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ITI Guarantees Timely Delivery and Exceptional Quality. ITI sources and delivers custom-manufactured components and finished goods of all sizes, shapes and materials. Delivered prices regularly save ITI customers 20-30%. Talk with ITI about “Making it in China” today. Find out if overseas manufacturing – complete with satisfaction guarantee – is the smart move for you. |
Making the Cases for Customized Chinese Manufacturing.
The Angeles Group®: Manufacturer of children’s play modules for preschools and classrooms. As European manufacturing prices increased because of a weakening American dollar, the Missouri-based Angeles Group had to find a way to lower its manufacturing costs or risk losing market share. Historically, in the US, small-business manufacturers rely heavily on the cost and service of suppliers. When supplies are tight, small customers usually are the first to go on allocation or be cut off completely. This was the case with Angeles, plus the company was having a difficult time finding a US manufacturer who could make its Angels Rest® cot (used by napping children in pre-schools and kindergartens) to Angeles specifications. That’s when Angeles contacted ITI. ITI found factories in China that could produce the company’s products, including thousands of cots each month, at a low cost and superb quality. Today, the company currently outsources over 50% of its manufacturing through ITI. Because of ITI’s expertise in Chinese business practices and culture, Angeles currently enjoys the same clout as a large company in negotiating prices, maintaining priority and correcting defective products.
Microlight Corporation: Manufacturer of medical laser devices to treat carpal tunnel syndrome. Houston-based Microlight Corporation realized early on that it would struggle to stay competitive if it produced its products domestically. Microlight manufactures a laser device to treat the swelling of soft tissue for sports injuries and maladies such as carpal tunnel syndrome. After considering its options, the company decided to explore the benefits of having its manufacturing done in foreign countries and in 2001 the company partnered with ITI to develop a strategy for the manufacture and importing of its product from China. What might have been a very expensive piece of medical equipment has become a “value-added” product that is available to medical distributors and affordable for practitioners. Mike Barbour, President of Microlight, is convinced that ITI’s knowledge and expertise in China manufacturing saved him significant time and costly mistakes that would surely have occurred if he tried to accomplish business is in China on his own. The Microlight-ITI team lets Barbour focus on marketing his product to the medical field while ITI concentrates on getting the highest-quality product at the best price.
Wood Ventures: Manufacturer of wooden vents for heating and air conditioning ducts. With orders backed up and irritated customers breathing down its neck, The Wood Ventures™ Company had its back against a wall. Located in Grass Valley, California, the company is surrounded by the technology industry. Workers in this region routinely expect wages on par with what the technology companies pay. Wood Ventures had a difficult time maintaining a work force because it couldn’t afford to pay comparable wages and stay competitive. At the same time, in order to meet the increasing demand for the company’s standard product line as well as its custom line for building contractors, Wood Ventures needed to expand its plant. The firm quickly realized that the considerable environmental and political challenges they faced would make the process of securing a permit very difficult. By exploring foreign manufacturing options with ITI, they found a way to have its standard line of products manufactured to its very demanding standards in China. This solved both its labor and plant expansion issues, allowing the company’s current employees to concentrate on the contractors’ custom product line utilizing their existing facility. Today, company President John Hendrickson reflects on the severity of the predicament his company was in and is grateful to ITI for helping Wood Ventures adapt. He believes foreign outsourcing saved his company; his employees are grateful that smart outsourcing saved their jobs.
Jensen Company: Manufacturer of fireplaces. Wisconsin-based Jensen operates a sheet metal stamping and fabricating business as well as a business that markets ready-to-assemble decorative fireplace systems. Jensen produced its metal fireboxes in its Wisconsin plant; wood mantel pieces were fabricated in Guatemala. On the one hand, it needed to reduce the production costs of the metal fireboxes. On the other, the Guatemala factory could not handle high-volume production. Jensen felt the costs could come down in China. After trying to source the wood mantels in China on their own and receiving a container of unacceptable mantels, Jensen turned to ITI. ITI was able to align Jensen with the right Chinese factories to produce not only the wood mantels at a significant savings, but also the metal fireboxes at a cost below that which could be matched by Jensen’s own metal-stamping factory. As a result, Jensen was able to expand their mantel business to the point that profits from this segment is able to carry its metal stamping business through industry downturns. Sourcing product in China through ITI allows it to hold their position in the metal stamping market while retaining its core employee force to perform high-margin custom work.
Dixie Poly Drum Corporation: Industrial platform manufacturer. Based in South Carolina, Dixie is a small American company that looks for every edge to stay in the game – and win. They identified one of their fork-liftable work platforms as the perfect opportunity to benefit from manufacturing in China. In this model, the handrails disassemble and fit into the platform’s base for compact shipping and storage; it sells into a market that Dixie knows very well – and Dixie knows how to sell it. ITI production/engineering representatives helped the company create a platform design purposely suited for offshore manufacturing and importing. ITI had the right people in the right places and served as Dixie’s agent, negotiating on the South Carolina company’s behalf, taking the mysteries – and the risks – out of importing. The new import fit exactly into Dixie’s established distribution network and started selling right away. On top of the Chinese manufactured platform’s direct and profitable contribution, Dixie has been able to increase the on-site manufacturing of its own custom-designed and specialty work platforms. In fact, the Dixie metal shop has expanded since the company began importing.
She-Edison LLC: Lawn tool inventor/marketer. The company’s patented SnapBagger® leaf collector helps lawn and garden workers accomplish two bagging steps in a single tool: holding the bag open, and filling the bag. It uses the new concept of taking the bag to the leaves in a unique shoveling motion.
SnapBagger eliminates touching wet and dirty leaves while minimizing bending, stooping and twisting. Its unique bungee-in-trash-bag design makes bag attachment quick and secure, and lets the tool be used in a dynamic fashion without the risk of the bag slipping off during work. The company sent prototypes to three US manufacturers (the largest American sheet-metal fabricators); the estimated costs were so high that competing in the intensive lawn-and-garden market would have been prohibitively expensive. Instead, the Denver-based company tapped ITI with its specialized Chinese manufacturing/delivery capabilities to help produce a competitive product that continued to meet She-Edison standards for ease-of-assembly and ruggedness. ITI’s Asian production and quality-assurance capabilities let She-Edison manufacture, import and distribute finished SnapBagger lawn tools for a cost-per-piece that consistently meets the company’s profit margin goals. She-Edison concentrates on extending its marketing and sales activities while ITI manages the factories.
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