A Partnership Success Story: 20 Years in AGV Component Manufacturing
March 8, 2022
The Start of a Long-Lasting Partnership
It’s not a secret that the AGV industry is booming. In recent years, automated guided vehicles growth within the distribution and manufacturing space has increased exponentially, with the global AGV market CAGR projected to increase 10.3% during the 2021-2027 forecast period.
In North America, where the U.S holds the predominant market share, the retail and warehousing sector continues to be the key market driver, with automated forklift demand and integration projected to increase to support increasing pressure on meeting customer fulfillment times.
Fortunately, Electro Soft has maintained an ongoing partnership with a leading company in the air and food transport sector that has kept us at the forefront of the latest in AGV technology for more than 20 years now.
But how did it begin? Like most partnerships, it started small. But today, this client company has become one of our largest customers, and predictably, their needs are only increasing given the demand for autonomous guided vehicles.
The Unexpected Roadblocks in Overseas Sourcing
The client came to us after trying a couple of different options. They boasted in-house manufacturing and engineering capabilities, but when demand increased beyond what they could handle, they sought the most cost-effective solution.
On the surface, this appeared to be outsourcing to an overseas electronic manufacturer. But they soon learned, like many do, that language barriers, time differences, and the inability to shift a project quickly led to expensive, time-consuming errors.
With costs continuing to climb due to a long-distance, overseas partnership, the client sought another alternative. They needed to find a partner that could interpret their engineer’s drawings, deliver on time at a high quality, be an agile manufacturing partner, and swiftly respond to needed changes.
Providing a Manufacturing Solution Close to Home
This time they sought a manufacturing solution close to home. Located nearby in the same state, Electro Soft was ready and equipped to meet their needs. We started small by building cable assemblies. From there, we moved to constructing their PCB and electromechanical assemblies.
Additionally, because the client had huge buying power, we were able to drive the prices down even further on expensive parts. Another win for us and them! We were also able to work closely with their engineering team if we found issues while manufacturing their designs, causing minimal disruptions in the manufacturing process.
Every facet of this partnership just continued to highlight the benefits of working with an electronics manufacturing partner close to home – particularly, the significance proximity and flexibility can have on your project.
For this client, we have continued to pivot as needs have arisen. At one point, they relocated some of their secondary manufacturing out of state, where they remain today. We, however, continue to be one of their prominent manufacturing partners. We simply assemble all components, palletize the product, and have it shipped to the secondary location. This transition, among others, has been seamless given our client-driven model and ability to adapt quickly.
A Relationship That Hasn’t Stopped Expanding
Electro Soft has always prided itself in being reliable, dependable, meeting established deadlines. In fact, it’s one of the prominent reasons that our partnership with this client has lasted so long and remained so strong.
This is what the client company had to say when asked about our agreement, “Electro Soft has excellent turnaround. It consistently only takes them a third of the time compared to our other suppliers!”
While speed undoubtedly helps adhere to timelines, we want to ensure that the electronics components we are delivering are of the highest quality possible. That’s our top priority. To know that our skilled, knowledgeable team and well-orchestrated processes align to support both goals is something we’re proud of and what our clients notice.
It’s because of this best-in-class delivery that our relationship with this client continues to grow. In fact, this client company has enough demand that it would take 100% of our capacity to fulfill their needs as a single source. Just as we value this partnership, we value the partnerships we have with all our clients across industries. So, as our team can take on more volume, this manufacturing partner continues to increase AGV contracted business with Electro Soft, making it a 20-year trusted relationship that is truly ever-growing and expanding.
Your Start to a Valued Partnership
Did some of the issues this client faced resonate with you? Are you looking for a trusted electronics manufacturing partner in the U.S to help navigate challenging supply negotiations?
Our experienced team can consult you regardless of what project stage you’re in and can provide a quote. Let’s start a conversation today!