"Integrating the Phoenix operations with those in Fort Payne is part of our aggressive pursuit of greater operational efficiency and manufacturing improvement," said Michael Jobe, president of Heil Environmental Industries. "The move also provides for future growth with ample room for expansion in a more modern facility that will enable us to better serve our customers."
The advantage of increased focus and leveraged synergies will provide:
Higher quality
Centralized customer service
Centralized engineering and new product development
Improved operational efficiencies
Heil has been operating the facility since 1990.
"While the facility was an excellent acquisition in 1990, our analysis showed that it would never be able to reach and leverage the greater volumes and leaner processes enjoyed by the much larger and more efficient Fort Payne facility," Jobe says. "Although closing the Phoenix manufacturing facility will mean that some employees there will lose their jobs, it will help sustain jobs throughout the rest of the organization."
Heil will not be leaving Phoenix. Heil Arizona, a company-owned distributorship offering new and used Heil refuse collection vehicles, Heil Certified OEM Parts, competitive Parts Inc. aftermarket parts, and maintenance service will continue to serve customers from its Phoenix location. Heil Arizona will provide customers with a "one-stop-shop" for their entire refuse collection vehicle, parts, and service needs. Additionally, the decision to close the Phoenix manufacturing facility will not affect Heil’s western sales and support operation.
After integrating the Phoenix production volume, the Fort Payne facility will still have adequate capacity to manage growth well into the future, even without additional physical plant expansion. All of the engineering, prototyping and tooling has been completed for a seamless transition and no products will be discontinued as a result of the integration.
In addition to manufacturing, resources in the areas of engineering and product development will also be integrated into the Fort Payne operation.