Crazy Day: Incredible Inferno Destroys Neighboring Buildings

My clothes smell of smoke and I had to wash the soot off of my face. It was a crazy day at Horst Engineering in East Hartford, Connecticut. A massive fire destroyed two adjacent properties in our North Meadows neighborhood. No one was hurt, which seems like a miracle. It is also a miracle that our property was spared. It feels like the week is already over, and it is only Monday evening. We had a year’s worth of excitement and anxiety packed into one day. At 8:47 A.M., I was alerted by my uncle, Steven Livingston, that there was a fire across the street from our 36 Cedar plant and very close to our 41 Cedar plant. He was arriving at work just in time, as it looked like the fire had just started. He grabbed a land line and phoned in the 911 call.

I ran outside and smoke was already billowing from one corner of the 50,000 square foot warehouse/office building at 71 George St., where the fire had started. This was less than 50 feet from our own 7,000 square foot building. A small 3,000 square foot building at 79 George St. is in between 71 George and 41 Cedar. The entire block includes a house on James St. and another building on Cherry Street. This is a high density block with adjacent structures as close as three feet to each other.

Employees had just begun to escape OFRA, the occupants of 71 George. Our employees at 41 Cedar were alerted and they got out of our building. I ran into 79 George and notified the only occupant that he had to get out. I think I simply yelled, “Get out of the building now!” and the two of us left the building. Horst Engineering’s employees at 36 Cedar poured into the street when morning break started at 8:50 A.M. Many of our vehicles were parked very close to the blaze, so we began moving them to make room for the fire trucks, which we could already hear in the distance. It was surreal.

79 George was completely engulfed in a matter of minutes, with flames and smoke shot through the large windows, and flames broke through the roof. We got all of our employees back away from the fire and assessed the situation. Eventually, they were evacuated from the neighborhood. You could feel the heat two hundred feet away. The first fire truck on the scene laid out hose and attempted to charge the line from a nearby hydrant. While they struggled to set up, I circled the block in an effort to evaluate the situation. Within 10 minutes, there were more than a dozen East Hartford Fire Department apparatus on the scene. It seemed like two hours had gone by in a matter of minutes.

So much went on today, that it is difficult to replay the events in my mind. At one point, the power to both of our facilities was killed while the blaze was being battled. The power lines on George St. were burned. That ended our internet connection. The water company, power company, phone company, cable company, and hazardous material agencies were all on site. East Hartford got mutual support from the neighboring towns of Hartford, South Windsor, Manchester, and Glastonbury. With no power in the North Meadows, employees from all of the local businesses swarmed into the streets. Hundreds of people watched the firefighters in action.

Media crews showed up and began covering the inferno. I wasn’t wearing my heart rate monitor, but I’m sure that the beats per minute was up there. I often joke that I’ve been “fighting fires” every day during this economic recession, but today was a different story. It was literal.

The building at 71 George St. is totaled. It collapsed in several sections. The steel supporting roof beams are bent and twisted. The cinder block walls caved in.  By the time the sun went down, it was being systematically demolished while the remaining firefighters put out hot spots with gallon after gallon of water. Unfortunately, the small building at 79 George was a victim of the blaze. It was very close to the origin of the fire in the larger building and it succumbed to the intensity of the fire. Once the roof heated up and flames spread, it was too late. They poured an amazing amount of water on the fire, from all angles. The command center had been established in our parking lot and we got a close up view (far closer than I ever want to experience again) of how they coordinate such a serious blaze. The tower trucks positioned nearest to our building were able to keep back the flames and they only came close to our building a few times, but with all of the smoke, there was much to be concerned about.

When most of the fire had been contained, a firefighter escorted me onto the roof of our property so that I could assess the damage. We have 128 solar panels on the roof of the building, which was newly renovated in 2008. A more detailed assessment will take place tomorrow, but clearly, our building escaped the devastation that struck our neighbors and their businesses. Any time you see property and livelihoods impacted like this, you shudder. Horst Engineering has some relatively minor set backs to deal with in the coming days and weeks as this emergency shifts to a clean up and rebuilding effort. Again, it was great fortune that no one was hurt (occupants or emergency personnel) and that tomorrow’s sunrise offers a fresh start.

