Industry Today, Volume 17, Issue 10 Filling the "Stem Gap"

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PUBLISHER’S LETTER

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PUBLISHER’S LETTER

M

anufacturers across the U.S. are in the midst of a widespread campaign focused on engaging the youth demographic and facilitating a significant growth in their overall interest towards a career in manufacturing. Because the fact of the matter is that over the next decade, a large portion of the nation’s manufacturing force is set to retire, leaving gaping voids to be filled amongst many industries critical to the United States’ economic success. In fact, according to the Bureau of Labor Statistics, over the next 10 years, the U.S. will either need to develop or import more than 2 million skilled production and manufacturing workers.

However, in this month’s Focus article, we take a look at a Fortune 500 company, Corning Incorporated, and see how big business is proactively tackling the looming workforce issue in the United States. With over 10,000 employees worldwide—and many of such based in North America—the specialty glass, ceramics, and optical physics manufacturer stands to be greatly impacted by a skill deficit and is aggressively taking steps, both internally and externally, in the face of such.

“A company’s most precious capital is not its stock price, physical assets, or products. It is a skilled and dedicated workforce, which, sadly, is slipping away for many industries,” says Christine M. Pambianchi, senior vice president, Human Resources for Corning.

Tackling the skills issue benefits all parties, she says, because the deficit serves

as both a problem for manufacturers, and a lost opportunity for workers. “Hundreds of thousands of U.S. workers settle for lowpaying, low-skill jobs because they leave the educational system without the knowledge and training to take manufacturing jobs that often pay professional-level starting wages.”

Specifically regarding the educational system, she notes the importance and current ignorance of earning STEM-based degrees and their role in the United States’ future economic success. To add to this, nearly all of the top 20 fastest growing occupations will require some background in basic science, technology, engineering, and math.

To actively address this need, Corning is working at all levels—primary and secondary schools, community colleges, and four-year universities—by engaging local institutions near its facilities in New York to spread a greater awareness amongst the youth about what modern manufacturing is and what a career in it could mean on an individual level.

Corning’s progressive approach is significant for domestic manufacturing in general, because like in most aspects of business, the larger conglomerates typically set the tone in how things are and how they should be within their respective industries. Should other manufacturers take note of the company’s efforts and impending success in such, and respond in a similar manner relative to their own resources, one may find that the workforce issue that many are calling to take effect in the near future, will soon become a thing of the distant past.

INDUSTRY TODAY 3

CONTENTS 06 FOCUS: CORNING

28 FEATURE: DECENTRALIZED MANUFACTURING

40 FEATURE: KODAK-MAKING PRINT SUSTAINABLE

18 FEATURE: IMCP CHICAGO

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Industry Today is published bi-monthly by Positive Publications LLC, 65 Madison Avenue, Suite 510, Morristown, NJ 07960. Subscription price is $55 per year. Single copies may be purchased at $15 each plus shipping. Email, fax or phone the above address for details. POSTMASTER: Send address changes to Industry Today, 65 Madison Avenue, Suite 510, Morristown, NJ 07960. Copyright © Industry Today 2014. All rights reserved. No part of this publication may be reproduced in any form or for any purpose without prior written consent from the publisher and payment of the agreed fee. ISSN # 1521-8058

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VOLUME 17 • ISSUE 10

PROFILE • PENTAFLEX

PENTAFLEX • PROFILE

80 TAYLOR WINFIELD WELDING INNOVATION WITH SUCCESS

Pentaflex serves as one of North America’s emerging leaders in precision stamping for the heavy truck industry. Dave Arndt, President of Pentaflex, talks about the history of the company that led them to where they are today, the factors behind a 25 percent increase in both sales and employment over the last year, and the philosophy behind the company’s greater presence and commitment to the future of not only their company, but manufacturing in general.

Steve Engelhardt reports.

50 INDUSTRY TODAY

INDUSTRY TODAY 51

70 PENTAFLEX STAMP OF APPROVAL

114 CALÇADA

BUILDING THE BEST

PROFILE • CALAADA SA

CALAADA SA • PROFILE

Look to real estate in Rio de Janeiro. Among the leading construction companies in one of the world’s most exotic cities, Calçada SA has conquered the market through quality. Reuben Ford reports on building a reliable and respected brand. ith extensive experience in the property market, project management and construction, Calçada Empreendimentos Imobiliários SA operates in diverse segments of the industry. Its buildings

are distinguished by meticulous attention to detail and design adapted to the Carioca (Rio de Janeiro) lifestyle.

The company started small but has always thought big and as it celebrates its 30th

98 COVENANT TRANSPORT DRIVING AHEAD

114 INDUSTRY TODAY

60 GRUPO TARRAF

Building to Greater Heights

90 ISE METAL

Shifting Metal

50 GRUPO ELIZABETH

On the Tiles

106 MICROBIRD

Foot on the Pedal

INDUSTRY TODAY 115

View Our

VIDEOS

INDUSTRY TODAY 5

FOCUS CORNING

Filling the

“STEM Gap”

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FEATURE CORNING

America’s skilled workforce is at risk. The needs of our nation’s economy are outpacing the skill sets and education of our youth, creating a “gap” in our workforce.

T

he trend holds true across all industries, but it is particularly threatening for manufacturing companies.

The main problem is that we are not equipping enough young people with sufficient skills in science, technology, engineering and math (STEM). As senior vice president of human resources for a Fortune 500 manufacturing company, I experience this problem first-hand.

Modern manufacturing is, by nature, very high tech. Facilities are automated and rely heavily on computerized systems to operate equipment, implement processes, and manage infrastructure. Unfortunately, the surge in technological advances was not coupled with an effort to educate youth, or enable them with skills to execute these complex tasks.

This skill deficit isn’t just a problem for manufacturers; it’s also a lost opportunity for workers.

Hundreds of thousands of U.S. workers settle for low-paying, low-skill jobs because they leave the educational system without the knowledge and training to take manufacturing jobs that often pay professional-level starting wages.

We’re sitting on a tremendous opportunity to INDUSTRY TODAY 7

FOCUS CORNING

support STEM careers in our country and bolster our talent pipeline. We need to rise to the challenge.

Federal and state governments are recognizing the STEM education gap and are starting to take action. In New York, where Corning is headquartered, the state initiated a program that incentivizes degrees in STEM-related fields.

It’s an important first step, and we need more of this type of government action. But we can’t rely solely on the government to fix the STEM gap.

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Employers and corporations can proactively inspire youth by supporting programs that build a skilled, talented workforce.

If manufacturing and other industries engage quickly and comprehensively, the American workforce can stage a “STEM comeback.”

Why STEM? In the next decade, nearly all of the top 20 fastest growing occupations will require some background in basic science, technology, engineering and math. According to the Bureau of

FOCUS CORNING

Labor Statistics, in the next 10 years, the U.S. will either need to develop or import more than 2 million skilled production and manufacturing workers. Approximately half of these STEM-related jobs will be in manufacturing, health care, or construction.

At Corning, finding skilled workers for technical positions is a constant challenge. The majority of our materials and processing positions require STEM-related two- and four-year degrees. Salaried engineer positions - specifically those who work in glass, ceramics, controls, and

“Business can help solve the (STEM) image problem by engaging directly with students, parents and teachers in the community.”

INDUSTRY TODAY 9

FOCUS CORNING

process - are also a challenge to fill. Essentially, the more STEM-intensive the role is, the more difficult it is to fill the position.

But Corning is not alone. The number of U.S. companies that reported difficulty in filling positions due to lack of skills grew from 14 percent to 40 percent in the past three years.

Creating more four-year graduates or people with advanced degrees is helpful, but not the panacea. According to the Brookings Institution, approximately half of all STEM jobs do not require a four-year degree.

In fact, we can narrow much of the “STEM 10 INDUSTRY TODAY

gap” by engaging students, families and communities in ways that don’t require an expensive (and in some cases, unaffordable) four-year degree.

Here are a few of our initiatives at Corning.

Meeting immediate needs through community colleges One of the best investments a manufacturer can make is to collaborate with local community colleges. Corning has worked for years with several local community colleges to incorporate manufacturing, machine and mechanical

FEATURE CORNING

Extending reach to primary and secondary schools While community colleges often provide immediate value in filling the STEM gap, manufacturers also need to work with secondary and even primary schools to inspire our future workforce.

technologies into the curriculum. We also take these efforts beyond the classroom so students can receive first-hand experience applying their knowledge. Students spend at least one day a week (even more on spring break!) getting real-time, real-world experience operating Corning equipment and interpreting data. We call it our Technology Pipeline Program.

This two-fold approach has shown tangible results over a short period of time. More than 25 percent of technicians we have hired since 2010 in Corning, N.Y., came from our program at Corning Community College.

INDUSTRY TODAY 11

FOCUS CORNING

“A company’s most precious capital is not its stock price, physical assets, or products. It is a skilled and enthusiastic workforce, which, sadly, is slipping away for many industries.”

Improving STEM literacy in students provides a sustainable benefit for the entire community while creating a lifetime of opportunity for both learners and employers. We can achieve this in three steps.

The first is to offer supplemental school funding. Corning seeks opportunities to provide direct and targeted assistance for schools in the communities where we work. We provide most of our funding through The Corning Foundation, which has awarded millions of dollars in grants for local schools to fund STEM education programs.

The second step is to partner with schools to develop curriculum that engages students with STEM-related content beyond the standard offerings. At Corning, we have worked with award-winning curriculum specialists at Young Minds Inspired to create an educational program about the role glass could play in technologies of the future.

Third, and just as important, we encourage 12 INDUSTRY TODAY

FEATURE CORNING

INDUSTRY TODAY 13

FOCUS CORNING

Staging the STEM comeback Corning works in local classrooms to ensure America has a thriving manufacturing industry for years to come: • Corning’s Technology Pipeline Program invites students from local community colleges to get real world experience through operating their equipment and interpreting data.

• Corning develops STEM curriculum for primary and secondary schools to engage young students about the role glass could play in technologies of the future.

• Some of Corning’s most skilled employees serve as guest instructors at local schools.

• Young girls are receiving mentorship from Corning female engineers and participating in hands-on activities in math and science.

• The Clinton Global Initiative has recognized Corning’s efforts to elevate the desirability of manufacturing jobs in Corning, N.Y. • Local youths aged 15-21 learn about careers in manufacturing through workshops, mentorships, and hands-on experiences at Corning facilities.

• Corning sponsors awards programs to support STEM educators who go above and beyond. our most skilled employees to be guest instructors at local schools.

Working locally to change attitudes While creating educational partnerships is important, we also need to do a better job inspiring students and workers to pursue STEM-related careers. Here, we have fallen woefully short.

Recent research shows that only 44 percent of 12th graders were proficient in math. The story does not end there. Of those who were proficient in math, more than half (61 percent) said they 14 INDUSTRY TODAY

were not interested in pursuing a STEM-related career.

Why are young people not embracing STEM-related jobs? It can’t be money.

According to the U.S. Department of Commerce, STEM-workers earn approximately 26 percent more than non-STEM counterparts. In fact, the top 10 paying majors for 2013 were all STEM-based, with engineering majors having one of the highest median incomes at $92,000.

The fact is, STEM-related careers have an image problem. Skilled trade workers in

FEATURE CORNING

“It’s important to recognize we’re sitting on a tremendous opportunity to support STEM careers in our country and bolster our talent pipeline.

We need to rise to the challenge.” manufacturing are in short supply, and I believe it because these jobs are often portrayed as not being “worthy” of pursuit by young people.

Business can help solve the image problem by engaging directly with students in the community through mentorships.

A few years ago, Corning launched a program

at Holly Shelter Middle School in Wilmington, N.C. that was designed to engage young girls in math and science. A number of our female engineers went to classrooms and participated in hands-on activities with students. We’re now expanding that program to other schools around our North Carolina facility.

INDUSTRY TODAY 15

FOCUS CORNING

Christine M. Pambianchi Christine M. Pambianchi was appointed to senior vice president, Human Resources in December 2010. In this role, Pambianchi is responsible for leading Corning’s global human resource function. Christy has led the HR function since January 2008 when she was named vice president, Human Resources.

Pambianchi was named division vice president, Business Human Resources in July 2004.

Prior to that appointment, Pambianchi was director, Business Human Resources, where she supported many of Corning’s Operating Divisions.

Pambianchi started with Corning in 2000 as division human resource manager, Corning Optical Fiber, and went on to be director, Human Resources, Corning Optical Communications before moving into her recent assignments. Prior to working at Corning Incorporated, Pambianchi worked at PepsiCo, Incorporated for ten years. While at PepsiCo, Pambianchi held human resource manager positions in plant and regional distribution locations and worked as the organization capability manager for the field sales organizations. Her last position at PepsiCo was director, Human Resources for Information Technology.

Pambianchi holds a bachelor’s degree from Cornell University’s School of Industrial and Labor Relations. Pambianchi serves as president of the board of directors at the Alternative School for Math and Science; is a member of the board of trustees of the Corning Foundation; and a member of the advisory board of the Cornell Center for Advanced Human Resource Studies (CAHRS).

