Posted by Shane Steele on Mon, Mar 01, 2010
Press Release: Professional Fabricating and Manufacturing
As the US manufacturing economy once again shows signs of strengthening, Grand Rapids-based PFI has announced its partnership with First Index, the leading source of USA and Canada-produced custom-manufactured parts. The two companies are teaming together to bring PFI together with buyers of the types of product that have made PFI successful and give the marketing expertise that will ensure that PFI is in front of the right buyers at the right time.
About Professional Fabricating and Manufacturing
Professional Fabricating and Manufacturing is a world class metal fabricator in Grand Rapids, Michigan. We run two shifts for both prototype and full production projects. PFI specializes in difficult projects that have short lead times with high quality standards. Located at 907 – 47th Street, Grand Rapids, Mi 49508 – PFI has been a privately owned leader in the fabricating industry since 1992.
When it comes to providing the parts you need, no one does it better than PFI. Forming is done with a state of the art 12 Axis LVD PPEB Turbo Brake Press with Laser Guide and Material lift or a 160 ton break press which has forming capabilities up to 12 foot long. When it comes to cutting, PFI has options – be it the 10 foot shear, 4x8 laser or their 26 station, 3 auto index CNC Turret – we have the equipment to meet your needs. PFI has 5 certified welders on staff with welding and finishing capabilities second to none.
We also have warehousing capabilities for JIT shipping and a full assembly area to meet customers’ needs.
PFI has formed manufacturing teams with our outside suppliers to keep lead time and cost to a minimum. By becoming a one-stop shop, they have made things easier for their customers. The customer will no longer have the hassle of searching for more than one company to complete a single job. Instead, they can rely on Professional Fabricating and Manufacturing to accomplish every task with the highest quality in the most efficient matter.
www.profabgr.com
About First Index:
Founded in 1992, First Index is the leading sourcing service for industrial custom-manufactured parts and assemblies in the US and Canada. Each week, buyers post over $20 Million worth of Requests for Quotes through First Index's free online sourcing platform; those requests are matched with US and Canadian manufacturing members that meet their specific requirements. With offices in Spokane Valley, WA, First Index provides professional support and a proven sourcing platform that connects US and Canadian manufacturing buyers and suppliers.
First Index Buyer Services
First Index Supplier Services
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Posted by Shane Steele on Thu, Jan 28, 2010
According to a recent article at WSJ.com, Caterpillar has notified its steel suppliers to be on alert - the company is planning to double its purchases of metal this year. "In fact, the heavy-equipment maker has been boosting orders to suppliers for everything from big tires and hydraulic tubes to shatterproof glass."
The author calls this a bullwhip-effect that is one of the signs that we are emerging from the recession and that companies are once again investing in growth. Additionally, the Commerce Department is expected to announce the fastest inflation-adjusted annual growth rate since 2003 "not because consumers were buying more, but because businesses stopped reducing inventories and, therefore, had to produce more of what they sold."
This is significant to those in the manufacturing industries and should be a precursor to continued growth.
From the Wall Street Journal Online at http://online.wsj.com/article/SB20001424052748704509704575019392199662672.html (subscription may be required)
Posted by Andrea Parrish on Tue, Dec 29, 2009
By Brock Stiffler, First Index's RFQ Specialist
So, you've got a great idea for the biggest new product to hit the market, and you're to the point of needing a prototype, or wanting to find a good custom manufacturing shop to help you build your product. The first thing you will need to do is put together a Request for Proposal (RFP) or Request for Quote (RFQ) to submit to the shops that you think might be able to manufacture the part or assembly you have in mind. Remember to include these five things to get the most accurate quotes possible.
1) Clear,Concise drawings with all dimensions and and requirements present,Including material type. If the document can stand on it's own legs, Suppliers will not have to chase down buyers for a Q and A session, Potentially creating a negative experience for both buyer and supplier.
2) Quantities buyer is requesting.
Many shops that specialize in prototype work will only produce quantities up to a certain amount. If you are looking for a full production run, you may need a different shop. Specifiy if you are looking for 5, 50, 500, or 500,000.
3) Delivery Date
A delivery date (date you would like the project completed by) adds validity to the project. Not only does it prove that the project is real and you're not just price-checking, it helps suppliers make an informed decision about quoting on the project. Often times, a short delivery date will increase the price and may decrease the number of shops able to do the project
4) Target pricing if applicable.
If you have a price or price range in mind, include in on your RFP/RFQ. That way, shops are able to tell you if they will meet or beat that price, or if you need to rethink the material, design, or process of your product in order to meet that target price.
5) Any special instructions
More often than not, the RFP / RFQ is the only piece of information a shop might have about you. Be sure to include any important notes or special instructions. Only like to be contacted via email? Include that. Have a dog that has to approve all quotes? Include that. Would you prefer to discuss their quotes over the phone? Include that too. Remember, the more information you can include, the better.
