabricating a product in-house while harnessing the vendor’s experience and specialized equipment to do the job. Some of the better contract manufacturers can even guide product development, allowing companies to reduce the time it takes to bring a product to market.

The Staub Difference for Contract Manufacturing

For companies considering the variances between private label vs. contract manufacturing and which would best suit their needs, certain manufacturers can offer more. Staub Precision Machine Inc. has cutting-edge automated technology and manufacturing know-how to provide its clients with the production capabilities they require. Collaborating with Staub as a contract manufacturer will allow your company or organization to produce precision components quickly and with greater accuracy. To learn more about the difference Staub can make, contact one of our friendly customer service representatives today.

The post Private Label vs. Contract Manufacturing: What’s the Difference? appeared first on Staub Precision Machine, Inc..

Partnering with Contract Manufacturers for Custom Entertainment Industry Projects

Staub Precision Machine Inc. — Mon, 12 Feb 2024 13:10:40 +0000

Technological advancements within the entertainment industry have allowed special effects that were once impossible to achieve to wow audiences, with much of this work done through contract manufacturing. Contract manufacturing examples of CNC and other machining work are found in the movie industry, theatrical performances, music concerts, exhibitions, and other entertainment events.

CNC Machining & Other Manufacturing Methods for the Entertainment Industry

Though much of the machining work in the entertainment industry involves unique pieces found in films or other productions, other examples of such work tend to lean towards components for staging, backdrops, camera rigging, or brackets for lighting fixtures – all of which need to be machined from specific metals. Using contract manufacturers for machining work has become increasingly common for those who work with mobile stage consoles, cabling & rigging, scaffolding, theatrical sets, or other objects in event and convention centers.

Advantages of contract manufacturing include:

Clients of contract manufacturers tend to have more input regarding aspects like output, materials, and quality for subcomponents and subsystems made.
Often having greater flexibility regarding supply chain issues as contract manufacturers can better provide a range of services in-house and with select partners.
With fewer product liability or intellectual property aspects associated with contract manufacturing, examples of such partnerships tend to focus simply on production services.

Regarding accuracy and precision in machining work for contract manufacturing, CNC technology is often the standard due to its reliability. Parts made using CNC machining last longer and provide better dependability, reducing the chance of downtime that can lead to delays in entertainment productions. While there are other precision machining methods, CNC technology has capabilities that make it particularly useful in making complex designs for the entertainment and convention industry.

Contract Manufacturing: Examples Within the Entertainment and Convention Industry

Manufacturing examples include injection molding for items that require quicker production and larger throughputs, though CNC machining also plays a significant role in the making of molds. While 3D printing certainly has a place in producing items for the entertainment industry, for precision components that require tight tolerances and durability, CNC machining is the better option as it can achieve the best precision. Additionally, other types of machining can play roles in the work needed by the sector, such as EDM (electrical discharge machining), laser, rotary transfer, and waterjet machining.

Some contract manufacturers, however, can assist with innovative DFMA (design for manufacture and assembly) solutions that can be helpful for entertainment companies needing to engineer and manufacture items on contract. A manufacturing example of this might take into account the need for both aesthetic and dependable pieces that work optimally during a performance. Partnering with a seasoned contract manufacturer for an efficient solution can lead to potential issues being resolved before production even begins.

Examples are plentiful with all the work done for the entertainment industry through contract manufacturing. Contract manufacturers can use CNC technology to machine precision components. However, this is only the tip of the iceberg, with the possibility of vendors who do assembly work, metal fabrication, powder-coating, and silk-screening. Some even work on dimming, lighting systems, and other end-use products.

More Commonplace items like adapters and brackets are also needed for lighting, staging, and trussing applications. Many of these commonly machined items are specialized and can be made under contract. Other examples might include lighting fixtures that can project and bring beams of light to where they’re needed. The magic of live concerts, theatrical performances, or large-scale sporting events couldn’t exist without technology and an experienced machinist’s help.

Some contract manufacturing examples within the entertainment industry include:

Automated “flying” platforms for halftime shows in sporting events like the Super Bowl.
Bodies of specialty vehicles like movie cars and bodies for theme park rides.
Camera rig components for specially designed apparatus that provide a unique point of view, attaching to an actor to allow immersive shots.
Chiseling, cutting, sculpting, and otherwise shaping pieces of movie and stage sets, which are often bulky yet lightweight.
Components and tooling for complex machinery used in the entertainment industry, such as camera stands, equipment, and other paraphernalia.
Components for immersive and interactive attractions found at amusement parks, art galleries, museums, zoos, and other similar places are used to educate and entertain the public.
Cutting and designing from a wide array of materials, including foam, metal alloys, plastics, and wood.
Production of precision molds to allow quality replicas to be made repeatedly while saving money and time.

