The manufacturing industry has seen frequent disruption and uncertainty over the past decade, from COVID-era volatility to the “Silver Tsunami” of retirements among experienced team members and shop owners. For OEMs and production teams, this has led to supply chain risk that can have real consequences in higher costs or production delays.
As a result, many companies are spending more time trying to minimize supply chain risk before the next disruption occurs. With multiple U.S. manufacturing locations and experience supporting dual sourcing and reshoring strategies, ReNEW Manufacturing Solutions can help customers build a more resilient supply chain.
Supply chain disruptions can come in a variety of forms. Major political events like tariff changes are an obvious one, and they can quickly create cost pressures and timing issues. But some disruptions come from events on a smaller scale, too.
For instance, customers often approach us with RFQs for legacy precision parts, telling us their previous long-term suppliers closed unexpectedly. Sometimes the owner retired and there was no family member ready to take over; other times, suppliers struggled when a single team member retired and took knowledge of how to properly manufacture the part with them.
In each situation, buyers are forced to respond to a disruption that will almost certainly affect production. At ReNEW Manufacturing Solutions, we encourage customers to build resilience ahead of time by planning for backup capacity and supplier changes before the need becomes urgent.
Reducing your risk starts with evaluating where your parts are made. From there, you need to understand whether your current supplier base is structured to remain stable in the face of unexpected challenges.
ReNEW Manufacturing Solutions has been built for stability. With multiple U.S. manufacturing locations, ReNEW gives customers access to domestic production capacity in the form of a broad network, rather than a single site. That prevents issues from any single point of failure.
Depending on your supplier base, there are different tactics available to reduce your supply chain risk.
Many large OEMs, for instance, use some form of dual sourcing strategy. In a common model, one supplier may handle the majority of production while a second supplier supports a smaller percentage. An 80/20 split is one possible approach.
Dual sourcing can solve capacity challenges when one supplier cannot support your growing demand on its own. A second partner will already be familiar with your requirements and have an efficient manufacturing strategy in place.
While we are typically the primary or majority supplier for our customers, we’re also open to acting as a second supplier when the project is a good fit for repeat production. We’ve found the best dual sourcing partnerships start with clear, accurate information. Updated drawings are especially important. If a legacy part has changed over time, the print should reflect what is actually being manufactured today, not just the original design intent.
It is also helpful to share any manufacturing knowledge that has already been developed around the part. For instance, that may include machining parameters or tooling details that have allowed previous suppliers to make the part more efficiently. Sharing this information upfront can reduce a learning curve and allow us to quote the part more accurately.
Forecasting is another important part of the conversation. Estimated annual usage (EAU) gives us a clearer basis for quoting. We can help you secure the best possible pricing when we know you expect to buy the part again in the future.
Reshoring continues to come up in customer conversations as evolving tariffs and overseas supply chain costs create new pressure. Customers we speak to need to know that we have not only the capabilities to make the parts, but also the experience to help reshore and the capacity to support them for the long term.
ReNEW can help customers work through the practical details of reshoring, including reviewing part requirements to identify what needs to be clarified or adapted before production begins. The goal is to make the transition as smooth as possible, so that our American manufacturing solutions are helping customers build a strong, long-term sourcing strategy.
Whether your goal is to reduce tariff exposure, add capacity, reshore production, or qualify a second source of supply, ReNEW can help you evaluate the right path forward. Planning ahead for the next disruption will leave you with a stronger supply chain and more resilient production.
Request a quote today to discuss your options!