Baldor electric company
Baldor is an electric company founded in 1920 by Edwin Ballman and Emil Doerr. The name of this company is a mix of their 2 names. The plan to be the best marketers, designers and manufacturers of industrial electric motors, drives and mechanical power transmission products. Today they are implemented in more than 70 countries with about 50 warehouses America. Baldor supplies to over 9,500 customers and is headquartered in the city of Fort Smith, Arkansas.
How to produce more efficiently?
The CEO of Baldor wanted to be more efficient than Americans and have less costs than Mexicans. But it wasn’t really realistic, that’s why they planned to go offshore in Quebec. The problem is that most of the employees was afraid of losing their job.
In 2008 when Baldor bought Maska, Pierre Boutin, the CEO of Baldor failed at recovering the production of the Mexican’s warehouses. Unfortunately there was an important economic crisis and Baldor was acquired by a Swiss company in 2010, specialized in handwork.
Offshoring in Québec have been a complete success because they had a manual manufacturing process while Baldor were robotic.
Intensification of the production:
Pierre Boutin also worked in collaboration with ABB personnel to convince Investissement Québec (IQ) to help the company. IQ agreed to subsidize 10% of the investments planned to $ 6 million to upgrade the plant equipment and increase its production capacity.
In 2011 Sainte Claire’s factory (Québec) was able to demonstrate that it would have enough production capacity and could produce at lower costs.
The transfer of the Mexicans’ production increased the turnover by 15% and created 12 job. They had the idea of creating a suggestion box which was a complete success because on 163 suggestions, more than a hundred have been applied.
When Sainte Claire arrived in the group Baldor the company was ranked 13th out of 26, 3 years later, in 2012, the company reached the first place.