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 source the right product at the lowest price to maximize profit, the focus often shifts from how it’s made to how much it costs.

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 of this matter: Europe has historically been a leader in the production of combustion cars, but by outsourcing much of the production process to lower-cost countries (such as China), it has also surrendered its engineering and manufacturing know-how.

Asia, 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 gift to lead innovation in the sector.

Is this phenomenon reprehensible? Not necessarily, in my opinion. Imitation and repetition are in fact great 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 has chosen a different path, embracing vertical integration and keeping tooling in-house. While this approach is neither the most common nor the cheapest, we firmly believe that focusing on the how is essential to delivering exceptional service. It’s not just about modifying a part or mechanism—it’s about ensuring that every stage of production, from tooling to final delivery, is efficient and controlled, without sacrificing quality.

At STAC Industry, we continue to manufacture in Europe—not necessarily at the lowest cost, but with the best service and the highest quality. We adapt to our customers’ needs, create value within our community, and prioritize environmental responsibility. Despite the challenges and trends of globalization, we believe that by maintaining control over our processes and the expertise behind them, we are building a solid and shared future for everyone.