|
Founded in 1976, Enginetics Aerospace Corporation is a jet engine component manufacturer, based in Huber Heights, Ohio. In 2010, Enginetics was acquired from its founder by Morgenthaler Private Equity. The CEO, Wim Huijs, helped orchestrate the sale, and was retained by the new owners. Wim has a degree in Mechanical Engineering, and over 25 years in aerospace, half in The Netherlands, and half in the US. Prior to joining Enginetics, he was Director of Sales & Marketing at Unison Engine Components in Connecticut, and had been General Manager at Douglas Machine in Cincinnati. Wim graciously agreed to share his management philosophy and ideas on running aerospace businesses.
Q: How has the recession impacted your business, and what have you done to stay ahead?
A: I came on board just after the recession had hit. The company was not profitable, and no action had been taken to address the recession. Fortunately, we had a good mix of military and commercial business, and we weren't hit as heavy as the rest of the industry. Less than two months after I joined the company, we did a 20% RIF to "get well" again, and the people were expecting it. We made other changes too, changing job releases to relate better to customer orders, reducing inventory, and within a few months, things started to turn around. The owner had tried unsuccessfully to sell the business, and the improvements we made allowed him to put the company back up on the market much sooner than he'd thought he could. This resulted in the sale to Morgenthaler in May of 2010.
Q: To get and keep good people, what is the most important organizational strategy you use?
A: It starts with putting in the proper time and effort up front to get a higher success rate, and this works at any level. At the operator level, we give people a test first, then put them on a machine in the shop to load a tool or pull up a program. We only hire after we've seen what they can do. In management, we define precisely what we are looking for, and go through a process of phone, face-to-face and team interviews, making sure the person is a fit with the culture, team and objectives. To retain good people, we train them to the right level, keep them challenged, promote from within, and if they show drive and ambition, give them additional assignments that go above and beyond basic expectations.
Q: What do you do to keep your team motivated in tough times?
A: The key is communication. Aerospace has had 3 down cycles in 25 years, and we've never been better positioned for the next upturn. The major OEMs all have new products, and demand will be strong in the recovery. We keep everyone apprised of where we are at on a monthly basis.
Q: What is your expectation for the economy in the coming year?
A: I don't expect a double dip recession. Although the economy is hardly growing in the US, or even in Europe, there is larger growth in other parts of the world, like the Far East. Enginetics Aerospace expects 5-10% growth this year, and 15-20% next year.
Q: Productivity has been very high in the US. Will hiring stay static, or will employment pick up soon?
A: There is a lot of talk in the US about job creation to stimulate the economy, but I think this idea is backwards. Companies hire to fulfill needs, not to stimulate the economy. When sales increase, companies hire to fill the increased demand, not the other way around. Since the summer of 2010, we have built back to 95% of our level before the RIF, and I anticipate 7-8% more next year, all to keep pace with increase in orders.
Q: What is the secret of your success? What personal strategies have worked best for you?
A: I have always had a strong interest in the industry, and been very focused. I can use this experience and attitude to motivate others and get them excited about the business. I really respect people, want to motivate them, and have a keen interest in them, no matter what their level is.
Q: What is the biggest mistake you ever made in business? How does it affect your thinking or actions today?
A: My story is more about a transition I went through, a behavior more than a mistake. My family had an industrial business, and from the time I could carry a broom I was involved in the business. This gave me the motivation, drive and attitude in business. When I became an engineer, I wanted to go above and beyond right away, and was very driven. It gave me the opportunities to grow in my career. As a leader and a manager, an older worker held a mirror up for me about 7-8 years ago. I had assumed that all the people working for me had to have the same attitude and work ethic as I had. This older gentleman told me I was doing a good job, but not everyone would perform to that same level. He said, "You will have to slow down a few gears so you don't lose people behind you." That was a defining moment. I learned a lot, and it affected how I managed from then on.
Q: What does the future have in store for you and your company? What are your business plans?
A: With the transfer in ownership of this company in May 2010, the new equity owner and I put in place a solid plan to grow the company 2x in 5 years. We have done some rebuilding, including new people in the management team, and currently reposition ourselves on the production side, with new philosophies, like the Theory of Constraints. Our business will have better flow, less WIP, less inventory, better on-time deliveries. When the industry increases demand, we will be ready to deliver.
Q: What advice do you have for business leaders today in your sector?
A: I think the biggest issue for industry in the US is to be more willing to take a global view and take on competition, rather than just protect what we have here. In global competition, people find different ways to do business, and adapt to stay in the game. We have to be more innovative, take risks, do the R&D to develop new products, and find ways to capitalize on opportunities everywhere. US companies have to be open for a changing game, and truly believe they can succeed by competing globally. Offense is the best defense! |
