The questions this year focused around how companies survived the recession, what they did to prepare for the upswing, and when they see things coming back around.
1. What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
2. What steps are you taking to prepare for the eventual economic upswing and increased demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
3. What did you with your time during the slowed product demand?
4. When do you see your industry's full recovery, and what trends or instances have suggested and supported your prediction?
New Eagle
www.neweagle.net
Richard C. Swortzel, Founder and Business Development
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
In order to maintain and grow cash flow, we have narrowed the focus of our offering to our MotoHawk control products and engineering. We have delayed some product development, but focused on improving our operations and engineering while focusing on improving customer support.
What steps are you taking to prepare for the eventual economic upswing and increased demand?
We have had slow growth in the past year, which has really been a blessing. It has given us a chance to develop infrastructure and our people to prepare for the growth that is coming. We have also been able to improve our cash and credit lines to fund future growth.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
As a relatively new business, we have spent time with customers and improving our infrastructure. For research and development, we have a number of initiatives with partners and customers to bring on next generation products for current and adjacent markets.
When do you see your industry's full recovery, and what trends or instances have suggested and supported your prediction?
We have seen improvements this year, and are looking forward to a better 2011.
Bergstrom Inc.
Bill Gordon, National Director of Aftermarket Sales and Global Marketing
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
At Bergstrom, we actively sought new and increased business opportunities with current customers and came out with new products to increase sales in a sluggish market. Also, we trimmed our workforce and did more with less.
What steps are you taking to prepare for the eventual economic upswing and increased demand?
We are currently seeing a much-improved demand. Now our issue is to get the supply chain filled up again. All levels of distribution are working on diminished inventory. Electronic parts are now subject to much longer lead times. Our purchasing team is working on expediting parts.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
We continued on R&D and also focused on new products to spur sales in a down market. This also positioned us favorably for the turnaround.
When do you see your industry's full recovery, and what trends or instances have suggested and supported your prediction?
Depending on the sector of our industry, we are seeing a nice rebound now. However, in other sectors it may take a year or more.
Shell Lubricants
Craig Schneider - General Manager, North America, Business to Business Marketing
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
As a global technology company, much of what Shell Lubricants does is based upon technology advances that enable us to provide different markets with our best products from around the world. In North America, we strengthened our heavy-duty diesel engine oil portfolio in order to provide our customers with additional products to meet their needs.
As diesel engine technology changes, Shell Lubricants continues to develop innovative engine oils that are designed to both meet the challenges of today and the future. In 2009, we consolidated our heavy-duty diesel engine oils under the Shell Rotella® brand, the leading brand of heavy-duty engine oil in the United States. The Shell Rotella Energized Protection™ product portfolio is led by three premium heavy-duty engine oils that are part of a tiered, easy-to-understand ladder of protection.
Shell Rotella T6 engine oil uses select low-viscosity synthetic base oils to further energize the oil’s protective capability and promote fuel-economy performance with no compromise in durability. Shell Rotella T6 delivers 34% better wear performance on average compared to the previous API CI-4 PLUS 5W-40 formulation. Additionally, the oil offers customers fuel economy savings of up to 1.5%, as demonstrated in 2009 on-the-road field testing in medium-duty trucks.[1]
Shell Rotella T5 Synthetic Blend engine oil is designed to provide extended-drain capability, enhanced engine cleanliness and excellent wear protection. Shell Rotella T5 10W-30 demonstrated fuel-economy savings of up to 1.6% in 2009 on-the-road field testing in medium-duty trucks.[2] These fuel-economy savings can help lower operation and maintenance costs.
Shell Lubricants is one of the first companies to offer synthetic-blend SAE 10W-30 and SAE 10W-40 viscosity grade products that meet some of the most stringent heavy-duty engine oil specifications globally, such as API CJ-4, ACEA E9 and Volvo VDS-4.
Shell Rotella T Triple Protection engine oil builds on the traditional strengths of wear protection and engine cleanliness in Shell Rotella T, but also protects diesel particulate filters (DPFs) against buildup of harmful deposits. It provides outstanding viscosity control with exceptional product durability. This technology has been proven in over 60 million miles of durability testing.
