Featured August 13, 2004

Case Study Archives

Case Study Questionnaire

A Visit with Inland Technologies, Fontana, CA

1) What is your company niche and what does your company do that is notable, unique or different? (ie, technology, innovations)
  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.  

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

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.   

3) Relate a notable "best time" for your company.
  The "best times" for ITI have been:
  • 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.

  • 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.

  • 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.

  • 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.

4) Similarly, relate notable challenges that your company has overcome.
  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.
5) When you are working on projects with your customers, what aspects would you like them to better recognize?
 

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.

6) List newly acquired technology, machinery or key personnel (in last year).
  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.
7) Has your company recently expanded? Plans to expand or form partnerships/alliances?
  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.
8)

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

  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.

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 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:
  1. Cut operating costs without compromising quality.

  2. Avoid middlemen -- By being a full-service company, or by keeping most of your operations in-house, significant cost savings can result.

  3. 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?

  4. 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.

  5. 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.

  6. 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.

10) What will the industry look like in 3 to 5 years?
  ITI believes that the industry, already in transformation, will be distinctly different in three to five years in the following ways:
  1. 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.

  2. 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.

  3. Unless US trade laws are reversed or changed drastically, the incentives for overseas contracting will be too attractive for domestic-based companies to ignore.

Additional Background Information
  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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