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Cincinnati Lamb: a winning strategy for a changed market
Keywords Machining, Tooling, Automation, Metalworking
At present, the global machine tool market is not a place for the weak or the faint of heart. It is a dynamic, highly cyclical arena in which those who cannot adapt quickly disappear to be replaced by agile new competitors. As we wait for hopeful signals for this sustained downcycle to end, the machine tool industry is in disarray. Old, established names have disappeared in unprecedented numbers either through bankruptcy or forced consolidation as demand plummeted to record lows not seen since the Great Depression. Most have taken a wait-and-see approach while few have stepped up to meet the challenge of our permanently changed market.
The stakes are immense, because metalworking machine tools are the basic implements of modem manufacturing. Indeed, most economists recognise machine tool consumption as a leading indicator of future economic activity. Without a healthy machine tool industry, the ongoing security of any nation is at risk, and a vital, growing economy is simply impossible.
Against this backdrop, the recent merger of Cincinnati Machine and Lamb Technicon could be seen as simply another example of an economically driven consolidation in reaction to weak demand.
The only way to succeed in this market is to remain tightly focused on real, fundamental customer needs for lower cost, improved productivity and comprehensive service and support, because those needs do not change. At the same time, successful suppliers must proactively develop technologies and support capabilities that can satisfy those needs in a globally evolving economic...