We are also developing a pilot program in the Corning community, recognized by the Clinton Global Initiative, designed to elevate the desirability of manufacturing jobs. Through a series of workshops with youths age 15-21, Corning will provide an overview of the benefits of jobs in manufacturing, take students on 16 INDUSTRY TODAY

an actual plant tour, and expose the participants to testimonials from manufacturing employees.

In addition, the program will provide students with an overview of how jobs in manufacturing can be challenging, can offer on-the-job continued professional growth and at the same time provide strong earnings potential.

FEATURE CORNING

“Industry, working together with government and local communities to fund, educate and inspire the next generation of STEM-proficient students, can close the ‘STEM gap.’”

After the pilot, we will share our program with other employers so they can help us spread the word about the benefits of jobs in manufacturing and at the same time, commit to mentoring, training, and eventually hiring, local youth across the country.

Since instructors, teachers, and professors play a critical role in filling the STEM gap, Corning sponsors awards programs that recognize excellence of STEM educators who go above and beyond to engage and motivate students.

A company’s most precious capital is not its

stock price, physical assets, or products. It is a skilled and dedicated workforce, which, sadly, is slipping away for many industries.

But we have shown that it is possible for business to turn the tide for the future of our workforce.

Industry, working together with government and local communities to fund, educate, and inspire the next generation of STEM-proficient workers, can close the “STEM gap” and keep American manufacturing competitive for the long term.

INDUSTRY TODAY 17

FEATURE IMCP

IMCP: CHICAGO’S METAL-MINDED FUTURE As part of Industry Today’s ongoing, extensive coverage of the Investing in Manufacturing Communities Partnership (IMCP) program, we take a look at yet another one of the twelve designated communities to see how they’re using federal recognition and funding to enhance and improve manufacturing in their surrounding region.

M

etal manufacturing in the Chicago metro area is, quite significant. With over 3,700 firms producing a combined annual revenue of nearly $30 billion and employing over 100,000 individuals, it’s not only a major manufacturing hub in the Midwest, but a key component in what fuels the region’s overall economic engine.

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So when the federal government launched its ‘Investing in Manufacturing Communities Partnership’ (IMCP) program last fall, an initiative designed to bolster the foundation and future of some of the nation’s most impactful regional manufacturing clusters, it came as no surprise when the Chicago Metro Metal Consortium (CMMC) was subsequently designated as one of such in June. Representing an unprecedented collaboration of more than 60 public and private partners within the seven counties of northeastern Illinois, the alliance has since taken an aggressive and comprehensive approach towards ensuring that the region, often

FEATURE IMCP

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FEATURE IMCP

considered as the “crossroads” of the United States, can continue to serve and excel in meeting the evolving demands of domestic and global industry.

Over 70 communities applied for IMCP designation, but only 12 were selected. Led by the Cook County Bureau of Economic Development, the consortium submitted an extensive proposal designed to tackle current challenges being faced by the surrounding community, as well as how the region would address widespread issues facing U.S. manufacturing in the future, like workforce development and its role in the face of an increasingly higher amount of companies planning to reshore their businesses within North America.

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“When applying for the IMCP designation, applicants had to come from areas with deep-rooted manufacturing presences,” says Michael Jasso, director of planning and development for Cook County, adding, “Because, through the IMCP and other federal programs, the government wanted to identify existing clusters and strengthen them as a way of fortifying the United States’ future economic success.”

The Chicago Metro Area holds a population of over 10 million, with Cook County itself responsible for 5.1 million of such individuals. “It’s the second most populous county in the United States after Los Angeles County but historically, Cook County had been largely focused primarily on public safety and

FEATURE IMCP

health,” says Jasso, adding, “However, under the leadership of our President Toni Preckwinkle, we realized there was an expanded role the

county could play in driving regional growth, and so she convened with the city of Chicago and the collar counties that surround Cook County and discussed with everyone how they could collaborate to drive a strategy focused on greatly improving our manufacturing presence and competitiveness, an opportunity afforded by the IMCP and one that led to the creation of the CMMC.” The resulting success of the interactions produced an approach with two overarching goals in mind. “The CMMC decided that the most impactful approach would be to target the two largest segments of the metal manufacturing cluster—metalworking and production technology and heavy machinery—and INDUSTRY TODAY 21

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“Under the umbrella of the CMMC, we hope to further innovation, cultivate an interested and qualified labor pool, and grow exports at rates higher than the national average for the metal cluster.”

-Toni Preckwinkle, President, Cook County Board prioritize efforts on growing a skilled workforce, promoting exports, and innovating for the future.”

Tackling exports in particular is important, because while the city of Chicago ranks as the 3rd largest economic enclave in the country, the intensity that they export is far below what a region of their size could be engaging in. “Chicago Metro is the only place in the country where six of the seven Class I rail lines come together, so the huge amount of container traffic really provides a limitless potential of business coming in and out,” says Irene Sherr, director of

legislative affairs for Cook County.

Outside of a massive influx of regional and international traffic, Sherr says that another one of the key factors of manufacturing in the Chicago Metro Area is the presence of a large number of small business owners. “Out of the 3,700 metal firms we have in the region, over half of them have less then ten employees,” she says, continuing, “and we knew that it was our job to help these smaller companies increase their visibility and depth of connection to some of the larger firms, who are always looking for new suppliers.”

About the IMCP Program The Investing in Manufacturing Communities Partnership (IMCP) program is an initiative designed to revolutionize the way federal agencies leverage economic development funds. It encourages communities to develop comprehensive economic development strategies that will strengthen their competitive edge for attracting global manufacturer and supply chain investments. Through IMCP, the federal government is rewarding best practices – coordinating federal aid to support communities’ strong development plans and synchronizing grant programs across multiple departments and agencies. Non-designated communities nationwide can learn from the best practices employed by these designated communities to strengthen American manufacturing. For more information, visit http://www.eda.gov/challenges/imcp/.

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“The CMMC decided that the most impactful approach would be to target the two largest segments of the metal manufacturing cluster—metalworking and production technology and heavy machinery—and prioritize efforts on growing a skilled workforce, promoting exports, and innovating for the future.”

-Michael Jasso, Director, Planning & Development 24 INDUSTRY TODAY

FEATURE IMCP

As a response, the CMMC has orchestrated a number of interactions between the large and small business metal manufacturers, providing arenas in multiple instances where executives from the two sides could come together and discuss strategies, tips, and potential partnerships. Most recently, the CMMC has organized a series of ‘matchmaking’ events to be held throughout Northern Illinois, to serve as “speed-dating” opportunities for suppliers and end users. “Participant firms from across the region will be given structured opportunities to

network with potential customers and suppliers by sharing information, samples, and more,” says Sherr.

In addition to working to increase the web of partnerships between its regional manufacturers, the consortium will also be potentially organizing a number of similar events where students at the high school level would be able to interact with manufacturers and learn more about what a career in such would mean. “Workforce development, as we noted in our proposal, is one of our key focuses, and unfortunately the reality today is that a lot of these students at the high school and lower levels have a misguided view of what a manufacturing career entails and can provide,” says Jasso, adding, “so by bringing these students into an interactive arena with these manufacturers, they are able to get the facts and realize the wide number of benefits it can provide.”

In fact, he says that the International Manufacturing Technology Show, held in Chicago in September, served as one of the opportunities for these interactions to occur. “McHenry County, a partner of the CMMC, bussed over 1,400 high school students to the show, with the transportation costs largely covered by the county’s manufacturers,” Jasso, says, adding, “The students were able to be taken through the convention and speak with a number of different manufacturers, which went a long way in changing many of their perceptions about manufacturing.”

Jasso says that as manufacturing continues to make a resurgence in Chicago—and the INDUSTRY TODAY 25

FEATURE IMCP

rest of the country by extension—the need to have a skilled workforce in place is an absolute necessity. “You have a large population in the Baby Boomers getting ready to retire soon, and when you add their numbers to the expected influx of companies opting to reshore, there is a significant void that needs to be filled, and the consortium has made this one of its chief Pictured: Chicago rail yard, Bedford Park, IL. Image courtesy of Bill Morrow, Photographer; First image (opening page) courtesy of Darris Lee Harris, Photographer.

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focuses going forward.”

And yet, he and Sherr are extremely confident in their region’s ability to do so. “In addition to the IMCP designation, Chicago received a Digital Manufacturing and Design Innovation Institute (DMDII) designation from the federal government, which brought $70 million in funds to strengthen our manufacturing pillars in the region,” he says, adding, “ I think between these two opportunities, we have the cooperation and support, both federally and locally, to ensure that Chicago and its surrounding coun-

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About the Cook County Bureau of Economic Development The mission of the Cook County Bureau of Economic Development is to foster economic development, workforce development, and community development within Cook County through the strategic leveraging of resources and efficient professional management.

ties will continue to grow and foster its already impressive manufacturing presence, and elevate it even more in the coming years and decades.”

The Chicago Metro Area is just one of twelve IMCP-designated communities. To learn more about the overall program, as well as what some

of the other communities are doing in their respective regions to improve their present and future manufacturing presences, click on the following links. (IMCP Summit, New York Finger Lakes Region, the Tennessee Valley, Washington Puget Sound).

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CENTRALIZED VS. DECENTRALIZED

Manufacturing

Companies with centralized manufacturing have a single facility to produce and distribute their products or a central factory with multiple distribution points in their supply chain. A decentralized manufacturing company has multiple facilities that cover large areas, allowing products to be manufactured and distributed close to customers.

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FEATURE

I

n the highly competitive global market of today, the need to provide highly customized products is causing companies to rethink their manufacturing strategies. With the emergence of new manufacturing technology, companies of all sizes can adapt in order to succeed and the decision for some to migrate from centralized manufacturing to decentral-

ized plants is critical to that success.

Regardless of how companies grow and adapt their supply chain, cloud-based ERP systems are there to facilitate the transition.

Centralized Manufacturing A single factory can dramatically reduce per unit production costs by using the same INDUSTRY TODAY 29

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equipment to produce different products, allowing the company to achieve economies of scale. Research from the nonprofit organization APQC shows that centralized organizations have manufacturing costs that are about 3 percent lower than decentralized companies.

For an organization with $5 billion in annual revenue, this is a difference of $150 million.

APQC’s research also shows that raw material inventory turn rates and production schedule

efficiency is higher in companies with centralized manufacturing.

Centralized manufacturing can also enable better forecasting, more local jobs, consistent production and more effective use of limited resources. The cost of materials may also be lower for centralized manufacturing sites that are located near the source of those materials.

In spite of these advantages, centralized manufacturing tends to be inflexible because of the

Pictured: Gas turbine by Siemens with a capacity of 375 megawatts which equals that of 13 jumbo jet engines.

Images courtesy of Siemens www.siemens.com/press.

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FEATURE

cost of customization. For example if a product has to change, the entire system must be retooled and this is extremely costly and time consuming. The cost of labor can also be a disadvantage, especially if a company maintains its central plant in a region or country where wages are rising.

Decentralized Manufacturing Companies with decentralized manufacturing enjoy many benefits that often elude companies with centralized plants. These advantages include flexibility, being closer to their cus-

tomers, better and timelier information, more motivated managers and employees, and the ability to take advantage of low labor costs in different areas.

When a company is physically close to its customers, it can be more flexible in meeting increasingly diverse demands. Greater flexibility means greater customization. A company with decentralized manufacturing can manufacture only those products that are in demand in a specific region or country. Flexibility has other rewards as well. For example, communicating locally is more efficient than having to go through multiple channels at a single corporate office. Decisions can be made more quickly.

Decentralized manufacturing not only improves the efficiency of decision-making but also empowers employees, letting them improve problem areas immediately without approval from a centralized organization. According to a study by Harvard University, decentralized manufacturing actually increases motivation and creativity by giving lower tier managers more responsibilities. When a manager is given a sense of ownership over an operation, efficiency increases among employees in both production and support positions.

Often a company decentralizes in response to increased demand or expanding markets. For example, American Nutrition, a major pet food company, started with a single plant in Ogden, Utah, but as the pet food market expanded, the company also expanded to four manufacturing plants in Phoenix, Ariz.; Woodland, Wash.; and Hazleton Township, Penn.

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Decentralized manufacturing has disadvantages as well. Multiple sites require a larger investment of capital to set up, the per-unit costs are higher than mass-produced products made in a central plant, and maintaining organization-wide consistency in products and processes is a challenge. For companies that manufacture highly specialized products and distribute them locally, decentralized manufacturing may not be the best solution.

Trends to Decentralize Manufacturing While some companies with decentralized manufacturing are reshoring overseas plants back to more centralized U.S.-based locations in response to increased costs, for example in China, the arguments in favor of decentralized manufacturing outweigh the arguments against.

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Current manufacturing trends show that more and more companies are choosing a decentralized manufacturing strategy. As global markets continue to expand, the demand for customized products has also expanded and new technologies are emerging that make it easier for companies to build customization into their manufacturing processes, decreasing the costs of flexibility but not dramatically increasing the per-unit cost.

One emerging technology is additive manufacturing, popularly known as 3D printing.

