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JOHN SHMUEL
TELEGRAPH-JOURNAL

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When Telecom giants such as Nortel started faltering earlier this decade, Guest Screw Machine Products Ltd., a machine components manufacturer in Beechwood, knew it was time to start targeting a more stable industry.

Its president, Donald Guest, realigned his company, and within a few months, started heavily focusing on the aerospace and defence sectors.

The firm was founded in 1992 after Guest returned from working in the machinery industry in Ontario, where he drew a great deal of inspiration.

Since then, Guest Screw has produced machine components for industries ranging from forestry to the nuclear sector.

For the majority of those 17 years however, its main customer was the telecom industry. "When Nortel and such companies started to show weakness in the market, we realized we needed to refocus our business or risk losing it," Guest says.

As telecom giants began to gradually reduce their orders, Guest went to the New Brunswick Aerospace and Defence Association, where he received advice on the benefits of becoming a supplier to the aerospace and defence industries.

"There was a period when things looked uncertain, but if you have determination and confidence in what you're doing and your product, then you're going to succeed," Guest says.

That ability to adapt to a changing business climate paid off, and while telecom companies fizzled, Guest Screw became a successful component supplier for a variety of aerospace and defence companies, including the U.S. and Canadian militaries.

"They made a smart move and retooled. Now they're doing a lot of their work in aerospace and defence because those are growth industries. As I understand they've been quite successful with the change," says Louis Cuppens, a retired lieutenant-general and president for the New Brunswick Aerospace and Defence Association.

Guest's 12 person operation is seeking to expand over the next three to five years. The company will be adding up to 15 new employees to the operation, and building a new 5,000 square foot extension to the current Beechwood facility.

"We're interested in getting new talent into the company, people who are innovative but also proud of their work. That's been the key to our success, and it's allowed us to produce quality components, but also competitively priced products," Guest says.

The company is also aiming to achieve its AS9100 certification, an industry term that means the company is recognized as an extremely high quality producer with on-time delivery in their supply chain.

Guest explains the certification is a milestone for any company, and a necessity to do business with aerospace giants like Boeing or Lockheed Martin.

"Basically, they might have 1,000 companies apply to produce parts, and maybe 30 companies will have the AS9100 certification. Well they'll knock off the 970 companies out of the list and only consider one or two of those 30," he says.

For other companies that might be facing their own slump due to the recession, Guest says targeting new customers and even new industries can be key to survival.

"We made the right decision in supplying to a new industry, and it paid off, definitely," he says. "We have a lot of growth and a bright future to show for that."