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Why Craftmanship Is Key for Sheet Metal Fabrication Jobs

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Sheet metal fabrication projects are very complex and have a lot of moving parts. To avoid costly mistakes, you need a sheet metal fabricator who can complete your project exactly to your specifications. You need a partner that values craftmanship and efficiency above all else.

At Highland Machine, we’re an end-to-end fabrication shop, and we handle the custom finishing and assembly completely in house.

Our sheet metal fabrication process

Highland Machine is a one stop shop. Whether you need a simple component or complex assemblies, our team can deliver a product to your precise specifications. Depending on the component and its requirements, we will use one or several processes, which include laser cutting, CNC punching, TIG, MIG, and spot welding, robotic welding, and forming.

After fabrication, we finish your product with anodizing, powder coating, or with stainless steel polishing or graining. Once everything is assembled, we can help manage your inventory with product stocking agreements. Dealing with a single vendor controls costs, ensures better quality and saves you valuable time.

Craftsmanship at Highland Machine

Precision is the foundation of our craftsmanship, which we define as the ability to tailor a tenable, unique solution to a problem. Our dedication to craftsmanship has helped first responders and healthcare professionals by developing the AerVent, a mobile isolation device that reduced the possibility of exposure to COVID-19, with Aeragen. This unit cuts back on the need for large isolation rooms and helps protect frontline staff.

We took the early AerVent design and developed a working prototype within 48 hours. Then we worked with the Aeragen team to make the device suitable for larger scale, cost effective production.

We’ve also designed and manufactured trailers for mobile power generation systems, plus machined castings, electrical component cabinets, and custom metal enclosures. You can see the extent of our work by checking out our case studies here.

Why choose Highland Machine as your sheet metal fabricator

Highland Machine has been in business since 1944. Our legacy has been one of efficiency, service, and expert knowledge when it comes to sheet metal fabrication and finishing. We work with a variety of materials, including (but not limited to) plastics, cast iron, aluminum, and steel.

Everything at Highland Machine is completed in house. After we fabricate or machine your product, we also offer manufacturing design services, mechanical and electrical assembly, powder coating & finishing, and inventory management. Putting the entire project under one roof will help streamline production and make the process much more efficient.

How our craftsmanship can help you

When you plan for a sheet metal fabrication project, it’s important that it fits your budget and meets your timeline. Our craftsmanship and attention to detail make certain that your project gets done right the first time. Highland Machine provides finished products and components for industries that include:

  • Medical
  • Industrial equipment
  • Automotive
  • Aerospace
  • Printing

Highland Machine delivers the quality of sheet metal fabrication that you demand. Contact us now to schedule a consultation.

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Meet Jared

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He’s been a part of Highland since he was a kid

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ custom_margin=”|auto|0px|auto|false|false” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ _module_preset=”default” text_text_color=”#000000″ text_font_size=”18px” header_6_font=”|800|||||||” header_6_text_color=”#000000″ header_6_font_size=”18px” locked=”off” global_colors_info=”{}”]Jared has been working at Highland Machine for 17 years, following in his father’s footsteps who was an employee for 45 years. Jared remembers visiting his dad at his job while he was growing up. At home, he enjoys his two children, six and eight years old. The family always looks forward to spending time together outdoors while fishing, hunting, golfing, and going to the lake.

“I grew up at Highland Machine. I would always come in with my dad and hang around the office, so I knew everyone. While in college I started Highland’s summer scholarship program and then started working here full time as a foreman. I worked as a foreman, production coordinator, and in a quoting position, so I got to experience a lot of the business. Since I was a younger one in the office, my bosses always appreciated the different perspective I would bring.”

At Highland Machine, everyone is focused on improvement

“It’s really awesome to be a part of an organization where everyone is focused on the same goal and moving forward. We even have sheets in the shop called Continuous Improvement Forms that employees can fill out. If someone has an idea to build something a better way, then we’ll get the foreman, supervisor and everyone else together to look at the part and make it better. I love that.”

