Innovation in Progress

Allegheny Students

(From right to left) Dr. Stephen Onyeiwu, Matt McLamb, Mark Hanaway and Melanie Furey examine tool & die industry reports.

Students, Economics and Growth Drivers in the Tool & Die Industry

July 2009------During the last seven years and the most recent economic crisis there have been unprecedented challenges faced by manufacturers, in particular, the tool & die industry in Crawford and Erie counties of Northwestern Pennsylvania. Despite these challenges, some companies are not only surviving, but thriving. So, of these firms, why are they doing so well? What are they doing differently from others? What unique assets or capabilities do they have that have aided them in their success?

These are just a few of the questions posed to Tech Molded Plastics’ Director of Marketing & Sales, Mark Hanaway during a recent fact-finding visit by a team of Allegheny College Economics students.

"Successful companies understand the value of fundamentals. Thriving in a poor economy requires practices that safe-guard earnings, controls growth, and builds value," stated Hanaway. "Investment in operational efficiency and marketing during an economic down-turn provides the greatest opportunity to capture a greater share of new business."

The students are part of Dr. Stephen Onyeiwu’s Economics research project that focuses on identifying and analyzing successful tool & die firms in Erie and Crawford counties and then comparing collected data to identify and leverage growth drivers. The students hope that the information they collect will help increase communication and information sharing across the local industry to help struggling firms.

The students have held meetings with representatives of over 28 area tool & die companies. The team has selected companies of varying sizes and industry end markets in order to get a good sampling that is representative of all area firms.

Tech has developed a management style that includes tactical reinvestment plans for periods of recession and for economic expansion. While others in the industry are balanced on a financial thread and barely treading water, Tech is investing in new equipment, lean operations, and skills training. "We recognized a long time ago that financial strength and the core values of technology, techniques, and training support the foundation for success," said Hanaway.

Matt McLamb, a lifelong Meadville resident and member of the Allegheny team stated, “This has been a great experience for me. Coming from the Meadville area it is great to study a local industry and subsequently provide those local firms valuable information.”

Melanie Furey, a Cleveland, OH resident and member of the Allegheny team states, “At the beginning of the project, my goal was to explore possible topics and research material for my senior project. However, now after visiting several firms my perspective has changed. My goal is still to develop subject material for my senior project but it has expanded into reconnecting with Meadville and to develop a key understanding of what sustains Meadville's economy. As an out of state student, I have truly enjoyed learning the history and development of the industry. I have expanded my knowledge on manufacturing.”

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