Reko continues lean initiatives in tough market
Moldmaker Reko International Group Inc. is taking steps to reduce costs and encourage lean manufacturing in the fac...
Moldmaker Reko International Group Inc. is taking steps to reduce costs and encourage lean manufacturing in the face of diminishing income due to the strong Canadian dollar and weak automotive sales.
Reko announced a loss of $422,000 in its first quarter of fiscal 2004, ended Oct. 31, 2003. Sales for the three month period were $24.5 million, slightly higher than the previous year. Several acquisitions made during 2003 boosted the revenue numbers.
However, the company’s margins were also negatively affected by these acquisitions and by the strong Canadian dollar.
In an effort to reduce costs, Reko has eliminated a layer of management and continues to implement its lean manufacturing initiatives. The company has invested nearly $1 million in the past year in software, hardware and staff training to implement best practices in mold design and engineering. Reko has partnered with Unigraphics (EDS) for mold design and machining technology.