An Indiana Machine Maker
Company
- $25 - $30 million company; 100+ employees
- Designs, manufactures and installs specialty assembly line systems. Serves automotive, heavy equipment, and other high volume manufacturing industries.
Situation
- The entire machine building industry was hit hard by foreign competition coming out of the 01-02 recession; imports grew by 70% from 2001-2004.
- In 2004 alone, company sales dropped 25%, employment fell by more than 10%, and the firm began to lose money.
- They approached the Great Lakes TAAC for help in the summer of 2005.
Approach
- With GLTAAC's assistance, the company developed a two-tier strategy:
- To immediately reduce costs and improve operational performance through productivity improvement initiatives, and;
- To strengthen their long-term viability by increasing sales and improving key support systems.
- The company's recovery plan was submitted to EDA and approved for funding.
Actions
- Over the next three years, the firm used the program to completely revamp its sales and marketing functions. This included targeted market research, development of a comprehensive marketing plan (including a tactical sales plan) and help implementing it (through hands-on assistance, new reporting and planning systems, and new marketing tools).
- The company begain instituting lean manufacturing practices throughout the business using its own resources.
- And in order to support and strengthen both of these improvement efforts, the firm used TAAF assistance to help implement a new ERP system.
Results
- By 2008, sales had doubled compared to before the company entered the program, and employment had grown considerably as well.
- Revenues fell dramatically due to the recent recession, but the company remained profitable despite lower volumes.
- This firm completed the program. Although sales have not yet fully rebounded, the company is well positioned to grow when the economy improves.