Kingstec collaborated with AEM Performance Electronics, a pioneering company in the automotive aftermarket electronics sector that specialized in developing electronic performance-enhancing products for vehicles. AEM specialized in both electronic and mechanical performance solutions for drift, drag, and track racing enthusiasts.
“When AEM got started, the aftermarket automotive industry was on the cusp of tipping towards the electronics side and transitioning from the mechanical side—carburetors, air filters, and whatnot. They were chasing performance via the tuning with electronics, monitoring, and so forth,” said Jeremy Negen, the former Director of Purchasing at AEM Performance Electronics.
Despite having innovative technology and engineering expertise, AEM faced significant manufacturing challenges that threatened to limit their market reach and competitiveness.
“We did not have the infrastructure to manufacture these products at a price or scale that would make us competitive in the market,” Negen explained. “Most electronics items at that time were crude and rudimentary, not well refined, and expensive. Everything was almost a custom build.”
The company's flagship UEGO gauge, an oxygen sensor connected to a display gauge, was a prime example of their dilemma. The product worked well and was well-received by customers, but manufacturing inefficiencies were threatening its commercial viability.
“The manufacturing runs locally at that time were so small that there were basically no economies of scale,” said Negen. “If you had nice technology, you could bring it to market. It benefited whoever used it, but it was at a price point where few people could use it.”
To overcome these challenges, AEM needed a manufacturing partner who could deliver higher volumes with consistent quality while reducing costs—all without compromising the technical specifications that made their products unique in the marketplace.
Kingstec's team of manufacturing experts collaborated closely with AEM to transform their small-scale production methods into processes suitable for high-volume manufacturing.
“We sought out somebody who had the infrastructure who could manufacture at those economies of scale that would get us the price point we needed, but also could be a technical partner and add value to the manufacturing," said Negen.
The collaboration began with Kingstec providing critical design for manufacturing (DFM) feedback on AEM's existing products. “We had these rudimentary designs that were made for local, low-quantity manufacturing runs. And then we tried to transfer them over to something where Kingstec could do thousands at a time, which just blows your mind from where we came from,” Negen said, adding that Kingstec's engineering team didn't simply manufacture to specification—they actively contributed to improving the designs with feedback that enhanced manufacturability while maintaining or improving product performance.
“They would come alongside and give feedback or point us in the right directions. Even at times we'd be like, 'Hey, make this work for us,' and they would,” Negen explained.
The collaboration with Kingstec transformed AEM's manufacturing capabilities, enabling them to scale production dramatically while improving product quality and reducing costs. The initial UEGO gauge project was just the beginning of a successful long-term partnership.
“What they brought to it was improved quality, improved durability, improved longevity, and improved pricing, which in turn allowed us to make it available at a price point for the masses,” said Negen.
This combination of quality improvements and cost reductions created a significant competitive advantage for AEM in the marketplace.
“As time went on in the market, others caught on to our idea and tried to make an equivalent. But we were able to scale production and continue to get that price at a leading level to where we kind of squashed our competition,” Negen said. "Anytime somebody would come out trying to cut the price a little bit to eat into our sales, we were able to adjust with Kingstec and squash them."
The successful partnership expanded to include multiple products over time, including a complete line of display gauges and specialty products like water injection controllers.
“Kingstec became our go-to for any projects that were at an appropriate volume for their manufacturing,” Negen explained. "Their manufacturing and design for manufacturing feedback really allowed us to get a nice quality product offered to the market at a price where people could not only buy it; they wanted to buy it.”
In today's competitive manufacturing landscape, companies often struggle to scale production efficiently while maintaining quality and managing costs. Partnering with an experienced manufacturing consultant can help you navigate these challenges and create sustainable competitive advantages.
Working with Kingstec provides several key benefits:
Contact Kingstec today to discuss how we can help you optimize your manufacturing strategy and achieve your production goals.
