Browsed by
Month: April 2019

Business of Pump Manufacturers

Business of Pump Manufacturers

The local manufacturers however in some what a stage where we have to deal with so many challenges like scarcity and high in raw material price, multiple tax mechanism of the government, labour problem and end up manufacturing high quality pumps for specific needs but can not compete with multinationals due to high manufacturing rate. The situation gets tougher when some small local manufacturers illegally produce and sell at cheaper price.

The ray of hope for the pump manufacturers is the foreign market as the current rate of export is 10% and it is increasing every day. To export pump have to make some changes in their policies like they need in depth market analysis for the specific demand calculation and they must make their pumps at per with the international quality along with its packaging.One of the most important factor in the export business is to appoint some expert and efficient distributors for your product and to participate in the international exhibitions with their product so that the buyer can assess your product and buy.

With the help of internet pump manufacturers can reach to the global market for research and technical upgrading.Indian government should also organise the small and medium manufacturers to reduce the illegal production and check the open policies which attracts foreign countries to have the cream out of local manufacturers’ mouth. With weapons like strong dealer base local pump manufacturers also make it big by encouraging the distributors and dealers regularly and introducing low cost automation in the production. India has got the talents to invent new technologies and with proper encouragement from the government and the industry they can invent new technologies to improve the qualities of the pumps produced in India so that in spite of strong competition pump manufacturers can make it large.

Electronic Contract Manufacturing

Electronic Contract Manufacturing

The market was ready for ‘electronic contract manufacturers’ that specialized in the design and manufacture of specific components that would then be sold to the OEM to be placed in the final product. Narrowing the focusing of a company to just one product or component, allowed them to offer economies of scale in the acquisition of raw materials, talent and expertise in the design process, and equipment for production. This cuts costs for the original manufacturer and frees up their capital.

With this new structure, manufacturing companies were able to produce a better product, more efficiently, and easily scale up or down to customer demand. In the design development process, usually the most complex and difficult part of the process, a contract manufacturer is more likely to accumulate a team of experienced engineers that will focus their expertise on the specific component. In the production process, they are more likely to keep up with the latest, high tech equipment and state-of-the-art technology.

Suppose there is a problem with one of the components. If the manufacturer is producing all the components in-house, it may take a while before it is found – and maybe even after it has gone to the end-user. In addition, the problem has to be solved using in-house resources and capital. When working with a contract manufacturer, in many cases component flaws have already been caught long before they reach the OEM – often due to experiences with other manufacturers. Often a third-party view of the problem is what’s needed, and the resolution is solely on the shoulders of that third-party.

Since an ECM only purchases materials for the components they produce, they are able to purchase in bulk offering the OEM substantial cost savings. And since they are purchasing from their individual supplier in greater frequency, the manufacturer takes advantage of the strong relationships developed.

Finally, the contract company will thoroughly test the components they provide for quality. They will stay at the forefront of technology proposing improvements and upgrading their product so that it works better, lasts longer, and is more efficiently. This is a daunting task for the original manufacturer that has hundreds of components to keep up with.

An electronic contract manufacturer is an expert in the components they develop and provide. This expertise offers extreme value.

Considerations when choosing an Electronic Contract Manufacturing partner

For many companies, especially small to mid-sized companies, having a contract manufacturing partner is not only a good idea, it’s critical to the success of the business. Besides pricing structure and quality requirements, there are several other items that should be considered in evaluating potential partners:

How much and why do they want your business – Choose a partner with compatible objectives.

Some companies may only be interested in the amount of money at stake. While it is important that the numbers match up for the benefit of both parties, find out what their main driving force is. Larger contract companies may be interested in smaller manufacturing companies if they offer the opportunity to gain experience in an industry that is new to them. Or a product that has big growth forecasts.

Learning the answers to these questions is important before proceeding to the length process of submitting an RFP, and more critically, entering a partnership.

If the business principles do not match up, the OEM may not get the attention they need to make their product successful.

What will the ECM be looking for in a partner – Provide accurate forecasts

No one knows where an original manufacturer plans to go unless they see a well-developed forecast. If they want to make the most of the partnership, they need to inform the contract manufacturer about where they have been and where they plan to go in the future. This provides needed credibility.

The contract manufacturer will need to know what level of risk they are signing up for, while determining what level of resources will be needed to meet the requirements. Will they be able to purchase materials when needed, will they be able to handle the inventory?

What are the expectations regarding inventory

Determining up front what the policies and liability for inventory are between the two companies will minimize the possibility of conflict, and surprises. Understanding inventory issues and supply chain management, and actively making efforts to reduce exposure, is crucial when forecasts do not match up to sales, or a crisis occurs.

How will the ECM handle product changes

With electronics changing at lightning speed, changes are bound to occur fairly regularly. Find out the preferences for handling product changes, and the process they have taken in implementing them in the past with other customers is very important.

Defining the level of involvement expected by each party in the change proposal, analysis, and execution is important for the success of the partnership and the product itself.

Partnering with a company that has a large amount of experience in the multiple phases of a product lifecycle will provide valuable input in the various phases. Therefore, this experience as well as the documentation process should be discussed.