3D printing allows products and components Pictured: 3D printing – a Siemens researcher analyzes a CAD model for his next printed object; right: Siemens SGT5-800H gas turbine weighs over 440 tons.

FEATURE

ABOUT THE AUTHOR: Pat Garrehy is the Founder, President, and CEO for Rootstock Software®, a Cloud ERP company, and has an extensive background as a software architect and engineer. With over 30 years of management, sales and technical experience, Garrehy brings a unique blend of analytical focus and business savvy to the table.

Garrehy is also the founder and former CEO of Relevant Business Systems, a client-server ERP software provider with an exclusive focus on discrete manufacturing companies. Relevant, which was sold in 2006, remains the most profitable division of the acquirer to date.

As a University of California at Berkeley graduate, he holds a BS degree in business and mathematics as well as an MBA in finance from the University of Southern California.

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to be made from a digital model and is rapidly being applied by a range of industries, including defense, aerospace, automotive, medical and metals manufacturing.

3D printing enables products to be made in batches as small as one. Setup time and switching costs are low and while per-unit manufacturing costs are not as low as a mass manufactured product, 3D printing brings great flexibility and customizability to the manufacturing process. For low-demand products, production costs are often lower than the total costs associated with traditional supply chains.

Large manufacturers are planning to make significant investments in 3D printing.

General Electric is one of those companies.

Siemens is also investing heavily in the technology, planning to use 3D printers to produce spare parts for gas turbine engines. Investment by such large firms will lead to more advanced 3D printers that can work with a broader range of materials.

In short, the flexibility and customization that 3D printing brings to manufacturing will make it easy for companies to maintain smaller, decentralized factories in different parts of the world.

Pictured: Siemens combined cycle power plant, a new generation of plant producing power with even more efficiency and therefore more environmentally friendly; right: GE’s Global Research Center is developing techniques to fabricate lightweight structures using metal additive manufacturing processes.

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FEATURE

Other advances in automation also are helping to lower supply chain costs. For example, Kiva Systems makes automated warehouse solutions that let mobile robots move products. These autonomous but coordinated robots help in distribution and because it is easy to start small and add more units later, they are ideal for small to medium sized warehouses. Amazon recently acquired Kiva as part of its planned rollout of more regional centers for same day delivery.

As technology continues to advance, customization gets cheaper and the arguments against decentralizing manufacturing get weaker. But even those companies for whom centralized manufacturing makes the most sense face the

demand for customization technological lower supply chain costs. Whatever changes a company makes to their manufacturing and distribution processes, whether it’s to centralize or decentralize, enterprise resource planning (ERP) software can help.

Cloud ERP Solutions Cloud ERP systems integrate multiple department functions into a single software platform and help companies by providing visibility into every function of their operation. The modular nature of cloud ERP lets firms implement only those modules that meet their requirements, allowing for seamless integration of company

INDUSTRY TODAY 35

FEATURE

36 INDUSTRY TODAY

FEATURE

processes and workflows, improved tracking and security and lower costs. For those Cloud ERP systems that have multi plant and multi site capabilities, they are more able to support such an environment.

As companies weigh the advantages and disadvantages of centralized versus decentralized, moving ERP for manufacturing to the cloud becomes a critical factor. The cloud provides central data storage, the sharing of dataprocessing tasks and internet-based access to services and resources.

Large companies who have been maintaining on-premise ERP systems are discovering that these systems can no longer support the need to become more flexible. Moving their manufacturing ERP systems to the cloud is the perfect solution for them. Small- and medium-sized companies can especially benefit from cloud

ERP solutions. For companies with centralized manufacturing but far-flung distribution networks, cloud ERP for distribution is a perfect fit.

Cloud ERP provides significant benefits for both centralized and decentralized manufacturing strategies. Upfront costs are lower and the total cost of operation, especially for Pictured: An Amazon employee picking products with Kiva.

INDUSTRY TODAY 37

FEATURE

Pictured: Kiva Systems mobile robots in automated warehouses help to lower supply chain costs.

small- and medium-sized companies, is lower.

Unlike expensive and inflexible on-premise ERP software, cloud ERP is accessible from any device with a web browser and Internet connection, giving such systems great mobility. This is a great advantage to decentralized processes. Furthermore, cloud ERP and MRP (Manufacturing Resource Planning) systems offer faster updates and bug fixes.

Cloud ERP represents and integrates every function in the manufacturing process, including materials requirements planning (MRP),

38 INDUSTRY TODAY

sales order management, cost accounting, engineering, purchase order and inventory software, shop floor software and supply chain management software. Companies that manufacture specialized products can move to cloud ERP for everything from material requirements planning, inventory control and purchasing to accounting, quality and production control.

Cloud ERP lets companies focus on delivering the customized products and services now in demand and not worry about the limitations of in-house IT and lets companies scale their

FEATURE

businesses quickly.

Rootstock Software helps manufacturers transition their manufacturing and distribution processes to more nimble, customization-focused operations by providing configurable, scalable and adaptable cloud ERP solutions. Rootstock systems give companies the flexibility they need to accommodate any workflow, implement social collaboration, and especially add new capabilities and quickly address changing requirements. The company provides state-of-the-art manufacturing, distribution and supply chain apps that integrate “out of the box” with native crm and accounting apps. Rootstock has drag

and drop scheduling and capacity planning as well as centralized and decentralized capabilities for sales, procurement, and bills of material and engineering change control.

By providing manufacturers and distributors with the control and flexibility they need, Rootstock empowers companies to meet the challenges of rapidly changing markets while raising the total performance of their entire supply chain. So whether a company is looking to adapt their centralized manufacturing to greater customization or is considering decentralizing their manufacturing to meet that need, Rootstock Software has the right solution for both.

INDUSTRY TODAY 39

FEATURE KODAK: MAKING PRINT SUSTAINABLE

40 INDUSTRY TODAY

FEATURE KODAK: MAKING PRINT SUSTAINABLE

Turning a New Leaf for Industrial Sustainability Industrial firms have moved beyond thinking about sustainability as a pleasant, heartwarming side project.

Sustainability initiatives improve company performance either by reducing resource use and waste emission (lowering costs) or by providing value to customers who are increasingly selecting companies based on credible social and environmental performance.

I

n today’s connected world, with information at our fingertips and a megaphone as close as the send button on our mobile device, it is much easier for customers, communities, and activists to keep tabs on industrial environmental performance and to broadcast their perceptions. By the same token, companies that are transparent about their sustainabil-

ity initiatives and accomplishments can benefit from these same forces. Companies that embrace sustainable production or green manufacturing are reducing costs and promoting positive brand recognition among conscientious consumers.

Innovation can come from bold strategic initiatives, such as some aluminum fabricators INDUSTRY TODAY 41

FEATURE KODAK: MAKING PRINT SUSTAINABLE

driving to use more recycled material in their operations, or from technology such as Boeing’s ecoDemonstator designed to test new advances in aviation performance. Academic centers such as the University of Massachusetts Lowell’s Center for Sustainable Production and Rochester Institute of Technology’s Center for Excellence in Sustainable Manufacturing continue to enable new limits for industrial environmental responsibility. Kodak is no different in the goals we’re trying to attain today.

Kodak’s key businesses include digital inkjet printing solutions, micro 3D printing for ap42 INDUSTRY TODAY

plications such as touch screens, printing for the packaging industry and a full range of offset plates and equipment for the lithographic printing industry. As one of the oldest industrial sectors, the print industry has not always enjoyed a reputation for environmental responsibility. Volatile and odorous materials, waste paper, and more recently, chemically intensive processes were some of the challenges facing the industry. However, cutting edge developments Pictured: Kodak’s Prinergy Workflow and Sonora Plates have helped the print industry become much more sustainable.

FEATURE KODAK: MAKING PRINT SUSTAINABLE

in recent years have brought the industry into a much better position and are a testament to how the right technology and strategic direction enables operations across all industries to reduce their environmental footprint while promoting their own profitability, marketability and long term success.

Extending Sustainability to Customer Solutions Kodak has long sought to improve the efficiency and sustainability of both its own and customer operations. Recycling programs began as

early as the 1920s by repurposing the silver used to make film, and evolved through our single use cameras in the 1990s to our refurbishment of key components for digital printing presses today. We began public environmental commitments in the 1990s and have gone through several generations of environmental and sustainability goals, including the reduction of energy use and greenhouse gas emissions by 58 percent from 2002 to 2013. This progress was enabled by strategic commitments, transparency in reporting, and technology like our energy management system at our Eastman Business INDUSTRY TODAY 43

FEATURE KODAK: MAKING PRINT SUSTAINABLE

Park facility that gives real time energy use data for buildings to quickly determine the effects of experimental improvements.

Like many companies, Kodak has extended its operational focus to its base of suppliers, joining with industry partners in the Electronics Industry Citizenship Coalition to establish standards of health, safety, environmental and social performance among its supply base. This work with suppliers mitigates risk from both supply chain disruption and brand damage and is an important component in our sustainability commitment.

44 INDUSTRY TODAY

This commitment only continues to grow as we focus on current key objectives: continuing to reduce our greenhouse gas emissions; cutting our already impressive occupational injury rate in half; engaging with our employees on sustainability issues; and most importantly, working with our customers and partners to act as stewards of sustainability in the $800 billion print industry. We do this by providing products that reduce the environmental footprint of our customers’ operations and by partnering with other companies up and down the print value chain to educate the public on how

FEATURE KODAK: MAKING PRINT SUSTAINABLE

print communications are part of a sustainable future.

The evolution of sustainability in the Print industry The printing industry began the movement towards sustainability with soy based inks and

Pictured: Process-free plates remove chemical and water waste from the production process.

INDUSTRY TODAY 45

FEATURE KODAK: MAKING PRINT SUSTAINABLE

recycled paper. As more and more end users asked for these products, they became an industry trend and the responsible use of paper has continued to progress with the advent of forest certification schemes. These certifications document best practices in sustainable forestry, and allow printers to be confident that the paper they are using was produced responsibly.

On the technology front, recent advances in software and printing plate technology have reduced the environmental impact for printers.

Workflow software, such as Kodak PRINERGY Workflow, automates the preparation and exe46 INDUSTRY TODAY

cution of print jobs. In busy print shops with high tech digital or conventional printers, multiple jobs must be run quickly with uncompromised quality. Workflow software eliminates errors and waste by reducing manual interventions, resulting in efficiency improvements on complex jobs of up to 50 percent.

The availability of process free plates such as Kodak SONORA Process Free Plates has enabled dramatic resource reductions at lithographic print shops. Conventional plates are imaged and then developed in a chemical development step, much as photographic film

FEATURE KODAK: MAKING PRINT SUSTAINABLE

used to be. Process free plates are imaged and then put directly on press, not requiring a development step. The elimination of this step results in cascading benefits to the printer. The elimination of the processing step results in savings from not running the processor (electricity, water, chemistry), efficiency from faster start up of print jobs, and improved quality due to lack of variability in the chemistry based processing step. There has been rapid uptake of process free technology in the market, exemplified by Kodak’s recent addition of its 1000th Sonora customer. The industry appetite for solutions

that help the environment, and therefore help their business is growing at an unprecedented pace, and is continuing to grow.

Li Yanqiu, General Manager of Beijing Shengtong Printing recently commented on this trend in China, saying “For us, green printing is a fundamental social responsibility. Sustainable practices secure the future of our business as well as the environment,” she said. “We are proud to be among the earliest adopters of Kodak SONORA Plates in China, proving that process-free plates – as part of a holistic green approach to commercial printing – can deliver INDUSTRY TODAY 47

FEATURE KODAK: MAKING PRINT SUSTAINABLE

Charles Ruffing Chuck Ruffing is the vice president of Health, Safety, Environment and Sustainability at Eastman Kodak Company, where he has worked for 23 years. He is a chemist by trade, with B.S. from St Joseph’s University and a Ph.D. from the University of Illinois. He has been leading Kodak’s sustainability efforts for the last 5 years, focusing on operational footprint reduction, workforce safety, and product development to help customers advance their sustainability programs. Chuck is a member of the Board of Directors for Two Sides NA and the Central and Western New York Chapter of The Nature Conservancy.

48 INDUSTRY TODAY

FEATURE KODAK: MAKING PRINT SUSTAINABLE

Cutting edge software solutions improve efficiency, reduce mistakes, and lower costs.

Our opportunity

both high quality and serious environmental benefits. We know that many other printers in the region are now making plans to follow our lead.”

Across industry segments, customers and other stakeholders are doubling down on their demands for quality products produced with minimal environmental impacts. Companies that address these demands are positioning themselves to possess a sustainable competitive advantage. Kodak has focused on improving the efficiency of operations, expanding that goal to supplier assessments, and most importantly, to providing solutions that improve customer performance. In our industry and beyond, others who have followed similar strategies have improved their social, environmental and economic performance throughout the supply chain. Although much remains to be done, this alignment of strategy bodes well for a profitable and sustainable future.

INDUSTRY TODAY 49

PROFILE • GRUPO ELIZABETH

ith highly technological infrastructure, Cerâmica Elizabeth based in the north-east of Brazil, sets itself aside from run-of-the-mill tile producers. The company makes more ceramics than any other in the region and is the national leader in porcelain tiles.

