Grows From Scrap Recycler
Transcription
Grows From Scrap Recycler
CAMEROTA TRUCK PARTS Grows From Scrap Recycler To Major Rebuilder By Denise L. Rondini Interview By Jim Moss S 1960 Camerota Used Truck & Tractor Parts was founded by Salvatore “Sam” Camerota in Enfield, CT 1965 The company name changed to Camerota Truck & Auto Parts 1970 Camerota Scrap & Recycling was formed 1974 Frank Camerota joined the company and the name changed to Camerota Truck Parts tarting out as a self-described scrap recycling business operating out of an empty lot, Camerota Truck Parts has grown to be a large rebuilder of heavyduty transmissions, rear differentials and steering components. In 1960, Sam Camerota started Camerota Used Truck & Tractor Parts where, according to Sal Camerota, secretary/ treasurer, “We would bring in trucks and equipment, save some parts, wreck the remaining vehicle and sell the parts.” In the early years of the business, “we’d buy the vehicle and dispose of it or liquidate it for its scrap value,” he explained. “Back then what we sold in parts basically was a bonus.” The next step in the company’s evolution was to add value to the used parts by rebuilding them. “That launched the whole rebuilding process that we continue to offer today.” According to Frank Camerota, president, “We changed because we had to; our customer base changed.” The Camerotas watched while the farmers, small rubbish companies and other small operations gave way to companies like BFI and Waste Management. “They had different requirements and different quality issues,” he explained. When the brothers—Frank, Sal and Steven—assumed control of the business after their father passed away in 1980, they decided to grow the business. “That’s when we did the whole refocusing on remanufacturing of driveline components, changing directions and moving away from scrap metal and recycling,” Sal explained. Truck Parts & Service “Then we started with transmissions and rear differentials that we could offer as used or rebuilt,” he added. Because the Camerotas now were dealing with large corporate entities, there was pressure on them to give that market exactly what it wanted. “These customers didn’t want to buy a used rear differential. They wanted one that was rebuilt, one that was on the shelf, one they could have before they took theirs out and one they knew was of good quality,” Sal said. “As demand grew, we adjusted production to meet the demand,” Frank added. And the Camerotas are proud of 26 June 2006 1977 Steven Camerota joined the company 1978 Sal Camerota joined the company 1980 The Camerotas continue to evolve their business with the expansion into automatic transmission rebuilding. They see this as an area that will continue to grow in the future because they believe the need for rebuilt automatic transmissions will increase as the industry struggles with the driver shortage and looks to expand the pool of eligible drivers. their evolution. “There aren’t that many companies that could go from one extreme—wrecking trucks—to become an ISO-9001:2000 certified rebuilder of driveline components,” he pointed out. “We believe that we truly have evolved into a major drivetrain rebuilder,” Sal said. “In fact, scrap recycling now accounts for only 4% of our business.” One advantage that Camerota Truck Parts has over its competitors is its ready and available supply of cores. “We’re very core friendly and we don’t have a graded core charge like many other companies,” Sal said. “Having a supply of cores gives us the ability to have the components available before the customers need them because we can rebuild the ones we’re taking from our salvage yard and have them on our shelves ready to go,” he added. “We also handle our own core processing, manufacturing and distribution all under the same roof,” Sal explained. While most of the cores used for rebuilding come from the Camerota’s own salvage operation, some are purchased. “Our interim supply of cores is dic- Truck Parts & Service tated by the amount and quality of the salvage in our area,” Steven Camerota, vice president, said. “If there are certain types of trucks that we are not taking in and recycling anything from, we’re not going to get a core. That means we have to go out and purchase it elsewhere.” The Camerotas continue to evolve their business with the expansion into automatic transmission rebuilding. They see this as an area that will continue to grow in the future because they believe the need for rebuilt automatic transmissions will increase as the industry struggles with the driver shortage and looks to expand the pool of eligible drivers. “We have customers for whom we are taking out manual transmissions and installing automatics because the customer will say, ‘I’ve got two people who can drive a truck with a manual transmission, but I’ve got 12 people who can drive automatics,’” Frank said. “If you’re a municipality, it’s a natural gravitation. It started with the school bus industry, then it went to utilities and then it went to municipalities.” Continued