Horst Engineering will be back up and running at full force tomorrow. We have a new perspective on disasters. We have a strong plan to regroup when our first shift reports for work in the morning. Our plant in Mexico kept making products while we were consumed with the events of the day in Connecticut. The efforts of the emergency personnel should be commended. They did a lot of work on a fast-moving blaze. This should bring the small community of businesses in our area closer as we band together in support of the affected businesses.

This link will take you to all of the photos that Steven Livingston and I took of the blaze.

The Hartford Courant has substantial coverage of the fire at this link.

NBC 30 has video coverage at this link.

CBIA Manufacturing Conference, Fedele for Governor, and a Unity Plea

Today, I attended the Connecticut Business & Industry Association Manufacturing Conference, with my colleague, Jim Bowtruczyk.“On the line: The State of Manufacturing in Connecticut, “ was billed as a forum for manufacturers to join forces and voices to strengthen manufacturing.

The two of us represented Horst Engineering and saw many of our manufacturing sector friends. We gathered in Cromwell to show our solidarity of our beleaguered sector. With revenue declines of 15% to 60% since 2008, many Connecticut companies are anxious for 2009 to come to a close. Sadness and frustration are two words that come to mind when describing the current state of affairs for this important part of the economy.

The crazy thing is that if you look ahead at some of the new challenges that manufacturers might face, then you get even more concerned about our prospects for growth. Certainly there will be thriving manufacturers in the future, but the shake out has already claimed many victims, and there are bound to be more business failures. The colossal loss of jobs in Connecticut has devastated consumer spending and driven unemployment to unprecedented levels. Manufacturing jobs are vital to the state’s economy, yet many of our legislators are more concerned about preserving government programs and their own pet projects. Reducing government spending and incentivizing the private sector to grow jobs are not important objectives, though they should be.

Today’s conference was about rallying manufacturers to speak out on behalf of industry in an effort to highlight the critical importance of manufacturing jobs to the welfare of our state and our country. We heard from several speakers, including CBIA CEO, John Rathgeber. He implored the attendees to let the policy makers know important manufacturing is. We also heard from Commissioner Amey Marrella, of the Department of Environmental Protection. She took some shots from the crowd for DEP’s history of uneven enforcement, but succeeded in highlighting how her department is using lean enterprise, a page from the manufacturing play book, to eliminate waste in their processes.

Aric Newhouse of the National Association of Manufacturers, painted a bleak picture of the manufacturing economy. He spoke about four big issues facing manufacturers at the federal level: 1) health care reform, 2) Employee Free Choice Act (card check legislation), 3) climate change legislation, and 4) jobs. He spent most of his time dissecting the two health care bills in Congress. He pointed out how the Obama Administration has put most of its focus on access to health care, rather than the cost of health care. It is the cost of health care that is putting a massive burden on small businesses, like Horst Engineering.

When I asked what NAM’s position was on these current bills, he said without hesitation, “Start over.” NAM believes that both the Senate and House bills should be scrapped and that the whole process should begin again with health care cost reduction as the primary objective. NAM has many suggestions as how this should be done, and will be working on behalf of manufacturers and their employees. It is kind of crazy to hear all of the new taxes, mandates, and rules that are going to be placed on businesses should either of these two bills pass. To really understand health care reform, you have to dig into the details. Newhouse’s presentation was concise and riveting. Most of us, including NAM, agree that making health care accessible to all Americans is a noble goal. However, since health care is a cost that no small business has control over, and small businesses are responsible for the lion’s share of job creation in our country, they more should be done to reduce this massive burden on our businesses.

A panel that included Sam Bergami (Alinabal Holdings Corp.), Joe Vrabely, Jr. (Atlantic Steel & Processing), and Carol Wallace (Cooper-Atkins Corp.) shared first hand how their businesses have been damaged by the recession. They were candid in their discussion and their stories represent many of the challenges that their fellow manufacturers face.

Our last speaker hijacked the forum. His name is Michael Fedele, and he is the Lieutenant Governor of Connecticut. Fedele, a Republican, chose to precede his remarks at the meeting by announcing his candidacy for the governor seat that Jodi Rell will vacate when her term expires next year. Fedele is a friend of the CBIA because he is an entrepreneur, who proved his business mettle prior to entering public service. I don’t know much more about him, but as one of the many candidates (both Democratic and Republican) that has declared an interest in our state’s top job, we are sure to learn more.

