The Danger of Relying on Just One or Two Big Clients
Many manufacturers believe that landing one or two major clients is the key to long-term success. If you’ve secured a big contract with a Tier 1 or Tier 2 company, it might feel like your business is set for years to come.
But what happens if that client suddenly pulls out?
Relying too heavily on one or two large customers is one of the biggest risks a manufacturing business can take. Without a steady pipeline of new leads and diversified revenue streams, your entire operation could be at risk overnight.
In this blog, we’ll break down:
Why relying on a few big clients is a major risk
How losing one contract can cripple your business
How to create a lead generation system that protects your company’s future
When a Big Client Disappears, So Does Your Business
Many manufacturers operate on a Tiered Supply Chain Model:
Tier 1 Suppliers work directly with OEMs (Original Equipment Manufacturers) like Caterpillar, Boeing, or Ford.
Tier 2 Suppliers supply parts or materials to Tier 1 companies.
Tier 3 Suppliers often produce raw materials or smaller components that feed into the larger supply chain.
Let’s say you own a CNC machining shop and your biggest client is Modine Manufacturing (Tier 2). They place 80% of your orders, and you’ve had a longstanding relationship with them.
Everything seems great—until Modine loses their contract with Caterpillar (Tier 1). Suddenly:
Modine cuts back orders.
You lose 80% of your revenue overnight.
Your business has no backup clients to replace that lost income.
Without a strong lead generation strategy, you’re now scrambling to survive.
3 Major Risks of Relying on Just a Few Clients
1. No Control Over Their Business Decisions
Even if your client loves working with you, they are still running their own business, which means:
They could switch to a cheaper supplier.
They could bring production in-house instead of outsourcing.
They could relocate manufacturing overseas to cut costs.
No matter how great your relationship is, their financial decisions are not in your control—which means your business needs a safety net.
2. You Lose Pricing Power
If one client makes up most of your revenue, they hold all the power in negotiations.
They can push for lower prices because they know you depend on them.
They can change payment terms that hurt your cash flow.
If you reject their demands, you risk losing them entirely.
Having a diverse client base gives you leverage—if one customer tries to squeeze your margins, you have other revenue sources to fall back on.
3. It Stops Business Growth
Many manufacturers get comfortable once they land a big client. But when all your resources go toward servicing just one or two companies, you stop marketing to new customers.
Then, when something goes wrong:
There’s no backup pipeline of leads.
You’re starting from scratch while competitors have been building their brand.
Your business shrinks instead of growing.
This is why ongoing marketing is crucial—it ensures that new clients are always coming in, even if a major contract disappears.
How to Protect Your Business: Build a Lead Generation System
The best way to reduce risk is to ensure that your website, SEO, and marketing efforts are always working for you. Here’s how:
1. Invest in SEO to Attract New Clients Online
Your website should act as a 24/7 lead generator—like having a trade show booth open year-round.
Optimize your site for keywords like “custom metal fabrication in Milwaukee” so buyers can find you.
Regularly publish blog content answering common manufacturing questions.
Ensure your site is fast, mobile-friendly, and conversion-optimized.
The goal? When buyers search online for your services, your business ranks first—not just your competitors.
2. Expand Your Customer Base Before You Need To
The best time to diversify your clients is before you lose a big one.
Build relationships with multiple Tier 1, Tier 2, and Tier 3 companies.
Attend industry events and reach out to potential customers proactively.
Test smaller orders with new clients so you have backup accounts in place.
Having 10 clients that make up 10% of your revenue each is far safer than having one client that makes up 80%.
3. Get Listed in Industry Directories Like GlobalSpec
Buyers often look for new suppliers in online directories. If you’re not listed, you’re missing out.
Add your company to GlobalSpec to increase visibility.
Keep your business profile, services, and contact details up to date.
Use directories as a secondary lead source beyond just Google search.
4. Nurture Past Clients & Leads with Email Marketing
Not every potential client is ready to buy today—but that doesn’t mean they won’t need you in the future.
Set up automated email campaigns to stay top-of-mind.
Send case studies and success stories showing how you’ve helped similar companies.
Follow up with past customers who haven’t placed an order in a while.
The more touchpoints you create, the more new business you’ll generate over time.
Final Thoughts: Never Rely on Just One or Two Big Clients
If one client makes up more than 50% of your revenue, your business is at serious risk if they disappear.
The solution?
Always be generating new leads—even when business is good.
Diversify your customer base so you never depend on one or two accounts.
Invest in SEO and marketing so buyers find you before they find your competitors.
You don’t have to lose a big client to realize you need a backup plan. Start building one now.
Email Lindsey to Talk Further
Want to make sure your website is bringing in leads and keeping your business safe from losing a major client? Email Lindsey today to discuss how Ausmer Marketing can help.