[robertrazo]

We have a small unit working for PCB design and related works. We are planning to start a separate section for UPS and battery manufacturing. For that, we were searching for some metal fabrication services in Ontario like Bayview metals ( http://www.bayviewmetals.com). But some our friends says it is better to start a metal fabrication unit also. How about starting a metal fabrication unit along with this? We don't have much expertise in metal fabrication. So We will have to find experts in this field. What do you think about this? Please share your suggestions.

[Otto Nobedder]

While the idea of saving a large percentage on per-unit cost is attractive, you have two things to consider. First, obviously, is startup cost, including engineering and initial tooling. Second is, will your product requirements remain the same for long enough to justify the tooling, or will next years' upgrade/modification require expensive re-tooling? PCB manufacture suggests a market with rapid changes.

Just thinking out loud...

Steve S

[ldbtx]

You say you'll have to hire metal fab experts. Experts are expensive, and remember that the cost of an employee is greater then the annual salary. While it's an attractive idea to have a majority (or all) processes in-house, many times it's less costly to sub-out those processes that are out of your area of expertise.

Many years ago, I worked for an electronics equipment manufacturer in SoCal. They subbed out all metal-fab work and PCB manufacturing. Our plant handled mechanical assembly, electronics assembly (stuffing the PCBs), assembling the finished product and QA. I'm not saying that's the only way to do it, but it worked for them.

Good luck with your venture.

Larry

[robertrazo]

Thank you guys for your valuable suggestions