Page 27 - MetalForming December 2011

Pioneer Metalformers
Invest in Workforce Development
Case Study:
E.J. Ajax and Sons
Metalformer E.J. Ajax and Sons, Fridley, MN, has worked hard to develop an espritdecorps—amanufacturing“A- Team” honed to create value for its customers. The net result is consis- tent, above-industry-average bot- tom-line profitability, ensuring that company management continues to invest in technology as well as in workforce development.
Esprit de corps is an intangible term used, according to online dictionar- ies, to describe the capacity of people to maintain belief in an institution or goal, or even in oneself and others. At E.J. Ajax, it represents a sense of pride and honor throughout the company’s 30 employees that sparks the engine driving customer value. But don’t take it from me, take it from the White House and President Obama.
“E.J. Ajax and Sons is a real-world example of how manufacturers and community colleges partnering to invest in workforce development is a win-win-win. It’s good for the com- pany, good for the workers and good for the economy,” said a White House spokesman in June 2011, following President Obama’s announced ini- tiative to train and certify 500,000 U.S. manufacturing workers in the next 5 yr. Clearly, E.J. Ajax has a sig- nificant head start on this initiative. The company serves as a testament
to what workforce development can mean to the bottom line.
Says company vice president and co-owner Erick Ajax (grandson of the company’s founder): “Since1993, more than half of our frontline work- force either entered into or graduated from our apprenticeship programs, and most Class A journey workers have nearly doubled their entry-level wages as a result. At the same time, through 2011 our bottom-line net profit remains several points above industry benchmarks, due in large part to our ongoing efforts to upgrade the talent on the shop floor.”
Ajax offers data to link profitabili- ty to workforce development, noting that through the early 90s, profits ranged from 1 to 3 percent of rev- enue. Following the introduction of apprenticeship training, profitability climbed to 4-5 percent in the mid- 90s. And now, the company continues to enjoy even higher profitability.
Safety Breeds Success
You can’t discuss E.J. Ajax and Sons for too long before the subject of work- place safety comes up, as its safety record is well documented and pub- licized—more than 21 years without a lost-time on the job injury. “If we can’t be safe, we can’t be successful,” is the message Erick Ajax hammers home to his colleagues out on the shop floor.
“Since 1993, more than half of our front- line workforce either entered into or graduated from our apprenticeship pro- grams,” says Erick Ajax, “and most Class A journey workers have nearly doubled their entry-level wages as a result.”
It’s a message that hits home with every single employee at the compa- ny, specialists in progressive-die metal stamping and metal fabricating. “The more we invest in our employees’ safety and in their professional devel- opment,” says Ajax, “the more they accomplish for themselves and their families, and for the company and its customers. It’s truly been an upward spiral for us.”
Ajax stresses that his company— essentially a contract manufacturer serving OEMs in numerous indus- tries including appliance, commercial construction, truck, HVAC and hard- ware—competes not only domesti- cally but globally, and that as such, “our skilled metalforming profes- sionals can safely create the same value as 20 Chinese workers...By working safely and productively, we
Fridley, MN
BY BRAD F. KUVIN
Editor, MetalForming magazine, a publication of the Precision Metalforming Association
www.metalformingmagazine.com MetalForming/December 2011