50 INDUSTRY TODAY

Investment in imported production equipment, training and techniques has made the Elizabeth brand synonymous with quality and innovation. The company displays clear enjoyment for the business, priding itself on meeting the ever-changing demands of interior design.

Two new factories will open at the end of

GRUPO ELIZABETH • PROFILE

Brazil’s biggest manufacturer of porcelain tiles announces plans to double revenue in the next two years. Reuben Ford analyzes an approach that aligns ambition, quality and customer satisfaction.

INDUSTRY TODAY 51

PROFILE • GRUPO ELIZABETH

COMPANY PROFILE Grupo Elizabeth • Products: Ceramic and porcelain tiles; • Location: João Pessoa, Paraíba state (four facilities including headquarters) Criciúma, Santa Catarina state (porcelain factory); • Staff: 1,900; • Capacity: 3,200,000 square meters of tiles a month; • Growth: 12 percent a year (planned 100 percent in the next two

years).

2014 and in 2015. The expansion is part of accelerated growth strategy that targets 100 percent in the coming two years.

“Cerâmica Elizabeth was born to face the

Elizabeth,

30 anos

embelezando os lares brasileiros, com produtos de alta qualidade.

T +55 11 4513 9844 | www.rawmaterial.com.br | raw@rawmaterial.com.br

52 INDUSTRY TODAY

GRUPO ELIZABETH • PROFILE

future. Planned investments and professional training schemes make the company highly competitive and self-sufficient in many aspects,” begins Commercial Manager, Juarez Júnior.

From Ceramic to Cement When it was founded in 1984, Cerâmica Elizabeth (Elizabeth Ceramics) had its sights set on making a mark on the industry. The first major step came in 1986: expansion of the company’s ceramics factory in the north-eastern city of João Pessoa. Three years later Cerâmica Santa Maria was launched, producing ceramic bathroom furniture known in the market as Louças Sanitários Cerâmica Elizabeth. Growth continued and in Pictured: Project with porcelain tiles: Porto Rico 62x62 and Petrus Noce 84 x 84.

2001 the group opened Porcelanato Elizabeth – the porcelain tile production company.

From 2004, twenty years after its launch, Cerâmica Elizabeth began consolidating its brand in South America, Eua, Argentina, Uruguai, Paraguai, Bdivia, Peru, Mocambique, Panamá, Trinidad e Tabago, Purto Rico, Chile and Belize . “The company gained ground primarily through competitive pricing, quality and product diversity with various colors and designs,” Juarez says.

In 2009 the Elizabeth Group defined its national presence by opening a facility in the south of Brazil. Elizabeth Sul, in Criciúma, Santa Catarina state specializes in polished porcelain tiles.

In 2011, the sale of Elizabeth Louças Sanitárias inspired a new project headed by the INDUSTRY TODAY 53

PROFILE • GRUPO ELIZABETH

Aço Nobre is a distributor of steel products, specializing in ferrous and non-ferrous metals.

We are committed to providing our customers with a reliable service and on-time delivery.

We are a proud supplier to Grupo Elizabeth.

Rua Bolivar, 219 - Recife/PE - Brazil 52120-010 www.aconobre.com.br 54 INDUSTRY TODAY

GRUPO ELIZABETH • PROFILE

“Our entrepreneurial spirit is insatiable.”

João Pessoa in Paraíba state, producing ceramics and porcelain and the porcelain factory in Criciúma (whose current extension work will be complete in 2015).

“Our entrepreneurial spirit is insatiable. In 2013 plans were formalized for the installation of a huge ceramics facility in Goianinha, Rio Grande do Norte state. With a production capacity of three million square meters a month, it will be the largest in the sector,” Juarez says.

The $175-million, state-of-the-art factory (Elizabeth RN) is scheduled to open in 2015.

Technology, 24 hours a Day founder and President of the Group José Nilson Crispim, Elizabeth Cimentos (cements). In December 2014 the new facility, which will be the largest in the Elizabeth Group, begins operation.

Elizabeth has four plants in Brazil: three in

With the highest production volume of porcelain tiles in Brazil, Elizabeth prides itself on the latest technological innovations.

The kilns function round the clock, every day Pictured: Aerial view of the factory.

INDUSTRY TODAY 55

PROFILE • GRUPO ELIZABETH

IN THE MIX Brazil’s market leader in porcelain and ceramic tiles owes its edge to quality, streamlined production and product mix, according to Commercial Manager, Juarez Júnior.

Grupo Elizabeth offers the widest range of tiles in the country – including porcelain and ceramic varieties and designs ideal for interiors and façades.

The company manufactures sizes, designs and finishes that are used all around the home and a growing number of commercial and industrial applications.

56 INDUSTRY TODAY

of the week. Cerâmica Elizabeth has come forward leaps and bounds from the hand-crafted tiles it produced back in 1984. “We have developed a means of producing high detail on a large scale, faster and with even better quality,” Juarez continues. The ‘means’ he refers to is revolutionary high-definition printing technology that reproduces patterns and designs on ceramic and porcelain.

“The HD technology is imported from Spain–we have more of these printing machines than any other company in Brazil,” Juarez says.

GRUPO ELIZABETH • PROFILE

INTERNAL DEMAND Despite a significant decline in economic growth and the increasing difficulty of exportation thanks to the fall in value of the Brazilian real, the national market offers opportunity for Elizabeth. Government housing and social incentive programs have resulted in a surge in demand that surpasses supply.

The research and development team at Elizabeth analyzes national and international market trends to identify trends and the technology is used to design and reproduce a wide variety of styles.

Juarez elaborates: “We send professionals to trade fairs worldwide – most recently in Italy and Spain – in search of inspiration and the very latest ideas and fashions. It is not just a question of first-rate technology, but also being the first to bring out new designs.” The European HD industrial printers successfully and

precisely reproduce cement, watermarks, wood grain, enamel, stone, granite and mosaic effects.

Pole Positioning Elizabeth combines technology and design with a superior knowledge of the market. According to Juarez, continued growth and success are based on careful positioning. “Ceramic tiles are more popular with the middle class and lower-income customer (known in Brazil as the nation’s C, D and E classes). Porcelain tiles are more expensive and form part of more exclusive INDUSTRY TODAY 57

PROFILE • GRUPO ELIZABETH

interior design projects.”

Despite directing product lines at specific markets, Elizabeth does not compromise on quality. The principal phases in tile manufacture are preparation of the raw materials, pressing, glazing firing, sorting and packaging. “There are two processes for raw material 58 INDUSTRY TODAY

preparation, or grinding: dry and wet. In Brazil dry grinding is more common; it produces a slightly inferior quality tile. Elizabeth is part of the 30 percent of producers who use wet processing Juarez explains.

Both ceramics and porcelain are of equal importance to the group. Revenue is generated

GRUPO ELIZABETH • PROFILE

GREEN LIGHT FOR THE ENVIRONMENT Grupo Elizabeth is focused on preservation of the environment. As an integral part of the various operations at the factories, sustainable procedures are paramount.

• 90 percent of water used in ceramic production is recycled; • Liquid residues are treated on-site; • Atmospheric pollution is regulated and controlled; • Raw material is recycled, when possible; • The plants use clean energy sources, such as natural gas; • Elizabeth runs green educational programs in the facilities and community; • The activities are based on three principles: products, planet and people. Every stage of the manufacturing process considers the environment.

almost in equal shares, although the volume of ceramic tiles made is higher owing to lower cost. Thanks to technology and visibility, porcelain tiles are arguably more associated with the Elizabeth brand image.

Elizabeth is a nationwide company. The choice of opening a factory in the south (Santa

Catarina) was a strategic decision, which considered the national market. Meeting market needs is clearly one of the company’s objectives. The new cement factory is a step Juarez describes as “a logical progression within the segment” and forming “part of our general context of products.”

Elizabeth has plenty of reason to celebrate as the company completes its 30th year. The two new facilities are projected to boost the group’s already above-market-average 12 percent annual growth to 100 percent over the next two years.

All eyes are on the market leader as its top technology and accelerated growth plans promise continued innovation in Brazil.

INDUSTRY TODAY 59

PROFILE • GRUPO TARRAF

60 INDUSTRY TODAY

GRUPO TARRAF • PROFILE

Brazil’s number one brand in building and construction project management reveals plans to double revenue in the next five years. Reuben Ford takes a closer look at a group that leads a competitive market with confidence. nvestment in Brazil is challenged by a history of economic ups and downs. This year is no exception with interest rates rising, the value of the Brazilian real falling against the dollar and previously booming industries, such as the property market experiencing a slump.

Despite the questionable state of the economy, the market leader in construction projects is growing against the tide. In the three weeks between the first and second round of the presidential elections, Grupo Tarraf sold 320 units in a recently completed apartment building.

The surprising success was one of many for Brazilian Grupo Tarraf that puts its name to several well-known buildings and residential complexes nationwide. The Group, which also includes car dealerships and investment companies, is widely recognized for its achievements in the construction industry and has ambitious plans for new projects and 90 percent growth in the next few years.

INDUSTRY TODAY 61

PROFILE • GRUPO TARRAF

COMPANY PROFILE The Tarraf Group • Location: São José do Rio Preto, São Paulo – Brazil; •

Companies: Building (residential and commercial), Construction Project Management, Retail (cars, motorcycles, appliances and accessories), Financial Services;

• Growth: 20 percent a year.

Pictured: Olavo Tarraf, Partner and Director of the Group; right: The facade of an innovative development “DUOJK”.

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“I don’t believe in the uniformity of our economy – history speaks otherwise. We have made staggering progress through calculated risk and have achieved great results,” affirms President of the Tarraf Group, Olavo Tarraf.

A Pedigree The history of the Tarraf Group dates back to

GRUPO TARRAF • PROFILE

the 1920s when Lebanese refugees fled to Brazil to escape war. “My grandparents arrived in Brazil ready to work – looking for real, credible work, which reflected in their behavior, culture and attitude. This is an ethic that we seek to emulate today,” Tarraf says.

Without substantial knowledge of the language, and little knowledge of Brazil, it was a tough start. It was the second generation that

managed to successfully build on their parents’ hard work. They invested in various industry sectors where they identified potential. By the time business was passed to the third generation, Olavo Tarraf’s generation, it was evident that growth and as eye for ethics and successful projects was in the family.

In the hands of the third generation, Grupo Tarraf underwent changes. Separations in 1991 INDUSTRY TODAY 63

PROFILE • GRUPO TARRAF

and again in 2004 finally left the leadership to Olavo Tarraf.

Beyond the automotive profits, Tarraf will also focus on real estate.“I am more enterprising, so there was a shift in focus to building and construction projects,” he says.

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The essence of the group remained firmly unchanged. The care and attention to detail and service shown throughout the family’s business continues to be an important part of the group. Tarraf confirms: “This way of working and growth are in our DNA. We have a

GRUPO TARRAF • PROFILE

transparent, pedigree background, which is what makes us an interesting partner.”

A Change in Management 2004 saw important changes in management at Grupo Tarraf, despite 60 years since its inauguration. “In the construction industry it is difficult to make a significant difference through technology – everyone has access to technology.

Our differential is management. Labor, training and application of control system at all stages of the project are important elements of our service. We work to strict organograms and never delay on the completion of a building or complex,” Tarraf explains.

Management and organization of building and construction projects from start to finish involves selecting the right team, technicians and equipment. Control is essential for Grupo Tarraf, which operates in São Paulo, southern Pictured: One of the first buildings in the city to have a panoramic elevator; above: Volkswagen and Honda Motor dealerships.

Minas Gerais and Mato Grosso do Sul – all within a 150 mile radius of the company headquarters in São José do Rio Preto (São Paulo state).

“Our other businesses run nationwide. In the case of construction, the industry pays more and more attention to detail every day.

We need to know our sites very well – we need to be close to them,” Tarraf says. All of the businesses are managed from Grupo Tarraf’s facility in São José do Rio Preto. According to Tarraf, centralizing operations was also a move towards more effective control.

Just Right “Successful building projects are a question of innovation without overdoing it. Innovation and modernization are important but practicality is more important than technology – you can’t be too futuristic in a region that just doesn’t need it,” Tarraf asserts.

Grupo Tarraf recently launched a building of luxury studio apartments. “The studio apartment is not a revolutionary idea, but it was INDUSTRY TODAY 65

PROFILE • GRUPO TARRAF

“We innovate in the moment and our construction is a result of research and forecasts that have become an intrinsic part of the Tarraf brand.”

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GRUPO TARRAF • PROFILE

KNOWING THE MARKET Grupo Tarraf works with a trusted group of market analysts whose research is carefully considered before launching new projects. The youthful approach to new projects, including innovations and considerations of current property market fashions in Brazil and abroad, is characteristic of Tarraf’s construction. Among the professionals consulted about future investments are realtors and architects.

