A Michigan Manufacturer of Sensors
- Small company; less than $10 million in sales; second-generation leadership; significant employee ownership via ESOP.
- Niche manufacturer; produces thermal sensors and detectors for the electronics industry.
- Potential applications and markets for sensors growing.
- Intense overseas competition, industry consolidation, and the introduction of a new-technology sensor left company trailing competitors.
- Market was becoming increasingly price-sensitive, which hurt firm sales.
- The company was forced to reduce its workforce by more than 20% the year before it entered the program.
- Firm still financially sound, but old business model clearly unsustainable.
- Make long-term changes to strategic direction with data and outside expertise to help with decision support.
- Become more efficient and cost-competitive, while at the same time expanding product offerings.
- GLTAAC helped the company develop a recovery plan that addressed all of these issues. It included projects in marketing, strategic planning, process improvement, new product development and support systems.
- Lean manufacturing project done first to cut costs and help improve competitiveness. This reduced inventories, material handling, and COGS.
- Strategic planning, market research, and sales projects improved day-to-day management and facilitated the evolution of a new business model.
- The firm upgraded its website with the help of the program, while developing several new products using its own resources.
- The company has moved up-market. Though still making sensors, it is now also focused on developing new end-products that incorporate its traditional products.
- Firm stabilized – profitable, with sales and workforce growing again.
- Last domestic manufacturer in its industry niche.
- Company faces many challenges ahead, but also has many opportunities – it is well positioned for success.