1. U.S. Economy Trends – A Quick History Lesson

Since the 1960s foreign suppliers have continued to capitalize on their growing ability of low cost production. Cheap labor and lenient standards, among other things, have allowed oversea producers to maintain a drastically lower price range (5% – 20% depending on the product) as compared to domestic manufacturing in the United States. China eventually surpassed the U.S. in 2010, becoming the #1 leading manufacturer in the world.

Changes in healthcare, standard of living, labor laws, taxes, etc… significantly impact the overall cost of production in America. Due to increased operational costs throughout the U.S., a large number of companies have strategically moved their business to a cheaper alternative. In return, many U.S. market segments continue to suffer the growing import craze induced by foreign competitors. While constantly battling trade deficit issues, America still holds the 2nd place title in global manufacturing.

DID YOU KNOW?

Manufacturing workers in America are among the most productive worldwide in terms of hourly output. Producing over 18% of the world’s goods, the U.S. has remained a leading supplier for decades. Despite nationwide plant closures, increased unemployment rates, and recessions; U.S. manufacturing as a whole is in for the long-haul.

According to recent on-shoring and market economy trends, the light at the end of the tunnel could be much brighter than expected.

Production tides are forecasted to return once more to American soil, and here’s why.

INDUSTRY ARTICLE: Trending Update

If you haven’t read Thomasnet’s article; 83% of North American Manufacturers Are Likely to Reshore Their Supply Chains in 2021, you need to do so now! Current and forecasted reshoring trends are not merely opinions, but rather valid claims backed by powerful market research. This is a must read!

2. Domestic Manufacturing – Is Growing

The global economy may be one of the biggest factors in manufacturing growth, but there is one thing that matters more – DOMESTIC DEMAND. As defined in the Cambridge Business Dictionary, domestic demand is “the total amount of money that is spent on goods and services by the people, companies, and government within a particular country, or that would be spent if the goods and services were available.”

According to recent feedback produced by Thomas 2019 Survey on U.S. Manufacturing, the majority prefer to buy products “Made in America”. The survey also reported that the perception of domestic manufacturing is improving, and considered highly important to the U.S. economy.

• 95% stated manufacturing is important to the U.S. Economy
• 87% stated a strong manufacturing sector is important to national security
• 75% stated sustainability has a large impact on goods they purchase
• 60% stated they would encourage someone to pursue a manufacturing career

Regardless of closing foreign wage gaps, ongoing trade wars, and new competitive pressures; most of America’s manufacturing growth can be largely attributed to the following:

– The utilization of expeditiously advancing technology –

Applied science is quickly changing nearly every production asset in U.S. factories today. Those who have invested in this new age strategy are reaping the benefits of cost reduction through improved manufacturing processes. Here are a few aspects that characterize today’s modernization of American manufacturing.

• Automation & Robotics – Increased output per hour
• Advanced Planning and Scheduling – Logarithmic approach and AI analysis
• Smart Power – Increased energy efficiency and electric power generation
• Smart Manufacturing – Fully connected systems to maximize efficiency
• Process Improvements – Reconstructive improvements to current processes
• Lean Manufacturing – Eliminating waste from manufacturing processes
• Continuous Improvement – A method for identifying cost saving opportunities

3. American Production – Supports America

Manufacturing as a whole is the largest sector in the U.S. economy, which also happens to be the largest and most productive economy in the world. We hold a vast majority of the top brands, lead the globe in technology, and are home to the world’s best colleges. Our economy is also structured to be highly competitive, and to top it off – the U.S. dollar is king!

With that being said, buying domestically makes our nation more profitable and strengthens the U.S. economy as a whole. Next time you’re facing a “Made in America” decision, consider the following.

• Buying domestically increases domestic demand
• Domestic demand creates jobs
• Job creation reduces Government expenditures for assistance programs
• It strengthens and grows the domestic supplier base
• Your supply chain visibility will be improved
• Increased economic stability
• Significant risk reduction associated with trade tariffs and wars

Of all the benefits to buying products Made in America, increasing domestic demand is likely to be the most important of all. Did you know that domestic demand is the most influential driver to promote competitive advantage of American goods?

Competitive advantage is the ability to supply equal or superior goods in ways that generate a greater overall value. There are multiple factors compiling these advantages among suppliers, which exhibit both differential and comparative advantage components.

Strong Branding

High Quality

Improved cost structuring

Value added services

Creating superior products

Advanced technology

In addition, America is continually becoming more competitive from an operational standpoint primarily due to efforts in maximizing energy efficiency, increased supplier performance, and the narrowing gap of labor costs between U.S. and foreign entities.

4. American Made – Means Value Added

In case you were wondering, the answer is YES! Domestic suppliers will add value to your company, and it’s much more than what foreign competitors can offer. Aside from the economics, continuous improvements, and other various reasons why you should buy American… here are the value added perks you won’t get overseas.

– High quality standards – both environmental and finished product
– Eliminate counterfeiting – will not substitute “fakes” to gain a larger margin
– Risk reduction – rework, loss, recall, repairs, and late orders
– Smaller carbon footprint – green manufacturing practices and decreased logistical distance
– Outstanding customer service – home grown American people and clear communication
– Highly value “Made in America” – which means they will take pride in making your product
– Reduced travel expenses – shorter travel distance for business trips and plant visits
– Valued relations – American suppliers grow lasting relationships with their customers

5. Domestic Delivery – Time Is Money

Shorter lead times and the ability to react quickly are also huge benefits of utilizing a domestic supply base. A vast majority of domestic suppliers offer various programs, such as: VMI, stock & release, JIT, and min-max agreements – which reduce customer carrying costs and better serves their individual ebb and flow of demand.

