Thursday, July 2, 2009

Building a Competitive Enterprise - Moving Manufacturing Back To The United States

Thousands of Americans have lost their jobs since manufacturing has been moved out of the United States and into developing nations. Maverick Hammers is playing a key role in bringing manufacturing jobs back into the United States. Our President and CEO, Sean Raimbeault, believes that it is possible for U.S. manufacturers to compete with global companies. This simply requires a strategic approach to creating a business that provides high-quality products at a fair price which Maverick Hammers is committed to doing.

What we’ve learned so far is that effectively competing with global manufacturers requires the following:

An understanding of per unit labor costs. Many employers believe that keeping costs low is best done by offering the lowest hourly wage possible to employees which is part of the reason that outsourcing to other countries has become so common. However, this isn’t always the case. Per unit labor costs are actually calculated by considering both the hourly rate of the labor and the amount of time required to make each unit. If you offer a fair wage to a laborer who works very quickly then you’ll have a better per unit labor cost than if you offer a low wage to someone who works slowly. Maverick Hammers believes that U.S. workers can be among the most productive workers in the world when motivated by a fair wage and positive working conditions. This keeps productivity high which allows for per unit labor costs that can compete with the global manufacturing marketplace even though the straightforward labor costs may appear high.

Development of strong partnerships with good suppliers. Per unit labor costs are only one factor involved in keeping manufacturing costs down. Another important thing that a U.S. company must do is to make sure that they are working with good product suppliers who can meet their needs at a competitive price. Maverick Hammers works with suppliers who can meet the diverse product needs that our customers have. We also regularly evalutate any supply chain link stresses and make sure to minimize problems there to keep our own costs down. We nurture the relationships with our suppliers in order to get the best deal possible.

A commitment to offering high-quality products at a competitive price. We aren’t competitive with global manufacturers just because we keep our own costs low. We make sure to pass those savings on to you. And yet, we do this without compromising the quality of the products that we sell. We know that a good piece of equipment that lasts a long time is a much better investment than a low-cost piece of machinery that breaks quickly. We offer quality at a fair price.

Continuous evaluation of manufacturing processes. Finally, we make sure that nothing we’re doing here at Maverick Hammers is set in stone. We continuously evaluate our manufacturing processes to identify areas that could be improved. We are flexible enough to keep improving our work so that we can continue to compete in the global manufacturing industry.

Okay, so these are the things that we believe are required for a U.S. manufacturer to effectively compete with global companies. But is it working? A look at our recent sales shows that is. For example, a company in Venezuela called Inversora Venezuela recently replaced their entire hydraulic hammer fleet with over three dozen Maverick Hammers. When asked what caused them to make the purchase from our U.S. company, their Equipment Director, Victor Beltran, responded:

“The rock here is very hard. Nothing we have run hits as hard or breaks as fast as the Maverick Hammers do. Plus the service that we have received is outstanding.”

In other words, we offer a product that can get the job done along with great customer service and we offer at a price that is affordable to companies both inside and outside of the United States.

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