Your challenge:

You have a good product that you successfully manufacture using in-house vertical integration augmented by local contract manufacturers. But…

• You are struggling to grow against your competitors who are all priced near you.
• The lead times from your local CMs are really starting to grow and you expect that trend to continue as manufacturers consider onshoring to limited domestic producers.
• Supply, demand and the fact that local CM’s are now inching pricing up (because they can) has left you trying to raise prices rather than gain market.
• You are probably building more non-core subassemblies internally than you really should be, distracting you from a much-needed R&D focus and draining resources and money that could be used in staff retention, training, sales and marketing.
• You know that it takes an increase of 30% in sales to gain 3% on the bottom line, and 30% is a lot! It takes more marketing, a better feature set, competitive pricing and an enhanced business development team. It’s a whole chicken and egg thing on steroids.

Where do you get the money to build the revenue to increase the profit line to pay for the sales + R&D + more profit?

What if you could add 5%+ to your bottom line through a 20%-50% savings on select non-core parts and subassemblies that you currently manufacture internally and all the ones that you already purchase locally (egg).

That “found” $1M+ of cash can now fund your R&D, staff retention, training, sales and marketing and competitive positioning, pulling you out ahead of the competition and igniting company growth and prosperity (Chicken).

How do you “find” 20%-50% savings on select non-core parts and subassemblies?

• REDUxEngineering (https://reduxengineering.com/ )has a global network of pre-vetted contract manufacturers, across plastic, metal, and electrical, in multiple tariff-free zones saving you months of expensive qualification efforts.
• We also have quality audit staff on the ground at these locations to ensure the product going into the container meets your requirements, saving you headcount.
• REDUxEngineering supports your staff in any contract manufacturer engagement allowing you to safely and nimbly access multiple markets without the associated costly overhead.
• The REDUxEngineering team also provides design for manufacturing inputs that add another layer of savings to your new managed global supply chain strategy by optimizing your design for shipping, inspection and assembly.

But, “I haven’t budgeted for any consulting or third party expense”.

REDUxCOST^TM (https://reduxengineering.com/reduxcost/) delivers 4x return on investment! It not only pays for itself, but it also delivers an ROI that would make your broker blush! These are not just idle claims:

REDUxEngineering operates on a contingency-based model. We are paid 20% of what we save you. If you don’t save, we are not paid.

What’s more, you never pay REDUxEngineering. There is never any extra expense to budget for. You validate what we have saved you and then authorize 20% of that savings to be added to the contract manufacturers price. REDUxEngineering is paid by the contract manufacturer, and only after you have banked the verified savings. You always save 4X what REDUxEngineering is paid.

Now you can safely, and cost effectively source selected, non-core parts and subassemblies from large, highly specialized, pre-vetted contract manufacturers in tariff-free zones with minimal drain on your organization in a 4–6-month program that results in significant savings with little cost, time or risk. REDUx is there to support you as an extension of your supply chain and engineering strategy.

Break out of the “Chicken and Egg” cycle of frustration…Establish your competitive dominance with REDUxEngineering and our REDUxCOST^TM service with no financial burden and an enhanced competitive position that you can efficiently sustain, come what may.

Hop on our Calendar for a complimentary 20-minute assessment: https://app.apollo.io/#/meet/david_orton_b36

You have nothing to lose and everything to gain.

Case Study:

A geotechnical sensor technology manufacturer in British Columbia originally bought their cast and machined aluminum housing from local contract manufacturers. Early in their history they purchased their first CNC machine and moved the casing production in-house. Twenty years later they had a fleet of 21 CNC machines, housed in 50,000 square feet of machine shop, producing 8,000 cases annually. The cases had multiple components, required client specific drilled input modifications and had to be assembles with various screws and fasteners. The final loaded cost for each case was estimated at $240, however considering the staffing overhead, facilities and equipment maintenance, worker safety, rework and material waste costs and the numerous other hidden expenses involved in operating a machine shop of this scale, it can safely be assumed that this figure is light.

For a technology design and manufacturing company, such a burden for a non-core function can be devastatingly distracting and a massive drain on limited resources, cobbling the company’s growth potential…and it was.

REDUxEngineering’s initial design for manufacturing engineering inputs recommended changing the material to an injection moulded composite case, stabilized with a fiberglass additive. Manually drilled client specific holes were replaced with simple knockouts and many of the screws were replaced with snap-tight fittings. The result was a stronger, more watertight housing that took half the time to assemble.

The production was moved to one of our pre-vetted offshore manufacturers. The final landed cost of the case was $52 with a realized per unit savings of $188 (78%) and an ongoing annual savings to the company of $1,504,000, net of the REDUx fee. The project took 5 months with little time required of the client. The only up-front cost was $60,000 for the mould.

Several projects of this scale were done for the client and 5 yeas later they had gone from 30 employees to a staff of 400 at their Vancouver facility, repurposing the machine shop, liquidating the capital equipment and directing those resources to R&D, and reassigning the staff. Bonuses were being paid for the first time in two decades and employee benefits were dramatically improved.

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