new business

[jaimi]

I'm a new member to this forum so wanted say hello to everyone.

I'm considering to start a business,
- Do someone think its worth to start a business in Injection molding or stamping areas in US? Does one would be more beneficial than other?
- Does it worth to start a business in Asian country like china or philipines where labor cost would be low
- Is any reliable source where I can find out the details about above business or probably need to higher a consultant.

Thank you,

 

[tygerdawg]

Unless you already have customers ready to give you business, I think a new custom inj molding operation would be very risky and suffer from low-margin pressures. There are very many other companies doing the same thing, fighting over the same percentage of the market. I thought about it years ago. All the technology and equipment exists to run an injection molding operation "lights out" and without people in order to make it cheaper. Then I realized my potential customers could STILL have cheaper prices from Mexico or wherever. Decided against it.

TygerDawg
Blue Technik LLC
Virtuoso Robotics Engineering

http://www.bluetechnik.com

 

[jaimi]

Thnks for feedback.

Does anyone have comment to start a business with stamping press?

Basically, I want to understand the market needs to understand what kind of business to start related mechanical/automotive/manufacturing. Does any resource?

Also, does any source that helps to investigate if any business will be profitable?

 

[ajack1]

I would agree with tygerdawg, this is a hugely competitive business and the market is flooded with competition from Eastern Europe, Far East and South America.

I can only really speak for the UK but companies are folding on an almost daily basis, it is a very uneven playing field not only in terms of wages but also health and safety issues go to China or Mexico and you will find people sitting INSIDE presses operating them for example.

As far as hard facts and figures go you could join the Gauge and Toolmakers association to get these I believe the cost is around £1,000 but this is such a small amount compared to setting up a press shop it would be well worth it, unless of course someone on here can give you the hard facts you are looking for.

My advice, think very long and hard before going down this road.

http://www.gtma.co.uk/default.asp?page=251

 

[jaimi]

I'm considering to start the company as Tier III Auto supplier in Asia since its difficult to focus on design and development activity during initial stage.

Currently, I'm doing investigation about customer since its primary factor. The investment is dependent on customer demand.

(A) How to contact new customer since I don't have facility up and running? I'm not sure how much to invest and how to approach them if they will give me business or not?
(Let me know besides presentation and intention for investment)

(B) How to investigate the existing supplier and their part cost for customer to be competetive in the market?

 

[MacGyverS2000]

I'm not sure what others have seen, but I would have zero interest in talking with a "supplier" who has no facilities built yet to actually supply me with anything. If that supplier doesn't even know how much they intend to invest, I have less than zero interest as it appears they woke up one day and simply decided to start molding... not a real confidence builder.

I also don't think you're going to find many shops willing to part with financial info... you would be a direct competitor, so why would they give you information necessary to compete? Ever heard of shooting yourself in the foot?

Dan - Owner

http://www.Hi-TecDesigns.com

 

[spider007]

Most businesses are started as a natural evolution in a person’s carrier. This type of business is tough and expensive (especially now). I don't know what your background is, but one of the better ways to break into the business is to work for someone else who is in it. And I don't mean a job running the press, or sweeping the floor, I mean a job with some responsibility. Once you gain the experience, and most importantly "the contacts", you can setup a small "garage type" operation to start, and maybe one of those customers of the old boss will throw you some work once in a while.

Like I said before, I don't know what your background is - but it just seems like there isn't a whole lot. Starting a major manufacturing company like this definitely requires some previous experience in this industry. You got to know your product/service and industry inside and out, and in this case reading a book, or an online report, i just not nearly enough - you NEED experience. This isn’t a grocery store.

 

[ajack1]

So let me get this straight, you intend to set up a business but you are not sure what it will do, you do not know where in the world it will be, you have no idea who your customers will be or the costs involved or at what price you will be able to sell whatever it is you end up doing.

How long exactly have you been planning this?

 

[jaimi]

I was trying to understand the start up business location and investment from experience people and received some good suggestion.

The part cost I was refering for past years say for year '03 which gives the rough idea to be competive in market. We all have seen the fact that years of exprience company do file chapeter 11 and young entrepreneur doing well.

Thank you very much for everyone's feedback,