November 2008
Oklahoma Manufacturing Alliance President to Speak at November 12 OVF Luncheon
By Lori Williams email »
Manufacturers both large and small share common challenges: rising freight costs, stiff global competition, that pesky bottom line. But could they also share a common solution? Roy Peters thinks so. The President of the Oklahoma Manufacturing Alliance (the Alliance) recently made this bold statement: “I have yet to find a manufacturer of any size who wouldn’t benefit from the principles of lean manufacturing.”
“There are 3,300 manufacturing firms in Oklahoma,” notes Peters, “and the Alliance has helped hundreds of them implement lean manufacturing.” Muncie Power Products and Rosewood Industries are two prime examples.
Rosewood manufactures custom cabinets in the far eastern Oklahoma town of Stigler. True, it’s a sleepy little community, but the Rosewood employees don’t let any sawdust settle under their feet. “After implementing lean manufacturing principles,” notes Peters, “Rosewood reduced their processing time from 6 weeks to just one week.”
“That means there are happier customers as well as more customers.”
Rosewood employs 70 people in a town of about 2,700, which makes it the largest private sector employer in Haskell County.
Just 80 miles northwest of Stigler, another lean manufacturing success story is making headlines at Muncie Power Products. Known for their production of Power Take-Offs, Muncie had 200 employees when they began working with the Manufacturing Alliance five years ago. Today, they have less than 200 employees, but their production has doubled. Plus, as Ray Chambers, President of Tulsa’s Muncie Power Products states, “We use less space and maintain less inventory than we did previously.” And that’s not the whole story.
“Muncie is a large multinational company,” notes Roy Peters. “But the Tulsa-based operation is their most productive plant. That’s why some of the Muncie plants from around the world will be relocating their operations to Tulsa.”
Traveling from Stigler to Tulsa could be all in a day’s work for Roy Peters. But what about the other 3,298 manufacturing facilities in the state? Mr. Peters speaks glowingly of the Alliance’s support system:
“We utilize a network of third party service providers, who are either in the public or private sector,” he says. “Our fondest hope is that Oklahoma manufacturers would realize that we have this type of network.”
“That’s why I relish the opportunity to speak to groups like OVF.”
“No doubt there will be several third party service providers in the audience. Once those providers know what the Alliance does, together we can network with potential manufacturing clients.”
Such networking has far-reaching impact. Consider that 151,000 Oklahomans are employed by manufacturers. “This is critically important,” notes Peters, “because manufacturing jobs typically pay substantially more than other sectors, plus benefit packages are usually available.”
“We’re also a wealth producing industry. Agriculture, energy, and manufacturing are highly regarded as the three sectors that bring new money into the state.”
New money. It’s coming in from the Boca Raton homebuilders who order Rosewood cabinets. It’s also coming in from worldwide truck equipment manufacturers who purchase Muncie Power Products.
Roy Peters also sees more new money in Oklahoma’s future. “I believe that our state’s manufacturers should begin looking at diversification of product. It is a way to distinguish products that can compete with goods from other countries.”
“I recommend a very disciplined process that helps companies identify new products to be put into the marketplace.”
“For example, in December of 2007, the Alliance began working with Cookshack.” (Cookshack manufactures barbecue smokers in Ponca City.)
“We helped them identify two new products and set a release date of July 4, 2008. They met that deadline.”
“Then we met again on September 25 to identify more new product lines. They’re in the process of manufacturing those items right now.”
“The key is to work very rapidly,” says Peters. “That’s the discipline we try to instill in the company.”
“The goal is to grow the top line of the business while increasing the bottom line.”
November Video Presentation – Sam Stovall, Chief Investment Strategist, Standard & Poor’s Equity Research
Sam Stovall has prepared a recorded video presentation to the Oklahoma Venture Forum regarding the markets and other economic issues of today. Mr. Stovall was one of our keynote speakers during the 2007 Bricktown Capital Conference, and was declared an “honorary Oklahoman” at the event finale.
