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Successful Business Diversification Strategy

It was great to read the Manchester Evening News story about a local successful business diversification strategy from Heywood manufacturer Gilwood.

Gilwood first opened in 1963 to produce stainless steel vats for cloth manufacturers based around Rochdale. You might have expected the business to go into a terminal decline as the textile mills closed down, but the family owners weren’t prepared to let that happen as they had invested time and money in their business over the years.

What Did They Do?

They kept their eye on the market and found new ways to use their expertise and facilities. Ongoing investment in state of the art equipment enabled them to meet new customer demands effectively. Today, they supply bespoke steel pressure vessels to companies in a wide range of thriving business sectors including biotechnology and food.

As a result, Gilwood have maintained a healthy turnover of £2.6m over the last few years, and export their products across the world.

Why don’t More Business Succeed?

Sadly, not every business makes such a successful transition if their traditional markets decline. Suppliers to a niche sector often fall by the wayside when their core business disappears. If you supply a narrow market base, what steps are you taking to make sure your business could survive should that market fail?  Have a look at our best business practice tools for further information.

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