Diversification
Ann Arbor Machine began investing in new technologies during the
early 1990s to complement its metalcutting machine operations. In 1992,
the company began an Electrical Discharge Machining (EDM) division to
research new machining methods. This group has produced some of the
fastest and most technologically advanced EDM machines in the world.
In 1994, Ann Arbor Machine acquired Ace Broach and Machine Company.
Incorporating broaching operations into the AAM’s transfer machines
enhanced Ann Arbor Machine’s ability to provide turnkey solutions to its
customers’ manufacturing problems. In addition, Ace Broach’s expertise
in building stand-alone broaching machines was further enhanced by AAM’s
substantial manufacturing capabilities.
As the company’s sales volume surpassed $50 million during the
mid-1990s, AAM began vertically-integrating some of its component
manufacturing to gain economies of scale. In 1996 the company launched
the Gear Technologies Division, to meet all of its internal gear, spline,
and spindle requirements, as well as to supply a growing number of
customers in a variety of industries.