The Shell Rotella portfolio meets the requirements of numerous off-highway standards, including Caterpillar ECF-1A, ECF-2 and ECF-3; Deutz; MTU and Komatsu. The oils offer operators of fleets with mixed engines and both on- and off-highway equipment a single engine oil to meet their needs. (Check the individual products for specific applications.)
What steps are you taking to prepare for the eventual economic upswing and increased demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
Regardless of the economy, truck technology continues to advance, and Shell Lubricants is prepared to meet the needs of engine manufacturers and our customers. In addition to realigning our Shell Rotella engine oil lineup, we have introduced a revamped Shell Rotella heavy-duty antifreeze/coolant product portfolio that is led by Shell Rotella Ultra ELC™. The most advanced coolant in the portfolio, Shell Rotella Ultra ELC™ is an extended-life antifreeze/coolant for use in heavy-duty diesel, gasoline and natural gas-powered engines.
Designed to meet the more severe operating conditions of new emission-compliant engines, Shell Rotella Ultra ELC is an improved performance, next-generation, extended-life engine coolant. Shell Rotella Ultra ELC is the most technologically advanced coolant offered by the Shell Rotella brand.
Shell Rotella Ultra ELC is joined by Shell Rotella Fully Formulated and Shell Rotella ELC. Positioning a complete line of antifreeze/coolants under the Shell Rotella brand complements the Shell Rotella portfolio of heavy-duty engine oils, which also offer high-performance protection for today’s heavy-duty diesel engines.
The growth and development of the Shell Rotella antifreeze/coolant portfolio further strengthens the position of Shell Lubricants as a technology leader. We are able to provide our customers with a diverse line of Shell Rotella antifreeze/coolants and engine oil products that are designed to meet the challenges of today’s and future heavy-duty engines.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
In addition to strengthening the Shell Rotella line of products, Shell Lubricants continued to work with our customers by offering products and services designed to provide value to their operations. These efforts included recommending high-quality, efficient lubricants that may help reduce operating costs.
Buying low-quality lubricants may cost operators more in the end. Lubricant costs can be as little as 1 to 2% of total maintenance costs, but can have a disproportionate effect on machine availability and production. We focus on providing high-quality products that can help to reduce maintenance requirements and energy use.
Programs that support efficient business operations include Shell LubeAnalyst, our oil analysis program, and Shell LubeVideoCheck, a state-of-the-art fiber-optic tool that allows us to inspect key internal engine components, including difficult to access areas such as the cylinder head, valves, cylinder walls and pistons without dismantling the engine itself. With Shell LubeVideoCheck, all we need to do is remove the injector to be able to view these components. This service can help reduce costly engine tear-downs and the associated downtime.
When do you see your industry’s full recovery, and what trends or instances have suggested and supported your prediction? This of course is only meant to be a prediction and should focus on your specific technology industry, not the industries you provide goods or services to.
We have seen some positive signs, but we remain focused on helping our customers in all economic conditions. We continue to devote part of our research to developing innovative products that meet the changing needs in the off-highway segment of our business. This includes lubricant products that help save energy, help reduce emissions and meet the requirements of OEM manufacturers.
Shell Lubricants is poised to meet the changing off-highway needs with lower-viscosity synthetic engine oils that are being recommended by engine manufacturers with increasing frequency. In addition, Shell Rotella Ultra ELC is designed to be compatible with engines and cooling systems made with a large amount of aluminum components.
In the future, we expect to see continued growth for synthetic engine oils and opportunities for innovative products that meet off-highway needs, particularly as Tier 4 engines come into the market. Shell Lubricants will build upon the experience gained developing our CJ-4 engine oils in the U.S. and our global technology leadership will enable us to help our customers adapt to the changing business environment. We will be focused on helping our customers grow with the collective strengths of our technology, marketing, sales and distribution capabilities.
[1] For 5W-40 viscosity grade only, highway cycles, compared to Shell Rotella® Triple Protection® 15W-40.
