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Feb. 6th ’23 – Manufacturers start to eliminate the middle-man, by insourcing

Companies develop in-house operations Supply chain issues, encourage businesses to manufacture internally

One trend in 2022 that we’d all like we’d all like to forget about, is supply chain disruption – But, alas folks, it appears supply chain disruption is likely to be here for some time. Inflation is rising and with it, inflated raw material costs, not to mention labour shortages across the logistics landscape making sourcing materials almost unattainable for some businesses. The solution seems to be insourcing.

  1. In-house production eliminates the need to rely upon external supply chains, and may in fact be more cost-efficient than outsourcing. By insourcing, the manufacturer has control over where they may purchase raw materials and is able to react to demand more effectively than if there were reliant upon buying products in.

Insourcing also provides the perfect opportunity to expand upon manufacturing capabilities, extend product ranges and break into new markets.

Our customers purchase Thompson Friction Welding machines, not only based upon their accuracy, their speed or robustness, but as a means to develop a self-sufficient ecosystem, through which they are able to manufacture parts efficiently and cost effectively.

Here we have highlighted four of the reasons, customers purchase Thompson friction welding machines

  1. Flexible manufacturing
    Manufacturing in-house provides a greater level of flexibility –if a product needs to be changed for example. An outsourced product would need time, and costs, for changes to be made. The level of flexibility afforded by manufacturing inhouse, can ensure that changes to products don’t have an impact upon time, cost or manpower.
  2. Improved quality and traceability
    You have complete control over the quality products when manufactured in-house. It is is vital for businesses to practice quality control, especially in critical application components. Quality can be a problem when outsourcing – consider multiple products across an long chain of supply. By manufacturing in-house, you have complete control.
  3. Lower cost to manufacture
    Producing products in-house avoids many of the costs associated with outsourcing. Your business will need to manage your outsourced producers and supply chains, which involves manpower. By manufacturing products in-house, this element of management mis not required – less overheads to make your product.
  4. Complete control over your production!
    When manufacturing in-house, you retain control over product output. You are able to identify market behaviours, peaks and troughs and plan resources to meet demand.

At TFW we are seeing more activity from businesses who wish to bring manufacturing inhouse, both SMEs and larger enterprises, and we expect to see many manufacturers follow into 2023 as they explore innovative and exciting ways to turn current supply chain challenges into opportunities!

Investing in rotary friction welding technology can be a big task, but here at Thompson Friction Welding, we have an expert team on hand to advise and guide you through the process.

Why not come to our Halesowen facility and see the machines in action?