CONTRACT PRICING ADJUSTMENTS   top

By Jim Mattson, Purchasing Manager

Material price increases are on everyone’s minds (and wallets) these days.  Anyone involved in fabrication, especially with ferrous types of materials, knows how challenging the last five months have been in regards to steel pricing.  In the last few weeks, material availability has even come on the radar. 

To lessen the impact of the market, Iowa Laser has adjusted contract pricing guidelines with our primary steel suppliers.  Prior to this change, our purchasing strategy secured primary contracts quarterly.  With greater purchasing power, this offered our customers consistent pricing and our suppliers better planning metrics.  Unfortunately, this strategy is not dynamic in times of market unrest.   

Iowa Laser is now contracting on a month-to-month basis to keep prices as low as possible.  Any time the market fluctuates, primary steel suppliers consider potential short-term options on pricing, including ‘hedging’ against future price increases by adding their unease to current prices.  By contracting on a month-to-month basis, we can offer ‘real time’ steel purchases, while also preventing steel suppliers from recouping losses due to the market.  This format may reduce the amount of time our sales staff can ‘guarantee’ a quoted price, but it offers more stability until the market calms.    

On any type of material that does not fall under our contract pricing agreements, Iowa Laser gets a new or updated material quote as soon as a quote request is received. This allows us to verify material availability and avoids any ‘price or delivery surprises’ that can put you in a bind.  

With many types of materials becoming hard to find, Iowa Laser will continue to explore options in obtaining the lowest pricing and best delivery on steel purchases.  When the market stabilizes, Iowa Laser will resume negotiating longer term contract pricing. 

LONGEVITY AND LEADERSHIP    top

By Joe Barber, Sales & Marketing Manager

The qualities of leadership have always been studied in business, more heavily in recent years with CEO’s reporting record profits for shareholders, U.S. manufacturing companies losing overseas, and the economy fluttering one direction or the other.  

Leadership, as defined by Merriam-Webster, is:  an act or instance of leading; guidance; direction.  In today’s world of monetary leadership, this definition makes sense.  If a company’s CEO or president delivers profits or a large contract, they are an instant leader, regardless of their methods.  Money is a great motivator:  consistent lining of people’s pockets yields ‘star’ status.  Inconsistent or sparse returns yield new ‘leadership.’ 

Yet historically, leadership was defined through different criteria and over longer periods of time, which in my eyes reveals more leadership qualities than instant monetary success.  Delivering through the good and tough times proves resiliency and the ability to uphold integrity in many situations.  In a time when the longevity of customer contracts is crucial, aligning yourself with solid leaders makes more sense than ever. 

In 1981, Iowa Laser’s founders hired one of these leaders.  Little did Mark Baldwin know his core values would quietly help one of the first laser houses in the U.S. survive, privately-held, for 30 years and counting. 

Previously employed by Ford Motor Company, Baldwin took the helm at Iowa Laser, a technological start-up trying to support 2 employees.  Lasers were just coming on the scene in 1980, like hydrogen batteries of today (with nowhere near the hype), marketed less for manufacturing than as a neat, yet homeless technology.  Manufacturing wasn’t high-tech or high-vocabulary back then; black belts weren’t roaming the shop and kaizen was still an unknown Japanese word. 

Baldwin knew lasers could benefit a wide-range of industries more efficiently than older, less accurate technologies, including stamping or plasma cutting.  With a 1200 Watt laser stationed on a custom-built 24x48 movement table, the company trudged through winning and losing projects for many years, defining quality and service as the core of Iowa Laser.   

Through changing dynamics in manufacturing and word-of-mouth, customers began to recognize the company’s viability and honest relations, led by Baldwin’s continued presence.  Just 10 years into building a business with an unknown technology, Iowa Laser crossed the $1,000,000 mark in sales.   

Today, unique possibilities continue to bring flexibility to Iowa Laser.  With a customer list at 460+ across nearly 40 states, industry diversity provides a constant business cycle regardless of market conditions or time of year.   

Baldwin defined business transactions with the Golden Rule.  Little needs to be said about this core principle of existence; we all know that we should treat others as we would like to be treated.  However, business skews the line between integrity and opportunism quite often, depending once again on your definition of leadership.  

While many CEO’s struggle to resist compromising their core beliefs for dollar signs, Baldwin repeatedly demonstrated his integrity under pressure.  To truly understand what drives Iowa Laser’s business transactions, read this vintage letter written to a company offering Iowa Laser a $1,000,000 contract in 1995.  (Perspective:  Sales that year were barely $5,000,000.)