[2] For 10W-30 viscosity-grade-only, highway cycles, compared to Shell Rotella® Triple Protection® 15W-40.
TriMark
Speaker TBA
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
We determined early on in the downturn that we would take a very proactive approach in our marketing efforts, nationally and internationally. Budgets were increased to support an electronic strategy (e-newsletters, etc.), new product announcements, increased trade show particpation and website upgrades. One result of this proactive approach was that TriMark saw an increase in inquiries from companies with whom they had not done business in the past. Anecdotally, it was learned that these companies saw TriMark as being in a much more stable financial condition than companies with whom they were currently doing business.
Also, TriMark’s business has always been about solving customer challenges and this philosophy has allowed us to continue support for our customers even as we saw volumes decreasing at the height of the downturn.
What steps are you taking to prepare for the eventual economic upswing and increased demand?
The increase in demand started in late 2009. What TriMark has experienced is a situation where the supply side and the demand side are still out of “sync” creating issues with scheduling and delivery. TriMark has taken extraordinary measures to make sure that all reasonable customer demands for delivery are met.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
At TriMark, much of the R&D activity and resources are directed to customer projects where very specific applications or issues needed to be addressed. Beyond the “customer focused” R&D activities, TriMark's R&D efforts have been and continue to be directed to product development for new markets such as mass transit and the military. Many of the products for these markets have applications in the core TriMark markets such as agriculture/construction, recreational vehicles and medium and heavy-duty trucks.
When do you see your industry's full recovery, and what trends or instances have suggested and supported your prediction?
From TriMark’s perspective, a “full recovery” is probably not the best description. Will companies return to prior levels of revenue? Probably, but in many cases the business models will look entirely different than they did pre-recession. TriMark has become much more of a “global” company than in the past with a much higher level cooperation and joint project development between all TriMark locations.
FASTER Inc.
Matt Mulder, Vice President
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
During a down economy, more than any other time, it is imperative to maintain a strong sales and marketing strategy. Not only is there potential market share to be gained during a recession, but also critical name recognition and mind share that will ultimately attribute to future growth. For FASTER Inc., it is important to have a clear and consistent marketing message promoting our company’s core value propositions. It is my opinion that a creative approach, through a mix of media and sales channels, is most effective in bringing bottom line revenue gains.
What steps are you taking to prepare for the eventual economic upswing and increased demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
The primary stance for FASTER Inc. in preparation of an economic upswing is continued investment in our people. People are the most critical resource to any organization. An emphasis on employee development has driven job satisfaction and overall morale. Cross training our management team during the down economy has helped us operate more efficiently during the recessionary rebound. Managing our working capital has been a challenge, but through proper planning and an upgraded global IT operating system, FASTER Inc. is positioned to meet and exceed our customers increasing demands. Furthermore, safety stock levels and system triggered reorder points have been adjusted to account for the drop-in orders and added expectations of key customers.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
Innovation, technology and research are the three fundamentals of FASTER. FASTER has long since had the reputation of being the technical leader in the hydraulic quick coupling market and, as a result, have been working on simultaneous engineered solutions with several key OEM customers during the current recessionary period. New product launches and technical enhancements will be released with key customer platform change announcements in the very near future.
When do you see your industry’s full recovery, and what trends or instances have suggested and supported your prediction?
For FASTER Inc, as with many technology based companies, analyzing industry trends is important to our overall strategic positioning. For our technology, there are three core markets – Agriculture & Construction Equipment Manufactures and Industrial. Generally speaking, the Ag market is fairly consistent as the primary driver is the global demand for food. Certainly bio-fuels and individual crop yields are considered, but the increasing global population and evolution of traditionally low cost countries are what really contribute to AG Equipment trends. Construction Equipment demand, at least relative to FASTER's core technology, is measured by housing and commercial facility starts. The world economy has suffered considerably over the last 2 years to the point that housing starts and construction permits were recently at the lowest point they have been since the mid 80’s. We are starting to see an uptick in this area, but are apprehensive to predict the future trend without realizing consistent growth for several months.
