Our Why
The Backdrop: Manufacturing Has Been Neglected for Decades
Our policies have discouraged manufacturing in our country, especially relative to other countries. We've been happy to outsource our products to the lowest seller, due to a propensity to consume more than we produce, regardless of how the seller's costs were achieved or the long term implications for our country.
Nearly everyone, especially in Michigan, knows someone whose life was negatively impacted by the manufacturing industry, and especially within automotive. This usually would come in the form of layoffs, or lost jobs, often by the thousands. The fact is that the manufacturing industry pioneered this approach. While some of these decisions were necessary because of broader policy decisions (or lack thereof), it's also just the way things were done. When so many people associate negative experiences with an industry, it's admittedly hard to garner a lot of excitement. And candidly, we've earned this reputation. The culture within manufacturing organizations are usually abysmal. They are "yell and tell" trapped in this bizarre bubble of yesteryear, and somehow tolerated, and even accepted, by the very leaders who could change it. Very few people run to manufacturing companies for opportunity. Most fall into it or do so out of necessity, hoping its just a short term stint, that unfortunately turns into a career.
Our schools have discouraged the trades and careers in manufacturing, in place of pushing most kids to 4 year degrees, many of which don't translate to an actual job, and in all cases, force significant debt on the student when they are just beginning their career. The best and brightest, especially in the United States, have generally not actively pursued careers in manufacturing. Many of our best students pursue careers in finance, law, or software development, often for creating apps that let you order food from your couch or that are designed to encourage you to spend time on your device instead of in reality. The work is rarely on something that will impact others lives in a meaningful way. Most of the next generation lack an interest in the manufacturing field and their parent's business, associating it with the past or a dying industry. Future opportunity is almost never associated with manufacturing.
The Current Situation: The Gap
We are now in a situation where over the next decade, more businesses will be sold than at any point in our lifetime. This trend, combined with the already limited number of individuals with interest in manufacturing, creates a situation where there are few qualified buyers. And of the buyers available, most are Private Equity or Strategic buyers, neither of which are particularly attractive to those sellers who have spent their careers building something meaningful and want to see their business succeed well beyond them. The buyers they would like to find, people like them who have been in manufacturing for their career, largely don't exist, as these individuals went into other fields or industries over the last 30 years. The most logical buyer or steward of their company has instead been replaced by individuals with a finance degree and other people's money. And unfortunately, this isn't changing anytime soon.
Our Why: Why We Started Wallbank Industrial
We started Wallbank Industrial because manufacturing matters, because it can be a place people want to be, and even flourish, and because it's very important that industrial businesses not only continue to exist, but thrive beyond their existing ownership for decades to come. This only happens when the business transitions to ownership who cares most about the long term health and success of the business. This is hard to teach without the experience, and even harder to realize when the incentives are to achieve short term benefits.
1. A Belief in the Importance of Manufacturing
We believe manufacturing matters. It matters for society – they are high quality, good jobs which will always form a critical piece of the economy. It matters to the consumers of the world - the world needs physical stuff made to solve problems, whether that's manufacturing products for the known problems of today or the unknown problems of the future. It matters to those doing the work - There are few things more complex than manufacturing, and therefore more challenging, that also provide the amount of leverage. Hundreds of people are impacted directly and thousands indirectly, amounting to entire communities impacted over time.
2. Setting a Cultural Standard for Others to Follow
Manufacturing is notorious for having poor cultures. It doesn't have to be that way and we've proven it with 80% employee engagement (employee engagement in the U.S. averages 30% according to Gallup). Most companies are either focused on their people, to the detriment of performance or focused on performance, to the detriment of their people. We believe you must do both, and while more difficult than either choice in isolation, successfully doing so will result in stronger, long term performance. We care about our people, we don't care for our people, and this is an important distinction. Our aim is to build upon the culture that existing ownership has created.
3. An Alternative to Unattractive Options Focused on the Short Term
Most historical evidence suggests the conventional exit options will damage or destroy what you've built.
Private equity has and will continue to ruin our industrial base. Financial buyers who don't aspire to understand the business are highly risky. And even more dangerous, are those who think they already do. What manufacturing companies do isn't simple or easy, and without this understanding, decisions are frequently made to the long-term detriment of the organization. It doesn't help when there is a sell mandate after 5 years to generate a return, which almost always encourages decisions that jeopardize the longevity of the business.
Strategic buyers will synergize the company. Rename the company, cut people due to redundancy, consolidate facilities. While they understand your industry, it's unlikely they will understand how to run your business for the long run and in a way that has enabled its success to date.
Building Bigger Than Ourselves
For too long, this industry has been marked by outdated practices and a
disregard for the people who make it run. It doesn't have to be this way. We
believe that this industry can be the platform for building something great.
For making a significant, positive impact on the world.
For us, manufacturing isn't just about building products. It's about building
better lives. For our employees, this means opportunity, respect, and growth.
For the world, it means proving that manufacturing can, and should, be a
force for good.
We're here to show that people make the difference, that how we work and
treat each other matters, and that by relentlessly pursuing "better," we can
inspire others to see this industry—and themselves—in a new light.
We're building something bigger than ourselves. Better than what exists
today. A manufacturing environment in which we create a ripple effect of
lasting positive impact, through not just our products, but our people.
It's a lofty goal, but a worthy one. We're raising the bar in the manufacturing
industry. Reinventing an industry with antiquated practices into one you can
count on for growth, fulfillment, and impact. This is no easy pursuit, and one
that requires hard work, but is unquestionably worth fighting for.
