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High Volume Program Acquisition

Any manufacturer that relies on multiple suppliers for components and services that cannot be produced in-house understands that, sooner or later, one of these resources could fail. It's a fact of life; companies are acquired or go out of business, leaving their customers scrambling to find replacements. This was the scenario when we were contacted by a leading manufacturer for the outdoor power equipment market. Their supply chain was compromised when a provider of high precision, high volume shafts announced that they would be going out of business. Even worse; the supplier gave very little notice of the closure. This initiated an abrupt and vigorous search for a replacement.

They contacted a large number of potential suppliers. Due to the scale of the project, and to eliminate the possibility of a repeat scenario, the search included a comprehensive financial analysis to ensure that the new supplier’s business was healthy and fiscally responsible. Their staff analyzed quotations, conducted plant tours, scrutinized management, engineering, production, and quality capabilities. In addition, references were contacted and interviewed.

On the fiscal side, their staff performed a financial analysis; they examined each supplier's cash flow, credit and borrowing ability. A healthy report card in this area would mean that if new equipment was needed to accommodate expansion, the acquisition would not be a problem. After careful consideration, they chose H & R Screw Machine Products for the contract.

We were able to design and launch the full production process at H & R, with zero downtime for our customer.

That was many years ago, and we continue to supply the products today. As a result of our excellent quality and service, this original contract has grown into multiple new program engagements with various associated companies and divisions. For more information, or to learn how our stability and dedication to quality and service won us this long term contract, contact us directly.

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High Volume Program Acquisition Highlights

Project Name
High Volume Program Acquisition
Outdoor Power Equipment
Major Supplier lost qualified supplier.
Needed large volume of precision products quickly.
Company Review
Process Analysis
Facility and Department Inspection
Financial and Cash Flow Analysis
  • Contracted with H & R Screw Machine Products
  • Customer line-down conditions have been eliminated.
  • Quality has been excellent
  • This line of components has now been in production at H & R for many years.
  • Additional programs awarded to H & R
  • Ongoing