Invest in Your Company – To Survive the Future!

Ken Lloyd, Peerless Saw

When the Peerless Saw Company completed its 80^th year in business this summer, a number of our friends asked "How did Peerless manage to survive all those years?". Well, a big part of the answer is found in the wise investments the owners made along the way. Dating back to the founding of the company in 1931, the Hodapp’s and the Callahan’s, probably invested most of their money at that time to a dream of building a successful business. In spite of the economic woes of the greatest depression our country has ever seen, these young men still risked everything they had and invested in their future. In hindsight, they made a wise investment.

As they bought equipment to speed production of their narrow band saw blades, they also expanded their small factory with punch presses and surface grinders to make circular saw blades. Drill presses were installed to allow reaming of the center holes and drilling, chamfering and countersinking pinholes. The whole factory began to change and soon they required more room. So, they purchased the homes and buildings surrounding their factory. In short order, they’d doubled the floor space and had room to expand for the next 42 years.

When the founders finally sold the company in 1973 to former Borden Corp. executive, Ted Montague, the nature of investment in the Peerless Saw Company took on a whole new meaning. Ted discovered he’d acquired a company with an excellent reputation for quality, manned by a very strong and knowledgeable workforce. But, for the last ten or more years, there had been little investment in plant equipment. Arguably the smartest businessman in the companies’ history, Ted set out to turn this small saw manufacturer around. The surface grinding equipment was worn out, so he rebuilt the Arter grinders with new Pope spindles. He installed a new cost tracking system to help identify the best place for future investment. Early on, it became clear that the company needed a new, larger factory to house his expanding business. In 1977, Peerless moved into it’s present location, a factory built specifically to meet the requirements of a saw manufacturer, including a central grinding coolant filter system. Shortly thereafter, he traveled the world in search of modern saw-making machinery. That’s when he discovered and purchased milling machines, punch presses and modern surface grinders specifically made for the manufacture of circular blades.

But, the best investment made by Mr. Montague was in 1981 when he gambled on the newest technology being offered at the time – laser cutting machinery. Rarely does a machine do so much for an industry as lasers did for the saw blade manufacturing business. It not only improved the quality significantly, but it greatly reduced lead times and cut costs. Delivery times fell from 10-12 weeks to 4-6 weeks. Output increased sharply, without hiring more workers. By becoming one of the first saw manufacturers in the world to embrace laser technology, Peerless shot ahead of its competitors. Quickly, Ted bought a 2^nd laser and soon expanded his building by a third. By 1984 Peerless operated three lasers and within a year, the company changed hands for the 2^nd time.

In 1985, the Hackman Corp. of Finland acquired Peerless Saw Co. The companies’ sales continued to grow and in 1989, the 2^nd most important investment was made: the purchase of a modern heat treatment system. This investment helped the firm improve and control its quality as well as reduce costs and lead times.

 Fast forward to 1999 and two Peerless managers, President Tim Gase and Sales Manager Ken Lloyd joined forces to make a big personal investment of their own. They executed a management buyout that brought the company back into American ownership. Through the next twelve years, significant investments were made in computer operating systems and communications. Recent investments of note include new machinery for arbor hole finishing, smithing, tensioning and additional heat treatment and grinding capacity.

The current owners always have a long shopping list and the management team devotes considerable time toward studying those investments that will bring the greatest return in the shortest possible time. As Ted Montague used to say, "Opportunity knocks every day, but you must be prepared to answer with the right investment." The owners of the Peerless Saw Company try to follow that good advice.

You can contact Ken Lloyd at  800 973 3753 or kenl@peerlesssaw.com

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