Is it wise to seek supply commitments from big OEMs before investing in a new factory?
OpenA third-generation family business in the Indian forging and machining sector is debating whether to pursue contracts with large original equipment manufacturers (OEMs) before launching a new factory. This comes after a long period of reduced operations in their agricultural machinery segment.
Why it matters for your shop: Small shop operators should consider the potential risks and rewards of aligning with big OEMs, as it could impact their reputation and relationship with existing customers. Making strategic partnerships can provide financial security, but could also create dependency.
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