TEXAS CONTRACT MANUFACTURING GROUP
https://www.managingmfg.com/texas-contract-manufacturing-group
In late 2014, a quiet ripple formed in the U.S. contract manufacturing sector with the emergence of the Texas Contract Manufacturing Group (“TCMG”).It signaled a shift in how manufacturing services could be consolidated and optimized.
At the heart of this transformation was a bold mission to consolidate contract manufacturers nationwide into a vertically integrated network. This vision has materialized into a consortium of the current five well-established companies offering unique manufacturing services and solutions and serving overlapping customer end markets. This strategic alignment established TCMG as a one-stop shop for all your precision machining, metal fabrication, and assembly needs.
“We focus on economies of scale, with each TCMG subsidiary complementing the others in terms of the ability for cross-selling, leveraging capabilities and capacity, operational expertise, and a consolidation of corporate and back-office functions to streamline the businesses to better serve our customers as a best-in-class CM,” says Matt Mayfield, President. “Collectively, we bring hundreds of years of manufacturing experience as a solutions provider and value-added partner.”
This collaborative ethos has been central to TCMG’s rapid growth and industry influence. With the corporate headquarters strategically located in Austin, TCMG serves both East and West Coast clients and everyone in between--benefitting from the city’s growing reputation as a technology hub with a skilled talent pool. As TCMG continues to expand, it has strengthened its business.
As TCMG continues to expand, it has strengthened its business development efforts. TCMG’s growth is driven by an acquisition-focused model and the backing of Camwood Group, a family office with deep expertise in the contract manufacturing and industrials sector. Being part of the portfolio offers TCMG significant benefits, including financial acumen, strategic focus, industry insights and resources that facilitate efficient transaction structuring with families and founders that position all stakeholders for long-term success post-closing.
Without the constraints of rigid exit timelines or the traditionally constraining mandate to put capital towork, TCMG enjoys a flexible, long-term, patient approach to growth. This in turn enables it to pursue opportunities at its own pace, leveraging advanced technologies and maintaining stringent quality standards to deliver exceptional contract manufacturing services while executed on the long-term growth strategy.
NAVIGATING SUPPLY CHAIN CHALLENGES
When the pandemic disrupted global supply chains, businesses worldwide faced a stark reality–reliance on multiple overseas suppliers is a risky and costly endeavor. To cut expenses, many turned to outsourcing labor and materials overseas—a strategy effective for high-volume, low-cost parts, but fraught with challenges for complex, highly-engineered, precision machined components. Quality control issues became commonplace, leading to reworks and costly interventions. The fragility of this approach was laid bare, prompting a search for more resilient solutions as the reshoring push accelerates heading into 2025.
TCMG provides an advantage as an all-American manufacturing solutions provider with a comprehensive network of facilities and capabilities across the United States. Its current five subsidiaries provide collaboration, expanded manufacturing capacity and broad geographic coverage. When undertaking large-scale projects approaching capacity limits, the sister companies collaborate to optimize load planning and expand capacity. They focus on best practices and optimize resources to operate as extensions of customers’ engineering and purchasing teams.
“By combining the diverse capabilities of our subsidiaries under common ownership, we help our customers reduce logistical costs and shorten lead times, avoiding needing services from multiple vendors orlower-cost, less reliable options abroad,” says James Hemphill, Bay Area Regional General Manager.
Collectively, these subsidiaries serve a wide array ofindustries.
TCMG has four core pillars in which it primarily focuses. The company manufactures mission-critical components for OEMs in the aerospace and defense sectors, including commercial aircraft, satellites, satellite communications, and defense systems. It also supplies components for life-saving medical devices and equipment. In the power generation and general industrial sectors, the group supports renewable energy, turbines, and industrial equipment manufacturers by delivering solutions that power essential technologies and machinery. Finally, TCMG manufactures precision components for semiconductor capital equipment
“We have implemented a strategy that ensures fast turnaround times on quotes. Depending on the project’s complexity, quotes are provided within one or two hours or, for more intricate parts and packages, within one or two days,” says Chris Girardot, TCMG Operating Partner.
But speed isn’t the only advantage. Dedicated engineering teams offer design assistance, quick-turn prototyping and value engineering to optimize product performance and manufacturability. Efficient supply chain management ensures a reliable flow of components and fosters strong relationships with trusted suppliers, bolstering TCMGs’ acquisitions-driven growth.
