Manufacturing Leadership Series Strategies For Business Growth

Manufacturing Leadership SeriesStrategies for Market Growth

Slide 2May 5, 2011

Marc Rothstein

President

Prime Synthesis

Slide 3May 5, 2011

The four bases:Thymine

Guanine

Adenine

Cytosine

Double Helix

DNA Oligonucleotide

Slide 4May 5, 2011

Controlled Pore Glass (CPG)

Slide 5May 5, 2011

• Established in the late 1980’s

• Located in Aston, PA

• Focused on the development and production of DNA synthesis materials for the biomedical research field

• Recently completed construction of an additional 10,000 square-foot, Good Manufacturing Practice (GMP)-compliant production area

Prime Synthesis

Slide 6May 5, 2011

Situation

• Core product, Controlled Porosity Glass (CPG) for the DNA synthesis market. Losing market share to foreign competition.

• Developed an improved product to regain share.

• Had potential for purification related bio-chemical applications – a new market for Prime Synthesis.

Prime Synthesis

Slide 7May 5, 2011

Situation

• The new CPG product had the capability for higher loading – an advantage in the new target market space

• Rothstein came to DVIRC for support in exploring the market potential for this new product and to develop a strategy moving forward.

Prime Synthesis

Slide 8May 5, 2011

Prime Synthesis

Solution• DVIRC Recognized that Prime Synthesis qualified for

funding from the MidAtlantic Trade Adjustment Assistance Center (MATAAC)

• Prime determined to use this for new product development that will allow them to be more competitive in the world market

Slide 9May 5, 2011

Prime Synthesis

Solution• DVIRC connected Prime Synthesis with Research

Triangle Institute (RTI), who then took on the task of implementing Technology Driven Market Intelligence (TDMI) effort for the company

Slide 10May 5, 2011

Solution• RTI gathered existing market data and reviewed

published academic and scientific literature related to the Prime Synthesis technology and potential applications

• Identified key players in the market and arranged interviews with them

Prime Synthesis

Slide 11May 5, 2011

Solution• Research confirmed that manufacturers needed to

reduce the cost of the drugs while enhancing manufacturing efficiency and productivity

• RTI discovered that Prime Synthesis’ technology addressed the rate-limiting (bottleneck) step in the production process

• The target market offers Prime Synthesis the potential for $100 million in annual sales.

Prime Synthesis

Slide 12May 5, 2011

Results• With the guidance of DVIRC and the research provided

by RTI, Prime Synthesis is ready to begin searching for potential business partners and developing a strategy for entering the new bio-chemical processing market

• We now have the ammunition to go to major players and show that we have the answer to their production efficiency issues

Prime Synthesis

Slide 13May 5, 2011

Results• Avoided the costs of forming a limited potential

partnership with a Korean company

• DVIRC directed Prime Synthesis to the MATAAC funding resources. With DVIRC’s assistance, Prime Synthesis qualified for up to $150,000 in cost share funding, and used the money to pay for work related to their new technology, including patent protection, the RTI research, and the development of a website.

Prime Synthesis

Slide 14May 5, 2011

Lessons Learned

• Time and effort seeking outside help is well spent

• Offering a “me too” lower cost product is not an option in some markets

• “Wishful Thinking” Strategic Plans can be avoided with credible market research performed by third party experts

• Understanding barriers to entry is critical step in new business development

Prime Synthesis

Slide 15May 5, 2011

Next Steps• Getting ready to present to possible investment partners

• Preparing to produce additional laboratory data related to product performance

Prime Synthesis

Slide 16May 5, 2011

Marc Rothstein

President

Thank You!

Prime Synthesis

Manufacturing Leadership SeriesStrategies for Market Growth Bud TylerVice President

Slide 18May 5, 2011

• Established in 1977 as a CNC machine shop fabricating close tolerance, complex parts

• Headquartered in Willow Grove, PA

• Employ 85 people

• 65,000 sq. ft facility equipped with 50 CNC machines and other advanced technologies

The E F Precision Group

Slide 19May 5, 2011

• Today, we are two specialized, autonomous, yet interacting companies

• Full service solutions provider:– High-tech custom mechanical

– Electro-mechanical components

– Full assembly operations

– Engineering services

The E F Precision Group

Slide 20May 5, 2011

• Serve clients in defense, aerospace & medical product markets, including,

– Johnson & Johnson

– Lockheed Martin

– Northrop Grumman

The E F Precision Group

Slide 21May 5, 2011

• Certified to ISO 9001:2008 / AS9100:2004 Rev B

• ITAR and UL508a registered • Registered FDA Critical Device / Contract Manufacturer

The E F Precision Group

Slide 22May 5, 2011

• 1977 – 1997 – Machine shop / assembler

• Mid 1990’s global competition emerged

• Reinvention of company essential to survive

The E F Precision Group Situation

Slide 23May 5, 2011

• 1997 – 2007 revitalized the business

• Expanded capabilities, and invested in advanced technologies

• Added engineering department

• Retrained workforce

• Achieved accreditations to cultivate customers in defense, aerospace, medical markets