Tip for our customers

“We do a lot via email nowadays, but it’s still really great when a customer comes to check out our operation or when we can see their product in person. It’s very helpful for our team to understand the product, so we can figure out ways to produce it easier and save our customers money. Also, more communication is always key.” [/et_pb_text][/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https://ehlm.winsbystorage.com/wp-content/uploads/2022/04/jared.png” title_text=”jared” _builder_version=”4.21.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” alt=”jared” sticky_enabled=”0″][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.16″ custom_margin=”1px|auto|0px|auto||” custom_padding=”0px|||||” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_button button_url=”https://ehlm.winsbystorage.com/contact-us/” button_text=”Start Working with Highland Machine” button_alignment=”center” _builder_version=”4.16″ custom_button=”on” button_font=”||||||||” custom_margin=”||50px||false|false” custom_padding=”|50px||50px|false|false” custom_css_main_element=”text-transform:uppercase;” global_colors_info=”{}”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_fullwidth_image _builder_version=”4.16″ global_colors_info=”{}”] [/et_pb_fullwidth_image][/et_pb_section]

Steel Prices: Where They Were, Where They’re Headed, and What It Means for You

Steel prices exploded throughout 2020 and 2021. Largely due to the COVID-19 pandemic and the resulting supply and labor disruptions, the price of steel soared 219% between January 2020 and August 2021 and reached a peak in September 2021. Since then, it has been falling and remains very unpredictable.

Steel prices are expected to stabilize, but it is currently unclear whether or how soon they will reach the pre-COVID-19 historical average.

Why did steel prices surge?

As you already know, the COVID-19 pandemic threw supply chains into complete chaos over the past two years. Steel is an essential metal found in everything from cars and heavy equipment to home appliances and furniture. At the very beginning of the pandemic, demand dropped as some manufacturing and building operations shut down, but then it quickly bounced back and surged to record highs.

The reason for the drastic increase in steel prices is the fact that many producers slashed output during the first half of 2020 due to a drop in manufacturing. Once manufacturing rebounded during the second half of 2020 and into 2021, demand massively outpaced available supply or production capabilities.

The increase in consumer demand for many products containing steel, like appliances, also strainedan already tenuous supply situation, further driving up prices.

The current state of steel prices

Since last September, steel prices have begun to stabilize as producers have made up the supply deficit and are now more accurately matching current demand. The problem that remains for steel producers and manufacturers alike, however, is the uncertainty.

It’s more difficult than ever to answer questions about where we are at in the pandemic and whether COVID-19 will worsen again, whether prices will go up or down, or whether steel demand for manufacturing will increase or decrease.

The good news for manufacturers and consumers is that most experts and industry leaders expect the price of steel to level out soon; they only differ on at what price.

What does this information mean for our customers?

The best anyone can say about the current steel market is that we will have to wait and see what happens to prices. A stable price looks likely, which means it will be easier for you to plan out your steel projects. At Highland Machine, we use vetted and trusted suppliers to source materials at competitive prices. Working closely with these suppliers, we will continue our efforts to mitigate the impact of any future market disruptions to our customers.

You’re our number one priority, and we will continue to work hard to make your projects as predictable, cost effective, and seamless as possible.

If you have questions, please contact us today.

What Is the Sheet Metal Fabrication Process?

From Sheet Metal Fabrication to Custom Metal Finishing to Final Assembly

We’re your one stop shop

When manufacturing a product, sheet metal fabrication only takes you half way there. Once the part or product is fabricated, it then needs to be machined to meet your specifications, powder coated, assembled, and stored. Handling all these different steps of the project with a collection of vendors will often lead to increased costs, longer timelines, and less consistent quality.

At Highland Machine, we’re more than a metal fabricator. We’re an end-to-end operation that takes your product from design to fabrication, all the way through assembly and storage.

What is the sheet metal fabrication process?

By choosing a sheet metal fabricator with broad in-house capabilities, you only have one point of contact for the entire project and don’t have to worry about shipping your product from vendor to vendor at each stage.

