Quality work and quality people have propelled Rathburn Tool and Manufacturing to success since 1983. Founded by Jerry Rathburn, the company expanded from a dirt floor shop with two mills, to a more than 39,000-square-foot facility employing 30 people. Rathburn’s background in calculations from his service as a soldier in Vietnam, mechanical engineering studies at Purdue University, and experience as an engineer at the Dana Corporation, prepared him for the demands of the manufacturing industry. From the start, he envisioned graduating from a small job shop to a production shop by finding creative ways to process things efficiently, and that idea came to fruition through his persistent efforts.
In 2019, he handed over the reins of the business to his daughter, Angie Holt, and under her watch as President and CEO, the company continues to thrive. Jerry still sits on the Board, as do two other of his daughters, so this is still very much a family-run enterprise. Angie grew up with the business, but after college left to forge a career in commercial construction for more than twenty years. She returned to Rathburn Tool in 2018, utilizing the business experience she gained in the construction industry to move the company forward. Although her own background is not in machining, she says, “I surround myself with great talent, and I focus more on the strategy and the business side. I’ve been surprised at how similar things are. It’s revenue and income, expenses and challenges, and leveraging that experience, bringing all those great lessons back to the family business.”
Diversification requires certifications
The mainstay in the earlier days of Rathburn was the heavy truck industry. Still, in recent years they have diversified their mix to several other areas that require quality, precision-machined components. With their ISO 9001, IATF16949, and AS 9100 compliance and certifications, the company is moving toward additional Department of Defense and aerospace work, bringing their experience and expertise to whole new categories. That diversification also helps to stabilize the workflow as different industries experience their own peaks and valleys. Holt says she does not want to rely on any one industry for more than thirty percent of their business.
Acquisition of raw materials is an important part of meeting deadlines and the company has a number of suppliers able to meet their needs at fair and reasonably stable prices. Coatings and heat-treating are the main outside services that Rathburn needs to use, and again, long-term relations with trusted vendors allow them to confidently expect the quality and turnaround time necessary.
Partnerships build customer longevity
Holt views the company as a partner to their customers, rather than just a supplier. She says, “We have four incredibly smart process engineers on staff. We build to the customer’s print. We don’t design or have our own products, but we do a design assist. Production is really where we shine. We partner with the customer upfront, trying to figure out their options for reducing their machining costs and accomplishing the same thing. We’ll work with customers to improve their product, and I think that’s a real value-add for them.” If Rathburn finds a problem, they immediately notify their customer and work with them to find a solution. That kind of communication is what leads to the confidence and trust needed to create long-term business relationships.
To achieve that kind of strong bond with their customers, having the right people on staff is key, and Rathburn has a stable, long-term group of employees who fully understand and appreciate the goals the company has set. When they do need to hire, Holt says, “It’s not a matter of walking in the door with the right skill set. It’s walking in the door with the right attitude, willing to work, and willing to be part of a team. Either you have it, or you don’t. You can’t teach that, but you can teach the skills.”
Hiring the next generation of manufacturers
Though automation in recent years has improved efficiency and overall production, Holt says, “Without the talent, you’re limited in how you can grow, so that’s going to be a critical piece in going forward. If I find good folks, whether the timing is right or not, if I find them, I’m bringing them on board and we’re going to move forward.”
Bringing along future talent is very important, and with a renewed focus on flexible degrees in the state of Indiana, the company has partnered with local high schools and other local businesses to give Junior and Senior students hands-on experience and exposure to the manufacturing environment. “We’re helping them try to decide what’s a good fit, and what’s not a good fit,” says Holt. “Ideally, we can find some new talent that would like to stay with us after they graduate, but I see it as a service to the community and to our young people to find a path forward. Not everyone knows what they want to do. In fact, most kids don’t.”
Data tools for efficiency
Going forward, the company is implementing a new Enterprise Resource Planning (ERP) system that will provide better real-time data on the shop floor to further streamline processes and allow faster, more efficient decision-making for both office and shop personnel. Holt feels that this digitization of records and planning will also help solidify the company’s institutional knowledge, as generational shifts occur in the future.
In summing it up, Holt says, “The family and the business are integral to one another. Honesty and integrity are critical to us. We won’t take on a job unless we’re sure we can excel at it. We’re not going to try to pass anything that’s questionable. That’s our name, that’s our reputation, that’s our family name, so those things tie together.”
