What are Tariffs – How Do They Work?

Most modern economists suggest that tariffs are harmful for all nations involved and in the last 60 years many countries have been trying to minimise any friction to trade by removing tariffs. However, in recent news, not a day goes without mention of tariffs! So what are tariffs, why is everyone talking about them and how do they affect your day to day business?

A Background into Tariffs

A tariff is essentially a tax on imports and/or exports between sovereign states. Historically, governments have used tariffs to raise funds from traders. It is important to note that tariffs don’t cause a rise in the seller’s price, but instead cause an increase of the purchaser’s cost, affecting importers and consumers. They are often collected by Customs agents at entry points such as seaports, airports or border crossings. The revenue from these collections then goes to the government.

Interestingly the US Federal government was primarily funded through customs revenue from independence until 1913 when the Revenue Act was passed, leading to the introduction of income tax. During this period, customs revenue routinely accounted for 80-90% of total federal revenue. As of 2017 customs revenue makes up roughly 5% of revenue.

Other than revenue generation, tariffs have also been used to provide protection for domestic industries or to attempt to influence global trade. In theory, through tariffs goods imported from overseas end up costing due to the additional taxes placed on these imports. The additional costs end up being borne by consumers. Supporters of tariffs say that they help protect domestic industries that are less competitive. Opponents of tariffs argue that tariffs are an unfair tax on consumers and results in domestic manufacturers less competitive with little incentive to improve production processes.

How tariffs work

Modern Tariffs

The World Trade Organisation (WTO) is where nations negotiate and set the rules on international trade. The WTO deals with diverse matters from the harmonisation of product classifications to the administration of trade rules. Generally no WTO member may discriminate against another member when trading. This is known as most-favoured-nation (MFN) treatment, all WTO members should be given the same tariffs. There are exemptions to this.

The WTO state: “countries can set up a free trade agreement that applies only to goods traded within the group —   discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.”

Despite these rules, the WTO do not have any enforcement powers. They can investigate claims brought against sovereign nations for unfair tariff targeting and these findings are then published. If there is no remedial action undertaken, the WTO then allows retaliatory tariffs.  

The WTO are currently investigating the tariffs from the US & China

Issues with Tariffs

The US has increasingly attempted to influence global trade by placed placing tariffs related to the country of origin of a product. Through the Trade Act 1974, the US imposed 25 per cent additional tariffs on approximately $34bn of Chinese imports in June 2018. These have slowly ramped up and almost all goods from China imported to the US now attract a 25% tariff. This has created a large headache for product owners, it isn’t easy to build a new supply chain in less than a year. I wrote about this earlier in a previous post.

Ge-Shen is based in Malaysia where we maintain normal WTO trading tariffs with the US and have extensive experience with localising supply chains. Do get in touch with us to see if we can help you overcome problems associated with new or potential tariffs

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Ge-Shen Adds Liquid Silicon Rubber injection moulding process

With growing demand for liquid silicon rubber, especially in the medical, infant and baby care, electronics and industrial industry, Polyplas, a subsidiary of Ge-Shen has invested in Liquid Silicon Rubber (LSR) injection moulding capability and is ready to supply LSR products to its customers.

Why Liquid Silicon Rubber?

LSR injection molding provides consistent part quality and consistency as compared to other other elastomers and thermoplastics. It is able to achieve high precision, and if done well, is burr or flash free, direct from the mould.

Silicon rubber is tasteless and odorless, can be sterilized in a variety of methods and can be formulated to comply with FDA requirements. It is naturally resistant to bacteria growth, making it a perfect choice for medical devices and products.

It is durable, and can withstand extreme temperatures, fire resistant, water resistant and chemical resistant, making it very fit for industrial use. Its elongation, high tear and tensile strength, provides flexibility and durability and can be formulated to have hardness range of 5 to 80 Shore A.

