Craig Guttmann,

President, Algood Caster Innovations


The Catalogue hasn’t Croaked

Given that it’s 2018, you might think we are cutting back on printing catalogues. After all, at over 200 full colour pages, they aren’t cheap to produce and, oh, by the way, hasn’t everyone stopped reading catalogues and is now buying everything they need online? Guess again. Far from having croaked, demand for our printed catalogues has never been greater and, according to most reports, we are not the exception. So, what’s going on? Here’s what I think are six reasons that catalogues are very much alive and kicking.

  1. Holding is believing. There is still something unique about holding a catalogue, feeling the texture of the paper and its weight in your hand. You can lick your finger to flip the pages and fold over the corners of the ones you want to remember to revisit. The catalogues that are dog-eared or well worn are clearly identified as the ones used most often. Also, casters and wheels are a high-touch business. There is no better way to understand the mechanics of a caster or appreciate its aesthetics than by holding it in your hand. The tactile nature of catalogues is a great complement to a tactile business.
  2. Catalogues add convenience. In most ways, catalogues are more convenient when sourcing casters. Every one of our caster series comes with a matrix of options – wheels, bearings, brakes, stems, etc. The end result is thousands of possible configurations per series. The reality is that it’s way easier to assimilate information by running your finger along a page in a catalogue and then using a pen or pencil to circle the specs that are most important. On top of that, it’s much easier to compare the features of different casters by flipping between pages in a catalogue than it is to flip between the pages of a website. Whether you’re a corporate engineer or a distributor trying to find the best caster for your customer, a printed catalogue has advantages that can’t be matched online.
  3. Catalogues are more personal. Our customers have told us that there are limits to the usefulness of a website and, at a certain point, they really want the option of having an in-depth conversation with one of our customer service reps. They want to be able to have a catalogue in hand as they work with a member of our team to find the right caster.
  4. Catalogues brand. The graphics, imagery and colours of a catalogue produce impressions that can’t possibly be re-created online. Print’s unique communication opportunity is why many companies are investing heavily in catalogues and, interestingly, Sears brought back its Christmas Wish Book having shelved it six years ago. Our catalogue makes an important statement about our values and priorities. It’s an important part of how we communicate our brand.
  5. Catalogues are reality. Not every one is living the life of an Apple ad, looking at messages on their watch, searching the web with their phone, sourcing products on their tablet, and making purchases on a laptop. In fact, there are millions of people who want to visit a showroom, touch and feel a caster and then leaf through a catalogue to find the configuration that best meets their requirement.
  6. Catalogues can be up to date. We are continuously updating our catalogue as new products and releases become available. Digital printing allows us to put the latest possible information into our customer’s hands giving them all the benefits of a printed catalogue combined with the latest information.

The first thing on my to do list after finishing this blog post, is to check on the status of a large run of our printed catalogues. Clearly, Algood and the caster industry aren’t saying farewell to the catalogue anytime in the foreseeable future.

What do you think?
Are printed catalogues an important part of your business? Do you rely on printed catalogues? I’d love to hear your thoughts.

9 comments on “The Catalogue hasn’t Croaked
  1. Ross Herron says:

    I definitely agree in the need for the distribution of catalogues. Websites are often poorly created or difficult to
    weed through. Being someone that is a bid older (55) than some other Product Managers, I am a visual person.
    I consider myself to have a good memory. I scan through catalogues that I receive, and often see products that
    I was unaware that a company offered. Good recall, then helps to direct me accordingly as product demands
    As a side point, some of your training/educational blogs are quite informative.

  2. Rick McLellan says:

    Hi Craig,
    As you know, I’ve been around the industry for a long time. I agree, I keep the Algood catalogue on my desk and reference it daily.

  3. Mark Wilson says:

    When can I have one?

    • Craig Guttmann says:

      Hi Mark-

      We are meeting a week Monday and I will have new catalogues with me. Looking forward to seeing you!


  4. Wendy Cornish says:

    Hello Craig
    I agree, I actually needed to show a salesman a picture in your catalogue today and I find it easier then going on the website.

  5. Brent Tuttle says:

    Big fan of having a hands on catalog.

