what market are you really in?

Have you clearly identified the difference between your industry and your market?  So many of us use these words interchangeably, but they are not the same. And understanding the difference is essential for manufacturing success.

Your industry is the collection of companies and products that you compete against.  It’s the segment of businesses that do what you do. For example, if you manufacture metal components, your industry includes all the other manufacturers of metal components.

Your market, on the other hand, is your potential customer base.  It’s all the people who might buy what you make or sell. This includes not just those currently purchasing, but also those who could  purchase with the right awareness, product fit, or strategy.

Knowing the distinction between market and industry helps you target more effectively, position yourself competitively, and adapt to changing demand.

why it matters: your words reflects your focus 

When someone asks, “What market are you in? ” they aren't really asking who your customers are, are they?

Typically, they are asking you to tell them what you do (and most of us will answer in terms of the industry we sell to). We might say:

"We build cars."

"We build software."

"We make circuit boards."

Few, if any of us, would answer with a description of the type of people or businesses that buy what we produce. But that mindset limits your growth.

Shifting focus from what you do to who you're serving helps you uncover new opportunities, niche needs, and market trends you may otherwise overlook.

evaluating the market you're actually in

Moving beyond the question that most people think is being asked, let’s talk about what market you are actually in.  When you look at the entire pool of companies, entities or people that would purchase products like the ones that you make, how big and healthy is it? 

Ask yourself:

• Are there a lot of possible customers? 
• How much is the average sale for a product or service like yours? 
• Does that revenue allow for a strong margin, assuming you're running your business well?
• How many of these deals close every month or year?

These are the building blocks of a healthy market analysis, a step too many manufacturers skip when trying to scale.

trends and growth: don't rely on gut feel

Diving deeper, consider if the numbers above or answers are growing or shrinking compared to this time last month, quarter, or year. This insight can influence: product development, sales strategy, resource allocation, competitive positioning and much more.

You want to use data here.  Ask any entrepreneur how their market looks and they'll likely say it's thriving. Optimism runs high. There are always more opportunities, more deals, more targets and more money to be had. 

However, challenge yourself to go a little deeper, to look beyond gut instinct and and look for some real data here. Tools like: customer surveys, market trend reports, CRM lead analysis, industry publications. Let data drive your decisions, not hope.

tomorrow's market: where are you headed?

There's a lot more to market dynamics than most businesses consider, especially in the manufacturing sector. Supply chain disruptions, changing buyer expectations, new regulations, and global trends all impact the health of your market. We'll dive a little further into those nuances in future posts. 

In the meantime, revisit your assumptions. Look at how your products, processes, and partners align with the market as it exists today. Not how it looked five years ago.

At CIMx, we're continuously rolling out tools that help manufacturers stay competitive, from affordable production systems to hands-on education.      

We believe in the critical importance of manufacturing right here in North America and we work hard to keep you working.  Whether you're growing into new markets or evaluating your current ones, we want to help.

Ask us questions. You'll find that we are far more reachable than other software providers you may partner with.  We are here to help you find the right tools and use them, whether it's a Google Doc, an Excel sheet or a Production Control system built for real manufacturing floors. 

ready to understand your market?

To learn more about meeting your targets for 2025 or just getting a question answered, reach out to us today. We're here to help you identify where you stand and where you can go next.