Jaffrey firm lays groundwork for growing global presence: Somero Enterprises finds on eager market for its technology.

Historically, pouring concrete flooring for warehouses, manufacturing facilities, big-box stores and parking lots was a time-consuming, costly and less-than-exact practice.

Traditionally performed by a team of men armed with a 2-by-4 and a level, floor construction was completed one 20-foot patch of concrete at a time. The resulting surface was often uneven, creating safety hazards and areas vulnerable to damage.

Jaffrey-based Somero Enterprises Inc., manufacturer of technologically advanced concrete placing equipment--including the Somero Laser Screed and associated machinery--has spent more than two decades revolutionizing the industry, making the manual method of concrete floor construction a thing of the past throughout the United States and increasingly throughout the United Kingdom and elsewhere in Europe, Australia, the Middle East, Africa, Latin America and Asia.

"This is now the only way to do these large jobs. It's been a huge improvement for the industry, allowing for fewer man hours and better quality flooring," said Mike Niemela, Somero's chief financial officer.

First introduced to the concrete floor contracting industry in 1985 by its inventor, company founder and New Ipswich resident Dave Somero, the tractor-like Somero Laser Screed uses laser technology to level large surfaces of poured concrete.

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Somero sold the business in 1999, and in 2005 it was sold again, this time in a management buyout backed by the Gores Group, a private equity firm based in Los Angeles. Today, Somero--publicly traded on the Alternative Investment Market of the London Stock Exchange--is led by Niemela and Chief executive Jack Cooney.

While Somero Laser Screeds run from $50,000 for the small walk-behind model to $300,000 for the largest ride-on models, the machines typically pay for themselves within a year, thanks to higher productivity, according to Niemela.

"When contractors begin to see they can do more work and make more money using this equipment because there is less labor involved and their timeline speeds up, they realize they have to make the change," said Niemela.

Cohesive international team

Although the company's headquarters are in Jaffrey, Somero Enterprises maintains a manufacturing facility in Michigan and is enjoying a growing worldwide presence.

"We knew there was a market overseas, so in 2000 we purchased our first distribution facility in the United Kingdom," said Niemela. "The global logistics and timing was right because of the rebuilding of the supply chain around the world. There is a need for more and bigger warehouses, a need for more efficiency and more quality."

In addition to building a cohesive international team of Somero employees, the company continues to find itself in the position of actually having to create a market for its product in countries that sometimes have little understanding of the importance of proper flooring in the large structures they are building.

"One of our biggest challenges is going into a new country that doesn't really have a concrete floor industry," Niemela said. "You really have to start from the bottom and teach how to build high-spec floors. It's a real educational process, and one that takes time and a great deal of investment."

Clearly that investment has paid off. In 2007, international sales accounted for 40 percent of Somero Enterprises' S65 million in revenue.

According to Timothy Whitaker, senior vice president at Citizens Bank, the success experienced by Somero Enterprises--both domestically and abroad--is based not only on a good product capable of revolutionizing a contractor's business, but also on the level of service provided by Somero.

"The savings which Somero equipment can provide to an end-user has resulted in Somero establishing a large domestic customer base and a growing international customer base," Whitaker said. "Further, Somero supports its technology with strong worldwide after-sale product support."

For Niemela, the future of Somero's worldwide expansion remains bright, hinging on continued acceptance of a technology that allows contractors to remain competitive by delivering a better product in a more efficient manner.

"We are continuing to see increased adoption of our technology in other countries, especially Eastern Europe," Niemela said. "We're seeing a real eagerness to become as productive as possible."

EXPERT ADVICE

When Somero Enterprises needed the expertise to help its growing global business, the company turned to Citizens Bank.

Powered by the vast resources of The Royal Bank of Scotland Group, Citizens was able to provide Somero with foreign check clearing in the United Kingdom, Europe and Asia, executed foreign currency transactions in several of the 50 currencies traded through the RBS currency desk and set up foreign letters of credit to assist in moving products across the continents.

In today's ever-changing global marketplace, Somero needed a partner that could provide advice, expertise and execution. Citizens Bank was the natural choice. To hear more about how Citizens can assist your business, contact Timothy Whitaker, senior vice president of commercial lending at Citizens Bank, at 603-594-7585 or timothy. [e-mail].