Time to Tighten Up

Value-driving efficiencies for manufacturers & distributors

Iggy Domagalski

After hot markets for manufacturers and distributors in 2022-23 as the world rebounded from the pandemic, there’s been a cooling off that looks to continue into the new year. During the boom times, it’s all companies can do just to get products out the door and into the hands of eager customers. When markets start to soften, it’s to time renew focus on efficiency, says Iggy Domaglaski, president and CEO of industrial products and services provider Wajax.

“Often when you think of sustainability, you might think of it as an added cost, but I think there’s a lot of ways where building a sustainable supply chain that’s responsible can be a value-driver and even a cost-reducer,” Domaglaski told BOSS. “If you’re able to recycle more of your materials, that would normally be scrapped, there’s money to be saved there.”

The Little Things

With lots of layers to a modern, global business, there are plenty of opportunities to look for efficiency-driving innovations in supply chains, IT systems, reporting, and distribution. Finding those edges is what will place or keep organizations in front of the competition.

“How do we do things that cost a little bit less while at the same time are not bad for the environment?” Domaglaski said. “I think those two things have to exist side by side.”

Data analysis like tracking Scope 1 and 2 emissions and comparing your company’s carbon footprint with the competition’s are table stakes these days.

“For a company like ours, the negative environmental footprint mostly comes from the vehicles that we have out on the road, so there are ways to do better there, and then it comes from the buildings that we have,” he said.

Optimizing delivery routes and figuring out ways to drive less are ways to reduce energy use, as are switching to hybrid or electric fleets. In buildings, solar panel installations on roofs, LED lights, and smart HVAC systems are all ways to keep energy bills and footprints down.

Game-Changing Habits

To really stand out, companies can put effort into helping their customers achieve their goals. For example, Domaglaski said Wajax’s customers are quite concerned with the amount of fuel they use. Many are in the resources sector: forestry, mining, and oil & gas. They rely on companies that can supply them with equipment that is efficient enough for them to measure the decrease in their energy use.

In industrial components, variable frequency drive has been a game-changer.

“It’s basically like a dimmer switch for electric motors. Electric motors do most of the world’s work, and this allows you to really turn down the amount of power that’s going into them. That’s really, really meaningful energy savings, which ultimately results in less greenhouse gases, because whatever is powering those motors doesn’t have to work quite as hard,” he said.

When it comes to heavy equipment, there’s been a marked shift toward electric and hydrogen-powered machines. Domaglaski cited Hitachi, which has been introducing electric excavators to the North American market, as one manufacturer putting a lot of effort into innovation. Another is Tigercat, primarily focused on heavy equipment for forestry.

“They actually have some, some really cool new equipment that ultimately takes the carbon out of the waste products from wood and uses it for heat without putting it into the atmosphere.”

Long-Term Thinking

Since 1858, Wajax has endured lots of booms and busts. The key to lasting is continuous improvement in those periods when business levels off, setting up better processes that save money and keep the line moving when demand heats up again. Helping customers do the same requires understanding their needs, goals, and economics.

“I would say that’s really part of the sales process,” Domaglaski said.

Successful companies aren’t just experts in their own business, they’re experts in their customers’ as well. Those are the kind that keep on going well into a third century.

“We look at sustainability in a whole bunch of different lenses,” he said. “I don’t think it’s just one thing.”

The environmental piece is one part. It’s something employees can be proud of, helping with retention and hiring, but there’s also investment in the communities a business operates in, safety and well-being, and making sure people are well taken care of. With the right mixture of innovation and time-honored practices, manufacturers and distributors can ensure success in 2025 and beyond.