Past Winner Stories
Mid-West Metal Products Co.
As the third generation in this family business, Steven Smith,CEO of Mid-West Metal Products (MWM), has watched and learned from his predecessors. While staying true to the sheet metal and wire fabricating business that was its foundation, the company has grown and adapted as the client’s needs have changed. Originally a switch box manufacturer in the 1920s, the company adapted to canning racks during WWII, trash receptacles and eventually pet cages/homes. Today, 80 percent of the company’s sales are to the pet industry.
According to Smith, approximately 14 percent of dog owners use a crate for training. Many veterinarians recommend crate training. Their company, Pet Homes, isn’t solely focused on dog owners. Cages are used for a variety of animals:birds, cats, ferrets, rabbits and other small animals. Crates represent safety for animals. They also provide ventilation for the animal and visibility for the owner. “This is a curve we’re following,” Smith said. “More people are becoming comfortable with crate training and that’s good for our business.” MWM keeps abreast of these trends while also focusing on the educational efforts through marketing.
Indiana manufacturing has taken its share of hits and MWM is no exception. The Far East has proven to have a low cost supplier advantage. Their wages are lower. Direct labor costs range from $.40 to $.50 per hour. To eliminatedirect labor in the Pet Home manufacturing process, MWM installed four robotic cells. Fifteen robots were used in the four cells. Each robot eliminates the need for a direct labor person – a savings of 15 laborers per shift or 45 laborers per the three shift operation. “Manufacturing companies who boast about quality are the ones who have the most automation,” Smith said. This has held true with the automated robotic system. If all of the parts are not precisely positioned in a robotic cell, the sensors prevent the cell from operating. If process cells experience readings that exceed normal variations, the cell will cease to operate until the problem is resolved. “The sensors catch things that humans miss,”he said.
Other challenges added to the mix. The largest Pet Home cost component is the cost of wire and China has a tremendous competitive cost advantage. MWM needed to maintain its low manufacturing cost, high product quality and great customer service while also taking advantage of the lower wire costs in China. After a lengthy search for an appropriate partner, an MWM office was opened in China. MWM’s strict quality standards are maintained and the product is being shipped directly from China to customers in the U.S., Europe and Australia. MWM still maintains a warehouse in Muncie, IN to handle emergency orders.
As the third generation, Smith has witnessed numerous changes in the business. He’s proud of the flexibility the company has shown. “People are naturally resistant to change, yet our people have embraced it,” he said. “They’ve shown remarkable adaptability. Part of our success is that we all trust each other.”
Pet Homes is MWM’s primary product line, making up approximately 80 percent of the company’s business. The remaining business comes from manufacturing component parts for other sheet metal and other wire products such as the welded wire mesh grids that are made for box springs in the bedding industry.
According to Smith, approximately 14 percent of dog owners use a crate for training. Many veterinarians recommend crate training. Their company, Pet Homes, isn’t solely focused on dog owners. Cages are used for a variety of animals:birds, cats, ferrets, rabbits and other small animals. Crates represent safety for animals. They also provide ventilation for the animal and visibility for the owner. “This is a curve we’re following,” Smith said. “More people are becoming comfortable with crate training and that’s good for our business.” MWM keeps abreast of these trends while also focusing on the educational efforts through marketing.
Indiana manufacturing has taken its share of hits and MWM is no exception. The Far East has proven to have a low cost supplier advantage. Their wages are lower. Direct labor costs range from $.40 to $.50 per hour. To eliminatedirect labor in the Pet Home manufacturing process, MWM installed four robotic cells. Fifteen robots were used in the four cells. Each robot eliminates the need for a direct labor person – a savings of 15 laborers per shift or 45 laborers per the three shift operation. “Manufacturing companies who boast about quality are the ones who have the most automation,” Smith said. This has held true with the automated robotic system. If all of the parts are not precisely positioned in a robotic cell, the sensors prevent the cell from operating. If process cells experience readings that exceed normal variations, the cell will cease to operate until the problem is resolved. “The sensors catch things that humans miss,”he said.
Other challenges added to the mix. The largest Pet Home cost component is the cost of wire and China has a tremendous competitive cost advantage. MWM needed to maintain its low manufacturing cost, high product quality and great customer service while also taking advantage of the lower wire costs in China. After a lengthy search for an appropriate partner, an MWM office was opened in China. MWM’s strict quality standards are maintained and the product is being shipped directly from China to customers in the U.S., Europe and Australia. MWM still maintains a warehouse in Muncie, IN to handle emergency orders.
As the third generation, Smith has witnessed numerous changes in the business. He’s proud of the flexibility the company has shown. “People are naturally resistant to change, yet our people have embraced it,” he said. “They’ve shown remarkable adaptability. Part of our success is that we all trust each other.”
Pet Homes is MWM’s primary product line, making up approximately 80 percent of the company’s business. The remaining business comes from manufacturing component parts for other sheet metal and other wire products such as the welded wire mesh grids that are made for box springs in the bedding industry.