Parts vendors going out of business-sour economy

JMPRO · JMPRO's Garage

I have several small and medium sized vendors that make parts for me and I am always careful to try to keep new ones in the wings in case someone can't deliver. I received a notice that one of my guys closed shop 12/31/08 because of the economy. Lucky for me he merged his business into another shop that does the same thing so there will be no interruption in delivery. I also have ample stock in case of such an emergency of all my parts but now I am really taking a hard look at every vendor to see if there is an acceptable alternative to the service they offer. Everything has been going smoothly for a long while now so I don't like to see this happening, it is so much easier to just call the guy you know a tell him what you need like you have done a dozen times instead of having to hassle with new people. I don't like to see this happening to anyone but I guess its a sign of the times.
JMPRO
JM PRODUCT DESIGN

kach22i · kach22i's Garage

Yep.

Which state and or country was this one in?

id10t · 01-14-2009, 12:17 PM

If your stuff is made with CAD/CAM drawings, etc. then maybe discussing putting your stuff in escrow somewhere would be good...

JMPRO · JMPRO's Garage

This is in Orange County Ca. I don't want to sound like the sky is falling guy but I will be a littlle more vigilant about this as it appears that many of these companys are operating on the fring of failure and the slightest thing can push them over. Like i said before this is not something that will interupt my shipments to my customers in any way as I have prepared for this but that means more inventory. Any one need a cup holder. I have 500 in stock and ready to ship.
JMPRO

ruf-porsche · ruf-porsche's Garage

Who own the right to CAD CAM drawings? I know as a license architect all drawings produce by an architect are own by the architect and the homeowner or corporation that hires an architect does not own the drawings.

Zeke · 01-14-2009, 02:12 PM

I looked up JM Product Design in FV on Google. It came up as an interior designer. We got cup holders in the home and office now?

Smart thing for you to do is invest in your suppliers' future if you know your future for that (those) product(s) is/are solid. You could even help some of the smaller ones relocate to a home garage or shared facility. I had a guy do this with me some 40 years ago when I was making fiberglass fenders for VW's. He not only ensured his supply, he pretty well governed the price.

Trouble was, eventually, he didn't make it. Literally. He was an older businessman dabbling and he died. Smart guy, though. He made a good living buying small businesses and making a go of them before selling out.

JMPRO · JMPRO's Garage

Interior designer, thats why I keep getting all that mail trying to sell me sofa material.
Merging or helping someone out won't work for me. One is I am a grumpy old man and 2 is I have a home based business and barely have the room for my stuff and inventory. Now I have more new inventory coming and told my wife the bonus room is going to become my annex for the new parts. I got that pinched smile reaction from her {she didn't say no}.
Jerry
JM PRODUCT DESIGN
Interior Design by assignment from google
Get off my lawn

Zeke · 01-14-2009, 04:54 PM

I didn't say to bring them home for dinner. They should maintain their own premises even if it's in their garage. It was just a thought.

Good luck to you and the ones trying to stay in business. Sounds like you've got the better business model.

lendaddy · 01-14-2009, 05:09 PM

That's odd, everything here in Michigan is going splendidly. Do you think this is a national thing...the manufacturing slow down that is?

jim72911t · 01-14-2009, 06:53 PM

It's getting kind of scary out there for job shops. We used to be in that business, but our proprietary products are actually selling better than ever and thus haven't had to make parts for others for several years.

Recently I visited a well equipped shop a few miles away because the owner is closing and selling equipment for pennies on the dollar. I picked up a couple of hardly used $1200 vises for $200/ea and, to be honest, felt really bad about it. (I hate seeing manufacturing in the US decline) The owner actually seemed really grateful that someone was in the position to buy his extra tooling, and I told him I would send any business I could his way.

I'm expecting the price of larger equipment (CNC Mills, lathes, EDMs, punches, etc) to really come down in the next six months, and am guessing this will bring some smaller guys back into the game, working out of the garage to start. Hopefully we are at or near the bottom, and manufacturing will again thrive in the US.

Note that I said hopefully.

JMPRO · JMPRO's Garage

My business is holding up well and although it is not my primary source of income I do expect it to pay for its self and keep me supplied with porsche parts. I know a few people in the job shop business that have had to really pull in the reins on spending to get through this. My wifes company had to let 3 people go and that was half of their work force. Those people don't know what they will do as the resturant design and build business has taken a real hit in the last year. Many , many new projects have been canceled or delayed untill who knows when.
JMPRO