Every business owner understands the need to diversify. Many manufacturing shops originated as small moonlighting enterprises, making just a few parts for a single customer, and building a thriving business from such a small foundation certainly can be a matter of pride. However, continuing to rely too heavily on a single customer or a single industry is not part of a sound business plan. Lisa Wertzbaugher, one of the columnists whose work appears regularly in The Tube & Pipe Journal, provided some insights and tips for researching diversification opportunities in her March 2020 column.
Likewise Larry Rouse knows a thing or two about diversifying a business. He actually runs three businesses under one roof, a trio of companies that share space, expertise, and processes. In a nutshell, he runs one high-volume, low-mix manufacturing shop; one low-volume, high-mix fabrication shop; and a powder coating company that supports the other two. Located in Waynesboro, Va., the companies are Global Innovative Defense Inc., Southern Stainless, and Powder Coating Solutions.
While it sounds like he runs a diversified trio of businesses, Rouse isn’t content with the status quo. As a successful business owner, he pays more than just lip service to the concept of diversification. A recent investment shows that he doesn’t just talk the talk—he walks the walk.
Read more: Sheet metal fabricator develops full-fledged diversification strategy