Product Line Acquisition Drives 3X Expansion

Product Line Acquisition Drives 3X Expansion

Situation at Hand

An aerospace hydraulic components manufacturer was diversifying its hydraulic pumps & motors product line through acquisition. These products were designed, manufactured and sold for use on both commercial and military aircraft. Under pressure to continue supporting customer demands while also physically relocating, the company needed to reorganize manufacturing CNC machines, the hydraulic test cells and all associated support equipment, CNC programs, and a number of employees.

Problem to Solve

A tactical plan was needed to relocate CNC equipment, transfer WIP and finished goods inventory, relocate and orient current employees, and interview and select new employees. The primary problem that required immediate attention was to reallocate physical assets and setup CNC machines, hydraulic test cells, and CNC programs. In addition, the hiring, orientation, and assimilation of transferred employees in various functions was needed. Finally, it was crucial to ensure the attainment of on-time deliveries, superior quality, and cost controls.

Approach and Solution

A strategic plan was developed to address several mission critical activities. Subject matter experts were dispatched to drive technology and physical inventory transfers. Additionally, a cross-functional team was assembled to develop shop routings, and assembly and test instructions. The employee count increased from approximately 50 employees to almost 180 employees over a 6-month period. An outside firm was brought in to assist with the recruitment process and interviews of candidates. Lastly, terms with customers and suppliers were negotiated to ensure schedule and cost attainment.


3x growth…in revenue over 18 months

30% growth…in operating income

Customer base increased from 40 to 60

If you would like to be introduced to this Advisor, contact New Discovery.