Posted by Andrea Parrish on Wed, Dec 16, 2009
Last Friday, Slate Magazine posted a great article by Daniel Gross about "deglobalization" - another description for the re-shoring trend. Both buyers and suppliers of a huge range of products are bringing the manufacturing and resources they need for their products closer to home. A few money shots:
"...the decline in trade was far larger than the quite small drop in global economic output. It turns out that many aspects of globalization were overleveraged."
"There's also a greater appreciation on the part of Western firms that cheap labor isn't the be-all and end-all. Businesses have learned in the past two years that the longer the supply chain, the more possibilities there are for disruptions-from flu viruses, geopolitical disturbances, and spikes in energy prices."
"This trend has led American and foreign companies alike to reconsider the way they've approached the vast U.S. market, especially in areas that are getting a boost from the government: energy, finance, automaking."
The long and short of it is that domestic manufacturing buyers and suppliers the world over have begun to pull their supply chains back closer to home. Beyond the political and cost implications, having more control over the process is a main tenent of Lean Manufacturing - making sure you can get what you need when you need it, but don't have to bring it in when you don't.
For our previous posts on re-shoring, deglobalization, and domestic manufacturing, check out articles in the "reshoring" tag.
Posted by Andrea Parrish on Tue, Dec 15, 2009
Marketing your custom manufacturing business and selling your services is about more than just responding to RFQs / RFPs or asking your current customers for more purchase orders. Building a strong strategy based on the fundamentals, and sales will follow. These five steps will help you or your sales force stay strong in this rapidly improving business climate.
#1- The Manufacturing Decision Triangle
It is the value triangle of quality, price, and delivery that encourages a buyer to choose a particular custom manufacturing shop.
#2- Talk With, Not At, The Buyer
When discussing business, make sure that you ask the buyer questions, and listen to their answers.
#3- Be The Solution, Not Just an Option
When working with manufacturing buyers, consider the reasons they give you that they didn't choose your quote.
#4- Consistency is Key
In 2009, on average, it took 20-30% more time to close an RFQ or sale. This is because companies are being much more careful about the shops they partner with - but this also means that when they are sourcing their manufacturing for 2010, you have a chance to get your foot in the door.
#5-Listen, Respond, and Take Action
It's simple - a shop that is responsive to a buyer's RFQ, RFP, or question is much more likely to land the job.
Want to Learn More?
For more information on how to build the fundamentals of your manufacturing shop's sales, download the full Simple Sales Solutions for Manufacturing Success whitepaper here.
Posted by Andrea Parrish on Tue, Dec 08, 2009
Despite the fact that the Canadian economy has been slowly adding jobs (examiner.com) in every sector, including manufacturing, the federal program designed to help re-train out-of-work manufacturing and auto workers is lacking for enrollees.
Originally designed to offer unemployment benefits to laid-off workers who wanted to re-train for other jobs, the program had estimated it would provide support to 50,000 Canadians by early next year. As of December, however, only about 6,000 people had enrolled in the program.
It's not nessisarily a lack of motivation of manufacturing and auto workers, though. There are structural limitations on the program that the Canadian Auto Workers union have been very vocal about.
"The program is proving to be a dud as they have set it up," said Laurell Ritchie, a national representative with the Canadian Auto Workers union. "So, they need to fix it. And fast."
The largest challenge the current restrictions set is that the workers had to have been laid off after January 25th of 2009 to qualify - but most industry jobs were lost in 2008, when the economic recession hit manufacturing and purchasing hardest. The Canadian dollar remained strong through the worldwide recession, but that meant international purchasing from Canadian shops also slowed down.
The Canadian goverment is launching an "awareness" campaign to help inform workers that qualify for the benefits about the program, and are hoping to get the $500 million program extended into 2011.
Information for this article was gathered from The Vancouver Sun and the Canadian Auto Worker's Union.
Posted by Andrea Parrish on Fri, Dec 04, 2009
The
Institute for Supply Management has come out with it's November report, and the news appears to be good - new orders came in at 60.3%, up for the fifth consecutive month this year. The Census Bureau considers any number consistently above 48.8% to report growth.
Beyond good new order numbers, however, the New York Times reports that the unemployment number has most likely reached its peak, while the Wall Street Journal reports that temporary employment is up - a leading indicator that the jobs market is back on its way up.
In addition to these encouraging numbers, the Tampa Bay Business Journal reports that the Florida Manufacturing Extension Partnership represented their manufacturing training programs at President Obama's jobs forum this last week.
The Associated Press is also reporting that both European and Japanese corporations have promised that they will base the manufacturing and operations of a new high-speed rail network in the USA when over $50 billion of high-speed rail funding gets distributed. 
U.S. Department of Transportation Map of Proposed High-Speed Rail Lines.
