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Big Changes at CantoUSA

Stage Directions • Industry News • January 6, 2021

2020 saw a lot of changes for every company in the entertainment industry, and CantoUSA was no exception. The government tariffs on key components in the company’s supply chain as well as the coronavirus pandemic have given rise for them to change the way they manufacture their products. The company realized in 2019 that the tariff challenges along with its supplier and contract manufactures needed to change and change quickly.

In the past, CantoUSA has relied on outside contractors and manufacturers for key components for many of its products. Unfortunately, many suppliers did not forecast the impact that the tariffs would do when they went into effect, resulting in the disruption of the company’s supply chain and delivery schedules. The pandemic has also caused further disruptions that no one could have imagined. Due to this, lead times on its products in production were at risk of being extended as shipping from its suppliers went from 90 days to anywhere between 120-180 days. Taking this as a chance to secure their own manufacturing process they wanted to expand and bring all essential components in-house.

CantoUSA worked with ASM, Heller Industries, and PillarHouse, to name a few, to begin their own electronic driver setup. Through these companies, they purchased a driver board printing machine, pick & place machine, and selective soldering equipment. After lengthy setup, testing, and training they were completing boards by August and the first official runs of drivers for equipment in early September. The company can now produce components on-demand and scale up or down its production depending on specific needs. They’ve also secured direct access to component vendors allowing them to by-pass normal supply chain suppliers to ensure that they always have available stock.

“This has been a big change for us here at CantoUSA,” said John Luhrs, General Manager. “Now we have the ability to control all aspects of our manufacturing process. This is going to improve our production, increase quality control, and decrease lead times allowing us to pass these efficiencies along to our customers.”

Further information from Canto USA: https://cantousa.com/

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