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Business Exchange

CALIFORNIA DREAMING

By:Teresko, John
Publication: Industry Week
Date:Wednesday, March 1 2006
Subject: Machine tool industry, Entrepreneurs
Location: United States
HEADNOTE

The entrepreneurial spirit struck Gene Haas at the machine-tool industry's lowest point-the 1980s. The Japanese were going head-to-head with the U.S. on price-and winning. Scores of U.S.-based machine-tool manufacturers closed shop. Gene Haas became a customer whose needs weren't being met, so he started his own business. Today, Haas Automation Inc. is the largest volume producer of CNC machines. And as far as Haas and his executive team are concerned, it's going to stay that way.

IMAGE ILLUSTRATION 1

THE FOLLOWING WAS OVERHEARD AT HAAS AUTOMATION INC., OXNARD, CALIF., RECENTLY: "MAKE MACHINE TOOLS IN CHINA? . . . AND MISS THE BARGAIN RATES ON ALL THE EMPTY CARGO CONTAINERS RETURNING TO CHINA?"

Behind that quip is a lot more than the company's policy of making everything at its Oxnard, Calif., headquarters. While manufacturing is local, customers are global. Its business model is built on management's intimate involvement with, product, process and technology-enough to establish and grow a global leadership position via customer value and even enough to be emulated by (gasp) some Japanese manufacturers! (The company refers to its relentless pursuit of excellence as "The Haas Way.") Gene Haas, president and owner, readily admits that he didn't set out to become a machine tool manufacturer-much less a global leader.

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