We sell our products in most of the industrialized countries of the world through
a combination of distributors, agents, and manufacturers' representatives. In
certain areas of China, France, Germany, India, North America, and the United
Kingdom, we have also used a direct sales force for portions of our product lines.
Generally, our distributors have an exclusive right to sell our products in a
defined geographic area. Our distributors operate as independent businesses and
purchase products from us at discounted prices for their customers, while agents
and representatives sell products on our behalf and receive commissions on sales.
Our discount schedule is adjusted to reflect the level of pre and post sales support
offered by our distributors. Our direct sales personnel earn a fixed salary plus
commission. Sales through distributors are made only on standard commercial open
account terms or through letters of credit. Distributors generally take title
to products upon shipment from our facilities and do not have any special return
privileges.
Our standard ATA products are sold through direct telephone orders and via
our web site at www.shophardinge.com. Custom or special solutions are sold through
direct sales and agents. In most cases, we are able to package and ship in-stock
tooling, accessories, and repair parts within 24 hours of receiving orders.
We can package and ship items with heavy demand within a few hours. In other
parts of the world, these products are sold on either a direct sales basis or
through distributor arrangements.
We promote recognition of our products in the marketplace through advertising
in trade publications, web presences, email newsletters, and participation in
industry trade shows. In addition, we market our non-machine products and capabilities
through publication of general catalogs and other targeted catalogs, which we
distribute to existing and prospective customers. We have a considerable presence
on the internet at www.hardinge.com and www.forkardt.com, where customers can
obtain information about our products and place orders for accessories, tooling,
knee mill products and repair parts.
A substantial portion of our end use customers are small and medium-sized independent
job shops, which in turn sell machined parts to their industrial customers.
Industries directly and indirectly served by us include aerospace, automotive,
computer, communications, consumer-electronics, construction equipment, defense,
energy, farm equipment, medical equipment, recreational equipment, and transportation.
