cnctoolcat
Diamond
- Joined
- Sep 18, 2006
- Location
- Abingdon, VA
Ox,
At this point I really don’t know how much we need to add on to the Cathouse, until all the potential new business settles in, or settles out....lol
Most of our parts are for underground mining, as it is a very “equipment-intensive” form of mining. The machines take tremendous abuse in service, and thus require replacement parts often.
Supplying the mining industry is like everything, it is intensely competitive.
And with the operating bankruptcies of some of the big companies, as a supplier you have to always be on your toes, and work to keep from getting too caught up in a specific customer’s mess.
Fortunately, we have lost just a little money over the years in such a volatile industry....not so for some of our distributors and competitors.
My partner Montie is out every day visiting customers, keeping his ear to the ground for any and all information that helps us stay ahead of the financial “see-saw” that can be the coal industry.
The OEM’s make good parts, and sell them for a mint. The mining companies like the OEM parts because they know they will work well, they just don’t like paying the high prices — especially in tough times.
It’s easy enough to reverse-engineer OEM parts. Make them from the same steels, to the same machining and heat treat specs, and guess what? Cathouse parts perform just as well as the OEM, but at a fair price.
Gotta dance with the partner that brung us!
And besides, even undercutting the OEM’s by half or more, we can still make a higher shop rate in mining parts than we do on the job shop work for local factories.
Just gotta be careful operating and selling in the jungle known as mining...
ToolCat
At this point I really don’t know how much we need to add on to the Cathouse, until all the potential new business settles in, or settles out....lol
Most of our parts are for underground mining, as it is a very “equipment-intensive” form of mining. The machines take tremendous abuse in service, and thus require replacement parts often.
Supplying the mining industry is like everything, it is intensely competitive.
And with the operating bankruptcies of some of the big companies, as a supplier you have to always be on your toes, and work to keep from getting too caught up in a specific customer’s mess.
Fortunately, we have lost just a little money over the years in such a volatile industry....not so for some of our distributors and competitors.
My partner Montie is out every day visiting customers, keeping his ear to the ground for any and all information that helps us stay ahead of the financial “see-saw” that can be the coal industry.
The OEM’s make good parts, and sell them for a mint. The mining companies like the OEM parts because they know they will work well, they just don’t like paying the high prices — especially in tough times.
It’s easy enough to reverse-engineer OEM parts. Make them from the same steels, to the same machining and heat treat specs, and guess what? Cathouse parts perform just as well as the OEM, but at a fair price.
Gotta dance with the partner that brung us!
And besides, even undercutting the OEM’s by half or more, we can still make a higher shop rate in mining parts than we do on the job shop work for local factories.
Just gotta be careful operating and selling in the jungle known as mining...
ToolCat