Starting in June 2018, the United States enacted taxes on imported aluminum and steel. Aluminum is experiencing a 10% tariff while steel is experiencing a substantial 25% tariff. Originally, these tariffs included Canada and Mexico who happen to be two of the largest suppliers of Aluminum & Steel to the US. The initial reaction to this decision was less than favorable. Major role players in the sheet metal fabrication industry were the ones who were particularly concerned. These players include suppliers, manufacturers, and OEM’s.
After negotiations, the United States decided to exclude Canada and Mexico from the tariffs. This information was relieving but still required executives to adapt to the climate of the current supply chain. A few problems include price increases, higher demand, and suppliers seeking alternative solutions. The pressure was on for the sheet metal fabrication industry.
QTI Design & Prototype has been taking a proactive approach to counteract the inevitable price increases. We have been working with Quality Tool to find intricately designed parts that we believe have opportunities for cost reductions. Our expertise has provided enormous cost savings for our customers. In fact, a major medical device customer followed our suggestion and reduced the cost to manufacture by 20%. The same customer realized a return on investment within one year.
Our mechanical engineers have an extensive knowledge of sheet metal and specialize in production ready designs. We also guarantee that all DFM redesigned products are fast-tracked for prototype and production in our facilities. By working with the QTI Design team, we will evaluate your costly parts and deliver a cost reduction summary.
Contact Us and we will get started on your evaluation.