Reshoring: A CNC Contract Manufacturing Opportunity

Recently much of the conversation regarding aerospace manufacturing has been focused on tariffs. It is an important and complex subject that is currently being worked through and depending on the amount of USA content has varying degrees of impact on aerospace manufacturing companies. Without dismissing the tariff subject, we would like to bring up a related topic that has a lower profile but is equally important. It presents new prospects for US manufacturers to grow their business and is taking place right now. Our topic is Reshoring a CNC contract manufacturing opportunity.

The Reshoring movement has been gaining momentum over the last several years (prior to the current tariff conversations). For clarification, the definition of reshoring is simple: it is bringing back manufacturing to the USA from overseas. Being a contract aerospace manufacturer, Intrex sees reshoring as a welcome opportunity. With our ongoing investments in machine tools, system software, and employee training, we believe, we are in a good position to respond to the challenges and opportunities of reshoring.

Several elements that are driving the reshoring initiative.

Supply Chain Security

There are a host of factors that impact a supply chain and disruption to any or all can have significant impact on products, prices and deliveries.

• Geopolitical tensions, expose vulnerabilities in global supply chains. Having reliable onshore sources minimizes or eliminates chances for supply chain disruption.
• Large OEMs and Tier 1 suppliers are seeking competitive domestic sources for critical components.

Compliance & Defense Regulations

• For defense contractors, ITAR ( International Traffic in Arms Regulations), and DFARS (Defense Federal Acquisition Regulation Supplement) encourage or mandate U.S.-based manufacturing.
• Reshoring supports these compliance needs.
• AS 9100 certification provides an audited process for quality measuring, monitoring, and documentation that is required for producing aerospace, space, and defense machined components.

Quality Control & Lead Time

• Aerospace parts require high precision, quality measurement equipment and supporting documentation. There are multiple qualified US contract manufacturers that can provide precision machined components and assemblies.
• Domestic sources with proximity to their customer base can offer better communications, no language issues, quicker response to changes and updates, and are better equipped to respond to requests and address problems.
• US sourced goods usually require shorter travel distances and eliminate the efforts required to monitor and document border/ocean crossings. All this shortens lead times and simplifies supply logistics.

Government Incentives

• Onshore manufacturing eliminates the need and the negative consequences of tariffs.
• In some instances, the U.S. government is offering tax incentives, grants, and Buy American provisions, to encourage companies to source parts domestically.

Opportunities for CNC Contract Aerospace Manufacturers

At Intrex Aerospace we embrace reshoring initiatives. Due to our substantial investments in CNC machine tools, measuring and support equipment, and system software we are well positioned to address the challenges and opportunities reshoring presents.

In addition to our most recent additions of 5-axis machine tools and supporting CMM’s (Coordinate Measuring Machine), we continue to invest in higher levels of automation. Our recent automation serves several purposes.  It reduces our labor cost, helps offset advantages of lower offshore labor cost.  It also adds consistency to our production, increases throughput, maximizes spindle utilization and improves our overall manufacturing efficiencies.

We Would Like to Hear From You

We at Intrex believe we have put together a complete package that not only serves our established customer needs but addresses future aerospace business whether they be traditional or reshoring opportunities. We also have available square footage available for future growth. If you would like to have a conversation with us about your outsourcing manufacturing needs, please click here.