In the manufacturing world, strategic relationships are critical. As defined by the Business Dictionary, these types of relationships are an agreement between two or more entities to conduct specified activities or processes, to achieve specified objectives such as product development or distribution. Sometimes referred to as strategic alliances, businesses involved can find many benefits, such as knowledge and resource sharing, opportunities for growth, access to desired target markets and economies of scale.
As a part of their business plan, Muskogee Technology (MT) actively seeks out other businesses with which to form strategic relationships to facilitate business growth and development. MT has created such a relationship with Brown Precision Inc. (BPI) which opened a manufacturing plant in Atmore, AL just last year.
“From an outside perspective, many thought that BPI’s entrance into the Atmore market would translate into increased competition for MT. However, when viewed through the lens of strategic partnerships, BPI’s local investment has been quite beneficial to MT. It has enabled us to increase our capabilities and opened up new markets as a direct result of our relationship with BPI,” stated Westly L. Woodruff, Muskogee Technology President/CEO. BPI, founded in 1964, performs precision machining for clients in the aerospace and medical industries. They boast high profile clients including GE Aviation, GKN Aerospace, Bell, PPG Aerospace and Smith and Nephew.
When speaking about their relationship with MT, Dan Brown, BPI’s co-CEO stated, “When choosing a new site for this plant, we had already heard of Muskogee Technology, due to our having a mutual client, GKN Aerospace. We knew that it would be a mutually beneficial relationship to work with Muskogee Technology and that we could subcontract work to one another thus creating a stronger market position for each company directly attributable to this strategic relationship.”
Muskogee Technology currently performs sub-contracting work for BPI making hard cobalt steel engine parts for GE Aviation. A significant expansion of MT’s machine shop was recently undertaken to prepare for the increasing demands for parts from BPI over the next 5-10 years. Both companies said they are looking forward to the future benefits of this cohesive partnership including expansion into previously inaccessible markets and utilizing their complimentary manufacturing expertise to secure and deliver more contracts thus creating growth for both companies.
By Jen Chism CIEDA Marketing Manager