The Staub Advantage for the Entertainment Industry

The advantages Staub Precision Machine Inc. can bring to entertainment and event companies are the same for our other contract manufacturing. Examples of our work can be found on video or in case studies, showing off our automated technology, cutting-edge machinery, and other capabilities. Staub can make complex workpieces precisely and rapidly if you need a contract manufacturing partner. To learn more about our various specialties and how we can add value to your entertainment-related project, contact the machining experts at Staub.

The post Partnering with Contract Manufacturers for Custom Entertainment Industry Projects appeared first on Staub Precision Machine, Inc..

Contract Manufacturing vs OEM: What’s the Difference?

Staub Precision Machine Inc. — Thu, 02 Nov 2023 12:21:30 +0000

There are many ways for businesses to manufacture a product. While fabricating products in-house may work for some, numerous businesses have chosen to outsource this work to machine shops as partners to either produce the entire product or just certain components. The two main options involve either working with a contract manufacturer or with an original equipment manufacturer (OEM).

For companies in need of machine shop manufacturing, it’s essential to understand the difference between working with an OEM and contract manufacturing. Contract manufacturing advantages are many and varied, though sometimes using an OEM as a partner may be the better option for some manufacturers. So, what is the difference between an OEM and a contract manufacturer? Read on to find out.

What is the Difference Between OEM and Contract Manufacturers?

Though there’s considerable overlap between both these manufacturing practices, there are differences between an OEM and a contract manufacturer. Generally, contract manufacturing involves subcontracting only part of the production process to a vendor. Often, this sort of outsourcing occurs when a company wants to bring a partner with greater expertise into a narrow part of the production process. The fact that a certain production stage may be particularly labor-intensive is often another reason certain stages of fabrication aren’t done in-house. While these both are factors, one of the greatest benefits of contract manufacturing concerns the cost it takes to invest in equipment, materials, and other resources used in production. These are the main reasons companies outsource their product manufacturing. It allows businesses to make capital investments and apply these to activities that add value, like research and development, while also reducing labor costs.

An OEM manufacturer, on the other hand, usually makes the entire product based on their client’s requirements. The client hands the OEM their designs and specifications for a product, with the OEM then producing the entire product in their factory. Yet there are also various levels of OEM. Some modify a product – making changes to its dimensions or aesthetics, for example – while others invent what amounts to a new product. For products that don’t yet exist, it’s likely a company will be better off with an OEM as a partner.

When investigating OEM and contract manufacturing advantages, these things must be considered:

Anticipated level of control over manufacturing processes
Differences from other products
Enterprise model
Industry
Marketing
Precision of product
Product design

However, these differences aren’t cut and dry, especially when it comes to contract manufacturers. Contract manufacturers like Staub Precision Machine offer advanced design capabilities that allow us to take on roles normally ascribed to OEMs. So, when looking into whether to utilize an OEM or contract manufacturer, it’s important to also look at each vendor’s individual competencies to understand what will work best for a specific product or business. The advantages and disadvantages of individual vendors should be weighed prior to making any firm decision on partnering with an OEM or contract manufacturer.

Benefits of Contract Manufacturing

To make production more efficient and economical, many companies turn to contract manufacturing, particularly those with specialized technical knowledge. Among these specialty skills is precision machining, especially when a product requires particularly complex components. For such applications, product designers will often utilize contract manufacturing. Advantages in such arrangements stem from the experience, knowledge, and skills the contract manufacturer brings to the table. In such agreements, the contract manufacturer is assigned a certain phase – or perhaps all phases – of production, while the company that designs the product then often concentrates more on its marketing and sales.

Some other contract manufacturing advantages include:

Competing interests aren’t an issue, as the contract manufacturer doesn’t deal with product and design specifications.
More control over aspects of manufacturing subsystems and subcomponents like throughput, quality, and expenditures.
Not having to share intellectual property or product liability with vendors means the partnership simply involves business services.
Tending to be more flexible when it comes to supply chains, such as contract manufacturers’ greater willingness to provide customized specifications, utilize consigned components, and work with suppliers preferred by their customers.

