5 MIN. READ
Machine tools are vital components of any industrial manufacturing operation. Procurement of machine tools has been complicated for nearly two years due to the trade war with China.
As a result, many industrial buyers have opted to source domestically to avoid delays and cost uncertainties.
A Long Time Brewing
The origins of the trade war trace back to 2017 when the USTR began an investigation into unfair trade practices being used by China.
Forced technology transfers, undervalued licensing agreements, intellectual property violations and outright cyber theft are some of the main economic policies that China utilized in order to establish an advantage.
These policies put over 44 million American jobs at risk, as well as putting the nation into an estimated $375 billion annual deficit with China.
First Actions
In January 2018, the United States enacted tariffs on washing machines and solar energy products as a first step to reducing the trade imbalances.
This action was soon followed by steel and aluminum tariffs that also included many other products such as motor vehicles, machine tools, construction accessories and industrial manufacturing equipment.
By July of that same year, even more tariffs had been levied on agricultural products, rare earth metals and certain industrial chemicals.
Industry Response
These tariffs had a mixed response within the industry. Some manufacturers and industry groups were pleased that action had been taken against a trade partner that had been using unfair practices to undermine American business for decades.
Others were concerned that higher prices for raw materials and finished products would lead to a loss in sales as buyers recoiled from the passing of that increase to the purchase cost.
Many industrial buyers used this situation as an opportunity to change their supply chain and source their products domestically.
While the upfront cost is often higher than what buyers would pay overseas, there are many distinct advantages to domestic sourcing.
Shipping Simplified
Transportation costs and uncertainties are drastically reduced when a trans-oceanic crossing is taken out of the equation. Shorter distances expose shipments to a lower risk of disruption or loss due to natural disasters, labor disputes such as port strikes and of course international economics.
Three-day and even next-day shipping for domestic shipments is relatively inexpensive and commonplace. The same intervals for international shipments can be astronomically expensive and still subject to delays.
Paperwork and compliance are simplified when shipping domestically. All international shipments must travel through customs for both the importing country and the exporting country. Documents must be filled out correctly and the proper duties accounted for or a shipment may be held up in a bureaucratic holding pattern for days or weeks while everything is sorted out.
Conversely, domestic shipments only need a shipping label.
Made in the USA
Products made in the United States have a positive economic and psychological effect on customers. Almost 75% of customers prefer products that were sourced locally over those produced overseas.
Apart from making customers feel better about their purchases, domestic sourcing minimizes the effects of offshoring in the form of more jobs retained. The boost to the economy results in American citizens having more income, which leads to more spending, thus allowing even more companies to grow.
What To Be Aware Of
As mentioned previously, the upfront cost when sourcing machine tools domestically may be higher. The balance is that the higher cost includes direct access to the manufacturer of the product. It also includes extensive post-purchase consultation and support, many times provided by the same people who helped build your machines.
Regardless of who you buy your machine tools from, it is important to consider the use cases ahead of time, space available in your facility, production volume and operator experience levels. All of these factors will help fine tune the right machine for your operation.
Examples of Domestic Suppliers
Below are some of the companies you may want to know about when it comes to domestic suppliers in the machine tool sector.
Located in Waukesha, Wisconsin, Morris Midwest provides CNC machine tools and engineering support to precision part manufacturers. A family-owned company, they are a part of the largest machine tool distribution network in the United States.
They take pride in working directly with their customers and providing large company resources with the personal service of a local supplier. Some of the brands they support include Bridgeport, Okuma and Hauser.
Since 1968, Productivity has led the way in innovative metalworking products and services. With strong ties to their community, local technical colleges and schools, they take an active interest in helping the current and next generation of manufacturers overcome challenges.
Their annual Oktoberfest Tool Show set a company record a few years back with over 3,200 customer attendees and 1,100 students in attendance. The show is a fun, family friendly way to see the latest developments in machine tool technology and products.
Specializing in CNC vertical turning machines, EMAG is able to respond quickly to customer requirements. They are heavily involved in Industry 4.0 for machine monitoring, evaluation, control maintenance and operations planning.
Concept Machine Tool Wisconsin
Founded in 1974, Concept Machine Tool is a full service machine tool dealer representing the world's most trusted brands. They oversee the entire process from selection and ordering to delivery and installation.
Follow up service and support are also part of their turnkey process that helps manufacturers upgrade machine tools without the headaches associated of doing it alone.
Finding Machine Tools Suppliers
IndustryNet can help you find the right domestic source for machine tools. We feature over 400,000 manufacturers in our free database. We also offer expert research on industry trends, equipment and key personnel. You can use our streamlined features to request quotes, see where providers are located and even contact the exact people that you need to get in touch with to get the ball rolling on your machine tool purchase.