National Fluid Power Association, NFPA
www.nfpa.com
Eric Lanke, Executive Director
As with most industries, the fluid power industry saw a sharp decline in sales beginning in November 2008. Recovery began in early 2010. The industry has bounced back and is now only 10 – 15% below the 2008 high levels.
Throughout these ups and downs, NFPA has remained a strong and robust force for the fluid power industry—consistently offering programs, such as our Confidential Shipment Statistics Program, Economic Webcasts, and our Industry and Economic Outlook Conference, to help our members gain access to the information they need to successfully navigate these turbulent times.
And despite the recent downturn, overall the NFPA membership has continued to grow and diversify over the last several years—with suppliers, distributors and educators all represented in greater numbers, and with both suppliers and distributors actively engaged in NFPA’s leadership. This growing supply chain forum has helped our manufacturing members succeed and has allowed NFPA to leverage greater success for the fluid power industry.
One of our key areas of focus is helping the industry compete against alternative technologies. With the completion of our Technology Roadmap for the Fluid Power Industry, NFPA and its members now have a clear technology development agenda. This groundbreaking effort brought together a wide cross-section of fluid power manufacturers to identify the research areas and technology breakthroughs needed to survive and thrive in the years ahead. NFPA members are using the Roadmap as one of their exclusive benefits of membership to chart their own technology innovations, and the NFPA Education and Technology Foundation is using it to direct funding to the areas of most critical need.
Another key focus area is helping our members expand their operations globally. NFPA has long been involved with the International Organization for Standardization (ISO) and a number of international fluid power associations, and this global platform has provided opportunities for dialogue and positive action. A new emphasis for us moving forward will be to provide our members with a deeper analysis of international economies and customer markets, as well as tools for more effective global business management. Our upcoming Annual Conference in February 2011 has been themed around these issues and will provide our members with additional resources and information.
With the recovery expected to be sluggish for the next few years, NFPA is well positioned to serve the needs of the fluid power industry by continuing to offer programs such as these. Our market data and forecast services, our webcasts and conferences, and our technology development plans and investments will help our members take better advantage of business opportunities here at home and in faster growing export markets.
Pedro Roquet, S.A.
www.pedro-roquet.com
Richard Hall-Hall, Commercial Director
What proactive measures did you (and are you continuing to) employ to drive revenue during the recession?
We've doubled our export sales staff, increased substantially our number of overseas OEM customers and appointed a major distributor for our control valves in Norh America (Berendsen Fluid Power).
What steps are you taking to prepare for the eventual economic upswing and increased demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
We've installed additional robots in our pump and cylinder factories and a new automated sectional valve machining and honing line.
We heard that many companies focused on things like research and development and testing during the recession. What did you do with the slow down?
Last year we reached the end of a four-year project to optimize cylinder designs. We can now give quite accurate predictions of life for different parts of a cylinder design – enabling decisions as to where it is possible to reduce material thickness, etc.
When do you see your industry's full recovery, and what trends or instances have suggested and supported your prediction? This of course is only meant to be a prediction and should focus on your specific technology industry, not the industries you provide goods or services to.
We predict a full recovery of the mobile hydraulics industry in Europe during 2011. The main geographical markets (Germany, UK and France) have already recovered substantially, Holland, Scandinavia and Italy show signs of recovery. Spai, Portugal, Greece and Ireland are predicted to remain extremely weak for at least two more years.
Sudbury Area Mining Supply and Service Assoc.
Dick Destefano, Executive Director
A comprehensive survey of Northern Ontario's mining supply and service companies supports shows the sector is alive and well and is a significant wealth creator for the Canadian province.
The Sudbury Area Mining Supply and Service Assoc. (SAMSSA) joined forces with several partners to examine the importance of the mining supply and service sector, and especially its claim that Northern Ontario's mining support cluster is one of the most concentrated corridors in the world. The study's objective was to assess growth opportunities and outline a plan to realize them.
