{"id":255,"date":"2016-01-27T11:50:44","date_gmt":"2016-01-27T11:50:44","guid":{"rendered":"http:\/\/www.plastikcity.co.uk\/blog\/?p=255"},"modified":"2020-10-23T12:23:09","modified_gmt":"2020-10-23T12:23:09","slug":"the-real-cost-of-outsourcing-production-tooling-to-the-far-east","status":"publish","type":"post","link":"https:\/\/www.plastikcity.co.uk\/blog\/the-real-cost-of-outsourcing-production-tooling-to-the-far-east\/","title":{"rendered":"The Real Cost of Outsourcing Production Tooling to the Far East"},"content":{"rendered":"

When large OEMs such as JLR are \u2018waving the flag\u2019 in building a UK based supply chain, we are right to be more optimistic about the future of our Toolmaking industry.\u00a0 But do you need \u2018deep pockets\u2019 in order to be patriotic and support the cause?<\/strong><\/p>\n

<\/p>\n

We have spoken to a number of leading UK Toolmakers and put together a short blog that will hopefully help with your justification to \u2018Buy British\u2019.<\/p>\n

The obvious stuff!\u00a0 <\/strong>On the face of it, tooling produced in the Far East is going to be cheaper.\u00a0 That said, some of our PlastikCity Partner companies firmly believe that once you factor in costs such as travel expenses, increasing shipping costs and having to deal with the usual post-delivery \u2018tweaks\u2019 and unexpected problems, true cost differentials are typically only around 10%.<\/p>\n

Longer term costs<\/strong>.\u00a0 These are not always apparent from day one, but if a tool is correctly designed and specified, longer term productivity and reduced maintenance costs come into play.\u00a0 To drive this excellence of design you need to fully understand the end product and a client\u2019s long term expectations. Duncan Faulkner, Managing Director of Yorkshire based Faulkner Moulds commented, \u201cWe always consider tooling design with a view to efficient manufacturing.\u00a0 This helps to ensure reliable, smooth-running production in the long term.\u00a0 The care we take at the design and product development stage ultimately helps to reduce downtime, eliminates unnecessary design improvements, and increases the lifespan of the tool\u201d.<\/p>\n

Getting it right builds success<\/strong>.\u00a0 Developing a close working relationship with a customer can be key to a successful business.\u00a0 A good example of this is demonstrated by Telford based Sprint Tool & Die.\u00a0 The company manufactures all tooling in-house,and has recently re-located to larger premises and invested in new equipment.\u00a0 Managing Director Ian Amos commented, \u201cWe have a proven track record for working closely with our customers, something that is difficult to match if operating from a great distance and with the associated barriers of language and time-zones.\u00a0 We believe that\u00a0 this philosophy is the biggest contributor to our success,\u201d\u00a0 Sprint have entered the \u2018Toolmaker of the Year\u2019 category of the PIA\u2019s twice in recent years, going on to win on both occasions.\u00a0 The main judging criteria are based on a partnership between the toolmaker and their customer.<\/p>\n

A UK managed solution<\/strong>.\u00a0 There are obviously some excellent toolmakers based in the Far East, so if your project is managed by an experienced UK based team, there are certainly times when outsourcing is advantageous.\u00a0 Nick Skidmore of Fenton Precision Engineering commented, \u201c, we still occasionally source certain types of tooling from the Far East especially if say a suite of 20-30 moulds are being placed with Fenton, we sometimes need the Far East toolmakers to support. Over the years we have established suppliers who understand our build requirements and support with overflow work. Cores and cavities can be air-freighted over to be bench fitted to our ready and waiting tooling bolsters. We need to offer this service as it\u2019s very difficult to foresee what tooling orders will be placed during normally quarterly cycles\u201d.<\/p>\n

Time is money!<\/strong>Depending on complexity and size, typical tooling lead-times for UK suppliers are between 10 and 12 weeks.\u00a0 Unless you go to the extreme expense of air-freighting complete tools from the Far East, this is going to be attractive.\u00a0 And what if there is a major issue with the tool, and you have bought directly from an overseas toolmaker?\u00a0 In reality, you will probably end up having to have any corrections made in the UK at your own expense.<\/p>\n

Other considerations.\u00a0 <\/strong>If you still aren\u2019t convinced by the above arguments, then also bear in mind other factors such as<\/p>\n