The growing auto and aerospace industries in the southeastern USA have created a competitive market for local vendors. However, smaller manufacturers have to make smart decisions to take advantage of opportunities in the supply chain. To attract business in the manufacturing field, savvy suppliers have to evaluate ways to reduce costs and improve margins. Outsourcing 3D CAD modeling services is a good place to start.
Managing overhead costs makes sense in any size business. Selling, general and administrative (SG&A) costs are typically easy to identify and streamline. The same can be true for direct manufacturing and distribution costs. However, once these budget items are properly balanced, smaller companies may still be at a pricing disadvantage to larger suppliers with more resources. Therefore, careful attention should be given to indirect costs.
The engineering department is critical and running it in an efficient manner is key to a manufacturers’ success. Building an effective engineering department can be expensive and keeping the team together can be difficult. For smaller manufacturers, the investment of time and dollars into engineering can be prohibitive. However, smaller businesses can compete against larger suppliers by re-evaluating efficiencies in their engineering department. Outsourcing 3D CAD modeling services can help many companies provide a high end solution for demanding OEM clients.
Four Reasons Why to Outsource 3D CAD Modeling Services
Utilization: Many smaller companies make the mistake of hiring a full time staff member for 3D CAD modeling. They may believe there is an advantage to doing the work in-house only to find they are not using the employee to their fullest potential. To compensate, managers engage the team member in other activities of the business and soon find them absorbed in operations functions which detract from their main job. An under-optimized employee is a bad use of human resources.
Turnover: 3D CAD modelers and designers are in high demand and short supply. Many companies find themselves hiring recent graduates and training them only to lose them to better paying opportunities rather quickly. Smaller companies can easily find themselves understaffed, constantly training new employees. When an experienced 3D CAD modeler leaves for another opportunity, the knowledge drain can be very costly to a smaller company that must make another hire quickly.
Expertise: Working with a 3D CAD modeling services company can help a small business overcome the knowledge drain of inexperienced staffing. The right outsource vendor can be an essential part of your human resources mix because they alleviate the risks associated with constantly training, and losing, talented employees. An outsourcing company can provide the expertise and stability needed to compete with larger companies with deeper pockets.
Industry Standards: 3D CAD software and 3D design have been around for many years. However, new generations of engineers and designers have become more comfortable with 3D data than with old school drawings. In the digital age, where employees commonly telecommute or conference from diverse locations, it is common for customers to require 3D data as part of any request for proposal (RFP). They are simply easier to share than printed drawings, making collaboration much easier. Keeping software and equipment up to date is expensive but hiring the right outsourcing company shifts the burden of technology away from your operating costs.
Managers looking to compete against larger suppliers in the lucrative automotive and aerospace industries can realize substantial savings and provide a better service by using a 3D CAD modeling services company. Building a capable team can be costly and, ultimately, an inefficient use of time and resources. Outsourcing helps small and midsize companies compete by shifting the resources allocated to creating and maintaining a robust engineering department to other areas of operation.