Here’s what the sheet metal fabrication process looks like:

  1. The part or product is fabricated using laser cutting, CNC punching, TIG, MIG, and spot welding, robotic welding, and stamping and forming.
  2. Your fabricated product is precision machined through CNC milling and CNC turning to ensure it meets your exact specifications.
  3. The sheet metal is then finished using powder coating, stainless steel finishes, anodizing, or plating.
  4. The finished components are assembled to deliver a completed product that is ready for your customers.
  5. Storing inventory so that you can take advantage of the cost saving benefits of large production runs.

Benefits of a one stop shop sheet metal fabricator

Whether you need a simple component or complex assemblies, taking the sheet metal fabrication process and putting it all under one roof will help streamline production and make it much more efficient.

Lower costs—You can better control costs because you’re dealing with one vendor and one team instead of four or five. By contracting multiple services from a single shop, you’ll receive a break on the price compared to using multiple shops.

Quality control—From auditing to monitoring, it is much easier to ensure one shop is meeting your high standards than having to keep tabs on multiple. If there is an issue, you immediately know who to contact to determine the cause and get it fixed. You don’t have to coordinate multiple partners to find out where the process went wrong.

Save time—If you use different vendors for welding, finishing, assembling, and storing, you’ll need to ship your product to different manufacturers at each stage of the process. By not using a one stop shop sheet metal fabricator, you’re adding unnecessary costs to your production process as well as significantly lengthening the timeline for project completion.

Work with Highland Machine

Forget cutting metal with one shop, welding it in another, painting it somewhere else, and then moving to a new location to have your final product assembled. At Highland Machine, we handle each stage of your project. From concept to finished product, we focus on cost efficiencies and top quality.

We can even help you with the design of your product, in order to ensure it’s suitable for long production runs and engineered in the most effective way possible. Once you’re producing a large number of products, you can use our inventory management services to be confident you’ll always meet demand.

If you’re looking for end-to-end sheet metal fabrication and custom metal finishing services, contact Highland Machine today.

Why Work with a U.S. Sheet Metal Fabricator: Lower Costs, Shorter Lead Times, Higher Quality

Whether it’s for sheet metal fabrication, assembling electronics, or any other type of manufacturing, many U.S. companies use overseas manufacturers to reduce labor and production costs. Although creating products abroad may result in short term cost savings, in the long run, there are a number of valuable benefits to using a U.S. manufacturer.

Top reasons to use a U.S. based sheet metal fabricator

When it comes to choosing a sheet metal fabricator, there are several factors that you should consider:

  1. Shorter lead times–With your sheet metal fabrication completed within the U.S., your products have less distance to travel from the manufacturer to the distributor or retailer. The result is that you can get your sheet metal component or product to the end user much faster.
  2. Reduced logistics costs–Although using manufacturing facilities based in other countries may help you save on labor and production, you’ll then have to pay substantial logistics costs to move your products halfway around the world. With a U.S. sheet metal fabricator, you’ll save significantly on inbound and outbound delivery and shipping costs.
  3. Better quality control–It’s difficult to monitor the practices and quality of manufacturing facilities in far away countries. Sheet metal fabricators in the U.S. must be certified and adhere to certain quality standards. Rules and regulations may be different in foreign countries, potentially leading to a lower quality product. It is also easier to visit U.S. manufacturers to ensure your standards are met than it is to travel abroad.
  4. Environmentally friendlier–Using a U.S. based sheet metal fabricator not only reduces your transportation and delivery costs, it also cuts down the amount of energy needed to move your goods. By manufacturing in the United States, you can do your part to lower greenhouse gas emissions and gain the appreciation of eco-minded customers.
  5. Superior customer service–By working with an American sheet metal fabricator, you’re more likely to be dealing with customer service representatives who are based in the United States, reducing the chances of miscommunication or disconnects about what is needed.
  6. Creating more jobs for your community–Choosing U.S. based manufacturers means you’re helping create jobs for Americans in communities like yours. You’re supporting both the local and national economy and enhancing the ability of families in your town, state, and country to be successful and thrive.

Work with Highland Machine, your U.S. sheet metal fabrication partner

To complete a sheet metal fabrication project successfully, you need a manufacturer that acts as your partner. It’s much easier to be a part of the process and control costs and quality when you work with a sheet metal fabricator based in the United States.