“It is through our highly professional team that we have achieved nationwide market credibility. Thanks to them, I can make decisions on price, finish and features that distinguish the Tarraf Group from the rest,” says President of the group, Olavo Tarraf. ideal for the area,” Tarraf explains. In fact, despite two rounds of bitter presidential elections, which resulted in the closest results in Brazilian history, Grupo Tarraf still sold 320 studios in 21 days. “It was a giant step forward for us,” Tarraf confirms.

This is one of many success stories for Grupo Tarraf. The group was also responsible for the Villa Burghese housing project 15 years ago, which received critical acclaim as the first residential project for Brazil’s lower-middle class. The three closed complexes revolutionized the property market. “The government housing initiative ‘Minha Casa, Minha Vida’ did not exist at the time – Vill Burghese was one of a kind,” Tarraf says.

The result of the project was a highly-sought after residential area that has boosted property values and is now a well-respected middle-class neighborhood. “We innovate in the moment

and our construction is a result of research and forecasts that have become an intrinsic part of the Tarraf brand,” he says.

New Horizons Grupo Tarraf channels millions of dollars into projects throughout the year. At present over $150 million is tied up in constructions in seven cities. “Investment is part of our business,” Tarraf confirms.

As part of plans to double growth in the next

Pictured: Several of Tarraf’s projects; below: Gabriela Tarraf, Executive Partner.

INDUSTRY TODAY 67

PROFILE • GRUPO TARRAF

ERR ON THE SIDE OF CAUTION Brazil’s property market has seen better days. Recent presidential elections and fears that inflation is once again out of control are scaring buyers and investors. For Olavo Tarraf, President of Grupo Tarraf, Brazil’s leading name in construction project management, it is nothing new: “We are always dealing with these factors here. We have one eye on the cat (the government) and the other on the fish (business).” In other words, the company knows how to handle difficulty.

The Tarraf Group is enterprising and innovative, but only takes calculated risks.

Thorough market research and opinions from diverse industry specialists are part of the decision-making process. Once a project is ready, it is presented to experts who not only offer opinions, but test the market by speaking to buyers and investors.

Projects that are seen to have low response are aborted to eliminate risk. The strategy is a successful way of controlling costs.

68 INDUSTRY TODAY

GRUPO TARRAF • PROFILE

“In the construction industry it is difficult to make a significant difference through technology… Our differential is management.” five years – a strategy that will increase investment to $260 million - Grupo Tarraf has announced plans to develop two new areas in São José do Rio Preto. The first, a 28,000-square-meter area located in one of the city’s best regions, the second a vast farm just 15 minutes from the city center, which will offer 14,000 plots for residential construction. “They are huge undertakings and the reason for our accelerated growth in the future,” Tarraf says.

The Tarraf Group is moving forward, focused on construction. The market leader is a

firm believer in the development and the continued urbanization of Brazil and executes projects aimed at providing the best for its clients.

Having built a solid reputation in competence and reliability, Tarraf is a consolidated brand in the engineering and construction industry.

“Our business is to offer security, partnership and planning of major constructions to large companies and the property market in general – and this is how we have gained market leadership,” concludes Tarraf.

INDUSTRY TODAY 69

PROFILE • PENTAFLEX

70 INDUSTRY TODAY

PENTAFLEX • PROFILE

Pentaflex serves as one of North America’s emerging leaders in precision stamping for the heavy truck industry. Dave Arndt, President of Pentaflex, talks about the history of the company that led them to where they are today, the factors behind a 25 percent increase in both sales and employment over the last year, and the philosophy behind the company’s greater presence and commitment to the future of not only their company, but manufacturing in general.

Steve Engelhardt reports.

INDUSTRY TODAY 71

PROFILE • PENTAFLEX

stablished in 1972 by Jack McGregor, Pentaflex began as a small stamping business in Springfield, Ohio. For the next 28 years, the McGregors slowly grew their business from the surrounding area to a national presence and by 2001, the company had outgrown its former facility and moved from downtown into a 123,000-square-foot plant to accommodate surging demand. “We earned a strong reputation from our ability to manufacture high quality, deep-draw heavy gauge stampings and welded assemblies for the heavy truck industry,” says Arndt, adding, “Our success in such has led to many tier-one heavy truck suppliers, and ultimately OEM’s like Volvo, Paccar, Navistar, and Freightliner,

72 INDUSTRY TODAY

relying upon our parts today.”

Investing in the Future In recent years, the company has responded to their increased demand by making several strategic investments into machinery upgrades, enabling them to not just manage, but excel in their partnerships with their tier-one suppliers.

“Up until 2011, our strength was really anything over .125” thick material, but since then we have added an 880-ton AIDA mechanical press, allowing us to drop down to .060” thick and as a result, take on a greater range of parts.”

Pictured: MFG day students from Clark County, CT; below: Touring students in the Press Shop.

PENTAFLEX • PROFILE

A precision metal fabrication business specializing in lowto-medium-volume production parts and assemblies for the heavy truck and bus industry, recreation and specialty vehicles.

No request is ever too big or too small.

With our dedicated team of experts, we pride ourselves on our multi-axis laser cutting capabilities. We are expanding to further our commitment to excellence with the addition of a robotic laser cell. Partners such as PENTAFLEX, appreciate our proven experience and competence as we are able to help them and many others reduce costs and improve project manufacturing lead times.

Our Quality Control System is registered ISO 9001:2008.

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To learn more about our complete range of capabilities visit www.laserfabtech.com or call us at 937.493.0800.

INDUSTRY TODAY 73

PROFILE • PENTAFLEX

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PENTAFLEX • PROFILE

He says that in particular, the upgrades led to Pentaflex picking up a large chunk of business in brake dust shield production.

And yet, while the investment in 2011 helped the company take a big a step forward, the ones made in 2014 have proven to be what Arndt calls, “an absolute game changer for our

company.”

In June, the company launched a 330-ton AIDA servo press, which Arndt says, “has done wonders for us on the light gauge side, as we can now go down to .030” coils.” In fact, the company has experienced so much success from their new servo press that they were anxiously awaiting delivery on an additional 700-ton AIDA servo press for their Springfield facility.

“With the servo press, many of the parts we used to run on 300-ton mechanical presses can now be produced twice as fast, leading to our operating costs being reduced, which in turn benefits our customers because they can bring parts to the market at a lower price.”

But more importantly is that with 80 percent of all new presses purchased being quoted as servo presses in 2014, Pentaflex is utilizing machinery that is largely viewed as the future of its industry. In addition to the new machinery, Arndt says the company is also looking at the Pictured:1600T hydraulic press with mechanical transfer system; below: Pentaflex facility in Springfield.

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PROFILE • PENTAFLEX

implementation of 3D printing technology in their processes, as the ability to print a component on the spot could lead to advantages in machinery maintenance and production output. “We have always prided ourselves on being innovative, and we feel the presence and utilization of cutting-edge technology is not only important to our operating processes, but our overall identity as well,” he says.

Commitment to Quality If innovation is part of their identity, a dedication to high-quality manufacturing is responsible for the rest of it. “Here at Pentaflex, manufacturing is at the core of what drives our success,” he says, adding, “whether it’s moving into a bigger facility to accommodate increased

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demand like we did in 2001, making investments into new machinery as we did in 2011 and this year, or remaining focused upon continuous improvement with lean initiatives each and every year, excelling in manufacturing is our purpose.”

Specifically, Arndt says that every January, he and the rest of his lean Steering Committee, which is made up of cross functional senior management, sit down and lay out approximately 50 “action items” which they view as either areas of production that could be improved, or business opportunities that should be pursued. “We have one Six Sigma Black Belt, and two Green Belts within our staff, and along with the rest of the committee, we focus on how to become better at what we do.” And

PENTAFLEX • PROFILE

MORE ABOUT THE AIDA SERVO PRESS: The AIDA DSF-N2 Servo Press uses AIDA’s high torque, low RPM servo motors.

AIDA’s direct drive offers the same stroke length and torque rating as a conventional mechanical press while allowing full torque to be used at as little as five strokes a minute.

Competitive systems that use low torque motors and complex drive systems cannot match the performance of ServoPro’s high torque, low RPM motor.

Because capacitors store power in the non-working portion of the stroke, power consumption is comparable to that of a mechanical press. from this effort, the results have shown.

The Precision Metalforming Association (PMA) gives out seven annual awards for excellence displayed in manufacturing. In 2013, Pentaflex won two of the awards, under the categories of ‘Productivity’ and ‘Quality’. “This year we won two more awards for Safety and

“Here at Pentaflex, manufacturing is at the core of what drives our success.”

Education/Training and they are something we are extremely proud of, because they speak to the attributes that are most important to our company,” says Arndt.

National Manufacturing Day National Manufacturing Day 2014 was held on October 3rd, and it’s no surprise that Pentaflex was one of the many manufacturers across the United States celebrating the event and participating in raising awareness about the future of U.S. manufacturing. This year, the event focused on engaging the youth demographic, and driving increased interest in manufacturing careers. In response to this, Pentaflex held an informational event at its Springfield facility Pictured: Dave Arndt in front of the new 700T servo press pit; INDUSTRY TODAY 77

PROFILE • PENTAFLEX

“We have one Six Sigma Black Belt, and two Green Belts within our staff, and along with the rest of the committee, we focus on how to become better at what we do.” where students from three surrounding high schools came in and were able to tour the factory, see the technology and machinery in action firsthand, and speak with both plant floor employees and senior management about the nature and benefits of manufacturing.

“Our goals were to attract as many students as possible in our regional Manufacturing Day events held across Ohio,” says Arndt, who also 78 INDUSTRY TODAY

sits on the Dayton Regional Manufacturing Association Committee. He says that, in addition to giving the students a tour of the internal workings at Pentaflex, he also discussed the history of automotive manufacturing and stamping in general, and how it has progressed to where it is today. “Safety and quality have always been central to our efforts here at Pentaflex, but I wanted to show them just how

PENTAFLEX • PROFILE

much the industry has improved over the years, and how we represent one of the companies at the forefront of it all today.” He says that at the end of the day, they gave each of the 75 students in attendance a flash drive with additional data about Pentaflex and manufacturing, to further drive the point home and leave a lasting impression.

Having an active role in not just their own future, but manufacturing’s as a whole, is why Pictured above left:880T Aida mechanical press; above right: Class 8 truck stampings;

Pentaflex is as successful as they are today.

In addition to hosting community-outreach events like the one on National Manufacturing Day, the company annually attends conferences held by the PMA and MEMA, and actively lobbies congress about the issues key to successfully functioning as a manufacturer in the state of Ohio. “We were fortunate enough to even have House Speaker John Boehner come visit our facilities in 2012 and speak with us about our company and our needs,” he says, adding, “I think his presence speaks to the significance of manufacturing in Ohio and Pentaflex’s role in it.

Pentaflex’s annual revenues and employment are up 25 percent in 2014, and Arndt says that 2015 is shaping up to be just as good, if not better for them. And why wouldn’t it?

With a focus upon quality and efficiency, and a dedication and active role in many of U.S. manufacturing’s greater goals, Pentaflex looks to be a company that will continue to excel and grow for many years to come.

INDUSTRY TODAY 79

PROFILE • TAYLOR WINFIELD

Bringing advanced manufacturing solutions to a worldwide customer base since 1882, Taylor Winfield Technologies is a company that has taken a well-established tradition and built upon it through continuous innovation and a never-ending commitment to quality and on-time delivery. Alex Benyo, president of the company, and Blake Rhein, vice president of sales and marketing, talk about the evolution of Taylor Winfield Technologies and discuss the importance—and impact—of recent investments into research and development that has the company expanding to new markets and generating more business than ever.

Steve Engelhardt reports.

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TAYLOR WINFIELD • PROFILE

INDUSTRY TODAY 81

PROFILE • TAYLOR WINFIELD

n the late 19th century, owners of two sheet metal companies operating under the respective names of Taylor Corporation and Winfield Corporation decided to capitalize off of what was an amiable personal relationship at the time and join forces, in hopes of taking their businesses to the next level.

Combining the two enterprises proved to a be a prudent decision, as the newly formed Taylor Winfield Technologies soon took off, and by the 1920’s, had firmly established themselves as a leader in the manufacture of galvanized steel buckets for the burgeoning coal industry, a position attained by their development of a cutting-edge resistance welding process. “Electricity was still in its infancy back

ing all of the landing gear in the U.S. military’s B-52 bombers during World War II. “We excelled during the war years, but beyond that have continuously built upon our reputation to become a company today that, in addition to manufacturing high-quality standard welding machines, is highly dynamic in our ability to develop application-driven solutions for our customers,” says Benyo.

A Series of Investments In addition to their experience, Taylor Winfield has always been focused on building meaningful relationships, and it’s interesting the way things have recently come full circle for the company with regards to such. Around 2010,

“We focus on innovating for both the present and future, and our machinery, which includes new laser welding and joining equipment, enables us to meet a wide variety of needs and requests made to us by our customers.”

-Blake Rhein, Vice President, Sales and Marketing then, so the development of this technology, which uses two electrodes to grow a welding nugget between them, firmly established Taylor Winfield as not just a high-quality manufacturer, but also as innovators in the field of welding as well.”

