The company invested heavily in add-on services and products, making the production process seamless for their customers and increasing revenue on existing parts by up to 400% overall.
CEO Eric Meyers Sr. said, “We needed to look outside the box. We knew that we could sell oil castings all day. The question that we needed to answer was what were our customers doing after they got our castings?” It was the answer to that question that Eric sees as being the biggest contributor to Oil City Iron Works’ growth since 1985.
Eric and his team began to research their customer experience and develop add-on products and services so clients wouldn’t need to outsource after they purchased the castings. As an example, Eric said, “We have a customer who purchases a gas compressor engine part that is a ni-resist casting. This customer used to ship our part to four different vendors after it was purchased. It would get heat treated, then off to a machine shop, then coded, and finally it would be shipped somewhere else for quality control. Today, we provide all of those services from the same location after the casting is complete. It not only increases our revenue on that part by 400% but it also saves the client 150% on original costs.”
Today, the company remains committed to its core business, but when there is an opportunity to invest in add-on services, Oil City Iron Works pounces. As Steve Spradlin, VP-Controller, said, “If we can offer a turnkey casting, with heat treating, surface coating, machining and nondestructive testing, we can eliminate the cost of poor quality to the customer and save them on freight to various downstream add-on service providers.”
It’s a win-win and has been Oil City Iron Works’ formula for expedited growth since the Meyers family took over.