A fabricator’s supply chain can have a big impact on pricing and availability, so it’s crucial to know where they source their products and complete the manufacturing. Working with a partner that sources materials locally, such as Highland Machine, can help ensure that your lead times and costs are not impacted by international shipping delays and trade requirements.

Contact Highland Machine to quote your next project today!

The Benefits of Managed Inventory for Custom Sheet Metal Enclosures

When it comes to custom sheet metal enclosures you have two options:

  1. Try to predict when you’ll need more inventory, hope leads times and pricing haven’t changed, and attempt to replenish your stock by the time you’ll need it.
  2. Partner with a metal fabricator that offers managed inventory services to have inventory ready when you need it.

It may be tempting to order what you need when you think you’ll need it, but over time this may lead to additional costs and product delays for your end customers. Keep reading to learn more about the benefits of managed inventory for your custom metal fabrication.

Never Run Short on Your Custom Sheet Metal Enclosures

One of the primary benefits of managed inventory is having inventory ready when you need it. Picture this scenario: you receive a large order for your custom sheet metal enclosures that clears out all the stock you had in-house. The next day another order for 25 units comes in, but it’s needed right away.

If your sheet metal fabrication partner offers inventory management services (and you utilize them), then you’ll be ready to accept that second order. If you aren’t and order 1 took you by surprise, your lead times may result in losing order 2.  

Lock in Prices Upfront

Price volatility can occur at any moment, but with inventory management you can lock in your prices upfront. 

Take the industry-wide sheet metal shortages that struck as a result of the pandemic, for example. Sheet metal shortages have led to industry-wide price increases. If you were already utilizing your sheet metal fabricator’s managed inventory services, you likely felt less, if any, impact of that price volatility because you had inventory on hand that had been purchased prior to related pricing changes.

Take Advantage of Price Breaks

In addition to locking in prices upfront, managed inventory can help you save on the cost of your custom sheet metal enclosures. Many fabricators offer price breaks on high-volume orders. so the more you buy, the lower your individual product cost becomes.

See how our customer, Bitrode, has utilized our inventory management services to fabricate a higher volume of their electrical cabinets at a lower overall cost. Plus, they benefit from faster shipments when cabinets are needed in-house.

Pay Reduced Freight Costs

Another decision that companies have when it comes to their sheet metal fabrication is fabricating and storing inventory in the US or overseas. While it may look less costly on paper to have you product manufactured and stored overseas until it’s needed, this can quickly add up.

Let’s explore these two scenarios:

Scenario 1: Overseas Fabrication

If you’re working with an overseas sheet metal fabricator, you might benefit from a lower cost per item and reduced inventory management costs. While this can be enticing, there are a few more considerations that can make it more expensive and riskier than a fabrication partner located in the US.

First, it’s important to consider the freight costs to transport the product to the US. Just like price volatility occurs in raw materials, import and freight costs can range and quickly add up. If your inventory is already sitting in a warehouse overseas, you have limited options to avoid skyrocketing freight costs (unless you want to pay another manufacturer to remake the product in the USA).

Next, you must consider the overall shipping times and potential delays. Having a product imported can lead to delays in your delivery times, and leaves you open to external delays from backed-up ports and canal jams. Plus, if you have an issue with your product once it’s received, you go through that endeavor – and cost – twice.

Scenario 2 – Made in the USA

On the contrary, if you’re working with a partner that fabricates their products in the US, you don’t have the same degree of price or delivery volatility. While freight costs can change slightly, you won’t be impacted by the wide range of costs associated with imports. Plus, access to your excess inventory won’t be dependent on whether a cargo ship can access a port.

Instead, you’ll have access to inventory that’s close to home and can be quickly shipped out right when you need it.

Utilize Managed Inventory for Your Custom Sheet Metal Enclosures

When it comes to your custom sheet metal enclosures, the benefits of finding a partner with managed inventory solutions are hard to overlook.

