Contract manufacturing arrangement prevents loss of US jobs and saves Siemens an additional $200,000 a year
Contact: Dean Marsman
ASHEVILLE, NC (November 1, 2011) Sometimes, it takes longer than a month or two to truly measure success. Sometimes, even a full year doesn’t tell the whole story. But after ten years of consistent hard-dollar savings, it’s safe to call the long-term contract manufacturing relationship between Siemens and Prince Manufacturing an unqualified win.
“Siemens operated a circuit breaker assembly plant in Bellefontaine, Ohio that they were planning to vacate,” according to Stephen Floyd, Prince Manufacturing Regional General Manager, Southeast. “Basically, Siemens would have been able to save a great deal of money by moving the entire assembly operation to Mexico.
Prince Manufacturing sent Siemens a proposal that not only matched the savings they could have realized but actually helped them realize significant additional cost savings. Siemens accepted the proposal, and Prince Manufacturing took over the Ohio plant functions as a strategically outsourced contract manufacturer.
“For all intents and purposes, we look like a Siemens operation,” Floyd explained. Siemens ships industrial circuit breakers to the Prince Manufacturing facility near Asheville, North Carolina. There, Prince adds circuit protection and safety switch enclosures to convert the materials into fully finished products and ships them directly and seamlessly to the Siemens distribution center. The Products are then ready for installation by electrical contractors at job sites.
“The arrangement looked like a win/win situation from day one,” according to Dean Marsman, Prince Manufacturing Vice President of Sales and Marketing. “We knew we’d be able to turn around a quality product that meets or exceeds the very high standards of the Siemens organization. And we knew we’d be able to offer them savings.”
But to be called a true success, the arrangement would have to prove beneficial over time. To date, the contract manufacturing arrangement with Prince has saved Siemens more than $200,000 a year, over and above the savings, they would have saved by vacating the Ohio plant and moving the operation to Mexico.
The contract was recently renewed for an additional two years. “In this economy especially, every dollar is important,” Marsman said. “We’re very proud to be able to point to the bottom line year after year and show hard cost savings. Especially since those savings continue to be realized over a significant period of time.
“But to be honest, we’re even more proud of the fact that we were able to help our client preserve a significant number of jobs right here in the United States,” Marsman added. “This is a situation where we were able to be a good partner and a good corporate citizen. We feel like we were able to serve our client, help improve the lives of families that depend on manufacturing jobs and strengthen the local communities. That’s the kind of company we strive to be. That’s the reason we’re in business.”
About Prince Manufacturing:
Prince Manufacturing is a contract manufacturing solution provider focused on eliminating waste in its customers’ value streams by providing fabrication, forming, finishing, and assembly of metal and composite products.
Whether clients are looking for a source for a single step in the production process, such as E-Coating or Metal Stamping, or a seamless complete process strategic outsource for a product or component, Prince Manufacturing is a “one stop shop” that helps reduce costs and eliminate risks in an entire supply chain.
With locations throughout the United States and in Mexico, Prince Manufacturing is committed to being the metal and composite materials industry’s most trusted strategic outsource partner.