 

Partners in mould making (or tooling)

While LSR is fairly new to us, we have various partners in the industry who has been producing LSR moulds (or tooling) for many years. The tooling they make can be of two types – open nozzles and shut-off nozzles. The choice of which to choose depends on the quality requirement and specific use. Our mould makers produces moulds which can guarantee burr or flash free finished products.

How we can help you

We are able to manufacture any of your LSR products. Whether it is to manufacture high volume and high mix of different parts, and from various industries. We are happy to receive orders for a variety of products including: bottle nipples, electronic products enclosure (for eg. external storage drive), seals and gaskets, valves, watch bands, medical face masks, Laryngeal masks etc.

With our partnership with various LSR mould makers, we will be able to assist you from tooling to mass production from our facility in Penang (including our clean room) within a short period of time and other facilities in Johor or Hanoi, on-demand.

 


Contact us now to know more about Liquid Silicon Rubber or tell us more about your mass production LSR requirement.

Medical Injection Moulding: 5 Things to Consider

Many injection moulding suppliers today have the ability to provide manufacturing services to the medical industry. But, is there more than just having injection moulding machines?

We have summarised 5 key things to consider when choosing a medical injection moulding supplier for your medical components and medical devices.

1. Environment

Depending on the product requirements, having suitable environment controls are important. Certain products are required to be manufactured in a clean room (like our Class-8 clean room), some in a controlled environment whilst others can be manufactured in any normal factory floor. It is essential to define this when searching for a medical injection moulding service service provider as cost and quality may vary.

Class 8 clean room provides dust free environment

2. Validation process

The IQ (installation qualification), OQ (operational qualification) and PQ (performance qualification) process basically ensures that the the medical injection moulding process meets the quality acceptance criteria for the product. Whilst not all medical device requires this validation process, it is important to specify any requirement to the supplier up-front. This is to ensure that they understand the requirements of the validation process and provide adequate attention to this while developing the manufacturing process.

3. Certification of the medical injection moulding partner

When considering suppliers, have a look at their quality systems. the most basic ISO 9001 certification should be mandatory to ensure that the supplier has an adequate Quality Management System. Depending on your requirements, medical devices that require FDA approval or more stringent quality requirements, ensure that they have ISO 13485 and are up to date. Not all medical injection moulding requires ISO 13485, therefore be sure to tell your medical injection moulding partner the requirements up front.

4. Suite of capabilities

For most medical device manufacturers, it is important to ensure that their vendors are robust enough to have most processes in-house. This applies as well to the medical injection moulding vendor. While engineering skill-sets, like the ability to carryout design for manufacturability (DFM), mold / tool making and project management is important, also ensure that they have ability to do secondary processes. This includes having processes like liquid silicon rubber moulding (LSR), printing, ultrasonic welding and assembly. The less outsourcing, the better to ensure processes and quality is controlled.

5. Data

We cannot stress enough the importance to have data. Whilst traceability is part and parcel of ISO 13485, having a Manufacturing Execution System (MES) helps the capturing of data in a more autonomous manner. Having a stable Enterprise Resource Planning (ERP), Document Management System (DMS) and data security policy and procedures will greatly help ensure digital security, traceability and storage of documents. Hence, choose a vendor who is willing to invest in these systems to ensure that your supply chain management can be digitalize in the future.

Medical injection moulding with us:

  • Our plant in Penang, Malaysia is a certified ISO 13485 company and has a Class 8 clean room along with a control room. We have manufactured in this plant for the medical industry for over 10 years. We currently produce plastics for various medical equipment and single-use devices.
  • Our plant in Johor, Malaysia has manufactured plastic enclosures for medical equipment for over 5 years.

Contact us now to understand better how we can help you with your medical components.

Trade uncertainty – Options for Manufacturers

For today’s global companies, geopolitical uncertainty has affected more than just price, but also investment, consumption, inventory and even the way companies must do business. With changing tariffs, free trade agreements, bans and retaliatory actions, how do you stay lean and cost competitive.