If you’re looking for a partner that proudly fabricates and manages inventory in the USA, send us a message to learn how we can help.

Benefits of Visiting Your Sheet Metal Fabrication Facilities

When you’re looking for a new sheet metal fabrication partner – or vetting your existing one – it’s important to consider more than just the number on a quote. You need to factor in their overall capabilities, communication, quality, and the team you’ll be working with. The best way to do this is by visiting your sheet metal fabrication facility.

On-site visits allow you to take a wholistic look at your potential partner to determine if they’re the right fabricator for your needs, which is why we invite all our customers to see our shop for themselves.

Keep reading to learn more about the benefits of visiting your sheet metal fabrication facilities.

Open Lines of Communication

Having an open dialogue ensures your metal fabricator understands the nuances of your products and works as a partner to you, rather than just churning out parts. Site visits allow you to develop a personal relationship with your fabricator; talk through your design; look for cost-saving, quality-improving enhancements; and create a rapport beyond digital communication.

See The Sheet Metal Fabrication Process

It’s one thing to hear how your sheet metal fabricator will develop your products, it’s another to see the process from start to finish. During your visit, you’ll see firsthand how their products are fabricated, including any additional value-added capabilities such as engineering, powder coating, assembly, and inventory management.

Determine Equipment Capabilities

In addition to seeing how products are made, visiting your sheet metal fabricator allows you to see what equipment they have. Knowing the machines they have, maximum sizes they can fabricate, and any machinery they don’t have enables you to make an informed decision on who to partner with.

Plus, you can see how well they maintain their equipment. If machinery looks worn down, it could be a sign that maintenance is looming, potentially delaying your lead times.

Review Sample Parts and Products

When you’re on a site visit, don’t forget to request seeing sample products. If they manufacture products like yours, try to time an in-person visit with when they’re fabricating that product. This lets you evaluate their quality of work on relevant parts and components.

Visit Your Sheet Metal Fabrication Facilities

From building rapport to vetting product quality, site visits are an important consideration for choosing a sheet metal fabrication partner.

If you’re near Highland, IL, contact us to schedule a visit to Highland Machine. We can take you through our facilities, plus you’ll get to meet members of our sales and engineering team. Can’t make it? Check out this virtual behind-the-scenes look at our space.

Benefits of a Sheet Metal Fabrication Partner

When it comes to sheet metal fabrication, there are two ways you can purchase your products. You can work with a fabricator that just fulfills orders and works for you, or you can invest in a sheet metal fabrication partner that has your best interest in mind.

While it may be tempting to select the first company to provide a reasonable quote to supply your product, it’s important to consider the long-terms benefits of identifying the right partner.

Cost-Savings Opportunities

One of the biggest benefits are the cost-savings opportunities they may be able to identify.

By working with a partner instead of a one-off supplier, you have a direct line of communication to your fabrication team. This peer-to-peer communication allows them to identify long-term savings, such as:

  • Price reductions on high-volume, recurring orders
  • Identifying design adjustments that can reduce costs
  • Determining additional services to value-add that can result in overarching savings, such as powder coating or assembly
  • Freight reductions for recurring orders through consolidated shipping

Over time, these savings add up and can result in huge long-term benefits.

Upfront Solutions

Having a partner that understands your company’s needs also allows them to identify potential problems before they happen and proactively provide solutions.

For example, a dedicated fabrication partner would know your typical order schedule. If they anticipate that their team will have a large order coming in from another customer, they can proactively adjust your order schedule. For instance, they may move up your order production to ensure your delivery schedule isn’t impacted.

A fabricator that isn’t invested in the partnership wouldn’t know of this need, which may result in a delayed shipment.

Advanced Technical Knowledge

It’s important to work with a team that speaks your language.

Having a sheet metal fabrication partner ensures that you have dedicated production managers and engineers that understand the technical intricacies and abbreviations in your drawings.

This mutual understanding ensures that your custom parts and components are fabricated to your exact needs the first time. Plus, it helps keep your product development on schedule by eliminating back and forth conversations to verify product specifications.

