Outdoor Power Equipment Steel Chassis
Stamping & welded assembly — 42% landed cost savings, Section 301 tariffs eliminated
Section 301 Tariff Impact — Before Migration
This client was paying 25% Section 301 tariffs on Chinese-origin steel fabrications (HTS Chapter 73). On $1.1M annual import value, that was $275,000/year in pure tariff cost — on top of an already uncompetitive unit price. Vietnam is not subject to Section 301 tariffs.
The Challenge
A U.S. manufacturer of commercial outdoor power equipment was sourcing welded steel chassis assemblies from a single factory in Guangdong, China. The chassis — a complex multi-part weldment in 2.5mm and 3mm SPCC steel — was subject to 25% Section 301 tariffs under HTS Chapter 73. Their landed cost per unit had climbed to $218, up from $165 three years prior, entirely due to tariff escalation.
Annual volume was approximately 5,500 units. The procurement team needed to qualify a new supply source fast — ideally before the next tariff escalation cycle — without disrupting their existing production schedule or accepting quality regression.
Why Vietnam?
Vietnam's steel fabrication sector has expanded significantly, with many factories running Trumpf laser cutters, progressive-die stamping presses up to 1,000 tonnes, and robotic MIG welding cells. Our network includes over 30 factories specializing in sheet metal stamping and structural welded assemblies — all with Dolphin audit scores on file.
1. Drawing Package Review & Process Breakdown
The chassis assembly comprised 11 individual stamped components welded into a single structural frame, plus powder coat finish and hardware assembly. Our Vietnam engineering team reviewed the full drawing package and flagged the key process requirements:
- • Material: SPCC/SPHC steel, 2.5mm and 3.0mm gauge — widely available in Vietnam from POSCO and local steel distributors
- • Stamping: Blanking, forming, and piercing — 7 progressive-die parts, 4 single-hit parts
- • Welding: MIG, 18 weld joints, including 4 structural fillet welds with AWS D1.1 requirements
- • Finish: Epoxy powder coat, RAL 7016 anthracite grey, 60–80 μm DFT
- • Assembly: 6 fastener locations, M8 & M10 inserts, final dimensional check to ±1.0 mm overall
We identified two factories in our audited network capable of handling the full scope in-house — stamping, welding, and powder coat — to minimize handoffs and freight between sub-suppliers.
2. Factory Audit & Qualification
Our on-ground team conducted Dolphin audits at both shortlisted facilities within two weeks of project kick-off. Audit scope included:
- • Press room: Aida 800T and 630T progressive die presses with servo control — ideal for the 3mm SPCC forming requirements
- • Welding area: 8 Lincoln Electric robotic MIG cells + manual backup stations; certified welders to AWS D1.1
- • Powder coat line: 5-stage pre-treatment (zinc phosphate), vertical conveyor, cure oven capacity 200 parts/shift
- • QC: CMM (Brown & Sharpe), weld inspection via VT and magnetic particle testing, coating thickness gauge per batch
- • Certifications: ISO 9001:2015, ISO 14001 environmental — verified on-site
Factory A scored 88/100 on our QCLDM Dolphin audit. Factory B scored 81/100. We recommended Factory A as primary and Factory B as qualified backup.
3. Tooling & Sample Production
Progressive dies for the 7 stamped components were designed and built in 8 weeks at the factory's in-house toolroom (10 CNC machining centers dedicated to tool fabrication). We coordinated:
- • Die tryout with 3D scan comparison against CAD — all 7 components within profile tolerance on first tryout
- • Weld fixture fabrication — 3 fixture sets for the 3 main sub-weldments, validated against the assembly drawing
- • First article: 5 complete chassis assemblies fully inspected by our QC team before shipment
All 5 first-article units passed dimensional inspection, weld visual inspection, and coating adhesion test (cross-cut per ISO 2409, rating 0 — best possible). Customer approved on first submission.
4. Cost Breakdown — Before vs. After
| Cost Element | China (Before) | Vietnam (After) | Saving |
|---|---|---|---|
| Factory Unit Price (FOB) | $148 | $108 | −$40 |
| Section 301 Tariff (25%) | $37 | $0 | −$37 |
| Ocean Freight (per unit) | $18 | $19 | +$1 |
| Customs Clearance | $15 | $14 | −$1 |
| Landed Cost / Unit | $218 | $141 | −$77 (42%) |
Est. based on 5,500 unit/year volume. Freight rates approximate; vary by load and season.
5. Production & Ongoing Oversight
Production launched on schedule. Our Vietnam team conducts pre-shipment inspection on every container: 100% dimensional check on 10% sample, weld visual inspection per AWS D1.1, coating DFT measurement, and photo documentation of each shipment. Monthly factory visits track production velocity and tooling condition. After 8 months of production, the client has not issued a single quality rejection on this chassis program.