Ann Arbor’s Nagel Precision leads way for manufacturing diversification

Lots of manufacturers parrot the virtues of diversifying their product portfolios. Ann Arbor-based Nagel Precision talks the talk and walks the walk with its expansion into the aerospace and medical device sectors. The move has allowed it to expand operations at a time when many automotive manufacturers are shrinking and disappearing. Excerpt:Michigan’s manufacturing ingenuity is still very much alive at Nagel Precision.Since 1982, the U.S. subsidiary of Germany’s Nagel Group has been building high-volume honing machines for automakers and their suppliers at its factory in Ann Arbor, shipping many orders to customers in Europe and Asia.Honing machines are giant, million-dollar-plus, custom-designed pieces of equipment that improve the shape and the surface finish of gears, connecting rods and other parts that go into engines and transmissions….Despite being a dominant player in this market, Nagel knew it needed to diversify, a goal that became more urgent as auto sales took a dive in recent years. So today, the company has begun selling a line of less-expensive, smaller honing machines called the Eco Series. They are geared toward low- and medium-volume production for small auto suppliers, auto racing teams and companies in expanding, nonautomotive industries such as aerospace, medical devices and industrial equipment.”We want to capture that growth,” said Sanjai Keshavan, manager of Nagel Precision’s new Eco Hone division. “If you’re not diversifying, it’s suicide.”Read the rest of the story here.