In addition to helping understand what’s on your drawings, the right fabrication partner will understand the technical requirements of your products beyond what’s written on the drawing. This allows them to identify the cost-savings opportunities and provide proactive solutions shared above.

Working With You, Not For You

Overall, the benefits of working with a partner ladder back up to one key benefit: having a partner that serves as an extension of your team.

By trusting in a partner that works with you, not for you, you gain access to a team of fabrication specialists that have your company’s best interest top-of-mind. This means that they put your interests first, finding cost-saving, timeline-reducing solutions that help improve your bottom line. Plus, the right partner will have a commitment to delivering a quality product, which typically includes an ISO 9001:2015 certification.

Find the Right Sheet Metal Fabrication Partner for Your Company

Once you’ve been working with a sheet metal fabricator for a while, it’s important to make sure that they’re serving as a reliable partner to your team.

If you are looking for a dedicated fabrication partner, we know a team that would be happy to help.

Vetting Local Sheet Metal Fabricators

When working with a sheet metal fabricator, you’re not just hiring a company – you should be choosing a collaborative partner. To ensure a successful product, it’s important to continually evaluate the relationship over time and determine if your sheet metal fabricator’s capabilities meet the needs of your product.

There are a few key things to consider when vetting your sheet metal fabricator. We’re breaking down six considerations to help you evaluate your partnership.

Work History

One of the main things to consider when evaluating your current sheet metal fabricator is looking at your overall work history.

Some questions you may ask yourself are:

  • Have they continued to deliver products on time?
  • Have they created a consistently high-quality product?
  • Have they anticipated your needs and been a proactive partner?

When doing this, take the entirety of the partnership into account and any improvements (or regressions) over time. For example, if you’ve worked with a fabrication partner for five years and in the last two years they haven’t maintained their quality, it may be a sign it’s time to find a new partner.

Capabilities

Often, professional sheet metal fabricators will have additional services beyond sheet metal fabrication. These added capabilities can save costs and reduce delivery timelines by not shipping products to multiple manufacturers.

Consider if your current partner offers:

By working with a company that provides a full range of services from engineering through inventory management, you gain a partner who can help oversee all aspects of your work, identify additional cost-savings, and have your product completed under one roof.

If you haven’t discussed your fabricator’s value-added services previously, it’s important to get the conversation started.

Availability

In addition to ensuring your fabricator has a wide range of capabilities and has been a reliable partner, keep in mind their upcoming availability. If they will not be able to fabricate a new product for you or cannot keep up with a new high-volume order, it might be time to bring in a second fabricator to assist with overflow.

It’s also beneficial to see if your fabricator offers inventory management and just-in-time delivery. By having additional product available for last-minute orders, you’ll not only have product ready right when you need it, but you may also benefit from price breaks for fabricating higher-volume orders.

Up-To-Date Certifications

When you first started working with your sheet metal fabrication partner, you likely inquired about an ISO 9001:2015 certification.

While this is a large consideration when initially selecting a fabricator, it should be an ongoing consideration. Every year your sheet metal fabricator must be reassessed by their certifying body to maintain this certification. If your fabricator has not maintained their ISO 9001:2015 certification, it may be a sign that they have not maintained their quality standards.

Pricing

Pricing is also something that may change over time. If your fabricator’s costs have significantly increased and you can no longer develop a cost-effective product with them, it may be time to look for some alternate quotes from additional companies. While you may find that your fabricator’s costs are still competitive, you may find a similar quality item for a significantly lower cost elsewhere.

Supply Chain

Do you know where your local sheet metal fabricators source their materials?

A fabricator’s supply chain can have a long impact on pricing and availability, so it’s crucial to know where they source their products and what implications it may have. Working with a partner that sources materials locally, such as Highland Machine, can help ensure that your lead times are not impacted by international shipping delays and trade requirements.

Evaluate Your Partnership

The six considerations above can help you vet if you’re working with the right sheet metal fabrication partner for your company.

If your partner is reliable, cost-effective, maintains their commitments to quality, and offers the services you need, then the health of your partnership is intact, and it makes sense to continue working with them.

