Acquisition of Riverside Spline & Gear brings vertically integrated domestic production capability to customers facing total cost of ownership pressure from offshore supply chains
CHESAPEAKE, Va., May 27, 2026 /PRNewswire/ — North American manufacturers have long known that offshore precision components come with costs that do not appear on a quote sheet. Extended lead times, excess inventory requirements, and supply disruption risk are real expenses. They are simply difficult to quantify when a sourcing decision is made.
In January 2026, Sumitomo Machinery Corporation of America, operating under the brand Sumitomo Drive Technologies, made a decision to change that equation for its customers. The company acquired Riverside Spline & Gear Inc., a Michigan-based manufacturer of precision gears and splined components. The acquisition strengthens Sumitomo Drive Technologies’ domestic supply chain by expanding access to North American precision gearing capacity. By adding manufacturing depth and proximity, the company helps customers reduce reliance on long, fragile global supply lines and better protect lead times when disruptions occur.
“Our customers have been navigating the real costs of offshore sourcing for years. Riverside gives us the ability to offer a domestic answer to that problem—precision components made in the United States, backed by the infrastructure and support of Sumitomo.” — Tony Barlett, VP and COO, Sumitomo Machinery Corporation of America
Riverside built its reputation on delivering high-quality gears, with unmatched speed at a competitive price. Precision manufacturing standards and consistent execution are central to how the company operates and were a key factor in the acquisition.
For manufacturers evaluating sourcing decisions through a total cost of ownership lens, control matters as much as cost. Domestic production offers greater visibility into schedules, fewer handoffs across the supply chain, and less exposure to disruption—factors that rarely appear on a quote but often determine real-world performance.
Riverside’s capabilities span precision gear cutting and spline manufacturing across a range of specifications, supporting customers that require consistent quality without introducing new variables into their sourcing strategy. Manufacturers transitioning work from offshore suppliers can do so while maintaining established quality standards and realistic lead time expectations.
The acquisition further supports Sumitomo Drive Technologies’ long-term vision to invest in near-shoring, strengthen the regional supply chain, and expand domestic manufacturing capability and capacity. As North American manufacturers bring more production home, the supply chains that support them must evolve as well. Precision gearing is a foundational part of that infrastructure.
In practice, greater proximity and manufacturing depth give manufacturers more control over outcomes—helping protect schedules, manage risk, and make sourcing decisions that hold up under real operating conditions.
For more information, please contact:
Brion Humphrey, Public Relations Specialist
Sumitomo Drive Technologies
brion.humphrey@shi-g.com
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SOURCE Sumitomo Drive Technologies
