Marketing Strategy 2005 Orchid International Marketing Strategy 1

PURPOSE & MISSION

Orchid International has traditionally operated with a short-run business and marketing strategy, taking advantage of possible opportunities and handling potential threats as they were encountered. The absence of a long range business strategy means Orchid International has had to be more reactive in terms of acquisitions and sales, product and service offerings, and customer acquisition and retention activities for example. Still, Orchid International has achieved significant success since its founding in September 1988, reaching the $150 million mark in annual sales in 2004. Much of the credit must go to the entrepreneurial spirit, tenacity and salesmanship of the executive team, CEO Grant Bibby and President Steve Gruver. The executive team recognizes the importance of a detailed, long range business plan and has started the process of collecting data and formulating this information in an effort to support continued growth and to maximize the efficiency of the company. In doing so, Orchid International can and should be better able to proactively manage change to reach clearly defined expectations, goals and objectives. A detailed marketing strategy is a vital component of an overall business plan. The information contained in this strategy, in conjunction with information from other key areas, should help lead to the development of a solid, long range business plan for establishing Orchid International as a leader in the metal stampings and assembly industry in North America. This marketing strategy will help identify and then outline how to better communicate the value of Orchid International to its targeted markets through a comprehensive and well-defined program of marketing and communications activities. Of utmost importance for 2005-2006 is working to build Orchid International’s brand identity and generate awareness in select targeted industries including automotive, electric motor and transformer, lawn & garden, and appliance. Building awareness will remain a priority beyond 2006; however, by then Orchid International’s marketing efforts should begin to establish the “leadership” of the company within the metal stamping and assembly industry by honing its message. Orchid International Marketing Strategy 2

As we enter into the second half of 2005, numerous tools will be developed and introduced, including: new marketing literature, an updated web site (Internet with Intranet capabilities), a modern trade show booth and promotional items, a company- wide consistency and style manual, quarterly company e-newsletter, targeted e-mail releases to consumers, public relations initiatives and online advertising.

Mission & Value Proposition To guide the overall marketing strategy, and ultimately the business strategy for the company, the following Vision/Mission/Values statement and value proposition were developed. These statements define who we are as a company and why we are in business. These statements hold meaning now and project where we intend to go in the future. By holding ourselves accountable company-wide to these statements, we can ensure that we are staying true to our business strategy and utilize them as gauges in our progression toward our company goals (to be defined in the business plan). These statements, once validated by the executive team, should be seen as components of the long range vision for Orchid International, and should not be dramatically altered year after year. The Orchid International mission statement and value proposition are specific, measurable, attainable, relevant and trackable. All communications coming from the Marketing and Communications Department should convey these messages to both internal and external audiences. The following assumptions were made in the development of the proposed Vision/Mission/Values and value proposition statements: • Orchid International is keenly interested in continued growth (expansion of facilities/products/services, acquisitions, investments) as a provider of metal and laminations stampings and assembly products and services in North America. As the goals and objectives component of the business strategy are yet to be set, a 5-year (2010) sales volume goal of $500 million was considered attainable and reasonable based on Chris Strong’s financial analysis for the business plan. • Orchid International is aware that current quality and delivery issues have a negative impact on additional sales opportunities to current customers, and these issues can eventually sabotage future sales efforts to prospective customers, Orchid International Marketing Strategy 3

damage the company’s brand, and jeopardizes our efforts to achieve steady growth. • Orchid International is committed to making quality, on-time delivery and customer service the focus of continuous improvement efforts and the responsibility of every employee regardless of position. We know that the company’s reputation for reliability and quality is either supported or refuted by every part we manufacture and every communication we have with our customers (see Public Relations, Internal section, The Strongest Link Initiative, page 33). Vision: To become the leading North American supplier of high-volume metal and laminations stampings and assembly products and services utilized by manufacturers in the automotive, appliance, electric motor and transformer, and lawn & garden industries.

Mission: The Orchid International team is comprised of highly-skilled personnel dedicated to providing our manufacturing partners with metal and laminations stampings and assembly products and services that add value throughout their supply chains. Orchid International will strive to develop fulfilling relationships with our manufacturing partners by adhering to and building upon our core competencies in high-volume metal and laminations stampings and assembly and passing along the fruits of our expertise in the form of value-added engineering and manufacturing efficiencies.

Values: • The Orchid International team understands the importance placed on delivering high quality products and services in a cost- and time-sensitive global economy. • The Orchid International team understands that any chain is only as strong as its weakest link. We take seriously our individual and team responsibilities for continuous improvement to ensure Orchid International becomes the strongest link in our manufacturing partners’ s upply chains. Orchid International Marketing Strategy 4

• The Orchid International team is made up of a diverse group of individuals who share mutual respect for one another and value the contributions and talents each member brings to the team. To that end, the health, safety and integrity of the Orchid International team, our manufacturing partners, and the communities in which we live and work will never be compromised.

Value Proposition: Leveraging our core competencies in high-volume metal forming production, tooling, design engineering and quality control, Orchid International provides metal and laminations stampings and assembly solutions to manufacturers that are: experiencing internal issues that hamper production; desiring to outsource stamping and/or assembly processes that fall outside their core competencies; and/or seeking to establish a competitively-priced supplier relationship for a new or existing product line. Orchid International Marketing Strategy 5

SITUATIONAL ANALYSIS

Since 1988, Orchid International has grown into a $150 million supplier of metal and laminations stamping and assembly to the automotive, lawn & garden, electric motor and transformer, appliance and other industries. Initially a press equipment supplier, Orchid International steadily developed core competencies in stamping and assembly resulting in the decision to sell the equipment side of the company – a business noted for its cyclical feast or famine nature. Today, the company employs over 500 and operates five metal and laminations stampings and assembly facilities in the following locations: Gordonsville, Tennessee; Mount Juliet, Tennessee; Monroe, Wisconsin; McAllen, Texas; and Markham, Ontario. Orchid International is a financially-sound company competing with literally thousands of metal stamping and assembly companies throughout North America, ranging in size and capabilities from small job shops capable of prototyping and small to medium volume runs on smaller presses to large, multi-nationals with advanced tool and die making and press capabilities suitable for supplying prototyping and small runs to large volume runs for numerous customers. Competition for automotive tier work is intense, as it is in each industry in which Orchid International competes for high volume runs. A strong case can be made that the stamping and assembly industry is characterized by not only a competitor’s quality and delivery capabilities but by their geographic location. Stampers in close proximity to areas with a large manufacturing base tend to be more competitive in that geographic area. There are a host of factors to support this conclusion, including: proximity gives an edge to stamping suppliers having to manage their production and delivery of parts to facilitate the just-in-time inventory levels sought by many manufacturing customers today; and, when quality and delivery are equal, the work is awarded to the lowest bidder – freight costs of raw materials and the finished parts can make it difficult for distant competitors. A trend in the automotive industry that appears to only be gaining ground is the demand by OEMs and tier 1 companies that their suppliers build facilities near their production facilities. Orchid International fully understands these pressures and has established facilities Orchid International Marketing Strategy 6 geographically to support their customers’ needs and would consider additional facilities if the right opportunities arise. The costs of entry into the stamping and assembly industry can be boiled down into three all-important words – Quality, Deliver, and Price. In order to compete in today’s market, a stamping and assembly supplier must have extremely high-quality processes, be consistently capable of on-time delivery, and ultimately have the lowest price. Orchid International is very competitive, with three facilities – Mount Juliet, Gordonsville and Markham – that have impressive quality and delivery records. Both the Monroe and McAllen facilities are lagging behind, resulting in intense efforts to identify and correct issues that are preventing consistent quality and on-time delivery. Additionally, customers expect stamping and assembly suppliers to have met or to have attained certain quality certifications. Customers understanding the industry are often interested in the number, sizes and production capabilities of a potential supplier’s presses and assembly equipment (welding for instance). It is common practice for potential customers to perform an audit of a supplier’s quality and deliver performance prior to moving forward in a supplier-customer relationship. For Orchid International, the sales process can take over a year to develop into actual work. From an initial contact, whether it happens to be someone Orchid International has targeted, a referral or an unsolicited call, a member or members of the sales team work to develop a relationship with a prospective customer. It is not uncommon that the sales process involves purchasing, engineering and upper management within a prospective customer’s organization. Throughout the sales process, the sales person is usually involved. Historically, Orchid International has supplied a number of internationally recognized manufacturers in the automotive, lawn & garden, appliance, electric motor and transformer and other industries. The resume includes: Mount Juliet – General Electric, Johnson Controls, Eaton, John Deere, Toshiba, Regal Beloit, Dura Automotive, ArvinMeritor, Blue Chip, C.K. Electronics, Fisher Dynamics, CRH, Fabco, Toyo Seat, SW Manufacturing, WindoMotion, and Ohashi; Markham – Dura Automotive and WindoMotion; Gordonsville – Dura Automotive, Blue Chip, CRH, ArvinMeritor and Orchid International Marketing Strategy 7

Fisher Dynamics; McAllen – General Electric and Emerson; and Monroe – Advance Transformer (Philips), Merkle Korff, Bay Motors, Arkansas GI, and Jakel. The following tables provide a clear picture of the make-up of current customers, their volumes, and the industries represented at each Orchid International facility:

Table I. Mount Juliet Business Make-up Customer Volume Industry ArvinMeritor $6,994,525 Automotive CK Electronics $340,137 Automotive CM Products $43,444 Automotive CRH Industries $1,893,906 Automotive Eaton $348,711 Automotive Fabco $379,161 Automotive Fisher $10,729,177 Automotive John Deere $2,328,436 Lawn & Garden Johnson Controls $3,031,517 Automotive Ohashi $94,272 Automotive Orchid Auto. $4,302,188 Automotive Regal Beloit/GE $2,886,217 Appliance/Motors SW Manufacturing $224,590 Automotive Toshiba $1,495,315 Electronics Toyo $2,039,731 Automotive WindoMotion $46,319 Automotive Summary: Automotive – 82%, Appliance/Motors – 8%, Electronics – 4%, Lawn & Garden – 6%

Table II. Gordonsville Business Make-up Customer Volume Industry ArvinMeritor $1,400,000 Automotive Blue Chip $211,000 Automotive Dura Automotive $9,648,000 Automotive Orchid Mt. J./CRH $50,000 Automotive Orchid International Marketing Strategy 8

Orchid Mt. J./Fisher $4,500,000* Automotive Porter $3,800,000** Automotive Summary: Automotive – 100%. * – 2006 Projections, ** – 2006-2007 Projections

Table III. Markham Business Make-up Customer Volume Industry Dura Automotive $19,400,000 Automotive Intier/WindoMotion $1,140,000 Automotive Summary: Automotive – 100%

Table IV. McAllen Business Make-up Customer Volume Industry Emerson $3,454,820 Elec. Motors/Appliance Regal Beloit/GE $8,765,035 Elec. Motors/Appliance Summary: Elec. Motors/Appliance – 100%

Table V. Monroe Business Make-up Customer Volume Industry Actown $600,000 Elec. Trans./Lighting Advance Trans. $52,000,000* Elec. Trans./Lighting Jakel $2,000,000 Elec. Motor TYCO Electronics $1,000,000 Elec. Trans./Lighting Summary: Motors/Transformers for Appliance and Lighting 100%, * – a yearly volume not yet achieved.