How should you deal with trade uncertainty? What can product owners do to diversify their risk in such circumstances? Here are 5 suggestions we have.

1. Have a backup country / location

Start exploring other countries as a second location to manufacture your products, whist another location might not be the most convenient or most cost economical, any supply shocks from trade uncertainty can be better weathered when you have a backup plan. If the country where your main manufacturing base were to come under unexpected tariffs, you could easily increase the load on a second location.

It often takes more than half a year to develop a manufacturing site or a vendor in a new country, so it pays off in the long term to start sooner. A lot of the work is done up front with qualification and testing being set out, so to increase volume later shouldn’t be difficult as long as you work with your suppliers.

2. Develop your supply chain

With the supply chain in China having grown to such breadth, it may be too easy to rely on a single location. You can work with an established contract manufacturer or supply chain consultants to tap into their existing vendors as they will have a pre-built network. This saves a significant amount of time in searching for vendors as finding a suitable fit between price, quality and delivery is a challenging approach.

Having a new location also doesn’t mean that you need to redevelop the entire supply chain. Countries in South East Asia can easily draw upon your existing supply chain to reduce the burden of sourcing and improve the speed at which you can establish a presence.

3. Understand trade rules

What HS code do your products come under, what is the percentage required for a change in country of origin? Which countries have free trade agreements which each other? How to deal with trade uncertainty? These are all important questions to ask before making inroads into a new location. Global companies often have multiple manufacturing sites to take advantage of different tariffs or free trade agreements. Having a CM with multiple sites can look to reap the rewards of multiple geographic locations without much of the legwork. Vietnam (http://ec.europa.eu/trade/policy/countries-and-regions/countries/vietnam/) is a signatory in a free trade agreement with the EU, so goods manufactured in Vietnam will have a significant cost advantage for European markets.

You might also be able to benefit from assembly in a different country as CKD/SKD can often change the HS codes. Experienced partners can help you navigate and also suggest opportunities for greater efficiencies.

4. Understand the differences

A period of change means the rules will be different, existing strategies may not work, old strategies may be worth revisiting and new ideas have a chance of taking off. Taking South-East Asia as an example, each country has its own language and culture to deal with. Malaysia is multicultural with some of the more widely spoken languages include English, Mandarin, Cantonese and Malay. Malaysia also has a good legal system based off British common law. Vietnam on the other hand is more homogenous with a legal system based off French Civil law and Communist ideology.

5. Don’t delay

Trade uncertainty is the key word, waiting for a clear sign is often too late. It pays to have the infrastructure set up so that you can seamlessly switch should the worse happen. When the worse does happen, you will be caught off-guard and have customs, regulatory and approval delays.


Contact us to see how we can help you

Management Discussion & Analysis 2018: A Summary

An extract of the MD&A for 2018. Full version can be found here

OVERVIEW

The financial performance of Ge-Shen Corporation Bhd (“GSCorp”) was less than satisfactory for the year ended 31 December 2018 with a 11% drop in revenue to RM202.35 million and a 58% drop in Profit After Tax to RM4.52 million. In terms of Earnings Before Interest, Tax, Depreciation, Amortisation and Forex (“EBITDAF”) – the measurement of normalised cash generation GSCorp managed to turn in RM20.60 million which at a drop of 35% is a slightly better outcome than the Profit After Tax numbers would have suggested. Over the past year the operating environment has progressively been more challenging with the US and China trade war, slowing global economies and shorter product life cycle all playing a role in creating a more challenging operating environment. The cost of doing business has also increased through higher electricity charges as well as employment costs as wages and other mandatory charges has increased over the past year.

DISCUSSION ON COSTS

The past year has seen some material increase in our cost of doing business such as that of employment costs as minimum wages were increased together with an increase in the levy on foreign workers. Electricity was another cost component that has increased. The unfortunate thing about these cost increases were that it came at a time of lower revenues and because of the already thin margins that manufacturers are operating under, it has a disproportionate effect on the profitability of the company.

