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It Straps On Covington-based manufacturer It Straps On back on track post KatrinaIt takes a certain kind of business owner to want to open shop in South Louisiana. The threat of hurricane season alone keeps most potential transplants at bay. But according to Steve Smith, owner of It Straps On, all one needs is a little sense of humor and an adventuresome spirit. The Chicago native first came down to the Bayou State in 1970, employed as a manufacturing representative selling industrial products to the region. Smith left the company to open his own stainless steel strapping business in 1994. Five years later, with a small cash flow to support a growing business, Smith took a LEAN manufacturing course with the Manufacturing Extension Partnership of Louisiana (MEPOL). This course pointed out different ways to “trim the fat” off his production line, thereby making his production line more efficient. Last year Smith contacted MEPOL to set up an on-site lean training course for his entire facility. He was able to obtain funding for the entire staff to attend through a Small Business Employee Training (SBET) grant, offered through the Louisiana Department of Labor. Once funding was approved, the lean manufacturing training and implementation consisted of:
By implementing the lean manufacturing processes, the small business has reported amazing success. Says Smith, “The results have been tremendous. Since the initial training session I attended in 1999, we have experienced an increase in sales every year, and have a much higher than average profit margin for 2006. We could not be where we are today without the lean training.” With the efficiency of his production line in place, his entrepreneurial spirit took him to the World Trade Center in New Orleans for their luncheon series. After a year of attending these luncheons and learning about the exporting business, Smith signed up for a trip to Costa Rica with the U.S. Department of Commerce. “From that first trip, we landed a large client. It’s been a whirlwind of countries ever since.”With an international footprint of 16 countries, and a growing percentage of sales attributed to overseas clients, Smith is hoping to help other Louisiana manufacturers get into the exporting business. He’s been tapped to join the Industrial Advisory Board (IAB), and is eager to share his ideas with others around the state. “I feel very passionately about exporting. It is critical to invest in research and development, and to have a plan for future growth. Addressing future foreign competition with innovations leading to higher productivity will now be America’s salvation,” Smith comments. He continues, “I have no advanced, formal education. We only have thirteen full-time employees. If we can start exporting and create an international client base, so can other small manufacturers.” Day to day business became particularly rough after Hurricane Katrina ravaged the area. Luckily the company’s building didn’t suffer much structural damage, but the effects were felt through the supply chain. Outgoing shipments were initially sent through Lafayette. In order to get back into production, the company quickly located and purchased a large generator and spent 14 hours on the road accumulating enough diesel to run it until electricity was restored. The company was without telephones for a month. Mail delivery was delayed for several weeks, and purchase orders were forwarded to a fax machine in downtown Covington. The company trudged through it all, and now, business is better than ever.So good in fact, that Smith felt the business was outgrowing its space. Feeling the need in the near future to expand the facilities, Smith again contacted MEPOL for their expertise. UPS Professional Services, one of MEPOL’s third party consultants, conducted a facilities expansion assessment in order to determine the spatial needs of the business. MEPOL lined up funding through the hurricane relief grant for this project. “As it turns out, we didn’t need to build an entire new facility. We’ve reconfigured the layout of our operations to be more productive and efficient, and we’re adding on to the existing office space. The assessment saved us hundreds of thousands of dollars that would have been spent building a new facility and moving.”“I view MEPOL as the conduit for information on manufacturing, on marketing, on training, on research: the list could go on. They’ve directed us to multiple programs that have assisted us in researching new innovations to improve our product line, saving us the costs up front, which have resulted in millions of dollars in sales. The 5/8 inch fasteners we produce, one of our top selling products, was a result of SWTAAC (Southwest Trade Adjustment Assistance Center) funded research. MEPOL helped us procure those dollars, too. This addition to our product line allowed us to capture one $700,000 contract and several smaller accounts. MEPOL’s resources are invaluable to small businesses in the state.” So what does Smith have in store for the future? For starters, he’s forecasting a 32% increase in business for 2007, and has set a goal of increasing his export sales by 50% in the next five years. “Exporting is wide open for us,” he says. “Worldwide business is the future. We’ve got to be as productive as possible to get it. And,” he adds with a smile, “a little adventurous. International sales are fun…developing a world-wide supply chain is very exciting.” Manufacturing Extension Partnership of Louisiana (MEPOL) is a non-profit dedicated to the advancement of manufacturers in the state as part of the national MEP network. Some of the programs offered include lean manufacturing, grant procurement, polymer technical assistance, marketing, and information technology. MEPOL is a University of Louisiana at Lafayette program. Founded in 1994, It Straps On manufacturers stainless steel fasteners and bands for a variety of applications. Located in Covington, Louisiana, It Straps On maintains an international footprint, exporting to sixteen countries worldwide. These 5/8 inch fasteners were the product of SWTAAC funded research.
It Straps On banding and fasteners. |
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