Galland Henning Nopak: What�s Old is New Again

Corporate Spotlight

Saturday, 01 March 2008

Galland Henning Nopak: What�s Old is New Again - American Executive - RedCoat Publishing

Dan Steele details how he injected new life into an old fluid power manufacturer.

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Nopak Canada

Like many a well-tenured salesman, Dan Steele had big ideas for the company whose products he represented for 30-plus years, Galland Henning Nopak, Inc. (GHN). But unlike a rep that ends his or her career thinking of what could have been, Steele actually got the opportunity to pitch his ideas to the company’s board of directors.

Dan Steele

Even more out of the ordinary was the board’s response: You’d make a great president; want the job?

“I said, ‘You’ve got to be kidding me,’” Steele recalls with a laugh. “They asked me to name my conditions, so I did. My conditions were accepted, and I became president of the company in April 2007.”

At 74-years-old, Steele was an unlikely choice for the job. But the former sales rep had new ideas for the 121-year-old Milwaukee-based fluid power manufacturer—ideas that are now positioning the stagnant company for long-term growth.

Pneu products
For 80-plus years, GHN has been manufacturing heavy-duty hydraulic and pneumatic cylinders to distributors across the country. On the frontline for 30 of those 80-plus years, Steele learned GHN’s distributors and customers wanted something new from the company.
“Many of the customers I called on wanted a light, inexpensive cylinder line,” Steele said. “So we decided to give it to them.”

As soon as Steele began his new role as president, the company began work on its Pneu-Pak line of economy cylinders—simple fluid power products that don’t offer custom modifications.

Although a new product line can be a giant leap for some companies, it was a small step for GHN. Because of the company’s experience and expertise in building cylinders, designing the barebones product line was a snap. According to Steele, “we just had to finesse our operations a bit.”

The newly designed cylinder has been life cycle tested for up to 2 million cycles, and the company is now expanding its operations to handle production of the new line. GHN is on schedule to launch the Pneu-Pak cylinder line in April, just one year after Steele became president. And a new line of pneumatic valves is already in the works.

“Our distributors are awaiting the new product lines,” Steele said. “And we’re looking forward to their introduction.”

People and places
The new product lines aren’t the only projects Steele busied himself with when he became president. The former sales rep is also working to expand GHN’s sales focus.
Currently, the vast majority of GHN’s customers are distributors who call on companies that have cylinders in their plants and are in need of replacements. The goal, Steele said, is to add more distributors that have the expertise to help obtain OEM customers for GHN’s products.

And the company doesn’t just want to add distributors with more technical savvy; it also wants to add distributors outside the continental US. Steele said the preliminary goal is to expand into the Pacific Rim and Australia, testing the waters to see how the company’s cylinders and valves will be received around the world. (GHN’s recycling and baling product line is already sold worldwide.)

By launching a new product line and expanding its sales focus, the company anticipates seeing a 10% to 15% increase in revenue within three years. It’s growth that will require the company to expand its operations, most notably with qualified, experienced people. That’s why Steele has also worked to make GHN a company that retains its people.

The company has the oldest profit sharing plan in the state, and, under Steele, GHN is setting up a 401K plan and increasing its efforts to send employees to school for additional training and certification.

“It’s tough to find skilled people, so we anticipate doing a lot of promoting from within,” Steele said. “All of our efforts will make it easier for us as we grow. We won’t have to go fishing in a shallow talent pool for good people.”

Steele is quick to point out he hasn’t taken on this whirlwind of changes at GHN over the past year by himself. The company focuses on team management, he said, with leaders from all parts of the company taking part in the decisionmaking process. As a former sales rep with big ideas, Steele said he recognized how important it is to get input from as many people as possible before making decisions.

“We’ve worked together to do some big things in the past year,” he said. “I told the board I’d like to stay on, but at 74 years old, I don’t know for how long. But before they kick me out, I’d like to see these big projects completed because I’m having a great time doing it.”

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