Multiple Baskets

My college dictionary defines "diversify" as "give variety to." Because that definition's not too exciting, I'll say that another one I have from the Civil War era defines the word as "not putting all the eggs in one basket." Sadly, that book's at home so I can't check for sure. That definition is easier to see: When the chickens are laying and I'm pressed for time, putting a day's production into one container and lighting out for the house is a good idea — until I trip and the eggs take flight. Even more colorful was what Sudbury, Ontario, Canada Mayor John Rodriguez said about diversification: "We either innovate, or we die."

Two established underground mining equipment specialists recently introduced mobile equipment for non-mining customers. Based in Collingwood, Ontario, MacLean Engineering & Marketing Co. operates a sales, service and distribution facility in Sudbury. The same is true for Miller Technology Inc., whose factory is an hour east of Sudbury in North Bay.

The mining business for both companies is strong and growing. MacLean, founded in 1973 by Don MacLean, has reportedly seen sales grow 40-50% per year. New deliveries of its core mining vehicles are six months out. Miller Technology has added thousands of square feet to its factory to supply its worldwide mining customers — a long ways from the garage in which Ron Miller started building underground mining trucks in 1980.

Innovating in good times

Mayor Rodriquez was talking to customers and city officials at MacLean Engineering's Sudbury location a few months ago during the introduction of the MV (municipal vehicle), MacLean's first offering from its Diversified Products Div. "This is exactly what I have been talking about," says Rodriquez. "This is an example of a company that started in the mining industry and has innovated and come up with new equipment. This is what we have to do with our community. We live in a mining town at the whim of ore prices. When we diversify we have other things going for us if mining is down. Sudbury is mining and we are proud of it. But we still need to innovate in other industries."

Whether a region or a company, it's easy to believe there's no time to plan for bad times when things are great. But it's when business is strong that the money and personnel likely exists to make a strategic move. These are busy times for Miller and MacLean. "When a customer said we should get into the municipal market, Don MacLean said we will look into this," says Mike Denomme, vice president, Diversified Products. Two years ago the company started working on what would become the MV. "Don knew we needed to build other rigs for different industries to offset any ups and downs in mining. We conducted market analysis and internally looked at our core strengths and this was a perfect fit." For a long time, the MacLean bolter was the core product. The line expanded with new tools for underground mining — most recently utility vehicles and scissor trucks.

MacLean's agile MV is designed to work with a wide variety of attachments to maintain urban areas. It's sized to travel down sidewalks and is articulated for maneuverability. Heavy-duty axles provide four-wheel drive and feature internal wet disk brakes, bringing the 127 hp Caterpillar-engined MV to a safe stop (the 6,305 lb. machine can move quickly). The machine's frame and cab are built by MacLean, and the MV is assembled in a just-in-time production cell at MacLean's new factory in Owen Sound, Ontario.

"The municipal vehicle market is mature, so we did a lot of research to ensure we could come in with the right product to fill a niche," says Scott Johnston, product manager, Diversified Products. This is one of the areas where engineering drew on its experience with mining equipment. "Listening to the customer and delivering the tools they need are crucial to doing business."