An Indiana Machining and Welding Company

Situation:

$10 - $15 million company; machines parts for aircraft engines (traditional business) and custom titanium bicycles (recent business effort).

US aircraft engine builders have increasingly shifted parts production overseas. This, coupled with weak demand brought about by 9/11 and the economic slowdown, caused the company's revenues and margins to rapidly erode. Major issues -

• Over reliance on a few key accounts in an increasingly vulnerable market.
• Bicycle business not being actively promoted.
• Little marketing aptitude and no data for decision-making.
• Though in transition, no strategic or business plan guiding change.
  

Started working with GLTAAC in

Approach:

Recovery strategy is to maintain aircraft business while aggressively growing the high-end bike business. To facilitate this, several cost-shared TAA projects are planned-

• Market research
• Strategic planning
• Marketing and sales plan development
• Marketing material development
  

In addition, the firm will obtain quality certifications, improve cost accounting, and continue shop floor productivity activities on its own. GLTAAC will assist with engineering productivity improvement projects.

Actions:

• Adjustment Plan was approved in February 2004.
• Marketing project completed in early 2005, including competitor analysis, customer analysis, product positioning and distribution strategy.
• Website project to support marketing initiatives also now done.

Status:

• Both projects successful. Will be tracking long-term impact.
• Sales and net income improvements in 2004.
• Company is building a solid foundation for sustainable growth.