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As published in "Innovation
for Regional Advantage"
A Journal of the Center for Regional Economic Issues
Weatherhead School of Management, Case Western Reserve University
Drawn into
conversation at a family-and-friends party, host Stan Young listened
to a description of REI's work and the themes for this publication
of innovation, education, technology transfer and applied technology.
"We do
that," he said quietly. What do you do? "We apply technology
to make ourselves more efficient and productive," he responded.
Really? What's your business? "Metal bellows, tubing and welding services." It didn't sound too high-tech.
But like many
hundreds of other traditional Northeast Ohio businesses, Alloy
Bellows & Precision Welding - over 50 hardworking and caring
employees strong - has quietly transformed itself in the ten years
that Young has been president and part-owner.
The company
has automated its manufacturing processes with scheduling and
tracking software that adjusts each day's production to customer
needs, submitted nine patents to the U.S. Patents Office, and
begun doing very high-tech and demanding atmosphere-controlled,
high-purity welding for the semiconductor and biomedical industries.
Alloy's engineering
design team has also developed a computer simulation model for
their bellows production (welding and fabricating high-complexity,
precision parts), and proprietary software to analyze their bellows'
performance requirements and longevity.
"Bellows,"
Young describes, "are thin-walled corrugated-metal tubes
that flex in response to temperature or pressure to act as controls
for many other devices. Our bellows, for example. are used inside
gyroscopes and altimeters in aircraft. They're also used in zero-leak
valves for toxic or hazardous applications and in high-vacuum
valves for superconductor magnets."
To create
a precise bellows for each application used to require lengthy
mathematical calculations and a lot of precision craftsmanship
to build prototypes. It also produced a lot of scrap material.
Their computer simulation model now lets them design a bellows
for nearly any purpose - extremely efficiently and without costly
waste.
Why welding?
Was it a family business? "No. Although my father and brother
also own small businesses here in the Cleveland area," Young
says, and he wanted to be able to tap their business expertise
and have their financial assistance as he started out in business.
He adds ruefully, "Family discussions seem to focus on profitability
and strategic systems as much as on family."
"I worked
in sales and marketing for IBM and in Boston for the unusually
high-tech AutEx Systems Division of Xerox (a business originally
founded by an MIT professor and purchased by Xerox), but I realized
I enjoyed a small company more. It became a goal of mine to find
a profitable company, buy in and come home. The industry did not
matter to me as much as the reputation and honesty of the other
owners."
Alloy as a
company was ideal, because the original owners wanted to stay
involved for a time - lending their engineering and financial
experience to Young's sales and marketing experience and business
school education.
Being an owner
is a challenging occupation that he enjoys all the time, but more
so in a good year, he shares with a certain wry, good humor. "There
is a lot more risk involved owning a business than working at
a regular job - especially if you want to grow and move to this
new level - but there are also many more rewards."
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