By Nick Lewis | Business Systems Coach for UK Engineering Companies
Most engineering business owners I work with started the same way: saying yes to everything. Fire alarms, mezzanine floors, electrical installations, HVAC maintenance—if it paid, they did it. And for the first few years, that approach worked. It got them off the ground, built their reputation, and kept the cash flowing.
But somewhere between £500k and £2m turnover, something breaks. The business that once felt manageable becomes a chaotic mess of competing priorities, inconsistent margins, and a team that can never quite get things right without the owner's constant involvement.
The problem isn't the team. It's not the market. It's the lack of focus.
SectionThe Hidden Cost of Being a Generalist
When you offer everything to everyone, you create invisible complexity that compounds over time. Consider what happens operationally when you're a generalist:
Your estimating process can't be systematised because every job is different. Your materials procurement is inefficient because you're buying small quantities of everything rather than bulk quantities of specific items. Your team needs broader skills, which means higher wages and longer training periods. Your marketing message is diluted because you can't speak directly to anyone's specific pain point.
The result? You work harder than specialists, charge less than specialists, and deliver inconsistent quality because you're spread too thin.
I recently worked with an engineering firm that was turning over £1.8m across six different service lines. Their net margin was 4.2%. After we helped them focus on just two core services—mezzanine floor installations and industrial shelving systems—their turnover dropped to £1.4m, but their net margin jumped to 14.7%. The owner went from working 65-hour weeks to 45-hour weeks, and for the first time in years, he took a proper holiday.
SectionThe Mezzanine Floor Example: A Case Study in Profitable Niching
Let me walk you through why mezzanine floors represent an ideal niche for many engineering businesses, and how the same principles apply to whatever specialism you might choose.
Mezzanine installations share several characteristics that make them attractive from a business systems perspective. First, they're high-value projects with typical contract values between £30,000 and £250,000, which means fewer jobs are needed to hit revenue targets. Second, the sales cycle is predictable—businesses need more space, they research options, they get quotes, they make decisions within a defined timeframe. Third, the installation process can be standardised because structural requirements follow consistent engineering principles.
When you specialise in mezzanines, your entire operation becomes more efficient. Your estimating team develops deep expertise in structural calculations, material costs, and installation timelines. Your procurement team builds relationships with specific steel suppliers and can negotiate volume discounts. Your installation crews develop muscle memory for the work, reducing errors and improving speed. Your marketing can speak directly to warehouse managers and operations directors who are struggling with space constraints.
SectionHow to Choose Your Engineering Niche
Not every service line makes a good niche. The ideal specialism has several key characteristics that you should evaluate before committing.
High barriers to entry protect your market position. Services requiring specialist certifications, significant equipment investment, or deep technical expertise are harder for competitors to copy. Fire suppression systems, for example, require specific accreditations that take years to obtain.
Recurring revenue potential provides stability. Niches with ongoing maintenance requirements, compliance obligations, or consumable elements create predictable income streams. Access equipment servicing, for instance, generates annual inspection revenue from every installation.
Clear buyer identification makes marketing efficient. When you can easily identify and reach your ideal customers, your cost per lead drops dramatically. Industrial landlords, logistics companies, and manufacturing facilities are all easy to target through LinkedIn, trade associations, and industry publications.
Healthy margins justify the focus. Some services are commoditised to the point where margins are razor-thin regardless of efficiency. Others command premium pricing because of complexity, urgency, or specialist knowledge. Emergency electrical work, for example, commands significantly higher rates than routine installations.
SectionThe Landing Page Strategy That Makes Niching Work
Once you've chosen your niche, the next step is creating dedicated marketing assets that speak directly to your target market. Generic websites that list every service you've ever offered don't convert well because they don't address specific problems.
A dedicated landing page for your niche should follow a proven structure. Start with a headline that names the specific problem your target customer faces. For mezzanine floors, this might be: "Running Out of Warehouse Space? Double Your Storage Capacity Without Moving Premises."
Follow with proof that you understand their situation—statistics about rising commercial property costs, quotes from operations directors about space constraints, images of cramped warehouses that look like their own.
Then present your solution with specific details that demonstrate expertise. Not "we install mezzanine floors" but "we've installed over 200 mezzanine floors across the Midlands, adding an average of 847 square metres of usable space per project."
Include case studies from their industry. A logistics company wants to see logistics case studies. A manufacturer wants to see manufacturing case studies. Generic testimonials don't build the same trust as specific, relevant examples.
Finally, make the next step clear and low-commitment. "Book a free site survey" works better than "contact us" because it tells them exactly what will happen and removes the risk of a pushy sales call.
SectionDriving Qualified Traffic to Your Niche Landing Pages
A brilliant landing page is worthless without traffic. The advantage of niching is that your traffic acquisition becomes dramatically more efficient because you can target precisely.
LinkedIn advertising allows you to target by job title, company size, and industry. For mezzanine floors, you might target Operations Directors and Warehouse Managers at companies with 50-500 employees in logistics, manufacturing, and distribution. That's a defined audience you can reach cost-effectively.
Google Ads becomes more affordable when you're bidding on specific long-tail keywords rather than generic terms. "Mezzanine floor installation Birmingham" has far less competition than "engineering services."
Trade publications and industry associations offer advertising and sponsorship opportunities that put you directly in front of qualified buyers. The Chartered Institute of Logistics and Transport, for example, reaches exactly the people who need warehouse space solutions.
SectionThe Objection Every Business Owner Raises
"But Nick, if I turn down work outside my niche, I'll lose revenue."
This fear is understandable but misplaced. Yes, you'll turn down some jobs initially. But the jobs you keep will be more profitable, easier to deliver, and more likely to generate referrals. Your reputation as a specialist will attract better clients who are willing to pay premium prices for expertise.
More importantly, the time and energy you save by not chasing every opportunity can be reinvested in marketing, systems development, and team training. These investments compound over time, creating a business that grows sustainably rather than one that lurches from crisis to crisis.
SectionYour Next Step
If you're running an engineering business between £500k and £5m turnover and you're feeling the strain of trying to be everything to everyone, it might be time to consider a more focused approach.
I help engineering business owners identify their most profitable niche, build systems that make delivery consistent, and create marketing strategies that attract qualified leads. The result is a business that generates better margins, requires less of your time, and positions you for sustainable growth.
Book a free discovery call to discuss whether niching could work for your business.
Nick Lewis is a business systems coach specialising in UK engineering companies. He helps owners of £500k-£5m businesses implement the systems they need to scale profitably and work less.