Challenges in Manufacturing Industries

Challenges in Manufacturing Industries

  1. Regulatory Compliance and traceability: Manufacturers of all sectors faces increasing regulations which aims in ensuring product safety to managing disposal and reclamation procedures. Consumers may be benefited from some of the regulations, and each of the regulation adds an additional burden to the companies that must comply with the requirements. Complete visibility in the global supply chains is ensured by the manufacturers and they can prove their own deference and that of the suppliers also. Regulations needs the ability to track where the specific items have been used or to trace materials from an end item at a customer site back to specific materials used in the manufacture. Keeping in view the regulations and managing compliance reporting is a full time activity for multiple people or teams at many manufacturing companies.
  2. To keep Product Relevant: Product innovations come at varying pace and manufacturers struggle to keep up. With the new concept the companies compete to be first in the market, the temptation to skip steps on quality materials can be challenging. There should be adequate time for the companies to ensure that the specific materials like wires and cables are in line with the operating conditions. A new product needs to develop a reputation of good quality to drive out poor quality. The companies will become more systematic about managing innovation rather than to leave new product ideas to chance. The preferences in product are changing so quickly that this delays the introduction of once popular products. For the success of manufacturing it is essential to implement the procedures to keep a steady stream of new product ideas and innovations in the pipeline.
  3. Aging Workforce/Skills gap: As per age, the workers retire and leave their workforce and take along with them their hard-learned skills and experience with them. The workers who are retiring are not available to be replaced easily as the new ones do not have the needed skillset for many critical roles. Manufacturers will have to work with the schools in their communities to check that the educational system includes the topics and skills training for the younger workers to fill these roles. Besides, manufacturers may need to be more flexible with the aging workforce so as to allow workers to slow down by working part time rather than to retire suddenly. This will enable the aging workers to pass on their skill to the next generations of workers.
  4. Environmental concerns: Various aspects of the manufacturing process is affected by the local and regional regulations, from the ability to use certain materials, to worker exposure, to disposal of waste and byproducts. There is a harsh environment for manufacturing and hence should ensure the safety and health of workers with proper care and equipment. Disposing of waste products and recycling materials add costs and complexity to manufacturing and also result in a healthier environment and protection alike for both workers and customers.
  5. To maintain a balance with output: In a manufacturing unit it is very essential to keep the equipment functioning. Preventive maintenance should be taken regularly including worn wires and cables which help in increasing output and ensuring customer satisfaction with delivery lead times. Manufacturers are sometimes tempted to postpone preventive maintenance or replace factory components with lower quality items. The practice creates unsafe conditions in harsh manufacturing environments if these lesser components can’t stand up to operating conditions. The operating cost can be kept low and output high by using components, cables and wires that meet or exceed manufacturer specifications and to perform preventive maintenance on recommended schedules thus ensuring worker safety. By meeting these challenges the manufacturing companies can stay on current legislation and technology and be responsive to meet the needs of workers and act responsibly in the best interest of all parties.

Using a Foreign Manufacturer

Using a Foreign Manufacturer

United States businesses many times use foreign manufacturers because the cost of manufacturing a product in other countries is usually lower than the cost of manufacturing it in the US. Nevertheless, it is important to be aware of the additional costs of using a foreign manufacturer versus having the product produced domestically. Two additional costs of using an foreign manufacturer are shipping and bank fees. Shipping costs are obviously much higher when doing business with another country. As for bank fees, many foreign businesses will only accept payments via bank transfer. The fees for making bank transfers vary from bank to bank so look into what these will be ahead of time.

Imports from foreign countries to the United States are regulated by the U.S. Customs and Border Protection agency. The regulations administered by this agency are highly complex and detailed, and it is very important for anyone interested in dealing with a manufacturer in another country to determine exactly which regulations apply to the product or products being imported. Duties on imports are also additional costs of importing products.

Because most, if not all, of your correspondence with a foreign manufacturer is done from a distance, it is also important for you to safeguard against the risks associated with dealing with a potentially unreliable company. For this reason, it is strongly advised to use only reputable companies that have demonstrated reliable service in the past. If a company steals your money or fails to deliver on an order, it will be far more difficult for you to take legal action against the company than it would be if you were dealing domestically. There are many resources to be found online that can help you determine whether the foreign manufacturer you are considering has shown themselves to be reliable.

Bad Credit Manufactured Home Loan

Bad Credit Manufactured Home Loan

The manufactured home loan industry has undergone several changes over the past couple of years and the main change is that most all banks have discontinued their subprime manufactured home loan programs. Many still loan under Fannie Mae guidelines but these loans are capped at a maximum 65% loan to value. The problem with this is that many manufactured home owners purchased their properties a few years ago at much higher loan to values when the banks were much more flexible in their loan programs, so when a borrower tries to get cash out for debt consolidation today, they realize it’s almost impossible to find a lender who will go to 80-95% loan to value.

Manufactured homeowners with bad credit are having a tougher time finding mortgages for their homes and many are in adjustable rate mortgages that are starting to climb towards the sky. Leaving borrowers frustrated with very few options in finding a decent loan for their properties.

The truth is that there are still lenders, investors and mortgage brokers that specialize in the subprime financing of manufactured homes. Subprime, meaning borrowers with less than perfect credit to even terrible credit. Even A paper borrowers may be forced to go this route to consolidate debt and obtain a loan with a higher loan to value

The first thing every manufactured homeowner with bad credit should do is their homework and there is no easier way than the good old trusty internet. When searching the web, keywords will be the golden key to connecting with the right lender, investor or mortgage broker. Try keyword phrase searches such as, bad credit manufactured home loan, manufactured home loan, manufactured home loans, manufactured home lenders, subprime manufactured home loan, etc. Each search will pull up different results. Some sites will be just lead portals for companies to sell your information and some will be the companies you want to talk to.

When searching for a manufactured home loan, my advice is to always talk with someone or a company that specializes in these types of loans. If you just go down to your local mortgage company down the street, chances are they can’t help or will give you the run around leaving you stressed out and frustrated.