Veryable Partner, ADAC, Broadens Its Manufacturing Capabilities With New Diversified Business Unit

ADAC & Veryable Partnership

In May of 2023, a leading Michigan automotive parts supplier, ADAC Automotive, faced a pivotal challenge that is common in the industry - accurately predicting labor requirements to meet the fluctuating demands of their diverse customer base. Large names which include; BMW, Ford, General Motors, Honda, Nissan, Volkswagen, and Stellantis. The unpredictable nature of the automotive industry makes it impossible to accurately forecast labor needs, and trying to address this with the old-fashioned staff to averages approach meant choosing between compromising service levels, or inflating fixed labor costs, neither of which was acceptable to leadership.

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ADAC, known for being at the leading edge of innovation during its almost 50 years in the industry, knew there had to be a better way. This is what led them to Veryable.

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Leveraging Veryable’s on-demand marketplace to build labor pools at 3 different manufacturing plants gave the ADAC team the ability to bring in additional support when needed, often with just a few hours lead time. As ADAC’s Director of Human Resources Jake Rupert explains, "If we start the day at 7 am, and we realize that we don't have enough labor on first shift to to get parts out the door, that means we need to try to reinforce 2nd or 3rd shift, traditionally you don't have those opportunities to bring in talent on a same day basis... but we did it with Veryable the first time we tried it."

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Having this capability has helped ADAC to:

(1) maintain on-time delivery no matter the volume

(2) reduce overtime expenditures

(3) reduce turnover & increase FTE morale

(4) achieve a lower, more constant cost per unit

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But the benefits of an on-demand labor model extend far beyond improvements to service, productivity, and cost metrics. With a flexible portion of their workforce, ADAC is able to quickly scale down labor capacity when needed without the need for layoffs. This was integral in helping them mitigate the impacts of the 7-week UAW strike in 2023.

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As a result, when ADAC hosted their annual Partner Day Event in May 2024, Veryable received the Innovation Award for helping ADAC to mitigate $400k in automation costs and achieve $1.6M in total cost avoidance throughout the length of the UAW strike. Measuring this impact was actually made possible by the value calculator feature on the Veryable platform. Additionally, another Veryable customer received an award for maintaining 100% on-time delivery to ADAC.

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To read more about this, click here.

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Growth and Diversification  Through A New Business Unit

ADAC, which has historically focused on high volume injection molding, paint, and electronics integration as a tier 1 supplier to Ford, GM, Stellantis, and many other OEMs, is leaning into their launch of a new diversified business unit. The mission of this diversified business unit is to leverage existing capabilities with regards to quality, manufacturing, engineering, and ingredient technology to drive value for their partners.

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“Our team is in an interesting position”, says Chris Teets, General Manager for the Diversified Business Unit. "ADAC's unique capability set allows us to be a full product lifecycle partner to organizations who need design, engineering, and manufacturing work done and executed at a high level."

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With this new diversified business unit, ADAC is now serving customers across defense, medical device, industrial automation, powersports, agriculture and more with engineering and production services like 3d scanning, additive manufacturing, CAD design, electrical hardware design, CNC machining, injection molding, and validation testing.

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In an interview with Crain’s Grand Rapids Business, ADAC President & CEO Jon Husby says “we see amazing growth in our diversified business to the extent that we believe it’s going to be 20% of our revenue stream by 2028."

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Conclusion

ADAC has tremendous capabilities, and with the Veryable model as part of their operating system, they are able to deliver unparalleled quality, highly competitive pricing, and consistent world class service.

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If you're a manufacturer in agriculture, defense, medical devices, industrial automation, powersports, one of the thousands of manufacturers in Veryable’s network, or are just looking for a US based supplier, you should check out ADAC.

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With nearly 50 years of experience and a big name customer base, ADAC’s reputation truly speaks for itself.

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To learn more about ADAC’s capabilities, please visit www.adaccompanies.com or contact Chris Teets at cteets@adaccompanies.com.