
Whether
we like it or not, doing business in today’s economy means dealing with an
increasingly global marketplace. For Americans, this means we are no longer
the only contenders. Companies from all over the world now compete for a
piece of the pie.
At Peterson
Manufacturing, we have experienced the effects of this firsthand. Over the
years, we have seen an increase in competition, especially from offshore
companies that produce poor quality lighting products and sell them at low
costs.
Several
years ago, this left Peterson’s senior management with some serious
questions: How do we respond? Do we stick our heads in the sand and
pretend offshore competition will go away? Do we lower costs? Do we get
rid of certain product lines altogether?
After
looking at all the options, Peterson decided the best response was to become
proactive in two ways. First, we responded by communicating the message
that quality matters. What many consumers don’t understand is that some
offshore vehicle lighting products don’t meet federal lighting regulations.
Peterson lights not only meet federal regulations, they exceed them by 25
percent! Peterson is a quality manufacturer that makes a superior product
at a fair price – this is more than just a message.
It is a core
value and philosophy of how Peterson conducts business.
Secondly,
Peterson lowered its costs on select products by forming a strategic
partnership with International Manufacturing Solutions (IMS). Formerly
known as TECMA, IMS is a manufacturing company located in Juarez, Mexico –
just across the border from El Paso.
Beginning in
1999, IMS began assembling select Peterson products at their facility in
Juarez. Even though assembly of these selected products takes place at IMS,
Peterson still plays a very active role in bringing it all together. The
plastic parts are molded at Mission Plastics. Our shipping department
ensures that all of the right components are shipped to IMS and associates
from quality, press, manufacturing and inventory control work closely with
IMS to make sure certain standards are met.
So far,
Peterson’s two-fold response has paid off. It will continue to take time
and effort, but customers are learning that quality is an important issue
and you get what you pay for. Also, with help from IMS, we have been able
to compete more effectively with select product lines which, in turn, has
contributed to Peterson’s overall profitability.
