Raymond generates explosive sales growth

GREENE — In the last half decade, the Raymond Corp. — a global provider of lift trucks, forklifts, and material-handling solutions based in Chenango County — has seen its sales explode. 

“Since late 2010, our sales are up 300 percent,” says Timothy Combs, the company’s president for sales and marketing. “Just in the last three years, the industry has experience compounded annual growth of 6 to 7 percent. Electric truck sales are up 9 percent over the last two years and are projected to increase 11 percent this year. Raymond specializes in manufacturing electric fork-lift trucks that are especially popular for moving materials in distribution centers. I think part of our rapid growth is driven by the increase in online sales, which, in turn, has spurred the construction of more distribution centers.”

To keep up with orders for its forklift trucks, Raymond just completed a 47,000-square-foot expansion at its Greene plant. “The addition to the existing facility includes the new Raymond Operations Center, office space, team rooms, break rooms, a 60-foot high testing bay, and an employee-fitness room,” adds Richard L. (Rick) Harrington, senior VP of operations. “The addition, plus reconfiguring some space on the shop floor, has freed up 60,000 square feet of badly needed production space. We have also upgraded our technology by installing automatic welding machines and advanced laser-cutting technology. These investments have allowed us to triple the number of units produced daily. In addition, we have evolved our logistical plan with just-in-time delivery of equipment and materials and upgraded our warehouse-management software and the warehouse facilities to create more efficiency in the operation.”

The Raymond Corp. was a pioneer in developing this industry. The first forklifts were crude attachments to tractors, developed in World War I because of the shortage of manpower. George Raymond, Sr., an engineer, bought the Lyons Iron Works in 1922 with an eye to making this new product more efficient. He patented the first, double-faced wooden pallet and the hydraulic, hand-pallet truck in 1939. In the 1950s, the company designed the first, narrow-aisle forklift, which revolutionized the construction of warehouses and distribution centers.

George Raymond’s commitment to quality and constant improvement still guides the company, which now employs 2,200 people total — including more than 1,700 at the Greene plant. The second manufacturing plant in Muscatine, Iowa and a parts-distribution center in Syracuse account for the remainder of the employees. The Greene facility sprawls over about 600,000 square feet, and Muscatine adds another 168,000 feet. Both plants are owned by the company. Raymond also owns 60,000 square feet at the Syracuse operation and leases 160,000 square feet in Syracuse. The enterprise owns another 77,000 square feet and leases space in Greene and Binghamton. Globally, Raymond has 59 distributors that offer sales and service, of which 22 are in North America. Raymond retains a majority ownership interest in dealerships. The Business Journal estimates Raymond’s annual sales at $750 million.

Raymond, which is part of the $8 billion material-handling group of Toyota Industries Corp. (a $26 billion company), “… operates multiple shifts,” notes Harrington. “The fabrication section runs three shifts a day, welding runs two, and assembly one. Our forklifts are made to order in a production process that takes five days: Day one we cut the metal, day two we weld it, day three we assemble the components, paint the vehicle on day four, and test it on day five before shipping it out the door. The process consumes 210,000 pounds of steel every day, and we ship out, on average, 79 vehicles at a sale price of $25,000 to $35,000. (The cost of a battery adds another $6,000 to $12,000 to the total customer price.) Out of 250,000 forklifts manufactured yearly in North America, Raymond is producing 20,000 just in Greene.”

While recognized as a leader in the forklift industry, Raymond also offers fleet-management and warehouse solutions. Its automated storage-and-retrieval systems can be tailored to a distribution center with a compact footprint, offering conveyor systems, vertical and horizontal carousel systems, a radio-shuttle racking system, industrial robots, in-plant modular offices, and automated guided vehicles. “Our goal is to optimize not only warehouse space but also operations,” notes Combs. “Raymond knows how to make a difference in a customer’s bottom line. We’re staffed with professionals who can evaluate a company’s needs, recommend the right products and equipment, and utilize space more effectively to maximize the customer’s investment.”

