Suburban companies fight to keep customers
A machine shop that has operated in the suburbs for more than 60 years is suffering, like most companies of its kind, as more and more work is sent to China.
Sister companies Red Devil Manufacturing and V & L Enterprises, which operate at 422 Mercantile Court in Wheeling, are working hard to define their niche and keep the metal working shop moving forward.
Tom Morgan, co-owner of Red Devil, understands that parts can be made cheaper in China, but he says the quality and customer service seen here cannot compete.
"It hit everyone hard. We lost 30 to 40 percent of our jobs to China," said Morgan, a resident of Buffalo Grove.
"I don't think that work will ever come back," he said of the trend that started about 10 years ago.
In an effort to stay alive, Red Devil and V & L will continue to tackle intricate prototype jobs.
"We have to focus on the businesses that want to make their parts here," said Morgan, 65.
The sister companies make all kinds of parts. Their lineup includes parts for medical and dental equipment, cargo stability devices, hardware for home safes and door closures. They work with beverage dispensing companies as well as make parts for pump handles at gas stations.
"People don't realize what goes into making a part," Morgan said, whose warehouses are filled with state-of-the art machines that tackle the tricky stuff.
He works with Ken Bruckner of Barrington in running Red Devil, which is expected to see about $1.5 million in annual sales. The company has six employees.
The main difference in the companies is the type of machining and jobs they take.
V&L is more likely to do prototype work where the primary focus is on computer controlled machining and computer numerical control, said Steve Dzieglewicz of Barrington who handles the V & L side with Jim Bazdor of Algonquin. V & L employs 14 people and sees between $2.5 million and $3.5 million in annual sales.
Dzieglewicz said Red Devil is more likely to handle the mechanical, higher quantity jobs.
Frank Belgrau of Hoffman Estates oversees both companies.
"The companies compliment each other. There's not much we can't do," Morgan said.
Dzieglewicz agrees. He says he expects customers who require complex parts will stay at their Wheeling company. "We're going to keep going. We have a niche - we don't turn down the tricky stuff," said Dzieglewicz, 57.
Another key factor is the customer service and communication that their company provides, Dzieglewicz added. "We've always had a receptionist. We're reachable by cell phone. You don't see this as much anymore," he said.
Keeping strong relationships with customers is vital for the companies that have survived for decades. Red Devil started small in Rosemont in the 1940s. About 25 years later V & L Enterprises was formed.
• Kim Mikus covers business and retail. She welcomes comments at (847) 427-4567 or kmikus@dialyherald.com.