A SILVER LINING IN TOUGH TIMES

The secret to surviving and even thriving during a recession is recognizing and pursuing opportunity. During good times, most companies just continue what they?re doing, and that?s typically enough. Opportunity may come in the form of simply doing more of what already works.

In bad times, opportunity comes by abandoning things that no longer work and finding new things that do, based on new market needs. Recession can be a great opportunity for those who choose to see it that way. That opportunity may include adopting technologies that make you more flexible and better able to meet the needs of different customers. So, yes, there is a silver lining, if you?re able to take advantage of opportunities that present themselves. You?ll need to be light on your feet, open to change and able to meet a variety of customer requirements. But the opportunities are there.

Companies with waterjets are not immune to recession, of course: at least one waterjet manufacturer has already gone out of business. However, many waterjet users have increased their purchase of spare parts and are buying entire systems. Some are making their first waterjet purchase; others are supplementing their existing systems. Why? To expand their capabilities with systems that provide even quicker turnaround times, work on different batch sizes, and do all of this at a lower cost than alternatives.

Whether used as part of your own manufacturing process or acting as a job shop for others, waterjets provide a unique position for business growth. Because they are more versatile than any other process and provide exceptional flexibility, they can expand your capabilities for current customers and allow you to enter new markets. A waterjet opens up the ability to easily cut a wide variety of materials, such as rubber, glass, steel, aluminum, composites and laminates. If you currently cut sheet metal for a customer, for instance, you can grow your existing business with a waterjet by cutting thicker parts or other materials.

A waterjet increases speed and ease of use compared to its alternatives, making you more responsive to customer needs. One setup can be used for many patterns, materials or thicknesses. In addition, a waterjet:
? Provides quick turnaround times; it?s easy to program and sets up quickly.
? Has little need for expensive tooling or fixturing.
? Uses a cold-cutting process: thus, there?s no heat-affected zone to affect the material.
? Can slash the total time to create a part because grinding isn?t required.
? Does not produce dangerous fumes that require venting.
? Eliminates waste, allowing you to nest closely parts to make the most of the material. You get chunks, rather than chips. Larger pieces are more valuable to scrap dealers, and you might even be able to use those pieces for other parts.
? Doesn?t require large batch sizes to justify cutting parts.
? Makes it easy to increase the cutting pressure to cut faster, stack materials or to add multiple heads.

Who benefits from this?
? Aerospace companies, especially those who use aluminum, titanium, and composite materials that don?t do well with laser cutting. A waterjet is ideal with these materials and cuts titanium even faster than it does steel.

? Construction markets. There is always a demand for artistic and architectural materials made of stone, marble, granite, and glass, areas ideal for waterjets.

? Military contractors. The military has identified a number of armor plating designs that protect troops in various theaters. The plating?s material and thickness are fitted uniquely to a waterjet?s capabilities.

? The energy industry. The oil and gas industry is still going strong and will continue to need repair parts and equipment, and the speed and versatility of a waterjet will increase your ability to meet the demand.
? Other industries, from the food industry to infrastructure development . . . basically any industry that can benefit from increased speed, decreased waste and improved ease of use. A waterjet can be cutting steel or aluminum one minute and can be cutting gaskets two minutes later.

The beauty of a waterjet is that you don?t need to turn away work because it?s a short run or uses non-conventional materials. Waterjets are fast to set up, and they cut through virtually any material. We know of one waterjet user that does a repeat job involving quarter-inch thick plates. They blank out a part and leave .030 in extra per edge for machining. The process uses 65-70 percent less material than traditional methods. So rather than performing one run for $16,000 in raw materials, they get three runs for the same cost.

With lower interest rates and a good credit rating, the cost of money is better than it has been in years. There are a variety of resources available to help you put together business plans and strategies for obtaining a loan and marketing your business. Many of these resources are on the web, and they?re free.

For example, the Small Business Administration?s (SBA) goal is to help you be successful and grow your business. Small Business Development Centers provide management assistance. SCORE provides a free and confidential service that links you with experienced business people who will share their knowledge with you. The Women?s Business Centers were specifically established to help women start small businesses. On the web, the small business development training network is a virtual campus that walks you through how to write a business plan or how to set up a marketing campaign.

In addition, there are tax benefits available to many waterjet buyers, from standard depreciation to other opportunities. Check with your accountant. Flexible lease, loan and trade-in options may also be available. There may never be a better time to add a waterjet to your capabilities.

In order to be successful in good times and bad, you must keep your customers coming back. You do that by providing higher quality, quicker and more responsively than your competition. A waterjet gives you that edge.

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Marjorie Millay is a product manager and Darryl Schoen is the vice president for financial services at Flow International Corporation, 23500 ? 64th Avenue South, Kent, WA 98032, 253-850-3500, Fax: 253-813-9377, www.flowcorp.com.