Hence going forward in 2019 the Management is focusing on cost management and in making the operations more efficient and to generate less wastage. We will be committing more capital to factory renovations and floorspace relayout to improve operational efficiency as well as the introduction of more robotics into the manufacturing process. We will also align our business development efforts to securing more value adding jobs.

CAPITAL EXPENDITURE

The Management believes that top line growth is something that we must pursue as if we don’t grow our capabilities, we will drift further way from the requirements of our customers, rendering us irrelevant very fast. Hence in this phase of GSCorp’s development, it is about resourcing up for growth through additions to the physical capital stock (i.e. land, building and machinery), additions to capability and processes (clean room and robotics), enhancements to the support systems (Enterprise Resource Planning System (“ERP”) and Manufacturing Execution System (“MES”)), and a commitment to build more customer linkages through more active business development programmes. We believe that in the short term, the period of the most extensive capacity building is almost behind us.

HANOI

The most visible aspect of our capacity expansion can be seen from the completion of the new factory in Hanoi, Vietnam. While there was a delay in the commissioning of the factory until August of 2018 against the earlier expectation of May 2018, this was still nonetheless very judicious in terms of timing as the area around Hanoi has seen a huge increase in activities as Vietnam is seen as one of the places which will benefit most from a possible relocation of the global supply chain away from China. With a brand-new facility to showcase and capacity to sell into a market needing capacity, we are confident that this new plant will translate into an important asset of GSCorp in the coming years.

PENANG

We have completed an ISO Class-8 clean room. Our clean room is outfitted with several specialised moulding machines and ancillary equipment to support our move towards meeting the manufacturing capabilities for the medical industry.

JOHOR

For the metal plant, the completion (of the purchase of factory) is necessary in order to facilitate the renovation of the plant for a dedicated metal stamping facility for a customer in the industrial sector. This is a new customer with much promise of higher volume parts, and we expect mass production to start in April with the arrival of new machinery. As for the plastic facility in Johor, we are relaying out the facility for a better aligned factory with potential for more automation and better work flow.

REVENUE

Revenue experienced a dip for the whole year (2018) and the bulk of the revenue dip occurred in the second half of the year when global economies turned from the coordinated growth to a coordinated downturn quite swiftly. This downturn in global economies was further exacerbated by the trade war between China and the US and these two factors contributed to the slowdown in the revenues of GSCorp. Sectors such as consumer electronics was particularly impacted with orders from several customers dropping off from the third quarter onwards and industrial products sector was also similarly affected as well. This is due to slower sales of the final product and the effect of inventory adjustment as principals sought to reduce stock through a decrease in ordering from their manufacturing suppliers like GSCorp. In certain products, principals have discontinued the running of certain models totally. The path to rebuilding the revenues is through an active business development programme.

BUSINESS DEVELOPMENT

Throughout most of 2018, Management has implemented a more comprehensive business development programme in order to complement the investment in the physical infrastructure space in an effort to grow. We have worked very hard to widen our network of customers as well as diversity in the sector exposure.

The role of business development is not just limited to having several sales persons on the ground to pick up leads, follow up on proposals and then having the lowest price on the quotation. The process of vendor selection is usually a long and sometimes torturous process as the principals assess the vendor’s capabilities in both hard ware and also engineering capabilities which is then audited before the engagement moves on to discussion on a particular part or model. In some cases, the manufacturer must also help the customer in interpreting their ideas into a product which can be manufactured efficiently without compromising on the quality of the product.

Therefore, having the right people to be able to deliver the solutions to our customers is key to the business development initiative. We are pleased to write that there has been some success in the business development side as we have been active in bidding for projects in all of our manufacturing locations.