The company’s success has only grown from there, and their manufacturing proficiency has led to a rich history filled with notable partnerships and accomplishments, such as flash weld82 INDUSTRY TODAY

they were under the control of a 3rd generation owner who was ready to retire, yet didn’t have any legacy heirs that wished to take over the business. With a desire to keep the business local, he turned to Benyo and his brother Brian, who already owned a couple businesses in the area, most notably their joint fabrication business, Brilex Industries. “Taylor Winfield Pictured: The twinlap welder.

TAYLOR WINFIELD • PROFILE

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PROFILE • TAYLOR WINFIELD

actually gave Brilex Industries its first purchase order back in 1996,” Benyo says, adding, “and then fourteen years later we found ourselves acquiring the company.”

Shortly afterwards, Taylor Winfield Technologies acquired Boltech Inc., a move that expanded their product line and allowed the company to subsequently enter and significantly impact the material handling market.

“We have evolved to the point where we have a product line that impacts a number of

different markets, a manufacturing presence that can handle any type of demand, and most recently, have invested significantly into a research and development laboratory to ensure that the success Taylor Winfield has had over the last century can be met and surpassed in the coming one,” Benyo says.

The research and development lab, in particular, is critical to the company’s future. Rhein says the lab, which features over $600,000 worth of cutting-edge equipment, enables

DID YOU KNOW? Taylor Winfield Technology’s history is full of notable partnerships with some of the world’s most well-known manufacturers, but perhaps their most impressive is displayed through a picture hanging in their research and development laboratory of Thomas Edison and Henry Ford surveying one of their flash butt rims which would eventually be employed in the mass production of the Model T. 84 INDUSTRY TODAY

TAYLOR WINFIELD • PROFILE

them to identify current deficiencies in their processes and improve upon them, while also providing a dedicated platform to develop next generation technologies and capabilities to be employed in the future. “We focus on innovating for both the present and future, and our machinery, which includes new laser welding and joining equipment, enables us to meet a wide variety of needs and requests made to us by our customers,” he says.

Product Innovation The company’s commitment to fostering innovation in a flexible manner has led to them Pictured: Blake Rhein, Vice President of Sales and Marketing, & Frank Deley, Vice President of Operations; above: Taylor Winfield factory.

bringing a number of new technologies and products to the market.

For example, last year Taylor Winfield unveiled a brand new, patented flash welding process called Force Freeze. “The process extended the range of materials capable of being joined using conventional flash butt welders, INDUSTRY TODAY 85

PROFILE • TAYLOR WINFIELD

eliminated ‘checker boarding’, and minimized the formation of oxides, carbides, and nitrides which can often disrupt the weld region and cause weld joint failure,” says Rhein.

The technology is especially critical given the steel industry’s shift towards higher strength, 86 INDUSTRY TODAY

lighter weight steels, as well as the increasingly higher demand for aluminum within the auto industry as well. “This induction heating process can be adapted to many older machines, like C-flat welders, so that they can join and process a much greater range of materials that are in demand in today’s markets.

Additionally, Taylor Winfield recently developed a new flash control called the IWS 5.0, which by using Force Freeze technology, allows flash butt welders to use high strength materials via flash bulb welders, whereas in the past they would have required the use of laser systems.

Benyo says this is particularly important given the rise of aluminum in the automotive market, where customers would much rather prefer

TAYLOR WINFIELD • PROFILE

a welding technology employed in the joining process, rather than “stitching”—a process which pierces and curls the materials to join them together but often leaves the equipment damaged.

Aside from these technologies, Benyo says their most recent development has come in the area of fiber laser processes. “Whereas CO2 lasers utilize mirrors to direct the beam where it wants to go, a fiber laser uses fiber optics, which provides us with a much more effective laser for the welding applications we pursue,” he says, adding, “It also allows us to be much more flex-

ible in our ability to deliver it repetitively and to the right place without having to perform continuous adjustments to such.”

Benyo and Rhein both agree that while this display of innovation is critical to their current and future success, perhaps even more significant is the manner in which they engage their customers.

Commitment to the Customer With over 50,000 of their machines being utilized in manufacturers worldwide, including within the plants of industry giants like Boeing

INDUSTRY TODAY 87

PROFILE • TAYLOR WINFIELD

“We excelled during the war years, but beyond that have continuously built upon our reputation to become a company today that, in addition to manufacturing high-quality standard welding machines, is highly dynamic in our ability to develop application-driven solutions for our customers.” -Alex Benyo, President and John Deere, Taylor Winfield has proven that its ability to service the customer is just as important as their machines’ ability to perform reliably and consistently. “We understand that if our customers are successful, then so are we,” says Benyo, adding, “Treating every partnership with the same level of commitment and dedication, we combine our dynamic workforce of engineers and open-minded philosophy towards our machines to create a flexible option for companies no matter their size.”

In fact, Rhein recalls a recent instance with a 88 INDUSTRY TODAY

customer down in Brazil, who also happens to be the world’s largest steel producer by tonnage, where they stepped in and provided a critical solution in order to keep the company running along smoothly. “They were introducing new materials into their process stream, but the traditional seam welding process they had in place was experiencing a number of difficulties joining such materials due to their chemistry,” he says, adding, “The material was very brittle, creating a high probability that the joints would break.”

TAYLOR WINFIELD • PROFILE

He says that their team of engineers put their heads together and developed an inline induction heating system to go inside the company’s seam welders that tempered the weld and restored the ductility of the welded joint, allowing the user to have a high degree of confidence in the integrity of the weld. “It was critical for them, because when you think about their ties to supplying the automotive and other major steel-based industries, a break in their line could shut the factory down for a couple of days and create huge losses in tonnage.”

Combining a commitment to innovation and customer service has Taylor Winfield Technologies looking stronger than ever. It’s a company with roots that stretch deep into the ground, yet its growth in recent years has it pounding its way forward towards an exciting future.

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PROFILE • ISE METAL

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ISE METAL • PROFILE

Operating as a custom metal manufacturing company since 1934, ISE Metal has long served as a reliable and high-quality stamping company for North American industry. Steve Engelhardt reports on what truly is a dynamic company. ecently, however, the company is adding another feather to its cap, channeling its longstanding expertise of metalworking and using such to transition towards the design and development of new, metal-based products for the personal storage and waste-water treatment markets. Jared Hen-

derson, Director of Sales for the company and son of ISE Metal owner Robert Henderson, and Marc Boily business development manager, talk about the exciting steps ISE Metal is taking towards the future through their Consto and Aquanox divisions, while reinforcing the company’s commitment to manufacturing INDUSTRY TODAY 91

PROFILE • ISE METAL

“It was always my father’s vision to eventually go beyond being merely subcontractors and produce our own proprietary products. We’ve now taken those steps and in doing so, have laid out what is a very exciting future in front of us.”

-Jared Henderson, Director, Sales and Marketing excellence through the acquisition of a new production facility in Mexico.

Celebrating its 80th year in business, the company’s ownership passed into Robert Henderson’s hands when he bought ISE Metal in 1993. “Prior to that point, the company was primarily operating as a metal stamper,”

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says Henderson, adding, “But upon my father taking the helm, it has since evolved into a laser cutting, assembly-type business that impacts markets in North America and beyond.” He says that through these capabilities they are able to service a wide variety of industries, from automotive and appliance, to packaging and customized machinery. “Any project-based industry that values high-quality sheet metal is one that we can excel and succeed in.”

Over the last twenty or so years, ISE Metal has been churning out these metal products and parts across its six facilities in Sherbrooke, Quebec, Canada. Operating under ISO-9001 certified-production, the company enjoys deep partnerships with locally-based conglomerates like GLV for its pulp and paper needs, as well as international players like LWB, a German company that produces metal stamp carriers for the automotive market. “We’re able to work with companies of all sizes and locations because of the long list of manufacturing capabilities we can offer; all of which is done through quality and lean-based principles,” Henderson says. And it’s this overarching presence of

ISE METAL • PROFILE

TAKING A CLOSER LOOK: THE CONSTO LOCKER • Almost 100 cubic feet of storage; • • •

• • •

•

manufacturing proficiency that led to a light bulb going off in his head a couple years ago.

Securing A Need

In the summer of 2012, Henderson was living #4 Stainless steel will never rust; in Ottawa, in a new condo complex. “These new condominiums, which have been popTotal weight of 450 pounds; ping up all over Canada and the U.S. over the Convenient side doors to store items without last few years, don’t really come with a lot of moving your car; personal storage space, and as an avid hockey Customized shelving options; player and general outdoor enthusiast, I found myself having to store much of my offseason Adjustable feet; clothing and equipment outside in my car,” Perforated Roof conforms to fire code he says, adding, “I noticed a lot of other peorequirements; ple living in the complex were doing the same Can be assembled and disassembled at the and while it wasn’t an optimal situation, we owner’s convenience.

didn’t really have any other choice.” His www.iseaquanox.com dissatisfaction was justified when he had his car INDUSTRY TODAY 93

PROFILE • ISE METAL

broken into one night, and all of his equipment and clothing stolen.

“I was upset because I had seen this coming, and I thought to myself, as these kind of residencies become increasingly prevalent across North America, there are going to be many others dealing with this storage and peace of mind issue,” he says, adding, “I said, ‘There’s got to be a better way’, and when I looked at my parking spot, the relative consistency of its size of space compared to those in other complexes, ISE Metal has evolved into a laser cutting, assembly-type business.

94 INDUSTRY TODAY

and then considered ISE Metal’s manufacturing capabilities, I was able to find a solution.”

Henderson’s solution was to develop a 6-foot high by 6-foot wide, 2.5-foot deep, personal storage locker that could fit in the back of a parking lot and serve as a safe, cost-effective method to store and protect one’s seasonal items and valuables. “The product is called the Consto Locker, and with doors on both sides, you’re able to back in fully with your vehicle and open the locker from its sides, rather

ISE METAL • PROFILE

INDUSTRY TODAY 95

PROFILE • ISE METAL

at the same level of quality that all other ISE Metal products and parts are. An innovative, quality-based product that looks to serve the fast emerging condominium markets in North America, readers can learn even more about the Consto Locker by visiting www.consto.ca.

Controlling the Flow

than just in front” he says. With nearly 100 cubic feet of storage room, it prevents a sizable space that can fit anything from bikes and winter tires, to sporting equipment and personal items. “It’s a much more cost-effective solution than having to travel to and from public storage locations, where prolonged storage can be as high as a hundred dollars a month.”

Perhaps most impressive about the Consto Locker is that it’s going to be manufactured within ISE Metal’s facilities, allowing customers to be confident that a product designed for storage and security purposes is being produced 96 INDUSTRY TODAY

Aside from the Consto Locker, ISE Metal has another division that is looking to make its own impact, albeit in an entirely different market. A year and a half ago, the company’s Aquanox division began production of a line of fabricated, stainless steel water control gates designed for waste-water and municipal water treatment markets in the U.S. and Canada. “Prior to this, there was a company called Fontaine Industries here in Canada that had been producing these gates for quite some time, but eventually had to close and consolidate,” says Boily, adding, “When this happened, there were quite a few experienced employees from their company looking for work, and we found that with their preexisting expertise and our metalworking excellence, there was an opportunity to be had.”

Now, in 2014, Aquanox is up and running, manufacturing and selling high-quality water control gates from sizes as small as 1-foot long by 1-foot wide to as large as 10-feet long by 10-feet wide. “We are already seeing a lot of demand for these products in North America, and we know that there will eventually be growth in Europe as well,” Boily says, continuing, “and then when you consider other, less-developed areas of the world where the treatment and

ISE METAL • PROFILE

management of water are fast approaching concepts, we really view the sky as the limit in terms of these products’ potential.”

Boily says that since launching in 2013, growth has been rapid and he expects 2015 to double, or perhaps even triple their current revenue figures. “It’s a custom built, fully-engineered product that can be delivered within days of order, and we’re very optimistic about where it’s headed, given what the market currently offers.”

ISE Metal’s reactive and practical decision making has them set up to succeed across a wide variety of markets for many years to come. In a time where many companies similar to them are experiencing cutbacks and generally slowing down overall, the company is putting its foot firmly on the pedal, speeding ahead towards what should be a fruitful destination.

Looking Ahead The development of the Consto Locker and Aquanox’s water control gates show ISE Metal’s dynamic mindset and focus on the future.

“It was always my father’s vision to eventually go beyond being merely subcontractors and produce our own proprietary products,” Henderson says, adding, “We’ve now taken those steps and in doing so, have laid out what is a very exciting future in front of us.”

In addition to their venture into product development, ISE Metal also recently opened a new production facility in Saltillo, Mexico, to meet stamping demand that has slowly crept out of North America and into countries with cheaper labor. “We’re taking on new industries while still maintaining our commitment to providing quality metal stamping solutions, and this move to Mexico reinforces that notion,” Henderson says, adding, “We also have tentative plans to expand our line of stamped carriers into Brazil as well, as that market continues to grow.”

“It’s a custom built, fullyengineered product that can be delivered within days of order, and we’re very optimistic about where it’s headed.”

