Featured October 2006

The TPR interviewed Percy Vreeken, General Manager, at TransNav Worldwide. Based in New Baltimore, MI, TransNav is a company founded on global principles, specializing in injection molding and tooling for the automotive industry.

What is your company niche, and what does your company do that is notable, unique or different?

The TransNav Group of companies primarily provides engineering, design, prototype, production tooling and production with or without assembly to the automotive industry in owned and joint venture facilities throughout key world market areas. Main products manufactured include interior and functional “under the hood” and exterior components. Key expertise includes in-house tooling capabilities and an international footprint. We have very low overhead and offer competitive advantages to our customers because of our international partnerships and in-house services. Tooling development and engineering services done here at our U.S. headquarters and then moved to our Mexico facility after all the approvals are obtained from the customer has been a tremendous advantage for us. Logistically, it offers a huge advantage both form a communications standpoint and a cost savings standpoint. Our heritage is as a trading company originally. We were always aware that America is not the only place that has the tooling and molding expertise and became one of the first companies that imported some of the many important tools for the automotive industry.


When and how did you get into the industry, what attracted you to it?

TransNav evolved from an importer of custom built automotive injection molds from Portugal in the early eighties. Originally part of a large Montreal, Canada based shipping company (Fednav), TransNav had international roots and significant logistics expertise. The main attraction to the market during the early years was the recognition that one day the world would be a global market place and that important and cost saving technologies and labor expertise existed in other places in the world.
 

Relate a notable "best time" for your company.

After the delivery of one of our first tools, the receipt of an order for the next program would certainly qualify as a warm moment – it vindicated our belief that we were on to something.

The next best moment occurred when we recognized that we could not only engineer and produce high quality molds for our customers but that we could profitably produce parts and assemblies in-house.
 

Similarly, relate notable challenges that your company has overcome.

TransNav has thrived by offering confidence to our customers, being one of the first in the automotive sector to offer economical tooling built to high standards by using a global tooling base combined with the early use of joint ventured and purchased technologies. For example, TransNav was the first to offer plastic speaker grilles to replace expanded metal products; TransNav was the first to use heat pipe hot runners in wheel trim applications; we created unique collapsible core tooling for roofing products and lately we introduced patented, multi-component suspension parts molded as one piece assemblies.

 

When you are working on projects with your customers, what aspects would you like them to better recognize?

That they can utilize our in-house engineering expertise to make product improvements, and that we offer complete program management and international sourcing capabilities.
 

List newly acquired technology, machinery or key personnel (in last year).

Mitsubishi 950 ton press/Kawaguchi 650 ton press/laser die cutting machinery and many additional items.
 

Has your company recently expanded? Plans to expand or form partnerships/alliances?

TransNav is expanding in New Baltimore, Michigan, to add 38,000 sq ft in manufacturing/warehouse space. TransNav Mexico has added a 20,000 sq ft warehouse and additionally is doing the ground work for an additional 25,000 sq ft of warehouse and manufacturing space. TransNav formed a partnership with Hayco/Forson in China early this year to serve automotive customers with tooling and production requirements.
 

Are you involved in any industry organizations or educational programs related to the trade?

No. I became one of the members of the Board of Advisors at Wayne State University to try to find people who would become part of the industry – to try to find qualified persons who have interest in becoming part of this industry.

What do you think about changes occurring in the industry due to globalization? How has it affected the way you do business?

This is the reason we exist today. Principally, the advent of the Internet and electronic age has made globalization so dramatically border-free and easier to manage and discover new opportunities that it’s been absolutely incredible. Applying the knowledge we had from our earlier days and knowing we can deliver products now in less than 6 weeks (develop and create new designs and concepts in a matter of hours instead of having to get together with customers around the world) has enabled us to become even more competitive.

When a customer walks into our doors or we approach a customer, we look at them to decide what is the best approach. We look at it from where is the best economical perspective from the customer’s point of view for him to get the product? We access services from all corners of the earth – even designs. You would never have been able to look at that 20 years ago, it wouldn’t have made any sense. Why is globalization there now? Because of changes in technology.

Competition is no longer the guy across the street, but now the guy in Shenzhen, China, who may have a company with a much lower labor rate who can take business from us. Customers now shop everywhere. It’s been quite an amazing dynamic and great learning experience. We export about 25% of our manufacturing items here. Because of the strength of the dollar now, for example, we do a lot of business in Europe, but for some products, it’s actually cheaper to manufacture here. Materials costs are also sometime cheaper here. You are forced by your customer to supply a global product wherever they happen to have a need for it. The way that GM and Volkswagen develop cars, you don’t necessarily have the same models of cars everywhere in the world but many of the parts within the models around the world are the same. They develop a platform for each product.
 

What will the industry look like in 3 to 5 years?

That’s hard to predict. Prices of oil will govern the price of many other things related to the industry, namely raw material pricing and consumer demand. As technology gets faster and faster you’ll see labor related operations moving more and more to low cost countries. You’ll still see highly automated facilities still operating here because we still have some advantages in the U.S. But we have a fantastic handicap in the lack of skilled labor. There will always be a need for tooling produced here because in many cases it’s more cost-effective to manufacture here. A lot of creativity is born in the U.S. and that’s worth something to customers worldwide. As for our company specifically, we have a very well developed global five-year expansion plan; we see a positive and bright future for us. A lot of that, though, depends on material, labor costs, the political climate, taxes and regulations, which will probably only get worse because it’s easy money for our government.

Additional background information:

Number of years in business: 25

Current number of employees: 300

Current square footage (each location): 600,000 total all locations

Additional locations: Mexico (pictured at right), China, Germany

Website: www.transnav.com

Types of tools built and/or run: injection molds, all types, with clamping capabilities ranging from 40 to 1,500 tons.

Industries served: Automotive

Contact Information:
TransNav Technologies, Inc. USA
Corporate Headquarters
30860 Sierra Drive
New Baltimore, MI
phone: 586.949.5200
Fax: 586.949.5288
info@transnav.com