The behemoth 1950s-era hydraulic press and the grease-infused air that permeates inside Quality Float Works Inc.'s cramped machine shop hearken back to a different age of U.S. manufacturing. It was a time when craftsmanship and innovation were demanded as much as price and volume. At the company's only facility, tucked away in a Schaumberg, Ill., industrial park, you won't see cutting-edge robotic equipment or high-tech computerized machines going to work. Also absent are colored bins, kanban cards and other tell-tale signs of the lean manufacturing initiatives championed by "modern manufacturing" gurus.

Instead, this 93-year-old family business that spans four generations relies on its reputation for building sturdy ball-like metal floats used to control liquid flow in applications ranging from water desalinization to gas tanks. Owner, president and lead engineer Sandra Westlund-Deenihan proudly carries on the legacy her grandfather built in 1915, but says to be profitable in a global economy Quality Float Works had to create new niche offerings and embrace free trade.

"I talked with my son who said, 'If we don't look at some way to innovate, we're going to die,'" says Westlund-Deenihan, whose son Jason Speer is vice president and general manager. In response, Speer started a drive to develop new products in new markets by visiting more than 80 countries over the past two years.

Quality Float Works employee Ramiro Bocanegra performs a trimming process using a lathe.

During Speer's visits he found developing countries where water purity was a concern, so the company began producing water storage products and desalinization floats with priming valves to help create fresh water. Marketing the valves and the metal rods that connect them to the floats was a major step forward for Quality Float Works. That's because many manufacturers already supplying the valves were focused domestically or on the verge of going out of business, says Westlund-Deenihan. "We created a niche market that increased our international sales," she says.

The company's global expansion has helped boost revenues 105% since 2003 to $2.2 million, while international sales have grown from 3% to 20%.

Quality Float Works' success proves small and mid-sized manufacturers can compete with larger multinational companies by focusing on specialized products and continuing to be innovative and flexible.

These are some of the traits that author and small and mid-sized manufacturing consultant Michael Collins says are critical if such companies want to not only survive but thrive in a globalized economy. In his 2006 book Saving American Manufacturing, Collins outlines the characteristics of what he refers to as the "New Stars of Manufacturing." He cites the ability to offer specialized services and to emphasize customization and short product runs as two of these characteristics. Anytime a U.S. company can produce customized, low-volume products it gains a leg up over offshore competitors, says Collins. "They can't do that, and they can't do it quickly," he says, referring to overseas suppliers.

"We have a big advantage anytime we can customize our products to something that a plant here in the United States wants," Collins says. "It isn't economically effective [offshore], and it takes communication to customize, so they're not in a very good position in China to do that."

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