Many construction equipment manufacturers outsource production of their heavy plate component parts and assemblies to subcontractors such as custom fabricators. While some parts are managed in-house, outsourcing heavy component projects offers many benefits to these large OEMs, including savings on capital equipment expenses, adherence to project timelines, and reduced labor costs. Partnering with a fabricator to manufacture large parts also allows the construction equipment company to allocate its resources toward primary operations central to its business while focusing on market share and executing sales.
Why Outsource Production?
Custom fabricators specialize in heavy part manufacturing and have the equipment needed to provide multistage processing and repetitive parts production to assist large OEMs. With in-house materials managers and seasoned production teams, these fabricators are considered expert resources in the industry. Contract manufacturers have the capability to produce burn-to-shape parts, subassemblies, and large components for a variety of construction equipment projects. Many fabricators specialize in high-volume production and offer an extensive lineup of cutting, forming, and bending capabilities, along with welding, powder coating, kitting, and assembly.
Construction equipment manufacturers often rely on outside fabrication shops to produce high-quality parts that fall under multiple supplier codes. They provide important information to the fabrication teams including verified component measurements, part specifications, and fabrication instructions. Examples of large components produced for the construction equipment industry include:
- Skid Steers
- Compacting Equipment
- Engine Mounts
- Off-Highway Trucks
Construction equipment OEMs provide important information to their fabrication counterparts including verified component measurements, part specifications, and fabrication instructions. By outsourcing large parts, these OEMs realize numerous advantages to help reduce their supply base and increase the efficiency of their production team. In turn, the fabricator produces a high-quality product while taking on the burden of equipment and labor expenses and ensuring the OEMs supply chain runs smoothly.