As is readily apparent, Orchid International is heavily focused on the automotive, appliance and lighting industries. This is easily explained. Orchid International is more competitive price-wise when product run volumes are higher, thus industries which require a steady flow of parts are a better fit overall. Brand does have an impact on profit margin, and it is important to note that volume does not automatically equate to a good fit – John Deere is a perfect example of how brand can equate to higher margins as opposed to a run-of-the-mill brand of mower manufactured in equal volume but sold for less in the marketplace. Orchid International Marketing Strategy 9

Overall, Orchid International’s reputation within the targeted industries is respectable. However, due to lackluster ppm and delivery performance in Monroe and McAllen, there is an impact on the company’s ability to sell to existing customers such as GE and Emerson, or to approach similar companies in the electric motor, transformer and appliance industries where lamination stamping and die casting are in demand. As these issues are taken care of, and some history of higher quality and on-time delivery are established, the reputation of Orchid International and its brand should rebound. It is also safe to say that due to the size of the stamping and assembly industry and the many large, mature manufacturing industries to be targeted, establishing brand awareness should help the sales team build business volume. In essence, it is sufficient to say that marketing and production share in the responsibility for growing volume.

Market Metrics Automotive The automotive industry is highly competitive with domestic and international vehicle manufacturers and thousands of tier system suppliers generating billions of dollars in annual revenue around the world. The North American market is comprised of what is traditionally known as the “Big Three” U.S. manufacturers – General Motors, Ford, and DaimlerChrysler – and a host of others including: AM General, AutoAlliance, BMW, CAMI, Honda, Hyundai, Mitsubishi, Nissan, NUMMI, Renault, Subaru, Toyota and Volkswagen. The North American automotive industry continues to suffer economically, with a number of factors being blamed including: the economy and the weak dollar, poor consumer confidence, the long term financial liability resulting from decades of poorly negotiated union contracts, rising fuel prices, rising cost of raw materials including steel, and the ever-increasing pressure of foreign automakers who now are benefiting from North American assembly operations throughout the U.S., Canada and Mexico. To combat lackluster sales, the Big Three have resorted to low and even zero financing schemes and lucrative incentive programs to try to lure car buyers into making a purchase. While such programs have resulted in increased sales, sales volumes have not risen high enough to offset the financial problems facing automakers. Some industry Orchid International Marketing Strategy 10 experts believe the financing tactics used to lure buyers will make for tougher times ahead. “Many analysts believe that an abrupt drop in auto sales could be looming. Manufacturers may have painted themselves into a corner. Attempts to raise the 0% financing rate or lower rebate levels are met with an immediate drop in sales” (Automobile Industry Trends, www.plunkettresearch.com). Saddled with the burden of heavy pension and health care costs resulting from union contracts, domestic automakers are also at a distinct disadvantage – a disadvantage multiplied by the fact that the Big Three must continue to cope with more expensive union labor while foreign automakers do not operate under union contracts (www.plunkettresearch.com). As fuel costs rise, consumers are starting to turn away from large SUVs and trucks, looking for more fuel-efficient vehicles. Hybrid cars and alternative fuel sources are getting more attention and most automakers are investing in research and development. Foreign automakers, especially the Japanese, have gained market share as their vehicles have been seen as not only being of higher quality, but also as being more fuel efficient. Economic pressures in the automotive industry affect not only the OEMs, but trickle down through the tier system. OEMs are increasingly pressing top tier suppliers to absorb the rising costs of materials, to be more flexible in production and delivery of components, and to provide more services. Many automakers are now pushing for suppliers to locate production facilities in closer proximity to their auto assembly plants to help achieve cost and time savings (see Appendix, 2004 Production by North American Auto Assembly Plants, page 39). “This shift in production areas has tremendously reduced the sales of U.S. first- and second-tier suppliers to the large automotive assembly plants that were previously operating in the United States. U.S. parts and component manufacturers have been forced to open plants close to their clients so they can produce at lower costs, reduce freight and handling expenses, and deliver parts and components very quickly in a JIT program” (Automotive Parts and Supplies, Ernesto De Keratry, 2005). In the wake of ongoing pressure from the OEMs, the make up of the tier system is also changing. One significant change is the consolidation of suppliers. There is a Orchid International Marketing Strategy 11 constant push to find suppliers at each level who can provide more services, thereby reducing production costs. Many companies are seeking to limit the actual number of suppliers with whom they conduct business. The result is that there are fewer opportunities for suppliers with limited capabilities. Tier companies are left with few alternatives but to either acquire or expand their capabilities through acquisition, merger or investment or to get out of the automotive industry – voluntarily or by the process of exclusion. In recent months the financial picture has gotten grimmer for the Big Three. Unplanned production slowdowns and even plant shutdowns due to lagging sales have been implemented by DaimlerChrylser. Ford and GM are facing greater challenges as their stocks have either been downgraded or have been the focus of negative speculation. As stock ratings and values fall, it will be harder and more expensive for GM and Ford in particular to get the necessary operating capital they need. It is anticipated that this will result in longer collection periods for tier 1 suppliers already hit hard by rising raw material costs. As is the case, it is anticipated that collection periods will be passed down through the tier system impacting suppliers at every level. Despite the current pressures facing OEMs and tier suppliers, the economic outlook over the next five to ten years is a bit more positive. The global automotive manufacturing sector is expected to reach a volume of 72.9 million units by 2009, up by 20.5% over the 60.5 million units produced in 2004 (Datamonitor, Global Automobile Manufacturers). On a global scale, the automotive market share is held by:

Table VI. 2004 Global Automobile Manufacturing Market Share Company % Share General Motors 14.9% Toyota 11.6% Ford 11.2% Volkswagen 8.3% DaimlerChrysler 7.8% Other 46.3% Source: www.datamonitor.com Orchid International Marketing Strategy 12

The United States should retain its position as the largest global automotive market, currently accounting for 42.1% of the total; however, China and India will increase in importance. The U.S. market is expected to grow to a value of over $430 billion by 2008 (Datamonitor, Automobile Manufacturers in the United States). Similarly, the Canadian automotive market is expected to grow in value to over $41 billion by 2008, up by 8.6% over the $38 billion recorded in 2003 (Datamonitor, Automobile Manufacturers in Canada). Accounting for 4% of the global market, Canada remains a thriving hub for automotive manufacturing. The nation is also popular with Japanese manufacturers including Honda and Toyota (Datamonitor, Canada). As U.S. and foreign automakers seek to reduce costs, Mexico remains an enticing locale to either build new or relocate existing assembly operations due to cheaper labor and trade advantages resulting from NAFTA. By 2004, Mexico had become the 10th largest producer of light vehicles in the world (The Automotive Industry in the Monterrey-Saltillo Region, Ernesto de Keratry). The following is a forecast for the North American automobile market:

Table VII. North American Automobile Sales Forecast OEM 2004 2005 2006 2007 2008 BMW 322,682 306,747 314,336 320,598 338,874 Daim.Chry. 2,774,115 2,788,524 2,851,717 2,999,245 3,051,392 Ford 3,733,157 3,724,479 3,783,959 3,858,590 3,796,151 GM 5,341,552 5,292,766 5,239,676 5,118,943 5,232,471 Honda 1,568,583 1,585,676 1,623,356 1,599,888 1,631,502 Hyundai 773,745 854,044 892,363 915,434 956,926 Mazda 337,770 315,005 328,754 344,004 341,580 Nissan 1,290,297 1,272,492 1,253,946 1,301,349 1,326,488 Toyota 2,254,141 2,267,792 2,349,221 2,409,627 2,425,986 Volks 571,439 581,349 604,301 599,758 626,540 Other 576,137 550,544 597,456 643,468 661,443 Source: www.autonewsdatacenter.com Orchid International Marketing Strategy 13

The size of the North American automotive market is immense. Additional research will result in detailed documents identifying tier suppliers and the components they manufacture for North American OEMs. These reports will be filed in the shared Marketing folder on the network. As Orchid International is currently heavily involved in the stamping and assembly of seat components, that is the first critical area slated for research. The following is a forecast for the North American seat adjuster market:

Table VIII. N.A. Seat Adjuster Tier 1 Suppliers Projections Supplier 2006 Projections 2007 Projections 2008 Projections Aisin 492,404 449,272 325,380 Brose 160,417 172,060 136,525 Daewoo 566,240 240,972 117,366 Delta 459,168 306,650 77,656 Dura 3,356,220 1,567,274 1,303,744 Faurecia 2,421,659 1,584,204 745,991 Hammerstein 2,059,134 1,876,765 1,769,572 Imasen 677,227 481,417 264,582 Intier 8,443,935 6,975,966 5,747,689 Johnson Controls 2,032,345 1,586,054 1,218,946 Keiper 53,798 0 0 Lear 2,350,418 3,616,575 3,573,648 Ohi 450,516 110,025 25,877 S.W. Mfg. 1,976,089 784,943 632,623 Shape 269,998 209,477 151,129 Toyo Seat 1,227,034 1,142,192 1,031,128 Source: CSM Worldwide, North American Seat Adjuster Market 2004-2008

(For a detailed listing of North American seat adjuster tier one suppliers by OEM, with forecasted market share, see Appendix, North American Seat Adjuster Market Share, page 41). Orchid International Marketing Strategy 14

Appliance The appliance industry includes kitchen, HVAC and air conditioning, vacuum and floor care, laundry and refrigeration appliances. Despite a stagnant appliance market attributed to consumer confidence in a sluggish economy, especially in the United States, industry insiders predict that the global appliance market will grow from $97 billion in 2003 to over $109 billion by 2008, an increase of 12.5% (Datamonitor, Global Kitchen Appliances). Kitchen appliances, including ranges and high-end refrigerators are expected to be the sectors of strongest growth. The United States represents just over 24% of the global market for kitchen appliances (Datamonitor, Global Kitchen Appliances). The international marketplace is dominated by a small number of firms, including: Electrolux, Whirlpool, General Electric, Matsushita Electric and Toshiba. Key to anticipated growth in the global market is the continued demand by young families for high-end refrigerators and other appliances. New-home buyers, who are sensitive to economic conditions, are also one of the main drivers in the appliance industry (Datamonitor, Global Kitchen Appliances). Some manufacturers are turning to the production of low-cost appliances to market in China, India and Brazil (Datamonitor, Global Kitchen Appliances). The U.S. kitchen appliance market reached a value of $23 billion in 2003 and is expected to reach $24 billion by 2008 (Datamonitor, Kitchen Appliances in the United States). The U.S. market is marked by fluctuations and is highly reactive to new-home purchases (Datamonitor, Kitchen Appliances in the United States). High-end refrigerators and cooking ranges are expected to be leading revenue sources over the next few years.