on page 28 27 June 2006 Founder Sam Camerota passed away and Frank Camerota became president 1984 Heavy-duty and light-duty transmissions and rear differentials were remanufactured 1985 Heavy-duty and light-duty steering boxes were remanufactured CAMEROTA TRUCK PARTS Continued from page 27 1989 Second store opened in North Haven, CT 1990 The first in the industry to offer a 2-year unlimited mileage warranty of remanufactured steering boxes Sal added, “We made the decision to pursue automatic transmissions as one of the future cornerstones of our operation. Six or seven years ago when we started this journey, more than 50% of the Class 5, 6 and 7 market was being produced with automatic transmissions.” He continued, “If we weren’t doing this when those transmissions first started to fail, we weren’t going to have the opportunity to sell to those customers. No one is going to go from an automatic back to a standard transmission just because that is what we can rebuild. The market dictated that we change.” To support the expansion into automatic transmissions, the Camerotas constructed a 30,000 sq.-ft. automatic transmission and service center at its headquarters and became an authorized Allison overhaul and warranty/service dealer for on-highway product lines. It also rebuilds foreign automatic transmissions. In order to capitalize further on the growth of automatic transmissions, the Camerotas have added service centers at several of their locations and also provide diagnostic road service. They believe that the ability to diagnose a transmission is important. “People can’t replace automatic transmissions without proper diagnostics,” Frank said. “The person who does the diagnostics ultimately will control the sale of the replacement unit.” Sal has found that Camerota Truck Parts’ customers want to do business “with a company that solves their problems and gives them the ability to do what they do best, and repairing trucks is not what most of these companies do best. “The companies may be in the rubbish business, for example, and want to focus their efforts and energy on being the best in the recycling of rubbish.” When asked to describe their business, Sal said, “Our core business basically is remanufacturing driveline components, be it a transfer case through an automatic or manual transmission. “However, we are very inclusive in what we do from light-duty to heavy-duty and from old to new. We provide very wide coverage because basically if it has gears, we are not afraid to rebuild it.” In fact, according to Steven, “We have the largest transmissions parts in- Services Offered Allison Transmission authorized full-line Overhaul & Warranty/Service Dealer for all on-highway product lines • Automatic transmission shop also rebuilds Jatco, Aisin & Mercedes automatic transmissions • Factory authorized rebuilder for Eaton mid-range transmissions & Spicer transmissions • Dana off-highway authorized service dealer & warranty center • Crane Carrier trucks, new vehicle parts & service dealer 1991 Became a factory-authorized remanufacturer of Eaton mid-range transmissions 1995 Became one of six factory-authorized distributors of ZF manual transmissions Truck service repair, diagnostics & installation services for half-ton to Class 8 trucks • Manual transmission conversions to automatic transmissions • Light-duty transmission shop rebuilding & repairing on models such as New Process, New Venture Gear, ZF manual, BorgWarner & Muncie • Medium-duty transmission shop rebuilding & repairing on models such as Eaton mid-range, Isuzu, Mitsubishi, Mercedes, Volvo, Nissan/UD as well as industrial & off-road models Heavy-duty transmission shop rebuilds & repairs all Fuller, Mack, Spicer & Meritor units as well as heavy-duty industrial & off-road models • Differential repair & rebuilding • Steering boxes & pumps for all size domestic & foreign truck applications • Exporter of truck components all over the world • Pre-tested diesel engines • Driveline Services: Drive shafts, bore & sleeve I-beams, flywheel resurfacing, axle repair • Extensive inventory of used & obsolete parts & components • OEM parts distributor for extensive line of new parts from light-duty to heavy-duty Truck Parts & Service 28 June 2006 1996 Launched its web site www.camerota.com 1997 Third store opened in Westborough, MA 1998 JATCO automatic transmissions remanufactured. Automatic Transmission Center built The three Camerota brothers share in the responsibilities of running the business and to some extent job titles were the result of birth order. Frank (center) is described as the technical one, Sal (right) is the “day-to-day guy” and Steven (left) focuses on sales and marketing. ventory as well as the largest differential parts inventory in the northeast.” Camerota Truck Parts operates out of five locations in Connecticut, Maine, Massachusetts and New Hampshire. Store inventory is predicated on what sells at each specific location. “If one store sells three or four of a particular item in a year, then there is going to be one