Featured October 22,  2004

Case Study Archives

 An interview with Ron Davis, Jr., CEO of Davis Tool, Inc. (DTI), located in Hillsboro, OR.

1)    What is your company niche and what does your company do that is notable, unique or different?   Black Pinnacle Mailbox

Davis Tool is a custom manufacturing company.  With one exception we help other people to build their products.  We have a modern manufacturing facility using leading edge technology to design, machine, and fabricate mechanical products.  We provide design services, and design, build, and test custom factory automation equipment.  Our only “captive” product is the line of mailboxes we sell through www.lockingmailbox.com.  We have been doing our best to provide improving service to our customers for 24 years.  This has led to an unusual level of vertical integration.  You can see the diversity of the processes available from Davis Tool on our web site www.davistl.com. 

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

Davis Tool is a family owned business started in the late 1970's by my parents.  I grew up around machining, and computer controlled processes.  I enjoy working with the wide range of products and technology, and people needed to make Davis Tool successful.

3)    Relate a notable "best time" for your company.   

We have a “best time” every time we land a challenging project, or when the economy allows us to expand.  We love to make things and to invent new ways to use the technology that is available.  Seeing demand for our mailboxes double and double again has been a lot of fun.  Buying equipment like a large 5-axis milling machine, laser welder, or high speed machining cell is just the start.  The fun part is inventing how to apply the technology to our customers’ parts to provide value or to do things our competitors can't.

4)    Similarly, relate notable challenges that your company has overcome.   

The most notable challenge I can think of is the one we are working to overcome right now.  Communication between our team when spread between 5 buildings in 2 cities is difficult.  The new facility we just purchased is going to take care of that. 

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

Sometimes our customers have experience with only a narrow part of our capabilities.  We may only do chemical finishing, or only machining.  Often we can save our customers more money if they allow us to manage a larger cross-section of their product.  When we sell a kit or sub-assembly containing several part numbers it helps to eliminate waste. DTI EDM Room

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

Starting in 2001, business was very slow for Davis Tool.  We used this time to plan and organize ourselves to be ready when the recovery started.  We have seen strong demand for our services since late in 2003.  We have added about 75 people since January (60%).  We have also added equipment to our EDM and Lathe departments.

7)    Has your company recently expanded? Plans to
        expand or form partnerships/alliances?   
DTI new Evergreen Campus totaling 210,000 square feet is located in Hillsboro Oregon.

We purchased a new facility in July.  We are moving our entire operation from 5 buildings in 2 cities into one building in Hillsboro, OR.  We are excited for the chance to have our entire team under one roof where teamwork will be easier, and production will flow faster.  We are expecting our jobs to be easier, and our customers to be more satisfied.  Our new location brings improved access to transportation, so we will be much closer to both our customers and employees.  We expect the move to be complete by June 2005. 

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

No, not at this time.

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

Globalization has made doing business much more difficult for Davis Tool.  I believe globalization is the primary cause of many of our competitors going out of business.

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

I believe this depends largely on our political leaders.  If they decide manufacturing is important, work to level the playing field between foreign and domestic manufacturing companies, and fix the problems with our education system, there will be many more successful domestic manufacturing companies like Davis Tool.  If not, we'll see.

Additional Background Information

Hillsboro Location - Large Milling AreaNumber of years in business:  24 years 

Current number of employee:  199  

Current square footage: New facility will be 210,000 square feet (Company has its current facilities (5), which total 200,000 square feet, for sale.) 

Additional locations:  Currently has a 100,000-square-foot facility in Forest Grove, OR, in addition to four grouped facilities in Hillsboro, OR, however all operations will be under one roof in Hillsboro as of June 2005.

 Website:  www.davistl.com and www.lockingmailbox.com

Clean Air Stations at the Forest Grove LocationTypes of tools built and/or run:  We build tooling for plastic injection molding, milling, turning, bending, welding, aircraft assembly, heat-treating, and more. 

Industries served:  Medical, Aerospace, Electronics (capital equipment), and Consumer industries 

Contact information : 

Ron Davis Jr
Davis Tool Headquarters
215 SW Wood Street
Hillsboro, OR  97123
503-648-0936 ext. 328
rond@davistl.com

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