Table VII. U.S. Appliance Industry Shipment Statistics Appliance Units by March 2005 Units in 2004 Electric Ranges 1,462,500 1,489,100 Gas Ranges 887,500 882,000 Microwave Ovens 2,959,300 3,507,500 Freezers 498,200 579,600 Orchid International Marketing Strategy 15

Refrigerators 2,294,200 2,354,500 Washers 2,278,200 2,271,700 Dryers 2,027,000 2,137,600 Dishwashers 1,773,500 1,736,500 Air Conditioning 3,995,820 5,306,227 Source: www.appliancemagazine.com

The Canadian household appliance market, which accounts for 1.5% of the global household appliances market, was valued at $1.69 billion in 2003, and is anticipated to rise to $1.81 billion by 2008 (Datamonitor, Household Appliances in Canada). Cooking appliances are the leading revenue source in the marketplace in Canada, with 36.3% of the market value share (Datamonitor, Household Appliances in Canada). The following is a brief list of the leaders in the appliance industry worth further research to assess their value as potential customer targets for both general stampings and assembly and motor laminations:

• Electrolux AB – Electrolux is the world’s largest producer of powered kitchen appliances, with 2002 revenues of $14.8 billion euros (Datamonitor, Global Kitchen Appliances). Brands include: Electrolux, White Westinghouse, and Frigidaire. • Whirlpool – Headquartered in Benton Harbor, Michigan, Whirlpool is the second largest manufacturer of home appliances in the world, and markets primarily in the United States, Mexico, Canada, Europe and Asia. The company’s primary products are refrigeration, cooking, laundry, dishwashing, and air conditioning appliances. For 2002, Whirlpool posted net sales of $11 billion (Datamonitor, Global Kitchen Appliances). Brands include: Whirlpool, KitchenAid, Roper, Gladiator, Estate and Kenmore (for Sears, Roebuck and Company). • Toshiba – Headquartered in Tokyo, Japan, Toshiba generated revenues of $48 billion in 2003 across its communications, electronics, industrial equipment and appliance operations. Three-fourths of Toshiba’s products are sold in Asia (Datamonitor, Global Kitchen Appliances). Orchid International Marketing Strategy 16

• General Electric Company – Headquartered in Fairfield, Connecticut, GE generated 2002 revenues of $131 billion company-wide. GE produces products ranging from aircraft engines, appliances, electric distribution and control equipment, plastics, and medical imaging equipment (Datamonitor, Global Kitchen Appliances). The Commercial and Industrial Appliances division is headquartered in Louisville, Kentucky, and generated $13 billion in sales worldwide in 2004. Brands include: GE and Hotpoint. • Maytag Corporation – Headquartered in Newton, Iowa, Maytag Corporation is a leading designer and manufacturer of appliances. In 2002, the company generated revenues of $4.6 billion. The company manufacturers an assortment of washers, dryers, dishwashers, refrigerators and cooking ranges throughout the United States and Canada. Maytag also offers floor care products and commercial laundry equipment (Datamonitor, Global Kitchen Appliances). Brands include: Maytag, Amana, Magic Chef, Jade, Jenn-Air, Hoover, Dixie- Narco, and Dynasty. • Other Appliance Manufacturers/Brands to Research – Asko USA, Bosch Home Appliances, Camco, Charc-O-Grill Inc., City Metal Manufacturing, Inc., Duo Vac Inc., Elmira Stove Works, Equipement de Restaurant Laval Inc., Fiesta Barbeques Limited, Force 10 Marine Company, IMPex Canada, Koolatron, Maskery, Nova Kool Mfg. Inc., Produits Electrolux, Solutions in Moving, WSE International, Equator Corp., Fisher & Paykel Appliances, Inc., Gorenje, Haier Group, LG Electronics, Miele Appliances, Inc., Sanyo Fisher Company, American Standard, Trane, Ruud, Lennox, Rheem, Carrier and Speed Queen.

Target markets for laminations stampings and die casting include electric motor manufacturers, lighting manufacturers, power tool manufacturers, small appliance manufacturers and potentially many others. Future research will target these key markets, identify potential customers and competitors, and result in detailed summaries of locations, brands, and other important business data. Based on current experience with companies such as Jakel, Regal Beloit, General Electric and Advance, it is evident that tremendous growth potential exists in the laminations business. Orchid International Marketing Strategy 17

The following are intended to be short lists of potential customers to prioritize for research per the laminations and die casting sales team:

Electric Motors Regal Beloit, Emerson, A.O. Smith, General Electric, Bay Motors, Jakel, Black & Decker, Milwaukee, and Bosch.

Transformers and Ballast Components Philips Advance Transformer, Universal Lighting Technologies, Acuity Brands, Cooper Lighting, Hubbell Lighting, Howard Industries, Visual Light, Pacific Light and Basler.

Other industries that will be researched in-depth in the fall of 2005 due to their potential as targets for both metal and laminations stampings include the lawn & garden, electronics and aerospace industries. Orchid International Marketing Strategy 18

COMPETITIVE ANALYSIS Metal Stamping & Assembly The metal stamping & assembly industry in North America is highly competitive, with literally thousands of companies vying for a share of the automotive, appliance, lawn & garden, and other higher volume manufacturing industry markets. Stamping and assembly companies range in size and capabilities in regard to tool and die capabilities and press equipment. While stamping and assembly providers can be found across the country, those that would be deemed most competitive to Orchid International tend to be strategically located near large manufacturing plants or highly industrialized areas found in Ontario, Tennessee (Kentucky/Alabama/Georgia), Wisconsin (Michigan/Illinois/Indiana/Ohio) and the border of Texas and Mexico. In some cases competition can come from both external stamping providers as well as from within large manufacturing companies including OEMs like DaimlerChrysler and tier 1’s like Eaton Corporation. Although Eaton has identified metal stamping processes as falling outside of their core competencies, the multi-billion dollar company has decided to utilize outsourcing for certain stampings as well as continue to maintain their own stamping capabilities. Eaton is not alone in this regard. In metal and laminations stamping it is not difficult to find large companies that could be seen as both a potential customer and a competitor, although usually in different product categories – Flex-N-Gate for example. In researching stamping and assembly competitors, virtually all proclaim their commitment to quality and on-time delivery as reasons to choose them over any other supplier. Most list their equipment and talk about their dedication to their customers. While this message can not be overlooked, the key for Orchid International to gain notice and market share is to convey the quality, delivery and commitment by focusing on tangible results and how our expertise and capabilities paid off for real customers. (see Appendix, Competitors by Geographic Area – Stamping and Assembly, page 43).

Laminations Stampings & Die Casting The North American laminations stamping industry, while having a number of smaller competitors, is primarily dominated by a few large, multi-national companies like Orchid International Marketing Strategy 19

Tempel Steel Company, the R. Bourgeois Company, Mitsui High-Tec, Inc., Rotomatika, Oberg, Lamination Specialties, Eurotranciatura, and Keinle & Speiss. Laminations stampings and die castings are utilized by motor and lighting manufacturers (ballasts and transformers). There is huge potential for Orchid International to gain market share in these manufacturing industries, as well as with the OEMs relying heavily on electric motors and lighting components. At present Tempel Steel Company is the recognized leader in motor stampings, but the company has developed a poor reputation in terms of building customer relationships among buyers of laminations stampings. Headquartered in Chicago, Illinois, Tempel provides both motor and transformer laminations to manufacturers around the world (www.tempel.com). Tempel operates the following facilities in the United States, Canada and Mexico:

• BCL Magnetics – Located in Burlington, Ontario, BCL Magnetics produces laminations and magnetic products, including motor, transformer and ballast laminations. • PSW Industries – Located in Indiana, PSW Industries produces laminations for electric motors, transformers and ballasts. • Tempel Motor Division – Located in Chicago, Tempel’s Motor Division produces laminations for motor and generator manufacturers. The facility is also home to the Notching Business Unit, which specializes in special production of larger diameter laminations. • Portage Tool Division – Located in Elk Grove, Illinois, the Portage Tool Division of Tempel designs and manufactures tungsten carbide lamination dies. • Tempel Transformer Division – Located in Libertyville, Illinois, Tempel’s Transformer Division specializes in progressive stamping of transformer laminations. The facility is also home to the Helical Wound Business Unit, which specializes in the manufacture of cores for the automotive OEM and aftermarket alternator manufacturers. • Tempel de Mexico – Located in Apodaca, N.L., Mexico, Tempel de Mexico has slitting, stamping and annealing capabilities. Orchid International Marketing Strategy 20

Mitsui High-Tec, based in Japan, offers stampings services for motor components as well as the manufacture of motor core dies. The company produces motor cores used in a variety of applications ranging in size from micro motors of vibrators in portable phones to larger motors used in hybrid automobiles. Mitsui High-Tec has production facilities in Singapore, Malaysia, Thailand, Philippines, Dongguan, Shanghai, Tianjin, Hong Kong and Taiwan (www.mitsui-high-tec.com). The R. Bourgeois Company is now the second largest laminations stamper in Europe and claims to be the third largest in the world. Employing over 700, the company is headquartered in France and has facilities in other nations including Switzerland; Copenhagen, Denmark; Shanghai, China; Tonawanda, New York; and, San Luis Potosi, Mexico (www.rbourgeois.com). Kienle & Spiess is a part of the Cogent group, composed of metal forming and manufacturing companies with diverse specialties and facilities throughout Europe. Generating $140 million euro annually, Kienle and Spiess employs over 1,000 and operates four production facilities located in Sachsenheim, Vaihingen, Enzweihingen, and Tokod, Hungary. Kienle & Spiess produces components for ventilators, power tools, electric doors, automotive, generators and standard motors (www.kienle-spiess.de). Rotomatika, operates several manufacturing facilities located in Europe, and produces laminations used in the automotive, air conditioning, heating and ventilation, pumps and appliance industries. Rotomatika offers rotor die-casting, annealing and fine blanking services, primarily to the automotive industry (www.rotomatika.si). Oberg Industries, with sales exceeding $100 million, employs over 650. The company operates manufacturing facilities in Pennsylvania, Arizona and Costa Rica, and specializes in metal stamping, plating and multi-axis machining. Oberg Industries supplies stampings that are utilized in the automotive, appliance, aerospace, electrical and other industries. Lamination Specialties is headquartered in Chicago, Illinois, and offers laminations necessary for transformer, ballast and motor manufacturing. The company consists of three divisions: Transformer & Ballast Lamination Division, Motor & Custom Designed Lamination Division, and LSI Steel Processing Division. The Orchid International Marketing Strategy 21 company web site states that LSC has 40 high speed, straight sided lamination presses with the capacity to produce over 400 million pounds of laminations annually. The company has advanced tool and die manufacturing expertise as well as high-volume annealing capabilities (www.laminationspecialties.com). Eurotranciatura claims the title of being the European leader in blanked lamination production, with a customer base stretching across virtually every continent. The Italian company utilizes presses ranging in size from 60 to 550 tons, and employs over 390. Eurotranciatura also owns Italian-based SAF and EUROSLOT. SAF provides laminations for small electric motors, while EUROSLOT produces notched laminations for larger electric motors and generators (www.eurotranciatura.it). Additional research into the aforementioned competitors and as well as others in the metal and laminations stampings industry is required on an on-going basis. The focus will be on identifying manufacturers and suppliers and any details pertaining to their operations and market share. All research will be added to the shared Marketing folder on the network for easy reference. Orchid International Marketing Strategy 22

