If misery loves company, manufacturers and export-dependent Canadian farmers have lots to commiserate about because both have been hammered by the high loonie.
That’s certainly true at Standen’s Ltd.
The maker of leaf springs, trailer axles and tillage equipment not only has to compete head on with Chinese rivals in the tough steel fabrication business, but does so from Calgary, where labour costs are high.
“We’re in a business where pennies can be very, very critical,” said Standen’s president Mel Svendsen.
“But while it’s tough and our returns aren’t what we’d like, we compete globally. For example, we make springs here and ship them to China. No one believes it’s possible to do that, but we do.”
Read Also
AgriStability updates offer stronger support for farmers
One of the most significant updates to the AgriStability program for the 2025 program year is the increase in the compensation rate.
That’s partly because Standen’s produces high quality products and delivers them when their customers need them, without fail.
For Standen’s customers, which include John Deere, Case New Holland and Bourgault Industries, cheaper isn’t the sole factor if quality is poor or if late deliveries cause production delays.
However, Svendsen said there are three other factors that anyone in a global business needs to keep in mind these days, including farmers.
Keep your eye on the horizon
With 500 employees and annual sales in the $100 million range, Standen’s is a big company, but not big enough to have Harvard-trained economists on staff.
As a result, it’s up to Svendsen and his senior managers to watch leading economic indicators such as currency trends or the Baltic Dry Index, which is a measure of global shipping activity. It’s important to know which way the wind is blowing.
“We watch corn prices because even though we don’t buy or sell corn, it affects our customers’ business,” Svendsen said.
“Keeping a close watch on these things gives us a pretty good idea of what’s coming down the pike.”
Invest in employees
Svendsen said he believes in “harnessing people’s brain power,” which he backs up with real dollars on training programs, even if they don’t have an immediate payback.
For example, his company pioneered an operations management course with a Calgary college.
It is intended to give shop floor supervisors a better shot at moving up into management and includes training in financial analysis, quality control and process management, which is about how to practise lean manufacturing theory and reduce waste.
Another company program has seen virtually every employee take courses on how lean manufacturing works.
While the payback is hard to measure, the cost is real. Standen’s pays for the courses, and half of the learning is usually done on company time.
But is it worth it? After all, factories are full of guys who do little more than punch the clock. Does it really make a difference?
Svendsen is a believer and is determined to preserve the culture he encountered as a college student more than 40 years ago when he spent his summers working for Standen’s.
His goal was to return to the farm northwest of Edmonton after graduation, but Svendsen found manufacturing “far too exciting for a young guy to walk away from.” By age 21 he was already in management ranks and today is a co-owner.
It’s that excitement that Svendson wants for all his employees. He wants his workers, many of whom are new Canadians, to embrace new processes when they’re introduced and to suggest ways the company can be more efficient and cut costs.
Demand the best possible price
“I tell my people that no matter what price you’re quoted, always ask, ‘is that the best you can do?’ ” he said.
“We’re having a hell of a time exporting because of our currency. The flip side is our dollar is worth more, not just when you go to the U.S. on vacation but also here in Canada when you buy anything that has an imported component to it. But if you don’t ask for it, you won’t get it.”
These are simple things – look at key economic indicators, invest in employees so they’re invested in your business’s future, and demand the best possible price from suppliers – but simple things can make a difference. In a cut throat global marketplace, they are things you need to grab onto.
Glenn Cheater is editor of the Canadian Farm Manager, the newsletter of the Canadian Farm Business Management Council.
