The industry has been practicing injection molding for at least 77 years. In all that time the moldmakers and molders have been negligent in not going to the trouble of convincing OEMs of the importance of investing in good quality injection molds. This has been a self-defeating practice that has prevented injection molders from producing parts of the highest possible quality and the lowest possible cost.

Original Equipment Manufacturers (OEMs) have to be good at what they do to survive in the global economy. To achieve this many demand that their suppliers have state-of-the-art molding equipment and procedures. OEMs can purchase some of the world's best plastic materials from American manufacturers. When it comes to buying molds, OEMs have shown a preference for low-cost over high quality. This is counterproductive, as world-class molding requires a state-of-the-art mold.

One reason for this failing is that OEMs don't invest in molding equipment or material manufacturing plants; their suppliers do. Molds, on the other hand, require an investment by the OEM. This is hard to accept by buyers who only want molded parts and don't actually want a mold. Over the years large OEMs such as the car companies and others have attempted to coerce their suppliers into paying for their molds. Generally speaking, these efforts have not been successful.

The industry in the U.S. is experiencing an exodus of OEMs relocating their manufacturing facilities in countries with fewer regulations, lower labor rates, and lower corporate taxes. Many other U.S.-based OEMs are purchasing their molds offshore. This practice has produced mixed results.

Good quality, state-of-the-art molds can be purchased in Los Angeles, CA; Phoenix, AZ; Chicago, IL; Cleveland, OH; Newark, NJ; and elsewhere. It is also possible to buy just barely good-enough molds from the lowest bidder in the same cities. This is as it should be. There is a need for different kinds of molds at different costs. The problem with this situation is that OEMs, who persist in buying from the lowest bidder in Chicago, will also buy from the lowest bidder in China. It is these under-priced molds that result in the horror stories we hear and read about.

It is possible to purchase good quality molds in Asia, but only if you know what you are doing and if you can resist the temptation to buy from the lowest bidder.

I know I am being hard on OEMs here, but injection molders are also contributing to the problems. In most instances an OEM will request quotations for a mold and some quantities of molded parts. This molder's cost estimators calculate the cost of the molded parts based on some assumptions about the kind of mold to be used. The molder will also request tooling cost quotations from one or more moldmakers. While analyzing these quotations the molder will tend to select the lowest bid. He does this because he knows that his OEM customer will be overly influenced by the mold cost if it is only slightly higher than that quoted by his competitors.     

An alternative to this undesirable situation is when the OEM and supplier have a long-term relationship. In those instances the advantages of a higher-quality, more-costly mold can be discussed before the molder's proposal is submitted. Regrettably, the rushed way we do business today discourages discussions of that type.

Another way around this problem is to submit two mold costs. One might be a very basic mold at a low cost, with the second for a faster running, state-of-the-art mold with a correspondingly higher cost. Another approach would be to quote a low-cost Asian-built mold and a better quality, domestically produced mold at a slightly higher cost. Increasing the number of cavities is another possibility. In each case the molder's proposal likely would show that the higher-cost molds would result in a lower molded part cost. The OEM can then do the math and make a better informed decision.

This situation is very well covered by an old adage that is still true today. "You can pay a moldmaker more, once, or you can pay your molder more for every part you buy." The decision is up to you.

About the author: In this recurring column, Glenn Beall of Glenn Beall Plastics Ltd. (Lib­erty­ville, IL) shares his special perspective on issues important to design engineers and the molding industry. You can reach him at [email protected].