How well should you know your competitors?

A few years ago, I started a lunch group in our town; people working for manufacturers that made robotic, assembly, custom and standard automation equipment. These are the machines and systems that manufacture everything in different industrial sectors from automotive, medical device, pharmaceutical to computer, consumer and semiconductor automation equipment. Our town is chock full of robot integrators, toolmakers, mechanical and electrical designers, vision and PLC programmers, sales professionals, service, support and factory automation experts. We call ourselves the Advanced Manufacturing Engineering Network or ADMEN for short. 

I started this group to help promote our area talent cluster in robotics, automation and integration and show that we are one of the leading places to have a business focused on building capital automation equipment.

The one thing that the automation community and the members of the group have as a challenge is human capital. Land, buildings, processes are all easy. Finding, recruiting, training and keeping talent is the hard part. The good news is: the industry is fascinating. One day you are working with a major consumer brand, the next day a medical device project or a next generation battery car company. There’s never a dull moment.

I recently invited an engineer/business owner to our quarterly lunch and his particular response to the invitation threw me for a loop: “Why would I want to have lunch with my competitors?” I was stopped in my tracks and must have stuttered back something like; “Why wouldn’t you want to get to know your competitors?”.

If I had my time back this is what I would have replied:

"Good competition makes an industry better. Knowing your competitors and their strengths makes your industry stronger. And knowledge is power."

Our area is strong with start-up companies and many of these new companies appreciate the opportunity to network and pitch their products during our networking lunches. Breaking bread is a great way to foster customer relations, but also partnerships and community connections. This is not a Madmen three-martini lunch. There are no secrets being told. We are all very respectful about customer confidentiality, projects and products.

Knowing your competitors’ strengths, weaknesses and market focus can help you better explain your competitive differentiators to your prospects and customers. Maybe your perceived competitor is in fact not your competitor and could be a partner.

Imagine that you need to cooperate on a big project or opportunity that you cannot do alone. In the machine industry it often happens that you may need to reach out to your local network to make a project happen. Companies sub out work or programming, lend out toolmakers or service people. They do this because they have personal relationships based on trust. That person you are having lunch with may want to work with you someday, or you for them, or possibly even start something new.

In my marketing career, I always made it a point at major trade shows to get to know our competitors. Crossing the aisle and meeting that new salesperson, or new marketing person was important and intentional. It may have sent mixed signals to my bosses at the time, but many of those people have become lifelong friends, have worked or consulted with me or even become clients. The cost of getting to know each other better is only time but the value of getting to know your competitors better is priceless.

Like this post? Consider sharing to your network.

Jim Beretta is a strategic marketer to the robotic, automation and machine builder community located in Cambridge, Ontario. He consults companies, manufacturers, associations and tech start-ups across North America and Europe.