Manufacturers Reconsidering Domestic Production

	NEMB miniature balls comply with DFARS point-of-origin requirements

Over the past 15 years, many U.S. manufacturers have chosen offshore suppliers and manufacturing plants in an effort to remain competitive in the global marketplace. Unlike a number of other U.S. suppliers, NEMB has survived this mass exodus. We have strengthened our market niche by specializing in the manufacture of precision miniature balls across a broad spectrum of materials. Because we focus on producing one type of product, precision balls, we do it extremely well. In fact, we are unsurpassed in our field, in terms of quality, choice of materials and sizes, and customer service.

Another area in which NEMB has excelled is supplying miniature balls that comply with the Defense Federal Acquisition Regulations Supplement (DFARS). A clause in DFARS concerning specialty metals states that such metals incorporated in articles purchased by the U.S. Department of Defense must be melted or produced in the U.S. or its outlying areas or in "qualifying countries," which include most allies of our nation. We are able to obtain these types of materials and use them to produce our products whenever required by a customer. NEMB is one of the few companies in the industry that produces DFARS-compliant miniature balls in all of the sizes and of the quality that we do.

Recently, it has appeared that the trend towards offshore production and sourcing may be reversing. Quite a number of manufacturers have realized that off-shoring may not be as advantageous as previously thought. This is probably because they did not consider factors other than monetary costs. Among these factors are product quality, safety, and regulatory compliance. Then, there are the costs of resolving product quality issues. These may include loss of the fabrication materials that were used and the cost to ship products back offshore to be remanufactured. With the resulting delivery delays, customer goodwill may be put in jeopardy. Furthermore, it has often been difficult to maintain clear and effective communication with overseas manufacturing sources. This has led to misunderstandings that have caused problems for U.S. companies that needed to provide customized products to their customers.

In contrast, NEMB has been able to provide its customers with extremely fast response times, a quality system built in the U.S.A. and real-time communications to respond to increasingly pressing demands being experienced by our customers. In addition, our track record on safety, regulatory compliance and confidentiality is something which customers value. NEMB does have a facility located in Shanghai, China (featured in our Fall 2008 issue) that is positioned to meet the increasing demand from global customers. SNEMB, the Shanghai facility, operates 24/7/365 and all manufacturing at this plant meets U.S. standards.

The current world economy is also having a dramatic effect on the profitability of offshore sourcing and production. The dollar’s value against other major currencies has fallen 30% since 2002. Also, labor isn’t as cheap as it used to be overseas. For example, wages in China are rising 10% to 15% annually. And finally, volatile oil prices have been driving up shipping costs.

According to the article ‘Made in the U.S.A.’: Returning Home by James Benes, many economists expect the long-term trends to include:

1. The re-emergence of the U.S. and some near-shore manufacturing sources as attractive supply markets.

2. The potential for the local U.S. supply base to regain some of the business lost to off-shoring in recent years.

NEMB has weathered the trials of true offshore sourcing by remaining focused on producing the highest quality miniature balls and providing customers with prompt and personalized service. We are well-positioned to welcome new customers who require miniature balls as they return to American shores.