TEMPE, ARIZ. (Oct. 6, 3:10 p.m. ET) — Plastic Engineering Inc. is partnering with two entities in Nogales, Mexico, to lower costs for certain injection molding and machining work.
In early September, the Tempe-based firm established relationships for machining with the National Manufacturing Mexico LLC unit of Stow, Ohio-based National Machine Group and for injection molding with the Nogales Plastic Molding SA de CV operation of Nogales, Ariz.-based Azmex Plastics Molding LLC.
“We need low cost pricing to compete,” said Trent Powell, sales manager.
Plastic Engineering says studies show that Mexico manufacturing cost savings can exceed those of companies in China or India and that the difference in direct labor costs has narrowed.
Plastic Engineering employs 60 and occupies a combined 43,000 square feet in three locations. Tempe has capabilities for precision machining and vacuum forming. A Houston site offers injection molding, and an Irwindale, Calif., facility has precision machining.
Of the firm's core machining work, plastics accounts for about 80 percent of volume and metal for the remainder. Together the injection molding and vacuum forming processes represent about 30 percent of total sales.
Great Western Registrar LLC of Phoenix provided the firm with certification under AS9100 effective July 15. That enables Plastic Engineering to further pursue work on “any component that touches an aircraft,” Powell said. Aviation, about 15 percent of business, is seen as a potential market for growth.
Recently, the firm created the GotFOD.com website focusing on “foreign object damage” that costs the aviation industry billions annually.