For solutions in the linear motion industry, vertically integration can be essential in elevating profits, controlling distribution and eliminating the hassle from third-party companies. Vertical integration can be defined as a company controlling all the stages of production (such as raw materials, transportation and marketing) and merging them into one unified supply chain.

Vertical integration can be a highly effective business tactic that mitigates what economists refer to at the “Hold-Up Problem.” The Hold-Up Problem typically occurs when two companies invest in each other, only to develop disagreements over contracts and delay the pace of production.

So, how does Nook incorporate vertical integration into its manufacturing plan? First, it utilizes leading-edge manufacturing and continuous improvement make Nook Industries’ products precise, cost-effective solutions. Second, it features the largest thread roller in the world, which diameters up to 14 inches. Third, Nook provides on-site die design and manufacturing. Lastly, Nook features on-site heat treating for precision and durability.

All of these methods allow Nook to deliver high-quality mechanical, electrical and controls solutions under one roof.