As reported by Crain’s Detroit Business in their article “Aerostar takes off: Mighty Michigan manufacturer expands in India”:
Beginning as a small machining company in Michigan, Aerostar is strategically expanding its global network while reinforcing and solidifying its presence in Michigan. The company is experiencing impressive growth and positioning itself as a global supplier of high-precision engineering components to OEMs and Tier1s.
Aerostar’s story begins deeply rooted in Michigan, a state with a rich history in manufacturing excellence. The company leverages the experienced manufacturing workforce at its disposal, employs a talented leadership team and benefits from the state’s robust infrastructure. This local foundation provides a solid springboard for Aerostar’s global ambitions.
The company operates as a one-stop shop for complex engineered components, catering to a diverse clientele across industries like automotive, electric vehicle, heavy truck, agriculture, aerospace, HVAC, telecommunications, and power generation, amongst many others. The company recently began producing fully assembled battery trays for the robust electric bus and truck industry. There is no limit to its engineering and manufacturing capabilities, from supplying components for engines, transmissions and chassis for the automotive industry to large castings weighing over 10,000 pounds each for industrial-scale compressors. Its precision machined castings and forgings, gears, and stamped and fabricated assemblies are used in pumps, brake systems, air transfer sub-assemblies, transmissions and sub-assemblies for ICE engines for all mobility vehicles. Aerostar also produces critical safety components for many industrial verticals including automotive, EVs, agriculture and elevators; currently producing braking equipment that grips the elevation cables in the event of a malfunction.
Aerostar’s domestic manufacturing facilities coupled with a global network of partner manufacturing facilities, strategically placed in India and other countries, allow it to offer competitive pricing, reduced lead times and a wider range of manufacturing capabilities. This approach embraces the “increasing interconnectedness” in global manufacturing.
Aerostar recognizes the value of its Michigan base, and recent investments in the state highlight this commitment. In 2023, Aerostar announced a brand new 55,000-square-foot facility in Romulus, Michigan. This expansion, with a total capital investment of $8.6 million, is expected to create many new jobs. Governor Gretchen Whitmer hailed the project as a “win for southeast Michigan and for the entire state”.
Senior Vice President, Robert Johnson who has been with the company since 2008 has seen Aerostar’s exponential growth firsthand. “Aerostar Manufacturing continues to grow, and we are excited to announce the expansion of our global footprint, a significant step towards enhancing our capability to meet the growing demands of our customers,” he said. This expansion includes new state-of-the-art manufacturing facilities to ensure seamless operations.
To optimize its supply chain, Aerostar has continued to develop its advanced Just-In-Time (JIT) warehousing and inventory management systems in Romulus. These innovations not only streamline their processes but also enhance Aerostar’s ability to deliver precision products with efficiency. Its commitment to excellence is further demonstrated by the development of a robust leadership team and the expansion of its Account and Program Management Teams. The Aerostar team has developed very robust processes that are custom-designed for its needs. These strategic enhancements ensure that Aerostar maintains the highest standards of quality and program management, providing unparalleled service to its customers.
Merging globally with local manufacturing and services, Aerostar’s success hinges on strategically leveraging each aspect to maximize its competitive edge. Aerostar’s international facilities offer cost-competitive solutions to their clients. This is particularly relevant in today’s globalized market, where price is often a key factor in purchasing decisions. Additionally, having manufacturing plants and warehouses strategically located around the world reduces lead times for overseas clients.
The key to Aerostar’s success lies in the way its global network and Michigan base operate in tandem. The international facilities complement the Michigan operations, not replace them. This symbiotic relationship allows Aerostar to offer a wider range of services, cater to a diverse clientele, and maintain a high level of quality and innovation. While Aerostar always strives to provide its US customers with competitive pricing – whether it manufactures a part in its plant in Michigan or a partner facility in India – its customers always interact with its US-based sales, engineering and quality professionals. This focus on innovation positions Aerostar as the leader in complex engineered components. As the manufacturing landscape evolves, Aerostar’s ability to adapt and leverage its strengths will undoubtedly propel it toward continued success.
Aerostar’s CEO, Lalit Goel sees India as a great manufacturing partner for the US companies as businesses look to diversify their sourcing of engineering components away from China.
Goel has been instrumental in building its strategy toward expanding in India. He came to the US from India in 1987 as a master’s student and stayed to live the American dream.
“Our growing manufacturing footprint in India and India’s emergence as a ‘China Plus One’ option presents a compelling opportunity for US companies to diversify their supply chains. However, we remain dedicated to our domestic footprint as well,” said Goel.
Aerostar’s commitment to quality and customer satisfaction has fueled a remarkable period of growth. In the past four years, it has more than doubled in sales, a testament to the trust and reliance its customers have placed on it. “This achievement wouldn’t be possible without a dedication to exceeding expectations, lowering costs and building long-lasting partnerships. We’re grateful for the opportunity to serve our customers and look forward to continuing this journey of mutual success,” said Goel.
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Article and photo with all rights reserved, courtesy of Crain’s Detroit Business —- https://www.crainsdetroit.com/
