Cost reduction leads to price cuts

Universal Instruments Corp has embarked on a global cost reduction initiative designed to set new product pricing standards in the assembly industry.

Universal Instruments Corp has embarked on a global cost reduction initiative designed to set new product pricing standards in the assembly industry.

The company is implementing a price reduction strategy across the board for its surface-mount products and standardising global pricing.

This aggressive move is facilitated by the corporation's strategy of cost reduction in every part of its operation and driven by the stated goal of becoming the number-one global solutions supplier in the assembly industry with the lowest costs and highest earnings growth.

Key to the new pricing structure is the policy to pass on the dividends of cost reductions Universal has secured on four fronts: new manufacturing operations in China coming online; globalisation of the supply chain; driving costs out of the US supply base; and operational consolidation into state-of-the-art premises in Greater Binghamton, NY.

Aided by these four initiatives the corporation also returned to profitability in Q1 2003 with continuation into Q2.

In addition, design engineers have attacked cost at the outset of recent development projects - the fruits of these labours being evident in Universal's new mid-range AdVantis products.

"It is not just a case of reducing prices.

Anyone can do that", points out Ian McEvoy, President of Universal Instruments.

"Our stated goal is to be the number one low-cost equipment supplier in the industry, offering the best customer value while securing profitability and earnings growth to sustain our expansion plans.

In everything we do, we aim to reduce costs, without impacting quality", he adds.

McEvoy confirms that the cost reduction strategy remains on target and that this pricing initiative is just the first of many tangible benefits that the corporation will deliver.

"Yes, the market downturn forces us, and our competitors, to scrutinise the way we manufacture and sell.

We took the path of cost improvement and now that this is paying back, we are able to provide a lower cost solution", he explains, adding: "That means we can counter the paradigm that Universal Instruments is a high priced supplier.

Anyone who doesn't get the message will miss out on the most competitive range of best-in-class products the industry has ever seen".

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