-Marc Boily, Manager, Business Development INDUSTRY TODAY 97

PROFILE • COVENANT TRANSPORT

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COVENANT TRANSPORT • PROFILE

The trucking industry and its role in delivering products of all shapes, sizes, and costs across the United States is an aspect of the business world that sometimes gets forgotten. And yet, remove these 18-wheeled behemoths from the roads and the vehicle of consumerism comes to a grinding halt. Enter Sam Hough, Chief Operating Officer of Covenant Transport, one of the nation’s leading truck carriers, who talks about why, in face of an increasingly fast-paced market, the key to continuously satisfying and exceeding customers’ needs comes from a healthy presence of modernization within their trucks and an expansive team of talented, hardworking professional drivers at their helm. Steve Engelhardt reports.

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PROFILE • COVENANT TRANSPORT

t’s been twenty years since the company went public, and today, Covenant Transportation Group (“CTG”) comprises six divisions, split equally between three asset-based trucking companies and three nonasset-based units which all come together to provide a comprehensive set of transportation services for their customers.

“Covenant Transport is the largest of the three asset-based companies within CTG. We are based in Chattanooga, Tennessee, with a fleet of about 1,400 seated trucks, 800 of which are used by our team drivers, and our regional terminals create a delivery zone that extends into the major markets in Canada and Mexico,” Hough says.

“Our trucks often carry high-profile items, particularly within the ecommerce market, and the ability to provide the presence of skilled responsible drivers in charge of getting them to their destinations is what sets us apart from the rest.”

100 INDUSTRY TODAY

COVENANT TRANSPORT • PROFILE

Investing in the Future For him, Covenant Transport’s current position as one of the most trusted truckload carriers in North America has been the result of fostering deep-rooted partnerships through a commitment to safety and on-time delivery, and more recently, has been solidified further through a number of investments into both its vehicles and its professional drivers.

sus older trucks is unbeatable. “As a truckload carrier delivering products over long distances, fuel is our greatest cost,” he says, adding, “Fortunately, fuel economy in trucks has advanced greatly recently, as you look at a truck that was sold 36 months ago versus a unit produced today, and the difference really is night and day, and we have seen huge benefits from a large scale investment into such.”

Specifically with regards to their semi-tractors, Hough says in the last few years they have completely revamped their fleet by creating a convoy consisting primarily of new models.

“We have been extremely aggressive in buying new trucks, and as a result the average age of vehicles in our fleet is 16 months.” Having an arsenal of modern trucks goes beyond just the flair, as Hough says the performance ver-

In fact, the improvements in fuel economy have been so significant, that the company has started looking at other aspects of their trucks where savings could be enhanced even more.

“We’ve had skirts on our trailers for the last few years, and this year we have actually begun testing ‘Trailer Tails’ for the first time, identifying their aerodynamics and impact upon the tractor-trailers’ fuel economy, as well as INDUSTRY TODAY 101

PROFILE • COVENANT TRANSPORT

testing manual versus automatic transmissions,” he says, adding, “and what we’ve found is that there are a numbers of factors at play in our trucks ability to run efficiently, and we have developed a strong grasp of how to achieve such efficiency on a consistent basis.”

Strength of Safety In addition to fuel savings, the company has also made significant investments into upgrading the overall safety of their trucks on the road.

Hough says all of their trucks currently being purchased have undergone the integration of a number of new cutting-edge automotive safety technologies, which include lane departure warning systems, which aid the driver in maintaining his lane position in the midst of long distance drives, and roll stability control, which automatically shifts down the trucks’ engine torque when moving too fast around a bend in the road, and front-collision mitigation systems. “We really put our money where our mouth is when it comes to ensuring the safety of our drivers, the products, and other vehicles travelling on the road as well.”

KEEPING CARGO SAFE In addition to driver safety and speed of delivery, Covenant Transport has also taken important steps and instituted security protocols towards ensuring that their customers’ cargo stays safe and remains “one step ahead of the bad guys.” In fact, they have seen a 90 percent reduction in theft and losses since 2000.

Covenant’s in-house security department features a 24/7 loss prevention and incident reporting and response center. Their drivers must pass education programs specifically designed to help them recognize and prevent risk. Additionally, their state-of-the-art and proprietary vehicle-immobilizing device, along with continuous driver interviews and security assessments in transit, keep high exposure loads in constant sight.

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COVENANT TRANSPORT • PROFILE

“Everything starts with the professional driver, because without them, nothing would get moved in the first place.”

And he’s right, as going beyond just the implementation of automated systems within their trucks, the company also has an extensive team of meteorologists and service providers on the ground in many states across the country that work together to update the company and its drivers of relevant weather patterns, road conditions, and traffic predicaments that could impact their ability to deliver their customers’ products safely and on time.

“We have an Incident Response Center (IRC) where a team of individuals work full time to, amongst other functions, provide our professional drivers with visibility in upcoming weather patterns and road conditions that lay ahead, and offer alternate routes to take as a way of avoiding them,” he says, adding, “To add to this, we have employees in many cities and regions around the country who collaborate with this effort by providing real-time, on INDUSTRY TODAY 103

PROFILE • COVENANT TRANSPORT

the ground information as well.”

Prioritizing the Professional Driver Efforts like these are why Covenant Transport has won a number of logistics and supplier awards in just the last few years. But Hough

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104 INDUSTRY TODAY

is adamant that while safety and on-time delivery is what defines their reputation, none of it would be possible without their extensive team of experienced and dedicated professional drivers. “Everything starts with the professional driver, because without them, nothing would get moved in the first place,” he says, adding, “In fact, we view them with the same kind of significance that we place upon our customers.”

He says that given the decline in the number of professional drivers in North America, building a team of talented drivers and retaining them over the years has been a key focus for his company. “We’re very family-oriented here at Covenant Transport, as well as across CTG, and our relationship with our professional drivers reflects that,” he says, continuing, “Our drivers bring us our success and we repay them by making sure that for all the time out Pictured left to right: Sam Hough, Chief Operating Officer of Covenant Transport; Joey Hogan, President of Covenant Transportation.

COVENANT TRANSPORT • PROFILE

on the road, they’re being compensated with money and quality-of-life considerations such as time off that reflects our appreciation for such efforts.”

For example, Hough says that Covenant Transport offers its driving employees a corporate guarantee that they will be able to get home when they need to, should they request it. “We know life is more than just about being behind the wheel for them, and maintaining a strong family life is a part of our culture,” he says, adding, “So we tell our professional drivers, if they give us at least seven days notice, then we will ensure that they are able to get home, no matter their schedule.”

The relationship between Covenant Transport and its drivers has only continued to blossom, with the company’s team of drivers winning a number of “Top 100 Truckers” awards just within the last two years and build-

ing upon Covenant Transport’s reputation for safety, quality, and on-time delivery. “Our trucks often carry high-profile items, particularly within the e-commerce market, and the ability to provide the presence of skilled responsible drivers in charge of getting them to their destinations is what sets us apart from the rest.”

Covenant Transport is a company that, despite it’s expansive fleet and nearly 3,000 employees, operates with the care and dedication of a small business. “Outside of technology investments into our vehicles, we like to keep it simple, with the focus being on a strength and safety of service, and ensuring the recruitment and retention of skilled drivers to provide such.”

Looking ahead, it’s an open road for Covenant Transport, as with an established reputation and commitment to the customer, the company should continue to power along the highway of success for many years to come.

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PROFILE • MICROBIRD

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MICROBIRD• PROFILE

Micro Bird Inc, a designer and manufacturer of commercial buses, is a name that has been trusted and relied upon across Canada since their founding in 1966. Building up this reputation over the years through a commitment to quality and innovation, surging demand has them now heading south of the border and into the private markets of the United States. Normand Paquet, Vice President of sales and marketing, and James Mansell, National Sales Manager for the company’s newly established U.S. presence, discuss the company philosophy that has led up to their current success, as well as why they’re extremely confident in their future as they take a big step forward. Steve Engelhardt reports.

ravelling across Canada, there’s a good chance one will see Micro Bird buses alongside themselves on the road, no matter if you’re in Quebec, Toronto, or even British Columbia. In fact, it’s possible you may even be travelling in one yourself. “In Canada we own 50 percent of the market share, says Paquet, adding, “In terms of our presence in Canada, we are the leader in providing shuttle buses, tour buses, and the like.”

Dynamic Vehicles Micro Bird’s fleet is defined by two different models, the S-Series and the D-Series, as well as a number of different customizable specialty vehicles, with each vehicle able to hold up to 25 passengers at a given time. The S-Series is a single rear wheel model produced on a Ford or General Motors’ chassis of a slimmer body shape. “It’s an extremely handy vehicle to have when travelling through an urban INDUSTRY TODAY 107

PROFILE • MICROBIRD

Specialists in specially engineered window and door solutions for school and transit buses.

We engineer, design and fabricate windows that move for a broad range of industries: Buses • Heavy Industry • Emergency & Defense • Recreational • Mining & Forestry

Our efficient manufacturing processes offer you premium quality control, innovative design and just in time delivery through our distribution network throughout North America.

Offering a high quality product line at the lowest price and the best customer service to our clients.

We are proud to be in partnership with MICROBIRD, delivering solutions to them since 1997.

SPECTAL INDUSTRIES, INC. Granby, QC, Canada; Gaffney, SC and Springfield, TN / 1-888-SPECTAL / www.spectal.ca 108 INDUSTRY TODAY

MICROBIRD • PROFILE

Microbird has averaged annual growth of between 10 and 15 percent over the last 7 years.

location where there may be narrow streets or cars parked on both sides of the road,” says Mansell, adding, “This vehicle also comes in a DLX (Deluxe) version, where customers are given the option of a more luxurious interior and smoother overall finish.”

The D-Series is what is known as Micro Bird’s “duel rear wheel unit”. Also available in either standard or deluxe versions, the vehicle is a bit bigger than its S-Series counterpart and is available in a number of different configurations, an aspect that Mansell believes will facilitate demand from a “wide number of dealers and overall networks within the United States.”

While part of their initial confidence and success in the U.S. market is because of their vehicles’ dynamicity, an even greater strength Micro Bird brings into partnerships is their deep-rooted experience and record for safety and overall structural quality. “In addition to commercial needs, we also have enjoyed a strong presence in the school bus industry given our partnership with companies like Blue Bird,” says Paquet, adding, “and because of the safety and structural requirements legislated for such vehicles, we have become a leader over the years in effectively testing and engineering our vehicles in a manner that makes them some of the strongest and safest vehicles on the road at any given time.”

Servicing the Customer And where their vehicles may encounter issues, they have an extremely effective and competent maintenance presence to ensure that their buses are back up and running as quickly as possible. “We enjoy access to GM and Ford’s service networks to handle any engine issues that may arise, as well as a tremendous partnership with ROUSH CleanTech for any fuel service needs,” Mansell says. He says that in the U.S. there will be additional service locations in 46 states made possible through their Blue Bird dealer network. ”Our vehicles are built upon quality and reliability, but we know that if anything does happen to one of our units, our INDUSTRY TODAY 109

PROFILE • MICROBIRD

Microbird vehicles are some of the strongest and safest vehicles on the road.

customers have access to a service network that will quickly and effectively handle any and all needs they may have.”

Beyond servicing, Micro Bird also acts as a trusted source of industry knowledge for their current and potential customers. “We had a contractor in Chicago come to us, asking about

“We believe that given our buses’ quality, safety, and overall cost of ownership, it makes us a perfect niche for the U.S. private market, and the feedback we have received thus fare has validated such sentiment.”-James Mansell 110 INDUSTRY TODAY

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the potential benefits of utilizing alternative fuels over diesel within his fleet of buses,” says Mansell, adding, “So we flew out there, and discussed with him and his fleet manager the savings, cost of ownership, and where the future of such fuels was headed.” He says that the individual initially agreed to use their alternative fuels in one of his buses, but after a year of use that led to tremendous savings in fuel, he quickly switched his entire fleet over. “We welcome our customers to use us as a source of knowledge, and love to demonstrate just what they can gain from us a designer and manufacturer,” he says.

Micro Bird manufactures all of its vehicles

inside of a 100,000-square-foot production facility located within its headquarters in Drummondville, Quebec. “We are ISO 9001: 2008 certified, and have an additional 71,000-squarefoot warehouse down the road designated for just-in-time delivery on the assembly line, allowing us to quickly and efficiently complete and adapt to lead times,” says Paquet.

Demanding the Market Through all of this—quality, experience, service—it’s no wonder that Micro Bird’s phones are flying off the hook from calls coming in from the U.S. “While we already have a network of dealers set up through our partnership INDUSTRY TODAY 111

PROFILE • MICROBIRD

TAKING A CLOSER LOOK: MICRO BIRD’S D-SERIES AND S-SERIES Listed below are some additional features and benefits of Micro Bird’s D- and S-Series models: STRUCTURE • One-piece galvanized steel roof bows enhance safety and roll over protection; • Aluminum side body panel for longevity and low repair costs; • Reinforced step well for better stability;

SAFETY • Heavy-gauge steel side impact barriers that incorporate the seat rail into the design for extra strength; • Reinforced rear door and buffer zone for rear impact. with Blue Bird, we’re seeing demand from many other players outside of that arena,” says Mansell, adding, “We believe that given our buses’ quality, safety, and overall cost of ownership, it makes us a perfect niche for the U.S. private market, and the feedback we have received thus far has validated such sentiments.”

