November 2024 Volume 6

OPERATIONS & MANAGEMENT

Call to Action FIA members are routinely competing with imports and often winning. I recommend: Further strengthening your offerings on delivery, quality, customer support and relationships. Use the TCO Estimator to fight vs. price. When competing with China check whether the Section 301 tariffs apply. Focus on products where the tariffs do apply. When you have an opportunity and need help, email me at harry.moser@reshorenow.org. When you have some reshoring successes, email me and FIA. Also apply for the National Metal working Reshoring Award that Trenton Forging won in 2020. Harry Moser

• Customer Support (23%). Customer support ranges from proactively preventing problems to responding rapidly to issues. As with delivery, you have an intrinsic advantage. You are in the same time zone and speak the same language as your customer. You can communicate in minutes vs. perhaps 8 hours from Asia. If you do not respond and resolve quickly, you give up that advantage. • Relationship (15%). In an age of AI, social media and big data, some people downplay relationships. I think they are wrong. I was president of $100M+/year Charmilles Technolo gies (EDMs) and was very active in NTMA, the machining job shops association. At one conference, I was talking to Bill at a reception. John came over and warned Bill not to have dinner with me and my wife, Jo. Bill asked why not? John explained that he and Jill had done so a few years ago and had bought millions of Charmilles machines since. If customers know you and know you will come thru for them, your odds of getting the order goes up. I spent about 30% of my time with customers in the field, and at conferences and trade shows. I learned about our shortcomings, fixed them and earned the customers’ trust and orders. • Buy America (3%). The Build America, Buy America Act tight ened the requirements for domestic content. Billions are being spent on projects. How Does the Buyer Compare Bids? • Landed Cost (80%). Landed cost is typically FOB price plus duty and freight. Other surveys say that the % is lower, with buyers still being rewarded based on price even if they profess to use landed cost. Landed cost typically misses about 70% of the costs and risks added to price to get TCO. So, check to be sure whether landed cost was calculated and then carry on pushing for TCO. • FOB Price (10%). • TCO (10%). Check on what factors are included. Compare to the 29 factors in the TCO Estimator. • Only about 1/3 of the respondents knew what method buyers are using to compare bids. Given the advantage of TCO vs. Landed Cost or FOB Price, this suggests that members should focus more on this aspect of the selling process.

Founder & President Reshoring Initiative® Email: harry.moser@reshorenow.org

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FIA MAGAZINE | NOVEMBER 2024 39