Manufacturing the RugGear RG540 Industrial Phone for Mission-Critical Communications
The Challenge
RugGear, a leading cell phone and technology manufacturer with roots in Germany and China, has been known for years for producing and distributing high-quality communication devices to customers worldwide, including the USA. Historically, the company relied on completed goods being exported from its facilities in China. However, changing market conditions and customer demands prompted RugGear to explore new strategies. A portion of its customer base began pushing for final assembly of products within the USA to address multiple critical objectives:
Cost Reduction for Tariffs: The tariffs on imported goods from China significantly impacted pricing, leading RugGear to seek solutions that would mitigate these expenses.
US Manufacturing Preference: Increasingly, customers valued products that had U.S.-based manufacturing, both for perceived quality and supporting domestic production.
Enhanced Quality Control: Assembling products in the USA allowed RugGear to maintain stringent quality practices tailored to their clients’ needs.
Domestic Programming: U.S.-based assembly provided more flexibility in incorporating custom software configurations aligned with specific customer requirements.
Supply Chain Risk Mitigation: Diversifying manufacturing locations helped reduce the risks associated with a concentrated supply chain, bolstering reliability for end customers.
To achieve these goals, RugGear sought a partner that could manage the complexities of U.S.-based assembly of an industrial phone while ensuring the same high standards and efficiency their global operations were known for. Hatch stepped in to help meet these objectives with their advanced manufacturing capabilities and strategic insights.
Designing for US Manufacturing
Hatch began by conducting a comprehensive analysis of the manufacturing process, which they termed "tariff engineering." This ensured the product’s Harmonized System (HS) code classification was accurate for customs and regulatory compliance, streamlining the import process and minimizing duties. This strategic approach allowed Hatch to craft an efficient manufacturing plan for the industrial phone tailored to RugGear’s financial and operational needs.
Manufacturing the Industrial Phone
Hatch quickly replicated a segment of RugGear’s original production line in the US, establishing a manufacturing environment that mirrored proven overseas processes. This rapid setup maintained continuity and quality, ensuring a seamless transition to US-based assembly. Additionally, Hatch implemented optimizations specific to the US manufacturing environment, improving productivity and maintaining high standards.
These efforts culminated in the efficient and high-quality production of the RugGear RG540 industrial smartphone, a device designed for mission-critical communications and industrial environments.
The Result
Hatch’s agile and strategic approach allowed RugGear to meet its goal of US assembly, positioning the RG540 as a competitive, domestically produced solution. This collaboration underscores Hatch’s capability as a responsive and skilled US manufacturing partner, adept at adapting complex processes to meet the specialized needs of clients.
