Is your laser cutting business struggling to win new projects? Are customers asking for capabilities you don’t offer?
This case study explores how a contract laser cutting company added plasma cutting, drilling, and milling to their service offering—and in doing so, overcame revenue loss, improved market relevance, and attracted new customer segments.
The Problem: Losing Business to Offshore and Local Plasma Competitors
The client—a long-standing laser cutting business—had been a trusted supplier in their sector for over 15 years. But things began to shift:
- Revenue dropped by 30% as projects were fabricated offshore
- Clients started choosing local suppliers with plasma and drilling capabilities
- The business model was no longer sustainable
After internal review, the CFO led a strategic initiative to explore market gaps and extend beyond traditional laser cutting services.
Gap Analysis: What Was Missing?
The gap analysis, supported by Specialist Machinery Sales (SMS), uncovered several issues:
- Engineers increasingly specified drilled holes to avoid heat-affected zones from laser or oxy cutting
- Clients didn’t even invite them to tender on plasma/drilling jobs, because they lacked the capability
- Competitors using SMS-supplied plasma machines were winning jobs by offering integrated cutting, drilling, tapping, beveling, and marking
The Solution: Expand Capability with Plasma + Drilling
SMS partnered with the client to:
- Define performance outcomes
- Match a machine specification to market needs
- Ensure commercial competitiveness and sector relevance
The result: the client invested in a combination plasma cutting machine with integrated drilling and milling functionality—carefully selected to complement their existing fleet of lasers.
The Results: Immediate Revenue Uplift & Strategic Growth
With the new capability:
- The client re-engaged previously lost customers
- Won new project opportunities that required drilled holes and tapped parts
- Was able to charge 40% higher hourly rates for plasma/drilling work vs. standard laser cutting
- Expanded into new and adjacent markets, with no additional sales headcount
- Reduced cost of sale and operational expenses
This strategic investment transformed their business model from niche laser cutter to full-service profiling supplier.
Best Practice Takeaways for Laser Cutting Businesses
If you’re running a laser cutting operation and want to grow your customer base, consider the following best practices:
- Conduct a capability gap analysis: Identify what jobs you’re losing and why.
- Track market and engineering trends: Clients now require machined holes, bevel cuts, and tapped parts.
- Invest in the right machine configuration: Choose a solution tailored to your growth goals.
- Partner with experts: Leverage the experience of suppliers like SMS to match machines to commercial needs.
- Complement, don’t compete with, your lasers: Adding plasma/drilling is a strategic extension, not a replacement.
Final Word: Ready to Grow with the Right Machinery?
Our client proved that growth happens when capability meets opportunity. By working with SMS, they aligned their operations with current and future market demands—and reaped the rewards. If your machines and people are ready for both today and tomorrow, how much more confident would you be about the future? Let SMS help you bridge the gap—and win more of the right customers.
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