Can US Precision Machine Manufacturing Survive?

business developmentPost the Great Recession, many US precision machining and manufacturing companies are asking themselves if it makes sense to continue operating in the US, as before.

In flat-to-declining markets there are only two options, either grow or die. There are no other strategic options. Companies must capture market share in order to survive. Despite the recession, globalization has forced these companies (given their current business models) to act “locally.”

The critical perspective is that most all of these companies, are operating “as before,” trying to maintain or grow their businesses in a shrunken market. They have been forced further (than before) into operating as ‘job-shoppers’. That means serious competition for fewer dollars. Unless these companies change their modus operandi they will continue in a slow downward business spiral until they die. Quite a few have already failed to survive the recession.