Contract manufacturing advantages can be particularly apparent when a company brings a new product to the market, as they tend to follow their client’s instructions closely.

Specialization

Most often, contract manufacturers will have specific capabilities that allow them to fabricate complicated parts and products, often of higher quality than an OEM, within their area of expertise. One of the advantages of contract manufacturing is that they are experts at what they do, with an extremely well-trained workforce who can meet even the most arduous standards. With such specialization, product manufacturers know that they can rely on the quality of work from the vendors who do their contract manufacturing. Advantages also often include cutting-edge technology for the specialty skills they do.

Scale

Whether scaling up or down production, it’s easier to do with contract manufacturing. The advantages of a contract manufacturer’s specialization are limited only by the agreement made between them and the client. This means if the company that designed and is paying for production has the means to pay for a larger production run, the contract manufacturer will more than likely be able to accommodate the request. Larger production runs should also lower the price per piece as well.

Economical & Efficient

With specialized capabilities and the ability to scale operations, these advantages of contract manufacturing also ensure products are delivered at lower costs and in less time. Using a contract manufacturer allows makers of products to save on labor, materials, and technology during the fabrication process. It also makes the whole process of bringing a product to market more efficient, cutting the time that it takes from concept to shipping the first finished product.

Advantages of OEM Manufacturing

Products made by OEMs benefit from economies of scale, with their larger production runs meaning they can fabricate components and whole products quickly and inexpensively. As with contract manufacturing, the advantages include not needing expensive infrastructure or specially trained workers, as the OEM provides production facilities and labor. Both components and finished goods will generally be top-quality as well.

Typically, OEMs also offer the following:

Capabilities that allow for greater variation in product design to support better profit margins.
Customization of products can be done more easily with more opportunities to differentiate categories of the initial product.
Established a supply chain for components and other elements involved in product development that lessens the time it takes to bring to market.
Excellent logistics capabilities and an established supply chain mean finished products are shipped quickly to retailers and end users.
Insight into design and production within their particular area of expertise.

Working with an OEM can be an excellent way to ensure the quality of both parts and products, though for certain cases the advantages of contract manufacturing are greater.

Advantages of Contract Manufacturing Over OEM Manufacturing

Though OEMs may provide additional assistance in the design phase and a certain amount of product customization, contract manufacturing has definite advantages. Advantages like a lower cost often result because the contract manufacturer simply makes the product according to what their client requires and is not involved in the design phase. Additionally, OEMs often require a minimum order, which can lead to higher overall costs.

Oftentimes product customization in an OEM happens due to factors that don’t necessarily match market conditions. This makes working with a contract manufacturer more straightforward, as there’s normally a strict adherence to the contract. Because the supply chain is more exclusive with an OEM, there may also be less understanding of what the end user requires in a product. Again, this isn’t an issue normally found in contract manufacturing.

The best contract manufacturer for a job will:

At all times fabricate faultless products promptly.
Know legal and regulatory requirements that apply to a product.
Understand what the manufacturer’s customer wants.
Without exception, meet or exceed all requirements.

The advantages of contract manufacturing and OEM partnerships should be weighed against each other, as with the former it’s simply business while the latter involves a close relationship that can’t as easily be ended. For contract manufacturers, the only responsibility they have for their clients is ensuring that products are made according to specifications within the bounds of a signed agreement. One major contract manufacturing advantage has to do with intellectual property rights, which the client rather than the manufacturer keeps. In the end, the right contract manufacturer is the one who does the job right.

The Staub Advantage for Contract Manufacturing

The advantages of using Staub Precision Machine Inc. for precision machining are numerous. Whether it’s our advanced machinery, collaborative capabilities, cutting-edge automated techniques, or helpful customer service, Staub has what you need to make complex components quickly and accurately.

Not only can Staub provide specialized processes, but we also combine these specialized processes to benefit our customers. We view contract manufacturing not just as the fabrication of a single component, but as a means to provide multiple services and processes to our customers so that they can keep much of your manufacturing in-house. To learn more about what benefits we bring as your contract manufacturer, contact the experts at Staub.

The post Contract Manufacturing vs OEM: What’s the Difference? appeared first on Staub Precision Machine, Inc..

