The introduction of tariffs on imported foreign steel poses significant cost implications for Original Equipment Manufacturers (OEMs) within the United States. These tariffs were enacted in response to the increasing volume of steel imports, which account for approximately 30% of the country’s steel consumption. As a result, OEMs that depend on imported steel are facing higher costs. This not only affects their bottom line but also introduces potential supply chain disruptions, making it a challenging time for businesses striving to maintain profitability.
With the current tariffs in place, partnering with a U.S.-based metal fabricator can lead to considerable cost savings for original equipment manufacturers (OEMs) by producing parts here at home. Domestic producers can bypass the tariffs and import duties that apply to foreign steel, leading to lower raw material costs. Additionally, these fabricators offer competitive pricing due to reduced shipping expenses, faster turnaround times, and the ability to utilize local resources and expertise.
Domestic Supply Chain Benefits
Partnering with a local fabricator can enhance supply chain management and inventory efficiency. O’Neal Manufacturing Services operates a network of highly integrated manufacturing facilities across the U.S. and uses strategies to control material costs and optimize purchases from domestic steel mills. Supporting large original equipment manufacturers across the country, this collaboration allows OEMs to maintain reliable inventory, ensure that production remains uninterrupted, and reduce manufacturing costs throughout the product lifecycle.
Trusted Industry Reputation
Established in 1921, O’Neal Manufacturing Services (OMS) is one of the country’s leading metal fabrication firms, supporting industries such as Agricultural Equipment, Material Handling, Construction Equipment, and Renewable Energy. With 9 facilities across the U.S., OMS has extensive capabilities and helps major manufacturers boost production capacity and expedite launch-to-market schedules. Its customers represent some of the largest equipment manufacturers in the world, who trust them to maintain the most effective solutions for their long-term projects.
Industrial Equipment Manufacturing Expertise
O’Neal Manufacturing Services’ ISO 9001:2015-certified facilities provide multistage processing and repetitive parts production. Each facility offers a wide range of capabilities, including cutting/burning, welding, machining, forming, and finishing, and offers significant capacity and manufacturing redundancy. With over 100 years in business and locations throughout North America, OMS has the skill, expertise, and state-of-the-art equipment to produce quality steel and metal parts for our nation’s largest equipment suppliers.
Partnership Opportunities with OMS
The current tariffs on foreign steel imports present an opportunity for OEMs to consider the benefits of partnering with a U.S.-based metal fabricator. From cost efficiency to improved supply chain management, and the ability to produce multi-step metal fabrications and welded assemblies, O’Neal Manufacturing Services can help industrial equipment manufacturers navigate these challenges and emerge stronger and more competitive.