Castec Engages NAPS in Mexico and China and realizes the Best of Both Worlds in Integrated Outsourced Administration

Castec, a NAPS partner client since 2004, is a manufacturer of high-end window shades. Their product line includes custom fabric treatments, natural woven shades and solar solutions for overhead windows. Meeting customer demands on a timely basis requires just-in-time fabrication and flawless shipping. Craftsmanship quality is a company byword. For Castec, skyrocketing workman's compensation costs in California were a compelling reason to consider near-shoring their manufacturing operations. Before engaging NAPS, Castec attempted to merge with a Mexican subcontractor. Even though that relationship proved unsuccessful, Castec realized the value of manufacturing in Mexico. In the four years since Castec joined NAPS in Mexico, the operations have expanded from 25 employees in 25,000 square feet to 200 employees in 75,000 square feet, all without a hitch. As operations have stabilized, employee turnover rates continue to trend downward and US managers have an easy time supporting their Tijuana workforce. This impressive growth has been accomplished with:

• absolutely NO productivity loses
• absolutely NO logistics-attributed loses,
• absolutely NO quality loses, and
• exceptionally low turnover in core line employee positions.

Early in 2006 Castec approached NAPS about locating operations in China. They were interested in accessing a lower-cost workforce that could support a lower price point / higher volume market and give them access to less costly raw materials. In 2007 Castec and NAPS established their China operations and have been successfully manufacturing products at half the Mexican labor cost, with no productivity or quality losses.