South Bend Lathe Works
Encyclopedia
South Bend Lathe is a brand of machine tool
s. Today's South Bend Lathe corporation is the successor to the original South Bend Lathe Works, an American machine tool–building firm that for many decades was one of the most important builders of metalworking lathes
in the U.S. and in the world.
The South Bend Lathe Works was established in 1906 in South Bend, Indiana
by identical twin brothers John J. O'Brien and Miles W. O'Brien. By 1930, the company was building 47% of the engine lathes sold each year in the United States. In a quarter century, South Bend Lathe Works had become the largest exclusive manufacturer of metalworking precision lathes in the world.
The 9-inch lathe was so successful that many other companies made almost direct copies (clones), including the Boxford Lathe
Model A in England; Purcell, Demco, and Sheraton in Australia
; Blomqvist and Storebro in Sweden
; and Sanches Blanes S.A. in Brazil
.
The company made an interesting case study for business-management academics during the mid-1970s when it became employee-owned under an ESOP (Employee Stock Ownership Plan)
model.
Later South Bend Lathe became a division of LeBlond Limited, which is part of the Makino
corporation, a multinational machine tool–building firm.
In 2009, the brand was sold to Shiraz Balolia, founder of the machinery firms Grizzly Industrial Inc. and Woodstock International Inc.
Under LeBlond, South Bend Lathe still produced precision machine tools, although it was not the giant of market share
that it once had been during the 1920s through 1950s. The new owner, Balolia, planned to redevelop and manage the brand as one that appeals to the demand for high-end quality that many South Bend Lathe enthusiasts share. A new line of South Bend brand machine tools is now sold through Grizzly dealers. Their niche in the manual-control machine tool market is what marketers sometimes term the "mass luxury" segment of a market, where low-end affordability blends into high-end desirability in just such a combination that buyers sense highest value
there. One of the classic marketing examples is Buick
's market position between Chevrolet
and Cadillac
. In South Bend Lathe's case, the affordability of machine tools from Taiwan or China mixes with the desirability of certain German and Japanese components (such as spindle bearings) and higher standards (compared to many Taiwanese or Chinese brands) in terms of tolerances, inspection, features, and rigidity.
Machine tool
A machine tool is a machine, typically powered other than by human muscle , used to make manufactured parts in various ways that include cutting or certain other kinds of deformation...
s. Today's South Bend Lathe corporation is the successor to the original South Bend Lathe Works, an American machine tool–building firm that for many decades was one of the most important builders of metalworking lathes
Lathe (metal)
A metal lathe or metalworking lathe is a large class of lathes designed for precisely machining relatively hard materials. They were originally designed to machine metals; however, with the advent of plastics and other materials, and with their inherent versatility, they are used in a wide range of...
in the U.S. and in the world.
The South Bend Lathe Works was established in 1906 in South Bend, Indiana
South Bend, Indiana
The city of South Bend is the county seat of St. Joseph County, Indiana, United States, on the St. Joseph River near its southernmost bend, from which it derives its name. As of the 2010 Census, the city had a total of 101,168 residents; its Metropolitan Statistical Area had a population of 316,663...
by identical twin brothers John J. O'Brien and Miles W. O'Brien. By 1930, the company was building 47% of the engine lathes sold each year in the United States. In a quarter century, South Bend Lathe Works had become the largest exclusive manufacturer of metalworking precision lathes in the world.
The 9-inch lathe was so successful that many other companies made almost direct copies (clones), including the Boxford Lathe
Boxford Lathe
Boxford Lathe was a brand of lathes produced by Denford Machine Tools from 1946 until 1952. The original factory was in Box Tree Mills, Wheatley, Halifax, West Yorkshire, England. Denford Machine Tools also produced other metalworking tools including precision measuring tools such as an optical...
Model A in England; Purcell, Demco, and Sheraton in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
; Blomqvist and Storebro in Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
; and Sanches Blanes S.A. in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
.
The company made an interesting case study for business-management academics during the mid-1970s when it became employee-owned under an ESOP (Employee Stock Ownership Plan)
Employee-owned corporation
An employee share ownership plan is the practice of companies giving staff members shares in their company as part of their salary....
model.
Later South Bend Lathe became a division of LeBlond Limited, which is part of the Makino
Makino
Makino is a global machine tool manufacturer.-History:Makino was established in 1937 by Tsunezo Makino in Japan, developing Japan's first numerically controlled milling machine in 1958 and Japan's first machining center in 1966....
corporation, a multinational machine tool–building firm.
In 2009, the brand was sold to Shiraz Balolia, founder of the machinery firms Grizzly Industrial Inc. and Woodstock International Inc.
Under LeBlond, South Bend Lathe still produced precision machine tools, although it was not the giant of market share
Market share
Market share is the percentage of a market accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful.Marketers need to be able to...
that it once had been during the 1920s through 1950s. The new owner, Balolia, planned to redevelop and manage the brand as one that appeals to the demand for high-end quality that many South Bend Lathe enthusiasts share. A new line of South Bend brand machine tools is now sold through Grizzly dealers. Their niche in the manual-control machine tool market is what marketers sometimes term the "mass luxury" segment of a market, where low-end affordability blends into high-end desirability in just such a combination that buyers sense highest value
Value
Value or values may refer to:Concepts of worth:* Value theory – overview of approaches in various disciplines* Value ** Value * Value ** Theory of value ** Value investing...
there. One of the classic marketing examples is Buick
Buick
Buick is a premium brand of General Motors . Buick models are sold in the United States, Canada, Mexico, China, Taiwan, and Israel, with China being its largest market. Buick holds the distinction as the oldest active American make...
's market position between Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
and Cadillac
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
. In South Bend Lathe's case, the affordability of machine tools from Taiwan or China mixes with the desirability of certain German and Japanese components (such as spindle bearings) and higher standards (compared to many Taiwanese or Chinese brands) in terms of tolerances, inspection, features, and rigidity.
External links
- Official site
- South Bend Lathe clones
- The South Bend Lathe Library Make Magazine, November 16th, 2011. Links to How to Run a Lathe and other publications by South Bend Lathe Works.
- The South Bend Lathe Story: What Can We Learn from an ESOP "Failure"? By Norman G. Kurland, The Center for Economic and Social Justice