Tag Archives: California

Die Casting Companies Remaining in 2010

Not to many years ago, there were over 70 die casting companies in the southern California area. Now, there are only 26 die casting companies remaining in southern California. Here is that list:

  1. Alcastco
  2. Alloy Die Casting Company
  3. Aluminum Die Casting Company
  4. Ambritt Die Casting Company
  5. American Die Casting Company
  6. AQ Die Casting Company
  7. Arrow Die Casting Company
  8. Artmold Die Casting Company
  9. Bucy Die Casting Company
  10. California Die Casting Company
  11. Cast Engineered Products Company
  12. Cast-Rite Die Casting Company
  13. Commercial Die Casting Company
  14. Cox Die Casting Company
  15. Die Cast of America Company
  16. Drumheller Industries
  17. Dynacast Company
  18. Hyatt Die Casting Company
  19. International Die Casting Company
  20. Jeff Courts Company
  21. Kenwalt Die Casting Company
  22. Kim Lighting Die Casting Company
  23. Kinetic Die Casting Company
  24. Pacific Die Casting Company
  25. Pioneer Die Casting Company
  26. Rangers Die Casting Company

Kinetic Die Casting Company is doing very well. A few other of these die casting companies are doing well but many of these companies are nearly out of business. Two “die casting companies” on this list are down to a “one man operation” while a some others only have a few employees that are called in to work when a new purchase order arrives. A few of these companies are barely making the monthly payroll and utilities expenses. In fact, one of these companies will produce parts in exchange for metal, because they are COD with their metal supplier and they do not have the cash to buy materials to supply their other customers with parts.

If you are a buyer of die casting parts, consider this:

  • If the die cast parts you are buying are more expensive everywhere else you look, your die casting supplier is hurting and may go out of business.
  • If your die casting supplier does go out of business, how do you get your die cast tooling?

Kinetic Die Casting Company:
The good news for Kinetic Die Casting Company customers is that we finished the 2010 year very strong.

We have a full work backlog for January 2011 and we look forward to obtaining greater goals in future years.

You should consider moving your die casting part requirements to Kinetic Die Casting Company if you are unsure of your present die casting parts supplier.

Quality die cast parts delivered on time.

Kinetic Die Casting is a aluminum and zinc die casting company. If you would like to know more information, please visit our website:Kinetic Die Casting Company

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Why Did These California Die Casting Companies Close

I was thinking of my recent discovery of the closure of Die Cast Manufacturing Company in Bloomington California. The other casualties in the California die casting industry came to my mind:

  1. Die Cast Manufacturing Company, Bloomington California.
  2. Modern Die Casting Company, Paramount California.
  3. Lansco Die Casting Company, City of Industry California.
  4. Pomona Die Casting Company, Pomona California.
  5. C&D Die Casting Company, Chatsworth California.
  6. Chapman Die Casting Company, City of Industry California.
  7. Spencer Die Casting Company, Vernon California.
  8. Coast Die Casting Company, Gardena California.
  9. Compu Die Casting Company Compton California.
  10. Universal Die Casting Company, Los Angeles California.
  11. Del Mar Die Casting Company, Gardena California.
  12. Los Angeles Die Casting Company, Commerce California.

These companies either closed or were sold to competitors. My company, Kinetic Die Casting Company, purchased two die casting companies from the above list. Why did the companies that closed, close? That question comes to my mind frequently. These companies are all recent casualties, 10 years or less. There is a much longer list of closed die casting companies from over the last 30 years.

Some of my remaining competitors are still doing poorly. Three or four of these remaining California Die Casting companies are actively trying to sell their operations before they have to close. The ones that I cannot make an agreement with, I hope will be purchased by another competitor, or I hope they can hang in there until California can get “economic recovery”. Good luck to all of us California Manufacturers.

2010 Best Year in Last 10 Years
Kinetic Die Casting Company is doing very well. We are ending the best year we have had in over the last 10 years. We are starting 2011 with a full backlog. Our delivery and quality records with our customers are the best they have ever been. We are financially stable and we are growing rapidly. Thank you for reading our blog.

Kinetic Die Casting manufactures aluminum die castings creating aluminum die casting boxes, aluminum handle hardware, and aerospace die casting. If you would like to get a quote, please visit our website: Kinetic Die Casting Company

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Manufacturing Returning From China to California

CP Lab Safety was worried about escalating product costs. So it decided to move its manufacturing overseas — to California.