US AND CHINA TRADE WAR

This trade war and the accompanying narratives surrounding it, is increasingly seen as something more fundamental and long term, therefore from a business rationale approach, supply chains which have traditionally relied on the manufacturing of goods out of China for global consumers is now being reexamined. At a minimum, there is a growing urgency amongst brand owners and principals to have an alternative supply chain to counter the effects of the tariffs. To preempt further disruption in the future, procurement teams have been busy scouring South East Asia for quality and reliable manufacturers to provide an alternative to China based manufacturers. As a quality manufacturer in the South East Asia region, GSCorp has been a beneficiary of this increased activity, however we must caution that while there have been a lot of early engagement, substantive success has yet to be recorded. While the actualization of these potential may take some time, we can however count ourselves lucky in having made the right investment decision of investing into more manufacturing capability as well as the increased efforts in business development thereby enabling us to be an active participant at this stage.

CONCLUSION

GSCorp as a component supplier into the global supply chain needs to build scale in the business as scale is essential for us to be able to cover more customers in different segments in order to achieve a greater diversity in end customers, scale is also needed to be able to offer more specialist engineering-based solutions to our customers in order to build a longer lasting and stickier relationship. This scaling up encapsulates the building up of manufacturing capacity and capability. The need to scale up is one of the most important matrices on our basic philosophy as it not just a permissive factor in our ability to grow but also an ability to derisk the business through diversification.

 


About Ge-Shen Corporation Berhad 
Ge-Shen Corporation Berhad (www.gscorp.com.my) is a contract manufacturer that specializes in plastic injection moulding, sheet metal fabrication and assembly services in 3 locations across South East Asia. GSCORP has years of experience helping product owners bring their ideas to life. It currently serves customers from various industries including the consumer electronics, household products, industrial, medical, automotive and aerospace. Ge-Shen Corporation Berhad is listed on the main market of Bursa Malaysia Securities Berhad.

We welcome any enquiries for our services. Please do contact us here.

Demand Options, a subsidiary of Ge-Shen Corporation adds additional factory space to increase capacities in metal stamping

JOHOR BAHRU, MALAYSIA: Demand Options Sdn Bhd (www.dosb.com.my), a custom metal stamping and sheet metal fabrication company, located in Johor Bahru, Malaysia has announced that it has increased its factory space by approximately 4,910 square meter by acquiring an adjacent factory building which is currently unoccupied.

“With the expansion of factory space which is adjacent to our current site, we are now planning to double our metal stamping capacity from 20 stamping presses to approx 40 stamping presses ranging from 25 tonnes to 400tonnes. The ability to scale up quickly puts us in a very good position to leverage on the current global trade displacement as we are able to offer competitive metal components to our customers globally. With this expansion, we are ready to help our customers to strengthen their existing supply chain by having sufficient and readily available capacities.” – Demand Options Sdn Bhd

Demand Options, is a subsidiary of Ge-Shen Corporation Berhad, has manufactured customized metal stamping and metal fabrication since 1997. Included in Demand Options’ capability is tool & die fabrication, prototyping, secondary processes like spray painting, powder coating and assembly. Demand Options has experiences in fabricating and stamping parts from 0.1mm to 5.0mm thick in ferrous and non-ferrous metals.

Renovation works in the newly acquired site has started and the first machines is expected to be delivered late April 2019. This newly acquire site is directly adjacent to its current site, which has been owned and occupied by Demand Options for over 10 years. The acquisition is highly advantageous as it allows Demand Options to scale very quickly without much duplication in headcount or supporting processes and facilities. 


(Photo: Building on the left, the newly acquired site, whereas the building on the right is the existing site which Demand Options has occupied for over 10 years)

Demand Options looks to expand its customer base in America & Europe and welcomes any enquiries for its services.

