Hidden Costs of Offshore Sourcing May Add 20% to Die Casting Expense

ROSEMONT, Ill., Aug. 18, 2004 -- Unexpected costs often drive up the final price of die cast products by as much as 20 per cent for manufacturers and OEMs that use offshore sourcing, according to a study conducted by the North American Die Casting Association (NADCA) in conjunction with the U.S. Department of Commerce.

The results of the study are now available from NADCA as a booklet, "Hidden Costs of Offshore Sourcing." The report lists the top seven ways offshore sourcing of die casting can result in higher than expected costs and offers examples to illustrate some of the issues companies face when they do not work with North American die casters. http://www.diecasting.org/media/offshore.asp

Among the reasons for these unexpected costs are miscommunication, long lead times, the price of die failure, legal liabilities and payment for products sight unseen. The study also notes that market share and technology may be put at risk because of unscrupulous offshore die casters passing along trade secrets, specifications and marketing information.

"Many unsuspecting North American manufacturers and OEMs have been lured by visions of low prices for offshore die casting. Unfortunately, many of them have learned there's a bigger price to pay when their suppliers become competitors by copying designs or technological breakthroughs," said NADCA President Daniel L. Twarog.

According to NADCA, many manufacturers are discovering that there are very good reasons for choosing North American die casters, including innovation, integrity, accessibility and reliability. "Choosing North American suppliers not only provides quality and value with your die casting, but it helps safeguard the investment made in designing a product," explained Twarog. The 16-page booklet is available by contacting NADCA at (847) 292-3625 or e-mail: NADCA@diecasting.org .

Based in Rosemont, IL, the North American Die Casting Association (NADCA) represents the world's most effective die casters creating the world's best cast products. Working with a North American die caster guarantees innovation, integrity, accessibility, and reliability.

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