In the manufacturing realm there are a few different classes of companies based on size and capability. Each one has its place in the market serving a specific purpose, and most of the time the company’s size is directly proportional to its output of product and the size of company it serves. We’re growing as a company, but we don’t want all of our business going to the big guys.
Here’s the reason why:
The biggest manufacturers are most capable of turning out high volume and working on a smaller profit margin, so they sell to the largest companies out there. They make a million matching parts in a single run, then re-tool for the next enormous project. The same is true for mid-sized manufacturers selling to mid-sized companies and small manufacturers selling to small companies. It’s all based on ability, efficiency, and profit margins.
Breeza Industrial has always been primarily a fan company, despite its abilities to provide other services. A full machine shop, a job shop, and a fabrication shop have been added over the years to serve customers, but at the end of the day Breeza is a fan-first company. The fan business is a good one, too. It has provided a very successful revenue stream to the owners here for 25 years. But instead of doubling down on the fans and trying to become a huge fan company, ownership decided years ago that diversifying our abilities was more important.
Diversifying did a few very important things for Breeza:
- It’s been a great way to continue to grow even when fan business flattens out when the economy dips.
- It’s allowed us to provide additional services to our existing customers who know our reputation for quality and excellent service.
- Maybe most importantly, it’s allowed us to remain flexible enough to serve shops of any size.
We have big contracts with very large companies. We love those orders and they are important to us. But it’s the small to medium-sized orders that get us up and going every day. Those are the ones that keep us engaged and excited.
Now, our service to the little guys isn’t altruistic alone. It’s a very lucrative business. We’re able to turn out custom fans, machined parts, and fabricated pieces in a fraction of the time that a big company could. And we can build in low volume when the bigger guys can’t afford to stop production for small jobs. We’ve found a great niche market and it’s one that keeps us interested.
I guess the moral of the story is this: growth doesn’t mean you have to get big, and we’re a perfect example of this. We’ve found a way to grow without losing our identity. When you find a successful business model that is enjoyable to do, follow that path.