However, if they are failing to deliver on the considerations above, it might be time to look for an alternate sheet metal fabricator. If you’re looking for a local sheet metal fabricator with a wide range of services and a commitment to quality, contact Highland Machine today. We’d be happy to offer a free quote and discuss partnering with you.

The Real Cost of Custom Enclosures

When looking into the cost of working with a new manufacturing partner, it’s easy to focus on your proposal’s total product cost. But just because one manufacturer’s price looks less expensive doesn’t mean it will be in the end. It’s necessary to break down all the considerations for the cost of your custom enclosures and components to ensure you know the true cost of your investment.

Fabrication Considerations

When ordering multi-component products, you can either have everything built and assembled under one roof, or multiple-sourced parts can be assembled at your facilities.

While the under-one-roof option might appear more costly, the individual components can quickly add up – and in some cases, cost more.

Imagine you’re looking to produce custom enclosures made of a cabinet, door, gasket, and locking latch. You can go about this in two ways.

Fully-Assembled Custom Enclosures vs. Multiple Components

Consider this example: Ordering a complete, ready-to-ship product or separate components requiring in-house finishing and assembly.

An end-to-end fabrication partner like Highland Machine can help deliver this from start to finish with just a few steps.

Scenario 1 – Highland Machine quotes $100 per assembled cabinet
  1. A purchase order is issued for 100 fully-assembled cabinets
  2. Highland Machine fabricates, powder coats, and assembles all components, including items not manufactured in-house (e.g., gasket, plexiglass window, keyed latch, etc.)
  3. Highland Machine ships the fully assembled cabinets to your company
  4. You receive all the components in the designated lead time and process the receiving record
  5. You receive and process the invoice
  6. You issue payment

By ordering through an end-to-end manufacturer, you save on freight costs, reduce lead times from shipping components between vendors, and your team only processes paperwork for one vendor.

Scenario 2 – Three separate vendors quote a total cost of $75 per cabinet
  1. A purchase order is issued to Vendor A for 100 cabinets
  2. A purchase order is issued to Vendor B for 100 doors
  3. A purchase order is issued to Vendor C for 100 gaskets and latches
  4. Vendor A fabricates the cabinets and ships to your facility
  5. You process a receiving record for Vendor A
  6. Vendor B fabricates the doors and ships to your facility
  7. You process a receiving record for Vendor B
  8. Vendor C fabricates the gaskets and latches and ships to your facility
  9. You process a receiving record for Vendor C
  10. The cabinets and doors require powder coating, so you issue a purchase order to Vendor D for powder coating
  11. You repackage and ship the doors and cabinets to vendor D
  12. You process a receiving record for Vendor D
  13. You receive and process the invoice from Vendor A
  14. You receive and process the invoice from Vendor B
  15. You receive and process the invoice from Vendor C
  16. You receive and process the invoice from Vendor D
  17. You issue payment to Vendor A
  18. You issue payment to Vendor B
  19. You issue payment to Vendor C
  20. You issue payment to Vendor D
  21. You assemble the powder-coated components

Is it still less expensive?

In scenario 2, you processed four purchase orders instead of one, received five freight bills versus one, and processed four receiving records, received four invoices, and processed four payments, not one.

Again, did you save anything based on the quoted price alone?

In addition to the extra freight costs and transit times, the multi-source option requires more effort from your team – additional paperwork, additional coordination of vendors, and assembly of the final product – each of which is a cost consideration. Now your $75 quote per cabinet can cost well above $100 per unit.

Quality Considerations

While cost is a large factor in any purchase, it’s also essential to consider the quality implications of using multiple vendors. The more vendors involved, the more room for error.

By working with one ISO 9001:2015 certified partner, you have one accountable source for your quality products.

The All-in-One Choice for Custom Enclosures

Though it might look most cost-effective at first glance to use multiple vendors, consider the implications. By using one trusted partner for your fabrication, powder coating, assembly, and inventory management, you can reduce costs and lead times while ensuring a high-quality product. If you’re looking for a partner that can do it all, look no further. We’d be happy to provide a free quote for your custom enclosures or components.