All in all, it has been a good week for manufacturing news - domestic manufacturing is working its' way back!
Posted by Andrea Parrish on Mon, Nov 30, 2009
The latest buzzword that has been flying around many large equipment manufacturers and businesses lately seems to be "vertical integration" - but what is it, and what does this mean for custom manufacturing job shops? Here's a quick rundown.
What is Vertical Integration? "The degree to which a firm owns its upstream suppliers and its downstream buyers" (from Bnet). True vertical integration is when a single company owns its entire supply chain - from materials to finished product, and everything in between; many large companies in the 19th and early 20th century worked on a vertical business model.
What are the benefits? The more vertically integrated a company is, the more control they have over their process. A vertically integrated company has fewer problems with delays in their supply chain, quality control, and market pricing of potentially expensive materials and components.
What are the drawbacks? A completely vertically integrated company is, first and foremost, anti-competitive. Historically, companies that own the entire supply, manufacturing, and distribution chain for one product are viewed as anti-competitive, and can run in to anti-trust regulations in the U.S.A, Canada, and Europe.
Vertical integration is also usually more expensive than horizontal supply chain management, because there are fewer opportunities for specialization and lean manufacturing processes. Additionally, innovation happens much more slowly, if at all, because small changes are much more difficult to make across a large supply chain.
What does this mean for manufacturing? Most custom manufacturing shops rely on long-term customers with which they have good relationships for their business. However, with this move, it is important to both diversify the types of customers that your shop sees RFQs from, and increase the focus on becoming a preferred supplier.
Most companies simply do not have the funds or the inclination to become fully vertically integrated - but they are looking to cut costs and have a more reliable supply chain. This means that once a shop has proven it can get jobs done correctly and in the timeframe requested, they are much more likely to see more RFQs from that company.
How can shops make use of this trend? Market your shop to both current customers and potential new customers, focusing on how you can help them cut both costs and question marks out of their supply chain management.
Information for this article was gathered from The Wall Street Journal, ManufacturingDigital.com's December 2009 issue, and Bnet.
Posted by Andrea Parrish on Tue, Nov 24, 2009
By Adrienne Jones, Sourcing Manager
Getting a wide variety of competitive quotes on your RFQ (or RFP) is the first step in ensuring that your businesses' supply chain is as healthy as possible. US and Canadian custom job shops are hungry for work, and three simple steps can ensure that you get the best-quality quotes for your manufacturing jobs.
1- Include clear, quality prints
The print is the first thing most job shops look at, and the most rich source of information for them to make an informed quote. Make sure that your print is clean, clear, and easy to read. High-quality .jpg image files (150 pixels per inch) or PDF files are the best way to email your files to supplier shops. If they request a fax, make sure the copy is clear before you fax it over.
2- Include a Delivery Date
No matter if your delivery date is next week or next year, by including a delivery date with your RFQ/RFP, you and the shop will be on the same page about the scheduling of your part. The delivery date will help the shop (and you) ensure that they don't quote on a job they will not be able to deliver on time.
3- Respond to Questions Quickly
When shops have questions about your RFQ/RFP, it is important that you respond quickly. This not only helps the shop know that you are an active buyer, but it ensures that they can get their quote in to you, or edit the quote, to be as accurate as possible.
Getting high-quality, accurate quotes from domestic job shops will make the custom manufacturing process simpler. Make sure that your RFQ stands out from the crowd!
Posted by Andrea Parrish on Thu, Nov 19, 2009
For decades, when companies have needed something manufactured, sending that rfq to offshore companies was part of the process - an easy way to get low-cost quotes and save money. Today, though, more and more companies are choosing to "re-shore" their manufacturing, finding that basing their supply chain domestically reduces their costs, increases the quality of the products they have manufactured, and even shortens the time between drawing board and marketplace.
It's a fairly simple formula - suppliers in low-cost countries are able to provide cheap labor - but they are not able to provide the communication, quality, quick shipping, and engineering services that are unique to domestic shops.
In years past, the strong dollar and easily available credit meant that buyers were more willing to work with low-cost countries to get their products as cheaply as possible. However, with the American dollar's value dropping, those cost savings are also evaporating - which has exposed many other consequences.
Often, the extra layers of communication with these companies can lead to delays and mistakes in the manufacturing process - and with 30 days or more shipping time each way, checking prototypes or returning products that do not meet specifications can take months. Integrating the supply chain for large assemblies can also be difficult, since parts being shipped around the world are often subject to delays.
As the San Francisco Business Journal reported earlier this year, companies as large as Tesla motors are choosing to have their major components manufactured domestically for these reasons, and more.
Keeping manufacturing close to the customer and close to the buyer just makes business sense - and more large OEMs, buyers, and supply chain masters are choosing to re-shore their custom manufactured parts.
Information for this article was gathered from: The San Franciso Business Journal, BT Business,and McKinsey Quarterly.