SWOT ANALYSIS

Strengths Orchid International has a number of strengths, including: a good range of equipment; geographically-favorable facility locations; a motivated and positive management team; an executive team that is growth-orientated; and, the financial stability to achieve growth through investment and acquisitions. The company has invested, and continues to invest, in equipment to expand the capabilities of each of its facilities. In doing so, the company equips the sales team with the range of equipment necessary to seek out new and existing opportunities and provides the production team with the tools necessary to meet the ever-growing demands placed on Orchid International by our existing customers and the capacity to handle new work as it is acquired. The locations of Orchid International’s production facilities can also be seen as a plus. Each facility is located in or near highly industrialized regions and transport of products is not a major obstacle as all but the Monroe, Wisconsin facility are located near major roadways – although Monroe is only a few hours away from Chicago, Illinois and Milwaukee, Wisconsin. Future research will begin to identify target market customers within a select radius of each location to aid the sales team in maximizing their efforts. In each facility, with the exception being McAllen due to turnover, the plant management team expresses a desire to see their facility succeed in terms of production quality and delivery. During my initial visit to each location, the plant managers all expressed pride in the accomplishments of their employees, and a desire to proactively “fix” situations they perceive as interfering with product delivery. Members of each management team could easily point to ways they were working to reduce operating costs, to increase productivity, and to make Orchid International more competitive. The executive team’s commitment to growing the company is a definite plus. From undertaking the process of creating a business strategy to exploring potential acquisitions that would strengthen Orchid International’s presence in Canada, the willingness and desire to grow can send a strong message throughout the organization. Additionally, it is reasonable to assume that opportunities may arise that make it possible Orchid International Marketing Strategy 23 for Orchid International to open new facilities in close proximity to key customers, especially in the automotive industry. Because Orchid International is a financially stable company, we are in a position to take advantage of more opportunities as they are identified and can better weather unexpected events. Whether new equipment is required or an existing company that fits Orchid International’s needs becomes available, the executive team is in a position to move accordingly.

Weaknesses Orchid International has several weaknesses; however, no weaknesses are so ingrained into the culture or problematic that they can’t be overcome. Weaknesses include: being too heavily focused on the automotive industry; quality and delivery problems in Monroe and McAllen; the lack of standard operating and reporting procedures; and, poor communication within and between departments and facilities. As noted in the Situational Analysis portion of this document, the automotive industry is experiencing difficult times. OEM demands and financial problems can impact tier suppliers throughout the supply chain. Being too focused on this one industry could leave Orchid International vulnerable to changes in raw material costs, collection periods, and the effects of ever-changing production demands. The obvious solution is to carefully monitor how much volume stems from the automotive industry and to work diligently to bring in work from other industries – preferably those which are not affected to the same degree by the same economic conditions as the automotive industry. While McAllen and Monroe are experiencing issues in terms of quality and delivery, these situations are being addressed at all levels by Orchid International. These situations do impact the company’s ability to make additional sales to large customers like Emerson and Regal Beloit, as well as frustrate attempts at attracting potential customers who rely on and demand high quality and on-time delivery. As the company grows, the lack of standard operating and reporting procedures will impact the overall performance of Orchid International to some degree. At present, the five production facilities operate basically as independent entities, even creating their own internal processes and reporting procedures. This makes the task of managing at the Orchid International Marketing Strategy 24 corporate level more difficult. Without standards developed and mandated across all facilities, these problems will only be exacerbated as the company grows, and especially with the addition of any acquired companies or the opening of new facilities. This topic may be worthy of additional attention in the overall business plan. Communications also suffer as the facilities operate independently. Several initiates to be implemented as a result of the marketing strategy include an Intranet and quarterly e-newsletter to begin bridging the gap between the facilities.

Opportunities Orchid International has a number of opportunities before it. Because the company is financially stable and the executive team is interested in growth, the potential for acquiring additional companies exists. Should opportunities be identified, it is highly likely that an acquisition of series of acquisitions could significantly bolster Orchid International’s capabilities, especially in Canada. If acquisitions are not made in the near future, there exists an opportunity to enter into the general stamping business in the Ontario region by adding one or two small presses in the existing Markham facility. As sales efforts pick up and hopefully new business is brought in for general stamping and assembly, the executive team is also open to the idea of moving into a facility better suited for increased press capabilities. As the automotive industry moves toward consolidated suppliers, the addition of stamping to the present assembly capabilities in Markham could prove rewarding. Just as the company has done in the past, expansion into locations near large customers poses a number of potential opportunities for Orchid International. Whether a move into Mexico would prove beneficial or opportunities near large suppliers located in the U.S. or Canada might materialize, Orchid International is open to the idea of building or leasing a facility in order to better serve its customers. Of course, research would be required to minimize potential threats that might be associated with expansion, especially into Mexico where we have limited knowledge. At present, Orchid International is heavily involved in the automotive, electric motor and lighting industries. As the company improves its laminations and die casting processes, the company will likely have increased opportunities to sell to large, existing Orchid International Marketing Strategy 25 customers such as Jakel, Emerson and Regal Beloit. Then there are other industries in which Orchid International has yet to enter. On-going research and targeted sales should begin to identify more opportunities for both the metal and laminations stamping and assembly products.

Threats Threats to Orchid International include: the potential for negative brand awareness stemming from prolonged performance issues in Monroe and McAllen; competition from both domestic and foreign stampers, especially in Mexico; the availability and cost of steel; and, approaching ramp downs for major product programs, such as the impending ramp down of the GMT800 program and the potential lose of the Advance relationship in Monroe in roughly four years. Not to belabor the point, but prolonged quality and deliver problems, especially when the customers are industry giants, can severely damage the reputation of Orchid International. Any quality and deliver issues have to be handled swiftly as blips can be explained to existing and prospective customers; however, prolonged periods of high ppms or poor delivery are harder to overcome and at best require months of high performance following corrective measures before new work can be acquired. The stamping and assembly industry is highly competitive. With the current automotive environment resulting in consolidation of suppliers along the tier system, Orchid International could be faced with having to compete with very large, well financed operations in key geographic areas such as Ontario, Canada and in Mexico. Additionally, European stampers are eyeing Mexico as a solution to their saturated markets. The lure of cheaper labor, raw materials, relaxed trading regulations and the glut of opportunities made available by the automotive, appliance and electronics industries now calling Mexico home may be too tempting to pass up. Already, Orchid International has had to deal with rising steel prices. Fortunately, increases in the cost of this raw material have been passed along to our customers. However, many tier suppliers are being forced to absorb the increases or face losing business. In some cases, higher tier companies have gone so far as to sue their suppliers to prevent rising costs or delivery stoppages. Court decisions have gone for and against Orchid International Marketing Strategy 26 lower tier suppliers who have issued the ultimatum of “pay this price or we stop shipping.” Perhaps the availability and pricing of steel will remain an area of concern, but might be a topic for inclusion in the overall business plan. Finally, the ends of key programs like the GMT800, which will be ramping down starting in 2006, and the contractual relationship with Advance, which has only four years remaining, pose threats to the viability of several facilities including Monroe and Markham. The GMT800 is the most pressing issue in this instance, and the executive team and sales are moving quickly to do the things necessary to grow additional business in and around Ontario. The end of product programs is nothing new in the manufacturing world; long term business planning should pay big dividends by helping to eliminate the urgency being experienced as a result of the Markham situation today. Orchid International Marketing Strategy 27

STRATEGIES & OBJECTIVES

Although Orchid International has been in existence since 1988 and has reached sales of $150 million company-wide, the company has not established the brand identity necessary to drive sales volumes to a much higher level. Over the course of 2005 and 2006, a concentrated effort should be made to establish a proper image or brand for Orchid International and then set about building awareness in select target markets including the automotive, appliance, electric motor, lawn & garden and lighting industries. This will be done utilizing new marketing literature, a revamped company web site, targeted trade show participation, a basic web banner ad campaign, and a public relations blitz where any news-worthy event is reported to select media channels and customer contacts via electronic means whenever possible. The key is to brand Orchid International as a stable, financially secure and growing leader in the metal and laminations stamping and assembly industry. The message will be conveyed through the use of artistic photographs of parts and procedures that raise Orchid International’s work to the level of artwork. The metallic theme will solidify the nature of our business and symbolize the strength of the company. The body copy will communicate the importance of quality, delivery and price, and should come from customer testimonials and success stories whenever possible. In this way, we bring our vision, mission and values to life instead of trying to do and say the same thing in the same way as our competitors – a sure way to stay relatively anonymous in the crowd. The Porter story from Gordonsville and Mount Juliet is a prime example of the type of body copy that needs to be interspersed throughout Orchid International’s marketing collateral. By relating these types of stories, with quotes from Porter or satisfied customers thrown in, we say and show more about Orchid International’s commitment to quality than if we wrote “we believe in quality,” or “we always deliver quality” on every page of the company web site and on every page of every new piece of printed collateral. Anyone can claim quality, deliver and so on, but when you can provide specific instances, you rise above the crowd. Ultimately, the goal of a successful marketing program is to assist in increasing sales – in this case, the sales team has been tasked with increasing organic growth by Orchid International Marketing Strategy 28

36% in all facilities (replacing the average 16% per year lose, plus 20% new business). First, the sales team will be provided with up-to-date, honed marketing collateral that brings together the look and message Orchid International wants to convey. Second, on- going research will help identify potential customers by industry, provide comprehensive data on competitors and help identify potential opportunities or threats in the marketplace. Finally, internal and external communications will be developed and distributed to advance key initiatives, build brand awareness and help set the stage for Orchid International to begin laying claim to the leadership role in the North American stamping and assembly industry. Orchid International Marketing Strategy 29

TACTICAL MARKETING PROGRAMS

Photography In order to develop new marketing collateral and update the company web site, photography will be a first priority. The current photograph library will be reviewed and appropriate photographs collected and labeled for future use. A detailed photograph checklist will be developed outlining what processes, parts and other, by facility, need to be photographed to meet our marketing and communication needs. Photographer Rob Watts will be escorted to the Mount Juliet and Gordonsville facilities during a one day session to digitally capture the appropriate shots in these locations. Identified parts will be requested of each facility and shipped to Rob Watt’s Hendersonville, Tennessee studio. Upon satisfactory completion of these initial sessions, Watts will be escorted to Markham, McAllen, and Monroe to capture any additional images. The fee per day is $1,000 (plus expenses if travel is required), and the total cost for in-studio work and travel to all five facilities should be in the $6,000-$7,500 range, including airfare, hotel and meals.