Understanding Water Jet Cutting vs. Laser Cutting for Precision Manufacturing

Staub Precision Machine Inc. — Fri, 27 Jan 2023 11:38:48 +0000

When comparing water jet cutting vs. laser cutting, both methods are used in precision manufacturing. Water jet cutting requires water pressurized up to 60 thousand psi (pounds per square inch), enabling it to cut through sheet metal, ceramics, stone, and even steel. Water jets can cut through thicker materials than can be cut via lasers, which is one reason the water jet method is still popular in precision manufacturing.

Laserjet cutting uses high-density laser beams that vaporize the material it contacts to create clean, smooth cuts. Able to slice through the material in a highly accurate manner, laser cutting can shape specialized and complex components for a variety of industries. Laser cutting has also proved to provide operational consistency with significant repeatability, making it suitable for the mass production of workpieces with tight tolerances.

By contrast, water jet cutting utilizes water-containing abrasive materials like aluminum oxide or garnets to cut material via abrasion. Water jets can cut through several inches of metal, making it a much better technique for making complex parts from thick material. Since this method doesn’t generate heat, it also works well for parts that can be warped by heat. Like laser cutting, water jet cutting utilizes advanced software to coordinate cutting during production.

When assessing these precision cutting services, it’s important to note that one is not necessarily better than the other – in fact, they complement each other. Having both processes available under one roof, as we offer at Staub, is ideal because they are used for different applications. Each process is constantly being improved and has its own nuances, making it essential for customers to understand what the requirements and end results are.

Advantages of Water Jet Cutting & Laser Cutting

When looking at water jet cutting vs. laser cutting, both have advantages over other methods, which is why these two cutting techniques are the most widely used for precision manufacturing. Though one process is not necessarily better than the other, depending on the material, application, or specifications, one method usually works better. Yet both offer a few common advantages.

Shared advantages of water jet cutting and laser cutting include:

Generate high-quality components quickly.
Handle many metals and other materials; both cutting methods are highly customizable.
Produce results consistently, enabling the repeatability necessary for mass production.
Support automated processes due to the precision and accuracy of both techniques.
Take off thin slices of material to fine detail and create intricate workpieces.

When it comes to water jet cutting vs. laser cutting, both are ideal for a wide range of applications in industries that include aerospace, automotive, chemical, medical, and power generation. In summary, laser cutting works better for precision applications that require highly detailed cutting. In contrast, water jet cutting has almost no restrictions on the material it can cut and works better when producing thicker workpieces.

When & How to Use Water Jet Cutting vs. Laser Cutting

Both lasers and water jets can be used to cut tough materials like metals, though highly reflective metals are better cut with water jets. Depending on the water pressure applied and the abrasives, water jet cutters can cut through most materials, going deeper than lasers.

Yet when comparing water jet cutting vs. laser cutting, there are a few significant differences between the two that favor water jet cutters. While advances in laser technology have allowed laser cutters to work with metals and alloys like aluminum, stainless steel, and mild steel, laser cutting isn’t suitable for cutting hard stones like marble or granite.

Since water jet cutting doesn’t produce heat, it also optimizes production. Eliminating heat from cutting allows workpieces to move straight from water jet cutting to welding or threading operations without needing a cool-down period. Due to the heat zones that laser cutting can create, water jet cutting techniques are better for certain aerospace applications, as water jet cutters won’t warp or alter material during cutting. Additionally, water jet cutting produces such clean cuts, making sanding and grinding unnecessary.

Pros & Cons: Water Jet Cutting vs. Laser Cutting for Material Processing

As common methods used in precision manufacturing processes, both water jet cutting and laser cutting offer a means to remove unwanted material from blocks of metal and other materials. Though both are versatile techniques that can be utilized in precision manufacturing, the technique used largely depends on the application. Further, each method has its pros and cons when it comes to cost, precision, processing speed and the types of materials with which each method works best.

For example, laser-driven cutting machines require no tooling, as they’re programmed to precisely cut along specific pathways. Meanwhile, water jet cutters require water to cut and cool, along with an abrasive medium combined with the water, so these cutting machines have higher tooling costs. Additionally, there’s a propensity for wear with water jet cutters, especially for components like nozzles and seals, which adds to maintenance costs.

