Cumberland Metal Industries (CMI) is a company that manufactures various
metal products. They are considering introducing a new product called the
cushion pad, which has a lot of potential and could significantly increase
the company's sales. The cushion pad is used in the process of pile driving,
which involves driving piles into the ground using a hammer.
The cushion pads are important because they prevent damage to the
hammer and the pile by absorbing the shock of the hammer. Previously,
hardwood blocks and asbestos pads were used for this purpose, but they
had limitations such as poor performance and frequent replacement.
CMI developed a new type of cushion pad using curled metal. Curled metal
is a flattened and wound metal wire that provides three-dimensional
resiliency. The company calendared the curled metal into a thick pad,
wound it tightly around a metallic disk, and coated it with polyvinyl
chloride. This manufacturing process allowed them to produce cushion
pads of various diameters from the same band of curled metal.
To test the performance of the CMI pads, they conducted a trial with
Colerick Foundation Company. The trial showed that the CMI pads drove
piles faster and lasted longer compared to the conventional asbestos pads.
However, there were concerns about the performance of larger-sized CMI
pads.
The pile-driving industry traditionally owned their hammers, and
contractors used different types of pads based on their preferences. CMI
saw an opportunity to capture a significant market share by offering a
superior alternative to existing pads.
The introduction of the cushion pad has the potential to greatly increase
CMI's sales and compensate for the decline in other product lines. However,
pricing and marketing strategies need to be carefully considered to
maximize the impact of the new product.
Overall, CMI is optimistic about the cushion pad's potential and wants to
explore opportunities to sell it to Colerick Foundation Company and other
contractors in the pile-driving industry.
Cumberland Metal Industries (CMI) is considering introducing a new
product, curled metal cushion pads, which have shown promising results in
preventing damage during pile driving. The company, known for its
innovative approach, sees this product as a potential game-changer that
could significantly boost sales.
These cushion pads are essential in the pile-driving process, absorbing the
shock from the hammer and preventing damage to both the hammer and
the pile. While traditional materials like wood and asbestos have been used,
CMI's curled metal pads offer superior performance, durability, and safety
benefits.
Initial tests conducted by Colerick Foundation Company and Fazio
Construction have shown impressive results, with CMI's pads outperforming
traditional materials in terms of driving speed, durability, and safety. The
pads maintained their resilience throughout the entire job, eliminating the
need for frequent replacements and reducing downtime. Additionally, they
operate at lower temperatures, enhancing safety for workers.
The potential market for these cushion pads is substantial, with thousands
of pile hammers in operation across the country. CMI estimates that a
significant portion of these hammers could benefit from their product,
especially considering the growing concerns about the health hazards
associated with asbestos pads.
However, pricing and distribution strategy pose challenges for CMI. While
the company is confident in the product's quality and performance,
determining the right pricing strategy and reaching potential customers
effectively are crucial for success. Additionally, competition in the market is
minimal, but educating customers about the benefits of curled metal pads
may require significant effort.
To address these challenges, CMI is considering various distribution
channels, including direct sales and partnerships with construction-oriented
manufacturers' representatives. The company aims to establish itself as a
trusted provider of cushion pads and differentiate itself from traditional
suppliers.
In conclusion, CMI's curled metal cushion pads have the potential to
revolutionize the pile-driving industry. With superior performance, safety
benefits, and a large potential market, the company is poised for success.
However, effective pricing, distribution, and marketing strategies will be
essential for realizing this potential and establishing CMI as a leader in the
industry.
