Trends in US manufacturing sourcing practices show that companies are shying away from placing business in China while bringing back previously placed business to the US or Mexico. Reasons include steep increases in Chinese labor and overhead costs due to the development of a Chinese middle class. More people want to take advantage of and enjoy capitalist goods. Wages have increased. A decade ago, factory workers in China were paid $0.50 – $0.60 cents an hour or less. Today, wages are reported to be more than $3.00 and there are predictions of $6.00 an hour by 2015.
In addition, there are many concerns about the Chinese subsidizing some of their industries, such as metals production. Another factor is much publicity surrounding labor conditions and employment of underage personnel, etc.
Perhaps most importantly, transportation and logistics costs continue to rise. And, if goods need to be returned or rejected, there are more delays and expenses, with the Chinese supplier having been paid in advance!
Of course, there are always cultural, ideological and language barriers that need to be bridged.
Overall, it appears the move to send all manufacturing to China has peaked and is, in fact, reversing.
For the solar industry to become more competitive and grow, especially in the current scenario of questionable government assistance, it is imperative that we find ways to make the balance of system costs become less. BOS in this case means all of the structural support and panel framing systems, as well as the electrical apparatus. In searching for cost reductions, all types must be considered, including the non-value add costs of freight.
Pyramid Mouldings, and our joint venture partner Reliance Steel and Aluminum, through the FP Structural Systems entity, offers a vertically integrated solution for structural roll formed parts used in solar racking applications. Reliance’s (Feralloy) buying power enables lower cost master coils to be shipped by rail to our West Coast plant. There the material is slit, roll formed and fabricated under the same roof, saving conveyance and freight expenses, and eliminating inventory stores. When significant volume is required, we can typically offer savings of 40% when compared to aluminum extrusions. We work closely with design engineers to maximize product fit and function.
Single source of the various components and leverage with steel mills provides value and flexible response time for our solar partners, both on the East Coast and West.
FPSS gets it’s new roll forming machine to increase productivity.
FPSS was formed to provide low cost roll forming and fabrication services specifically for the solar and construction markets. By placing roll forming, stamping, and assembly, equipment at Feralloy’s metal service center, we are eliminating the cost of packaging and transportation to ship raw coils of metal to a fabricating plant. And, the California location minimizes shipping cost to the final installation site.
Pyramid Mouldings is proud to launch our new website.