Original equipment manufacturers (OEMs) must remain competitive and profitable while facing ever-increasing challenges from global competition and disruptive innovation, including:
- Reduced or tight budgets
- Fluctuating raw material costs
- Increased competition
- Changing technology and global standards
Striking a balance between costs and innovation is a challenge for the OEM, often resulting in limits on engineering resources. The most successful OEMs often develop sophisticated methodologies to discern the difference in invoice cost and actual design or installed cost. Whether it’s a form fill and seal application, or simply providing an auto changeover solution, there is a balance to be found. While many electrical distributors advertise OEM services, finding one that actually understands your challenges can be very difficult.