Bartell depends on international sales

CNY Business Journal (1996+), Dec 21, 2001 by Kropf, Annemarie

ROME - Bartell Machinery Systems Corporation has no employees it has associates.

"Associates are by definition people of a like mind," says Jerry L. Eisenhart, president. "The term 'employee' is demeaning. It means someone who comes in, does work, and goes home. We want our associates to be completely involved in the business."

Everyone in the machinery manufacturing company is involved with the job of strategic planning, Eisenhart says. Once a year, a series of teams are formed to solve problems in the business. These teams look at four different areas in the business; the two internal ones are its strengths and weaknesses, while the external ones are threats to and opportunities for the business.

Workers choose which teams they would like to join. Every four to six weeks, an appointed team champion reports the group ' s progress to a steering, or advisory, committee. The team disbands only when the objective has been achieved.

"We have probably 16 teams functioning right now," Eisenhart says. While the number of associates in each team varies, the average is six to eight people. "This way, you can hear everybody's views," he says. "If it's more than that, discussion comes to a stop."

The corporation started out making machines for the wire and cable industry, and has since expanded to the tire business. One of the company's main products is a bead process line, which is composed of four machines coordinated electronically. A bead is the wire hoop found inside the rubber of a tire rim, and is the part that engages a steel wheel, Eisenhart explains. "We don't make the beads themselves," he adds. "We sell the process line to people who do."

The company makes about 20 different pieces of equipment. "They vary in price from $10,000 for a cable cutter to $1 million for a bead process line," he says.

Bartell sells its products worldwide, reaching such locations as Eastern Europe, China, Korea, South America, and Russia. International sales are helping the company the most during these uncertain economic times, Eisenhart says. Typically, its international sales make up 70 percent to 75 percent of business. This year, international sales make up 90 percent to 95 percent of business.

Ernest Bartell began the company in 1940. It was a familyowned business until 1998, when Pettibone Industrial Group bought it. "That really helped this company," Eisenhart says. "It gave us financial strength ... to make professional business decisions that would've been harder for a family business."

With current economic conditions, the company takes part in the Shared Work Program to cut costs and save employee jobs. A partnership with the New York State Department of Unemployment, the program allows some departments to operate under a four-day work week. On the fifth day, affected employees collect one-half day's pay from the state Department of Labor's Division of Employment Services.

"It's not nearly as cost effective as a full layoff," he says, "but we value our people so much."

Eisenhart attributes the success of the business to its constant focus on growth, cost reduction, and associate involvement in all aspects of the business. "The most valuable resources are the people" he says. "Plants and equipment you can go out and buy. Finding talented, smart, ambitious people is hard."

While this past year has not been a growth year for the company, Eisenhart says that Bartell deals with it by closely managing costs. Workers have everything they need to do the job, but no extras. In terms of travel, Eisenhart says he tells the salesmen not to go anywhere unless they are sure they can get an order.

"We have to be careful with every dollar," he says.

Eisenhart adds that the company is taking the initiative to survive during the recession.

"We're not waiting for the economy to turn around," he says. "We're investing in a new product line. The way to get out of a recession is to sell yourself out of it."