Kress Corporation

Source: Energy Digital

Date :3/18/2008 5:00:53 AM

Nathan Kress gives Exec magazine an insight into the success of Kress Corporation and its specialist mobile equipment, which finds application at steel mills and mining operations all over the world

Written by Lucy Mowatt and Produced by Nick Ledue

Established in 1965 by Edward Kress, Kress Corporation is now a company with a global presence and a reputation for building long lasting heavy duty equipment. “My grandfather, who has since been inducted into the Mining Hall of Fame as the ‘Father of the off-highway truck,’ had large amounts of experience in the off-highway mobile equipment industry. This gave my father some unique opportunities to start his business which in turn helped revolutionize the material handling aspect of the steel industry,” Nathan Kress, marketing manager, explains. As such, his father went so far as to set up his own company supplying heavy equipment, starting with the manufacture of a slag pot carrier, which saw immediate success.

Kress Corporation offers a unique range of mobile equipment which not only operates in the steel industry, but also in coal mining, smelting and oil and gas applications worldwide. The product range includes a diverse range of slag pot carriers as well as slab, ladle, straddle, and pallet carriers. There are also other machines like coil & high stackers that provide a total integrated material handling solution for steel mills all over the globe.

Solid partnerships

Based in Brimfield, Illinois, a small town outside Peoria, Kress Corporation is located close to the corporate headquarters of global giant, Caterpillar. For more than 40 years, the two companies have worked together, although the level of integration between them, Nathan Kress says, has increased. Using a number of Caterpillar components, including Caterpillar power modules, the relationship is mutually beneficial.

“Parts and product support is extremely important to the long term success of the product,” Nathan states, and with the support of Caterpillar dealers, who offer service and support in diverse markets, Kress Corporation receives significant benefits from this long term partnership. Kress Corporation also carries out subcontract work for Caterpillar.

Kress Corporation’s branded machines are made to the customer’s exact specifications, meaning that that high volume production is not possible. “The number of machines Kress produces each year can vary significantly based on the scope and complexity of the specific machines on the order book.”

Service life

With a team of engineers and modern 3-D Solid Modelling CAD software, the company is able to remain innovative and ahead of its market too. For four years Kress has been using the most modern solid modelling system with Finite Element Analysis. “We’re not selling a mass produced product. It’s quite specialized, basically to a customer’s needs,” Kress stresses, saying that each product has to handle individual slag pot designs, or different ladles. These tonnages can exceed 500 tons in capacity.

Although there is some competition in the market, Nathan Kress says this is mainly indirect. “More often than not our competition comes from other systems and other ways of performing the same type of task. It’s our job to convince the customer why our solution is better in the long run, over the full service life of the machine.

“The cost-per-ton to move the material is the benchmark by which our machines are based.” If any proof were needed, Nathan Kress explains that the ISO 9001:200 certified company still has machines in the field that are between 35 and 40 years old and are still running 24 hours a day, seven days a week.

Coping with demand

Customers certainly do recognise the value of Kress Corporation’s vehicles although Nathan Kress says that the one thing that is holding the company back from additional sales and growth is the availability of skilled people. “We need at least 25 to 30 people immediately to help us grow, but in our geographic region the labour resource is quite challenging,” Nathan Kress explains.

In order to overcome these problems, the company has worked with local welding schools to ensure that the skills needed are available in the market. “We offer training for employees that don’t have the skill base that is required,” Nathan adds.

Global awareness

When asked about how Kress has gained such a good reputation in export markets, Nathan says that strong relationships as well as the integrity and reliability of its product is how the company has become so successful. Kress is not only known for producing machines to perform specific tasks but innovating in new ways to perform the job more efficiently. It has a relatively small customer base but with its successes has established its reputation as the industry leader.

To reach new customers, Kress works with Caterpillar Dealers and participates in several tradeshows - in particular those that focus on the mining and steel industries. These shows bring Kress Corporation in contact with potential new clients, while ensuring that they keep abreast of other developments in the market.

When asked what Kress Corporation plans for 2008 Nathan says that the aim is to “shorten delivery times and increase the number of sales”, while also obtaining a workforce which is able to meet those demands. Going forward, the company looks to grow in “developing markets, where the steel industry is growing rapidly”, along with large opportunities in mining and oil and gas where high commodity prices are providing good opportunities for capital investment.

“We want to continue to innovate in memory of my father and the customers that depend upon us,” he says, reiterating the local nature of a company which operates on a global scale.

Click here to view the corporate brochure on Kress Corp