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Situation
1: Lowering Overall Costs by Outsourcing Parts and Components
to BMF
The majority of our customers come to us for this reason: They
sell complex industrial machines or systems in their home markets
and have final assembly facilities in their home country. In
order to increase competitiveness, they outsource specific parts
and components to BMF. Since China-made castings are so competitively
priced, and since BMF can supply to the quality level clients
need and expect, the net effect is significant cost reductions
for the home office. Rather the supplanting the home country
operation, BMF supports it by lowering costs where appropriate. |
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Situation 2: Industrial Marketing Companies Contracting
All Manufacturing to BMF
This is the second most common situation: A customer who is
engaged entirely in marketing some kind of industrial brand
(usually a range of parts where the casting comprises the bulk
of the product’s value) that BMF is contracted to manufacture
in its entirety. The client typically has limited facilities
in the home market, and relies on BMF to not only manufacture
the part, but to undertake all product packaging, warehousing
and logistics—often shipping directly to our client’s
client. |
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Situation 3: Localizing Industrial Products for the
China Market
In recent years, this has been a growing part of our business: An industrial brand wants to introduce a product (or range of products) to the China market. They contract BMF to manufacture their parts in China. They gain a) logistical convenience; b) confidence that manufacturing costs are appropriate to the China market, and C) assurance that quality levels remain high. |
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