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Please join us for lunch on Wednesday, November 12, 2008, 11:45 a.m. at the Presbyterian Health Foundation Research Park Conference Center. The Presbyterian Health Foundation Research Park Conference Center is located at 655 Research Parkway, Suite 100, in Oklahoma City. For directions to PHFCC, please visit www.phfcc.com/directions.htm.
Non-members and guests please make reservations with Mindy Young, OVF Executive Director, at mindy@ovf.org or (405) 341-6545. The cost for non-members and guests is $35. Cash, check, VISA, MasterCard, American Express accepted at the door.
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Chairman's Perspective
Mel James
Dear Venture Forum Members,
What a pleasure it will be for me to introduce this month’s featured luncheon speaker. Roy Peters has been a stalwart for economic development in Oklahoma for a lot longer than I have known him.
Heading up any organization with the responsibility of working with manufacturing through the last handful of years was a monumental task. Roy and his staff have done a superb job in supporting this important state economic business segment resulting in impressive gains compared to some of our nation’s states. I believe we will all benefit from learning how the Alliance serves our manufacturing industry in bringing new concepts and innovative ideas to those at the operational level.
The Alliance’s mission of providing strategic assistance to Oklahoma manufacturers in helping them become successful innovators in the global marketplace certainly meshes with our mission in that we both have a goal of assisting the growth opportunity for Oklahoma enterprises.
By the way, I believe this will be the first time in the history of OVF that the Alliance has been a presenter.
We may also be experiencing another first in having a Sam Stovall provide OVF a short recorded presentation. Sam will be making comments about the U.S. and World economy plus answering a few related questions pre-submitted by OVF members.
Sam breaks tradition when considering the very old cliché that “if you lined every economist up end-to-end, they would never reach a conclusion”. If you were among those of us that were fortunate enough to meet and hear Sam at our 2007 Bricktown Capital Conference, you would know why I say this. Sam was going to try to set up a live telecast meeting but just couldn’t work it into his busy schedule.
By the way, Sam was made an honorary Oklahoman by Lt. Governor Jari Askins during his visit here in 2007. Thanks to a personal invitation by OVF Chairman Emeritus Bob Rader and Sam’s fondness he acquired for our state in his short first-time visit here, he will be back in Oklahoma November 20th and 21st. Sam will be the keynote speaker at the OSU Spears School of Business MBA Dinner. Kind of makes this old Sooner jealous.
Looking forward to a seeing you at our November luncheon.
Logan County Economic Development Council
By Lori Williams email »
Last year, one of this county’s museums drew visitors from 50 states and 34 foreign countries. For 21 years, its local theater company has played to sold-out crowds. This year, its schools scored well above the state API* average. Here’s one more hint: This same county is home to the largest historic district in the United States. Logan County is its name, and it’s no longer one of Oklahoma’s best kept secrets. That is, if Kay Wade has anything to say about it.
Fact is, she has plenty to say. After all, Ms. Wade has been the Executive Director of the Logan County Economic Development Council (LCEDC) since June of 2007. That role has allowed her to lend USDA monies to deserving local businesses and encourage the expansion of key manufacturing jobs.
But after speaking with Kay Wade, it becomes clear that promoting Logan County is not her job. It is her passion. Why else would she talk enthusiastically about raising three boys - and 60 sheep - on a Guthrie farm? By the way, the sheep had a stubborn habit of lambing in January.
“Yes, there were some frigid lambing seasons,” Kay recalls with a laugh. “But my husband and I never regretted relocating to Guthrie to raise our family. We love living here.”
Even though the boys – and the sheep – have moved on, Kay and husband Lamar are staying. (Lamar owns Wade’s Hardware and Supply in downtown Guthrie.) Kay, among other things, has a revolving loan fund to manage.
“The LCECD secured its first USDA loan fund in 1994,” notes Ms. Wade. “The one million was loaned out quickly, and a subsequent $750,000 was requested and received. Last year the USDA approved another three-quarters of a million dollars.”
“We work very closely with the bankers in Logan County, who often supply matching funds.”
“Of course the money has to be paid back, but the LCEDC has more flexibility than a traditional lending institution.”
