WE’RE PROUD OF THAT FACT—THAT SUCH A SIZABLE INVESTMENT WAS MADE WITH AMERICAN MACHINE BUILDERS. WE’RE PART OF THE AMERICAN MARKETPLACE, AND WE WANT TO HELP IT RECOVER.
- Mike Uhrenbacher, pewag Inc. President
Photos courtesy pewag, Inc.
to its destination on time. What also goes largely unnoticed is the ripple effect that a particularly harsh winter, like the one just experienced in the U.S., can have on specialized industries that rely on unobstructed import channels to deliver their products on time. As Uhrenbacher explained, “You don’t read much about it, but a lot of shipping got backlogged this winter. We had major trouble getting containers in from Europe because the ports in New York, Montreal, even the rail lines—everything was backed up.” Shipments that would normally take four to five weeks to
deliver earlier this year were sometimes taking up to ten weeks. And whereas plans for the Pueblo plant had been set in motion in 2012, this year’s winter woes merely stood as a reminder that the right decision was made. “We wanted to eliminate a lot of that by having production here,” Uhrenbacher said. “And of course, it was much more cost effective. You save yourself shipping costs, time, all the fees. And eventually, like the plants in Austria, we’ll have our production capabilities streamlined over here to where we can price our products much more competitively.” A third reason for a manufacturing plant in America addressed the issue of access. “We looked at multiple locations, especially in the Midwest, and Pueblo ended up being a bit of a coincidence.” Uhrenbacher knew that 70 percent of the snow chain market was between Denver and the Pacific Coast, but it took a casual suggestion by a sales rep to reveal what was, in many ways, hidden in plain sight. “He said, why don’t we just put the plant in Pueblo? Tere’s a steel mill already there; it’s close to Denver; it’s a smaller, close-knit town; and most importantly, Pueblo would love to have us.” After about a year of looking, the pewag Inc. team indeed
chose Pueblo. Development and construction of the facility took another year. And in May, the city of Pueblo rolled out the red carpet for pewag’s flagship North American manufacturing plant. “Te chain-making machines are all European, but the electroplating, the galvanizing, and all the assembly components were sourced here in the U.S.,” boasted Uhrenbacher. “We’re proud of that fact—that such a sizable investment was made with American machine builders. We’re part of the American marketplace, and we want to help it recover.” Te new Pueblo plant will manufacture everything in-
house—from raw wire to the finished chain. Te steel is sourced
locally, as well—literally across the street from the facility for most of it. Distribution will now flow nearly effortlessly to customers in every direction, and especially for the steadily emerging base from Denver and everything west, and all the way to Alaska. Uhrenbacher can’t emphasize enough the importance of being able to assist U.S. companies by allowing them to have easier access to a product known around the world for its strength and ingenuity. “It gives us so much pride and purpose to invest in the market where our customers are, where our business is. “We also think this approach will resonate with our customers—made in America, for American customers. We want to change the rules of engagement in the chain industry. A lot of truckers and industry businesses aren’t even aware of the quality of what they’re buying—mainly because they barely have a choice anymore. We want to give them an alternative.” Whereas there still exist some quality chain companies in the U.S., Uhrenbacher knows that they’re under more and more pressure to either move their productions overseas, raise their prices, or make a cheaper product. None of these options are being considered by pewag Inc., and the new Pueblo plant highlights this reality. “We want to sell on quality and service, and not just price, and the customer realizes that. A chain is a safety device; it’s an investment—and we’re trying to get a message to our customers to consider the quality of what they’re buying. We know the message is being heard; otherwise, we wouldn’t be in this position to build a plant.” Inevitably, Uhrenbacher urges the U.S. marketplace to understand that this is just the beginning for pewag Inc. in this country. Teir biggest market share is in snow chain, but they plan on additional product lines. With several hundred distributors spread out across the country, it shouldn’t be long before the world’s leading chain manufacturer hits its stride in this country. As Uhrenbacher sees it, this would be a fitting result. “No other chain manufactures are making these investments in America right now—taking these risks, essentially. But we’re convinced that our customers will benefit from it in the long run. And most of all, we’re convinced that they deserve it.” y
WIRE ROPE EXCHANGE JULY-AUGUST 2014 27
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