There is something to be said for “slow and steady wins the race”. This is certainly true with Exhaust Direct, a growing London company specializing in manufacturing a variety of automotive exhaust products including exhaust pipes, muffler straps and brackets for the automotive industry. They consistently see 15 – 18% growth year over year, with the last two years their best years ever (even in a difficult economy!) Their secret is a focused priority on exceeding expectations in customer service, manufacturing quality products using Lean Manufacturing principles, investing in their growth, and creating a culture that respects the value of teamwork.
Exhaust Direct began in Mississauga in 1997 with three partners in a small 1800 sq. ft. facility. Two partners (and brothers), Pat and Pete Bruder, bought out the company and moved it to London, their hometown, in 1999, taking advantage of lower operating costs. Setting up shop in a 3800 sq. ft. facility, they grew the company from 4 employees to 8, increasing sales, increasing customer service, and slowly increasing their product lines. The turning point of the business was evolving from being a distributor to manufacturing and distributing their own products at a lower cost and higher quality.
In 2003, business was booming, and they were bursting at the seams. With the help of BDC, they built a 9500 sq. ft. facility and grew to 15 employees, with products now shipping all over North America.
For President Pat Bruder, continued improvement is vital. With successful funding applications through the CME Smart Program and the Yves Landry Foundation, Exhaust Direct has been able to introduce Lean Manufacturing Training and optimize production runs. They have reduced the double handling of most products and on some of their top movers by over 400%, reducing production costs, and allowing the team to increase their production runs to meet sales demands. It has also allowed them to be cost competitive and compete with China and improve their customer service levels - 80% of their largest clients have next day delivery! The funding also allowed them to introduce an ERP system, allowing customers to order online. This will be launched in the near future.
Pat and Pete recognize they lack expertise in certain areas of the business, and do not hesitate to bring in the professionals. Six times per year, an HR consultant visits. Sandra Safran and Sharon Hunt have helped Exhaust Direct develop guidelines and procedures and Health and Safety processes, with all employees signing an agreement to be accountable for their actions, ensuring their own safety, as well as their colleagues. In 13 years of business, they have only had one accident. They also utilize their lawyers and accountants to tap into their skill set. It may be expensive, but the investment pays for itself multiple times over in the long run.
Three years ago, Exhaust Direct started benefitting from SR&ED tax credits. With their great rebates, they have been able to reinvest in new and improved equipment. It also allowed them to invest in renting storage space across the street from their facility, freeing up floor space to reposition equipment to improve process flow and production efficiencies.
To supplement sales efforts, they also sell their products on E-Bay. They have been shipping their products around the world to Australia, Hawaii, Alaska, China, the UK, and Sweden to name just a few of the markets they are reaching with their products.
In the years ahead, Pat and Pete are already planning an expansion to their existing facility (which was factored into the design of the building when it was built seven years ago) and will continue to slowly expand their product offerings when it makes sense to do so. They will continue to provide the best customer service experience to their clients, such as Speedy Muffler and Midas, where Exhaust Direct is a preferred supplier and support the ongoing training and development of their staff to expand their skills. Through detailed planning, ongoing innovation and thoughtful implementation, they will continue to reach their goal to be the best in their industry and a proud contributor to the growth of London’s economy. www.exhaustdirect.ca.
