The 3 Cs: Character, Competence, and Chemistry
The Development of the Niche
At the turn of the millennium, the economy was strong in the Gordonville, Pennsylvania, region. The area had a reputation for producing excellent portable buildings at a fair price, and the public had sufficient disposable income to invest in them. Many manufacturers were taking many of the opportunities and running with them. However, gaps in the transportation part of the market went largely unfilled. In 2000, Dan Petersheim seized the opportunity to fulfill that service gap.
Initially the company focused on repairs and modifications of existing trailers. As the portable building industry grew, its transportation and logistics needs followed suit, and the shed hauling market developed. A busy shed-hauling market allowed for innovation, and Pine Hill began manufacturing a variety of trailers for a variety of needs.
Bumps in the Road
Jay McCumber, CEO, said the economic downturn of 2008 had a strong effect on the portable shed industry, as on most other industries. Trailer orders dropped down to a trickle. President and founder Dan Petersheim’s strategy included focusing on trailer maintenance and repair and reinvesting the revenue into innovation of the trailer line, thereby putting the company in an enviable position when the economic conditions improved.
Beginning in 2015, the company experienced several years of growth, which is of course a positive situation but it also creates challenges. Heightened demand leads to greater space and hiring needs. The solutions: opening a new manufacturing operation, expanding their parts store, and strategic hiring.
Employees and Customer Service
What is strategic hiring from management’s viewpoint? McCumber said, “Through rigorous interview and hiring processes we look for specific character, competence, and chemistry traits in each employee we hire, taking the time to ensure that the employee will be a good fit.”
Part of fitting is having the same values. The company’s philosophy and culture is based on biblical principles. It is important to have shared values since the team will carry out the company mission.
New ideas are encouraged, as management nurtures an innovative spirit, leading to better processes as well as driving manufacturing innovation.
Another shared value is their love of their work and pulling together to get it done. The community of workers is a team and leaders are coaches more than directors.
“Forming the best team we can is Priority One,” McCumber said.
“With care and a heart to serve, we see ourselves and our customers and vendors as partners, working together to move lives, families, and businesses forward,” he added.
Part of maintaining an A team is retaining team members. McCumber said that employee retention in the blue-collar world can be challenging since everyone wants these skilled technicians. They embrace assertiveness, openness, empathy, and good pay for good work, thereby hoping to see their employees flourish together at Pine Hill for many years to come.
Great Partners
Serving your customers depends not only on your company’s actions, but your vendors’ actions also. Pine Hill Trailers relies on these vendors to provide great products and service: US Metals, G3 Mechanical, RG Group, Beiler Hydraulics, Weaver Distribution, and Dexter axles and brakes.
Lessons Learned
Manufacturing processes are quite expensive, McCumber said, so it would have been beneficial to be more knowledgable about capital procurement. Looking back, he feels there may have been some creative options that could have made the process easier that were overlooked.
While growth is what every company strives for, McCumber thinks that the fast growth they experienced would have been better if they had stepped back and scaled their growth so they could plan and grow at a slower pace, thereby putting them in a more advantageous place for the future. Instead the company did what most companies would do — run to keep up with demand.
Enterprise Resource Planning software (ERP) is a great way to manage your business and streamline processes. However, a lot of research should be done so you know exactly how it will impact your operations; then you can plan your transition.
Marketing should not be neglected, and good marketing should never be underestimated.
McCumber’s final piece of advice: “Good is never good enough. Better never stops.”
Trends and Opportunities
Transportation and logistics are market-correcting after the massive bump they had during COVID-19, McCumber said. The correction then moves downstream to affect smaller markets like shed hauling.
Customers are looking for more durable, heavy-duty products than many sought in the past. Today, quality drives customer loyalty, not price.
While shed trailer manufacturing and trailer service are the company’s core and will continue to be so, McCumber sees opportunities in other niches. One such is in custom manufacturing, working with partners who have unique manufacturing needs and ongoing projects. Another opportunity is in Jutland, the company’s truck bodies division. They make aluminum truck and service bodies for the construction and service industries, in both standardized and customized options, so there is a lot of growth potential.
The Future
In regard to what’s next for Pine Hill Trailers, McCumber said, “The company will continue to produce the best shed trailers in the market while growing in our custom manufacturing capabilities and partnerships.
“Our Jutland brand is a big part of our future,” McCumber continued. “Serving new markets in the construction and service spaces with the right truck and service bodies is a great opportunity for us with a low barrier to entry.” GSCB
