Video: Unique Solutions to Offset Growing Costs
Material shortages and insufficient workforce availability result in, increased costs, slashed profits, missed revenue and dissatisfied customers. Federal Electronics offsets these costs through vertical integration and a Low-Cost Region option in Mexico.
The hybrid solution allows for higher labor content sub-assemblies, such as harnesses, to be built in Mexico then integrated into system assemblies in the US prior to final shipment. Alternatively, the entire assembly can be completed in Mexico, the US, or both, with two regionalized supply chains.
By manufacturing circuit boards and cable assemblies within one company, Federal Electronics eliminates the compounding cost associated with margin stacking. The vertical integration model simultaneously saves money while simplifying the supply chain.
For more than 70 years, Federal Electronics has successfully transitioned products from OEM’s internal manufacturing and their contract manufacturers.