Friday, October 14, 2005

Todd McInturf / The Detroit News US Farathane CEO Andrew Greenlee talks to Nisha Patel of Utica as she inspects body plugs for automotive frames.

Lessons learned

Culture change helps auto supplier prosper

US Farathane's worker retention and revenues soar; communication at all levels called key.

By Eric Pope / Special to The Detroit News

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STERLING HEIGHTS -- There used to be a revolving door at US Farathane Corp., a plastic-injection mold automotive supplier.

The problem started in the corner office where five CEOs passed through in less than ten years and extended to the production floor where hourly worker turnover was running around 20 percent a year.

CEO Andrew Greenlee solved the first problem by staying after taking the reins in early 2001 at the age of 33. He could have used the job as a stepping stone, but instead made a long-term commitment to the company.

"I want to be here. When someone in my position feels like that and stays through thick and thin, I think it shows," he said.

The results in employee retention have been dramatic. Turnover at the 575-employee company has declined to about 5 percent for hourly and salaried workers.

US Farathane's turnaround started with the replacement of low-margin products with niche products that are hard for competitors to duplicate. The company specializes in "two-shot" injection molding, a process that fuses different types of plastic.

Investment in new equipment has reduced labor costs without causing layoffs. Revenues grew about 20 percent in five years to $75 million last year, despite the elimination of some product lines, and are projected to reach $120 million by 2007.

According to Greenlee, the turnaround wouldn't have been possible without a major change in how employees saw the company and their jobs.

"The company had become very average and very low performing. The culture here accepted that was the most we would ever be," he said.

Constant communication between all levels of the company has made the difference, Greenlee insists.

Every other week "communications" meetings are held for all three shifts at US Farathane facilities in Sterling Heights, Utica, Madison Heights, Plymouth and Almont. Managers discuss how production has been going and what new work is coming.

They ask for suggestions and listen to employee concerns. "As a company we had underutilized our employees," Greenlee said. "They have a good feel for what's going on in the plant and where the strengths and weaknesses are."

Two or three times a year, Greenlee attends the meetings to give an overview of where the company is headed.

When a new order comes in, managers show their workers exactly where the part goes on the car. "We want them to be proud of what they are doing," he said.

Press operator Lea Coaster of Redford noticed a big difference when she joined US Farathane last year after the acquisition of Hahn Corp. of Plymouth.

Besides the good wages and the opportunity to work overtime, she likes how the managers explain what is happening at the company.

"They tell us what we need to know," Coaster said. "We get good insights into where we stand."

Eric Pope is a Metro Detroit freelance writer. Contact him at popepub1@comcast.net