It was a hilarious display of how politics works. The forum was going smoothly with a full house. Then, towards the end of the panel discussion, the back of the room began to fill with a bunch of new folks. The media section swelled, the cameramen appeared, and then the “handlers” lined up against a wall. After a brief delay, Fedele entered the room from a side door. John Rathgeber gave him a nice introduction before he took the podium and launched into the first official speech of his campaign. At the moment he announced his candidacy, a handler placed a “Fedele for Governor” sign at the foot of the podium. It was a made for TV moment and at that moment, I was glad for two things: 1) I had moved from the front to the back of the room and 2) I don’t own a TV.

As for the manufacturers, we had to get back to work because there is much work to be done. We shouldn’t count on any of our politicians. They will not help us climb from the depths of this recession. Stimulus is wasteful, and manufacturers spend their days eliminating waste. The government should loosen their grip, back off on the new tax proposals, and let small businesses innovate. To balance budgets, legislators and administrators will have to cut spending the same way businesses do in times of distress. Unless we get some breathing space and support, we will be hampered in our recovery efforts. Manufacturers, unite!

Manchester Community College & Marketing

Yesterday was about education. After hearing T. Boone Pickens speak at Goodwin College in the late afternoon, I returned to work for another hour. Then, it was off to Manchester Community College for night school. I participated on a panel of local business leaders that was convened by my friend, Steve Nelson, for his 200 level Marketing course at MCC.

It had been a few years since I set foot on the MCC campus, but like Goodwin, there is a stunning new building. This classroom wasn’t like the basement-windowless-cinderblock one that I occupied for my Shakespeare course at Boston College during the summer of 1994. This classroom was unreal, with a soaring ceiling, glass on three sides, comfy couches, and art work. It was hard to believe that I was at a community college. Both Goodwin, which is private, and MCC are proof that there is massive demand for affordable schools that are close to home and work. They both cater to “non-traditional” students, which is everyone except the typical 17-22 year old who dreams of a four-year education.

The panel was a lot of fun. This is the second time in a month that I have spoken to a group of students at a Connecticut college. My co-panelists were Amy Bergquist, a Hartford based real estate agent, Dagmar Rapp, a marketing manager from Hewlett-Packard, and Ernie Rutt, the owner of Augie & Ray’s Drive In.

Bergquist’s earlier career was spent in operations at Pratt & Whitney Aircraft and Anderson Consulting. She expressed her excitement for her current career and highlighted her entrepreneurial ambitions. She may eventuall have her own agency. She loves being a sole-proprietor. Rapp has worked in large companies and HP is one of the largest. She does field marketing and shared some of her tactics for building HP’s brand in the local area. Rutt took over from his father, the founder of their restaurant, and has worked hands on in the business all his career. Augie and Ray’s was founded in East Hartford in 1946, the same year that Horst Engineering was founded and is now in its fourth generation.

Rutt was coming off an amazing day where he hosted T. Boone Pickens for lunch. He was still wearing his special Auge & Ray’s golf shirt made in Oklahoma State colors to honor Pickens.  Yesterday, in advance of the visit, they named one of their most popular sandwiches after Pickens. They don’t have a website, but you can’t buy the public relations that they got when Congressman John Larson brought the Pickens entourage to his favorite lunch spot with the media in tow. Thinking about that kind of photo-op gives me the chills. Nice marketing indeed.

So, the four of us took questions from a moderator, recounted our stories, and then took questions from the students. It was a long day, but it ended nicely, sharing our passion for business.

T. Boone Pickens Stars at Goodwin College

 Yesterday, my Horst Engineering colleague, Art Roti, joined me and a host of other folks to hear T. Boone Pickens speak at Goodwin College. Pickens was in town as a guest of US Representative John Larson. Congressman Larson, and Goodwin College President, Mark Scheinberg, hosted Pickens during his brief visit to East Hartford, Connecticut. It was a big day for Goodwin and a big day for East Hartford.