About Ge-Shen Corporation Berhad
Ge-Shen Corporation Berhad (www.gscorp.com.my) is a contract manufacturer that specializes in plastic injection moulding, sheet metal fabrication and assembly services in 3 locations across South East Asia. GSCORP has years of experience helping product owners bring their ideas to life. It currently serves customers from various industries including the consumer electronics, household products, industrial, medical, automotive and aerospace. Ge-Shen Corporation Berhad is listed on the main market of Bursa Malaysia Securities Berhad.


Contact:
Group Business Development Team
info@gscorp.com.my

Polyplas adds an ISO Class-8 certified Clean Room for Injection Moulding

PENANG, MALAYSIA: Polyplas Sdn Bhd (www.polyplassb.com), a custom plastic injection moulding and assembly services company has announced that it has received certification for its ISO Class-8 (FED STD 209E – 100K) clean room for the purpose of injection moulding and related manufacturing services.

“We are pleased to announce that we have just completed an ISO Class-8 (FED STD 209E – 100K) clean room in our manufacturing facility in Penang, Malaysia. This clean room has been developed specifically for injection moulding and supporting processes such as assembly, laser marking, ultrasonic welding, etc. We decided to develop and certify this clean room to meet the increasing requirements from our customers in the medical, precision electronics, aerospace and biotech industry. We are always investing and searching for new ways to better serve our customers and we believe that this clean room will bring added value for them.”

– Polyplas Sdn Bhd

Polyplas, a wholly owned subsidiary of Ge-Shen Corporation Berhad, has manufactured plastic components for over 30 years and has over 10 years of experience in manufacturing medical components and disposables with ISO-13485 certification. Currently, Polyplas manufactures for some of the biggest names in the industry, equally able to meet the different requirements for medical devices and consumables. With the added certified Class-8 100K clean room, Polyplas believes that it is able to provide its customers parts with significantly reduced risk of contamination by dust and other particles.

This certified clean room complements the existing control facilities at Polyplas, it has been carefully designed to take advantage of the experience gained in many years of manufacturing. A closed loop heat exchange actively manages dissipation of waste heat from the new electric Arburg injection moulding machines which prevents any turbulent air currents due to fans and hence less dust. Furthermore, raw materials and packaging are separated from the clean room to ensure less risk of contaminants.  The clean room is also flexible enough to operate additional processes such as laser marking, ultrasonic welding, sub assembly and printing in one line. 

Polyplas looks to expand its customer base in the medical industry with the clean room certification and welcomes any new enquiries for its services.

About Ge-Shen Corporation Berhad

Ge-Shen Corporation Berhad (www.gscorp.com.my) is a contract manufacturer that specializes in plastic injection moulding, sheet metal fabrication and assembly services in 3 locations across South East Asia. GSCORP has years of experience helping product owners bring their ideas to life. It currently serves customers from various industries including the consumer electronics, household products, industrial, medical, automotive and aerospace.

Contact:
Group Business Development Team / Louis Lau, Executive Director
info@gscorp.com.my / louis@gscorp.com.my

 

Manufacturing in Malaysia

When someone says global manufacturing, most people would immediately think of China, maybe you might even think of Vietnam. Most people haven’t considered Malaysia as a manufacturing location despite how Malaysia is well positioned to take advantage of global supply chain. Let me give you 5 quick points on why you should consider manufacturing in Malaysia.

1. Malaysia has an established supply chain network

Malaysia has an established supply chain with global companies and strong local players. In fact companies such as Intel, opened their first manufacturing facilities in Malaysia in the 70s. The list has grown to include Robert Bosch, Clarion, Amphenol, B.Braun, Broadcom, Toshiba, Sony, Motorola, etc. The presence of these companies require material and resources which means the 2nd tier and 3rd tier vendors are well developed as a result this makes it easy to manufacture your product in Malaysia

2. LMW – Licensed Manufacturing Warehouse

We at Ge-Shen are a LMW – licenced manufacturing warehouse. This means that there are no tariffs placed on goods by the Malaysian government for goods related to manufacturing, in effect each of our factories are outside of Malaysia for custom purposes. Customs duty exemption is given to all raw materials and components used directly in the manufacturing process from the initial stage of manufacturing until the finished product is packed ready for export, easy!

