Fresnillo, Mexico
Allowed Customer to Achieve Additional $50M/yr of Revenue
Customer Need
Customer was losing market share due to lead times exceeding 52 weeks and needed to develop a parallel (second) source to their own internal production for 1,000+ hp AC induction motors. Demand required Rockit Motors to be in production within 4 months with a new manufacturing line. Customer’s in-house solution would take up to 24 months to implement.
This was a new Customer and new product with an extremely aggressive launch timeline. Contract signed September 14 with first deliveries required January 2. PPAP requirements, first unit test bench qualification and DMV certification all required prior to production start. Target price required Mexico production.
Rockit Motors Solution
Rockit Motors reconfigured the existing Mexico facility and invested $2M in capex for new capabilities.
- Leveraged in-house engineering team to design, build and commission custom tooling to reduce lead time and cost.
- Hired Customer retirees and seconded current Customer staff with product technical and tribal knowledge to support on the ground in Mexico for several months.
- Put a performance guarantee in place to secure the execution for the Customer.
- Used Customer’s existing supply chain for long-lead parts.
Customer &
Rockit Motors Success
Hit January 2 production start date with 100% OTD and quality. Generated Customer an estimated $50M of additional revenue in the first year. In subsequent years, ramped up to 2x the initial forecast volumes. Won Customer’s “Emerging Supplier” award and was awarded additional contracts worth over $100M.
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