Die Casters Report Sourcing Returning to the U.S.
There is little doubt that the die casting industry is facing its share of challenges during these economic times. Die casters have had to take every measure possible to maintain a profit and stay afloat. However, good news seems to be on the horizon.
In a recent survey of U.S. die casters, 78% reported that they have seen die casting parts come back from overseas during the last two quarters. According to these reports, die cast components are returning to the U.S. for three main reasons: concerns about part quality, customer-supplier proximity and overseas logistics.
Another prominent reason components are returning to the U.S. is because OEMs want closer proximity to their supply base. “We are tooling up an aluminum die cast part for a company in
“We have, within the last year, produced castings that were previously sourced offshore,” he said. “It is our understanding that two magnesium castings we produce, which were previously sourced offshore, were brought back to the U.S. for reasons of quality and proximity of the supply base.”
In part, manufacturing logistical issues with offshore sourcing have become more prevalent, according to some industry experts. The simple fact is that the distance between OEMS and their offshore suppliers makes it too costly and time-consuming for them. Heightened shipping costs and longer cycle times reduce, and in some instances, negate the cost savings of sourcing offshore.
Now that parts seem to be returning to the U.S., one way that a die caster can take advantage of this is by adapting to the change and becoming a dual source supplier.
The North American Die Casting Association (NADCA) in its independent study surveyed its member base and found that die cast components are coming back to
SOURCE North American Die Casting Association