The Hitachi Foundation

Any business that wants to survive a long time must be able to reinvent itself. In recent years it has become something of a cliche that such reinventions - particularly in the manufacturing sectors - have to come at the cost of quality middle-class jobs. But it doesn't always work that way.

Based in Kiel, WI, HUI Manufacturing is a venerable producer of manufactured sheet metal products. It was founded in 1933, and enjoyed a long run of success in the industry, but by the end of the 20th century HUI had fallen on hard times. As global competition rose, prices had plummeted, and it was no longer possible for the company to earn a reliable profit in an increasingly commodified market. To survive, HUI had to change its business model - dramatically.

Led by CEO Kurt Bell and President Dan Ruedinger, HUI's leadership elected to shift from high-volume, low-value metal sheets to low-volume, highly engineered products that added considerable value for customers in healthcare and other industries. This required a considerable investment in new computers, machinery, and lean manufacturing processes. It also required an even more substantial investment in HUI's people.

Over a period of several years, HUI transformed its workplace organization from siloed divisions to an agile, team-based approach that relies heavily on cross-training. The hierarchy was flattened, and HUI's production teams were given considerably more responsibility for self-management, including control over hiring and firing. Workers are now expected to be cross-trained in different functions every year, and teams are also expected to set their own goals, create new, innovative products, and maintain considerable knowledge of both customer needs and the company's financial performance.

Needless to say, this was not a simple process, requiring a significant investment in training. HUI established its own internal "university" for training purposes, which includes a highly-rated certified welding program. It also engages actively with educational institutions, with up to a quarter of its workforce in school at any one time, all aided by a generous tuition reimbursement policy. You don't need a lot of education to actually get a job at HUI - they hire mostly for attitude and an ability to learn - but it is now challenging to get a job there anyway, because performance has soared, the pay is good, the culture is supportive, and opportunities to advance are everywhere. 

Best of all, HUI's fortunes have turned around, as dramatically as its business model has. Its revenues increased 50% between 2003 and 2008, and it has been profitable for 7 of the last 10 years. Despite a recession-induced slowdown in 2009, profits rebounded strongly in 2010. For more detail, please see the HUI Case Study at Winning Workplaces. Other case studies in this series include: