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Case Study Questionnaire
A Visit with Inland Technologies, Fontana, CA
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1) |
What is your company niche and what does your company do that is
notable, unique or different? (ie, technology, innovations) |
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Inland Technologies, Inc. of Fontana, Calif. specializes in the
design and production of injection molded plastic tools and parts
that serve a cross-section of worldwide markets, including
healthcare, electronics, vision care, fluid-handling, packaging and
other industries requiring tight tolerance specifications.
An ISO-9001-certified operation, the company is an award-winning
industry leader for its quality products, services,
technology-driven processes, customer satisfaction and employee
relations. Success of the company can be attributed to its
popularity among the nation's leading healthcare companies. Eighty
percent of Inland’s business is now derived from the medical device
manufacturing sector, one of the fastest-growing segments of the
world’s economy. Global consumption of medical products is
approaching $170 billion, more than double the number when Inland
was founded a decade ago. One of the reasons is because advances in
materials and manufacturing equipment have allowed the plastics
industry to make very tiny parts for instruments used in
microsurgery and precision components now used in every aspect of
healthcare.
During the nearly 10 years since it was founded, the company has
operated under the rigid ISO 9001 quality management standards, and
is one of only a handful of plastics injection molding and
tool-making firms to qualify for the certification. It also is one
of the only full-service injection molding companies with an ISO
9001-certified Class 100,000 clean room.
In addition, Inland Technologies is registered by the British
Standards Institute of London (BSI) and the Federal Department of
Agriculture (FDA), and is compliant with QSR and QS 9000 standards. |
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2) |
When and how did you get into the industry, what attracted you to
it? |
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Ten years before Inland Technologies opened its doors in 1992,
founders Glenn
Crossno (pictured at the right) and Gary Hengeveld (pictured at the
left) started “throwing around the idea” of starting their own
company. Both were polishing their knowledge and skills as leaders
in the specialized area of plastic injection molding and tooling --
skills that they had discovered and enjoyed as early as high
school. Both had similar careers, rising up in the ranks of other
Inland Empire-based mold and tool-making companies and, as middle
managers, became adept at the business side of the industry. But
both were frustrated by the limitations of not being the ultimate
decision-makers
and
their inability to control their fate.
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3) |
Relate a notable "best time" for your company. |
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The "best times" for ITI have been:
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During its first year
the company earned $800,000, $1million the second year and
reached profitability in only its third year of existence. In
fact, the company surpassed its first five-year plan goals.
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It was among the first
full-service injection molding companies to be fully compliant
and certified with ISO 9001 standards. It was one of the first
such companies to install a Class 100,000 clean room for its
molding operations.
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ITI is one of only a
handful of the nation's plastic injection moldmaking operations
that is actively working with industry leaders to stop the
outsourcing of jobs to overseas companies. ITI is the first to
initiate guidelines for all US manufacturing firms to use to keep
present and potential customers from going offshore.
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Expansion of the
company during the last two years -- doubling headquarters space,
adding new technology and equipment, opening a new plant on the
East Coast.
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4) |
Similarly, relate notable challenges that your company has overcome. |
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Once Glenn Crossno and Gary Hengeveld overcame their trepidations
about leaving their secure jobs and starting their own business,
the next major challenge was raising money for their new venture.
It took 10 years for the two entrepreneurs to build their personal
savings accounts to a point where they were able to let their
combined experience, self-confidence and determination control
their destiny. The next hurdle was finding a bank that would
believe in them. Said Crossno, “The first bank we approached
laughed at us." Then we looked for a location for our new business,
settling on our current location in Fontana. We had to hustle to
meet the move-in deadlines imposed by the leasing agreement, but we
did it.” The other major hurdle was achieving ISO 9001 quality
certification, and they were able to do that in the first three
years of operation. |
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5) |
When you are working on projects with your customers, what aspects
would you like them to better recognize? |
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Inland's reputation in the medical device industry and others is
based on its ability to design, manufacture and deliver its
customers' products with the highest level of quality, in the most
cost-effective manner and within the specified delivery time.