After more than seven years of using a contract manufacturer in China’s Guangdong province, the Novato company this spring shifted production of its Eco Funnel and some 80 other products in its portfolio to Wright Engineered Plastics in Santa Rosa.

It was a no-brainer for CP Lab Safety CEO Kelly Farhangi: “In the U.S., you can manufacture on a cost comparable to China.”

Companies are “reshoring” manufacturing — even to California and the Bay Area — for reasons that vary as widely as the types of goods returning to American factory floors.

Four Northern California companies in the past five months have reshored products from China to Wright Engineered Plastics, said President and CEO Barbara Roberts. Their reasons range from costs to vicinity to market and from quality to finance.

Chinese manufacturers, for example, won’t ship until a product is completely paid for, Roberts said, and then transportation could add another 30 days or more.

“That’s a double-whammy,” she said.

This is not your granddaddy’s smoke-belching, middle-class-securing manufacturing, but domestic manufacturing advocates say it represents an opportunity for jobs in a down economy.

“At the end of the day, everything else being equal, it’s always best to manufacture near your markets,” said Ken DeWoskin, a senior adviser at Deloitte in China. “But everything being equal has a lot of questions.”

Those swirl around a host of global economic factors like labor quality, cost and overall productivity as well as an unfolding regionalism — shaped by free-trade agreements and common currencies — that puts more emphasis on the proximity of supply chains.

“With the U.S., Mexico, into Central America and South America, you can integrate supply chains even more and at the expense of China-U.S. trade,” DeWoskin said.

Even then, whether it makes sense to reshore manufacturing depends on the product, he said. The supply chain for consumer electronics, for example, is well established in China.

It may make sense, however, to get components from other markets and site final assembly closer to a company’s market, DeWoskin said.

That’s precisely what Tesla Motors looked at when the San Carlos electric car maker opted to ship assembly of its battery packs from a pilot plant in Thailand to California. Those nearly 7,000 lithium-ion cells continue to be made in Japan and Korea, but it didn’t make sense for the assembled packs to sit on a ship for 10 to 15 days, said Diarmuid O’Connell, Tesla’s vice president of business development.

“Is it more expensive in some respects — in real estate and labor — to assemble battery packs in the U.S. compared to some other overseas markets? Yes,” O’Connell said.

But moving assembly close to Tesla’s R&D operations “makes a lot of sense,” O’Connell said, as the company continues to develop and make changes in its technology.

That plays into the thinking of much smaller companies, like Farhangi’s CP Lab Safety, as well. Although it continues to make the molds for its products in China, where Farhangi said there are significant engineering cost savings, the company can make production changes quickly by using a domestic manufacturer.

Whether more companies reshore manufacturing in California — as opposed to another state, Mexico or South America — is largely in the hands of policy makers, said Gino DeCaro of the California Manufacturers & Technology Association.

“California needs to show a deep understanding of manufacturing. We need an analysis of what policies will do to the manufacturing community in the state,” DeCaro said. “That would be a big signal to companies that have looked to California in the past and seen uncertainty.”
Why manufacture in China?

* Shipping costs are at a three- to four-year low.
* Integration of supply chain, especially for products like consumer electronics.
* Labor costs remain cheaper than in the United States.

Why manufacture in the Americas?

* Closer to American markets.
* Integration of supply chain, potentially for things like auto assembly.
* Ease of making changes to orders.
* Time. Products don’t sit on boats for weeks or months.
* Cash use. Chinese manufacturers can require full payment before shipment.
* Strength of currency. As the dollar weakens, the underlying cost advantage of China may dissipate.

Email Ron Leuty at rleuty@bizjournals.com / (415) 288-4939

Kinetic Die Casting manufactures die cast parts for their customers. If you would like to know more about what is die casting or if you would like a quote, please visit our website:Kinetic Die Casting Company

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Lost Manufacturing Jobs in California

Two months ago, more than 300 people were employed at the site making engine parts for trucks and heavy machinery for Gregg Industries, which is owned by Neenah Enterprises Inc. in Wisconsin.

But a settlement with the South Coast Air Quality Management District required Gregg to spend $5 million on factory improvements, so the company decided instead to leave the state. Company spokesman Adan Ortega Jr. said Gregg didn’t want to make the payment in the difficult economic climate.