of that item in each of our stores,” Sal explained. He added, “Our inventory is based on sales and where sales are taking place throughout the organization.” He explained that each store requests what it needs to replenish its inventory. “They tell us what they need based on what they think is going to sell in their area of responsibility and that’s going to change from New Hampshire to New Haven. The types of units we sell in New Hampshire are different than the ones we sell in New Haven, Boston or Bangor.” In addition to selling completely remanufactured units, Camerota Truck Parts also sells parts, but only those parts that are necessary for use in its remanufacturing operation. “We sell transmission parts across the counter and we also sell differential parts,” Frank explained. “It wouldn’t be customer friendly not Truck Parts & Service to offer those parts to our customers who are buying remanufactured units from us.” The company stocks more than 20,000 drivetrain-related part numbers and more than 1000 gear sets. The Camerotas see parts sales as a way to introduce customers to their remanufacturing operation. “Parts are a way to enhance our relationships. A customer can be using us for parts and then the component has enough miles on it that it justifies putting a remanufactured unit in the vehicle,” Sal said. “The fact that they have bought parts from us puts us in a position to sell them a remanufactured unit. But don’t misunderstand me, full remanufactured units are our strong point.” The three brothers share in the responsibilities of running the business and to some extent job titles were the result of birth order. Frank is described as the technical one. “I’ve done this my whole life and I enjoy it. I help with technical problems in all of the shops. I also do some sourcing and solve other problems.” “I’m the day-to-day guy,” Sal said. “Frank builds it and I sell it and distribute it.” In addition he is responsible for labor issues, administrative and financial functions, stores sales and operations. Continued on page 30 29 June 2006 2000 Allsion automatic transmissions remanufactured Became OEM dealer of Crane Carrier trucks, parts and service in MA 2001 Became New England’s only factory-authorized rebuilder of Spicer transmissions Third store expanded Fouth store opened in Bow, NH. 2002 Became the sole distributor of Universal Manufacturing transfer cases in New England 2003 Became one of six factoryauthorized ZF manual transmissions remanufacturers Fifth store opened in Bangor, ME First lean manufacturing cell was implemented 2004 Became an authorized Allison Overhaul & Warranty/Service Dealer for on-highway products Began construction of Automatic Transmission & Service Facility. 2005 Opened Automatic Transmission & Service Repair in Enfield 2006 Earned ISO-9001:2000 certification Became an authorized Dana OffHighway Service Center and OEM dealer of Crane Carrier in CT New Machine Service Center opened in Enfield The Camerotas see parts sales as a way to introduce customers to their remanufacturing operation. “Parts are a way to enhance our relationships,” Sal said. “The fact that someone has bought parts from us puts us in a position to sell him a remanufactured unit.” Continued from page 29 Steven focuses on sales and marketing. “I work with the field sales staff. In fact, I go out with each salesperson at least once a month. We focus on places where there are concerns and on developing customer relationships. “It’s my job to keep the customer base strong.” In addition Steven is responsible for the purchasing of trucks and all export operations. An outgrowth of the salvage portion of the business is an active export business. “We export truck components all over the world. As a truck is being dismantled, the transmission, rear differential, gears and gear box will go to the proper facility to be remanufactured. The other parts like the transmissions that we have an overstock of and engines we sell to another market,” Steven explained. The decision of where to locate its branches was based on a desire to get a remanufactured unit to anyone in New England the next day. “When someone calls for a unit, for example, we will either take it off the shelf or produce it in one of our Truck Parts & Service manufacturing cells, get it on a truck and deliver it to the store by 1 a.m.,” Sal said. “Then it is the store’s responsibility to deliver it to the customer later that day.” And that means taking it to the customer. “If we are not going to install it for them, they don’t want to come to our stores to pick up parts,” Steven explained. “That’s why we deliver about 90% of the parts we sell,” Frank added. “We don’t sell any preventive maintenance parts so we’re not going to a guy who broke down on the road. When it comes to full units, customers expect us to deliver them,” Steven said. “When you look at it, our strategic advantage is that we have the units on the shelf so we can offer them to our customer before he takes the worn component out of the vehicle. And we are