Where Is Your Shop in Its Evolution?

According to a much overused idiom, Rome wasn’t built in a day.

It’s true, nevertheless. It was slow, steady progress that turned a city into a great republic and that great republic into an empire -- an empire that would later inspire the builders of my favourite Las Vegas casino, Caesars Palace.

In today’s manufacturing sector, any growth is seen as a victory. That’s macro-level thinking, however. What about growth at the personal level? Growth of individual shops and businesses? It can happen.

Four of the five highest-earning North American mouldmakers are based in Ontario, including powerhouse Husky Injection Molding Systems. According to Plastics News, Husky earned a tidy U.S.$140 million in 2015, up $15 million from the previous year. That’s double-digit growth in a manufacturing sector struggling for single digits.

The company didn’t start out earning nine figures, though. It opened in 1953 as a small machine shop with no real ties to the plastics industry. What followed was evolution. Machine shop evolution.

Like Darwin and Lamarck before him, Husky owner Robert Schad knew evolution was the key to his success. When his original idea – a snowmobile called the Huskymobile – didn’t pan out, he began work in the injection mould industry.

As we all know, evolution takes time. But there are some ways to kick-start your growth a little bit … with help from the famous Ansoff matrix.

  1. Market penetration.

Know what you are good at. Whether it’s large die plates or small, complex medical parts, finding and dominating your niche is important. Becoming an important player in your market enables true word-of-mouth marketing that will reduce the burden on your sales department and keep new and repeat orders coming in.

  1. Market development.

After becoming a recognized leader, expanding into new geographic regions with your existing products will spur growth.

The oil bust has taught everyone a valuable lesson based on another famous idiom: Don’t put all of your eggs in one basket. You can be a market leader in one segment, and still have expertise in other areas that will keep you going during the lean times.

  1. Product development.

Find technology that will help you innovate. New machine tools, tooling, workholding, and software constantly are being developed. If you are using the same equipment as you were five years ago, you may be falling behind. Innovation can lead you to a whole new product offering.

The key to all four of these options it timing. Take advantage of opportunities when they arise. A downturn in one market segment may make highly skilled workers available to be hired. In fact, an economic downturn just may be a perfect time to expand. The prices of commercial real estate, equipment, and raw materials all may fall during these times.

There’s no reason any shop should be left behind. After all, every dog has its day.

About the Author
Canadian Metalworking

Joe Thompson

Editor

416-1154 Warden Avenue

Toronto, M1R 0A1 Canada

905-315-8226

Joe Thompson has been covering the Canadian manufacturing sector for nearly two decades. He is responsible for the day-to-day editorial direction of the magazine, providing a uniquely Canadian look at the world of metal manufacturing.

An award-winning writer and graduate of the Sheridan College journalism program, he has published articles worldwide in a variety of industries, including manufacturing, pharmaceutical, medical, infrastructure, and entertainment.