The need for growth--of the employee

A fabricator once told me that his job shop had to grow so that it could provide further opportunities to employees and generate additional profits that could be reinvested into the business. For him, it was grow or watch the company die.

That’s a pretty strong statement, particularly for those operations that serve customers in stagnant or dying markets. (If you want a firsthand account of how companies in coal country are transitioning to a new reality where coal is no longer a favored energy resource, read this contribution to thefabricator.com). But capitalism does not reward the slow and the reluctant. Companies have to adapt to changing market conditions on a regular basis if they are to adapt.

For many metal fabricators, the focus is on sales. They try to bang on more doors, attend new trade shows, and even set up contract relationships with sales representatives that might have the right connections. The focus on the top line makes sense in a lot of ways, but it also can be a major stress point for those organizations where the sales responsibilities fall on a few shoulders.

On the other hand, there are organizations that focus on its employees and find that company growth is a natural extension of that. The employees want to do what’s best for the company because the company has done right by them. When they feel that way, the customer is also being taken care of in a positive way.

This type of environment can be found at Ace Metal Crafts, Bensenville, Ill., where CEO Jean Pitzo and the management team work hard to develop a trust-based culture. The metal fabricator’s mission statement touches upon “unleashing the potential” of individual employees, which is a pretty bold statement for an industry that is almost consumed by lead times and delivery dates.

If employees are able to feel totally comfortable and develop a trust in what the organization is doing for them, they develop a greater awareness of what their contributions mean to overall organizational success, Pitzo explained. They aren’t afraid to say, “I don’t know.” Knowledge is exchanged freely, and no one is trying to withhold secrets to protect their job.

That’s why Ace Metal Crafts focuses as much time on training for soft skills, such as training the trainer and leadership development, as it does on teaching machining and welding skills. The company needs critical thinkers, not just button pushers.

“I don’t look at it as an expense. I look at it as an investment,” Pitzo said.

It’s no coincidence that a representative from Fortune 500 company recently toured Ace Metal Crafts seeking to learn how the shop floor works to eliminate waste in a high-mix, low-volume manufacturing environment. The answer to such efficient production likely lies with the individuals involved, not a work process that can be duplicated and implemented elsewhere.

Meanwhile, Ace Metal Crafts continues to win new business, including an expansion of opportunities from the current customer base. It’s not hard to believe that when people like doing business with you, they tend to do more business with you as the relationship grows.

In short, a metal fabricator can grow the business by growing the employees. It’s a much nobler mission than just chasing dollars.