Shift focus toward technology: Industry Trends & Analysis

The cutting tool industry is what some may call a dinosaur. But while it’s true that much of the industry is driven by a demographic and a generational culture that might be described as old-school, I think it’s more accurate to say that ours is a 20^th-century business competing in the 21^st century.

What does that mean? I think that the traditional focus has been on selling the tools themselves but not so much on the technology and innovation behind them or on the services that now can be provided in support of them. We need to emphasize the technical, more complex aspects of our work. We should get the first pass at that work, which otherwise might be offshored as a standard proactive in current business models of companies. With our customer base becoming broader and demanding a higher level of quality, consistency and service, we need to evolve and become more driven by engineering services.

Several factors are changing things, however. Certainly, how the business of our customers is shifting has an impact. They’re competing — selling products — in an environment that demands more innovation and technology and faster turnaround time, all at a lower cost. And of course, all this is needed without sacrificing quality and while meeting whatever regulatory standards may apply to products and industries. Those are a few critical aspects that drive the need for the cutting tool industry to evolve, but we’re living through what might be one of the biggest causes.

COVID-19 radically changed how we do business. We have had to rethink how we manufacture. We’ve had to reinvent our marketing and sales strategies. We’re learning new ways to nurture relationships with customers and partners.

The concept of sales has changed. Decades ago, sales representatives in our industry worked from cars and hotel rooms, carried briefcases full of collateral, lugged product sample cases and, while on the road, kept in touch with the office and customers by pay phone.