The value of keeping the tooling department in-house: A risky bet or a smart strategy?

In a world where the ultimate goal is to get the right product at the lowest possible price in order to sell it and make the most profit, the “how” is often forgotten in favour of the “how much”.

This approach leads many companies to outsource key processes such as tooling and product manufacturing, which raises a real question: Does it make sense to remove in-house tooling from the production process?

In many countries, especially in Europe, companies have outsourced the production of key components, thereby transferring knowledge accumulated over decades. The automotive industry is a clear example: Europe has historically been a leader in the production of combustion cars, but by outsourcing much of the production process – except the engine – to lower-cost countries (such as China), it has also ceded its engineering and manufacturing know-how.

Asia, on the other hand, has not only absorbed all this knowledge, but combined it with its own specialisation in electronics to develop more technologically advanced vehicles. So, while Europe remains trapped in its traditional model, other regions have used this unintended gift to lead innovation in the sector.

Is this a reprehensible phenomenon? Not necessarily, in my opinion. Imitation and repetition are in fact the main sources of knowledge acquisition. This process of technology and knowledge transfer can therefore be a valid form of evolution, especially when it comes to improving efficiency and costs.

In this context, STAC decided to take a different path, opting for vertical integration and keeping the tooling in-house. Although this approach is neither the most common nor the cheapest, we strongly believe in the importance of focusing on the ‘how’ to provide a truly satisfactory service to our customers. It is not just about modifying a part or mechanism, but ensuring that the entire production process, from tooling to final delivery, is carried out in an efficient and controlled manner, without sacrificing quality.

At STAC Industry, we want to continue to manufacture in Europe, perhaps not at the lowest cost, but with the best service and the highest quality. We adapt to the needs of our customers, create wealth in our community and we take care of the environment. Despite the difficulties and globalisation trends, we believe that by maintaining control of our processes and the knowledge that goes with them, we are building a solid and shared future for all.