Fabricator manufactures success on smart workplace practices
PEOPLE FIRST
When Dean Bamber received his master’s degree in forensic anthropology from the University of Alberta, his professors might have been forgiven for not predicting he would achieve future success as the owner of metal fabrication manufacturer. But in 1996, after serving with a UN team tasked with gathering evidence from the mass graves in Rwanda for the War Crimes Tribunal, he decided to try his hand at less painful fields of discovery.
In 2006, following a decade of experimentation that included working as a training analyst for the Workers’ Compensation Board (WCB), database designer for Stanford University and high-end bath and kitchen renovator, a family friend urged him to consider metal fabrication. “He said it was a good business to get into because there is ‘an instant market and massive demand – and in general, the margins in steel fabrication are not bad,’” says Mr. Bamber.
It proved to be wise advice. Air Arc Manufacturing in Edmonton has grown from $15,000 to $120,000 in monthly gross revenues in less than nine months of operation.
The company builds and installs transport equipment, largely for the oil and gas industry. Commercial and industrial construction products include handrails, stairways, walkways and custom fabrications for organizations such as Sobeys, Hampton Inn and Suites, and the Kinsmen Sports Center.
Fuelling the company’s growth is its practice of honouring delivery promises. The result: a steady stream of new customers and repeat business.
“We’ve met all of our promises for completion on very project we’ve taken on, which is not the norm. I’ve done virtually no marketing; all of our growth is due to word-of-mouth recommendations from happy customers.”
His work with WCB helped Mr. Bamber create a safe work environment, but it is a respectful relationship with his employees that enables him to attract and keep talented people despite a tight labour market. “I think we have a reputation for being a fairly sensible company to work for, and I get resumés all the time from people who want to work here.
Our employees have direct access to the boss – I listen to them, welcome their input and get their feedback on decisions.”
At many companies in the industry, he says, workers are treated as disposable. “I’ve heard horror stories about employees working for somewhere for six months, and the foreman still doesn’t know their name. They may make good money, but they don’t feel appreciated.”
In a tight labour market, says Mr. Bamber, it is vital to create the right culture and improve productivity by being on the floor with employees rather than in the corner office.
“I can train employees, watch out for safety issues and provide feedback. I can say please and thank you when providing direction. I’m setting the pace: everyone here is capable of completing a project in a timely way, but I can ensure they know what to do next and have everything they need when they finish a project. I can probably save eight hours each day that way.”
Enhancing productivity can also require counterintuitive sensitivity. “I’m flexible when our employees need time off. Employers often complain about that when it’s busy, but it’s short-sighted: in this market, an employee can quit at noon and be working somewhere else later that day.”
Losing a well-trained employee can have a devastating impact on the bottom line.
“Alberta businesses aren’t just competing with other Alberta businesses,” says Mr. Bamber. “There are manufacturers across Canada and in Texas, and their costs are significantly lower. Labour is the largest component of our manufacturing cost. If someone doddles on a project, the profit margin is gone.”
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Lean is a management philosophy that focuses on reducing process waste to improve customer value.
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