Disciplined growth
Cahill has been impressed by Bramadesams success.
We believed in (the company), but he went well beyond what we thought was possible, Cahill said.
The companys sales in 2008 were less than $8 million.
This year, the Butler factory will contribute $40 million to the companys global total of about $54 million, Bramadesam said.
The manufacturing CEO has been disciplined about pursuing parts contracts for only those models which are destined for the longest production runs without redesign, Cahill said. Bramadesams strategy keeps Autoline from having to retool its operation annually as carmakers alter their orders.
He gets the best use of his space that way, Cahill said. Hes very focused. Theres a reason why he does everything.
Increased globalization means that Autoline has to seize every cost-saving opportunity, Lanning said.
Youre no longer just competing with the jack maker in Michigan and Illinois. Now, youre competing with the jack maker in China, India, Mexico and South Africa, he said.
U.S. manufacturers cant match overseas operation on labor costs because workers here are paid considerably more, Lanning said.
Autoline employs 182, including 47 temporary assembly line workers, on three shifts, he said. The company employed 41 on one shift just six years ago.
Most of the employees are Tier 1 and have 20 or more years of seniority. Starting wage for Tier 1 is $13.84 an hour. Tier 2 starting wage is $11.04 an hour, Lanning said.
Management and Local 735 in July signed a new, three-year contract in which all workers received pay raises, a national spokesman for the United Electrical Workers said last summer.
Numerous local unions have ratified contracts that create a two-tier wage scale, which calls for workers hired after a certain date to earn less for doing the same jobs as previously hired employees.
The Massachusetts Institute of Technology has calculated Indianas living wage rates for various family configurations, factoring in costs for housing, food, medical care, transportation and other necessities.
An adult needs to earn $8.44 an hour to make a living wage if he is supporting only himself. A full-time worker needs to earn $17.40 an hour to support one adult and one child with a living wage. And an employee must make at least $13.50 an hour to support two adults.
American companies largely have to steer clear of wages and cut other costs from the process, Lanning said.
Company officials realized it would be more efficient to manufacture some parts the factory previously outsourced. And it made more sense to outsource production of some items outside the staffs areas of expertise.
Officials, for example, invested in four 600-ton presses and three 300-ton presses that stamp rolls of flat steel into individual parts.
Autoline also invested in a truck to pick up parts from suppliers, creating better flow of products and better cash flow by not paying for parts until theyre needed. That move alone has saved the company about $50,000 a year, Lanning said.
Savings have also come from decreasing utility costs. By investing in energy-efficient, motion-activated overhead lights in the factory, Autoline received a $57,000 rebate and saves $60,000 a year in electricity costs.
Lanning hopes the cumulative changes will position Autoline well in an annual evaluation of best-managed factories by IndustryWeek magazine.
The Cleveland-based monthly publication included Kautex Textrons Avilla plant on its 2003 Top 10 list from among more than 200 nominees from the U.S., Canada and Mexico. Lanning and Bramadesam both worked there at the time.
The executives hope theyve recreated that pinnacle of manufacturing success in Butler.
Source Article from http://www.journalgazette.net/article/20131229/BIZ/312299973
