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 Thursday, June 18, 2009
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I recently had a local Michigan customer ask me how to go about securing business in areas other than Tool & Die and Molds.  His shop has traditionally been a mold building shop catering to the automotive industry.  No surprise there, since he is very close to Detroit.  Because of the weakened economy, and especially because of all the problems with GM and Chrysler, many shops that had historically supplied tooling of all sorts to the automotive industry in and around Michigan are looking elsewhere for work.  For many shops, this diversification of their business operation has meant the difference between remaining competitive, and going out of business.

Many of the skill sets that are learned and used in Die-Mold work can be translated to parts manufacturing for different sectors.  Like anything else, changing from Die-Mold or Tool & Die making to parts manufacturing will have a learning curve.  Keep in mind also that when you get into some of this work, like aerospace, medical, or Department of Defense (military), there is a whole new set of rules, specifications, restrictions, and so on.  Once these are learned and you accept them, you will find that there is work to be had and money to be made in these sectors.

Some of the industries I would recommend looking to are medical/dental, aerospace, military, clean and renewable energy, and power generation (turbines). Most of what I see in the demand for EDM from these sectors is more in the way of parts than for tooling, except for medical. More and more shops I go into that used to make strictly tooling are diversifying into parts manufacturing. For example, almost every T&D shop I have visited in California in the last 8 years now does less than 5% of their business in T&D.  Those same shops are now producing parts for aforementioned sectors.  Certain areas of the country also have specific industry needs for EDM.  In Texas, Oklahoma, and Louisiana there is a need for knowledge and experience in using EDM for manufacturing parts for the oil field industry.  The arid Southwest; California, Arizona, and Nevada; has a need for agricultural irrigation system parts. 

As for making contacts, that depends on the specific sector. For military work, the government publicly solicits quotes for many of the projects they need work done for . You can probably find info on this and the other sectors by googling them. These links will get you into the U.S. government's site that deals with doing business with the government and the military.  http://www.business.gov/expand/government-contracting/    http://www.acq.osd.mil/osbp/doing_business/index.htm    I know that Aviation Week Magazine has a very comprehensive publication that lists all major aerospace "Primes", and many of their subcontractors. https://a1.ecom01.com/aw_marketdatacenter?s_id=11  SAE is heavily involved in aerospace manufacturing and would probably be a good source for info or contacts. I always see info from them advertising seminars on how to do business with the aerospace industry. Check out this link - http://saeglobalsuppliermarketplace.com/   I would also recommend looking into the Michigan Aerospace Manufacturers Association, based in Grand Rapids, MI, and other more local business development organizations. http://www.michman.org/

For Medical, the MD&M (Medical Device & Manufacturing) shows are an excellent place to network for this sector. The shows not only have medical supply companies exhibiting, but is a prime showcase for shops that cater to them. The next one is in NYC in June, http://www.devicelink.com/expo/east09/  then Minnesota in October http://www.devicelink.com/expo/minn08/

Another area with a lot of growth potential is Micro- and Nano-manufacturing.  This is one of the fastest growing disciplines, as the demand for smaller, lighter, and more capable devices continues to escalate.  This area may be at the opposite end of the spectrum for many of you, who are very familiar with making larger parts and tooling components.  Again, parts manufactured on this scale have a completely different set of challenges than what many of you are familiar with.  There are several Micro Manufacturing conferences each year throughout the country, and the magazine MicroManufacturing can also be a good source of contact information.

I am not sure where to find contact info for the energy sectors, other than to research websites related to these. One place to start would be the Department of Energy websites for U.S. and individual states.

I hope this information is helpful to anyone out there who's shop is struggling to survive in these hard economic times.  Its not always the technology you employ that makes you successful.  Who you do work for can also have a big impact on the future of your company.

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