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At ICF Industries in Cass County, press brake operator Rickey Gudde worked recently on the production floor.
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Computer-guided lasers crackle as they slice into a piece of steel at ICF Industries’ new production facility. Across the room, massive punch machines penetrate metal sheets with pinpoint accuracy.
Although the Pleasant Hill firm has invested heavily in its plant and the tools of the trade, CEO Bob Krug said equipment isn’t what sets the company apart from other metal fabricators.
“We all have the same machinery,” he said. “It truly is our employees. I think it’s because they have ownership.”
ICF has been an employee-owned firm since a leveraged buyout in 1999. Employees own shares of the company’s private stock based on their percentage of the payroll and become vested after six years. They also are eligible for bonuses.
ICF serves about 70 clients in industries such as health care, lawn and garden, transportation, agriculture, recreational equipment and defense.
Krug, who has been with the company since 1988, has seen how ownership motivates his employees to pay attention to details as small as clicking off a light switch.
“The fact is that they do share in our profitability,” he said. “When you are an owner, I think there’s a lot more caring.”
Recently, a customer called on a Friday afternoon with a last-minute order needed by day’s end. Krug approached his employees with the request.
“They all said no problem,” he said. “Those guys worked until 8:30 on Friday night and a truck was sitting here, waiting to take those to the airport and to a chartered plane. That’s why we have companies coming back to us.”
ICF also has sought a competitive advantage by investing in new equipment and facilities.
In 2007, the company moved from Independence — it was formerly known as Independence Custom Fabricators — to an 89,000-square-foot building in Pleasant Hill. Renovating the vacant veneer plant presented challenges.
“It was pretty run-down,” Krug said. “(But) I could see the potential. We could make this thing work as a sheet metal shop.”
The additional space has allowed the firm to operate more efficiently and has given it capacity for larger projects. It also provided room for a painting operation — a process previously outsourced.
The company practices lean manufacturing and recently received ISO 9001:2008 certification. Krug said that standard is required to do business with many companies in the health care and automotive industries.
ICF has no shortage of competitors, ranging from another fabricator a few miles down the road to factories in China. Being stateside gives the company an advantage with fuel prices and lead time.
“If you are a company practicing lean manufacturing and just-in-time deliveries, if there is any glitch in the supply chain overseas, you could be weeks,” he said.
The 28-year-old company has about 75 employees and had revenues last year of about $10 million. ICF responded to the business downturn by laying off about a dozen workers, cutting pay and switching to a four-day work week. By fall, however, ICF had returned to a normal five-day schedule and was able to return to previous pay rates.
“We’ve weathered the storm,” Krug said. “We’ve come back and have had some really solid months.”
Driving the resurgence is the fact that recession-wary customers had finally depleted their inventories and needed to restock.
“Everybody was so afraid to buy anything, but now there is pent-up demand,” he said.
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