Dwindling sales make company diversify to reduce its reliance on automotive sales
New York: Vortech superchargers have been popular over the years with enthusiasts seeking powerful automotive engine boost. But what the company now wants more of these days is customers.
Their signature supercharger kits for cars and trucks are sold through big online suppliers and can cost $2,000 (Dh7,345) to $8,000, not counting installation costs, And that's proving a tough sell in a troubled economy, said Vortech's founder and president, Jim Middlebrook.
Sales at Vortech are projected to total $11 million this year, down from a high of $18 million in 2007, according to Middlebrook. With 52 employees, the company's workforce is about half what it was four years ago. "It's a discretionary purchase and it's expensive," Middlebrook said. The US economy may be stumbling, but the 63-year-old Middlebrook isn't slowing down or getting out of the business. He's diversifying to reduce Vortech's reliance on automotive sales.
The company has a unit that makes compressors for industrial uses, such as deicing aircraft without chemicals. Those products account for about 10 per cent of Vortech sales, a percentage that Middlebrook is looking to double by next year.
"When the economy comes back, yes, we will sell more superchargers, but I think we are going to see more growth in those other areas," Middlebrook said. Vortech's main competition is Eaton of Cleveland, a $13.7-billion industrial heavyweight with powerful automotive connections.
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