TEAM Industries

Source: Manufacturing Digital

Date :04/01/2008 15:52:52

Using design engineering and continuous improvement to stay ahead in the race, drive-train manufacturer TEAM Industries is excited by the potential for global growth

Written by Ian Armitage and Produced by Kristin Hurley

A drive-train specialist for all-terrain vehicles (ATVs), snowmobiles, golf and utility carts, as well as other on/off-road vehicles, TEAM Industries lives and breathes perfection.

Founded by Don Ricke, the company began as a contract manufacturer for the recreational vehicle market and has quickly expanded its focus and grown into seven manufacturing locations in the US.

TEAM and the snowmobile industry developed symbiotically in the 1960's and working with several OEMs, TEAM has contributed innovative solutions for drive-train, engine, suspension, and other components.

“We’ve enjoyed tremendous success over the years,” says David Ricke, President and CEO. “Our services include design engineering, research and development, rapid prototyping, testing, manufacturing and assembly.”

David has been President of the company since 1991, when he replaced his father. Under his stewardship the company has enjoyed rapid expansion, particularly in the 1990s.

“We now have over 850,000 square feet of manufacturing space and are proud to employ approximately 1,300 highly skilled people that are dedicated to creating superior drive-train and chassis products for a variety of markets,” he adds. “Future expansion is definitely on the cards and we are very excited.”

Approximately 60 percent of the manufacturing business consists of proprietary products, and 40 percent is contract manufacturing for the likes of Honda, John Deere, Ford, Dana, Eaton, CNH, Polaris, Ingersoll-Rand, Kawasaki and Yamaha.

Indeed, over the years, TEAM Industries has partnered as solution providers to numerous customers. “Our vision is to be the leading engineering and manufacturing company providing technologically-advanced products and services in diversified markets,” continues David. “We have worked with many of the big names and will continue to do so.”

Rural locations

Six of the company’s seven manufacturing facilities are based in rural northern Minnesota, with one other in rural Andrews, NC. “Each location has around 250 employees and has a bit of a specialty, supplying parts to the final assembly operation in Bagley, Minnesota,” David says. “We like to create a family atmosphere and utilizing rural locations helps us do just that.”

TEAM is renowned for its design engineering capabilities, which began when it was presented with an opportunity to jointly develop a transmission for an existing customer. Since then, it has expanded its range considerably and has also branched out into traction control products, wet brake products, and continuously variable transmissions.

“Customers rely on us to solve several problems. They depend on us to design products for their vehicles and make it perform well,” says David. In order to achieve this goal, TEAM Industries has consistently invested in technology to make it a vertically integrated organization with a strong emphasis on design innovation.

Continuous lean improvement

As a leader in drive-train technology, TEAM Industries needs to be innovative if it is to differentiate itself in a competitive market; the company is also looking to reduce costs and improve efficiency. To do that, TEAM relies on a variety of continuous improvement methods and has invested considerable sums in updating several internal practices and systems.

“Lean manufacturing techniques are important,” says David. “You can always find a better way to do something. We’ve done dozens of kaizen events to streamline our operations and we remain committed to doing so. However, we won’t compromise quality, so it is about striking a balance.” Ultimately, David wants to reduce waste and do more with less.

Future potential

Under pressure from overseas manufacturers, TEAM Industries faces a daily challenge to become even leaner. Efficiency improvements will lay the foundation for future growth. The company sees its growth in numerous areas, and the outlook is much brighter today than it was just 18 months ago. According to David, green markets will be an area of significance for all manufacturers in the future.

“There is a lot of opportunity in new environmentally friendly markets,” he says. “Demand for a new type of green vehicle, which will replace the technology we rely on today, is very high. The future lies in this green push and we feel we can bring our unique and extensive knowledge to these new markets. If we manage to do that, we will remain viable in the future.”

For the last five to ten years, demands to reduce cost have been very high; David already mentioned the company’s drive towards lean, and we all know of the increasing pressures from China. However, the way the market is turning, according to David, is working in TEAM’s favor, especially at the moment. The devalued dollar, he says, has resulted in increased demand for the products the company manufactures and distributes. “In Europe, there is a 30 percent difference in currency and that is making us a very attractive option. Demand is high and we are pleased with the number of orders we are currently receiving,” explains David.

There is also increasing potential in Asia, and next year will see TEAM open a joint venture in India with the RSB Group. This fits in with David’s plans to diversify and branch out into new markets. “We are looking to attract new custom from markets we have very little involvement in at the moment,” David comments.

“We are starting a joint venture in India and that is geared towards supplying directly to the Indian market. What we are focusing on is CVTs and transmissions to sell into the automotive market in India. That market is going to be very different to what we experience in the US. They need small vehicles, which are inexpensive and we are working towards supplying vehicles that the masses can afford. The date to be up and running is next July, so it is an exciting time.”

Stark contrast

There are numerous opportunities open to TEAM around the globe. This is in stark contrast to the market conditions the company experienced a little over 18 months ago. The market has transformed – there are growing economies in China, India and Asia and TEAM is looking to capitalize on opportunities in each of those markets.

“I think the opportunities will be there for a number of years,” says David. “I would say the year before this was a struggle. This past year has turned around and a lot of opportunity has come our way. Today we are looking as strong as we ever have. I’m excited.

“Our aim is to expand our product offerings in existing, as well as new markets, such as green markets. We will also advertise a lot more in all markets. In five years, if we have made headway there I would say we had been successful.”

TEAM remains globally competitive through innovation in manufacturing engineering and product design. It is ambitious to exploit potential in new and existing markets and its dedicated engineers continue to push the boundaries, broadening applications and advancing drive-train technology. This, coupled with TEAM’s superb experience and industry knowledge, ensures customers that TEAM will remain a strong player well into the future.