Success Stories - Valiant Machine and Tool Inc. - Ontario Auto Supplier Flies against the Odds

Ontario Auto Supplier Flies against the Odds

How has one 50-year-old Windsor tooling manufacturer flourished in the current tough economic environment? By diversifying, of course.

Valiant Machine and Tool Inc., celebrating five decades this year, started as a one-person business when Mike Solcz Sr., chairman, opened his small machine shop in 1959. The company has stressed diversification and expansion in its products and services from the beginning. It now has 18 facilities in eight countries, including the U.S., Austria, Germany, Belgium, the Czech Republic, Slovakia and India.

"We've grown from a one-man operation to almost 1,300 workers," says Mike Sr. "People ask if I planned this. My objectives were all based on customer relationships. Valiant's continued success is based on the individual efforts of each and every member of the Valiant team."

The automotive industry has always been Valiant's backbone. In fact, its first major business came from Chrysler, and Detroit's two other "big three" auto makers, General Motors and Ford, soon followed.

For decades, the auto sector boomed and Valiant expanded. By 2004, 95 per cent of its work was for the auto industry, with 90 per cent in the United States. But the need for change was becoming increasingly evident as the automotive market began to show signs of slowing down.

"We've always known it's not good to have all your eggs in one basket," says Mike Sr.'s son, Marty Solcz, who is now Valiant's executive vice-president and chief operating officer, and one of several family members with the company. In a strategic move, the management team committed to a plan to aggressively pursue clients in new areas. The aerospace industry was one of them.

Valiant designed, built and supplied five mobile tail support (MTS) systems for Boeing's 747 “Dreamliner” cargo freighter. This key piece of equipment supports the opening and closing of the massive tail section of the 747 to allow the rear cargo loading of large wing and fuselage components for Boeing's new 787 Dreamliner aircraft.

The Dreamliner has been the centre of worldwide attention for its innovative design. And Valiant, with its MTS technology, was able to accommodate Boeing's requirement for just-in-time assembly of major Dreamliner components. The MTS is now in service at airports in Asia, Europe and North America.

In 2007, just three years after the team recognized the need to diversify its customer base, Valiant received both a supplier of year award and a performance excellence award from The Boeing Company.

Other new clients were added and Valiant continued to pour significant resources into research and development (R&D) to ensure that new high-performance niche products were continuously developed to enhance solutions for its customers. Valiant Corporation is now a global provider of automated production systems and tooling not only to the automotive industry, but also to the aerospace, construction, forestry, mining and alternative energy sectors.

Marty admits to having had a few sleepless nights a year ago when Chrysler and GM were facing major financial challenges. But Valiant's strategy to diversify has worked well to help insulate the company from the effects of this economy.

"Over the last several years, we've successfully diversified geographically, as well as through our product offerings, competencies and operating sectors,” he says. “Projects such as the MTS technology for Boeing represent our successful strategic initiatives, so we can better satisfy the complex requirements of our customers in a challenging global market environment."

What does the future hold for Valiant? The company continues to grow with an eye to expanding its U.S. and Europe operations, developing new export markets in Asia, and integrating its technology offerings for its global customers. Diversification will remain important, and so will supplying turnkey automated productions systems and tooling for the automotive sector.

As the economy begins to improve, Mike Sr. adds this advice for Valiant's continued success in domestic and export sales: "After achieving excellence in design and manufacturing, pricing is the key to growth in the global automotive industry - and never forgetting that satisfying your customer is the only thing that matters."