Case Study - Get Metalwork And Keep It!

Case Study - Get Metalwork And Keep It!

Get Metal Work And Keep It!

Australian manufacturing is feeling the pinch. We all have clients, suppliers and media informing us the country is doing it tough. Precision sheet-metal business, machine shops, and fabricators found that to be successful they must be efficiently productive before anything else to prosper and grow in these challenging markets.

Too many businesses continue to use older technology and methodology in their production and these companies are feeling pressure on their profitability. Many of these businesses started producing small volumes and building over a longer period of time with old machines and labor-intensive processes. What has been found is this method takes too long and can’t be sustained over time that no longer works against emerging low cost countries.

Australian precision metalworking and engineering businesses appear to be holding onto CNC machinery for 15-20 years. When Australian businesses compare to natural competitors in neighbouring countries like China, Malaysia, Taiwan, Korea and Japan they rarely, if ever, find these businesses operating 15-20 year old machines. What is accepted in Asian manufacturing is that they cannot remain competitive unless the businesses are employing the latest technologies.

Many clients feel the lease repayments of a new CNC machine will increase their cost of sale. Some businesses do not invest in the latest machinery for this reason and are forced to grapple with high labor intensive activities that apply competitive pressures to increasing revenue, margin and profit. These clients discover that they cannot increase output with higher costs associated with machinery or a subcontract supplier that has become uncompetitive and expensive. To survive, these businesses must reduce the workforce that could have been avoided if they had made suitable and strategic investments to address gaps in their manufacturing capacity before it was too late.

Clients of Specialist Machinery Sales Australia have reported growth of their business following an investment in a CNC machine tool designed to increase output and improve efficiencies. Through implementing a specification driven selection that delivers increased capability and sector relevance, potential revenue streams are enhanced. Clients are able to forecast a more competitive, efficient and productive product offering when performance and quality concerns are addressed. This in turn produces cash flow positive outcomes to the business to meet current and future projects and creates happy customers.

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