The E F Precision Group Situation

Slide 24May 5, 2011

• Approach to Sales and Marketing did not change

• Not a sales driven company

• Focus on business resulted in having blinders on

– How EF was perceived in the market

– Approach to generating new business

The E F Precision Group Situation

Slide 25May 5, 2011

• Despite expanded capabilities, investments, still pigeon-holed as a “machine shop”

• Marketing even more challenging selling advanced machining engineering and assembly capabilities for highly complex, critical components

• Building market awareness of new value proposition became a priority

The E F Precision Group Situation

Slide 26May 5, 2011

• Turned to DVIRC

– Raise company profile in target markets

– Identify potential new business

– Facilitate business networking opportunities

The E F Precision Group Situation

Slide 27May 5, 2011

• DVIRC marketing team repositioned the EF Precision brand to align with the new realities of the business

• Introduced structured rebranding process

– Developed a strategic marketing roadmap

– Implemented a number of tactics, including…

The E F Precision Group Solution

Slide 28May 5, 2011

• Revised Value Proposition

– Articulated the strengths and key benefits of the new brand

– “Attitude is Everything”

The E F Precision Group Solution

Slide 29May 5, 2011

• Performed Market Research

– Benchmarked key clients to identify new opportunities

– Created prospect database of key decision makers

The E F Precision Group Solution

Slide 30May 5, 2011

• Redesigned brand Identification

– Facilitated the redesign of the companies identity and

communications materials

The E F Precision Group Solution

Slide 31May 5, 2011

• Designed new web site

• Conveyed capabilities through 3d animation and video

• Public relations campaign announcing launch

The E F Precision Group Solution

Slide 32May 5, 2011

• www.efgroup.com

The E F Precision Group Solution

Slide 33May 5, 2011

• Direct marketing campaign

The E F Precision Group Solution

Slide 34May 5, 2011

• Manufacturer of the Year Nomination

The E F Precision Group Solution

Slide 35May 5, 2011

• Initiated Public Relations

• Springboard beginning with award

The E F Precision Group Solution

Slide 36May 5, 2011

• Initiated Public Relations– Industry Week

– Bloomberg

– Philadelphia Business Journal

– The NE Manufacturing News

– Design 2 Part Magazine

– The Intelligencer

The E F Precision Group Solution

Slide 37May 5, 2011

• Facilitated Network Opportunities

– DVIRC industry connections

– Member of DVIRC CEO Council

– 15 non-competing members serve as

advisory group

The E F Precision Group Solution

Slide 38May 5, 2011

• Named 2010 Manufacturer of the Year

– Springboard for building market awareness

• New web site and brand image launched

– Reflects value proposition and capabilities of

The E F Precision Group for new prospects

The E F Precision Group Results

Slide 39May 5, 2011

• Public Relations

– coverage amounted to $107,000 value

• Networking

• CEO Forum

• Lead Generation

– resulted in a dozen potential new clients

The E F Precision Group Results

Slide 40May 5, 2011

1. When talking about Public Relations understand that ROI isn’t

always measureable, it is the awareness gained and how you

handle the network that it creates

2. Use all of your tools in the tool box – Articles, Campaigns, Web

Site, etc – utilize them for generating business, improved network,

and new opportunities

The E F Precision Group Lessons Learned

Slide 41May 5, 2011

3. Never be afraid to try something new or uncomfortable,

be creative when you’re in a different environment –

think outside the box

4. Don’t box yourself into one way thinking –

i.e., with Lead Generation – don’t just look for leads, look for how

the people you are talking to can help you find other Leads – not

just doing business with them

The E F Precision Group Lessons Learned

Slide 42May 5, 2011

• Continue investing in marketing to support business development

• Get mechanisms in place for sustained efforts

• Continue building awareness of The EF Precision Group

• Share knowledge… – manufacturing is an excellent career – personal outreach to high schools / colleges

to get message out to young people

The E F Precision Group Next Steps

Thank You!Bud Tyler

Manufacturing Leadership SeriesStrategies for Market Growth

Slide 44May 5, 2011

Welcome toWestinghouse Lighting

Ray AngeloPresident & CEO

Slide 45May 5, 2011

Worldwide Recognition

Few brands have the power of Westinghouse.

With 81% consumer recognition* in the U.S. anda growing worldwide presence, Westinghouse offers the opportunity to increase sales through a familiar, global brand already tested and trusted by consumers.

*June 2010, Caravan Study.

Slide 46May 5, 2011

Who is Westinghouse Lighting?

Westinghouse Lighting:

• Is a privately owned family business, started by Stan and Tim Angelo in 1946.

Slide 47May 5, 2011

Who is Westinghouse Lighting?