Web Site At present, the Orchid International web site, orchidinternational.com, serves primarily as an online brochure. To revitalize the site as an important branding and communication tool to current and prospective customers, a new site map is being developed building upon aesthetically pleasing and functional attributes utilized on other sites, including mbusa.com, bmwusa.com and allisontransmission.com. Incorporated into the design will be an optional Flash opening based on an x-ray concept – scenes of everyday products containing Orchid parts being x-rayed – to convey the message that Orchid International is everywhere. The site map, copy and graphics will primarily be developed in-house. Keystone Business Solutions of Hendersonville will provide the programming, x-ray Flash intro and hosting services. A monthly maintenance and hosting fee arrangement will be negotiated and site updates will primarily be made in-house as needed. The design, programming, testing and launch will be accomplished for under $13,000 (actual quote Orchid International Marketing Strategy 30 for the Internet portion is just under $9,000 – the Flash introduction and basic Intranet should increase the cost by no more than $2,500). The hosting fee is $480 per year, utilizing modern servers with multiple redundancies built in to minimize potential downtime. The Intranet site, for employees with computer access, will serve as an online resource center. One element of this resource center is the organizational chart. The development of the organizational chart will be accomplished with the aid of the plant managers and H.R. managers. Head and shoulder photographs, contact information and brief bios will be collected and added to this online org. chart. With the photography work completed by mid- to late July, the revamped Orchid International web site (Internet and Intranet) can be available by early September.

Style Guide and Consistency Manual To help build the Orchid International brand and to protect the company’s image, a style guide and consistency manual will be developed and made available to purchasing, human resources and the entire organization via the Intranet. The guide will specify how printed and promotional materials including letterhead, business cards, envelopes, fax forms, pens, etc. should be designed and how to properly use the company logo. Electronic printer templates can be created and stored on the Intranet, unless the executive team decides to centralize the purchasing of office supplies and promotional materials. The guide will be completed by mid- to late July.

Printed Collateral Orchid International can effectively communicate its message to potential customers in most industries with two pieces of printed marketing collateral. The primary binder, with 5-color printed inserts and pockets for a business card and mini-CD, are intended for important face-to-face visits or presentations with potential customers. Orchid International can order 1,000 custom binders for $7,000. The inside pages will be printed, plastic wrapped and stored at the Brentwood office for easy insertion inside the custom binders. It is anticipated that 12-15 sheets would provide Orchid International Marketing Strategy 31 ample space to communicate the Orchid International message effectively. The estimated cost for these pages is $5,000. The second printed piece is a brochure suitable for general inquiries, trade show handouts, and mailings. With 5-color process printing and die cut, the estimated cost for 1,000 brochures is $1,800. Initially, 100 will be sent to each facility with the remainder stored in Brentwood for trade show distribution, mailings and web site requests for literature. The timeline for completion of the printed collateral is virtually the same as with the web site. Given that the photography project is completed by mid- to late July, the printed materials can be designed, approved, printed and made available in early September.

Trade Show Booth & Promotional Mini-CDs A modern trade show booth design has been identified as a good fit for the image Orchid International wants to portray in the marketplace. The Luminent 10x20 display allows for easy assembly of either the full display or a 10x10 version when desired. To capture the eye of trade show attendees, a visual component called MagicGlass is also recommended. Advent, located in Nashville, has provided a quote of $18,800 ($16,400 for the booth, plus $2,400 for the MagicGlass screen component). A projector will also be purchased, with suitable models available in the $800 – $1,500 range. Advent has agreed to a joint venture on the MagicGlass screen component to make it more affordable. Currently, Advent owns two MagicGlass screens, renting them to customers for $1000 per week. If Orchid International will buy the MagicGlass screen, then Advent would make it available for rent to customers for $1,000 per week during peak trade show season. The rental fee would be split evenly between Advent and Orchid International. While no guarantees are implied regarding potential rental opportunities, the sales representative states that it is quite reasonable to assume 3-6 rentals per year ($1,500 – $3,000). Of course, we would be required to draft a rental agreement stipulating the renter’s financial obligation for repairs or replacement if the MagicGlass screen is damaged or lost. Orchid International Marketing Strategy 32

Mini-CDs containing a customized PowerPoint presentation and packaged in a 5- color tri-fold cardboard wallet are an ideal promotional item that can also be utilized in Orchid International’s custom binders. The cost of 2,000 mini-CDs, including printing on the cover and burning the presentation, is $1,980 ($0.99 each). The cost for 1,000 tri- fold cardboard wallets is $2,790 ($2.79 each) and the cost for 1,000 clear plastic sleeves is $500 ($0.50 each). The clear plastic sleeved mini-CDs are for insertion into the custom binders.

Advertising Based on a review of numerous publications available for the various industries Orchid International is targeting, print advertising does not present a cost-effective method of building brand awareness. The cost per ad is usually substantial, and the return on investment is doubtful even when considering the highly defined target audience of each publication. Web advertising on the other hand is generally more affordable, although a banner ad can cost as much as $3,500 per month on certain industry specific sites. A significant advantage of web advertising is that the medium provides ample opportunities to track and test response rates. Should evidence prove one site is not justifying the expense, then either the message needs to be changed or the advertising dollars should be shifted to another web site. Search engines including Google and Yahoo must also be taken into consideration. Following the successful launch of Orchid International’s revamped web site, a banner ad can be placed on www.steelmill.com ($200 per month) and www.steelspider.com ($200 per month) beginning in October and running through December. The total cost per month is $400, and should provide Orchid International with feedback on the value of these sites to the branding effort. Research into additional online advertising and public relations opportunities will be an ongoing activity. Potential online targets include steel suppliers, online versions of popular industry magazines, and industry associations (see Appendix, Targeted Research – Industry Associations, page 54). At this time, online industry magazine advertising rates for such publications as Appliance Design, Appliance Magazine, Automotive News Orchid International Marketing Strategy 33 and Purchasing Magazine can run anywhere from $3,000 to $7,000 per month, which is usually less expensive than the printed alternative. Beginning in 2006, a monthly budget of $1,000 will enable Orchid International to take advantage of lower cost banner ad opportunities, without putting too much of a financial strain on the overall budget.

Public Relations External Press Releases – To take advantage of free publicity opportunities, press releases will be routinely written and distributed via e-mail and traditional mail to a wide array of online and print sources. Continued research into associations and trade publications will likely grow the Orchid International list (see Appendix, Public Relations Resources, page 54). As most releases can be submitted electronically, the cost of incorporating this public relations medium is under $100 a year – occasionally requiring letterhead, envelopes, CDs and postage. E-Releases – E-mail Releases are also an attractive method of both communicating with and advertising to current and prospective customers. As contacts are provided by the sales team, an e-release contacts list will be developed. Those on the list will receive periodic messages from Orchid International ranging from manufacturing news, quality reports, etc. An “unsubscribe” option will be added to appease recipients who might otherwise become frustrated with unsolicited e-mails. Internal Quarterly Electronic Newsletter – An e-mail newsletter will be developed and distributed quarterly to plant and H.R. managers. A print out can then be copied and made available to employees by posting the newsletter on plant bulletin boards and by placing copies in break rooms. Content can include sales updates, quality reports across all plants, a corporate calendar, and local content from each plant. The H.R. managers will be asked to help identify local content for inclusion in the newsletter. The cost of implementation is minimal, limited to the cost of duplication at the plant level. The newsletter would be distributed in January, April, July, and October. Orchid International Marketing Strategy 34

The Strongest Link Initiative – To help establish a quality and delivery-driven culture throughout Orchid International, support materials including communications tools for the executive team and plant managers will be created. Building upon the theme of the strongest link in our customers’ supply chain, Orchid International should initiate an internal program that encourages every employee to take ownership of their jobs and to make a personal commitment to help the company achieve zero defects and 100 percent on-time delivery. Each employee should strive to be the unbreakable link in Orchid International’s internal supply chain. If everyone does their part, then Orchid International will become the strongest link in our customers’ supply chains. The program should be voluntary in nature and include a meaningful rewards and recognition component. The communications tools would include customized PowerPoint presentations, posters, designed certificates of achievement and assistance to the plants in recognizing employees corporate-wide.

Implementation Plan Date Action Prod. Cost/Purchase Price July 27 Photography Completed $7,500 July 29 Style Guide Completed $0 Aug. 12 Trade Show Booth Completed $18,800 Aug. 12 Mini-CDs, Tri-Fold Wallets Completed $5,270 Sept. 1 Banner Ads Completed $0 Sept. 16 Web Site Completed $13,000 Sept. 16 Printed Materials Completed $13,800 Oct. 1 First Newsletter Completed $0 Orchid International Marketing Strategy 35

BUDGET SUMMARY – 2005

Collateral Development Photography $7,500* Web Development/Programming $13,000* Web Hosting Sept. – Dec 2005 $120 Print Collateral Binders $7,000 Inserts $5,000 Brochure $1,800 $34,420 Trade Show Booth Purchase $18,800* Projector $1,500* Promotional Items 2,000 Mini-CDs $1,980 1,000 Tri-fold Wallets $2,790 1,000 Plastic Sleeves $500 $25,570 Advertising Web Banners Oct., Nov., Dec. $1,200 $1,200 Office/Misc. Office Supplies $500 Postage/Misc. $500 Travel $1,200 $2,200 2005 Total Budget $63,390 *Note: $40,800 spent on one-time purchases. Goal is to keep marketing budget below $30,000/year. Orchid International Marketing Strategy 36

BUDGET PROJECTIONS – 2006

Collateral Maintenance Web Maint. Contract (10 hrs.) $1,000 Web Hosting $480 Brochure Reprints (1,000) $1,800 $3,280 Trade Show 1,000 Mini-CDs $980 1,000 Tri-fold Wallets $2,790 $3,770 Advertising Monthly Web/x12 $1,000 $12,000 Marketing Associations/Memberships Association of National Advertisers $5,500 (See Additional Considerations section) $5,500

Office/Misc. Supplies $1,000 Travel $3,000 Postage/Misc. $1,000 $5,000 2006 Total Budget $29,550 Orchid International Marketing Strategy 37

ADDITIONAL CONSIDERATIONS

Sales Database Before Orchid International can identify a suitable sales database solution, a meeting should be held with Grant, Steve, Kerry, Mike, Keith, Larry, Tim Bryan, and I to identify how the ideal database would be utilized and what functions/capabilities are required. During the discussion it would be helpful to identify potential pros and cons of utilizing Outlook and any off-the-shelf programs including capabilities and limitations (based on identified needs), potential costs of ownership or usage, a budget if it is determined that no internal programs presently owned and being utilized will suffice, etc. At this time, three possible database solutions have been brought to the table for discussion. Tim Bryan makes a strong case for Outlook as it is a common program utilized by the entire team. There are no maintenance costs, user license fees or advanced programming costs to contend with. Salesforce.com is another database solution that is highly customizable and functional. Orchid International can sign five people up for a free one-month trial of salesforce.com to determine if the program will meet our needs. However, salesforce.com does carry with it substantial costs. The Professional edition carries with it a $750 license fee per user per year. The Enterprise edition carries with it a $1,500 license fee per user per year. The third potential option is Microsoft CRM, which is compatible with Outlook. Microsoft CRM also has a yearly user license fee structure. The basic CRM Sales edition requires the purchase of a $1,049 server module and offers two user options – Professional at $849 per year, or Standard at $449 per year. The Professional CRM edition, which adds more customer service functionality, requires the purchase of a $1,999 server module and also has two user options – Professional at $1,349 per year, or Standard at $749 per year. Of course, should we opt to purchase a program, it is recommended that usage be mandatory and tied into compensation/performance evaluation to help ensure Orchid International benefits from the investment. Orchid International Marketing Strategy 38