    Would luv to have more of those mini catalogs you printed at one time.

    • Craig Guttmann says:

      Hi Brent-

      Thank you for your feedback. We will be publishing the mini catalogues in the summer.


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Regardless of NAFTA, I’m optimistic

Over the past few months as negotiators from the U.S., Canada and Mexico have been feverishly discussing the future of the North American Free Trade Agreement (NAFTA), I have been conducting business as usual speaking to and meeting with our many customers in the U.S. And my expectation is that whatever the outcome of the NAFTA negotiations, I will continue to meet the needs of our American distributors and manufacturers. You may think I’m naïve but I believe I’m just being a realist and that over a century of friendship won’t be erased in the course of 6 months.

The truth is that the U.S. and Canada are likely the world’s strongest trading partners. In fact, Canada is America’s largest trading partner next to China. Notably, the U.S. and Canada are relatively equal trading partners. The U.S. overall trade deficit with Canada is only 2% or $11 billion. To put that in perspective, the U.S. trade deficit with China is a whopping 60%. Here’s another statistic to add some context to the depth of the trading relationship. The trade across the Ambassador Bridge, between Windsor, Ontario and Detroit, Michigan, alone is equal to all trade between the United States and Japan. In addition, the strength of the Canada-U.S. trading relationship is far from a new phenomenon. It has been in place for decades. While the trading relationship has been marked by all kinds of tariff and duty disputes, it has withstood the test of time.

Perhaps even more important than the financial benefits, the U.S.-Canada relationship is based on shared values. We take some of those for granted but our common respect for individual rights and a belief in democratic government create a powerful bond. Both countries foster and thrive on the competitive marketplace. In addition, there is a shared emphasis on worker health and safety as well as a growing awareness of the ecological impact of industry in both countries. I know that when I visit customers and colleagues in the U.S., these common beliefs pave the way to our business discussions.

The Canadian and American manufacturing sectors have a particularly strong connection forged in large part on the automotive industry. These days, manufacturers in both countries share a common interest in bring business back to North America. In fact, the reshoring movement is gaining traction as customers tire of long lead times and the uncertainty associated with overseas shipments. Greater emphasis on supplier agility means that inventories change over faster and customers are looking for the project focused shorter runs that can best be accommodated by manufacturers in Canada and the U.S.

Also, the physical closeness of the two counties can’t be discounted. That proximity creates opportunity with most goods being moved in a matter of days – and sometimes hours.

So for all of these reasons I remain optimistic. I can’t predict what the outcome of the NAFTA negotiations will be or whether NAFTA will even survive. However I am certain that, based on the strength of our time-tested relationship, our shared political and economic values and our common interest in the revival of the North American manufacturing sector, we will continue to do business and create opportunity with our customers, colleagues and suppliers in the U.S.

One comment on “Regardless of NAFTA, I’m optimistic
  1. I share your beliefs and hope for common sense to prevail.

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I’m suffering from Extreme Optimism (EO)

As this year winds down and we set our sights on 2018, I realize that I’m suffering from a condition that I haven’t experienced in a long time. It’s one that admittedly can have a pretty dramatic downside, but right now it feels damn good. I’m talking about EO – or extreme optimism – and let me put aside my wood-knocking superstitious side for long enough to tell why I believe 2018 will be a great year for Algood.

Really there are three reasons for this bright outlook.

1. The economy is very healthy

Most economic indicators in Canada and the U.S. are strong and trending positively. Interest rates are still quite low and very stable. Not surprisingly then business investment in machinery and equipment is up significantly and unemployment rates are falling. GDP in both countries is growing. Markets are at all time highs as investors express their confidence. All of this is confirmed by what I see and hear when traveling to meet with our customers. It’s clear that businesses are investing significantly in new equipment and new technology – and that investment will have a positive ripple effect throughout 2018.

