What Is Husky Injection Molding

Husky Injection Molding Systems

As part of the global plastics sector, Husky used a differentiation strategy rather than low cost or dual advantage. Its primary business was in plastic injection molding equipment and related services. Of the molding techniques, injection molding is the most specialized and therefore required the most intricate, customized, and expensive equipment. Husky chose to focus its main business on a few specific machine products, sold to several plastic processors over a large geographic region. This strategy allowed Husky to focus on its core products while stimulating growth with international expansion. Its main customers were all focused primarily on the manufacturing of plastics and plastic bottles as their
However; the most complicated plastic shapes required injection molding. Husky applied this technique exclusively for its equipment. By focusing solely on this technique, Husky was able to perfect its injection molding systems and incorporate upgrades such as hot runners, which improved the quality of parts and reduced resin waste. Injection molding techniques were typically categorized by the force they could exert as this affected the type of product that could be manufactured. Husky focused on sales in the medium tonnage classification (150 – 900 tonnes), which were designed for PET preform and thinwall applications. Small-tonnage machines were excluded in its product mix as these machines are used for commodity products produced by assembly lines. The majority of large-tonnage machines were excluded which enabled Husky to keep costs down and focus on its core competency. This proved to be advantageous, as the market for injection molding equipment for the PET packaging application increased from $346 million in 1993 to $755 million in 1995 and was expected to increase to $1153 million in 1998. By focusing its resources on PET packaging applications, Husky was able to establish a first mover advantage for this particular application. Large capital expenditures and the need for reliable equipment, likely increased switching costs for customers. As a result, Husky’s reputation as durable
In order to accommodate their customers, Husky had two manufacturing plants, one in Bolton, Ontario and another in Dudelange, Luxembourg. Having manufacturing centrally located allowed Husky to take advantage of economies of scale and was important for effective service delivery. Sales and service offices were dispersed across 17 countries to provide greater attention to customer needs and to grow the business. Growth was the most robust in Europe and Asia with a year-over-year increase in revenue of 62.8 percent and 256.2 percent respectively from 1994 to