Marketing strategy gives company a 'Blockbuster' success story.

Rodgers-Wade Mfg. has turned store future manufacturing into a global export commodity

It could be something from an early science fiction movie: The Store Fixture Company That Took Over the World.

Check out a videotape at most any Blockbuster Video around the globe, and you'll probably encounter some of Rodgers-Wade's handiwork. Walk through the entryway to a Discovery Zone, and you'll probably discover another Rodgers-Wade product. This Paris, Texas-based company's store fixtures are also on display in most Blockbuster Music stores, Claire's Boutiques and Pier 1 stores.

So whether in the United States, Canada, Japan, Mexico, Spain, England, Chile or Venezuela, enter one of these well-known chains, and you'll probably see store fixtures built by Rodgers-Wade.

It's this successful global marketing strategy that has earned Rodgers-Wade the title of WMIA 1993 Exporter of the Year.

"In naming Rodgers-Wade as the association's first Exporter of the Year, we are honoring a true global competitor," said John Derda, president of the Woodworking Machinery Importers Assn. "Its success clearly demonstrates that there is a large market for high-quality, competitively priced American wood products, and that looking beyond our borders for customers means more profits and more jobs for the American woodworking industry," Derda added.

Global emergence

Shipping store fixtures knock-down (KD) is what allows Rodgers-Wade to keep its costs down and remain competitive when bidding overseas jobs, said president Don Wilson. Currently, 25 percent of Rodgers-Wade's total volume is exported, primarily to Blockbuster franchises.

Since entering the global market export sales figures have grown dramatically, from $3,500 in 1990, to about $2.7 million in 1993, said Wilson. Export sales currently account for 20 percent of the company's $13.5 million annual sales. With the increase in sales, employee size has also risen, from 40 workers in 1991, to 107 in 1993.

Wilson said his company enters foreign markets through contacts with American companies already franchising in foreign countries. In 1990, Canada became the first market penetrated by Rodgers-Wade. This was followed in 1991 with exports into Japan, Mexico, the United Kingdom and Spain. Work in Chile and Venezuela developed one year later. Wilson said future projects are tentatively planned in Italy and Australia.

"The American woodworker will find that he can be very competitive," Wilson said. "With Japan, for example, we have lower overhead costs: land is cheaper, waste disposal costs are less and we don't have to import the raw material. But you really need to be in a KD system for the freight costs."

Rodgers-Wade fixture lines are modular, with initial on-site assembly performed by a Rodgers-Wade employee to ensure quality control, Wilson said. "When exporting, quality must be a top priority because the customer is often apprehensive about the distance (between his store and the fixture supplier) in case of problems. When a problem does arise, you must respond immediately and fix the problem to maintain his comfort level in your product." Wilson added.

Developing a niche market 

It wasn't until 1986 that the company found its niche in the store fixture industry. Prior to that, the 137-year-old company produced everything from tables to caskets, including furniture and cabinets. Don Wilson, who purchased Rodgers-Wade in 1968, directed the company's move into the store fixture industry.

According to Wilson, the decision to enter the store fixtures market was based on job opportunities. "(Retail) customers are constantly remodeling, so it's a never-ending process. The amount of repetitive business for each customer is better than in the cabinet industry. In the cabinet industry, once you sell to a customer, that's usually it," Wilson said.

Wilson gained his woodworking experience by trial and error. "When I first started with this business, I didn't know anything about woodworking -- I didn't even know what a mortise and tenon joint was. One of the best things I did was to be a manager and surround myself with competent people," Wilson added. Among those whom Wilson attributes the company's success to are sales representatives Jeff and Connie Uhri. The Dallas-based firm of Uhri & Associates has handled Rodgers-Wade's sales since 1991.

Blockbuster of a deal

A large percentage of Rodgers-Wade's work, which often includes manufacturing and installing the check-in/check-out counters and displays, is for Blockbuster. "We started out by acting as a subcontractor for a Blockbuster Video job," Wilson said. This in turn has parlayed into work for Blockbuster's newest venture, music stores.

According to Wilson, the secret to success is a combination of design simplicity and use of high technology equipment to ensure accuracy and high production rates. Rodgers-Wade uses the 32mm system for high-production case goods construction and designs the components, such as the counter areas, as interchangeable pieces. For example, the height and depth may be a standard size, while shelving placement and individual component lengths can vary. "The more repeat volume you have, the more advantageous it is to be on the 32mm system," Wilson said. "You're either in the custom market or not. And we found that the 32mm system does not lend itself well to custom work."

Rodgers-Wade uses a combination of 20 percent veneered and 80 percent laminated particleboard for its fixtures and point-of-purchase displays. For tubular items, such as the entryways to Discovery Zones, the company will hand laminate over a reinforced cardboard-based shaped substrate.

Whenever possible, case goods are shipped KD, using Mod-Eez fasteners for assembly. "This allows us to ship a lot of volume to a site without the high cost of freight," Wilson said.

CNC equipment an asset

"CNC equipment has allowed small companies to compete with larger ones because it offers the higher production and accuracy. CNC equipment holds tolerances better than the finest craftsman," Wilson said.

"There is no question that without the automated equipment we brought on-line, it would have been impossible to keep up with our expanding sales," he added.

Rodgers-Wade purchased its first piece of CNC equipment in 1987 -- a Holzma panel saw. "We then added equipment in increments as we became comfortable with the first piece," Wilson said.

The next item purchased was a Morbidelli 41-spindle CNC boring machine with limited routing capabilities. When demand became too great, the company purchased two Shoda dual table CNC routers: an NCW 163 six-head router with piggyback drilling and an NC 163-P four-head router with pallet changer capability, said James Miller, vice president. A Polaris software program is used for the CNC routers.

"Also integral to Rodgers-Wade's fixture production are three Homag SE 7400 single-sided edgebanders to band PVC edge-banding on case goods. The company also uses a Busellato 28-spindle dowel inserter and a V-groover.

To keep up with demand, Wilson said he upgraded the original Holzma panel saw to a rear-loading Holzma Model HPL 21, which the company uses primarily for cutting stock shelving. Wilson also added two Schelling panel saws, an FW and an FI 430. The FW has a rear-loading feature and is used for cutting large cases and 1/4-inch material. Because of its fence and pullback feature, the FI is used for cutting shelving as well as smaller parts. All three saws use Pattern Systems International software programs for generating cutlists and optimizing yields.

"The panel saw is the most important machine in a shop. Because no matter what you do, if it's not cut accurately, then the boring and everything else is irrelevant," Wilson said.

"People initially tend to be afraid of CNC equipment because they don't know how to program it or work on it. But for Rodgers-Wade, it has been a very easy transition. Now, (the learning stage) is not even a factor anymore when we buy machinery."