Cabin Business

Recession pressures have businesses spanning the economy discovering new ways to do more work with fewer workers, cutting payroll for good.

Employers became leaner and more efficient during the third quarter of 2009.

Clint Johnson, a University of Central Arkansas professor of economics, said that because of, not despite layoffs,  productivity — output per hour of work — has jumped at the fastest pace in six years.

“Employers always try to counter declining sales revenue by substantial cost-cutting, both by layoffs — having fewer people doing the same work, boosting productivity — and by capital-for-labor substitution, replacing humans with machines or computers.”

In January,  a resource manager with Snap-on Equipment of Conway announced  that the Kenosha, Wisc.-based tool company would reduce its workforce of 220 due to “economic downturn.”

Since then, the company has worked hard to become a local lean-manufacturing success story.
Don Walchuk, director of business, said the company currently employs
164 workers, and the future outlook for the business is good.

“We don’t see anything in the near future that says that we are going to have a problem.  We’ve got our operation running smoothly and we’re waiting on the economy to recover.”

Walchuk said that in light of the economy, the company has taken the appropriate steps to keep as many people as possible employed by cutting back on expenses including travel and spending.

“Our senior management is very fiscally responsible, very forward-looking.  They are always concerned about employees and about layoffs.”

He attributed part of  the company’s continued success in lean manufacturing to the implementation of the concept of “continuous improvement,” a plan which focuses on managing costs and quality and ensuring that employees are properly trained and regularly evaluated.

The continuous improvement method impacts all individual responsibilities of the business, and uses the change concept despite the good and bad of the business.

“A big part of it is training.  We hold regular training sessions, both internally and externally. We keep a whole training staff on-site.”

Walchuk said that when layoffs were announced earlier in the year, communications between upper management and those on the line were critical.

“(The employees) need to feel like they are part of the process.  When something like this happens, communication is key. We let people on the line have direct, one-on-one conversations with senior management. They listened and let the employees offer their ideas.”

A continued investment in the Conway operation, he said, has also been vital to the on-going success of the company. Walchuk recently returned from a trade show in Las Vegas, where Snap-on was recognized by MOTOR magazine Top 20 Tools Award for a low-profile ratchet/socket set.  The set was chosen by editors as an innovative new product that helps make the jobs of professional shop owners and technicians easier and marked the third consecutive year that the company has received recognition among the Top 20 Tools. “You don’t get there without continuing to invest.”

Conway Area Chamber of Commerce President and CEO Brad Lacy commended the company.  “Snap-on has really pioneered lean-manufacturing in Conway.  They have done many things to keep the facility viable as the corporate office looks to consolidate their global footprint.”

The plant continues to remain in operation five days a week.

“We’re constantly evolving. Right now, we’re not looking at any more down-sizing,” Walchuk said.  “We’re trying to watch expenses and keep people employed.  Yes, we lost a small percentage of workers, but even one is too many.”