Everyone has heard it before.  Whether discussing finances or business, you can not have all your eggs in one basket.  For years companies have made their living in what are now slowing and/or dying industries (at least here in the U.S.).   Doom and gloom aside, a lot of companies in these industries are starting to take note that they need to do something now or face an end. 

The Detroit News ran an article this week titled “Auto suppliers turn to medicine”.  It discussed how suppliers are taking advantage of a strong medical market and available manufacturing space to create new divisions that can help shoulder the load and even grow their business.  Some companies such as Omega Plastics,in Clinton Township, MI, and Delphi, in Troy, MI, saw this coming and began the process years ago.  While Delphi has come across hard times they are now focusing more on their medical division to help it grow into a larger share of their overall business.  Sure it has its risks, but so does sitting around and waiting for the auto industry to come back.

Another article, this one in the January edition of The Fabricator*, revealed how metal forming shops once reliant on fading industries are trying to break into the aerospace and energy markets.  In this case in meant not only changing industries but retooling their equipment from metal forming to compression molding.  With automotive companies looking to lighten vehicle weights, it could put these shops in a spot to pick up more of that business when it comes around.  I am sure there are a lot of hesitancies when looking to retool expensive capital equipment, but the payoff could be worth it. 

There is business to be had if you are willing to put in the time and effort it takes to do the leg work and discover new markets you could service.  I would recommend starting by simply searching the web and see what people are talking about and what industries seem to be growing.  Attending trade shows in prospective markets and talking to the engineers and salespeople working the booths would be a great second step to give you a good idea if there is a fit for you.  If you would like some help researching and entering these markets give me call 1-800-800-9547 or send me an email pbosse@perryballard.com.

*If you would like a copy of the article I referenced above from The Fabricator let me know and I will send you a pdf.