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FCC gets lean to compete on global stage

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Though a prominent player in the fast-food industry, FCC Commercial Furniture in Roseburg, Oregon, is anything but quick and disposable. The company enjoy decades-long relationships turning blank spaces into restaurants for industry leaders like Taco Bell, McDonald’s, and Burger King. Before a burger or taco is served, FCC has transformed the space into its signature and efficient look.

“We provide the entire design package, from concept to idea, all the way through manufacturing and install,” said Preston O’Hara, FCC general manager. “It’s a turnkey operation.”

For nearly fifty years, FCC has provided the ever-changing look of notable operations, like southern California-based In-N-Out Burgers. O’Hara estimates the company does close to twenty percent of all new Burger Kings and 15 percent of all new McDonald’s.

“We take that building shell and we fill it with products, a lot of which is custom designed,” O’Hara said. “We manufacture everything here.”

FCC began in Oxnard, California. Founded by Robert Crowe, FCC continues to be a family-owned business with sons Scott, Mick and Gary Crowe. The Crowes moved FCC to rural Roseburg in 1993, largely for the quality of life. The business continued to thrive.

Gary Crowe is currently the CEO and Scott is head of research and development.

DSC_0499-a1On site the company has an upholstery shop, a fiberglass shop, a metal shop, and others all under one roof covering 150,000 square feet of operations.

“We have a lot of cool machinery,” O’Hara said.

When O’Hara mentions “turnkey” he means it, stressing every detail is made right there in Roseburg.

“Right down to the garbage can with the ‘thank you’ door and the trey catch… it’s all built here,” he said.

Despite the similarity of say a McDonald’s in Hartford and a McDonald’s in Honolulu, each store has its unique needs and design. FCC caters to franchise owners with urgent needs of budgets, timelines and stresses.

“It’s an interesting business to be in with a constant state of change in design,” O’Hara said.

Diversification and competition

Despite a bucolic lifestyle in southern Oregon, global economic pressures and manufacturing competition demand vigilance, O’Hara says.

“Being in this industry there’s a lot of pressure to buy things in China and outside of the U.S. We fight to stay competitive despite the price pressures we have seen.”

The company currently has 115 employees that includes a large design department of college educated professionals, recruited from around the nation.

“Expectations are also high. It’s not a company where you can go through the motions,” he says.1795520_10152360075928515_2487356907202713326_n

Despite its longstanding relationships with global corporations, FCC had to weather and evolve during The Great Recession. It was not immune to cataclysmic changes in the economy.

After “record years” in 2007 and 2008, “everything changed,” O’Hara said. “We saw a huge decline over 2009 and 2010. Access to investment dollars for our customers went away despite their excellent credit. That was certainly something we didn’t expect to see, because this is an industry that is fairly resilient to downturns in the economy. That wasn’t the case this time around.”

Though the business has rebounded in recent years, it remains highly volatile. After another record year in 2012, O’Hara said the company has seen revenue slide over the past three.

“But we’re looking towards a recovery in the year ahead and next year,” he says.

The volatility of the market has helped the second-generation family-owned business retain its competitive edge.

fcc6“Diversity makes you stronger and gives you perspective,” says O’Hara, who was promoted to general manager after rising through FCC’s human resources department. “If you survived through ‘The Recession’ you gained perspective that you need to plan a whole lot better and strive that you stay away from that spot again. For us, we’ve been resilient, we’ve been around for a while, but we’re even more resolved toward diversifying.”

Diversification includes expanding into retail markets outside of the fast-food industry. The company is close to finalizing a large contract with a major retail vendor that will significantly help 2015’s revenue. O’Hara said the company has begun to court and provides retail fixtures and displays for the likes of Nike, North Face and Columbia.

And a silver lining of the recession has been the slow shift of manufacturing back to the United States.

“I wouldn’t say that the price pressure ever goes away,” O’Hara says, “but people are frustrated by Chinese-made products. There are reasons for that. We won’t deviate from producing quality products and providing outstanding quality service. That’s what we are founded on. At the same time we have to drive down our prices.”

Concentrating on culture

Price pressure, diversification, competition. All common phrases in the business economy, but another go-to-point of emphasis sets FCC apart in O’Hara’s mind: culture.

“The thing you will hear us talk about more often than not has to do with our culture and our people. It’s something we hold near and dear. It’s special. It’s amazing how much you can get from people when you promote excellence. We don’t tolerate negativity. We believe in having fun at work. It’s one of our core values.”pics (11)

If you can have fun during a recession while facing stiff competition from Chinese manufactures, that’s saying something, but O’Hara says despite the challenges, the company’s optimism and workplace environment has remained the gold standard of how it operates.

“Most companies have to have the basic benefits, wages, retirement, but what separates you from others is your culture. We have flexible work schedules, free gym memberships, we have a lot of company parties and barbecues. We stock free ice cream and soda all year long.”

Owners are hands-on and approachable. The management team works together and set a tone of allowing employees to be creative. An entrepreneurial culture is encouraged.

“So even though it’s a manufacturing facility we don’t micromanage,” O’Hara says. “Be unique and do it different. That’s what we’ve tried to do. Create things that separate you from others. It’s a relationship. If you know you are valued and appreciated as a person, you generally give a hell of a lot more.”

Getting lean

Change is inevitable, O’Hara says, despite the company approaching its 50th anniversary in business. Change is disruptive, which can be both positive and negative. O’Hara understands that, but insists that FCC will remain on the cutting edge.

pics (29)To that end, FCC has invested heavily in shifting its processes to Lean Manufacturing, a new trend that changes the ‘batch and queue” mass production process that has dominated for decades, in favor of product-aligned “one-piece flow” pull production, according to the Environmental Protection Agency website.

“This shift requires highly controlled processes operated in a well maintained, ordered, and clean environment that incorporates principles of employee-involved, system-wide, continual improvement,” the EPA writes.

O’Hara says the shift is a significant investment in both machinery and employee training, but one that will help the company be more efficient, greener, and more cost-effective.

“Any time you implement change it is not easy,” he says, “and it comes at a little bit of a disruption at first. But at the same time it will be productive at the end. Any time you empower your workforce to make things better it’s positive.”

The bottom line for both FCC and for its customers is that they will benefit, he insists, by the company’s relentless pursuit of reducing cost.

“That’s how you deal with the price pressure, because it’s always going to be there,” he says. “You meet it head on through efficiency, engineering, and creativity.”

In short, you never stop changing. FCC will continue to evolve in order to compete, O’Hara says, while reaching outside of its core business model to diversify revenue.

“This place needs to look different. It better look a heck of a lot different in ten years,” he says. “If you aren’t changing and growing you’re probably not going to be around.”

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