MAKE OR BUY? 3 QUESTIONS YOU SHOULD ASK YOURSELF

Reinoud Siezen - VP Business Development and Programs

Industrial companies often face that classic choice: make or buy? Logically, this also goes for you as a Tier 1 company. Most interesting about this choice is what you can gain on one side and what you think you will lose on the other side. But how clear is your view on all this?

It’s no secret: we at Aeronamic believe that most of the times, ‘buy’ is the smart way to go for Tier 1 companies. We feel it’s a perfect example of our philosophy “achieve more by doing less”. You have unlocked potential at your fingertips.

Make

First, let’s have a closer look at why we think you’d rather make than buy. Of course, the number one reason is that your technology should be your technology. Manufacturing your own components means you won’t have to share sensitive information. Designs, specifications… you’ll stay in control of it all. Another potential reason, as a follow-up to the first, is that the partner you rely on could eventually become your future competitor. Perhaps it’s good to know that we are fully dedicated to being a Tier 2 company. When you look at our history and our expertise, it’s clear that’s where our strength lies. Besides, we’re used to keeping information classified. For example, Honeywell has trusted us with their sensitive information for the past 30 years.

Buy

Passenger air miles are doubling every 15 years, so production will always be in high demand. If you don’t want to invest in more labor, you will need to outsource. Especially if it’s the type of work that would normally require extensive pre-financing. Then again, the partner you turn to should be able to make these investments themselves. Then there’s convenience: buying up the BOM means less hassle. Your partner gets to take care of logistics and all that’s involved in delivering high speed rotating components and special parts. But most importantly: you gain financial freedom. After all, you don’t have to spend money on ‘the usual’. That means you get to invest in new development. And we all know the impact that has on your company!

3 questions

In the end, it all comes down to money. What do you want to invest in? ‘Make’ means you’re always on top of all your expenses. ‘Buy’can give you more financial space. So what’s the smart choice? Let us help you find your way with these three simple questions:

1. What leads to more revenue: doing more work with your current capacity, or investing in an expansion of your own capacity?
2. What leads to more satisfaction: continuing to do everything in-house, or building a sustainable partnership that leaves you free to pursue business development at other levels?
3. How important is new development to your business?

If you believe in doing more work with your current capacity, and if you feel new development is smarter than continuing to do everything on your own… then it’s wise to discover the options you have. Logically, we see ourselves as the ideal partner. But it’s up to you to find out how you can achieve more by doing less. Either way, we’d be happy to answer any questions you might have. Did we miss a reason? Tell us!ShareTweetShare Email