Today Westinghouse Lighting:

• Annual sales $100 million +

• Employ 250 people

• Is a full-line lighting supplier of light bulbs, ceiling fans and decorative and spec grade fixtures.

• Is a global marketing and distribution company.

• Cultivates an environment of free enterprise for inventions and ideas.

Slide 48May 5, 2011

Global Brand Presence• Westinghouse Lighting develops and/or markets products in 100 countries on 5 continents

– World Headquarters – Philadelphia, Pa. – Sales/Distribution Office – Montreal, Canada– Sales/Distribution Office – Dusseldorf, Germany– Mexico Company – Mexico City, Mexico– Joint Venture – Colon, Panama– Planned – SE Asia– Planned – Australia

U.S. Distribution Centers• Philadelphia, Pa.• Chino, Ca.• Jacksonville, Fl.• Global Supply Chain

China Offices in Hong Kong & Changan• Sourcing & inspection efforts

Slide 49May 5, 2011

Three Product Categories

Lamps Luminaires Ceiling Fans

Slide 50May 5, 2011

Core Business

Slide 51May 5, 2011

Competitive Landscape

Slide 52May 5, 2011

Litex Design House

Hampton Bay Harbor Breeze

SLI

MaxLightTCP Feit

PQLHalco Satco

Slide 53May 5, 2011

Situation

• Through 1970s and 1980s enjoyed continual successduring DIY growth trend

• Sold through major home centers and hardware retailers

• Products fit the market, prices competitive, demand was high, gaining market share

Slide 54May 5, 2011

Situation

• By mid 1990’s independent retailers replaced by Home Depot, Lowes and other national chains

• Global import competition grew

• Sales declined

• The company “muddled through” the next 15 years

Slide 55May 5, 2011

Situation

• Changes implemented by 2009

• The company was like a “glass half empty, half full stage”

• The business stabilized, global business doing well • Strengthened management team• Restructured sales and marketing culture

Slide 56May 5, 2011

Solution

• Sought DVIRC for assistance

• Guided Westinghouse management team through disciplined process

• Envisioned the future• Assessed current state of business• Conducted SWOT analysis• Created plan, set goals and developed

action plans

Slide 57May 5, 2011

Solution

• Identified core competencies and competitive advantages…

and

• Areas for improvement to achieve strategic objectives• Gaps identified• Action plans put in place

Slide 58May 5, 2011

Solution

• During this process, short term business issues identified

• DVIRC provided framework for some “tough questions about the true state of the business”

• Realistic and achievable plan to deal with challenges emerged

Slide 59May 5, 2011

Solution

• Performance Management Plan• Improve employee performance• Align performance with company goals

• IT Conversion• Replace old system • All departments brought in process

Slide 60May 5, 2011

Solution

• Financial Budgeting Process Created

• Marketing Content Development• 2000 products – centralized database created

Slide 61May 5, 2011

Results

• Enhanced the company’s ability to develop action plans, track and monitor

• Implement and self-correct when necessary

• Ability to follow through on major initiatives

Slide 62May 5, 2011

Results

• Communications throughout organization improved significantly

• Performance Management resulted in consistent and organized process reviewing employees and alignment with company goals

• Employees eager and enthusiastic about their role and contribution

Slide 63May 5, 2011

Results

• May 2011 old VAX system will be converted to a Microsoft system

• Employee ownership and commitment seeing this project through

Slide 64May 5, 2011

Results

• May 2011 a new website will be launched to provide customers with all products, specifications and photos in downloadable formats

• Countless hours have been saved, customers can now obtain information directly in minutes

Slide 65May 5, 2011

Lessons Learned

1.Strategic Planning must be valued by the Owner/President and Senior Management Team

2.Strategic Planning is essential for Westinghouse Lighting with the assistance of a competent facilitator

3.Needs to be a “living, breathing plan” not a binder that sits on a shelf

Slide 66May 5, 2011

Lessons Learned

4. Action Plan Initiatives assigned to project owners with timelines and monthly reviews

5. Plan Implement

Plan Implement

Slide 67May 5, 2011

Lessons Learned

6. Most effective Strategic Plan group size 4 – 8

7. Create an open, collaborative atmosphere

8. Move towards truly key initiatives, 2 – 4 is ideal

“Separate the vital few from the needed many”

Slide 68May 5, 2011

Lessons Learned

9.Communicate Plan to entire company – performance management “all performance starts with clear goals”

10.Rolling three years

Slide 69May 5, 2011

Next Steps

• Westinghouse Lighting in a stronger position to implement additional strategic initiatives

• Continue developing action plans around:• Positive cash flow• Sustainable fixed costs• Creation of global marketing / licensing enterprise

• Efforts already begun focusing on New Product Development

Slide 70September 30, 2010

Manufacturing Leadership SeriesStrategies for Market Growth

Thank you!

Manufacturing Leadership SeriesStrategies for Market Growth