A UNIFIED MANUFACTURING POWERHOUSE
TCMG has a proven track record of effectively integrating newly acquired companies into its operations. While each subsidiary brings its own distinct operational culture, workflows and clientele, TCMG’s acquisition framework facilitates seamless integration into the group, resulting in a unified operational culture and standardized quality management that ensure operational consistency.
With seven acquisitions to date, a notable example of this integration is Apex Machining (“Apex”), acquired by TCMG in 2019. Having moved from the original facility in 2021 and investing millions in new capital equipment, Apex now operates from a 17,000-square-foot facility equipped with fully automated pallet lines and 24/7 lights-out, 5-axis machining, specializing in high-precision, complex machining for the medical, aerospace and defense, and general industrial sectors. Founded in 1993 and based in Santa Clara, California, Apex is supported by ISO 9001, ISO 13485, and AS9100 certifications, ensuring clients receive high-quality, reliable products that meet strict industry standards.
Following Apex, Lor-VanManufacturing (“Lor-Van”) joined the TCMG family in 2021. Established in 2005,this Silicon Valley-based company is known for its precision sheet metalfabrication (laser and punch) assembly and value-added machining services. Lor-Van serves customers across the medical device, life sciences, and semi conductor industries, offering solutions from prototyping to full-scale production. Since acquisition, Lor-Van has invested millions investments in equipment, personnel and facilities. One year after its TCMG acquisition, Lor-Van expanded to anadditional 10,000 square feet, now occupying a world-class, 30,000-square-foot facility with ample room for expansion. Lor-Van holds ISO 9001, AS9100, and ISO13485 certifications, making it a critical player in supplying high-quality components in these demanding industries.
TCMG further expanded in 2022 with the acquisition of Unitech Tool and Machine. The subsidiary specializes intight tolerance machining using state-of-the-art high-speed CNC milling andturning centers. Its highly skilled machinists tackle the most complex challenges based on their decades of programming and machining experience. Operating since 2006, it occupies a 14,000-square-foot facility in Santa Clara,California—and is currently in process of expanding to a best-in-class 33,000 square foot facility strategically located two blocks from Apex and Lor-Van.Unitech holds ISO 9001:2015 certification, ensuring clients receive consistent, high-quality products and services backed by a proven quality management system that meets international standards. Its proficiency in meeting copy-exact requirements for the semiconductor capital equipment industry has established it as areliable partner for any and all high volume, complex precision machining needs.
In August 2023, TCMG welcomed Weiser Engineering Precision Metal Products (“Weiser”) to its growing portfolio. Based just west of Denver, Colorado and founded in 1990, Weiser provides precision sheet metal fabrication, machining, assembly and welding services to OEMs in aerospace, defense, transportation and general industrial sectors .Whether clients require prototypes, small batch orders or large-scale production runs, Weiser addresses all their diverse manufacturing needs as an end-to-end manufacturing solutions provider. Operating a 30,000-square-foot facility and having both ISO 9001 and AS9100 certifications, the subsidiary delivers high-quality, reliable products that meet rigorous international standards for quality and safety.
Vista Industrial Products (“Vista”) joined the portfolio in late 2023, rounding out the group. Established in 1956, VIP brings extensive experience in precision sheet metal, CNC machining, and welding fabrication, and in-house powder and wet coating, while offering extensive engineering, mechanical assembly, metal finishing, and local shipping services.
Vista caters to customers in the clean tech (EV and solar), defense, medical device, semiconductor, and general industrial sectors. Vista operates from a 70,000-square-foot facility in Vista,California, is ITAR registered and holds both ISO 9001 and NISTcertifications--ensuring clients’ needs are met with precision and timeliness.
TCMG’s strategic, ongoing acquisitions and diversified capabilities have made the company a reliable and trusted partner for any manufacturing needs. Its shared resources streamline operations while collaborative efforts result in innovation, setting new benchmarks for customer-centricity in contract manufacturing.
STANDARDIZED QUALITY MANAGEMENT FORCONSISTENT, RELIABLE RESULTS
Stringent quality control measures implemented across all subsidiaries support TCMG’s emphasis on innovation.TCMG’s Director of Quality, Joaquin Romo, plays a pivotal role in this commitment.
