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Manufacturer of Precision Machined
Components
Background
This Rochester, New York tool and die shop, now being run by the second
generation, still operates by the same principles it was founded on over 40
years ago.
Over the years, not only were the owner's technical skills critical to building
a successful business, but also his ability to form and nurture many strong and
lasting relationships that still survive today.
For close to 20 years the firm experienced steady growth. It was the latter part
of the ‘80s as both the nation, as well as the local economy, that the firm
first began experiencing the slow down of its markets. Fortunately, the firm had
forged strong relationships with a number of global OEMs, many located in the
general area of the firm, that would sustain the business
throughout those difficult years.
During that time the owner’s son and another key
individual, joined the firm with the intent of transforming the business
from a tool and die shop to a precision components manufacturer to meet the
changing demands of the marketplace. Transformation needed to take
place, but before the firm could implement change the business took another
downturn, and management knew they had to do something different.
At the time of certification the firm had 38 employees and net sales of $2.7
million.
Assistance Provided
The NYS TAAC performed a diagnostic of the firm’s operations, which concluded
that although the markets for the firm’s capabilities will rebound and
manufacturing was adequate for the firm’s current output, it had limited
internal structure in place. Specifically, the firm had limited marketing
expertise, deficiencies in its information systems (IS), and the lack of a globally
accepted quality system.
The first order of business was to improve sales, so the NYS TAAC and firm developed a
technical assistance project to improve sales and marketing. After analyzing the
strengths of the business, it was determined that drawing on the firm’s
excellent reputation for quality, high performance, and timely service could
generate new sales. Thus, a strategic plan was created that articulated a
business/marketing strategy to guide the firm toward a solid foundation and an
opportunity for a long-term recovery.
This comprehensive sales/marketing strategy included a mission statement,
evaluation of current market focus, and characteristics of potential new
customers, short- and long-range sales goals with alternative strategies,
information from past and present customers and a random sample of
non-customers, various strategies and tactics for defining and gaining new
business, training of the sales personnel, plus measurement and feedback
mechanisms to evaluate and maintain the plan over the long-term.
Project Results
The owner and his management team have gained a number of things from the
extremely successful sales and marketing project. First and foremost, the
project provided a sound, accurate, and precise road map for the owner and his
management team to follow. The plan has given the team confidence and control
that had never been part of the decision making process in the past.
The customer feedback was enlightening and transformational
for the firm. Pricing, an area thought to be well within industry guidelines,
appeared to be a major issue with the firm's present and past customers as well.
Armed with this information, a new emphasis was placed on pricing and the
different components of this aspect of business. The project additionally
established a key account marketing strategy, including customer communications,
sales and marketing tools, including updating its web site, new sell sheet for
the four different parts of the business (machining, fabricating, assembly &
test, and design services); plus, the introduction of a new organizational
structure to support the entire sales/marketing approach.
To date the firm has experienced a 43.4 percent growth in sales and a 30 percent
increase in employment since certification.
Management is thrilled with the results of this project encouraged to see what the
future will bring.
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