Case Study | 25 August 2025
How a Ceramic Matrix Composites Company Identified Its Supply and Demand Triggers and Integrated Them for Profitable & Sustainable Growth
Posted by : Abhishek Bhardwaj
A U.S.-based small-scale mining company moved into the ceramic matrix composites (CMC) market in 2019, aiming to capitalize on the increasing demand in aerospace, automotive, and defense sectors. Despite initial days' success, the company struggled with fluctuating raw material prices, inconsistent supply chains, and a misalignment of production with actual market needs. These challenges halted growth and created financial stress. In 2021, the company approached Research Nester Private Ltd to execute a supply-demand integration strategy combining advanced market analytics, targeted production planning, and supplier optimization. This approach stabilized operations, enhanced market positioning, and granted consistent profitability.
An overview:
- In 2019, a small-scale U.S. mining firm rolled out into the production of ceramic matrix composites, a high-strength, lightweight material highly used in high-performance applications. Despite the technology’s promise, the company relied mostly on historical market data and competitor trends, missing important real-time market triggers.
- The business soon faced multiple issues, including unstable raw material sourcing, fluctuating prices for ceramic fibers and matrices, and inadequate forecasting of client demand patterns. These issues not only hindered growth but also eroded profitability.
- By March 2021, post repetitive failed tries to expand its production and sales strategies internally, the company’s leadership decided to opt for expert intervention. They appointed RNPL to craft an effective and sustainable supply-demand equilibrium plan.
- RNPL’s experts created a thorough approach, focusing on identifying the market forces impacting demand, diversifying raw material supply sources, optimizing production schedules, and enhancing product-market fit.
The Story
Founded in 2011 as a niche mining venture, the company quickly established itself in the domestic minerals market. In early 2019, looking forward to strong growth in advanced materials, it diversified into ceramic matrix composites, expecting significant returns from aerospace, defense, and automotive demand. However, entering this specialized market proved far more complex than anticipated.
The first major hurdle was raw material quality and cost stability. High-grade silicon carbide fibers, carbon matrices, and other reinforcement materials were sourced from a small group of suppliers. Price fluctuations of up to 25% in a single quarter made budgeting unpredictable. Moreover, inconsistent quality from some vendors weakened the performance of the final CMC products, causing customer dissatisfaction.
Secondly, demand forecasting was misleading. The company’s market analysis was not able to identify sector-specific trends. For example, aerospace manufacturers searched for ultra-lightweight CMCs with thermal resistance, while automotive OEMs focused on cost-effective composites for high production. The company overproduced niche products with low short-term demand while underproducing fast-moving products. This mismatch led to excess inventory, combining capital and missing revenue opportunities.
Thirdly, supply chain disturbances deteriorated, worsening challenges in workflow. A shortage of supplier diversification left the company exposed to disruptions, from transportation delays to international trade policy changes. When a top supplier in Asia suffered export restrictions in late 2020, production schedules were delayed for months.
By the end of 2020, the company’s year-on-year sales had decreased by half, from 30% in the year 2019 to 15% in 2020. Financial pressures rose as storage costs for unsold inventory increased and market confidence changed. In early 2021, the leadership felt the urgent need for external expertise to stabilize operations and regain growth. This led to their partnership with Research Nester Private Ltd.
Our Solution:
RNPL’s team began by performing a thorough market and operational audit, showcasing the company’s existing supply-demand ecosystem. This analysis revealed a lack of actionable, real-time market insights and a production plan that repeatedly failed to align with true demand patterns. To address these gaps, the following strategic framework was developed:
- External Environment Assessment: A detailed study was carried out on macroeconomic influences, competitor pricing models, technological shifts in CMC manufacturing, and the needs of key end-user sectors. Focus areas were aerospace, defense, automotive, and energy to identify the most profitable opportunities.
- Demand Segmentation and Targeting: Sector-specific demand triggers were identified, such as the link between aerospace demand and new aircraft orders or defense spending, and the correlation between automotive demand and electric vehicle production. This allowed the company to prioritize production for the most promising markets.
- Raw Material Sourcing Diversification: RNPL suggested expanding the supplier base over three continents to ease geopolitical and logistical risks. Supplier performance metrics were introduced to assure quality consistency and delivery reliability.
- Inventory Management Enhancement: Advanced analytics were taken over to monitor turnover rates, forecast potential shortages, and adjust output in line with real-time sales and procurement trends.
- Product Quality Refinement: Partnership between the company’s engineering team and RNPL’s materials experts resulted in optimized product specifications tailored to customer needs, improving cost-effectiveness and performance.
- Scalability Roadmap: Flexible production planning was initiated, allowing quick shifts in output levels based on market shifts. This helped grasp short-term opportunities without creating overcapacity risks.
- Innovation Development: Suggestions were made to explore emerging CMC applications in renewable energy turbines and hypersonic vehicle components, creating a long-term growth horizon.
These planned measures not only addressed the urgent supply-demand challenges but also established a robust, resilient operational framework capable of supporting sustained and
Results
Before RNPL’s strategic assistance, the company’s growth graph was diminishing, with ROI under pressure due to mismatched inventory and fluctuating raw material costs. By realigning supply and demand strategies, several tangible results were achieved:
- Stabilized Supply Chain: By adding four new global suppliers and implementing stringent quality audits, material delivery reliability got better by 28%, and average raw material cost volatility fell from 25% to under 10%.
- Improved Demand Forecasting: Segment-focused market analysis increased forecasting accuracy by 35%, cutting surplus stock levels by 40%.
- Revenue Recovery: Annual growth rose from 15% in 2020 to 20% by the end of 2021, and further accelerated to 45% in 2022 as production better matched market requirements.
- Enhanced Market Standing: Three long-term supply agreements were signed with leading aerospace and automotive manufacturers, ensuring a steady stream of orders.
- Higher Profit Margins: Gross margins rose by 12 percentage points, supported by reduced waste, improved price positioning, and lower procurement expenses.
By early 2023, the company had moved from reacting to market changes to actively shaping its growth strategy through its market intelligence tools. This allowed it to predict and respond to industry developments with more accuracy. RNPL’s thorough plan not only restored profitability but also built operational resilience, positioning the business in a strong position to sustain its role as a preferred supplier of advanced CMCs across diverse sectors.
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