The Story Behind Our 37-Year-Old Ceramics Manufacturing Business
Hello! Who are you and what business did you start?
International Ceramic Engineering was founded by Merrill W. (Bud) Higgins and his two sons Jay Higgins and Andy Higgins in February, 1987. This family owned and operated business has grown significantly over the years. We now have two manufacturing facilities in the United States and we sell ceramics to clients all over the world.
What's your backstory and how did you come up with the idea?
Before starting our company, we saw there was a need for a technical ceramic manufacturer that specializes in custom products and problem solving. The big companies were not very responsive to clients with smaller volumes. We also perceived that technical ceramics, while more costly than conventional metal products, were more cost efficient in the long term.
Along with my two sons we put together a business plan to machine ceramics for custom applications. We kept our start up costs low and pooled our resources and started in a very small rented space. We know if we were able to provide solutions to clients in need, we could enjoy higher margins than manufacturing custom products.
International Ceramic Engineering specializes in the design and manufacture of unique components. Our primary objective is to provide these components and associated services in a manner that ensures consistent and reliable performance. Quality is our commitment to our customers. The quality process is monitored from design to completion to guarantee an integrated and controlled process.
This process yields components of the highest precision, accuracy, repeatability and quality. ICE offers a broad range of advanced ceramic and performance plastic materials. Our materials experts are available to help determine the most cost-effective geometry for your advanced material requirement.
Take us through the process of building the first version of your product.
Lots of trial and error but we had some experience in this field and knew there was a need for a better solution and supplier. I worked with my brother to get the company started and by providing quality products at a competitive price we were able to grow. The key was to make our promised deliveries.
Since we were a custom shop, inventory was low and the value add was high. Our first client was a wind turbine company that had an issue with metal bearings wearing out and the downtime and replacement costs were very high. Our ceramic replacement greatly reduced the end users total cost since the product life was so much greater. We know we had a market and a fit in this area after this project.
Describe the process of launching the business.
We pooled our own money to start and then received a small working capital loan. We had growing pains and short term cash issues but we managed. Finally we built our own facility through a loan with a local commercial bank.
Since launch, what has worked to attract and retain customers?
We worked mostly with direct internal salespeople. We knew who our target customer base was and sold directly to engineers and purchasing agents. Today the world has changed and while we still employ direct sales, we are working hard on SEO and Google Ads.
We also published dozens of YouTube videos to attract clients and showcase our company and skills. Our main focus is on SEO and ranking high for specific keywords that engineers and procurement professions would use such as “technical ceramic manufacturer” or "green machining ceramics”.
It is very difficult ranking against much larger competitors so we put our resources into very specific areas.
We take the same approach with AdWords of being very narrow and specific on the types of terms we bid on. We focus on quality and conversions and not clicks.
Some clients will not be repeat customers since it is a one time need but most customers will have repeat orders. Getting our product specified at the OEM is the key.
Focus relentlessly on your customers and listen.
How are you doing today and what does the future look like?
We are profitable and spending more money on SEO and Google Ads. Having technical sales people is still the key. We make custom products in various industries so technical sales is key. Our return on online ad spend is difficult to measure since we are a custom shop. One client might be worth five figures or more for the correct application.
Short term goals are to grow at 20% without sacrificing gross margins. Finding skilled labor is one of our major challenges. Skilled machinists are in high demand as salary costs are rising. Attracting and retaining a motivated skilled workforce is our major challenge today. Luckily we have great employees but need more workers to manage our growth plans.
Research your market in depth and be realistic of the start up costs and the true cost of acquiring a client.
Through starting the business, have you learned anything particularly helpful or advantageous?
Know your market and deliver on what you promise. We are lucky in that we are a family business and decisions on growth and new markets are discussed openly and decided together.
Also, never underestimate the cost and challenge of attracting clients, especially if you are a niche manufacturer.
What platform/tools do you use for your business?
Most of our shop software is custom as well as our ERP. Office tools are standard Microsoft products. Our internet marketing is outsourced and custom. We use UPS and LTL carriers for freight.
What have been the most influential books, podcasts, or other resources?
7 Habits of Highly Effective People has been my favorite book. I wish I had more time to listen to podcasts. Keeping apprised of our industry and trends takes up most of my time.
Advice for other entrepreneurs who want to get started or are just starting out?
It’s scary but you just need to take the leap. Get a lot of input first from mentors and others who have done it. Focus relentlessly on your customers and listen. The key to our success is in understanding the needs and technical issues our clients face and providing a solution. Without in-depth conversations and a deeper understanding of their business, we will miss the mark.
Also, take care of your employees. Employee retention is key for us, especially in this climate and the competition for skilled labor.
Research your market in depth and be realistic of the start up costs and the true cost of acquiring a client. As a friend said to me, “Nothing happens until someone sells something”.
Are you looking to hire for certain positions right now?
Always looking for experienced machinists. There is a shortage of skilled labor in this country. We need to focus on tech schools and promoting manufacturing jobs. This is no longer an unskilled labor situation.
These are highly technical jobs that pay very well and are very steady. There has been too much focus on a college degree and not enough on the opportunities in the trades. Applicants can apply here.
Where can we go to learn more?
If you have any questions or comments, drop a comment below!
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
