By Brenda Showalter, The Republic Reporter
SHELBYVILLE — Despite the downturn in the automotive industry, Ryobi Die Casting USA Inc., is a growing company that plans to expand in 2006.
A manufacturer of aluminum die casts for such companies as Ford, General Motors and Toyota, Ryobi has expanded seven times since it opened in 1985.
Company officials credit the business’ success with its focus on high-quality products, response to customers’ needs and appreciation and support of its employees.
“We’ve invested time and training into how we treat our people,” said Allan H. Schwegler, Ryobi’s director of human resources.
The company, the third largest employer in Shelby County, offers several incentive and rewards programs for its 600 non-union workers, including financial rewards for making money-saving suggestions.
In recent years, employees have received $90,000 for suggestions that saved Ryobi $3.5 million.
Employees work three shifts with starting pay at $10.14 per hour and average pay at $15 to $16 an hour.
Forty-four people also work in the engineering areas at the Shelbyville plant.
The company prides itself on its dedicated work force and the quality of its product and operations.
Ryobi has received several local and state business awards, recognition from its customers and quality certifications.
Ryobi officials say one of the reasons they selected Shelbyville as the site for its plant was its central location, which is close to its customers in Michigan, Ohio, West Virginia, Tennessee and Alabama.
Wendy Walters, human resources manager, added that the company found the Midwest work ethic desirable with plenty of workers to take on manufacturing jobs.
“Shelbyville welcomed, even pursued, Japanese-owned businesses to its new industrial park back in 1985,” Walters said.
International business
Ryobi is a subsidiary of Ryobi Limited (Japan), which was founded in 1943 and has other die-casting operations in Japan, China and Ireland.
Shelbyville is the only U.S. location for the company that makes aluminum die casts for several automotive companies. Its two largest customers are General Motors and Ford.
Ryobi also is a supplier for John Deere, which uses Ryobi’s die casts on its lawn tractors.
The Indiana business operates on a 60-acre site on Mausoleum Road and has 560,000 square feet in its four buildings.
Ryobi purchases aluminum that is melted in 1,400-degree furnaces and poured into molds to make 45 products.
Machining is done for a portion of its customers, but that work could increase, depending on customer requests, said Kent McNeely, Ryobi safety specialist.
Changes in recent years have included streamlining operations, including some use of robotics.
McNeely noted that no employee jobs were lost because of the automation, and it helped reduce some worker injuries.
Ryobi also has learned to become more efficient, Walters added.
This effort includes improving hiring procedures to find the best workers who are rewarded financially for high-quality work.
“It makes people feel like the company appreciates them,” Walters said.
Positive outlook
Company officials see a bright future for Ryobi, including growth and diversity in its customer base.
Walters said the company seeks new customers, but word of Ryobi’s quality products is bringing customers to them.
“We’re the class act of suppliers in our industry. Our customers come to us,” said Schwegler, who is retiring at the end of the year.
He also disagrees with those who say the automotive industry is declining. He said people will always buy cars and trucks.
Ryobi can be successful by seeking the auto makers that are successful.
By manufacturing aluminum parts, Walters added, Ryobi has the advantage of offering its customers a lightweight, durable product that auto makers will consider as they redesign and improve their vehicles.
“There is potential for growth,” said Walters.