Bill Hewgley, president of Metalworking Solutions, beamed like a proud father as the forklift operator slowly pushed a new 13 1/2-ton $500,000 metal-cutting laser up the ramp into his building.
"I had $300 and a wrecked 1964 Ford when I married my childhood sweetheart," said Mr. Hewgley. "This feels a lot like that."
The laser, which can cut thicker metal than Mr. Hewgley's existing laser, will help the company ramp up production to meet expected demand, and broaden the range of products the company will offer.
"Everybody's held off on buying everything because of this recession, but when the economy starts up again we're going to be ready to help, and we will be able to respond even more rapidly to demand," said Mr. Hewgley.
He started Metalworking Solutions with his own money three years ago in an attempt to leverage 40 years of steel industry knowledge into a profitable enterprise. Operating by referrals and without a marketing or advertising budget, Mr. Hewgley said his company has increased revenue by $1 million each year. He projects another $1 million in growth for 2010.
"What we really were after was to bring state of the art technology to the marketplace, but do business the way it was done 30 or 40 years ago where a handshake meant more than a contract," Mr. Hewgley said. "We found that people were really hungry for the type of relationship where they got the very best of the capabilities, but they also got the very best of relationship building, honesty and integrity."
He started in the steel business 40 years ago at the American Manufacturing Co., working in the store fixtures department.
"I turned it from the smallest division to the largest," said Mr. Hewgley.
Mr. Hewgley said manufacturing His on the verge of a rebound.
"We kind of feel the surge is coming, people have depleted their inventory and are going to need more," Mr. Hewgley said.
His second in command, Nick Burrows, said the company is ready to meet demand. Mr. Burrows said he started at the company as an intern, fell in love with manufacturing, and has been working to improve efficiency ever since.
"A big part of it is lean manufacturing, just in time shipping, and the fact that we turn inventory over every eight days," said Mr. Burrows.
Mr. Burrows said that while the industry standard per-employee company revenue is between $125,000 and $150,000 a year, Metalworking Solutions makes $200,000 per employee each year due to advanced manufacturing processes.
"This caliber of technology is usually gobbled up and reserved for Fortune 500 companies," Mr. Burrows said of the new laser. "We try to get the most versatile and flexible equipment that we can, so we can manufacture the widest range" of products.
The company produces components for a wide range of products including store fixtures, electrical components, road paving equipment, machine parts, prison door components, boats, radiator cover shrouds and industrial computers, according to Mr. Burrows.