Association of National Advertisers There is one professional marketing/advertising organization which might prove beneficial for Orchid International to consider joining. The Association of National Advertisers is a marketing association with over 350 organization members dedicated to making marketing efforts more fruitful and accountable. The ANA provides the following benefits: access to proprietary marketing information via the ANA web site database; custom research on demand – each member organization can request marketing research up to five times annually; survey opportunities to get peer feedback or benchmark surveys – members at our current level can request up to two benchmark surveys among other ANA members; opportunities to meet in peer-to-peer forums to discuss marketing knowledge, to network, and to learn from the experiences of other organizations; access to advanced training and assessment from experienced marketing professionals and academics; and, opportunities to meet locally in regional meetings, workshops, senior officer roundtables and personal presentations. The annual cost of ANA membership for Orchid International would be $5,500. As of May, 2005, the ANA’s membership included: 3M, American Airlines, American Honda Motor Co., Anheuser-Busch, AT&T, Bank of America, Bayer, Black & Decker, BMW of North America, LLC, Boeing, ChevronTexaco, Coca-Cola, ConocoPhillips, Coors Brewing Company, DaimlerChrysler Corporation, Dell, Delta Air Lines, Dow Corning, DuPont, Eli Lilly and Company, Exxon Mobile Corporation, Ford Motor Company, G.E., General Motors Corporation, The Gillette Company, Goodyear, Hamilton Beach/Proctor-Silex, Inc., Harley Davidson, Inc., Hitachi, The Home Depot, Inc., Hyundai Motor America, IBM, Johnson & Johnson, Kia Motors America, Inc., Lennox Industries, Lexus, Lowe’s, Mazda North American Operations, McDonald’s, Mercedes-Benz USA, LLC, Microsoft, Mitsubishi Motor Sales of America, Inc., Motorola, Navistar International Company, Nestle Purina, Nissan North America, Northwest Airlines, Panasonic, PepsiCo, PGA Tour, Inc., Phillips Electronics North American Corp., Procter & Gamble, Robert Bosch Corporation, Shell Oil, Siemens, Sony, The Stanley Works, Suzuki Motor Corporation, Toyota Motor Sales U.S.A., Inc., United Air Lines, Volkswagen of America, Wal-Mart, Walt Disney, Whirlpool, and Xerox. Orchid International Marketing Strategy 39

APPENDIX

2004 Production by North American Auto Assembly Plants • AM General – Mishawaka, Indiana = 29,955. • AutoAlliance – Flat Rock, Michigan = 133,271. • BMW – Spartanburg, South Carolina = 143,136. • CAMI – Ingersoll, Ontario, Canada = 131,190. • DaimlerChrysler – Vance, Alabama = 73,500; Newark, Delaware = 160,703; Belvidere, Illinois = 140,848; Detroit, Michigan – Conner Avenue = 2,469, Jefferson North = 194,227; Warren, Michigan – Warren Truck = 288,269, Sterling Heights = 207,449; St. Louis, Missouri – St. Louis North = 173,269, St. Louis South = 201,813; Toledo, Ohio – Toledo North = 224,067, Toledo South = 97,701; Gaffney, South Carolina = 11,337; Brampton, Ontario, Canada = 209,045; Windsor, Ontario, Canada = 346,233; Saltillo, Mexico = 185,032; and, Toluca, Mexico = 156,451. • Ford – Atlanta, Georgia = 235,542; Chicago, Illinois = 142,698; Kansas City, Missouri – Kansas City SUV = 244,806, Kansas City Truck = 248,242; Louisville, Kentucky – Louisville Assembly = 263,184, Kentucky Truck = 395,168; Detroit, Michigan = 10,630; Dearborn, Michigan = 159,254; Wayne, Michigan – Wayne Assembly = 184,805, Michigan Truck = 210,497; Wixon, Michigan = 92,320; St. Paul, Minnesota = 148, 993; St. Louis, Missouri = 184,526; Avon Lake, Ohio = 42,949; Lorain, Ohio = 201,319; Norkfolk, Virginia = 238,869; Oakville, Ontario, Canada = 145,547; St. Thomas, Ontario, Canada = 170,409; Edison, New Jersey = 10,801; Cuautitlan, Mexico = 35,927; and, Hermosillo, Mexico = 59,344. • General Motors – Wilmington, Delaware = 11,729; Doraville, Georgia = 160,148; Fort Wayne, Indiana = 247, 041; Bowling Green, Kentucky = 34,037; Shreveport, Louisiana = 217,149; Baltimore, Maryland (closing 2005) = 49,056; Flint, Michigan – #1 = 171,070, #3 = 34,345; Detroit-Hamtramck, Michigan = 178,385; Lansing, Michigan – Lansing Craft Centre = 64,207, Lansing Grand River = 127,739, Lansing M Plant (closing 2005) = 176,027; Orion Township, Orchid International Marketing Strategy 40

Michigan = 74,870; Pontiac, Michigan; Kansas City, Kansas = 227,064; Wentzville, Missouri = 173,644; Linden, New Jersey (closing 2005) = 28,356; Lordstown, Ohio = 230,042; Moraine, Ohio = 320,850; Oklahoma City, Oklahoma = 133,779; Spring Hill, Tennessee = 211,911; Arlington, Texas = 202,841; Janesville, Wisconsin – #1 = 215,755, #3 = 4,219; Oshawa, Ontario, Canada – Oshawa 1 = 354,414, Oshawa 2 = 249,238, Oshawa Truck Assembly = 320,210; Ramos Arizpe, Mexico = 225,259; Silao, Mexico = 240,845; and, Toluca, Mexico = 19,972. • Honda – Lincoln, Alabama = 179,700; East Liberty, Ohio = 190,731; Marysville, Ohio = 432,972; Alliston, Ontario, Canada = 392,528; and, El Salto Jalisco, Mexico = 21,824. • Hyundai – Montgomery, Alabama. • Mitsubishi – Normal, Illinois = 113,280. • Nissan – Canton, Mississippi = 267,354; Smyrna, Tennessee 487,406= ; Aguascalientes, Mexico = 194,009; and, Cuernavaca, Mexico = 119,598. • NUMMI – Fremont, California = 380,678. • Renault – Aguascalientes, Mexico = 10,788; and Cuernavaca, Mexico = 716. • Subaru – Lafayette, Indiana = 118,700. • Toyota – Princeton, Indiana = 374,292; Georgetown, Kentucky = 470,292; Cambridge, Ontario, Canada = 287,859; and, Tijuana, Mexico = 238. • Volkswagen – Puebla, Mexico = 225,342. Source: www.autonewsdatacenter.com Orchid International Marketing Strategy 41

North American Seat Adjuster Market Share

OEM Supplier 2006 Projections 2007 Projections 2008 Projections BMW Hammerstein 178,112 61.7% 79,554 26.2% 74,258 24.3% Unknown 110,784 38.3% 224,128 73.8% 231,562 75.7%

DaimlerChrysler Brose 90,249 1.4% 113,348 1.7% 108,782 1.7% Daewoo 566,240 8.7% 240,972 3.6% 117,366 1.8% Delta 290,472 4.4% 140,924 2.1% - 0.0% Dura 65,029 1.0% - 0.0% - 0.0% Dynamec - 0.0% - 0.0% - 0.0% Faurecia - 0.0% - 0.0% - 0.0% Hammerstein 1,386,382 21.2% 1,333,801 20.2% 1,261,348 19.2% Imasen 229,824 3.5% 206,406 3.1% 183,878 2.8% Intier 2,034,509 31.1% 1,930,338 29.2% 1,638,547 25.0% Johnson Controls 87,886 1.3% - 0.0% - 0.0% Lear 309,635 4.7% 129,448 2.0% 64,043 1.0% Unknown 1,472,137 22.5% 2,519,414 38.1% 3,185,043 48.5%

Ford Delta 168,696 2.3% 165,726 2.3% 77,656 1.1% Dura 322,646 4.3% 436,042 6.1% 558,115 7.9% Faurecia 210,563 2.8% - 0.0% - 0.0% Hammerstein 494,640 6.7% 463,410 6.5% 433,966 6.1% Intier 3,196,971 43.1% 2,603,236 36.3% 2,481,134 35.1% Johnson Controls 1,134,901 15.3% 1,016,746 14.2% 839,366 11.9% Lear 24,425 0.3% - 0.0% - 0.0% Unknown 1,866,978 25.2% 2,486,357 34.7% 2,682,645 37.9%

Fuji Heavy Toyo - 0.0% - 0.0% - 0.0% Unknown 275,940 100.0% 320,486 100.0% 368,334 100.0%

General Motors Aisin 153,484 1.4% 159,744 1.5% 150,446 1.4% Dura 2,968,545 26.7% 1,131,231 10.4% 745,629 6.8% Faurecia 1,876,116 16.9% 1,405,398 12.9% 745,991 6.9% Intier 2,399,446 21.6% 2,017,739 18.6% 1,628,009 15.0% Johnson Controls 675,567 6.1% 497,785 4.6% 379,580 3.5% Keiper 53,798 0.5% - 0.0% - 0.0% Lear 1,962,250 17.6% 3,487,128 32.1% 3,509,605 32.2% Shape 269,998 2.4% 209,477 1.9% 151,129 1.4% Unknown 773,552 6.9% 1,439,800 13.2% 1,693,668 15.6%

Honda Faurecia 334,980 10.4% 178,806 5.3% - 0.0% Imasen 447,403 13.9% 275,011 8.2% 80,714 2.3% Intier 813,009 25.3% 424,652 12.6% - 0.0% Johnson Controls 133,992 4.2% 71,522 2.1% - 0.0% Unknown 1,479,888 46.1% 2,422,545 71.8% 3,407,648 97.7%

Hyundai Unknown 454,882 100.0% 547,428 100.0% 597,816 100.0% Orchid International Marketing Strategy 42

NUMMI S.W. Mfg. 731,424 100.0% 287,970 39.8% 264,918 36.8% Unknown - 0.0% 435,312 60.2% 454,698 63.2%

Renault/Nissan Ohi 450,516 17.9% 110,025 4.4% 25,877 1.1% Toyo 1,227,034 48.6% 1,142,192 45.8% 1,031,128 42.4% Unknown 845,420 33.5% 1,239,396 49.7% 1,375,922 56.6%

Suzuki Aisin - 0.0% - 0.0% - 0.0%

Toyota Aisin 338,920 13.0% 289,528 9.2% 174,934 5.4% Lear 54,107 2.1% - 0.0% - 0.0% S.W. Mfg. 1,244,665 47.9% 496,973 15.8% 367,705 11.3% Unknown 961,060 37.0% 2,353,542 75.0% 2,719,218 83.4%

