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Home My WebLink AboutThe Goderich Signal-Star, 1979-04-26, Page 23Corporation of the TOWN OF GODERICH DAYLIGHT SAVING TIME starts SUNDAY, APRIL 29/'79 at 2:00 A.M. TURN YOUR CLOCKS AHEAD ONE HOUR v Number two -aiming for number one GODERICH SIGNAL -STAR, THURSDAY, APRIL 26, 1979—PAGE 3A People - not graders - Champion forte The following is reprinted from the April 9 edition of Western Ontario Business. BY KAREN HUMPHRIES While many aspire to it, few Canadian companies can claim the phenomenal growth experinced by Champion Road Machinery of Goderich in the last 10 years. A company of in- ternational stature — it is rated number two worldwide in the motor grader field and sells equipment to over 70 countries — Champion group sales have in- creased from $6 million in 1969 to over $100 million last year. With completion of an order of 525 graders for Turkey, Champion will have filled the world's largest grader order. "Most people wouldn't believe our growth," says Bruce Sully, who has been at the Champion helm during this period of dynamic growth. He is quick to add that Champion's success is the result of a lot of hard work and "several millions" being poured into technical research and development and a total reorganization of the firm in> the last five years. Champion which has been operated by the Sully family since 1945 when Mr. Sully's father, Air Vice -Marshall John A. Sully, saved it from bankruptcy, has no plans "" to slow progress. "Nothing is slow around here — I believe .. we're number two in the world and we're aiming for the number one spot," Mr. Sully said. "We have 15 percent of the U.S. domestic market = and that's not to be sneezed at.. Now we're trying .to capture a larger share." First major step towards that goal• was construction of a $5 - million ;plant in Colum- bia, South Carolina which went into production last August. The 180,000 square foot plant is now producing one grader a day and will soon move up to two. Within a few years production should reach the same level as the 200,000 square foot Goderich G plant at 61/2 units per day. Production of graders in the U.S. opens a whole new world for the com- pany. Mr. Sully says, because American government bodies, which form 70 percent of the market want American-made products. The move also makes Champion eligible to take advantage of U.S. tied -aid ventures with developing countries. But Champion is not limiting "'expansion horizons to the North American continent. Plans are in,the works for the establishment of an assembly plant in the Far East within the next year and a half. Champion hopes to capture a major portion of the Australian market — it already is well established in New Zealand. And that's only the if you're NEW IN TOWN and don't know which way to turn, call the .LTD hostess at 524-9676 You'll be glad you did. beginning, Mr. Sully says. Champion would like to build assembly plants in all the major trading areas of the world. The home plant in the quiet lakeside town of Goderich seems somewhat dwarfed by Champion's -blossoming on the world scene, but Mr. Sully s.ys Goderich, although it may not always be the largest plant, will remain the keystone of the operation. To help the firm adapt to rapid expansion ex- pected in the next ,few years, Champion em- barked on a total restructuring of operations about five years ago. A corporate group format was adopted to insure professional guidance in each facet of the company's operation. Corporate vice- presidents with expertise in engineering, management, finance, marketing, ad- ministration, industrial relations and corporate development sit on a Bruce Sully policy committee to develop long-range planning strategy. Champion Road Machinery Sales, established in 1948 to service the Ontario market, has been revitalized. It is now operated by Mr. Sully's 28 -year-old son Mark from a new building in Goderich. A new company, Gearco Ltd., was formed last year to handle cut- ting of gears and design and manufacture of transmissions and power trains for the company. Another sully offspring, Mike, 2;4, heads that operation. Champion got into the manufacture of gears by accident about four years ago. Its supplier went out of business and the company had 30 days to set up the new operation. Gearco now does about 20 percent of its business with companies other than Champion — and is aiming at about 80 per- cent outside business within the next few years. Research and development efforts have been stepped up to meet increased demands for new technology. In fact, Champion has developed such a high degree of expertise in hydraulics and tooling that its ser- vices are in demand by other equipment manufacturers. Goderich will remain th•e centre for technological develop- ment, Mr. Sully said, adding that some of the machine tools at the plant are worth half a million dollars a piece. Relations with the company's 1,400 have been given. increased priority, Mr. Sully said. Television sets have been installed in the plant making it possible for the president to address all 1,100 Goderich employees at one time. The sets are also used to broadcast, safety and other in- formation programs during coffee breaks. "People power" is an important strength of the company, Mr. Sully says. Without positive "people input" Champion would not have experienced the success it has. - In order •to service clients all over the world, Champion has developed an international training Domtar's salt interests exceeded '77 profit levels Significantly improved results in 1978 were reported last week by Alex D. I Hamilton, President and Chief Executive Officer of Domtar Inc., at the Corporation's Annual Meeting. He told shareholders that all. Domtar's business lines, with the exception of pulp, had exceeded profit levels set in 1977. ..Resultsachieved by fine papers, newsprint, packaging, par- ticleboard, salt, lime, lumber and gypsum operations in