One of the most basic rules of business success is to ensure that your outgoings are far less than the money coming in. This prompts companies to regularly monitor their finances and find new ways to cut costs.
The Coronavirus pandemic has greatly exacerbated the need to save money, with businesses from all industries being forced to furlough or even lay off some of their workforce. One other way companies can look to cut costs is through supply chain management, especially if they regularly import stock from overseas.
This is certainly true if you are in the market for components made via CNC machining and are used to dealing with foreign manufacturers. You may think that you are getting the best value for money, but the truth is that you are subjecting yourself to several hidden charges that you wouldn’t have to worry about if you sourced your CNC machining services from the UK. While they may be small, these extra costs will soon mount up and negate any benefits you thought you were getting.
Isn’t CNC Machining from the UK More Expensive?
Before we delve into the main point of the blog, we’ll address the obvious elephant in the room. Purchasing CNC machined components from the UK will on the whole be more expensive on a per capita basis than items imported from abroad.
This is a fact that cannot be denied, but it is also not necessarily a bad thing. Products manufactured in the UK are well known for their unrivalled quality and stringent control procedures. This solid reputation and an increasing desire to buy British are just some reasons why companies are willing to pay a slight premium for UK-made components.
If you compare prices on a component made in the UK with one manufactured abroad on a solely base level then you are almost guaranteed to find that the British product is more expensive. It is only when you delve deeper that the financial benefits of not importing your items become clear.
1. No Exchange Rates
If you’re purchasing your CNC machining from overseas, you will be at the mercy of fluctuating exchange rates. This means that your order could suddenly get a lot more expensive than you bargained for – especially if you are dealing with an extremely volatile currency. This can be particularly damaging if you are working with tight margins as it could have a serious effect on your cash flow.
Buying CNC machined components in the UK means you are dealing with just one currency all the way through. As a result, you will not only be immune from surprise price hikes, but will also find it much easier to plan your finances.
2. Order the Quantity You Need
If you work with overseas suppliers, you may find that they are unwilling to supply you with small orders – potentially forcing you to buy much more than you actually need. This not only has a knock on effect on your cash flow, but also leaves you with extra stock that you could struggle to get rid of. Even if your supplier is open to fulfilling small orders, the high cost of shipping could still mean that it will be more cost-effective to buy more than you actually need.
Working with a UK CNC machining company gives you the opportunity to place orders of all shapes and sizes. Being able to customise your quantity to suit your own requirements and budget ensures you won’t have to waste your resources purchasing more items than you need – keeping your orders as cost-effective as possible.
3. Lower Delivery Costs
Ordering CNC machining products from overseas means you’ll have to deal with the often high costs of shipping your items. Having your items shipped by air or sea is naturally much more expensive than by road alone – which can push up the cost of your overall transaction much higher.
Another advantage of purchasing CNC machined components from the UK is that you will experience much shorter lead times. While this doesn’t lead to cheaper costs on face value, it does mean that you avoid having to wait months for your items and suffering project delays that have a detrimental effect on your bottom line.
4. No Shipping Taxes
If you import your CNC machined components from outside of the UK, you will be subjected to additional taxes such as VAT and Customs Duty. This can prove to be particularly expensive if you are forced to purchase your items in bulk.
These types of taxes simply don’t exist if you work with UK-based suppliers – so the only charge you’ll face is for the actual delivery of your items.
5. Take On More Projects
If you’re a smaller manufacturer, you may find that you are sometimes unable to deal with larger orders by yourself. As a result, you will outsource some or all of the work to another provider.
Should your provider be from overseas, you could find that you are limiting yourself in terms of the types of orders you can accept. For example, you will be unable to pitch for projects that have tight deadlines as the time it takes to receive your components will just be too long.
Since CNC machining from the UK can be delivered to you in a matter of days or weeks, you can be much more flexible with the types of projects you accept. It could also allow you to accept more orders in a shorter space of time than you would otherwise be able to.
Which CNC Machining Provider Should You Choose?
As you can see, there are many different ways that purchasing CNC Machined components from the UK can help your finances. Not only that, but these factors only scratch the surface when it comes to the advantages you gain by supporting Brand Britain.
Once you’ve decided to purchase your components from the UK, the next step is to decide which manufacturer to work with. You need someone that is reliable and can support you whenever you require assistance.
EGL Vaughan prides itself on its ability to forge relationships. We provide a high-quality service that encompasses everything from your initial enquiry right the way through to delivery.
We guarantee that you will receive a rapid quote and are confident in our ability to work with the tightest of timescales. No matter your requirements, you can rely on us to deliver time and time again.