Gregg is part of the parade of companies marching out of California. The state lost 79,000 manufacturing jobs between 2003 and 2007, while seven other states with a meaningful percentage of U.S. manufacturing gained 62,000, according to a report scheduled to be released today by the Milken Institute.

The report blames the state’s onerous regulations and high taxes in particular for pushing businesses elsewhere.

“The picture is not pretty,” said Perry Wong, senior managing economist at the Milken Institute, which received funding from the California Manufacturing and Technology Assn. for the study.

The state is shedding manufacturing jobs at a faster pace than the nation as a whole, the report said. Though many jobs left the country in the 2002 recession, states such as Arizona, Nevada and Oregon saw an increase in manufacturing employment in 2003.

Part of the problem, Wong said, is that regulations change so often in California that it’s difficult for companies to plan. The state enacted an average of 15 changes in labor law each year from 1992 to 2002, four times more than state legislatures averaged nationwide.

California also often requires projects to be approved in many different jurisdictions, so that a plan vetted by the state could be sidetracked by the county, Wong said.

Not everybody agrees with the report’s conclusion. Christopher Thornberg of Beacon Economics said manufacturing output has been as high as ever in the state and that there’s no evidence that jobs are going to other states.

“At least up to the last couple of years, the pace of job loss in manufacturing in California was no different than anywhere else,” he said, basing his calculations on the state gross domestic product, the value of goods and services made in the state.

California GDP grew last year despite the global financial crisis, said Brian McGowan, the state’s deputy secretary for economic development and commerce. And green-energy jobs in the state have grown at a rate 10 times faster than total job growth since 2005. To evaluate a state’s business climate, he said, companies should focus on workforce skill, availability of capital and overall quality of life, rather than just on taxes and regulatory costs.

Still, Gregg Industries in large part blames the frustrating regulatory environment for its fate. Ortega said a few neighbors complained that the factory smelled, calling the AQMD hotline frequently. He said inspectors began to harass Gregg employees, citing the company for odor nuisances on days when machines weren’t even running.

“The agency here was accusatory and threatening,” Ortega said. “Workers lost their jobs because we couldn’t meet an arbitrary standard of nuisance odors.”

The Milken report also broke down the job losses by sectors. Cut-and-sew apparel manufacturing lost 45,000 jobs since 2000, the computer and electrical product industry cut 70,000 and the printing industry shed 23,500. The report calculates that if manufacturing had maintained its 12.8% share of employment in the state, nearly half a million jobs paying an average of $57,000 a year would have been preserved.

To prevent more departures, the study recommends creating incentives for innovation, assisting companies in obtaining capital, investing in workforce development and establishing an office to streamline the regulatory process.

Heftier incentives might have motivated SolarWorld, a manufacturer of solar technology founded in Camarillo, to keep more jobs in the state. It decided to consolidate its wafering and cell manufacturing in Oregon after that state offered incentives, such as property tax abatement and business energy tax credits, said Bob Beisner, a company vice president. SolarWorld will employ 1,000 in Oregon by 2011. It will also keep some jobs in California.

“The price of land in California was extraordinary, and the incentives that the state was willing to talk about were few,” he said.

The business community fears that the exodus might quicken with the implementation of more regulations, such as one that would cut warming emissions in the state to 1990 levels by 2020. The California Chamber of Commerce has labeled that law a job killer.

The state Assembly Committee on Jobs, the Economy and Economic Development plans to hold a hearing June 30 on the departure of manufacturing jobs. In April, Assemblyman Dan Logue (R-Marysville) brought 13 legislators to Nevada to talk to business owners who had been lured there from California.

“We have to stop the hemorrhaging,” he said. “We have to make California business-friendly again.”

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C-D Die Casting Chatsworth California

Sometime around the year 2003 or 2004 C-D Die Casting Company in Chatsworth California, closed their doors for the final time. C and D Die Casting Company had been around for many years prior to that time. C and D Die Casting Company had locations in Arizona and Mexico. The plant location in Mexico closed down for production a few years prior to Arizona closing and Arizona closed a few years before the California location.

C and D Die Casting Company specialized in small parts with their self made die casting machines. They had a few larger machines but the larger part of their business was on the small 400 ton die casting machines. Their self made 400 ton die casting machine had the appearance of a 100 ton die casting machine by most machine manufacturer standards.

Kinetic Die Casting makes great quality aluminum, and Zinc Die Casting If looking for a job or would like a quote please visit our website:Kinetic Die Casting Company

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