Customers are reminded in preliminary project discussions,
throughout the manufacturing process and during plant tours, sales
meetings and other venues that the company is committed to quality,
customer service, timely delivery and competitive pricing. |
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6) |
List newly acquired technology, machinery or key personnel (in last
year). |
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Inland recently installed an environmental cost-saving closed-loop
water chilling system, the latest in CAD/CAM software and a variety
of quality enhancements, including additional standardized
manufacturing cells, each configured by 55- and 85-ton hydraulic
machines, and 60-, 90- and 120-ton all-electric injection molding
machines. In addition to new engineers and technicians to meet new
business demands and nationwide expansion, Inland hired a marketing
communications expert to enhance its internal and external
communications. |
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7) |
Has your company recently expanded? Plans to expand or form
partnerships/alliances? |
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Inland Technologies recently opened a new plant in North Carolina,
its first outside of California, to meet the needs of customers and
potential customers in the Eastern Region of the U.S. The two
locations form key links in what ITI has termed the "Inland
Triangle" that will ultimately include a third operation to serve
the North-Midwest corridor. |
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8) |
Are you involved in any industry organizations or educational
programs related
to the trade? |
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ITI is a long-time active member of the Society of Plastics
Engineers (SPE), and currently spearheads many activities and
initiatives for its division of mold makers and mold designers.
Among those leadership roles are training of future technicians and
engineers and lobbying for trade laws to discourage the overseas
outsourcing trend. Thomas Diaz, ITI manager of engineering and
toolroom operations, recently was named chairperson for the I.T.
Quarnstrom (ITQ) Foundation, the primary fundraising arm of the SPE
MM & MD division. Diaz, who is serving a three-year term on the SPE
MM & MD division's board of directors and as treasurer, has been a
member of SPE since 1991.
Hengeveld is an active member and former officer in the Society
of Plastics Engineers, served as vice chairman of the Bureau of
Franchises and Fontana’s YMCA. Crossno is an active member and
former officer in the Society of Plastics Engineers and the Masons
Society. |
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9) |
What do you think about changes occurring in the industry due to
globalization? How has it affected the way you do business? |
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Globalization has had an immediate and definite adverse effect on
ITI's business, and the moldmaking and toolmaking industry in
general. ITI has managed to stay profitable, largely because of its
decision many years ago to pursue the healthcare and medical device
niche, one of the last to take its business offshore. However,
hundreds of companies like ITI have disappeared, unable to compete
with the lower labor costs of the foreign markets. Many companies
are struggling to stay afloat in the US as their customers
increasingly jump ship. ITI continues to battle the trend at the
national government level, the state level and the local level, and
has adapted a set of guidelines to help in the fight. They are:
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Cut operating costs
without compromising quality.
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Avoid middlemen -- By
being a full-service company, or by keeping most of your
operations in-house, significant cost savings can result.
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Consider the “true”
costs of overseas outsourcing -- Does the attractive low bid from
the foreign supplier include expenses associated with travel,
freight, international tariffs, telecommunications and tooling
warranties, to name a few?
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Show off your plant --
Take prospective customers on a thorough tour of your facilities,
pointing out the cost-saving technology and methods used to
achieve maximum quality and efficiencies.
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Know your supplier --
Demonstrate that you fully understand your prospective customers’
industries, their markets and their particular requirements. Show
them that your company is a perfect match for the contract.
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Emphasize American
work standards -- remind your business partners that despite the
influx of more American business into the newly developing
nations, wages, health, safety and other labor standards for
their workers are not improving. In fact, in many countries where
competition is intensifying to demonstrate lower labor costs,
workforce conditions are actually getting worse.
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10) |
What will the industry look like in 3 to 5 years? |
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ITI believes that the industry, already in transformation, will be
distinctly different in three to five years in the following ways:
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There will be less
smaller moldmakers and tool makers -- "mom and pop shops" - in
the US, and the larger firms will have to convert to "one stop
shop" operations so customers do not have to sub-divide their
work. Complete design, manufacturing, storage, delivery and
quality control will all be under one roof.
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There will be less
qualified technicians and engineers as potential new employees
will look for industries with greater potential for job creation
and long-term employment opportunities. Moldmaking and
tool-making is becoming a dying art.
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Unless US trade laws
are reversed or changed drastically, the incentives for overseas
contracting will be too attractive for domestic-based companies
to ignore.
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Additional Background Information |
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Years in business: 12
Employees: 100
Square footage: 100,000
Locations: Fontana, CA and Creekside, NC
Website:
www.inlandtechnologies.com
Phone: 909-428-6722
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