Custom Fabricators Inc

Essay by jpros619University, Master'sA-, June 2010

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Custom Fabricators Inc � PAGE �1�

Custom Fabricators Inc

Introduction and Summary

Custom Fabricators Inc., founded by Ben Lawson, is an industrial goods manufacturer that supplies top-quality brackets and panels for elevators and storage solutions. For several years, Custom Fabricators Inc. has been doing business for Orleans Elevator in Bloomington. With Orleans Elevator being a long-term buyer, it has provided Custom Fabricators Inc with a decent and profitable business for the company and its' workers. However, due to adopted advanced technology, Orleans Elevator is thinking of outsourcing to other suppliers and outsourcing the whole subassemblies in order to reduce their cost in supplies. Orleans Elevator is conducting auctions through the free markets to purchase raw materials at its lowest cost. The biggest threat for Custom Fabricators is losing their main client (Orleans Elevator in Bloomington) to Mexican suppliers and their lower labor costs. Ben knew that it would be very difficult to reduce his labor costs, and there would be no way that he could compete with the Mexican labor market on that dimension (Custom Fabricators Inc.,



1) How does Ben Lawson's Custom Fabricators Inc., create value for Orleans?

Ben Lawson and his company provided Orleans Elevator with top-quality supplies along with providing beautiful craftsmanship. Moreover, they have been making all kinds of panels and brackets for the plant and even "set up a very efficient process for fabricating exactly what the plant needs in these parts with very lead time" (Custom Fabricators Inc, 2009). Furthermore, during the late 1980s, Custom Fabricators has entered into the lean manufacturing with New Orleans at the right time, which they deal with less work, supplies and lower cost.

2) In the past, what has been Ben Lawson's competitive advantage in keeping the Orleans business?

Ben Lawson's competitive...