Fixed prices and firm delivery windows make planning ahead particularly important in buying aerospace materials for the coming years. As a leading provider of aerospace aluminum extrusions company, New Source Corporation can offer firm fixed pricing for certain parts and programs as far out as 2030, for example.
“There is an inflationary clause if anything extreme were to happen. Otherwise, we can secure prices for a long period,” said Jamie Barron, Vice President of New Source Corporation. “Wouldn’t it make sense to lock in the price now, given the uncertain market that we are in?”
Due to market uncertainty, New Source Corporation can add value to customers by providing firm fixed pricing (FFP) with mutual communication and collaboration through custom aluminum extrusion. New Source Corporation works closely with its suppliers and customers so that it can lock in business and savings for the long term. “We can only help them as much as they allow us to. They need to communicate with us and tell us exactly what programs they are working on and what parts they support,” Barron said.
Looking ahead
Customers benefit most when they plan their buying with help from New Source Corporation. Ordering ahead lets a customer lock in its materials sooner, which helps them reduce costs and achieve goals. As of the beginning of June, New Source Corporation can offer 28 week lead times for new mill runs through their various partnerships with the manufacturers. In some cases with larger custom aluminum extrusion parts, there is capacity for a 16 week lead time.
When New Source Corporation knows what defense programs a customer is working on, for example, it can help them forecast what parts they will need and when—and assure that they have the right material, at the right price at the right time. Additionally, discussing the build rates of certain programs can help determine the forecast for those program needs.
“New Source Corporation’s projected growth shows an increase in market share and allocation. We also expect growth on our end and plan to increase our allocation with our suppliers every year. So, with both our customer base and allocation growing, and orders being filled on a first-come, first-served basis, it is advantageous for our customers to order now,” Barron said.
New Source Corporation can also help customers meet unexpected needs. “As a true stocking distributor, we provide a certain amount of buffer and safety. We try to keep at least several months of excess inventory on the shelf so that we can be prepared for repairs or anything else that customers may not anticipate,” Barron said.
Managing inventory
Customers can also overcome demand planning and supply chain challenges by placing their orders now to take advantage of New Source Corporation’s custom aluminum extrusion stock. With the material already available in the Warehouse, the material can be shipped to fit the customer’s need dates. Thus, as an aircraft extrusion company with vendor-managed inventory, New Source Corporation can offer customers lower prices over the long term by holding the price at the time of purchase from established mills.
New Source Corporation has one of the largest inventories of aluminum extruded shapes, tubing, and other high-performance alloys in the country and is a leading aluminum extrusion company. Contact us today to learn how we can help you get the right pieces for the right price at the right time, every time.