Monday, July 6, 2009

Are happy days here again for the aluminum die casting company?

Are happy days here again for the aluminum die casting company? Good news for the American Aluminum Die Casting Company losing out to suppliers overseas. Orders of die casting parts erstwhile from abroad are coming back to the U.S., according to a recent industry-wide survey. Seventy-eight percent of those surveyed said they have experienced a return of die casts in the last two quarters.

Three main reasons were cited for this encouraging turnaround. First is concern on quality of products ordered from overseas suppliers. One outsourcing company complained particularly on painted or plated parts, saying that poor packaging results in damage to the ordered parts. The second issue working against sourcing die casts from overseas is customer proximity to the supplier which works to the advantage of an aluminum die casting company. US manufacturers now want to be closer to their supply base which understands their needs better and is willing to tool up for an order quickly.

Industry observers also noted that problems with overseas logistics are beginning to discourage more and more domestic manufacturers. These US manufacturers in turn are more receptive of local offers or are seeking business locally like with an aluminum die casting company. The geographical distance between the overseas suppliers and their American clients has made sourcing from abroad more costly. Firms with die cast materials supplied from China have been particularly affected by the metal price fluctuation in that country. Prices that had made the Chinese suppliers the better choice is just no longer there, industry observers noted. Hence, the US aluminum die casting company now is at an advantage with its ability to fullfil an order quicker, with the quality much better.

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Aluminum Parts Die Casting Company