Today we visited Sandvick, a manufacturing company that produces metal cutting objects. The specific plant we went to accounts for about 10% of the productivity in manufacturing throughout Sandvick. The company was started in Sweden over 150 years ago by a man who invented a machine that could mass produce metal objects. The interesting thing about the company we visited today is that they are not selling directly to customers. Sandvick’s manufacturing plant in Mebane ships its products to a central hub in America where the items are put together and sold.
The mission of Sandvick is to produce quality items that help their customers become more profitable. It would seem as if they have been successful with this considering they are the best at what they do. Sandvick might not be the cheapest product on the market but they are of the highest quality.
The quality of Sandvick’s goods is why they are so successful. The customers of Sandvick, those who cut metal, care about the incredible quality of their goods. Sandvick is an extrememly international company and they need to continue to be the best in their industry.
The results Sandvick are getting are pretty incredible. In 150 years of business they have only had 2 years that were not profitable. 2008, during the recession, and some time before that, which I assume was during the great depression. Overall the firm we visited averages a 5% profit every single year while other aspects of the company make as high as 17% profits. Most companies have a life span of about 40 years and so to have lasted this long is pretty incredible.
In the future it seems as if Sandvick is working on their manufacturing placement. Depending on what is being produced different countries are better for the manufacturing. As China develops it seems that they will probably produce more in those countries although it will depend on the development of those countries. Due to the weight of so many of Sandvik’s products it makes them expensive to ship and so it makes more sense to produce products closer to where they are being sold.
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