CRG’s new Commercialization Center hit the ground running late in 2013, when CRG received a large order for Advantic syntactic materials. After five years of qualification and testing, the order came in mid-November from a contractor doing construction in the New York City subway system. The order was for approximately $600,000 worth of large panels to be installed as structural barriers.
CRG responded by doing a preliminary scale-up investigation in December, and on January 2nd the company began to stand up a manufacturing line. Starting with no new staff, no manufacturing facilities and no proven process, the company acquired capital equipment, leased a facility, obtained occupancy permits and hired manufacturing staff. The team then produced the majority of the product in the final three weeks prior to delivering it to the customer on March 14th. Operating in 40,000 square feet of facilities in Beavercreek and Kettering, Ohio, the resulting manufacturing line can produce up to $25 million per year, in product, with existing equipment, and will be transferred to Advantic LLC as the new subsidiary stands up its sales staff.
This process demonstrates integration of CRG’s new business model and its capability to rapidly transition a proprietary technology platform into production to support the launch of a new subsidiary. The process was overseen by the Commercialization Center with R&D staff and back offices providing engineering and administrative support when needed.
One of the benefits to this approach, as in this case study, is that CRG absorbs most of the risks associated with starting up a new business. Infrastructure support is already in place, and the Commercialization Center and the manufacturing staff can focus on scaling up production, optimizing processes and putting quality controls in place. Fulfillment of the order shows customer pull and the use of the technology in real-world applications.