We started our very first blog with a discussion of the benefits of outsourcing sheet metal component manufacture, posing the radical question of whether it was, ‘Time to rethink the in-house sheet metal shop’?

Not such a radical concept for Melbourne-based Ratek Instruments, a leading Australian manufacturer of laboratory mixers, shakers and benchtop heating equipment. Ratek decided to outsource manufacture of selected sheet metal components to Form2000 to achieve cost and productivity improvements.

Ratek is a smart Australian manufacturer exploiting a competitive advantage in a high-tech, high-value niche market for supply of laboratory and medical equipment.

The company produces a wide array of high quality, precision laboratory instruments and equipment utilised by the scientific community - Universities, research laboratories and product development companies, including shakers and mixers, temperature controllers, chillers, water baths and tanks, incubators and accessories.

Ratek has managed a largely self-contained factory operation since 1979, which has included its own in-house sheet metal component manufacturing and powder coating facility.

Faced with an identified need to invest further capital to upgrade and maintain its current sheet metal fabrication equipment, and to further consolidate its sheet metal manufacture processes, RATEK started a conversation with Form2000 about alternate sheet metal product sourcing options.

“Sheet metal components are a key part of nearly every product we make, so it’s important that we maintain timely stocks of a wide range of parts. By out-sourcing selected items to Form2000, we have been able to respond very quickly to increases in sales demand and match production without the need for taking on more full time fabrication staff,” says RATEK Director, Andrew Cutting.

“As with all businesses, controlling overheads is just as important as generating sales, so our relationship with Form2000 provides great flexibility in this area. As a proud family owned and run Australian business, it’s also important to us to use Australian labour where we can, so it’s great to be able to work with another quality Australian firm like Form2000,” he says.

Outsourcing sheet metal manufacturing to Form2000 has enabled RATEK to obtain superior quality sheet metal components, at a reduced cost and with fast turnaround to meet production scheduling requirements; at the same time, enabling the company to focus on its unique competitive advantage - core manufacturing IP, R&D, marketing and distribution.

Countering Outsourcing Myths: A Scientific Approach

The main reason for manufacturers wanting to fabricate sheet metal components in-house (apart from ‘we’ve always done it that way’) is for control, reliability of supply and flexibility. But, in reality, and as Ratek have discovered, FORM2000 can actually improve on all of these assumed benefits and for reduced cost.

As FORM2000’s Simon Mollison explains, “If a manufacturer takes into account all of the costs, factory overheads, maintenance, management time, training, safety compliance as well as direct labour and raw material – in fact, they actually can’t produce the same item as cheaply as we can.”

In addition, FORM2000 has invested in the latest sheet metal fabricating equipment, enabling greater design scope and flexibility not always found in in-house sheet metal shops.

“In-house sheet metal shops usually can’t justify the capital equipment budget to provide the latest sheet metal fabrication processes and machinery. Consequently, they put-up with manual processes and old equipment; kidding themselves that it is more cost effective to fabricate in-house,” he explains.

“Since first engaging with Form2000, we have really seen the potential to reduce costs and more efficiently manage our sheet metal component stocks,” says Andrew.

"Their cutting edge equipment also allows us to design for the future without limiting ourselves to our in-house capabilities, which is vital to ensure we stay ahead of the pack as a manufacturer of quality Australian made laboratory equipment.”

FORM2000 is a critical sheet metal supply chain partner to a wide range of OEM manufacturers. Find out more about our outsourced sheet metal solutions, or contact us to discuss whether outsourcing would benefit your business.

Further Information

Visit Ratek Instruments at http://www.ratekonline.com.au/