Inside look at an industrial powerhouse
WBJ: How would you describe the overall climate in this state for manufacturing?.
Menendez: Massachusetts has a talented, well-educated workforce. It also offers a very strong technical base and fine educational institutions. But you must contrast this with high costs in taxes, health care, energy, wages and real estate.
WBJ: What can the state do to improve its business environment?
Menendez: Grow the tax base, which will help take the pressure off existing companies. Businesses also bear a disproportionate share of the property tax burden versus residential. Certainly, business would like to see more tax incentives for investment or job creation. We also welcome innovative local efforts, such as the "Choose Worcester" program, a business-government coalition that is just getting off the ground. Overall, Massachusetts must send the message that "we are pro-business; tell us what you need."
WBJ: Can you provide an overview of Saint-Gobain’s operations here?
Menendez: At our Worcester and Northboro campuses, we employ about 1,900 people, with an annual payroll of more than $100 million. Soon the R&D operation in Northboro will become the largest Saint-Gobain research center in the world, supporting a wide range of the company’s high-performance materials. Our manufacturing operations at the Worcester Greendale site include: abrasives, refractories, ceramics, and grains & powders. We also maintain a large grinding center on campus where we troubleshoot customer problems and evaluate technological advancements. Still another program brings in distributors from all around the country for training.
WBJ: How do your operations here relate to the global reach of Saint-Gobain?
Menendez: Based in Paris, Saint-Gobain is one of the top 100 industrial companies in the world, with $44 billion in annual sales and more than 200,000 employees in more than 50 countries. In North America, the company has about 25,000 employees and 180 manufacturing sites. Saint-Gobain is also one of the world’s oldest companies, started in 1665 to produce the Hall of Mirrors at Versailles. In Worcester, we share best practices, as well as new processes, products and R&D, with the company’s plants all over the world. Since Saint-Gobain bought Norton in 1990, it has invested about $100 million on facilities in this area. The Norton acquisition introduced Saint-Gobain to the abrasives field, and it took the technology developed here and used it as a springboard for growing its global abrasives business.
WBJ: What are the prospects for expanding your workforce in this region?
Menendez: Employment should remain generally stable, with a modest long-term shift toward higher tech jobs. The job specialties that are most in demand are in engineering and research. In manufacturing, we need skilled crafts people and those with math and votech backgrounds.
WBJ: How are you working with area educational institutions?
Menendez: We do quite a bit of recruiting, especially in R&D. For existing staff, we offer 100% tuition reimbursement for continuing education. We maintain educational partnerships with the Harlow Street School and the Abby Kelley Foster Charter Public School, and also donate buildings to the Worcester public school system valued at about $500,000 a year. Two of our staff serve on the advisory board of the Worcester Vocational High School. We also hold an annual career day here for the students and donate money and equipment. On the college level, we have various ad hoc programs with WPI and Worcester State College, such as statistical process control training that WPI recently provided to my staff.
WBJ: What other commitments has the company made to Central Mass.?
Menendez:We spend about $50 million a year with Massachusetts companies. Vendors include: machine shops, welding and metal fabrication, corrugated and paperboard, transportation, office supplies, food service, as well as health care, legal and other professional services. Beyond that, Saint-Gobain has continued Norton’s commitment to play an active role in the community. Our contributions to community causes amount to about $1 million a year. A great many of our employees volunteer for community programs, and 17 serve on boards of directors for area nonprofit groups. Although we are a large global company, we feel we have a very real obligation to add to the quality of life in Worcester.
This interview was conducted and edited for length by WBJ Chief Editor Larry Maloney.
WBJ Web Partners
Most Recent
Most Recent
0 Comments