Does ordering machined parts from offshore save money? In our experience, the answer is no,
when relevant supply chain costs are factored.
Offshore parts are more likely to result in product failure due to poor material quality or misaligned feature relationships. Not to mention the increase in international shipping prices and labor has drastically impacted the cost savings that used to exist. Often, the term “low cost region” is found to be a misnomer once associated costs are recognized.
Total costs consist of many factors. Time to market for new product, standard and expedited air freight, product returns for quality issues, additional billing and payment requirements (Pay on shipment, wire transfer fees, etc.) communication delays due simply to time zones (frequently requiring having company staff working nights to communicate with east Pacific countries), weather events, fuel costs, customs delays and additional reporting. If a bad part is delivered it must be rejected across the world for evaluation before being re-made and re-shipped.
In many companies most of this cost and delay information is departmentalized and can be effectively invisible to purchasing or even supply chain management. This creates price distortion when comparing domestic to offshore suppliers. Many times a part sold by a domestic supplier nets out far less expensive compared to offshore when total costs are factored.
From working with our customers, we believe that now, more than ever, sourcing your machined parts locally is the best way to gain real savings, both short- and long-term.
Diablo Precision, Inc., uses the highest quality raw materials available. The majority of these raw materials are sourced from the United States. The only exception is the addition of one German partner supplying Ugima Stainless for us. Working with Diablo Precision means you receive the highest-quality parts made from the highest-quality materials.
Why Parts Made in America are Important
- Sourcing parts overseas requires large inventory purchases and freight charges to ship here. Diablo’s dynamic production schedule means your orders are completely customizable by size and delivery date (see our Services page for more).
- Buying local means shorter lead times for delivery and less energy consumption to deliver your products.
- American metal and plastic materials create the least amount of pollution due to U.S. manufacturing regulations.
- Our employees and the employees of our material suppliers pay federal and state income and sales taxes which benefit both our national and local economies.
- Sourcing parts in the U.S. helps rebuild the skilled machinist workforce that was reduced due to the rise in offshore production over the past two decades, and supports the U.S. manufacturing reshoring movement. It is, ultimately, an investment in our shared future.
- We provide our employees with leading pay and benefits packages, safe working environments, and protection under U.S. labor laws.
Improving Our Corner of the World
When price became more important than value in sourcing products, manufacturing trended offshore and offshoring reduced the skilled machinist workforce in the U.S. As a result, we often can't find experienced machinists when we need to increase our staff. While that’s a challenge, it’s also an opportunity.
Diablo selects employees who have the characteristics necessary to become excellent machinists, and then trains them in the Diablo Precision way. Not only do they learn to do things the right way from the start, it helps us maintain our high quality standards and benefits our industry & our local community.
More expert machinists in the U.S., means skilled manufacturing grows, and so does the economy.
We feel good about improving our corner of the world. Join us by buying parts sourced and made in America. Contact Diablo Precision to discuss your next order.