Emuge looks to new revenue streams amid industry slowdown
Courtesy
Emuge President Bob Hellinger.
West Boylston precision cutting tool manufacturer Emuge Corp. opened a new 21,000-square-foot technology center in October, so companies can test out concepts for cutting tools without having to invest in new machinery. This comes as the global company has been trying to open up new lines of business as its traditional revenue streams have scaled back in the last few years.
Emuge President Bob Hellinger, who took over in 2014, spoke about the issues impacting his company and the Central Massachusetts industry and his company’s plans to grow over the long term.
How has business been in the last year?
Manufacturing in the U.S. and Canada has been in recession in the past year, but Emuge has been able to weather the downturn with the addition of innovative new products that have opened new markets for our company.
You recently opened a new cutting facility. Why did you feel this was a good time and place for such an investment?
Part of our expansion into new markets includes a new manufacturing capability in the U.S. and specifically in West Boylston. We now provide our customers with a service that can recondition their worn cutting tools. Metalworking companies can now send us worn tooling which we recondition back to a new tool state.
Our parent company is located in Germany and having to send products back to Europe for this service is uneconomical. We saw a business opportunity to offer reconditioned tools produced in Massachusetts and decided to make it a reality.
What is the No. 1 issue facing your company right now?
The No. 1 issue facing Emuge and other manufacturers that are trying to grow and expand, is finding and developing qualified employees. The ability to find and train skilled computer numeric control (CNC) machine operators to operate our new machinery is a challenge.
What is the future of the manufacturing industry in Massachusetts?
Traditional, low-skilled manufacturing companies have been replaced by innovative, high technology manufacturing organizations using sophisticated computer-controlled machinery. This new generation of modern manufacturers employ a fraction of the people that were once needed to produce the same type of components. This allows these Massachusetts-based manufacturers to compete in a global market. Although manufacturing companies in the state employ a lower percentage of the workforce than they did 20 years ago, they still provide higher wages and stable career opportunities to their employees.
Where are the most fertile markets for your products right now? Where will they be in five years?
Emuge is a global company with manufacturing facilities in four continents. We service all types of U.S. and Canadian metalworking manufactures in the automotive, aerospace, energy, medical and defense industries, from large manufacturers such as Ford & GM, Caterpillar and GE to small independent machine shops. We see the metalworking manufacturing market in North America as a growth opportunity today and in years to come.
Why do you do business here?
Our North American headquarters were founded in the Worcester area over 30 years ago. The area has a long history with metalworking cutting tool manufacturing that dates back over a century. Emuge has been able to attract some experienced personnel in the area which have benefited our company.
This interview appears in WBJ's annual Central Mass by the Numbers publication and was conducted and edited for length and clarity by Brad Kane, WBJ editor.
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