While water jet cutters can achieve precision to 0.02 inches (0.508 mm), laser cutters cut down metals to tolerances approaching 0.005 inches (0.127 mm). This precision allows laser cutters to engrave and etch material along with cutting it. This greater precision allows manufacturers to add assembly marks, intricate designs and serial numbers to workpieces. Water jet cutters are also slower, capable of cutting 20 inches (50.8 cm) per minute at best, while laser cutters can cut up to 70 inches (177.8 cm) per minute. However, one of the prime advantages when comparing water jet cutting vs. laser cutting is that water jet cutters can use four different cutting tools simultaneously, so offer greater speed and versatility when cutting in three dimensions.

Another important consideration when comparing water jet cutting vs. laser cutting involves the material that needs to be cut. Though water jet cutters aren’t appropriate for tempered glass and diamonds, they can cut through just about any other material. While laser cutting also works with a wide array of materials – Including metals, plastics and wood – it’s not appropriate for thermolabile materials that react poorly when heated or those with reflective properties that reduce a laser’s ability to heat the material so that it melts or vaporizes. Water jet cutting offers a much better option for such materials, as it uses water under high pressure rather than light-based heat to cut through material. Further, water jet cutting machines can cut through substrates up to 2 inches (5.08 cm) thick.

Contact the Precision Experts at Staub Precision Machine, Inc.

Staub Precision Machine, Inc. has a full catalog of equipment and automation solutions that allows us to provide results regardless of complexity. This includes premium water and laser jetting equipment that offers material forming for a full range of materials regardless of complexity, size, or thickness. Our advanced equipment allows us to produce high-quality parts efficiently and cost-effectively with the precision required by the strictest of industries. Utilizing the most advanced computer control systems, our equipment offers no-to-minimal heated affected zones, mechanical stresses, and smooth edges to reduce secondary operations required for your project. Staub provides collaborative solutions through our sophisticated machinery and cutting-edge systems to best meet our customer’s production needs. Inquire about your next project with the advanced manufacturing experts at Staub today.

The post Understanding Water Jet Cutting vs. Laser Cutting for Precision Manufacturing appeared first on Staub Precision Machine, Inc..

10 Impressive Advantages of Contract Manufacturing

Staub Precision Machine Inc. — Fri, 06 Jan 2023 11:40:45 +0000

Contract manufacturing is vital to many manufacturers, particularly for startups and smaller companies with tighter budgets. Also referred to as subcontracting or outsourcing, the advantages of contract manufacturing are particularly noticeable for companies without large in-house development teams. For such companies, having an experienced third-party provider conduct certain processes is often better to enable greater efficiency in producing complex goods while maintaining product quality.

Why is Contract Manufacturing Beneficial?

Companies that bring in contract manufacturers want to make production more cost-effective and efficient. The advantages of contract manufacturing are numerous, particularly for industries that require the specialized technical knowledge involved in the fabrication of complex components that require precision machining. The basics of a contract manufacturing agreement entail the assignment of production – either in part or as a whole – to a manufacturer, who follows design specifications to produce goods for a company that then sells them to end users.

1. Lower Overheads to Improve Competitiveness

Contract manufacturing lowers capital expenses so that a company will not need to invest in such things as expensive automated production equipment and raw materials and decreases operating costs like labor and maintenance. Smaller companies are often limited in both their resources and capabilities due to the high investment needed for the fabrication of precision products. For larger manufacturers, outsourcing allows them to concentrate on their core proficiencies. One of the prime advantages of contract manufacturing is the determination of costs upfront, making processes more efficient throughout production.

2. Provide Additional Technical Expertise

Another key advantage of contract manufacturing is the ability to provide additional workforce that is highly skilled and well-trained. The best contract manufacturers bring a wealth of experience to the production process and have an intimate understanding of every aspect of fabrication for which they have been hired. For example, this may include sourcing materials for components, and using their knowledge about the application for which a component will be used to follow the most advantageous processes.

Contract manufacturers also provide the businesses with whom they partner technical insights that cannot be found elsewhere. Since CMs build products for a versatile selection of companies, they have valuable, in-depth knowledge of products built for various market niches. When choosing such a partner, a business should ensure the contract manufacturer has plenty of experience within the industry and the required certifications to serve the intended market.

3. Improve Quality Control

Your contract manufacturing partner should have robust quality control procedures, allowing you to leverage their existing quality systems and certifications to ensure your products are of the finest quality. The long lead time to develop quality systems and gain certifications is an incredible benefit to using a contact manufacturer because it gives you a step up in the process, resulting in a high-quality product with minimal time-to-market (TTM).

