The Saline Reporter
A Heritage Newspaper
Weekly Publication
'Roofed village without walls'
Unimerco home away from home
By Majida Rashid, Special Writer
PUBLISHED: February 15, 2007
Freshly baked bread, homemade jams, sliced cheeses, cold cuts, a variety of cereals, orange juice and hot beverages are what employees at Unimerco find when they arrive for work at the company.
Advertisement
At lunchtime, a salad bar, hot entrees and fresh fruits await them, as well as a refrigerator stocked with beverages, flavored milk and water.
Chef Jason Self, who had worked for more than five years for Main Street Ventures in Ann Arbor before joining Unimerco a couple of years ago, is the man behind the culinary offerings.
The restaurant, encased in glass walls on the three sides, provides freshly prepared, healthy meals and a place to mingle with co-workers –– all at no cost to employees.
The company's restaurant is the only walled place in the entire building. In addition to bringing Danish architecture, Unimerco-Saline has also brought its philosophy of "a roofed village without walls," meaning every employee in the company has the right to know what's happening in the company.
To see what's going on in the surroundings, all an employee has to do is either raise a head or stand up because all business is conducted in the open.
In 1994, a forward-looking and innovative entrepreneur named Hans Foxby established the company in the town of Lind, Denmark. The company started supplying tools for the woodworking and furniture industry, and later expanded into selling tools and providing technical support, primarily for the automotive industry and general machining.
The portfolio of its products includes mainly customized tools for increasing productivity and reducing costs for its customers.
Today Unimerco has grown to comprise the parent company and eight subsidiaries in six countries. It employs 612 people; 50 of them are working at Unimerco-Saline. About 83 percent of all the employees hold shares in Unimerco.
In 2006, Unimerco was, for the fourth time, named Europe's Best 100 Companies to work for. While in the national Best Workplaces in Denmark competition, it scored in the top 10 for six consecutive years.
Another unusual feature of Unimerco is its profit sharing system. The idea of the company's ownership and profit sharing model originated from CEO Kenneth Iversen, who spent his childhood in the fishing environment of Thyborøn, Denmark.
A common practice adapted by the skippers, in those days, was to share half of the catch with the participating crew of a fishing boat by a fixed percentage rate. The remaining half was spent on the vessel for maintenance, fuel, insurance, interest rates and depreciation, among other things.
When the captain turned about 60 years old, he would sell almost half of the vessel to his first mate and then sell the remainder around the time he turned 65. The first mate followed the same tradition. This way, the ownership of the boat would develop in a predictable way that would make the rest of the crew feel secure about the generational change.
"The idea of close circle, guaranteed dividend is new to the United States. The Danish Bank loans the money to our employees so that they can buy company shares. The bank also covers the interest. Employees are guaranteed a dividend of 15 to 20 percent every year," said Palle Damborg Andersen, president of Unimerco-Saline.
The company started searching the U.S. market in 1995 and set up shop in 1996.
"In 1995, we had a long search. We considered the Grand Rapids area as there was a lot of woodwork going on there, but we chose Saline," Damborg said. "The township was very helpful. Everything we were looking for was here. Right people and right skills are key to any company's success."
Originally, the plant opened near the Ann Arbor Airport on State Street, but moved to its current location in 2003. The employees had a choice to go anywhere. With the exception of three Danes, who moved back to Denmark, most of the employees moved to Saline.
Seventy percent of the Saline company's revenue comes from the automotive industry. The Saline plant reshapes and renews tools by grinding, reshaping, filing and sanding. As a result of environment consciousness, these activities are carried out in small see-through encased machines that also collect the residue carbide dust, leaving the environment clean.
Besides, the Big Three, Unimerco-Saline supplies tools to Boeing in Seattle, Caterpillar and Caterpillar's sub-suppliers.
Demand from automotive companies has decreased, but the company is also doing business with Asian car companies.
Unimerco is considered a high-end company and more expensive to do business with than its competitors.
"We don't compete on price. We compete on lead time, and consistency in high quality, high precision and the delivery time. Our tools last five times longer than our competitors'. Our customers do not have to keep an inventory as they can rely on us," Andersen said.
Despite the current economic conditions, the company grew by 30 percent last year. This spring, Unimerco plans to open another location in North Carolina. The Saline plant is also expanding and is looking for sales people to come on board.
The growth can be attributed to its emphasis on financial stability and solidity, as well as its culture and work environment. In fact, in the company's 42 years of history, it has never operated at a loss.
The employees of the Saline location have access to 14 different fitness opportunities, ranging from bowling and cycling to fishing. The company covers any associated fees for its employees, as well as equipment needed for the activity.
Not all stories are guaranteed to appear
online. The Web edition contains a reasonable
sampling of the print edition stories.
For the most complete news coverage, we invite you to
subscribe
to the print edition of the paper.
Expanded
Web
Coverage
Staff Blog, "Inside The Newsroom"
TOP JOBS