2. The North American caster industry is strong

Here’s a statistic that ought make you sit up and take notice. According to the Reshoring Institute, through the first three quarters of 2017, approximately 180,000 jobs have been transitioned to the U.S from locations outside of North America. There are many strong economic factors driving that trend. My interactions with customers indicate that a major dynamic is that offshore production is subject to long lead times, making it harder to meet deadlines and tying up capital that could be used to improve local productivity. Customers are becoming increasingly demanding and simply won’t tolerate waiting months for product that may or may not match specs. In addition, a number of market segments experiencing significant growth are ones that use casters in their final products.

3. Algood is in a very good place

As consolidation continues in the caster industry and caster products increasingly become a commodity, Algood’s craftsmanship and expertise become more valuable. It takes true Castersmiths to really understand a customer’s needs and then design and create the product to meet business goals. Having a fully integrated manufacturing facility means that we can develop customized solutions while being nimble enough to meet deadlines and budgets. In addition, by putting the customer at the centre of everything we do, we are positioned to leverage our design and engineering capability, innovating and developing new products. In 2017, we introduced almost a dozen new products or configurations and that trend will continue into 2018. We will be investing in our own operation next year with increased automation, product development and a powerful new website.

So, there are my reasons for extreme optimism. I look forward to continuing to meet the needs of every one of our customers by offering unparalleled service combined with the wisdom and knowledge that comes with almost 50 years of success.

On behalf of the Guttmann families and all the staff at Algood, I wish all of our distributor partners, customers, suppliers, colleagues and friends a Happy Chanukah, Merry Christmas and a very Happy New Year which brings you much health and happiness.


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Our No BS Automation Plan

Automated robotic welding at AlgoodAdding another robotic welding station to our plant has made us really think about automation.

Our approach to and experience with automation actually runs contrary to much of what you might be hearing in the news. First, automation has not reduced the number of people we employ. It has increased it. In addition, complete automation is not the be all and end all of manufacturing and is not, in any way, our goal. We are very aware that automation can dramatically change the nature of a business and have developed an automation plan ensuring that we continue to meet our customers’ needs and that we remain the kind of manufacturer we want to be.

We added our second robotic welding station for a number of reasons. The most obvious is that it adds to our capacity. Unquestionably we can now produce more casters – and get them out the door faster. We have also improved the quality of our casters because the automated process yields a better weld and does it consistently.

Interestingly, the robotic welder didn’t replace anyone or reduce the number of our employees. In fact, we hired an additional staff member to run the welder. In addition, we maintain our manual welding station that is manned by a full time licensed welder. That allows us to produce shorter run or custom manufactured items in a reasonable timeframe.

Our experience is that automation has necessitated hiring additional staff. As was the case with welding, automation often requires adding workers with very specialized skill sets. On top of that, our increased capacity leads to more sales and the need for more personnel in customer support and administration.

From a bigger picture perspective we’ve spent a lot of time thinking about how automated we want to be. While automation increases and stabilizes productivity, it also locks you in. The cost of automation can be astronomical its return on investment can only be realized by producing large volumes of single SKUs. It’s a template-based process and that’s not the manufacturer we want to be.

Rather we ‘ve opted for a semi-automated strategy that allows us to be nimble and responsive. There are over two million caster configurations represented in our catalogue and it’s that ability to meet the precise needs of our customers that accounts for our success. As opposed to some suppliers who try to shoehorn customer requirements into the closest available product, at Algood we pride ourselves on producing casters that are an exact match to what our customers need. What’s more is that we can do that in very large quantities with delivery dates that outpace offshore and other fully automated producers. That creates a very unique value proposition for our customers.

It’s not that we’re dragging our feet on automation. It’s quite the contrary. We are well aware of what technology can offer our business and have been innovative in adopting it. But I have seen many suppliers become a victim of their own automation, transforming their business into something very different than they imagined.

Our considered approach to automation will allow us to stay true to our strengths and principles – and allow us to continue to use our expertise as castersmiths to meet the needs of our customers and the industry.

Let’s Talk!

Please get in touch and let me know what you think about our automation plan. If our approach to automation make sense to you, let’s talk about how we can do business together and become your partner in success.

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$601,000 is a lot of money. And while it has nothing to do with our sales or profit at Algood, it has everything to do with our bottom line. You see, if the only purpose in making money is to increase the value of a company or the wealth of its owners, we’ve missed the point. That’s why my brother and I, following in the footsteps of our father, just helped to raise $601,000 in support of special education programs for children in our community.