It’s about taking the next step as a business, and it’s a step that the company is well-suited to make at this time. Paquet says that over the 112 INDUSTRY TODAY

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“We have become a leader over the years in effectively testing and engineering our vehicles in a manner that makes them some of the strongest and safest vehicles on the road at any given time.”

-Norman Paquet last seven years the company has averaged an annual growth of between 10 and 15 percent.

“We were able to continue to grow even in the face of the Great Recession, and when you can do that, you put yourself in a great position to accelerate even further when the economy does come back, a period I believe we are certainly in the midst of,” says Paquet. 2015 should be a record year, he says, because in addition to a ramped up presence in the United States’ private markets, the company also recently unveiled a couple brand new vehicle models at the APTA EXPO 2014 in Houston, Texas. “These vehicles will further expand our line of options for customers, and further broaden the market arena in which we impact.”

It’s an exciting moment for Micro Bird, and their success looks to grow exponentially as they arm themselves with experience and quality in taking on the world’s biggest market. “At the surface we are simply a solution for transportation, but it goes so much deeper than that,” Paquet says, concluding, “Our reputation and identity is one we’re very proud of, and we look forward to continue to display such across both Canada and U.S. dealerships for many years to come.”

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PROFILE • CALÇADA SA

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CALÇADA SA • PROFILE

Look to real estate in Rio de Janeiro. Among the leading construction companies in one of the world’s most exotic cities, Calçada SA has conquered the market through quality. Reuben Ford reports on building a reliable and respected brand. ith extensive experience in the property market, project management and construction, Calçada Empreendimentos Imobiliários SA operates in diverse segments of the industry. Its buildings

are distinguished by meticulous attention to detail and design adapted to the Carioca (Rio de Janeiro) lifestyle.

The company started small but has always thought big and as it celebrates its 30th

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PROFILE • CALÇADA SA

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anniversary, the family business has earned its place among the region’s leaders.

Calçada follows the slogan “the art of construction” and the firm principles of its founder, José Carlos de Matos - having constructed more than one million square meters of residential and commercial buildings in Brazil’s cultural capital.

“We have learned from the strength, dedication, hard work and careful strategy of our founder that we can never compromise on company values: Quality, punctual completion of projects, investment and surpassing expectations,” affirms President of Calçada SA, João Paulo Rio Tinto de Matos.

Marks on the Landscape Calçada’s history began in 1983, when José Carlos de Matos founded Carmo Construction Company in Rio de Janeiro. Three years later he founded Calçada, a second enterprise in the same industry sector, with different partners.

The retrofitting of the well-known Wolfgang Amadeus Mozart Building in Rio’s downtown Cinelândia district was the first mark Calçada made on the city’s landscape. The art deco building, known locally as ‘Amarelinho’, is located opposite the National Theater and recognized as a historical and cultural reference.

The project was awarded the ADEMI (Brazilian Pictured: A range of Calçada’s projects.

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CALÇADA SA • PROFILE

“The size and location of our offices and apartments automatically select an upscale buyer or investor.”

Pictured: Calcada apartments “Barra Mais” which have a minimum of two bedrooms.

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PROFILE • CALÇADA SA

CALÇADA EMPREENDIMENTOS IMOBILIÁRIOS SA • Location: Rio de Janeiro – Brazil; • Products: Residential and commercial construction projects

and management; • Annual sales: in excess of $1.5 billion; • Growth: average 20 percent a year; • Staff: 1,300; • Founded: 1983 – Recently celebrated 30th anniversary.

Pictured: José Carlos de Matos, Founder; above: The atrium retrofit project of the Bom Pastor Convent.

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“Our strength is our word – our promise. The market relies on us.”

Association of Directors in the Property Market) Prize for Restoration and Re-Use. “In 2004, we completed our first building: The Península Residencial Monet in Barra da Tijuca, one of Rio’s most elegant neighborhoods. The large, spacious, luxury apartments were a huge success and set the standard for our construction projects to come,” João Paulo Matos says. Calçada was a pioneer in building in this first ecological city district in Brazil. The Península comprises 360 dwellings ranging from 140 to 434 square meters, some two-floor apartments and others with a characteristic

double-height ceiling in the living room.

Carmo and Calçada operated individually until 2008, with founder and patriarch of the de Matos family, José Carlos de Matos, on the board of both. In this year however, his associate partner at Carmo passed away and he decided Calçada should buy the company, becoming Calçada SA. The change catalyzed growth with the launch of the first new residential building in Tijuca in ten years; The Renaissance.

Calçada’s construction is focused in the Tijuca, Barra da Tijuca and Recreio dos Bandeirantes districts of the city. “We are INDUSTRY TODAY 121

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TIMELINE • 1983 João Carlos de Matos founds Carmo (construction company); • 1986 With different partners, Matos founds Calçada; • 1998 The first retrofit project – of the Amadeus Mozart Building (Amarelinho) located in Rio de Janeiro’s downtown Cinelândia district begins; • 2000 The Amarelinho receives the ADEMI (Brazilian Association of Directors in the

Property Market) Prize for Restoration and Re-Use; • 2002 Start of the Rio 2: a development project in partnership with Carvalho Hosken launching 816 units in five years; • 2004 Completion of first residential building, the Península Residential Monet; • 2004 Calçada is ISO 9001 certified; • 2006 Barra Bonita: a five-year regional development project, delivering four buildings

and a total of 1,000 units; • 2007 João Paulo de Matos (son of the company’s founder) wins Businessman of the year; • 2009 Merger of Carmo and Calçada to produce Calçada Empreendimentos Imobiliários SA. The launch of Renaissance building in Rio’s Tijuca district is its first in ten years

and contributes to the increase in value of the region; • 2011 Atrium retrofit project of the Bom Pastor Convent; • 2012 João Paulo de Matos wins Businessman of the year again. Calçada receives ISO

14001 (environmental management) and OHSAS 18001(occupational health and safety) certificates; • 2013 Viva and Nova Penha projects launch 900 more units. João Paulo Matos assumes

presidency of ADEMI. 100 percent of buildings completed on time; • 2014 A total of more than 2.3 million square meters built 1,150 percent growth in 10

years.

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studying the possibility of future projects in Macaé (a municipality 100 miles from Rio de Janeiro capital) – but are involved in important developments in the state capital’s upscale neighborhoods,” João Paulo Matos confirms.

A Structured Response As Brazil demands investment in infrastructure, construction companies are all in pursuit of the best technology and techniques. For Calçada, this is standard. Matos explains that the company’s significant differences lie in punctuality and quality: “Our strength is our word – our promise. The market relies on us.”

Calçada employs 1,300 staff and, depending on existing projects has up to 2,800 working on construction sites. These additional contractors are responsible for areas such as of plumbing and hydraulic systems, electrical installations and painting.

The company’s projects include residential and commercial office buildings.

“We operate in two niche markets. The size and location of our offices and apartments automatically select an upscale buyer or investor,” Matos says. Calçada’s apartments have a minimum of two bedrooms and prices range from 500,000 Brazilian Reais ($200,000) to 4 INDUSTRY TODAY 123

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Congratulates CALÇADA on their 30 years of success With vast experience in the construction industry we hope to further develop our excellent relationship with CALÇADA, collaborating on future projects, keeping us both at the forefront of our industry.

ENGEMAV offers our clients superior techniques in hydraulic and electrical installations for commercial and industrial buildings. We pride ourselves on offering expert advice and cost effective solutions to our customers.

Contact us for further information.

Rua Dr. Diogo de Faria, 1.361 - Vila Clementino – São Paulo – SP – Cep 04037-000 Fone: 0xx11-3133-2699 – Fax: 0xx11-3133-1202 Rua Conde do Bonfim, 99 – 8ºAndar – Sala 804 Tijuca – Rio de Janeiro – RJ – Cep 20520-050 Fone: 0xx21-2565-7167 – Fax: 0xx21-2565-7516

internet: www.engemav.com.br

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-

e-mail: escritorio@engemav.com.br

CALÇADA SA• PROFILE

When forging new paths, count on the strength of Gerdau steel.

The strength of transformation.

Gerdau steel has the strength of transformation. Our steel shortens distances, connects people and generates collaboration. We recycle millions of tons of scrap metal to transform high quality steel products and continue to support a sustainable future.

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PROFILE • CALÇADA SA

IMM Impermeabilizações, Quality Since 1991 IMM Impermeabilizações has extensive experience in waterproofing and works with the largest construction companies in the industry.

We are at the forefront of this type of technology as we utilize state-of-art equipment.

The secret to our success is our dedicated team of employees and the excellent relationship we have with our clients.

We are proud to work with CALÇADA and thank them for the trust they have in our expertise.

IMM Impermeabilizações Ltda

Av.Evandro Lins e Silva, 840 - sala 901 - Barra da Tijuca - Rio de Janeiro - Cep 22631-470. Tels.(21) 2178-2333 / 2178-2355 - imm@immrj.com.br - www.immrj.com.br

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million Brazilian Reais ($1.5 million).

The complete construction project from start to finish is overseen and managed by Calçada.

Some technology and equipment is self-owned, some outsourced and raw materials are purchased from trusted partners and suppliers.

Each site has a mobile administration office, but work is coordinated from Calçada’s head offices in Barra da Tijuca, Rio de Janeiro.

“Our reaction to opportunity occurs in two stages. Firstly real estate specialists carry out surveys and analyses of potential locations.

These surveys include the commercial viability of the area and prospective market studies. Following agreeable results, the second stage is the purchase of the land, finalization of the plans and construction,” Matos explains.

Making it Big The construction industry, especially in Brazil’s state capitals, is highly competitive and Pictured: The façade of Vogue Square at night, offering a “life experience” with a mall, offices and fitness facilities.

POINTS AND PRIZES Calçada’s achievements have been formally recognized by international trading standards – testament to the ongoing pursuit of total customer satisfaction.

The Brazilian Federal Government’s Habitation Quality and Productivity Program (PBQP-H) officially approved the company’s practices in 2001. Three years later, in 2004, Calçada was certified ISO 9001 (Management Quality System). In 2012, it was awarded ISO 4001 for environmental management in construction projects.

Calçada also has numerous prizes under its belt: among them, 14 ADEMI (Brazilian Association of Directors in the Property Market) trophies, including Company of the Year in 2009.

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Calçada works with a specific market sector. Despite this, Administrative Director, Luis Carlos Matos points out that “even though the frontrunners are open capital companies, and Calçada is a closed capital organization, we compete on even ground.”

The proof is in the numbers: Annual growth averages 20 percent. Figures released by the company show total annual sales rising steadily 128 INDUSTRY TODAY

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from $23 million in 2006 to over $1 billion in 2014. From 2010 Calçada experienced a sharp increase in sales thanks to an increase in the number of projects. Matos, however, also attributes growth to the same essential characteristics: “Quality, punctuality and customer service that are a cut above the competition.”

Customer service extends to organized visits of the site at varying stages of construction. In order for the buyer to accompany his/her investment, three different open days with breakfast are offered where there is the opportunity to observe progress and meet with staff and engineers. The meetings are representative of Calçada’s hands-on, family approach to delivering a

specialist service with a personal touch. Customer satisfaction at open days is 83 percent.

Thanks to strong differentials and operation in the mid- to high-end markets, President João Paulo Matos is confident that Brazil’s faltering economy will not affect sales. “Our growth shows no sign of slowing down, we keep a

Pictured: A group of construction workers; below (left to right): Luiz Carlos Rio Tinto de Matos - Human Resource and Administrative Director, Marcia De Luca - Finance Director, João Paulo Rio Tinto de Matos - President; right:Graça Dezerto - Planning and Engineering Director, Pedro Manuel Rio Tinto de Matos - Director.

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DOUBLE CELEBRATION “When we assumed control of Calçada together some years ago, my brothers and I knew that we had a great challenge ahead of us.

Continuing the work of our father and founder of the company, José Carlos de Matos, we have consolidated Calçada as a driving force in Rio de Janeiro’s real estate business.

We are delighted to be celebrating 30 years of business, which coincides with our founder’s 90th birthday.

Looking to the future, I see bigger challenges: new markets to be explored and significant changes in Brazilian economics and local policies, which demand greater awareness and strategy from the civil construction. Thanks to our staff and customers who have contributed to our solid structure and our firm believe that we will continue to grow, raising standards in the industry.” João Paulo Rio Tinto de Matos, President of Calçada Empreendimentos. watchful eye on our sector to adjust launch and investment strategies accordingly,” he says.

From humble beginnings, Calçada has made it big. Building on a scale comparable to Rio de Janeiro’s leaders, it has grown by 1,150 percent in the last ten years without losing the closeness to its clients or its sensibility with the market.

As well as commitment to its clients, the company invests and participates in social and environmental programs in support of creating a better world.

As a result, the Calçada brand is a seal of respect – a guarantee for those in search of a secure investment.

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