Clawing Back Offshore Work
Australian industry has discovered how this one-stop-shop facility has become a strategic reason not to automatically default to metal fabrication in low cost labor countries.
Posted: September 7, 2016
While other fabricators folded or were forced into major downsizing in recent years, the Sevaan Group PTY LTD (Minto, NSW, Australia) instead adopted an acquisition policy and their competitive edge has become even clearer. Furthermore, each time the Australian dollar drops, they not only win clients that had been sourcing overseas back to the nation, the currency fluctuation also gives them positive economics to never outsource abroad again. They are an Australian company that produces metal components for a wide range of industries both domestically and overseas, including rail, food processing, power generation, mining, defense and aerospace, and the general engineering sector.
“This one-stop-shop platform is now the ultimate alternative to offshore outsourcing,” explained chief financial officer Artemis Tzakos. “By consolidating all manufacturing disciplines into one entity, potential clients now clearly understand how speed, accuracy and reliability actually equate to economic gains. It’s all about growing our business on high standards and partnerships. We have changed our business practices so that it is straightforward and simple to supply all services, from the interpretation of an initial design, to all mechanical processes, and machining that result into the finished product.”
Tzakos continued, “These disciplines include bending, cutting, welding, machining, die tapping, punching, etc. and they are all done in-house. Just as importantly, another major reason why we are winning contracts back from overseas is our dedication in recent years to look as professional as we think. The industry has a grimy, greasy image, but we are completely opposite, with a clean, organized, software driven production floor. Winning work back to Australia takes leadership, training, and what we call the three Ps: positivity, progress and pride.”
He goes on, “Our one-stop-shop platform has been instrumental in maintaining and growing business in challenging sectors such as mining, the defense industry and the aerospace sector, along with traditional engineering areas. Furthermore, being positioned and equipped to handle any volume of work — whether a one-off or a large production run of thousands of components — also makes a telling difference in a market where speed of delivery is all but everything now. The ‘Just In Time’ manufacturing concept has been bandied around for so long, but when projects are complex and require many different processes it is often highly difficult to source items from more than one supplier. Rather than introduce timing and delivery risks, we have been stepping in fully armed, with technically qualified personnel and world class machines that deliver from one site. Not only are lead times heavily reduced as a result, the higher control and ownership our clients feel over each order is keeping things smooth and predictable for them, thus increasing their profits.”