Quality management doesn’t just occur during fabrication, either. An experienced partner can prevent fatal errors before they go into production by being able to spot potential design flaws early, thus saving time, money, and resources.

4. Focus on Core Capabilities

Outsourcing allows a business to focus on its core capabilities, freeing employees to design innovative prototypes, improve existing designs, or concentrate on developing new markets. This, in turn, furthers production goals while improving efficiency. Through better management of materials, costs, and time-to-market, businesses can optimize their production processes, which helps reduce labor, assembly, packaging, shipping, and other costs. Whatever the reason for outsourcing, it allows a manufacturer to do what they do best by outsourcing what others can do better elsewhere.

5. Existing Production Infrastructure & Training

An established contract manufacturer already has the tools, equipment, and well-trained engineering team to support a manufacturer’s production processes, reducing time-to-market (TTM). Whether these processes involve complex machining, advanced automated processes, or detailed tasks done by hand, the advantages of contract manufacturing come from the existing production infrastructure and years of experience, particularly since new production equipment can have one or more years of lead time.

6. Reduce Costs

Relying on a manufacturing partner lowers the costs of design, fabrication, logistics, quality control, training, and other aspects of production. This inevitably leads to higher returns on investment. Another advantage of contract manufacturing involves how resources are used. Lean manufacturing techniques typically used by contract manufacturers reduce waste. This contributes to cost savings and greater efficiency while promoting sustainability and reducing a company’s carbon footprint.

7. Reduce Direct Reliance on Labor

When a company manufactures its products from start to finish, it requires a sufficiently sized workforce. Skilled personnel with the necessary expertise are needed for product design, operations and maintenance of specialized machinery, and management to coordinate the work of all these employees. Utilizing the services of a contract manufacturer allows a business to benefit from a larger, more experienced labor force without all the hassles involved in hiring, training, managing payroll, and scheduling employees. Additionally, a long learning curve often involves onboarding new employees and getting them up to speed. In today’s labor market, a rotating door of employees is common, and bringing new staff takes time and money.

8. Expedite Time to Market

Working with an experienced contract manufacturer allows businesses to develop prototypes more rapidly, ensuring products are brought to market more quickly. This gives companies that utilize contract manufacturing a competitive edge. Contract manufacturers understand the cost and the time it takes to manufacture a specific part or product. This ensures that customers receive detailed cost estimates and timetables, lowering the possibility of increased costs and unexpected delays during production.

9. Provide Industry-Specific Answers to Challenges

An experienced contract manufacturer will have extensive experience in certain industries, offering expertise that enables effective solutions. For example, a contract manufacturer experienced in the aerospace industry can fill gaps in knowledge that allow the development of innovative designs and processes for such components.

10. End-to-End (E2E) Solutions

Contract manufacturers like Staub Precision Machine, Inc. provide end-to-end solutions, offering services for every stage of the manufacturing process. This includes product design, material procurement, product assembly, packaging, and distribution. Eliminating as many middle layers as possible to optimize performance and efficiency. This allows your organization to have predictable production deadlines. Stay competitive and profitable, allowing your organization to focus on its core skills and competencies. Using a single entity throughout simplifies the process, decreases time to market, and increases product quality.

The Staub Advantage: Expert Contract Manufacturing

Staub Precision Machine, Inc. offers years of training, experience, and expertise to take your project from start to finish. In addition to precision machining, we have expansive capabilities, which include in-house engineering, design for manufacturing and engineering (DFMA), multiple assembly locations, finishing services such as assembly and rubber/silicone/plastic molding, packaging services, logistics operations, inventory, and warehouse facilities. We can also source quality electronics and components from reliable offshore sources.

The advantages of contract manufacturing with Staub go beyond just our experience. Our company exists as much more than a supply chain vendor; we partner with companies to make them more efficient and their processes more effective. With a New York-based team, all projects are produced within the U.S. and meet the high-quality standards of American-made products, including AS9100 certification and OSHA’s NRTL (Nationally Recognized Testing Laboratory) standards. Our domestically-based customer service department and all-American workforce offer better accessibility to customers within the United States and Canada. Contact us today for more information on the advantages of contract manufacturing with Staub and how you can leverage our advanced, world-class manufacturing processes to improve your bottom line.

The post 10 Impressive Advantages of Contract Manufacturing appeared first on Staub Precision Machine, Inc..