Over 25 years ago, my father became a supporter of educational programs for kids with special needs. It’s a cause that was very dear to my father and although none of his kids required any related services, he worked tirelessly and personally raised hundreds of thousands of dollars. When he died 19 years ago, we founded an annual golf tournament in his memory to make sure that his legacy of support lives on. While the tournament has grown and been transformed, the winner’s cup is still lovingly named in memory of my parents Max and Sheila.

There are hundreds of children in the community who learn differently than most other kids and they require additional resources, materials and expertise. It would cost individual schools hundreds of thousands of dollars to meet the needs of these children. The reality is that, on their own, the schools simply couldn’t meet that challenge and scores of children would be denied the future that education brings. It’s only with additional financial resources that these children will reach their goals and achieve success.

It’s tough to raise the money but we have done it to give back to the community and to invest in its children. Over the years the tournament has raised millions of dollars. And this year, we are so proud to have surpassed the amount raised in any previous year.

In addition to this initiative, Algood supports a whole range of causes including hospitals, healthcare organizations and schools.

For us at Algood, success isn’t just measured in profits. That’s because we’re not a corporate subdivision and our deep family values remind us that it’s what you do with profits that defines you. When you use your success to make a difference in the world, you add to a much more powerful bottom line.

Pictured above is (l to r) my brother Sean, tournament co-chairs Ron and Perry Steiner and me.

4 comments on “$601,000!!!
  1. Rob Taylor says:

    Congratulations Craig!

    Not only a wonderful story about the cause you support but also a tribute to your parents.

    Well done and thanks for sharing.

  2. Burt Serfaty says:

    My both kids benefited greatly from those contributuons. They both had learning challenges and most were overcome while they were at Shearim, a sorely missed institution that your family supported. Thanks for helping my kids and all the others and continue to support children with special educational needs. Congratulations Craig and Sean!

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Apple Envy

Apple was in the news again this week with the introduction of new iPhones and Apple watches. The fact is that I’m an Apple addict. I use a Mac, I have an iPad, iPhone and an Apple watch. This isn’t some mindless infatuation. I use Apple products because they are brilliantly designed, incredibly functional and increase my productivity, helping me be more successful. Apple is also an inspiration for me. I admire the way they lead, innovate and design. The truth is that my ultimate goal is for Algood to be the Apple of the caster industry. Here’s how I think we might be able to do that.

Innovation is so important to us that we changed our name two years ago to Algood Caster Innovations. That kind of sets expectations and takes being a “me-too” company off the table. Rather, we are constantly pushing the boundaries on new product development. Last week, we introduced our new iLock mechanism for our smaller light duty series casters. We could have just miniaturized the existing design but rather we chose to re-think and consider what would make the product more useful for our customers. As a result, we extended the brake pedal to make it more accessible, added a lip for easier engagement and improved the teeth so that it will lock both hard and soft wheels. We also recognized that design without performance is superficial. We extensively tested the new mechanism subjecting it to 5,000 cycles of engagement and re-engagement. The result is not just a new product but new thinking.

Really, there are two aspects to design in the caster industry. First, you have to develop products that satisfy customer’s needs and specifications, while meeting the highest standards of performance. Our internal design and engineering team is relentless in pursuit of perfection. There’s no limit to the number of prototypes we will create to make sure we get it right. But here’s what’s most interesting. We have all the most up to date technology like 3D printers but that’s not what gives us our edge. Instead, it’s the fact that every team member feels a personal commitment to creating the very best products possible.

The other aspect to design is aesthetics and we understand that casters can and should look good. That’s why we were the first manufacturer to put hub caps on casters. We understand that casters add to overall visual appeal of any unit or fixture and reflect on the company whose name is attached to it. Design inspiration can come from all kinds of sources which is why I frequently go to trade shows for other industries and read (on my iPad of course) a wide range of magazines and journals.

