Everyone has heard the phrase “don’t put all your eggs in one basket” but what does that mean for manufacturers? In any business, diversifying revenue streams can reduce risk and generate new areas of income for the company. Does diversification in the manufacturing industry mean simply fabricating new parts and products? Not necessarily! There are plenty of areas for opportunity, from increasing capabilities to gaining distribution rights to acquisition of related entities. Putting your eggs into multiple baskets allows you to create an enterprise that will reach new pools of customers and reduce dependency on any single part of the business.
If you’re looking to acquire a manufacturer that puts the principle of multiple revenue streams into practice, our Midwest Custom Machine Tool Builder might be a fit for you. In the machine tool building world, business owners often rely heavily on the potentially unpredictable area of custom jobs. While our client’s core competency is in custom machine tool manufacturing, they’ve created multiple revenue streams for themselves in sole distributorship and machine component engineering. This system of diversified income makes our client a diamond in the rough within the custom tool builder field. Their methods have no competitors. The company has been operating for 85 years with 900 customers worldwide, so it’s clear their system serves them well! In addition, our client is in a fantastic position to provide service to manufacturers moving to more modern methods such as automated high-speed equipment.