Today we visited the company I am assigned to investigate over the course of this trip: Grob-Werke! I found this company visit extremely interesting, as it showed me how successful a company can become through vertical integration. (Unfortunately, due to the company’s policies, I was unable to take any pictures throughout the course of the tour).

When we arrived at Grob, we were given a presentation on the fundamental information about the company as a whole, as well as what they do for the companies that they work with (such as Ford and Tesla). We learned that they build machines that act as automated metal lathes, which can produce extremely detailed products, and also build specialized parts for customers using their machines. Shortly thereafter, we were given a walking tour of the plant, and we got to see this dynamic in action.

We first visited a building that housed many finished machines, each creating a specialized part for Grob’s customers. We saw many examples of the intricate and incredibly detailed products that their machines can make, like sculptures of a church’s dome or an altered recreation of the iconic picture “Raising the Flag on Iwo Jima.” Then, we moved to another area of the plant, in which they actually produce the machines themselves. This creates an interesting dynamic within the company: Grob builds the machines that they send to their customers using their own specialized machines. If a machine of theirs breaks, they simply call their own technicians to fix it, and the manufacturing process continues nearly unimpacted. This makes Grob much less reliant upon the proper functionality of a supply chain, and much less prone to supply chain issues having a hugely detrimental effect on them. Additionally, since their machines can produce nearly any product, Grob is in a position where they will likely always be able to overcome shifts in the landscapes of the industries that they serve.

This made me reflect upon our visit to Hoerbiger yesterday. I realized that, although Hoerbiger is currently successful, they may see some large issues in the coming years as the need for multi-speed transmissions in vehicles (and therefore, the need for the product they are most focused on producing) decreases greatly. Grob will likely never face this hardship, not only because their machines can produce nearly any product, but also because they take on the role of producing parts for their customers as well. Although it was clear that Hoerbiger was trying to diversify their products by developing valves for ventilators, it seems that they haven’t yet shifted their focus to these new applications of its preexisting technology. This will likely make it harder for them to make that transition when it is crucial for them to do so.

Although I had a bit of an idea of the work Grob was doing due to researching the company prior to the visit, it far exceeded my expectations. I had no idea that the company was so independent of the supply chain, and that it is practically set up for success due to its independence!

Thanks for following along with me on this amazing adventure,

– Juliana Alvelo-Davies