One of the keys to Apple’s success is what they call unboxing – the experience of unpacking your new iPhone or Mac. We know that in the caster business, the joy of unboxing is opening a carton to find exactly what you ordered in perfect condition. That may sound simple but over the past few months I have heard countless stories of shipments from caster suppliers that contain substituted or defective products. What makes matters worse is that these suppliers are totally inflexible and refuse to take product back or issue refunds. Stories like that tick me off because they reflect badly on the industry but at the same time I understand that we differentiate ourselves by delivering the right products on time and on budget.

Customer experience is also determined by the quality of the contact with our customer service reps– and we make sure that every one of them are keenly aware of the impact they can have and that they are prepared for every call. Time and time again, when I travel to visit with our customers, I am thrilled to hear about their positive experiences with our CSRs.

Being the Apple of the caster industry may ultimately be an impossible dream. But by constantly focusing on those elements that have made Apple so successful, we will continue to do an unbelievable job of meeting our customers’ needs and be a caster manufacturer that is constantly improving. And there’s nothing wrong with that.

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Hub caps on casters? How did that happen?

RollX_WOWWhat does being the first to bring a product to market say about a company? Some might say that it’s creative or innovative. Others might conclude that it invests significantly in R&D. Still others might see that company as highly competitive. All of those things might be true, but from my perspective in the caster industry, being the first to introduce a new product means that you have powerful relationships with your customers.

All of the industry-firsts that we have developed were in response to customer requirements. For me, the most impressive example of that was when Algood was the first to put hub caps on casters.

At the time, thread guards were all the rage. Everyone was putting them on casters to protect them from dirt and debris. But they weren’t very attractive. We had a customer in the store fixture business that was working on a new display that needed to be totally outstanding. In fact, he told us he wanted a wheel on the casters that would make people say, “WOW!” So, we set out to satisfy our customer and break new ground.

The inspiration came, as it often does, in a very ordinary moment. I was in the car with one of our sales reps and noticed the great looking wheels on the car beside us. “Holy crap!” I said. “We should we put hub caps on those casters and make them look as cool as that car.”

It had never been done before which meant we had to do tons of research. I went to the SEMA auto products show and came back with catalogues and magazines. Our design and engineering teams explored all the possibilities. We developed a number of designs and processes and worked with the customer to narrow choices. In the end, we came up with an industry-first, created a gorgeous caster and had a customer who was simply ecstatic.

The other great thing about this project was that it demonstrated how casters can contribute to the overall aesthetic of a product. So often casters are an afterthought. We’ve seen many situations where casters aren’t even included in the product specs. Then we get a panicked call from a buyer, engineer or product manager either needing casters in a real hurry or having to meet some unusual spec – or both. It was wonderful to work with a customer who saw the caster as an essential part of the product.

Of course, other caster producers tried to copy the WOW hub cap but none of them matched the quality and attention to detail. We are used to having our products copied. It goes with the territory. On more than one occasion, I’ve been in offshore manufacturing facilities and have seen exact replicas of one of our proprietary products being made. It’s frustrating for sure, but I prefer to see imitation as the highest form of flattery.

The truth is that, in some ways, we are always creating new products. With our integrated manufacturing facility we have almost unlimited resources at our disposal. We routinely modify existing products with new moulds, dies and stampings. Our 3D printing station allows us to go beyond visioning and closely examine prototypes. Whether it’s custom stems, modified top plates or unique braking systems, we are always innovating. These products and components may not be as sexy as hub caps, but they are just as much a result of our dedication to meeting customer requirements.

Product innovation also makes our casters less of a commodity. It’s great for us to be able to quickly satisfy buyers with “off the shelf” products that can be delivered quickly. On the other hand, our customers know that we have the unique capability to create configurations that don’t exist in any company’s catalogue.

Ultimately being the first to market with a product is a result of putting your customers first. When you value your customers, you’re prepared to innovate to meet their requirements. In turn, they value your commitment and creativity. When that happens you’re both number one.

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respect5Lately, I’ve been thinking a lot about Aretha Franklin’s classic hit Respect. That’s not just because I’m an R&B fan, but because I’ve been on the road talking to customers and if there’s one thing they’re not getting from so many other caster manufacturers, it’s respect.

