Omni-Lite Industries is Fleet of Foot
From Calgary Business Week
August 1998
By Mark Crncich
This Calgary high tech success story first made its name in the international
track world. Now it is developing specialized products for retailers, manufacturers
and the military.
It's a long way from Stephen Avenue Mall to Wilshire Boulevard (about
a 24 hour drive). But for one Calgary company the long journey was well
worth the price of the gas and sandwiches.
In May 1994, David Grant and his wife Catherine packed up most of the
assets of David's fledgling company in a couple of suitcases and made the
long journey by car, accompanied by most of the employees as well. It was
risky, but southern California is the hub of North America's high tech
sector and if they could make it there, as they say, they could make it
anywhere.
Today, David Grant sits in a comfortable office in Omni-Lite Industries'
8,000 square foot facility, enthusiastically handling another of a long
succession of media interviews he has given in the last year, this one
by phone. His company has become an all-star of Calgary's growing high
tech industry since it opened its satellite operation in Cerritos, California.
Not so long ago it was a feature with Lloyd Robertson of CTV News and later
an appearance on CBC television morning news. Add in the Financial Post,
the Calgary Herald and the Calgary Sun, along with various magazines, and
Omni-Lite has become a true media darling.
Grant, a professional engineer by trade who has tinkered in a number
of businesses in his career, has found that managing the media attention
and promoting his company, which trades on the Alberta Stock Exchange,
has become as important a role in running the company as anything else.
"Understanding the technical aspects of this business is critical and
probably accounts for 25 per cent of our success," says Grant. "The financial
aspect is 25 per cent and marketing is another 25 per cent. What I call
the politics of business (i.e., dealing with the media) is another 25 per
cent. Unless we have a rounded approach, we couldn't succeed.
What caused all the hype? It is partly due to the company's unique use
of technology. Omni-Lite specializes in the use of composite metals to
design and manufacture a variety of precision components that are far superior
in a number of ways to traditional plastic and metal products. But what
really propelled the company into the spotlight was the 1996 Atlanta Olympics.
One of the most spectacular performances of the 1996 summer Olympics
was American sprinter Michael Johnson's gold medal-winning dashes in the
200 and 400 meter runs, where he greatly out-distanced his competitors.
It happens that Calgary's Omni-Lite was a big part of Johnson's phenomenal
sprints. The American's famous golden Nikes were equipped with a new spike
made from space-age ceramic material that was developed and manufactured
by the Calgary company. The spikes are one-third the weight but just as
strong as traditional steel spikes. Along with Johnson's success, athletes
wearing the Omni-Lite spike captured 20 gold medals in Atlanta.
Later Canada's world record-holding sprinter Donovan Bailey and another
of the world's top short distance runners, Ato Boldan of Trinidad, adopted
the new spike. The success of athletes using his product is a particular
matter of pride for Grant.
"I get a lot of personal satisfaction from meeting people like Ato Boldan
and Marion Jones (reigning womens 100 meter world champion) who are so
excited about our product," he says.
Well before the company's move to California and Olympic fame, Omni-Lite
started in David Grant's living room, where he once ruined his carpet tinkering
with materials. Actually, Grant says the foundation for his company started
when he was a young boy.
"Even when I was very young I felt I would be doing projects of my own.
I think I inherited an entrepreneurial and building spirit from my grandfather,
Frederick Grant, who was a founder and builder of the town of Bashaw,"
he says.
Grant graduated as an engineer from the University of Calgary in the
mid-1970s and went on to graduate studies and the University of British
Columbia. His resume includes working in the Amoco research center in Oklahoma
and working for PetroCanada's research group. He worked briefly as a marine
and arctic consultant, tried his hand at real estate, ran a small manufacturing
company and was a partner in a Calgary restaurant. Later, Grant was hired
by Interra Information Technologies, a company specializing in radar mapping.
Along with meeting his wife Catherine, a Singaporean, and working throughout
Asia, he became interested in the lightweight materials used in the airplanes
for radar mapping.
That interest later led to his living room experiments and then the
vision for Omni-Lite. The company was incorporated in 1992 and entered
the ASE junior capital pool program, which helped to raise funds. It later
received a grant from the National Research Council to study uses of composite
metals for product fabrication. The grant allowed the company to purchase
its first manufacturing machinery.
The first products that Omni-Lite made were not destined for just any
old customer but for one of the biggest sporting goods companies in the
world. Nike. The first was a boron steel golf spike and later came the
running shoe spike. Along with Nike, the company also has Adidas and Reebok
as clients and the Ceramic Ultra-Lite spike is sold in over 1,300 stores
in the U.S. Its contracts with sporting goods giants provided the cash
for the company to buy new machinery and develop products for other uses.
Today, Omni-Lite produces precision components for some 400 customers including
automotive giant Chrysler, Canadian Tire and the U.S. military. The company
has also established a number of joint ventures, including one with Textron
Inc., an American aerospace conglomerate with US$11 billion a year in sales.
Grant says although Omni-Lite is a high-tech firm, it, like any other
successful business, has won customers by becoming a solutions provider.
"In this business they are really hiring you to make a solution, not
create a problem," says Grant. "We know the answer to our customers' problems
before they are aware there is a problem."
The company spends between $4,000 to $5,000 a day in product development,
carefully studying how composite materials can be used to replace traditional
metal-based components. The manufacturing process to make the component
parts is called progressive cold forging and while the vocabulary of the
business sounds all too esoteric, it is really quite simple in explanation.
The composite materials that are used come in the form of large coiled
wire tubes. These tubes are fed into the cold forging machines, of which
the company has five. These computer controlled machines, the largest of
which is 20 feet long and weighs 12 tons, apply huge amounts of pressure
to the materials, approximately 50 tons of force in each step, and the
material is eventually massaged into its final form. The whole process
is very precise and is supervised by a single operator at a central computer
which is tied to all the machines. Omni-Lite currently produces up to 350,000
parts per day.
"When you stand in the middle of these machines it all sounds like a
symphony and running the operation is much like being a symphony conductor,"
says Grant.
In spite of the success and notoriety south of the border, Grant has
maintained very close ties between his company and Calgary. Calgary remains
the company's head office location and its stock trades on the ASE, though
there are plans to try to get listed on the NASDAQ index. Omni-Lite's accountants
and lawyers are located here, as well as a number of its sub-contractors.
The company also operates a manufacturing facility in Sundre that supplies
the Canadian Tire account. Furthermore, some of its key employees are Calgarians,
including Omni-Lite's production manager Michael Walker, a SAIT graduate.
"We feel very connected to Canada and Calgary. We believe the company
has gained from the entrepreneurial spirit of Calgary and I don't think
you could find that same kind of support for a small company as you do
in Calgary," says Grant.
For the last two years Omni-Lite has grown its sales figures by a sparkling
350 per cent per year and Grant says he expects to see growth this year
in the area of 200 per cent. The company boasts one of the fastest growing
stocks on the ASE and it is on the verge of developing new products for
Nike and a European car maker.
The Grants recently bought a house near the Cerritos plant and on most
days David and Catherine tandem bike to work. For the last four years David
and his employees have worked over 12-hour days, seven days a week. And,
while he has set aggressive growth goals for his company, David says it
is time for balance in his and his employees' lives.
"The success of this company is largely due to the tenacity of the employees
and showing to our customers our willingness to stay and get the job done.
Now we have to train ourselves to look at the personal side of our lives
and create a real balance, which is what we did with this company," says
Grant.
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