To top it all off, local suppliers will make on-the-fly adjustments and are superior at filling rush orders and drop-ins; which will positively impact standardized inventory levels and cost as well. American manufacturers are also highly flexible, and will accommodate to unique customer needs when others can’t. It’s hard to beat suppliers willing to go this extra mile and is an excellent way to win new business!

Domestic manufacturing will ultimately save you time, and in this world – TIME IS MONEY!

By: Derrick Pledger

Inside Sales and Marketing
Phone: 479-489-5168
Grandeur Fasteners, Inc.
sales@grandeurfasteners.com

What exactly is Cold Heading? Let’s begin by defining the general term along with the basic principles of involved in the cold heading process.

Cold Head·ing
/kōld/ /‘hediNG/

verb

The process of progressively forming a specified shape from metal wire without adding heat – using a replicated series of dies, hammers, and punches at high speed.

Simply put: cold heading is feeding wire into a machine, cutting it into pieces, and hammering on it. The material is not heated or machined, but formed into its desired shape at room temperature. The ability to form material instead of removing it deems this process extremely efficient and cost effective when manufacturing large quantities.

At Grandeur Fasteners, we design and fabricate our own custom tooling and manufacture nearly all fastener forms including multiple upset configurations, customized head shapes, and substitutions for multi-part assemblies. Converting your supply needs to cold heading can benefit in many ways.

Tight Tolerances
High Speed Production Rates
Large Volume Capabilities
Reduced Raw Material Waste
Improved Physical Properties
Reduction in Cost Vs Machining
Capabilities Include a Large Range of Diameters
Standard and non-standard configurations are made to the customer’s specifications
Many secondary operations available to complete fully customized parts

Cold Heading Basics

Cold heading (or cold forming) is a method of forming metal in progressive steps into net shaped or near net shaped parts. Starting with a slug, which is cut from a continuous coil of wire material; the cold heading machine uses a series of powerful hammers and dies to form a part. This process creates very little to no waste, offers significant material cost savings, and the volume of the starting slug is about the same as the finished part. The net volume remains the same since the material is being formed into the die, rather than cut from the blank. The cold heading process creates a stronger part, with smooth continuous surfaces while enhancing the grain flow of the material.

In contrast, metal cutting operations are typically slow and can generate as much as 60% waste.

Cold heading is more efficient than machining, allowing rapid production of large quantities while maintaining tolerances as close as +/- .002″ without secondary operations.

Progression

A progression is the process of developing gradually towards a more advanced state. Starting with the slug, each step of the progression forms the material closer and closer to its’ final shape. Intricate fasteners often require a longer progression than simple fasteners, as many simple fasteners may be completed in 1-2 blows from a cold heading machine.

Progressions are not the same for every part. Each type of fastener or component has its’ very own series of punches, dies, and hammers which have been engineered to a unique specification. Material requirements also play a role in how the progression is designed. Softer metals will form more readily (e.g. Copper, Aluminum) while harder metals (e.g. Stainless Steel, Nickel Alloy) may require multiple blows to achieve its’ final form.

Basic Forming Techniques

Upsets and extrusions are two basic types of techniques used in cold headed manufacturing. These techniques involve the controlled forming of a material by applying enough force for the material to fill a voided space within a die. Each die is engineered accordingly, to produce the proper amount of material movement throughout the progression.

Upsets

Upsets are the most common and basic technique used in cold heading today. An upset is formed when the slug is reduced in height and the starting diameter is increased. This technique is often used to create the head of the part, and may be formed with open tooling, between tooling, or enclosed tooling – depending on the upset location and shape. Integral parts may require multiple heads and diameters. To achieve these complex configurations, different upsets are incorporated throughout the part’s progression.

Extrusions

Another common cold heading technique is called an extrusion. There are two types of extrusions: forward extrusions, and backward extrusions.

Forward extrusions force the material through a smaller diameter orifice, thereby reducing its diameter and increasing its length. The starting material may be partially or totally contained in the tooling before the start of this type of extrusion.

Backward extrusions force material to flow around a penetrating punch or pin while being contained in a die or punch insert. This extrusion is typically used to form a hole or cavity inside a part.

Secondary Operations

Complex fasteners and components often require secondary operations to produce finished parts. These operations cannot be performed on a cold heading machine and are complimentary to the cold heading process.

Thread Roll
Drill and Tap
Knurling and Grooving
Stamping
Heat Treat
Plating
Grind and Shave
Metal Finishing & Polishing
CNC Milling
Flatten
Pierce

Grandeur Fasteners – Cold Headed Products

Cold heading was originally created to manufacture fasteners. However, given today’s technological advancements and research, cold headed parts, fasteners, and components can be found in thousands of various products and structures around the world. This process is continuously being developed for new applications, allowing a growth in manufacturing and a reduction in cost for manufacturers.

Since 1975, we have continuously improved our process while finding new ways to help our customers reduce cost. As the leading and best cold headed supplier in the industry, Grandeur manufactures customer specific and highly specialized fasteners with unmatched quality. If your fastener or component needs require something special, whether in material or design, then Grandeur Fasteners may be a great fit for you. Contact us today to request a quote or inquire if cold heading is right for you!