Our customers, like most buyers of casters and wheels, often find themselves in the middle. Distributors are sandwiched between meeting the needs of their customers and negotiating with manufacturers. Corporate buyers are trying to meet the competing demands of finding the right caster product to satisfy the engineering team, while negotiating delivery dates to keep production on target and getting pricing that will make the finance department happy. And all of that’s not easy.

Against that backdrop I can’t believe some of the horror stories I’ve heard in the past few months. Customers are promised delivery on a particular date and make commitments to their own customers or internal departments based on that promise. And then, lo and behold, the product arrives weeks late, in many cases with no advance notice. Some times hidden delays are revealed with amazing excuses. “Well, you know those casters need lathing and our CNC equipment broke down, so we can’t possibly deliver on time.”

From what I heard, it’s common for shipments to arrive with product that doesn’t meet the spec provided or that is obviously sub-standard. And, if you’re in the middle, now what do you do? It seems that the corporate caster consortiums don’t want to respond to complaints. So you have to scramble to find other solutions –fast.

Customers – whether distributors or corporate buyers – don’t need that kind of aggravation and they shouldn’t have to put up with it. Doing business with suppliers shouldn’t be a guessing game. And what’s really incredible is that in many instances customers have been using these suppliers for decades, having given them tens of thousands of dollars in business.
So much of this is a result of offshore manufacturing. The necessary lead times are enormous and quality often suffers. I’ve seen first-hand the production standards of most offshore suppliers and its not pretty. On top of that, local suppliers often need to finish goods that arrive from offshore producers. That just magnifies the delays.

What bothers me most about all this is that it’s exactly the opposite of the way my father – and my mentor – taught me to do business and the way we conduct ourselves at Algood. We don’t want to be adversaries with our customers, lying and making excuses. We want to help them serve their many masters by ensuring they meet their deadlines. We’re not looking to make a quick buck. Rather, we want to establish relationships.

But we’re also not looking for an easy ride. We want to be challenged. Our fully integrated manufacturing facility provides us with great capabilities but sometimes we have to be tested to know what we really can do. We have just received two orders to produce over 20,000 casters in less than two weeks. It’s far from beyond our ability but we can only prove that to our customers – and ourselves – when being asked to stretch. What’s for sure is that you have to be a genuine North American manufacturer to get that done.

Ultimately, we want to earn the trust – and business – of our customers. We want to be there front and centre, helping our customers to be more successful and seeing their businesses grow.

Aretha said, “R-E-S-P-E-C-T, find out what it means to me.” We know what it means to respect our customers and we’re proving it every day.

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Warriors, Cavs and Casters

BBall_CasterAs a huge NBA fan, this is an exciting time of year for me. The NBA Finals are an opportunity to see the best of the best and even if the last two teams standing was a foregone conclusion, we are still being treated to some amazing basketball. The lessons to be learned from basketball extend well beyond the court and are a guide to how we make decisions at Algood. Here are three examples.

1. Strategy in basketball has taken a major shift in the past few years. Having analyzed data, teams determined that the three point shot was a highly effective and underutilized offensive strategy. Three point shots create the potential for 50% more points on every play. To exploit that potential, many teams began looking for players who could make a higher percentage of three point shots and re-training existing players to do the same. Along the way, some teams (like my home team Toronto Raptors) have not adapted and are unable to reach that elite level.

The dangers of not innovating are just as prevalent in the caster industry. After the economic downturn in 2008, we recognized that one of the keys to thriving in manufacturing was that we had to make new product development a priority. R&D became a strong focus. Now, we are introducing multiple new products as well as product enhancements every year. That, along with some amazing new products that will be unveiled shortly, is ensuring that we have a leg up on our competition but more importantly, we are better able to anticipate and respond to the needs of our customers.

2. Inasmuch as three pointers are creating more potent offenses, the Warriors are beating the Cavaliers just as much because of their defense. The lesson is clear. To win, teams need to be outstanding on both sides of the court.