The partners included the Ministry of Northern Development Mines and Forestry (MNDMF), Ontario North Economic Development Corp (ONEDC) and FedNor (Industry Canada). Primary information was developed by Doyletech Corp., Ottawa, ON, Canada, through interviews with 150 companies and three focus groups.
The preliminary results supported SAMSSA's belief that the value of this economic sector in Northern Ontario has been underestimated. The study found that the total value of the mining supply and services sector's output is $5.6 billion, by some 500 companies employing about 23,000 people in Northern Ontario. At peak, the mining supply and service sector provides approximately $1.38 billion in annual salaries, excluding benefits. Even during the recession, most companies were operating at 75 % of their capacity.
Based on recent reports, direct mining and exploration jobs in Northern Ontario employ approximately 10,000 – as far as employment goes, the mining supply and service sector is twice the size.
Phase one of the study has been released and further discussions will continue to evolve as sections of the 142-page report are reviewed and analyzed with clients and partners. The participants and the partners are working to find the most-long term solutions for maintaining and growing this important sector in Northern Ontario.
This study reinforces the belief by SAMSSA and others that the mining supply and service sector in Northern Ontario needs to be recognized and supported by all levels of the Canadian government, especially as we move forward with new mining activities in the north. The mining supply and service sector is a key ingredient in creating employable skills for the future.
Adaconn+Inserta
www.inserta.com
David Albrecht, Jr., General Manger
What proactive measures did you employ to drive revenue during the recession?
We have been working with our customers to develop specific products for their applications to complement our standard product offerings. We are always working to be solution providers, and to be the preferred source for our customers to call with a unique requirement.
What steps are you taking to prepare for an increase in demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
We have been developing new dedicated production machinery and processes to meet increased demand, to continue to improve our product quality, and to decrease our production costs. We have reworked existing equipment with the same goals in mind. We are working to vertically integrate our material stream to minimize lead times, and assure availability of product.
We have heard that many companies focused on research and development and testing during the recession. What did you do during the slow down?
We have continued to develop and release new and unique products, and make refinements to existing products.
When do you see your industry's full recovery?
We are concerned that the significant levels of public and private debt may delay meaningful industrial recovery. Although we are positioning ourselves to respond to significant growth when recovery does come, these same efforts will allow us to maintain competitiveness and profitability, and allow us to continue to develop new products, should recovery be delayed further.
Sincerely
Atlas Copco Construction Equipment
Alan Kurus, Vice President of Sales
What proactive measures did you employ to drive revenue during the recession?
Provide customers with equipment financing programs. Hold price increases for the past year. Moved sales support staff out into customer locations to conduct sales and product training
What steps are you taking to prepare for an increase in demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
We have seen a big increase in demand over the last eight months. To accommodate the increase we have worked with our suppliers to increase our supply chain. Although this did not happen as quick as we would have liked, we continue to work with them to improve on our delivery times
We have heard that many companies focused on research and development and testing during the recession. What did you do during the slow down?
Research and development is an ongoing process within Atlas Copco. The recession did not affect our R&D
Grote Industries
Dominic Grote, President and Chief Operating Officer
What proactive measures did you employ to drive revenue during the recession?
As a 110-year-old family-owned business, we’ve seen our share of recessionary periods as well as the Great Depression. Each market downturn presented its own unique set of circumstances, but there is one guiding principle we adhere to at Grote – we turn up our entrepreneurial intensity.
The most recent economic challenges emboldened us to take calculated risks in a number of areas. In many cases, the added pressure to perform accelerated our ability to successfully meet the inevitable new challenges associated with each new endeavor.
One of the first decisions we made was to get closer to our customers. Our executive team and sales professionals made it a top priority to personally get in front of key customers fast, to understand how we could best support them as the marketplace dynamics began to change.
As a byproduct of our customer visits, we created The Trilliant Technology Tour; a mobile trade show that has allowed us to get our advanced LED WhiteLight technology up close and personal with our customers and our customers’ customers. The tour has traveled across the country to visit OEMs, fleets and distributors.