3. Geography

Malaysia is well placed geographically. The straits of Malacca is one of the main global shipping routes. We are served by well established ports in Penang, Klang, Johor and we can even ship through Singapore. The proximity of Malaysia to China, Japan, South Korea and the rest of Asia also helps with sourcing and exporting finished goods.

4. English Speaking

Malaysia is a diverse country with many ethnic groups and languages, one of the upsides is that English is widely spoken as a business language. This means that we can communicate easily with you to get any issues resolved. Cutting out a layer of translation increases the ease of doing business.

5. Ease of doing business 

Malaysia ranks highly on the ease of doing business rankings as published by the World Bank http://www.doingbusiness.org/en/data/exploreeconomies/malaysia . Malaysia currently ranks at 15 across all economies in the world. Less red tape means it is easier to get things done, helping you with time to market.


Contact us to see how we can help you

Transfer Your New or Existing Molds to Us

We understand that sometimes our customer have molds with other vendors or have already fabricated the molds with moldmakers and would like to find a partner to fabricate or mass produce your products. As a custom manufacturer, we accept mold transfer from various locations. As a experienced component manufacturer, we have assisted our customers with various mold transfer or project transfer projects. We work closely with our customers and become an extension of your engineering team, regardless whether you are a Original Equipment Manufacturer (OEM), Original Design Manufacturer (ODM), Contract Manufacturer (CM), Electronic Manufacturing Service (EMS) or a product owner. We will work closely with your team and establish detailed plans to ensure a seamless transition. So, if you are planning to outsource your in-house molding operations because you lack capacity, or if you need us to troubleshoot and solve an existing problem which you cannot solve, our experience can help you to speed-to-market. We can provide our engineering and tooling expertise to modify, repair or improve existing molds to meet your product requirements and ensure smooth delivery of products during mass-production.  
Have questions about how Ge-Shen can help with your mold transfer project? Contact us today to learn how we can help.

Design for Manufacturing (DFM)

Our customers find that getting our involvement during design stage promotes the manufacturability of the product and a more robust design is often the result. They also find that this collaborative approach is one of the best ways to improve engineering productivity and time-to-market because it avoids expensive, time-consuming downstream changes.



Our experience shows that decisions made during the design phase of a project determine 70%-80% of the cost of a new product. More importantly, decisions made in the first stages of a product design could determine the vast majority of the product’s cost, quality and manufacturability. We believe that by our involvement in your product’s DFM, we can assist you to ensure your product’s success and profitability.

With our DFM expertise, in-house tooling and the ability to design, we can help our customers:
  • Verify products and processes
  • Avoid unnecessarily tight tolerances
  • Design tools with easy mouldability, maintenance and consistent quality
  • Evaluate use of alternative materials
  • For Plastics, Mold Flow simulation analysis for a utmost mouldability solutions
  • Prototyping service to cater soft and hard tools to facilitate initial R&D requirements
As a manufacturer, we understand well the challenges of manufacturing. So, whether you are a Original Equipment Manufacturer (OEM), Original Design Manufacturer (ODM), Contract Manufacturer (CM), Electronic Manufacturing Service (EMS) or a product owner, we believe that we can help you reduce issues by going through the DFM process by involving us in the early stage of your project.

Our team in Hanoi, Vietnam, Penang, or Johor, Malaysia are capable in the DFM process. With our involvement during the design process, we can apply our more than 30 years of Design For Manufacturing expertise and experience to help ensure that your new products can be manufactured in a cost-effective manner. Our team can provide a DFM report for your plastic injection moulding, sheet metal fabrication and metal stamping components.
Have questions about how Ge-Shen can help with the smooth delivery of products during mass-production? Contact us today to learn how we can help.