East West In the News: Move to India Paying Off
A global contract manufacturer emphasizing on “right-shoring” (what’s Right-Shoring?), East West Manufacturing’s new India office is paying off. The strategic move to open an Indian office located in Chennai, India during Spring 2012 was featured in a recent Global Atlanta article by Trevor Williams. The opening of the new India office adds to East West Manufacturing’s diversified portfolio and enhances the strategic competitiveness for its customers by adding a new factory location to those already established in China and Vietnam.
Source: Global Atlanta
Published: July 18, 2013
Atlanta-based East West Manufacturing Inc. has seen its move into India pay off with major orders validating the rationale behind the decision: manufacturers are looking beyond China to diversify their sourcing for industrial products.
India is especially competitive in forged metal products, one reason East West set up its office in Chennai, an automotive manufacturing hub.
East West helps American clients source products in Asia, working through its network of vetted factories in China and using its own factories in China and Vietnam. The company has more than 4,000 industrial products in its catalog.
India was new territory, and it took awhile to get the necessary approvals to set up shop there. But East West has already received orders from three different companies for stainless steel tubing, ductile iron casting used to connect power lines and steel sprockets used for refrigeration equipment.
The companies shared similar reasons for selecting India: cost advantages in certain products over China, which has seen the labor costs rise steadily in recent years, and increased diversification.
“Initially we are looking at a combined quarter of a million dollars in annual business offering these customers a significant savings over manufacturing in China,” said Andy Reese, business development manager for East West.
Mr. Reese declined to name the specific customers, citing competitiveness concerns, but he did say that they are all key players in their industries.
East West was founded in 2002 by Scott Ellyson and Jeff Sweeney, who spun off the international sourcing arm of HVAC parts manufacturer Diversitech to begin providing the competitive advantages of global manufacturing to other companies. It entered China first, then moved to Vietnam to begin sourcing rubber products. India is the most recent addition to its portfolio.