Some Small Companies Grow As Large Firms Cut Costs

RAMIT PLUSHNICK-MASTI

LATROBE, Pa. (AP) — For 10 years, Conicity Technology has been trying to convince the nation's largest manufacturers — from auto companies to Caterpillar — that its products could save them millions of dollars.

The technology that extends the life of manufacturing tools was a tough sale when the economy was growing. But since the recession began, Conicity's revenue is up 75 percent.

Welcome to another side of the new frugality sweeping the country from individual consumers to global conglomerates: Small companies that offer unique ways to cut costs or help big companies retain customers are seeing their businesses blossom.

"That's the beauty of a small business," said Lynn Vos, the Savannah-area director of the University of Georgia's Small Business Development Center. Small businesses are able to roll out products quicker than corporate behemoths. "They can respond quickly to changing market forces and they're not afraid to try."

Conicity has perfected a technique known as microgeometry — a process that gives tool blades a unique shape, extending their life. Car manufacturers, for example, use a $200 carbide drill to make bolt holes on crankshafts. Typically, the drill bores about 600 holes before breaking. With the Conicity edge, the same drill can make 2,400 holes. Companies such as Ford, Chrysler and GM spend upward of $200 million a year on drills and other tools.