Industry Feature, continued

and can assure the business community that I found nothing to suggest that Lynx is anything other than a well managed precision metal fabrication, finishing, and assembly operation.

   Lynx is run by Vance, his older brother Todd, and their younger brother Keith.  They have traditionally run the business in a way that avoids attracting the attention of the company, which accounts for the relatively nondescript logo on their trucks and building.  It quickly became obvious that Lynx focuses on the quality of their products and drawing attention to themselves has not been a part of their business plan, or even necessary to grow their business.

   The Anderson brothers were exposed to two important things in their youth that helped shape them for running their own business.  While most of us grew up around people who work for an employer, the three brothers had neighbors who owned their own businesses.  This made business ownership appear to be quite natural to them instead of working for someone else.  The other important factor was that their parents raised them to do a lot of things together as a family, which Vance credits with their ability to work together in a business environment without letting opinions become personal. 

   The typical fabrication business is often started by a craftsperson who learns their trade and then aspires to work for themselves.  Most do not have a sound business training and fail to appreciate the needs of their corporate customers.   Vance entered the metal fabrication world through an interesting path in life.  He graduated from the University of California at Davis with a degree in Biological Science, but continued on to receive his Master's degree in Business Administration (MBA) from San Jose State University.  Summers were sometimes spent working on the floor of a machine shop, which gave Vance an insider's understanding of the shop floor while discouraging any desire to make a career of machining or fabrication on the shop floor.

   Vance went to work as a Materials Manager for a company in the Silicon Valley, which gave him an opportunity to learn more about business from the inside of a growing company.  He saw things that were effective and learned about other things that didn't work.  He made a difficult career decision and moved on to work as a buyer for a family owned technology company in Walnut Creek.  This position gave Vance an opportunity to see a different company culture and to spend time interfacing with a variety of industry suppliers that included sheet metal fabrication shops.

   Many fabrication or machine shops evolve into a business when someone is a good sheet metal fabricator or machinist and decides to save some money to buy tools and move into the business making parts for a few customers.  Many of these small shops outgrow the owner's business skills and problems quickly overcome the company while customers become dissatisfied.  This is a formula for failure that often becomes more visible when the economy changes.

   Vance and his brothers avoided this familiar trap by recognizing the potential pitfalls and obtaining their training in business management before entering into their own business.  They had worked in several business environments and had learned what methods worked well and which ones did not.  Their focus on fundamental business practices has helped Lynx to prosper during the difficult economic times of recent years.

   With his experience as a buyer of sheet metal products for other companies, Vance developed a keen understanding of the needs and frustrations of customers.  As a buyer, he saw firsthand the difficulty caused when a sheet metal fabrication provider either fails to deliver at the agreed upon time, or when manufacturing delays occur because the product must be shipped back and redone to meet the quality expectations of the eventual buyer.  These experiences led Lynx to develop the following simple, but effective, mission statement that reflects their fundamental business philosophy:

"The goal of our company is simple: to create a high quality product that meets and exceeds our customer’s expectations. Lynx Enterprises has the unique ability to give our customers a high quality product at an affordable price with on-time delivery."  --  Lynx

   Lynx has been affected by the recent downturn in the economy, however.  The economy is showing several signs of being on the edge of a slow and strong recovery, but the economy has caused difficulties throughout the fabrication industry.  The economy has put considerable pressure throughout the manufacturing and distribution chain to maintain profits for shareholders by reducing costs.  This trend is putting tremendous pressure on suppliers like Lynx who have focused on producing quality products instead of producing at the lowest possible price. 

   As a business consultant, I have seen many companies close their doors because they started their business during the stable economic growth of the nineties when it was common to borrow large amounts of low-cost capital to build or expand their company.  This leveraged condition became a liability as the economy turned around and more pressure was put on suppliers to lower prices.  Although high-risk leveraging can help companies capitalize on a growing business environment, conservative financial management is best for a slow economy and needs to be in place before the downturn occurs. 

   Lynx was founded during the latter part of the last recession that followed our involvement on Desert Storm.  This helped Lynx management to be very careful about doing its homework and studying the market before making a decision to invest in a new venture or equipment.  These conservative practices continued through the prosperous years to help keep the company operating on a strong foundation of fundamentally good business management that was so important as the economy started to have difficulties.

   There has been a trend in the business world during the last twenty years to avoid any focus on problems.  Vance is different in that he embodies a style of seeking problems to solve, which was more common in past generations of executives.  Vance views the business world a a series of problems to face and address.  This approach creates an environment of continuous improvement and effective evolution.  Their constant attention to the details of improvement has led them to apply for ISO 9000/2000 certification.

   A tour of the fabrication facility further reveals good management.  Nearly one-hundred employees work without the need for constant supervision and showed no changes in their behavior when the president of the company walked onto the shop floor.  Vance's background of working on the shop floor during his college years is evident with two distinct ways.  He has a fundamental understanding of the shop operations and can spot things that many business people might miss.  It is an instinct that comes from experience working in fabrication facilities.  He also clearly understands that his employees know their jobs,  have been encouraged to improve their skills, and they don't need advice from managers.  As a company president, Vance expects his employees to listen when he speaks about running the company, but he also understands that he needs to listen to his employees when they speak about how to make the best possible parts.

   Does Lynx have a strategy for building their market during this economic recovery?  They do.  Lynx is seeking cooperative relationships with customers who recognize that strong relationships with a supplier can create a better long-term strategy for market success.  That sounds like an effective strategy for this new century.

A powerful computer controlled laser cutter slices through sheet metal with the precision of the thickness of a human hair.	A worker applies a powder coating that is environmentally safe and will melt to the part.	The cutting pattern of a metal part sits atop a stack of completed parts that are ready for final assembly.	A worker completes the final assembly on a row of parts that will soon ship to the customer.

Keith Chiles

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