Baldwin lifted the business from $50,000 in sales his first year with 2 employees, to over 80 employees and sales above $12,000,000.  He accepted the CEO position at Iowa Laser in 1999 and welcomed long-time employee Sean Abbas to lead the company into the 21^st Century. 

Iowa Laser now employs over 150 employees and is tracking sales at $26,000,000 in 2008.  Supporting the company with a solid foundation of operational and fiscal integrity, Mark Baldwin has prepared a business you can be proud to work with. 

TUBE LASER SURVEY...   top

2 simple questions

Have you considered using lasers to cut tubing rather than sawing and/or machining?

If you or your customers needed a tube laser quote, is Iowa Laser on the list?

To discuss further, contact us at info@iowalaser.com and put "Tube Laser" in the subject line. 

QUALITY, A MOVING TARGET    top

By John Lamos, Quality Manager

When I started taking classes in Industrial Technology, my teacher asked “what is quality?”  It seemed like a very straightforward question, easily answered.  “Quality is a 12-month car warranty, or cable television, or curb and gutter streets.”  Obviously I’m dating myself, but in the eighties, that was quality. 

Today, those expectations are common place.  The definition of quality has changed, along with who defines it.  A provider’s role increasingly requires listening to the consumer’s needs/wants rather than a ‘take it or leave it’ attitude. 

The same applies to Iowa Laser.  Now more than ever, our customers dictate quality.  When there are specific requirements, although intimidating in some circumstances, they are measurable and clear enough to get our arms around.   The more difficult issue for our Quality staff is trying to define requirements that are not on a print - ‘moving’ targets, subject to interpretation. 

Case in point.  On a particular day a few years back, we were laser cutting flat blanks for a customer that happened to be auditing us at the same time.  I stood confident and reassured as this customer’s parts were being cut, knowing we were following our internal documented procedures, as well as the customer requirements. 

We laser cut and inspected the first piece, then cut the exact amount on the order.  We carefully deburred and stacked each part in a basket and moved the order to the rust inhibitor station.  After applying the preventative, we again neatly stacked each and every part in a basket and moved them to final inspection.  They were approved and moved to shipping.  Once the parts arrived in the Logistics area, they were taken from the neatly stacked basket, counted and again very neatly stacked into a box.  The box was cut to size, packed and taped securely to prohibit any movement in shipment.  A bar code was put on the box and the parts shipped same day.

I could not have been happier with our performance.  I just knew this auditor would have glowing praise of what he witnessed, compliments for our company, and use us as a benchmark against all of our competitors.  He would tell my boss how satisfied he was and all would be good, right?  We met or exceeded every one of his specified requirements:  on-time delivery, no rejections and price was within his range.  Everything was perfect.

Not really.  Each time he watched those parts get moved from station to station, he grew more frustrated.  What I didn’t know was he takes our neatly stacked and packaged parts and dumps them into a metal bin, where the parts are assembled, shot blasted, and painted.  What I considered a small burr, was nothing to him.  What I considered proper packing was an inconvenience to him.  What I considered a protective layer of rust inhibitor was completely unnecessary.  Quality to him not only meant zero defects, parts on time at the right price, but also me knowing the end use of his parts, a customer satisfaction we could find only with a facility visit. 

Whether clearly defined or ‘moving’, Iowa Laser is dedicated to meeting your quality requirements and discovering how we can further benefit your company.  As we begin working together, we will do our best to uncover your needs.  As time passes and our companies establish a firm partnership, integrating our companies is imperative.  Knowing facility visits are not always possible to see where improvements can be made, keeping the lines of communication flowing is next best.   

Tap into our resources!  If you, as a customer, have any issues that we might be able to help with, contact myself or your inside sales contact. 

PRESIDENT'S STATE OF LASER   top

By Sean Abbas, President

My Thoughts on Acceptance Speeches

Recently, Iowa Laser was honored by the City of Cedar Falls, Iowa, with the Community’s Continued Investor Award for 2008.  This is the third such award Iowa Laser has received for its continued expansion in the Cedar Falls Industrial and Technology Park. 

The city produced a short video on each of the award recipients that was played for all in attendance.  It was really quite interesting to learn about all of the businesses and projects happening in our community.  Of particular interest to me are the people behind the projects.  Their vision, commitment, willingness to accept risk, and positive attitudes are inspiring. 