Volkswagen Brose 70,168 8.7% 58,712 7.3% 27,743 3.8% Unknown 732,122 91.3% 747,250 92.7% 696,073 96.2% Orchid International Marketing Strategy 43

Competitors by Geographic Area – Stamping & Assembly Alabama • Choice Fabricators, Inc. – Located in Attalla, Alabama, Choice Fabricators, Inc. employs 120 and provides metal stamping, assembly and coating services to the appliance, telecommunications, and compressor industries. The company utilizes over 40 presses ranging in size from 60 to 800 tons. www.choicefab.com • KTH Parts Industries, Inc. – Located in Leesburg, Alabama and Saint Paris, Ohio, KTH Parts Industries employs over 725. The company utilizes presses up to 1,000 tons, and provides metal stamping to the automotive industry. www.kth.net • Self Industries, Inc. – Located in Birmingham, Alabama, privately-held Self Industries employs 130 and generates sales of $11.9 million. Self Industries produces metal stampings, container rings, special dies and machine tools, as well as portable tanks. • Stamped Products, Inc. – Located in Gadsden, Alabama, Stamped Products, Inc. employs 198 and is a subsidiary of Mid South Inc. (MSI). Stamped Products, Inc. provides prototyping, stamping, welding and assembly to the recreation, automotive, HVAC and appliance industries. • Vulcan Inc. – Located in Foley, Alabama, privately-held Vulcan Inc. employs 236 and generates sales of $19.9 million. Vulcan Inc. produces metal stampings including signs, lawn and garden equipment, and misc. • Weaver Diversified Enterprises – Located in Gadsden, Alabama, privately-held Weaver Diversified Enterprises employs 177 and generates sales of $15.4 Georgia million. • Clairon Metals Corporation – Located in Covington, Georgia, privately- held Clairon Metals Corporation employs 260 and generates sales of $22 million. www.claironmetals.com • Gill Manufacturing – Located in Trenton, Georgia, privately-held Gill Manufacturing employs 185 and generates sales of $14.7 million. Orchid International Marketing Strategy 44

• Oneda Corporation – Located in Columbus, Georgia, Oneda Corporation employs 80, and utilizes press ranging in size from 25 to 500 tons. The company provides metal stamping, welding and assembly services to the automotive and electronic industries. www.oneda.com • Rome Tool & Die Co. Inc. – Located in Rome, Georgia, privately-held Rome Tool & Die employs 130 and generates sales of $30.9 million. Rome Tool & Die produces metal stampings, brake shoes and tools, dies and jigs. Press sizes range in size up to 2,000 tons. www.rometool.com

Illinois • ODM Tool & Manufacturing Company Inc. – Located in McCook, Illinois, ODM Tool & Manufacturing Company Inc. employs 90 and operates two facilities. A tier 2 supplier of stamped parts and assemblies, the company utilizes presses ranging in size from 60 to 1,000 tons. www.odmtool.com • Parkview Metal Products – With facilities in Chicago and Bensenville, Illinois, Los Cruces, New Mexico, San Marcos, Texas and Tijuana, Baja California, Parkview Metal Products employs over 450 and provides prototyping, short run and full progressive stamping and assembly services to the automotive and other industries. The Chicago facility has presses ranging in size from 175 to 600 tons. The Bensenville facility provides welding and assembly services. The Las Cruces facility has presses ranging in size from 100 to 600 tons. The San Marcos facility has presses ranging in size from 75 to 600 tons and the Tijuana facility has presses ranging in size from 88 to 440 tons. www.parkviewmetal.com • Rockford Toolcraft, Inc. – Located in Rockford, Illinois, Rockford Toolcraft, Inc. employs 135 in two facilities. Presses range in size from 100 to 1,500 tons, and the company counts Freighliner, Dura and Eaton as satisfied customers. www.rockfordtoolcraft.com Orchid International Marketing Strategy 45

Indiana • Austin Tri-Hawk Automotive – Located in Austin, Indiana, privately-held Austin Tri-Hawk Automotive employs 170 and generates sales of $12.9 million. www.tri-hawk.com • Batesville Tool & Die Inc. – Located in Batesville, Indiana, Btd Manufacturing, Inc. employs 500 and generates sales of $67.8 million. The company utilizes 43 presses ranging in size from 50 to 800 tons. The company also has a facility in Mexico, Troqueladora Batesville de Mexico, with 45 employs and four presses ranging in size from 100 to 300 tons (dated information from 2000). www.btdinc.net • Central Manufacturing Inc. – Located in Parker City, Indiana, privately-held Central Manufacturing Inc. employs 160 and generates sales of $10.2 million. The parent company name is Lift-A-Loft Corporation. Central Manufacturing Inc. utilizes presses ranging in size from 45 to 400 tons, and serves the automotive and other industries. www.centralmfginc.com, www.liftaloft.com • Deflecta Shield Corporation – Located in Howe, Indiana, privately-held Deflecta Shield Corporation employs 363 and generates sales of $31 million. Deflecta Shield Corporation produces aluminum tool boxes and running boards. • Goshen Stamping Co Inc. – Located in Goshen, Indiana, privately-held Goshen Stamping Co Inc. employs 100 and generates sales of $13.2 million. Goshen Stamping Co Inc. produces metal stampings and nonferrous die castings. Goshen Stamping Co. Inc. serves the ladder and recreational vehicle industries, and is growing its business in the automotive and rubber industries. The company utilizes 37 presses (14 completely automatic lines) ranging in size from 20 to 250 tons. www.goshenstamping.com • Kauffman Products, Inc. – Located in Carmel, Indiana, Kauffman Products, Inc. employs 125. The company offers metal stamping, welding and assembly, and is a tier 1 supplier to Chrysler. Kauffman utilizes pressing ranging up to 550 tons. www.kauffmanproducts.com Orchid International Marketing Strategy 46

• Logan Stampings, Inc. – Located in Logansport, Indiana, privately-held Logan Stampings, Inc. employs 80 and generates sales of $10 million. www.loganstampings.com • Millennium Industries Corp. – Located in Ligonier, Indiana, privately-held Millennium Industries Corp. employs 367 and generates sales of $48.36 million. • MPI International Inc. – Located in Knox, Indiana, MPI International employs 260 and generates sales of $18.7 million. MPI International produces automotive metal stampings. The parent company name is Morgenthaler LLP. • Mursix Corporation – Located in Muncie, Indiana, privately-held Mursix Corporation employs 140 and generates sales of $14.57 million. Mursix Corporation produces metal stampings and wire harness assemblies. • Specialty Blanks Inc. – Located in Terre Haute, Indiana, Specialty Blanks Inc. employs 181 and generates sales of $16.8 million. Specialty Blanks Inc. produces metal stampings and industrial machinery and provides metal heat treating. The parent name is Ormet Corporation A Del Corp. • Stone City Products Inc. – Located in Bedford, Indiana, privately-held Stone City Products Inc. employs 126 and generates sales of $12 million. Stone City Products utilizes over 30 presses ranging in size up to 600 tons. The company also offers welding and assembly services to the automotive and HVAC industries among others. www.stonecityproducts.com • Wayne Manufacturing Corp. – Located in Laotto, Indiana, Wayne Manufacturing Corp. employs 91 and generates sales of $14 million.

Kentucky • Highlands Diversified Services – Located in London, Kentucky, privately- held Highlands Diversified Services employs 228 and generates sales of $25 million. Highlands produces metal stampings and electrical equipment and supplies. Highlands is an affiliate of Mid-South Inc. (MSI), a diversified company with facilities in Gadsden, Alabama and Annville and London, Kentucky offering a wide range of products and services including plastic injection molding, metal stamping, electronic circuitry and assembly. These companies serve Lear, Orchid International Marketing Strategy 47

Faurecia, Frigidaire, Lexmark, Yotek and Douglas Autotech as their customers. www.highlandsdiversified.com • Ken-Tron Mfg. Inc. – Located in Owensboro, Kentucky, Ken-Tron Mfg. Inc. employs 85 and generates sales of $9.3 million. The company utilizes presses ranging in size from 2 to 60 tons. www.ken-tron.com • Precision Tool & Die & Machine Co. – Located in Louisville, Kentucky, Precision Tool & Die & Machine Co. employs 410 and generates sales of $35.1 million. Precision Tool & Die produces metal stampings, dies, tools, jigs and fixtures, as well as fabricated pipe fittings. www.precisionelamex.com • Premium Allied Tool Inc. – Located in Philpot, Kentucky, privately-held Premium Allied Tool Inc. employs 330 and generates sales of $28.1 million. Premium Allied Tool Inc. produces metal stampings, fabricated wire products and plate work. • Star Manufacturing Company – Located in Lexington, Kentucky, privately- held Star Manufacturing Company employs 80 and generates sales of $9.5 million. Star Manufacturing Company produces metal stampings, dies, tools and jigs and provides welding repair.

Michigan • Pridgeon & Clay, Inc. – Located in Grand Rapids, Michigan and Franklin, Indiana, Pridgeon & Clay, Inc. employs over 730. With over 70 presses ranging in size from 40 to 1,500 tons, the company provides metal stamping services to primarily the automotive industry. www.pridgeonandclay.com • Radar Industries, Inc. – With three facilities located in Warren, Michigan, Radar Industries, Inc. employs 125. The company has presses ranging in size from 300 to 2,200 tons and serves the automotive and lawn & garden industries. www.radarind.com • Ralco Industries, Inc. – Located in Auburn Hills, Michigan, Ralco Industries, Inc. employs 100 and has presses ranging in size from 200 to 600 tons. The company is able to provide low to high volume runs for the automotive and lawn & garden industries. www.ralcoind.com Orchid International Marketing Strategy 48

• The Su-Dan Corporation – With facilities in Rochester Hills and Orion, Michigan and Belton, South Carolina, The Su-Dan Corporation employs 180 and provides a wide range of services including metal stamping, welding, assembly and plastic molding. The Belton, South Carolina and Rochester Hills facilities have presses ranging in size from 110 to 1,000 tons. www.su- dan.com Mississippi • Groen, Inc. – Located in Jackson, Mississippi, publicly-owned (DOV) Groen, Inc., of the Dover Corporation, employs 520 and generates sales of $53 million. Ohio • A.J. Rose Manufacturing Company – Located in Avon and Cleveland, Ohio, A.J. Rose Manufacturing Company employs 370. The company produces a wide array of products and services, and serves both the tier 1 and tier 2 automotive markets. Presses range in size up to 1,000 tons, and the company also provides welding and assembly services. www.ajrose.com • American Metal Stamping – Located in Cleveland, Ohio, American Metal Stamping is a sister company to Mid-America Steel, giving it a competitive advantage due to steel pricing. The company employs 350 and serves the automotive, lawn & garden, recreational vehicle and appliance industries among others. Presses range in size from 10 to 3,000 tons. www.contractstamping.com • Anchor Manufacturing Group, Inc. – Located in Cleveland, Ohio, Anchor Manufacturing Group, Inc. employs 350 and is a tier 1 and tier 2 automotive supplier of metal stampings and assemblies. The company utilizes presses ranging in size up to 2,000 tons. www.anchor-mfg.com • Bettcher Manufacturing – Located in Brook Park, Ohio, Bettcher Manufacturing employs 110 and provides metal stampings for the tier 2 and tier 3 automotive customers as well as the appliance, hand tool, lawn & garden, electric motor, and HVAC industries. The company utilizes 31 presses ranging in size from 8 to 900 tons. The company also has a facility in Reynosa, Mexico. www.bettcherllc.com Orchid International Marketing Strategy 49