With renewed effort leveraging pre-recession groundwork, we were also able to secure significant military contracts with our advanced LED WhiteLight forward and interior lighting. Anyone watching coverage of the Stryker brigades leaving Iraq this August couldn’t miss the powerful Trilliant LED WhiteLight lamps many of them used to safely light their way.
The recession here in the U.S. also motivated us to increase our efforts to expand Grote’s international reach. We’ve continued to garner business with high-profile OEMs in Europe and our activities in China have been very encouraging, as well.
What steps are you taking to prepare for an increase in demand? Or, if you have already seen a significant boom in volume, what steps did you take to meet this demand?
We have seen demand rise dramatically and we’ve been using the last 18 months to institute lean principles throughout the organization. The steps we’ve taken are already allowing us to produce greater volumes within our standard lead times and our customers have noticed our responsiveness.
Because we got closer to our customers early on in the recession, we were already in a good position to understand what key performance indicators they found most valuable. We have responded to their specific needs accordingly and now we have made this voice of the customer protocol a part of our standard operating procedure and more important – our culture.
We have heard that many companies focused on research and development and testing during the recession. What did you do during the slow down?
Grote is focused on using its insights; innovation and intelligent engineering, to create high-performance lighting solutions that ultimately help end-users remain more profitable by optimizing their vehicle and workforce productivity.
Any mechanized vehicle that has humans controlling it, working in it, on it, or around it, needs appropriate, reliable lighting that meets legal, safety and functional requirements. OEMs and distributors alike are looking for thoughtful, intelligent lighting solutions that bring value to the end-user.
Over the last 18 months Grote has launched some innovative and revolutionary lighting products, including LightForm, the world’s first LED lighting film and the largest and most diverse family of LED WhiteLight work lamps around.
Not only have we been developing relevant and dynamic new products during the recession, but we’ve also significantly refined our production process. As the business environment strengthens, we will be able to respond with products that help the vehicle lighting industry and the company move ahead.
IMTS 2010 Sets Stage for Strong Comeback in Manufacturing
Results Exceed Show Management, Exhibitor Expectations
Strong results at IMTS – The International Manufacturing Technology Show 2010 may signal a strong comeback in manufacturing. Total registration for the six-day event, which ran from Sept. 13-18 at McCormick Place in Chicago, was 82,411. Attendees saw 1,728 companies exhibiting in 1,180 booths.
“The show was lively and exhibitors expressed satisfaction with the quantity and quality of attendees," says Peter Eelman, vice president, exhibitions and communications, IMTS. "Manufacturing professionals were searching for confirmation that manufacturing in the United States is not dying or dead and, in fact, found that it is robust, poised for growth, and clearly understand that investing in the latest technology is the key to being competitive.”
“Sold” signs on machines could be seen throughout the show. Clearfield, UT-based ATK Aerospace Systems invested in two automated fiber placement systems which will be used to produce wings and nacelles for the Lockheed Martin F-35 Lightning II Joint Strike Fighter, a full-scale example of which was on display.
“This show had a remarkable display of new and emerging technologies that will be the catalyst for the revitalization of manufacturing. Customers came with very specific objectives and were looking for solutions to make them more productive,” says Daniel Janka, president of MAG and chairman of The Association For Manufacturing Technology (AMT), which owns and manages the event. “I have heard from many of our exhibitors and visitors that they are leaving IMTS 2010 more optimistic than when they arrived.
An IMTS first-time exhibitor, Huntersville, NC-based Micro Waterjet came to IMTS to showcase its new technology. Executive Vice President Walter Siegenthaler said, “IMTS is the place we chose to introduce a waterjet cutting technology with such a high accuracy level that no one in the industry can compete with us. We created a buzz about the Microwaterjet machine, are going home with a large number of strong leads and orders pending."
“The inspiration theme for this year was conceived during some of the darkest days the manufacturing technology industry has ever gone through,” said Eelman. “As we hoped, IMTS was a source of inspiration for both exhibitors and visitors.”
IMTS 2012 will run Sept. 10-15.
