The technology behind Norgren’s core product is mature, but Jim Mannebach says creative applications helped his company top $1 billion in sales.

Norgren, Inc.’s core technology was literally sketched on a napkin during a meeting with a customer some 75 years ago (a napkin that, by the way, remains securely stored in company archives).

So it is not without wonder that Jim Mannebach, president and CEO, looks at the company’s record $1.2 billion revenue in 2006. “It’s fairly late into its lifecycle. You would think that someone would have come up with new technology to replace it.”

But no one has. Norgren is one of the world’s leading manufacturers of pneumatic components and automation systems, including cylinders, valves, air line equipment, tube fittings, and associated fluid power components for use in pneumatic and electro-pneumatic automation and control systems. And Norgren’s engineering teams ensure that the technology still has plenty of application, from the ultra-fine control of a dosing valve for a child’s respirator to the arduous environment of on-board vehicle suspension systems.

“New, mini-lifecycles keep popping up from applying the technologies in innovative ways,” Mannebach said. “We are able to take existing technology and existing products and adapt them in creative ways.”

Based in Littleton, Colo., Norgren is part of Birmingham, England-based IMI (Imperial Metal Industries), a $2.6 billion international engineering conglomerate with related businesses serving the HVAC, oil and gas, and retail beverage dispensing sectors. As the largest platform business within IMI, Norgren represents some 40% of the company’s revenue and is enjoying steady growth (up 13% year over year) and profitability (2006 margins of 13% versus 12.2% in 2005).

Mannebach believes the company’s longevity is due in part to a level of comfort felt by engineers. “There are a preponderance of engineers who tend to fall back on pneumatics as a solution because they are familiar and comfortable with it,” he said. “They might be able to get that control with an electronic solution, but there is a comfort with the technology.” The other reason is cost. Often, pneumatics turns out to be the more cost-effective solution. “I’m not complaining; it provides us opportunities for new lines,” Mannebach said.

Take Norgren’s fittings business, for example. Norgren was an early innovator of push-in fittings for the automotive industry. The company was recently approached by a major truck manufacturer experiencing high failure rates in the maze of vacuum and air hoses under the hoods of its big rigs. Norgren engineers came up with an innovative next-generation fitting that features low insertion force (assemblers don’t have to jam it in), and an audible click (an industry first) that lets assemblers know it is properly installed.

“That came from working with customers intimately,” Mannebach said. “We asked ‘What are your problems?’ rather than looking at how we can take another tenth of a penny out of the cost of a fitting. We focused on the customer’s pain in having to put trucks back on the line to get rid of air leaks.”

On the healthcare side, Norgren has adapted miniature valves from Switzerland for use in compact oxygenators, which its manufacturer hopes to one day see placed next to emergency defibrillators in public places. “That’s another example of our people working with the customer and seeing that if we could just make it smaller and easier to use, it could be right there next to the defibrillator helping to save lives. It involved sitting down with a customer, looking at the marketplace, and adapting our product.”

At heart, Norgren is a manufacturing company, so execution is critical. “Success involves having the right product at the right quality, the right quantity, the right price, and at the right time,” said Mannebach.

Therein lies the source of much of Mannebach’s personal and professional satisfaction. There is a distinct joy to manufacturing, he said. “With that many activities in play at once, it never works out the way you thought it would. There’s always a challenge, always a new opportunity.” And Mannebach finds that diversity of experience amazing. “Once you hone those skills, they are transportable to anywhere else in the world.”

With a network of 30 plants in Europe, America, and the Pacific (and 300,000 part numbers to keep up with), demand forecasting is crucial. “If a guy needs a product because his line is down due to a broken actuator, he needs it now,” Mannebach said.

There’s also the ongoing challenge of attracting and retaining the best talent. Here, Mannebach has worked closely with Norgren’s HR staff to develop a methodical succession planning process. “Glancing at a color-coded chart, we can review all of a German colleague’s people, for example, and see who are the next two or three people ready to step up,” Mannebach said.

“We might see that someone has expressed interest in Asia. Then we can develop action items based on these people and plug them into the leadership development process that IMI has developed. It enables us to start the year with a clear picture of who we need to recruit for the next year and what development issues we need to address to get the next level of folks ready to move up.”

Steffen Smith is an Atlanta-based writer and can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .