4—GEAR Production Supplement
F E A T U R E
By Russ Willcutt | Editor
Grinding teeth has allowed Global Gear to increase production as
well as quality, and its equipment investments have led to 11 new
customers in seven new markets.
T
here is a certain level of security to be
found in the captive machine shop
business model. You're dealing with a
single customer, whom you get to know very well,
and there is a reasonable expectation of ongoing
work. There is uncertainty as well, since market
A Map for Market Expansion
How one gear manufacturer freed itself from the single-customer model by
adopting new technologies and expanding its customer base to protect
against economic uncertainties.
downturns can have a devastating impact with
no alternate revenue streams to rely on. Market
diversifcation is the obvious solution, but how
does a captive gear manufacturer go about
expanding its customer base and transforming
itself into a contract shop?