It's hard looking in the mirror.

Why is it so hard to look in the mirror and give an honest assessment of ourselves? We scratch and claw every day in our personal and professional lives trying to get ahead, but rarely, if ever, do we stop, take a step back and question whether we are heading in the right direction, achieving the results we desire.

The same can be said about our metalcasting operations and supplier organizations. How often does your firm look in the mirror and ask the difficult questions about its present and future?

At a recent National Association of Manufacturers seminar, "Real World Strategies for Competing in a Global Marketplace: A Blueprint for Small and Medium Manufacturers," one speaker detailed the importance of self-assessment in today's global marketplace. She asked the group, "Where do your products fit in the three tiers of competitive position?"

1. Sheltered--businesses or product lines that have a competitive advantage vs. low-cost competition or have carved out protected positions within industries or markets under pressure;

2. In Danger--businesses or products that face strong pressure from low-cost regions with no clear competitive advantage. They are likely to lace a slow death unless a sheltered position is found;

3. Gone--for the most part, production has already migrated to the low-cost regions.

According to the speaker, products or parts in the "Gone" position meet the following conditions:

* proximity to the customer base does not provide an advantage as the product is easily shipped (not easily damaged, not bulky, etc.), long leadtimes are acceptable, low levels of mix/variation and little to no customization;

* products are easily manufactured with low complexity and quality and high unskilled labor content;

* products are ordered in high volumes;

* products require little to no engineering/design interaction with the customer, making it a commodity.

Ask yourself, what is your competitive position? Where do your products fit in? Where do your major customers stand? Where does your industry fit? What are the implications for your company?

We don't like to ask these questions because it is difficult to be honest--even to ourselves. But as we read and hear in the mainstream media every day, the world around us is changing faster than ever. Timelines in business have gone from years to days. Firms (regardless of industry) must be able to anticipate their customers' desires and be proactive in decision making, never letting the customer see them sweat. Firms must be able to forecast the next business cycle and/or trend and adapt their operations to be in a competitive position.

Is there any shame in the fact that our metalcasting businesses have had a tough time keeping up with the changes and adapting to a stronger position? Does it make more sense for your firm to stay on its current course and possibly sink with the ship or take a 180-degree turn and refocus its strategies on a path that might lead to future growth?

According to the speaker at the seminar, the key to firms with sheltered positions is that they employ a combination of strategies to provide higher customer value that low-cost competition can't and target a niche that is difficult for low-cost regions to compete in. The key question is: What is your firm's hidden asset and who else would be interested in it? Instead of asking who else would buy your current widget components, is there a new market to target your capabilities for future growth? Can you cultivate an ability to pour unique alloys? Can you produce castings with leadtimes less than two weeks? Do you offer conversion design assistance? Do you offer machining, painting and assembly services in-house?

The key to this unique niche is that your customers must need it and must be willing to pay a premium for it. If they can find the service everywhere, then it isn't unique and not worth an extra penny.

Can you start this unique niche tomorrow? Maybe, but more than likely there will be a learning curve to production start up. Then, there will be a period required to market the capability, to your current customer base as well as the new customer base this capability has opened the doors to.

When we look ourselves in the mirror, we see ourselves how we want to be seen. The truth is that we need to see ourselves as our customers see us. Only by seeing what they see will we be able to adapt to what is truly needed in the marketplace.