• Cole Tool & Die Company – Located in Mansfield, Ohio, Cool Tool & Die Company employs 120. The company utilizes presses ranging up to 1,000 tons, and provides metal stamping, welding and assembly to the automotive, aircraft, appliance and other industries. www.coletool.com • Pentaflex, Inc. – Located in Springfield, Ohio, Pentaflex employs 150. With presses ranging in size from 75 to 2,300 tons, Pentaflex supplies metal stamping, welding and assembly services to tier 2 customers. www.pentaflex.com • Select International Corp. – Located in Dayton, Ohio, Select International Corp. employs over 500 and generates sales of $70 million. The company has grown to fill five local plants providing metal stamping and various other services to the automotive and consumer products markets. The facility dedicated to traditional stamping has presses ranging in size from 88 to 1,000 tons and produces over 200 parts for 25 customers. www.selecttoolcorp.com • Shiloh Corporation – Located in Mansfield, Ohio, publicly-owned (SHLO) Shiloh Corporation, of Shiloh Industries, Inc., employs 1,120 and generates sales of $96.6 million. Shiloh Corporation produces heavy metal stampings. • Stamtex Metal Stampings – Located in Niles, Ohio, privately-held Stamtex Metal Stampings employs over 50. Presses range in size from 35 to 1,000 tons, and the company provides metal stamping and other services to the automotive industry. www.stamtexmp.com • Superior Metal Products Inc. – Located in Lima, Ohio, privately-held Superior Metal Products Inc. employs 1,500 and generates sales of $250 million. • Wren Industries, Inc. – Located in Dayton, Ohio, Wren Industries, Inc. employs over 200. Providing metal stampings, assembly and plastic injection services, the company counts Aisin, Eaton, Delphi and Trico as satisfied customers. Presses range in size from 110 to 600 tons. www.wrenind.com Tennessee • Aristocrat Stamping & Mfg Co. – Located in Knoxville, Tennessee, privately-held Aristocrat Stamping & Mfg Co. employs 150 and generates sales of $9 million. Orchid International Marketing Strategy 50

• Genco Stamping & Manufacturing – Located in Cookeville, Tennessee, privately-held Genco Stamping & Manufacturing employs 100 and generates sales of $12.5 million. • GMP Metal Products – Located in Humboldt, Tennessee, GMP Metal Products generates sales of $10.1 million. Wozniak Industries Inc. is the parent company. • Hendrick Manufacturing Company – Located in Memphis, Tennessee, privately-held Hendrick Manufacturing Company employs 155 and generates sales of $14.3 million. • Henderson Stamping & Production – Located in Henderson, Tennessee, privately-held Henderson Stamping & Production employs 40 and generates sales of $12.5 million. • Metcom Inc. – Located in Cookeville, Tennessee, privately-held Metcom Inc. employs 100 and generates sales of $10 million. Metcom Inc. serves the appliance, filter and lighting industries with presses ranging up to 250 tons in size. www.metcomusa.com • Precision Industries, Inc. – Located in Portland, Tennessee, privately-held Precision Industries, Inc. employs 140 and generates sales of $9.5 million. Precision Industries produces metal stampings, industrial machinery and dies, tools, jigs and fixtures. Kentucky Electronics Inc. is the parent company of Precision Industries, Inc. The company serves the automotive, electronic, water treatment and power tool industries. Precision Industries, Inc. utilizes over 20 presses ranging in size from 5 to 400 tons. www.precind.com • Southtech LLC – Located in Lebanon, Tennessee, privately-held Southtech LLC employs 250 and generates sales of $40 million. Southtech LLC is owned by parent company L&W Inc. • Superior Metal Products, Inc. – Located in Chuckey, Tennessee, privately-held Superior Metal Products, Inc. employs 125 and generates sales of $5.95 million. Superior Metal Products, Inc. produces metal stampings and tool and die equipment, as well as providing laser burning welding. Superior Metal Products provides single-piece prototyping services as well as high volume production Orchid International Marketing Strategy 51

capabilities. The company’s presses range in size from 10 to 600 tons. www.superiormetal.com • Tennessee Stampings LLC – Located in Portland, Tennessee, privately-held Tennessee Stampings LLC employs 85 and generates sales of $6.7 million. Tennessee Stampings LLC produces metal stampings for the automotive industry. • Tennessee Stampings Pulaski LLC – Located in Pulaski, Tennessee, privately- held Tennessee Stampings employs 50 and generates sales of $3.4 million. Tennessee Stampings is a tier 2 producer of automotive stampings. www.tennesseestampings.com Wisconsin • Acro Metal Stamping Company – Located in Milwaukee, Wisconsin, Acro Metal Stamping Company utilizes 28 presses ranging in size from 5 to 200 tons and provides volume work ranging from 50 pieces up to high volume runs. www.acrometalstamping.com • Luitink Manufacturing Company – Located in Menomonee Falls, Wisconsin, Luitink Manufacturing Company employs 100. The company utilizes presses ranging in size from 30 to 880 tons, and provides metal stampings, welding and assemblies to the automotive, lawn & garden, electric motor, and recreational vehicle industries. www.luitink.com

Ontario • Cambridge Stampings, Inc. – Located in Cambridge, Ontario, Cambridge Stampings, Inc. is a tier 2 automotive metal stampings supplier. Currently, the company operates 20 presses ranging from 125 to 1,000 tons and has 70 employees. The company offers welding and riveting services as well. • Clover Tool Manufacturing LTD. – Located in Concord, Ontario, Clover Tool Manufacturing LTD. employs 100 operating in two facilities. The Stamping Plant, Tool & Die Shop has six presses ranging from 250 to 800 tons. The Stamping Plant, Sub Assembly facility has seven presses ranging from 100 to 260 tons, as well as robotic mig and spot welding. Clover Tool Manufacturing Orchid International Marketing Strategy 52

provides window regulators, hinges, brackets, seat tracks and misc. stamped parts and sub assemblies to the automotive and office furniture industries. • Fleetwood Metal Industries – Located in Tilbury, Tillsonburg and Otterville, Ontario, and Sylacauga, Alabama, Fleetwood Metal Industries is a tier 2 supplier to the automotive industry. The Tilbury facility has 20 presses ranging from 150-600 tons, as well as spot and mig welding and assembly; the Tillsonburg, Ontario facility has nine presses ranging from 250-600 tons, two transfer presses (1,500 and 2,000); the Otterville facility has 24 presses ranging from 100-1,000 tons, as well as welding and assembly; and the Sylacauga, Alabama facility has an 800T press, 600T press and 200T press, as well as spot and mig welding capacity. www.fleetwoodmetal.com • Metrican – Located in Burlington, Ontario, Metrican is a tier 2 metal stamping supplier to the automotive industry. Metrican also supplies metal stampings for agriculture equipment and household appliances. The company operates 17 presses ranging from 100 to 800 tons. Metrican also offers welding services. Industry rumors are that Metrican will be expanding their operations by opening a facility in Dickson, Tennessee. www.metricanstamping.com • SKD Company – Located in Brampton and Milton, Ontario, Tlalnepantla, Mexico and Jonesville, Michigan, the Troy, Michican-based SKD Company is a tier 1 automotive metal stampings supplier. The Brampton facility provides stamping and assembly and has transfer presses ranging from 800 to 1,600 tons; the Milton facility produces medium to large stampings and welded modules and has transfer presses ranging from 1,600 to 3,000 tons; the SKD de Mexico facility produces stampings and assemblies and utilizes transfer presses ranging from 100 to 1,600 tons; and the Jonesville, Michigan facility provides stampings and assemblies. All plants provide robotic MIG and ARC welding. www.skdautomotive.com • Windsor Machine Group – Located in Windsor, Ontario, Windsor Machine Group provides a variety of manufacturing and engineering services and produces metal stampings for the automotive industry. The company headquarters is located in Taylor, Michigan. www.windsormachine.com Orchid International Marketing Strategy 53

• Woodbine Tool & Die Manufacturing Ltd. – Located in Ontario, Woodbine Tool & Die Manufacturing Ltd. employs over 300 in both its Tooling and Stamping facilities. Utilizing 22 presses ranging in size from 25 to 1,000 tons, Woodbine supplies dies, stampings and assemblies to the automotive and other industries. www.wtd.ca

Mexico • Bettcher Manufacturing -- Located in Reynosa, Mexico, Bettcher Manufacturing operates a stamping facility utilizing presses that range in size from 60 to 400 tons. • Estampados Metalicos Parkview de Mexico – Located in Tijuana, Baja California, Parkview Metal Products has presses ranging in size from 88 to 440 tons. www.parkviewmetal.com • Troqueladora Batesville de Mexico – Located in Queretaro, Mexico, Batesville opened the facility in 2000, initially employing 45. At that time, the facility had four presses ranging in size from 100 to 300 tons. Orchid International Marketing Strategy 54

Targeted Research – Industry Associations • American Society of Mechanical Engineers • Association of Home Appliance Manufacturers • Air Conditioning & Refrigeration Institute • American Society of Heating, Refrig. & AC Engineers, Inc. • Business & Institutional Furniture Manufacturer’s Assn • Canadian Appliance Manufacturers Association • Commercial Refrigeration Manufacturers • Electrical Manufacturing & Coil Winding Association • Gas Appliance Manufacturers’ A ssociation • Heating, Refrigeration & Air Conditioning Institute of Canada • Industrial Designers Society of America • International Iron & Steel Institute • National Appliance Parts Suppliers Association • National Association of Purchasing Management • National Society of Professional Engineers • Power Tool Institute, Inc. • Steel Manufacturers Association • Steel Service Center Institute • Society of Automotive Engineers • Society of Manufacturing Engineers • Small Motors & Motion Association Orchid International Marketing Strategy 55

Public Relations Resources Regional Publications • The Tennessean • Nashville Business Journal • Herald Citizen • Lebanon Democrat • Smithville Review • The Chronicle of Mt. Juliet • The Monitor • Milwaukee Journal Sentinel • Wisconsin State Journal • Toronto Star • Toronto Sun • The Globe and Mail • Plant (Canada’s Industry Magazine

Manufacturing/Stamping Industry Publications • Advanced Manufacturing • American Machinist • Assembly Magazine • Machine Design • The Manufacturer • Manufacturing Business Technology • Manufacturing & Technology News • MetalForming Magazine • Modern Machine Shop • Product Finishing • Professional Tool & Equipment News • Stamping Journal Orchid International Marketing Strategy 56

Target Market Publications • Appliance Magazine • Appliance Design Magazine • Automotive Design & Production • Automotive News • Automotive Engineering International • Automotive Industries • Automotive Manufacturing Solutions

Other • Human Resource Executives • Workforce