Manufacturing jobs often benefit from such loan monies. Kay Wade is especially optimistic about a recent loan made to Zeco Machine, Inc. in Guthrie.
“The professional machinist who owns Zeco is a Guthrie native who’s been in the business for 20 years,” she remarks. “He needed a CNC lathe turning center.” It’s a serious piece of equipment that will return serious economic benefits to the community.
Executive Director Wade also speaks with pride about other Logan County businesses: Wee-Boos in Guthrie manufactures toy boxes shaped like sports balls. Just east of Guthrie, Environmental Management, Inc provides hazardous cleanup services to communities across the United States. Guthrie-based Midco Fabricators, Inc. makes pressure vessels for the oil and gas industry. Then there’s Autoquip Corporation, where hydraulic material handling equipment is manufactured.”
“Autoquip sells a regular line, but they also do a lot of custom building,” notes Kay. “For example, they designed a movable stage for Michael Jackson and customized a lift for a California gentleman who needed more storage space for his multiple Mercedes.”
Fortunately, space is not lacking in Logan County. Ms. Wade predicts expansion at two prime locations: the Guthrie Edmond Regional Airport and the Guthrie Plaza at Highway 33 and I-35.
“The airport already has an industrial park, two high-tech aviation companies, and 105 planes based at the airport” notes the LCEDC Director. “But there is room – and demand - for much more. We have a waiting list of 60 people for hangar space.”
“The Guthrie Plaza couldn’t be more ideally located,” Wade adds. “There are hotels, restaurants, and a travel store there, but what is lacking is retail development. USDA loan funding could assist in such projects.”
Retail outlets are needed to provide economic stimulus. Yet, come Christmas, there are still ample reasons to visit this historic area. “Guthrie lights up the day after Thanksgiving,” remarks Wade, who recommends the Victorian Walk (Dec 13 and 20; call 405.282.1947 for details) and the Pollard Theatre’s production of the Territorial Christmas Carol (call 405.282.2800). “The Dickens adaptation has played to sold-out crowds for 21 years,” she notes.
Though the holidays are busy, Guthrie also draws in visitors year round. Consider the Frontier Drugstore Museum and Apothecary Garden. (Free admission; call 405.282.1895.) Last year alone it drew tourists from every state plus more than 30 foreign countries. Kay Wade explains the attraction this way: “This is not a drugstore museum. It’s a DRUGstore Museum. It houses 20,000 rare artifacts from all over the country.”
“People are intrigued to see firsthand how the Indians and pioneers medicated themselves.” (Read the labels carefully and you might see cannabis listed.)
“The Apothecary Garden (no cannabis here, though) features a collection of medicinal plants, herbs, shrubs, and trees. Even today, at least 50% of modern pharmaceuticals are derived from plants.”
Record numbers of people are visiting Guthrie, but there is another side to the story: People are also staying. “Logan County has so much residential development,” notes Wade. “Within the last five years we’ve seen record growth in southern Logan county and around areas like Crescent, Cashion, and Mulhall.”
“People are becoming aware of the quality of the Logan County schools. APIs* are well above average. The schools are small. In fact, in some of the districts, it’s like sending your kids to private school.”
That used to be the best kept secret of Logan County.
*Academic Performance Index
For more information on Logan County Economic Development Council, please visit www.logancountyedc.com.
OVF members, send us your news!
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November 12, 2008
Cedar Plank Glazed Salmon
Roasted Potatoes
Fried Okra
Spinach Salad
Peach Cobbler & Cookies
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November
OVF Luncheon
Wednesday
November 12, 2008
PHF Conference Center
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December
OVF Luncheon
Wednesday
December 10, 2008
PHF Conference Center
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2009
Bricktown Capital
Conference
October 26-27, 2009
Cox Convention Center
Mindy Young,
Executive Director
P.O. Box 20209
Oklahoma City,
OK 73156
405.341.6545 tel
888.522.6170 fax
mindy@ovf.org
www.ovf.org
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Officers and Directors 2008-2009