HomeMy WebLinkAboutThe Goderich Signal-Star, 1985-02-27, Page 6•
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e new 700 seees road.grader in n wed last year h
By Dave Sykes
When the revamped 700 series motor
graders > rolled efE: the assembly line in
August it marked the beginning of a new era
for Champion Road Machinery of Goderich.
The new series of grader represented the
visible evidence of years of preparatory
work and planning,, , sweet ping changes in
corporate philosophy, a renewed dedication
to research and development and a com-
mittment to excellenceland viability.
In short, the company reaffirmed it§ goal
of establishing itself as a major manufac-
turer and exporter of road graders.
Not since the company phased out produc-
tion of a range of heavy equipment in the
1950s and dedicated itself to the manufac-
ture of road graders, has there been such a
metamorphosis. But a declining world
market has dictated new rules in a new
market, in which only the competitive will
survive...
Champion has always been the major'
'employer in the town of Goderich and until
the recession of the early 1980s it employed
more than 1,000 people. The number of
employees hasbeen reduced significantly in
both the Goderich and Columbia, South.
Carolina plants.
But there is a new direction for Champion
and its employees and as marketing ser-
vices director, Bill Metcalfe explains, there
is also a sense of purpose.
"There has been a substantial change not
only in our product, but we have entirely
restructured the way we do business," Met-
calfe said. "In August we cut over to full
production of the xiew series of grader."
The new series of Champion grader, while
perhaps less flexible in terms of available
options, is much more competitive.
Previously, the company catered to the
customer and customized the grader to an
incredible extent.
Offering over 110 power train combina-
tions along with several engine options, it
reached the point where the company was
unable to command the price required to
offset the cost
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rain, as 60 per cent, the business of
building graders became more price sen-
sitive, more corripetitive.
To wing or even compete on the world
market, Champion'had to continue to build a
quality product while reducing costs.
Champion's commitment to improve
quality while remaining competitive in a
shrinking marketplace prompted the initia-
tion of a three-phase program aimed at
design and quality improvement and cost
reduction. Ostensibly, the recession forced
the comapny to react to market conditions
by refining its existing product while
developing new and better componentry
at the same time, -- --- •- - -
- - -The company restructured -and -simplified
its grader lineup to streamline the manufac-
turing operations here. Undoubtedly, one of
the company's major steps was the decision
to offer a standard make of engine, Cum -
.mins. •
With the introduction of a standard engine
Champion also unveiled its revolutionary
powershift transmission, developed and
tested at Gearco. The new 8400
transmission, a direct drive, fully sequen--
- tialerpowershift ith-eight-speeds-forward-
and four reverse, is now the , only
transmission supplied with Champion 700
series graders. ,
The transition came about in the past year
as the company reacted to world conditions
in a proactive manner. Once structured for
growth, the company had to trim to be price
competitive with out depreciating quality.
The company had no option but to discard
its practice and penchant for customization
and sell for less while reducing the Complex-
ity of the final bill offered to the customer. A
tall order and one that has a history of
development leading up to it.
The grader now produced by ChaFt pion is
"substantially different" according to Met-
calfe and the company has been more active
in research and development and desi n
than ever before.
"The machine is different now and com-
paring a grader over the last two years
there is very -little -the -same -on any -major -
component. It is simply a better engineered
and finished product."
The Champion road grader is enjoying a
high degree of acceptance, and two major
components, the revolutionary transmission
developed and tested at Gearco and the
grader cabs, have played a role.
With dealers around the world, Champion
now relies heavily on the foreign market,
exporting 75 per cent of its products to 85
countries.
The Champion road grader of the 1980s is
a substantially differeal product than its
predecessor. It is the most modern grader
available and is far ahead of the competition
with respect to design and engineering.
It isnt just physical or cosmetic changes
to graders that's apparent, but the manner
in which the company conducts business has
also radically changed.
It was the company's ability to adapt and
react to the the marketplace that has been
its biggest asset and ally in the turbulent
world of the earth -moving industry.
More than just a refining of the finished
product, the changes at Champion now
reflect a new attitude, a new commitment
and a new sense of purpose.
Employees now have a better
'o1400 r . eater 'g" ;;g
The company had to change
the way it conducted
business to survive
Tie revamped Champion 7Z series of motor grader is enjoying a high
degree of success in both domestic and foreign markets. Exporters to
more than 85 countries around the world, Champion has radically chang-
ed both its product and the way in which it does business. Before the new
product line was introduced last August, the company's overseas sales
force got a hands-on demonstration at Champion's test site., A 'standard
engine, the best cab offeredand a revolutionary transmisslbmi'`lleveloped
and tested at Gearco, are features that have re-established Champion as
a quality grader manufacturer. (photos by Dave Sykes)
understanding of the direction and focus the
company is taking and everyone, from top
management to assembly -line worker, is a
more informed employee, Metcalfe explain-
ed.
"The lines of communication have been
shortened and now there is a small group
making the 'important decisions," he said.
"We have the most extensive training pro-
gram that the company has ever engaged in
and we are just beginning now, to see that
system in action.
The metamorphosis has been a slow -and,
at times, agonizing process, but a necessary
one. One that may have firmly entrenched
the company as a scrapper and battler, and
a survivor in a shrinking marketplace.
S
Ostensibly, one of the major reasons for
company's success, while others around
them have floundered, is its ability to com-
municate, both internally. and to the
customer. That communication has taken
the form -of video presentations for potential
customers, service and training instruction
for customers via video and the weekly in=
ternal communication vehicle, NewsBreak.
The importance of that comrnitment to
communication cannot be downplayed.
It's ability to communicate was one of the
company's major assets and one that nur-
tured a stronger sense of security and direc-
tion.
Owned by the Sully family -of Goderich, a
biographical sketch of the'company in a ma-
jor Bicentennial publication, Loyal She Re-
mains, boasts that the company's success
can be attributed to its relationship with
employees and aggressive marketing tac-
tics.
Early in the 1980s, the company in-
itiated a profit-sharing program and that
was later augmented with a- Quality Circle
Program, ensuring that the employees had
not only a voice in the day-to-day operations
of the company, but a financial stake as
well.
It's a gamble that will pay dividends; but
it's also an investment in the company's
employees.
Champion Road Machinery Ltd. of
Goderich is now doing what it does best,
simply trying to make a better road grader
at a competitive price.
The recovery from the near-delibitating
depression may not quite be complete. It
has been a painfully slow process but at
Champion the wheels are in motion that
could set the company back on itsfeet, and
brushing the recession dust off for good.
Only.. tjxne will utli:mately judge the sue -
cess of the recent measures instituted by the
company but surely history will respond in
mod to a company and its employees who
made the tough decisions when required to
ensure job security*and the viability of a
company that means' a great deal to a small
community.
But at Champion, where , at one tiane,the
workplace was rife with rumors of layoffs,
firings and closures, the future is in sight,
And the future looks good. -
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