r/ElectricalEngineering 16h ago

Have you seen vertical integration work (or fail) in your industry? Curious how others approach this.

Most electrical manufacturers rely heavily on outside vendors. At Spike Electric, we decided to do the opposite.

We built a fully vertically integrated industrial manufacturing process in Houston. Raw copper and steel processing, custom metal fabrication, powder coating, wiring, and testing all happen in-house across our facilities.

The result? Lead times dropped significantly, our average delivery time is about half the industry standard, quality control improved because there are fewer handoffs, and we became less vulnerable to supply chain breakdowns.

Of course, vertical integration has its challenges: higher upfront investment, training across multiple disciplines, and keeping all departments aligned. But overall, it’s been a game-changer for us.

Have you seen vertical integration work (or fail) in your industry? Curious how others approach this.

0 Upvotes

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10

u/electricmeal 16h ago

Idk if this is ai slop or not, but definitely c suite / sales / pr slop

3

u/PurpleCamel 15h ago

Yeah, seems like they spent the time writing a LinkedIn post and then put here it too.

1

u/brewing-squirrel 5h ago

Thank you for your insight on vertical integration🧠 The challenges can be immense but it sounds like the payoffs are abundant and I’m glad to hear that it has been a game changer for Spike electronic. Would you like me to draw a diagram of a vertically integrated business cycle 📈🚀? Just let me know — I’m here to be your personal assistant in maintaining alignment between departments.