going to deliver the new unit and pick up the old one within 24 hours,” Sal said. He added, “Basically we are doing our best to solve his problem.” The Camerotas have structured their remanufacturing operation on a lean manufacturing basis. According to Sal, this means breaking the entire remanufac- 30 June 2006 CAMEROTA TRUCK PARTS turing process down into sections, in a one-piece flow cell environment and at the end you get your finished product as a team faster than if each person did more than one component. And you get better quality.” In lean manufacturing, there are teams of no more than five or six people and a cell leader. By doing just one thing they become better in their area of responsibility. “The guy doing transmissions doesn’t do rear ends. He just does transmissions,” Sal said. This method works for them because, as Frank explained, it is structured “and we are structured people. We don’t like things that are not defined.” That philosophy lead to the company seeking to become ISO-9001:2000 certified. Sal explained that what the ISO certification process does is identify what a business does, measures it and then makes sure management reviews the results. Frank said, “You develop a superior process and repeat it over and over. When you make a mistake you identify it and determine what you need to do to make sure it does not occur again. “What this does is give you structure and repeatability because the whole process has to be reverified and reaudited every year,” he explained. He added, “Everything you do to keep your certification has to be recertified every year so you can’t deviate. You can’t go back to what you did yesterday. That is what attracted us to this because not only do we have to attain a level of quality, but we also have to maintain that same level of quality.” Sal explained ISO this way, “ISO certification is like going on a diet in that it forces you to get on the scale everyday and say ‘How am I doing? Am I going in the right direction?’ And based on your eating habits for the day, you either have to adjust them or you are not going to reach the goal you set.” Frank added, “It takes the emotion out of it. It is what it is. There is no conflict between management and production. There are no personalities involved because it is literally physical numbers.” The Camerotas believe that one of the main reasons they have been successful is because of their employees. “Our biggest asset is the accumulation of individuals we have in this organization,” Steven said. “The three of us do not make this company a success. It’s the loyalty, the abilities and the hard work of the 140 people within the organization that does it.” And lean manufacturing makes it easier to bring people into the company. “We do not have to hire a person with the total expertise of being able to rebuild a driveline component,” he added. “We can teach them little parts of the process one at a time. The cell environment allows us to do that.” And although the people who work at Camerota Truck Parts are vital to its success, there also is a personal involvement by Frank, Sal and Steven. “There is a lot of Camerota personal involvement in what we do right down to the fact that every one of our remanufactured units has our name on it,” Sal said. “That’s who we are and what we do. I’ve got to give credit not only to our family but also to the individuals who chose to pursue a career here. “There is a personal interest in everything we produce and we’re not afraid to put our name on it.” Camerota Truck Parts Locations & Staff Enfield, CT Headquarters North Haven, CT Senior Management Westborough, MA 245 Shaker Rd., P.O. Box 1134, 06082-1134 800-247-4313, 860-763-0896 Fax: 860-763-7469 Parts Sales Fax: 860-763-3724 Frank Camerota—President Steven Camerota—Vice President Sal Camerota—Secretary/Treasurer Leo Fournier—Controller Jacki Tamayo—Human Resources Director Ken Blews—Production Manager Steve Dufresne—Parts Manager Enfield, CT Automatic Transmission Service Center 239 Shaker Rd., 06082 800-247-4313, 860-763-0896 Fax: 860-763-8245 Truck Parts & Service 166 Universal Dr., 06473 800-446-3056, 203-782-0360 Fax: 203-787-9440 Tom Antonioli—Branch Manager 35 Washington St., 01581 888-267-5700, 508-366-2079 Fax: 508-898-2554 Bill St. Germain—Branch Manager Bow, NH 565 Rte. 3A, 03304 603-228-9343 Fax: 603-228-9315 Brian Beauliea—Branch Manager Bangor, ME 1570 Hammond St., 04401 207-942-3873 Fax: 207-942-3874 Dan Pierce—Branch Manager 31 Production & Service Leaders Bob Vargo—Automatic Transmission Supervisor Ken Lebeau—Heavy-Duty Transmission Supervisor Joel Thurston—Light/Medium-Duty Axle Shop Supervisor Duane Noto—Heavy-Duty Axle Cell Leader Bill Trapp—Heavy-Duty Transmission Cell Leader Chris Vesce—Light-Duty Transmission Cell Leader Dave Lips—Steering Supervisor Steve Salter—Driveline Machine Shop Supervisor Andy Lind—Service Manager Dave Goldberg—Service Manager Troy Mandig —Service Leader Kevin Dustin—Sales Supervisor Visit Camerota Truck Parts on the Internet at www.camerota.com. June 2006