The world is coming at you; get ready

It might be easy to think that a local welding shop is insulated from the effects of global trade and competition, but more and more there are warnings about how quickly markets are changing — and how fast you need to react to stay ahead.

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In today's truly global marketplace, being competitive requires willingness and ability to change. Anyone who doesn't change is going to be left behind.

We talk in this issue about products and technologies that can be used to "tune up" a shop's operations — to make it more efficient, productive and profitable.

If the specific products and ideas we highlight aren't right for your operation, you should be thinking about alternatives — because someone else is, whether they're down the street or across the ocean.

It used to be that only large corporations were concerned with things like best practices, product life cycles and speed-to-market. But I heard an economist in early February say that even mid-sized and small companies are now paying attention to those issues; they are worried about increasing speed to market with new products. Many are starting to boast — as large corporations have done — that the products they are selling today are not the same products they sold five years ago.

Such a comment may be easy to dismiss, considering that the "product" for welding shops is most often service. But the excuse of changing product is too simple, and doesn't take into account the changes toward globalization that have happened in the past few years.

Information and business is flowing around the world because of the Internet, and borders aren't barriers to trade any more because of free trade agreements. I receive requests for quotes on welding equipment from all parts of the globe almost on a weekly basis, and frequently see offers of welding services from China.

I can't imagine that someone would send a part of a large grader or a truck or some other piece of equipment to China to have it welded, but the implication is there: Someone with a welding business in China, in Vietnam or in India is willing to do a job that's being done here, and it's likely they'll offer to do it for less.

Even if that doesn't happen, there are plenty of other competitors — maybe just across the street — who are driving their processes to higher levels and making their operations stronger to put themselves into a position to compete with anyone in the world.

I'm not talking about buying a new robot or investing in new equipment, although that can be a part of it. I'm suggesting that there are less complicated solutions that don't mean applying for a new line of credit.

Are you buying the right amount of materials and consumables at the right time? Are your processes laid out so they give you the best flow through your shop? Have you recently evaluated the job you've done for the past five years to figure out where you can find timesaving or money-saving improvements?

Those are the easy, low-investment changes you can make that can tune up your shop and put money on the bottom line.

For so many companies in this industry, business is good right now. You can be contented about that, and believe that it's not as important to "sweat the small stuff." But fortunes turn quickly these days, and complacency is your enemy.

One of the observations that made the humorist Will Rogers great was: "Even if you're on the right track, you'll get run over if you just sit there."

It's good to keep that in mind.

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