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Outsourcing can unlock new markets

Supplier News
article image CBSM managing director Greg Wallis.

AS THE competition level for manufacturers constantly rises due to tough economic conditions, lack of industry policy and accelerated imports, a NSW manufacturer is leading by example in calling for companies to anticipate and meet outsourcing needs.

Instead of waiting for economic change, by making basic market studies manufacturers of all types can increase market share by identifying areas in which the top tier of manufacturing is downsizing because of costs and filling the void.

"This approach in expanding our market is what took our company into a new phase in which we have become available for outsourcing," said managing director of Custom Built Sheet Metal (CBSM), Greg Wallis.

"We studied the capacity of the metal treatment industry and identified that a strong requirement for zinc phosphate pre-treatment of steel existed, but not one facility in NSW was available for outsourcing."

"Considering this process is arguably the most reliable steel pre-treatment to withstand the punishment from Australia's range of environmental extremes, we were confident when setting up the new plant as most tender specifications call for an IP65 rating on powder coated items."

CBSM's conveyorised pre-treatment facility has continuous operating speeds up to two metres a minute, therefore, as a contractor, it easily meets quantity of manufacture demanded by multinationals as well as smaller manufacturers.

Because of CBSM's greater market presence, Mr Wallis also believes a lot of manufacturers of items carrying powder coating will turn away from iron phosphate pre-treatment in favour of the more durable zinc phosphate process.

Venturing into the sphere of outsourcing also has given CBSM the economies of scale to contest market share in totally different arenas those it first targeted.

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