Canada and the United States were outstanding., Mr. Hamilton reported. He attributed the results toimproved production efficiency and to increased volumes stimulated by the lower valued Canadian dollar which also increased Domtar's revenues from export sales. He estimated at roughly $12 million the exchange rate benefit to Domtar in 1978 compared with 1977. Mr. Hamilton stated that the Corporation's policy is to maintain its senior management positions in Montreal. "We at Domtar," he added, "are optimistic that ways will be found to accommodate the stresses and strains which exist in the Canadian con- federation... Canadians have been successful in renegotiating regional positions in respect to authority and power and as a whole have developed a country which is the envy of the world. Where is there any evidence that. isolation would permit a better deal?" The Domtar President expressed concern "at the lack of regard by the Provincial Government for the realities of a successful and healthy .enterprise contributing to the economy of the Province of Quebec." The comparatively higher taxation levels for senior managers and the restrictions on admission to the anglophone school system, he stated, "work to restrict the talent available to national and international companies situated in Quebec and particularly Montreal.... If Quebec -based en- terprises are to compete successfully in the North American scene, they must have unrestricted access to the total North American pool of talent." Mr. 'Hamilton described the MacMillan Bloedel - Canadian Pacific Investment - Domtar take-over in late 1978 as a "matter of history." He expressed agreement with a statement by MacMillan Bloedel President Calvert Knudsen to the shareholders of that company to the effect that any further tran- saction between MacMillan Bloedel and Domtar could onlx be by mutual agreement of both companies and with the concurrence of the appropriate provincial governments and federal authorities. Describing as "a "pressing problem" the number of Domtar's senior executives who will retire in less than five years, Mr. Hamilton t.pPUM ,, els p a X ,c {. .� 1t N ATTENTION VETERANS Ex -Service Mee and Women and Depeedeets THE ROYAL CANADIAN LEGION SERVICE BUREAU OFFICER Mr. Clara Wall Provincial Service Officer London, Ontario will be visiting in the area. VAnyone wishing Information or assistance regarding war disability pensions, treatment, allowances, etc., Is reglfested to contact the service officer, or secretary of the local branch, whose name appears below, not later than April 30th, 1979 to arrange an interview. d• HAROLD YOUNG Service Officer PHONE 524-7145 announced a number of executive changes aimed at ensuring "top-quality management suc- cession. '- The Domtar President expressed confidence that factors within management's control such as capital in- vestment, technology, product development and ,rationalization and in- creased operating ef- ficiencies will help to offset the effects of in- flation, which he characterized as the "number one problem", fluctuations in the ex- change rate and lower levels of economic ac- tivity. He reported that an analysis of the per- formance of Domtar's domestic business lines for the three years ended December 31, 1978 showed reduced margins for all major operating groups. Domtar's in- creased profits, he noted, resulted from increased volumes, with improved efficiencies being more than offset by the in - school at the Goderich plant. The school uses audio visual aids and training manuals developed within the company. Champion has adopted a rather unique form of advertising in the last few years. Instead .:q,f spen- ding millions on in- stitutional advertising as do some of its com- petitors, Champion has embarked on a program of bringing the clients right to the factory to see the operation first hand. Through another company under Cham- pion's corporate um- brella, Business Air Services, more than 1,000 people a year are flown to Goderich by executive jet. A tour through the plant is worth more than any advertisement, Mr. Sully says. Just the fact that 80 percent of the product is manufactured at the plant — raw steel comes in and a grader comes out — is enough to impress most. For those customers who cannot tour the plant, Champion has developed a series of film presentations. Six basic graders are manufactured in Goderich from which over 50 different models can be proddce•d. Engineering of the graders makes adapting the machinery for dif- ferent jobs a relatively simple matter, Mr. Sully said. The greatest achievement so far is the 100 ton 'Big Mudder 100' creased cost base. u -which, with its 24 -foot • "The point here,' 1l r. blade is u4ed in coal Hamilton stated; "is that mining land -reclamation the market is regulating work, copper mining and the margins' quite ef- at the tar sands projects festively for our Canadian business. in Alberta. It's worth about $500,000 Sully says and does the work of quite a few other machines put together._ Glasses can change Looking ' over Cham - your 'personality - if you pion's growth in the last empty enough of them. 34 years — from being the Anstett Jewellers LIMITED 11 ALBERT ST., CLINTON 482-3901 OPEN WEDNESDAYS For Your Convenience HOURS: Monday through Saturday, 9 a.m.-6 p.m.; Friday nights till 9 p.m. Keep a man with EXPERIENCE working for you in Huron -Bruce • Business Experience • Agricultural Experience • House of Commons Experience 17 On May 22 RE-ELECT McKINLEY, Robert E. PROGRESSIVE CONSERVATIVE Pubtlshad by tho Huron•Oruco PC Association P+O smallest grader manufacturer in North America and probably in the world, to its current position, Mr. Sully credits hard work, competitive prices, professional marketing but above all a quality product. "Champion happens to come out as the cheapest and best grader to own and operate in the world." SAVE ENERGY and Insulate U.F. Foam 8. 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