Central States Manufacturing Plans More Regional Plants

Central States Manufacturing Inc. of Lowell has maintained steady revenue growth since its founding in 1988. The only blips for the metal building components producer were in 2007, when revenue dropped nearly 7.7 percent, and 2009, when revenue dipped 1.4 percent.

CSM returned to its record revenue ways in 2010 with sales topping $194 million and the addition of its fifth plant. The July opening of the facility in Mount Airy, N.C., broadened its regional network.

“We want to continue to expand our geographic footprint and be a metal components supplier to all 48 states,” said company president Donna Leger (pronounced la-zhay).

CSM is looking to the upper Midwest for its next expansion, though Leger said it isn’t likely this year.

“This year, we’re focused on growing existing plants and maybe having a breather,” she said.

Current operations employ about 365 at facilities that include Lowell, Michigan City, Ind.; Cedar Hill, Texas; and Jasper, Ala.

The company’s core manufacturing business fared well even in the face of a national economic downturn. The performance is especially impressive considering the company’s pairing with the fortunes of the construction industry.

The CSM staff is even evaluating the addition of new product offerings this year.

“We’re evaluating different roofing products and looking at market potential for the various products,” Leger said. “Our goal is to have a decision by July 1.”

Adding to the revenue mix is Central Storage Works, a division launched in 2003 that engineers and sells complete building systems for mini-storage projects as well as boat and recreational vehicle storage.

In 2006, the company opened its Steel Source division to take advantage of its volume-buying power and resell steel coils to smaller roll-forming ventures.

“We have a lot of competitors popping up in the market, and this is one way to help keep some of the business,” said Rick Carpenter, CSM’s CEO.

In 1995, the company started Metal Central, retail outlets that sell metal buildings and metal roofing to contractors and homeowners for commercial and residential projects. CSM has Metal Central operations at its Lowell and Jasper, Ala., locations and one stand-alone facility in Little Rock.

The company also runs a 54-truck fleet. CSM transports product to customers on the outbound load and picks up shipments for the back haul to help maximize efficiencies and generate income.

The extra revenue is nice, but the main purpose of the CSM fleet is to support the company’s just-in-time delivery. CSM turns an order around in two days compared with a week for most competitors.

Carpenter credits the system with providing a framework for success.

“We do it faster than anyone else,” he said.

CSM is a faith-based company that operates much like a public company. Employees account for about 40 percent of its shareholders, courtesy of an Employee Stock Ownership Plan started in 1992.

Carpenter believes the ESOP helps boost productivity and heighten customer service, an ownership arrangement bolstered by the company’s open-book management and share-the-wealth philosophy.

Each quarter, Leger tries to visit a different company location for a staff meeting to talk about the company’s financial performance, direction and significant developments as well as field questions. She also coordinates meetings with area clients as part of her quarterly travel, a carryover from her five years as vice president of operations and trucking..