After the video and a brief round of applause, some gentle ‘ribbing’ ensues as I walk to the stage for my acceptance speech.  I’ve never been a big fan of acceptance speeches.  Not because of the public speaking aspect, but because of the difficulty of what to say and more importantly, who to thank.  With a project like Iowa Laser’s 80,000 sq/ft expansion, there are hundreds of people that played a role.  Hundreds of people who deserve recognition for the role they played in making it happen.  How do you thank hundreds of people in two minutes?  You don’t and you can’t.  Here in lies the problem.  Each person deserves a heart-felt thanks and a pat on the back for a job well done.  What you end up doing is thanking a few, and leaving out many.

This little newsletter article won’t fix the problem either, and it won’t publicly thank all those who deserve it.  Perhaps it will cause all of us to take a step back, watch a video clip and think about all of the people who make big things happen.  I have been blessed to be surrounded by people that make incredible things happen.  I appreciate and acknowledge all the great things that you do.  It’s really important to me that you know that.

Click here to see the short video. 

ON THE ROAD AGAIN   top

By Matt Miller, Outside Sales

Google, MapQuest and Responsiveness

The 2^nd Quarter (Mar-May) brought 54 new companies requesting quotes from Iowa Laser.  Their respective industries showcase our flexibility across the manufacturing spectrum.   

One of the greatest perks of my position here at Iowa Laser is visiting these potential clients, experts within their industries with knowledge accumulated over many, many years.  Along with offering a nice balance to the other more grueling aspects of my position (like cold-calling), traveling outside the office keeps me on toes.  On a recent visit to Missouri, I experienced a not-so-fortunate aspect of traveling. 

I generally use MapQuest for directions, but I thought I’d try GoogleMaps this time.  Upon arriving near my destination, I turned along Hwy O, an old country road.  No fences lined the road, dogs chased my tires, yet fortunately it was paved.  Occasionally businesses survive in the middle of Nowhere, so I didn’t think much of the turn.  With springtime Missouri's rolling hills dotted with purple sumac and brilliant greens and whites, it wasn't a difficult choice.

Directions clearly stated my next turn was left on Quick Ave, which was gravel.  Again, I’ve found businesses shimmering in valleys just-over-the-next-hill before, and since Google and MapQuest are usually correct, I sped up after the turn in hopes of making my appointment on time. 

Just over the next rolling hill, though, things took a turn for the worst as ‘rolling’ became ‘cascading’ and I traversed into a steep decline, heading for a curve at the bottom of a valley.  I began sliding and considered heading over a culvert and into a field rather than flipping Laser 3, but the brakes on the Taurus held true and I got enough control to make the curve.  Through intermittent breaths, I laughed and cursed at the same time.  Barring the time I calmly handed Joe Barber his life back at a t-intersection in Muscatine, Iowa on my first road trip, this was about as close as I’ve come to serious car accident. 

After backtracking and making my appointment a few minutes late, I told the purchasing manager what took so long.  He described similar scenarios happening all the time, except they typically occur with full semi-loads of steel, and the drivers don’t get so lucky.  Backhoes and other large equipment have been called in to pull sandwiched semis from that hill.  “Fortunately, no one has been killed yet,” he said.  “The problem is Google and Mapquest pull their data from a U.S. mail mapping service, and getting help from either of those giants isn’t very easy.  We’ve tried numerous times and get no response.”   

Isn’t this the truth?  The larger an organization gets the more headaches it delivers when problems occur.  Most companies strive to handle 100% of the problems their customers advise on, some with more success than others.  I tried to resolve the inaccurate directions as well and experienced exactly the same.  Problem resolution seems to be a matter of process for these overgrown behemoths.  Not until my 5^th touch following their ‘process’ did I get the chance to send a fax to someone with a name. 

We here at Iowa Laser make every attempt to avoid such situations.  Over the last two years, we’ve seen a 25% growth in sales while expanding our facility by 80,000 square feet with new lasers, press brakes, and machining centers.  We've consolidated two buildings into one.  As if that’s not enough, we’ve added an equal amount of trained staff and are attempting to bring our shop into RF (radio-frequency) technology for more accurate real-time reporting. 

Delivering to you will become easier with everything we are putting into place, yet our goals are only so important.  They don’t matter while your customers are beating down the door with delivery concerns and quality problems, or you’ve just narrowly escaped a life or death situation. 

We are listening.  Let us know any concerns you have while we continue to manage the phenomenal growth your business offers us.   top