The way I see it, Algood’s offense is our front line – our outstanding sales representatives and customer service team. These are knowledgeable and experienced men and women who are bringing our extensive product line to our customers and helping them find the ideal caster and wheel solutions. And they do a great job. But at the same time we need an outstanding defense to guarantee the effectiveness of our sales and support efforts. Our design, engineering and quality control teams ensure that we have the right product for the right challenge, that it will work flawlessly and that it is delivered as ordered and on time. That combination of offense and defense is generating more and more wins for us at Algood.

3. For teams to adapt to the changing game while being equally effective on offense and defense, they need the right players. While last year’s Warriors team was stellar, the addition of Kevin Durrant has made them virtually unbeatable, within one game of going without a loss in the playoffs. And while Lebron is always the focus of the Cavs, there is no question that without his teammates like Irving and Love, they wouldn’t be as good as they are. Both the Cavs and the Warriors have devoted a huge amount of thought and resources in assembling the ideal roster.

One of the enduring lessons I learned from my father is that our staff is our greatest asset – more valuable than any piece of equipment or machinery. We make sure that we have the right people in the right roles. That means holding out for the perfect fit when hiring, being prepared to move people into positions that are better suited to their talents, and investing in training to add or enhance skills. Our employees are truly a team. They depend on each other and value each other. Each of them contributes importantly to our success and is deserving of our respect and appreciation. There is no doubt in my mind that the Algood team is the greatest reason for our success.

So while I’m glued to the TV, watching to see whether the Warriors can complete the sweep, I’ll be thinking about how Algood can continue to be an elite team of castersmiths, providing unbeatable service to our customers and becoming the champions in North American caster manufacturing.

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Numbers or Gut?

Data-intuition-better-decisionsWe recently added a 1,000-ton Cincinnati injection moulding machine to the equipment in our manufacturing plant. While this fits nicely into our new “Think Big” mantra and will have a significantly positive impact on our capacity, it came with a six-figure price tag. That’s certainly an amount that makes you think before you buy. The interesting question is do you make a decision like that based on data or on intuition?

The numbers certainly played a huge part in this major capital investment. Our capacity utilization rate was running high. In other words, were coming close to maxing out on our production capability. A good rate is 75-80% and even though we are running on a 24/5 production schedule, our rate was higher than what’s optimal. In a way that’s good thing because it means we are manufacturing lots of casters and wheels but we didn’t want to jeopardize our proven ability to deliver high-quality product on time.

This new injection moulding equipment will allow us to produce wheels and caster components 20% faster and will increase our productivity by 15-20%. In addition, we will be able to manufacture bigger wheels faster – like our RollX™ wheels with 3” tread widths.

Another advantage to the new machinery is that it now gives us more options in terms of the production equipment we use for any particular project. That, in turn, allows us to find the plant-wide equipment usage plan that will guarantee deadlines and product standards.

So those are the measurable components in the decision-making and honestly that got me about 75% of the way to yes. The other 25% was intuition. I’ve often said that business is, in many ways, legalized gambling based on hunches or best guesses.

In this case, part of that was listening to what our customers had to say about their experience with us – and our competitors. I spend many weeks every year on the road meeting face to face with customers and I continue to hear their frustration at dealing with offshore suppliers. My sense was that enhancing our North American manufacturing capability would better satisfy customers.

Through my meetings with our salespeople and my first-hand interactions, we were getting very positive feedback to our casters and wheels. The fact that customers were increasingly happy with Algood product led me to believe that we would make use of the increased production capacity this new equipment would bring.

In addition, I am optimistic about the economy and the continued demand for product manufactured on this side of the ocean. The political climate and relate considerations also factor into the decision.

So, how will we measure the ROI on this new equipment? How will we know if the investment is leading to success? Our capacity utilization and productivity rates will be good indicators. Increases in the number of moulds that we have on hand as well as the amount of injection moulding material we use will also be good determinants of success. Overall sales growth is always a healthy sign. Aside from all the usual metrics, for me the greatest measure of success will be if we need to buy yet another machine to continue to meet demand.

As a business owner, investments in equipment that come with price tags in the hundreds of thousands of dollars are enough to keep me awake at night. Inasmuch as we all like to believe that we would make these kinds of difficult decisions with perfect logic, the reality is that the best decisions are made on the basis of both numbers and gut.

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