Under his guidance, TCMG’s three Bay Area subsidiaries have achieved ISO 13485, ISO 9001 and AS9100 certifications. This milestone has reinforced its reputation for producing high-quality parts. TCMG also complies with International Traffic in Arms Regulations (ITAR) and is pursuing the National Institute of Standards and Technology (“NIST”) certification for defense projects for the entire group.
“TCMG’s quality control system produces parts that exceed customer expectations. Our internal quality checkprocesses are scalable and ensure our companies’ long-term success and survivability,” says Romo.
Every new company coming on board follows the same framework, which reduces differentiation and maintains uniformity. As part of regular internal audits, all subsidiaries report on a weekly basis about their accomplishments, delivery rates and quality objectives.TCMG also conducts annual system reviews to analyze market trends and identify areas for improvement. This ongoing monitoring and feedback loop enables TCMG to improve its products, processes and systems and guarantee exceptional quality and expedited production.
EMPOWERING SMALL BUSINESS OWNERSWITH STRATEGIC SUPPORT
The contract manufacturing sector is experiencing a wave of generational transitions among its numerous small-scale, family-owned machine shops. Many of these businesses are at a crossroads, with the next generation often uninterested in continuing the family legacy. Consequently, these founders, whose net worth is usually tied up in their business, seek liquidity and retirement options—with the goal of preserving their hard-fought legacy.
Recognizing this pivotal moment, TCMG steps in as a strategic partner and acquires thebusinesses. The group allows these businesses to continue operating under a well-established brand name while leveraging its resources and support for continued success.
For TCMG, each acquisition enriches its portfolio, whereas sellers benefit from stable, supportive, and long-term oriented ownership.
Amidst the acquisitions, TCMG remains committed to people with the mandate of as little disruption aspossible. Post-acquisition, it retains workforce in vital business development or engineering roles. This approach alleviates the administrative burdens that business owners typically face. Existing leadership is maintained, while second and third-tier management teams are strengthened, enabling founders to focus on their passions or explore new ventures without the weight of daily operationalstresses.
“Founders join us because, as owner-operators, we’ve been in their shoes and truly understand their needs and challenges,” says Mark DeVenture, General Manager of Vista Industrial Products.
The ripple effect of TCMG’s strategy doesn’t stop at individual businesses. Its reputation for integrity and support has created a wave of interest, often fueled by word-of-mouth referrals from suppliers and industry peers. This trust is a cornerstone oftheir success, fostering relationships that create a win-win scenario for all parties.
ARCHETYPES OF CUSTOMER-CENTRICITY
A strong dedication to customer service drives TCMG. At its core, the team maintains a unified commitment to customer satisfaction, product quality and proactive communication. This positions TCMG as a true partner to its clients, fostering long-term relationships and consistent, repeat business.
An example of the customer-focused approach is its recent collaboration with a government contractor. This client sought a manufacturer and a collaborator capable of working with their engineering team to design and fabricate specialized trucks for government use.
With ample space, manufacturing capacity and an in-house skilled workforce, TCMG stepped up to the occasion and acted as an extension of the contractor’s team.
“Rather than dealing with multiple suppliers, they worked with us as a single entity that supported them throughout the entire engineering, design and manufacturing process,” adds Britney Blue, Operations Manager of Vista Industrial Products.
Much of TCMG’s success can be attributed to its people. The group selects acquisition targets with tenured second and third-tier management teams. Many employees across its five subsidiaries have worked in the industry for decades, creating a solid base of tribal knowledge and long-standing customer relationships.
TCMG also values internal development and offers upward and lateral mobility opportunities. Employees who want to pursue new career paths or transition between divisions can do so, allowing employees to grow their professional careers while contributing to the company’s success.
“We wouldn’t be where we are without our team. Everyone takes ownership of their work. We succeed together,”says DeVenture.
Looking ahead, TCMG is pursuing government contracts requiring higher security levels. To earn those opportunities, it is in the early stages of obtaining cybersecurity qualifications and certifications.
The contract manufacturing industry is continuously evolving, and TCMG’s comprehensive precision manufacturing solutions alleviate many supply chain issues. Its strategic approach to market consolidation and acquisition will be a key asset driving industry-wide improvements in manufacturing efficiency, quality and reliability.
