WESRAC Solution
A new strategy implemented that focused on expanded product offerings, increased quality and improved services.
Positive Outcomes
Since beginning its public/private sector partnership with the TAA for Firms Program, sales increased 366% to $20.4M, employment increased 85% to 76, and productivity improved 152% to $342,105 sales per employee
Details
This firm is an integrated forge and machine shop capable of furnishing a wide range of high quality forged parts of various materials to customer specifications. The company has developed an established nationwide customer base in the oil refining, mining, paper pulp mill, government, and food processing industries.
In the mid-nineties the firm encountered import injury from larger vertically integrated forging competitors in France and lower cost competitors in the Western Pacific Rim. As a result the firm suffered a 39% decline in sales and a 13% decline in employment.
The company, with assistance from the University of Southern California’s Western Trade Adjustment Assistance Center (Western TAAC) became certified as trade impacted by the US Dept. of Commerce, Economic Development Administration (EDA) in May of 2000.
Western TAAC and the firm’s management developed a strategy to specialize in the manufacture of forged and precision machined parts, while expanding and diversifying its customer base. The strategy targets markets where it can capitalize on its ability to produce short run orders of high quality forged products with “Rush Delivery” requirements.
The company has successfully completed its 6th year in the implementation phase of the TAA Program. During this period the company, with Western TAAC assistance, implemented its marketing and production engineering projects. These projects focused on improving its marketing and sales capabilities and re-establishing its large forge operations.