Competition

Raymond competes against industry heavyweights, such as Crown Equipment and NACCO Industries, Inc., which makes Hyster and Yale trucks. “This is a very competitive business,” asserts Harrington. “The secret to our success consists of a lot of moving parts: our investment in R&D; dedication to constantly improving; employee training; the drive to eliminate defects; communicating with our customers, vendors, and employees; creating a supportive company culture; and meeting customer expectations. Of 2,200 employees, over 200 are focused on research and development of new and improved energy sources. They are also focused on automating our forklifts both to control the long-term costs and to compensate for the difficulty of finding drivers today. People just don’t seem eager to work in a warehouse. Our research efforts have generated hundreds of patents over the years.”

Harrington also touts the company’s commitment to “kaizen,” which in Japanese means good change. “Good ideas don’t just come from the top of an organization,” continues Harrington. “Everyone needs to believe in continuous improvement,” an idea popularized by Dr. W. Edwards Deming in his book ‘Out of Crisis.’ “Raymond focuses on building quality into our products in the first place. Improving quality and productivity decreases our cost. We have a kaizen wall here where all our employees contribute suggestions. We’re on track to receive 40,000 suggestions since the program was implemented in 2006.”

“In the final analysis, our employees really make us competitive,” asserts Combs. “They are well trained and hard working. There are also no barriers between departments; we work as a team. The environment here feels like a family business, because we care about all of the employees. It’s a great place to work … This Thanksgiving, Raymond gave away 2,100 turkeys to the staff. We didn’t just hand out vouchers to be redeemed at the supermarket; rather, we handed each employee a bird.”

Hiring challenges

Finding qualified workers for a world-class manufacturer in a rural setting is not easy. “Raymond certainly competes well for talent with our salary-and-benefits package,” affirms Harrington, “but we need to be proactive in our recruiting and retention efforts. After nearly a century in business here in Greene, ‘Raymond’ is still not a household word. I’m amazed at the number of people who drive by, see this huge plant, and have no idea what we manufacture. That’s why the company works very closely with area universities, such as Cornell, Binghamton, RIT, and Clarkson, to offer internships. We support local and regional job fairs and partner with the Society for Human Resource Management. Raymond also works closely with BOCES and area high schools to sponsor onsite tours and programs. This past October, Raymond hosted 250 area high-school students for National Manufacturing Day, a program here at the Greene plant that drew students from 12 area schools. The purpose of the program was to demonstrate how STEM (science, technology, engineering, and mathematics) careers can be exciting, challenging, and rewarding.”

Recruiting in a rural setting, name recognition, and competition are not the only challenges Raymond faces. “Our truck corridors are not adequate,” intones Harrington, “and we can only utilize rail from Syracuse. Route 12 runs right past the plant, but the state hasn’t made an adequate investment in road upgrades to service the number of trucks we load daily. Fortunately, we have a municipal-owned electrical grid, so the electric rates are low. There is, however, no natural-gas line into which we can tap. We have been working on the problem for years, but progress is very slow.”

Prior to joining the Raymond Corp., Combs was the senior VP of sales and marketing for Fujifilm Graphic Systems USA. He later became the general manager of Associated Material Handling Industries, Inc., a Raymond sales-and-service center located near Chicago. He moved to the position of executive VP of Raymond’s sales and marketing and later also assumed the leadership of distribution development. Harrington worked as the quality auditor of Universal Instruments in Binghamton before joining Raymond in 1983. He served as the VP of U.S. manufacturing and VP and general manager for Raymond’s Greene operations group. He was promoted to senior VP of operations in 2015. He earned an MBA at the Binghamton University School of Management.

Honors

Today, material-handling vehicles represent a $150 billion industry in the U.S., according to the Electric Power Research Institute, and more than 61 percent are battery-powered. Raymond is recognized as a leader in the industry. “Don’t take my word for it,” says Combs. “Last year, Industry Week magazine recognized us for a best-plants award. This year, the Frost & Sullivan Manufacturing Leadership Council presented Raymond with a manufacturing award for operational excellence. The award is granted to those companies which are shaping the future of global manufacturing through innovation and customer response. This year, the company also received an award from the Association for Talent Development. We were recognized for results achieved through the use of practices and solutions from the entire scope of talent development. The award is given to companies which deliver measurable business results in achieving organizational goals.”

On a wall in the Greene plant is a sign that reads: “Run better, manage smarter.” The explosive sales growth at Raymond suggests that the company is taking its own advice.