A roadmap for the US metalworking market opportunity

A manufacturing company wanted to find market opportunities in the US metalworking industry

Image: The US metalworking market opportunity

The Challenge

The manufacturer needed clarity on its target audience

The manufacturer needed a segmentation study of the US metalworking industry. It would be used to inform its product roadmap, strategic investments and distributor strategy in the US metalworking market over a 5-year horizon.

However, the metalworking market is complex with multiple types of processes. It was unclear who exactly was responsible for buying decisions across various customer profiles, including wholesale distributors and B2B end-customers. A B2B market research agency would first need to parse out the different customer journeys for metalworkers.  

Our Approach

Mapping the metalworking market

We split our approach into two phases. In an initial qualitative phase, we conducted B2B customer journey mapping for buyers of consumables in the US metalworking market. The qualitative research was then followed by a quantitative survey of 625 metalworkers to quantify those insights.

We started by conducting in-depth interviews with 15 metalworkers who were decision-makers in the buying process. These metalworkers were recruited from across different segments of the US metalworking market to ensure a wide range of views. They provided insight into the use of consumables in metalworking processes and how they make purchasing decisions. The flexible, open-ended discussions allowed us to home in on important nuances, such as the potential for automation to change the use of consumables.

These qualitative insights informed the questions for a quantitative survey. The survey gauged the importance of different attributes for consumables among metalworking buyers. We also measured the brand awareness of our client and its competitors across the US metalworking market. The survey was conducted by telephone to ensure that all the respondents qualified as metalworking decision-makers.

In our analysis of the data, we developed a segmentation model using latent-class clustering. The model broke the US metalworking market down into clear segments. These segments were based on organization size, type of metalworking processes, use of products and consumables, production environment and purchasing criteria.

From this segmentation, we identified where there was customer demand and market opportunities in the US metalworking market for our client.

The Insight

Clear strategy for US metalworking market opportunity

Our research identified two segments in the US metalworking industry as a key market opportunity for our client. There was also a third segment that offered the potential for market opportunity in future. For each segment, we outlined the reasons for the market fit, customer needs, market challenges, the best methods for customer engagement, and how to market to those customers.

Our insights provided the groundwork for the US manufacturing company’s 5-year strategy for its growth in the metalworking industry. This included a product roadmap, strategic investments, and a marketing plan targeted toward wholesale distributors.