In December, IMEC co-sponsored a forum in Chicago that focused on strategies that are being undertaken by Illinois manufacturers to take advantage of emerging opportunities as the economy recovers. It featured a panel of manufacturing leaders, Selim Bassoul, CEO of Middleby Corp.; James Bodman, CEO of Vienna Beef; Janice Christiansen, CEO of J.C. Schultz Enterprises Inc./The FlagSource; and Joseph James Slawek, CEO of FONA International. The discussion was moderated by John Brandt, CEO and Founder of the MPI Group, which studies leadership in effective organizations. Brandt is an internationally recognized expert on manufacturing and technology and is former publisher and editor-in-chief of IndustryWeek magazine.
The group discussed plans for R &D and innovation, increasing inventory efficiencies in the supply chain, and hiring and training best in class workforces. Each expressed optimism about the future, but talked about the tough choices that they and many other manufacturing leaders had to make to remain viable during the recession, including reducing employment, deferring maintenance on key equipment and delaying investments in improving operational effectiveness. These manufacturers, however, are bucking the trend with their performance in the face of touch business conditions. Some highlights:
Bassoul was passionate about the role larger companies take in co-investing with their suppliers to improve performance. His company, Middleby Corp, is a leading developer and manufacturer of commercial cooking equipment and food processing/packaging equipment. He talked about the discipline his company exercised in cutting $22 million out of its production and operating costs. But he also shared details of his decision to invest funding and dedicating resources from Middleby to work with strategic suppliers to innovate and improve supplier processes. Bassoul believes that larger manufacturers can benefit by treating suppliers as partners, and his company’s recent growth is evidence of the effectiveness of the strategy.
Each talked about the increasing challenges in dealing with expanding government regulations. “Being compliant with all of the safety requirements, for example, requires us to spend a ton on training,” said Joseph James Slawek of Fona International, a producer of flavor systems for the food industry.
Bodman is CEO of one of the best known food brands in the United States. “People know us for the Vienna Beef Hot Dog, but we’re one of the largest picklers in the country,” he said. He described Vienna’s impeccable track record on food safety and expressed concerns about government involvement in verifying safe and quality food.
Christiansen of J.C. Shultz talked of her company’s efforts to diversify. “As a U.S. flag manufacturer, there isn’t a huge market for our product globally. We’re looking at other services we can provide and acquiring other products we can sell to new markets,” she said.
IMEC created a Recovery Readiness Center to help Illinois manufacturers capitalize on growth opportunities that are available in the improving economy. Contact us for a free Assessment and learn about other affordable resources available to evaluate current performance gaps, develop recovery plans, and receive technical assistance in areas such as quality systems, operating efficiency, and bringing workers up to maximum productivity levels.
Contact IMEC at 888-806-4632 or info@imec.org.