Many local business leaders and politicians attended the pre-event reception at Goodwin’s amazing riverfront complex. The 6th floor room offers great views of Hartford and the Connecticut River. Packed in were a bunch of people with interests in the energy economy, renewable energy, and the environment. Pickens made billions of dollars as an oil industry entrepreneur. He is a geologist by trade and loves to talk about our country’s natural resources.

 

Tired with the status quo, he has put $62,000,000 of his own money into the Pickens Plan. This plan is his effort to move energy policy forward. At the forum, Pickens was full of energy and well spoken regarding our country’s energy issues. He is passionate about his number one objective: reducing the United States’ dependence on foreign oil. Foremost, this is a security issue for Pickens. The efficiency, environmental impact, and economic growth objectives are laudable, but he is most concerned about the fact that we buy much of our oil from countries that don’t like us.

He referred to Venezuela’s President, Hugo Chavez, as a “cluck.” Pickens went on to say that the credibility of the United States has suffered. We are 4% of the world population and we consume 25% of the oil. He pointed out that we are “paying for both sides of these wars” and that over the past 40 years, our increased consumption of foreign oil has resulted in the largest transfer of wealth in the history of mankind.

 

He spent much of the time discussing transportation fuel, one of his favorite topics. His plan calls for the conversion of our heavy trucking industry from diesel fuel to natural gas. He pointed out that our country has abundant natural gas reserves and that we have not pursued the technology. Pickens said that one 18 wheeler is equivalent to 320 cars. Trucks consume a lot of fuel. He says that he has talked to the truckers and that they would get on board with a plan to upgrade the fleet to natural gas. He dismissed questions about natural gas infrastructure and said that it was doable.

 His natural gas for heavy trucks platform is a compliment to Al Gore’s batteries for light vehicles platform. He even said, “I’m with Al,” when talking about batteries. They do seem like an odd couple, considering Pickens’ Oklahoma/Texas oil industry roots. Congressman John Larson has put a bill before Congress (H.R. 1835) that would implement parts of the plan that Pickens is advocating. Larson referred to Pickens as his only “consultant.”

I went to www.pickensplan.com and signed up for the e-mail list. I’m interested in learning more about his personal history. He said that he has pumped millions into this campaign because it is his “mission.” He was too young to serve in World War II, and he had a young family during Korea. He said that this is how he felt, “This is your mission–step up to the plate.”

The visit was a coup for Scheinberg, Goodwin, and East Hartford. Congressman Larson took Pickens to lunch at his favorite local restaurant, Augie & Ray’s Drive In. The Augie & Ray’s staff had custom shirts made with the company logo and Oklahoma State colors. They were very proud to host Pickens.

As the forum wound down, Pickens remarked that he had to get back to Dallas for a dinner meeting. He was primed to hop back on his jet and carry his message elsewhere. Pickens warned the crowd not to think that energy is going to get cheap. Electricity, natural gas, coal, oil, and renewables are all going to require a major commitment on the part of every person. Consumption is as important as supply. Clearly, we need to do things differently. Art Roti and I got a chuckle when Pickens said in reference to the transportation challenges that we face, and the prospect of running out of oil, ”The other option is everybody is going to get on a bicycle…I don’t think that is going to happen.” We looked at each other and both thought, bikes, why not?

Inside Business Report with Fred Thompson

Several weeks ago, I started getting messages on my work voicemail from Inside Business Report with Fred Thompson. They chased me hard. The person calling said it was important and that they wanted to feature Horst Engineering on their television show. It has become an instinct to instantly Google anything that I’m not familiar with. I typed the name of the show into the search field and tracked down their lame website.

I knew it was a scam from the get go. The host is Fred Thompson, but at the time, the site hadn’t been updated with fresh news in a month. I’m not sure whose pockets are getting lined with the income, but it was a weak pitch. Since I’m curious about these things, I phoned the “assistant to the producer.” He never gave more than his first name. He insisted that I set up a meeting with the producer to discuss Horst Engineering’s segment. So, I went along with it and set up a phone call.

The producer dialed me at the scheduled time and I listened to him go on and on about the value of the show and how many people watched it. I inquired how he found Horst Engineering. He told me that their “research analysts” tracked us down. He mentioned something about featuring manufacturing and that our story would be great for the show. So, knowing how much research they did to find us, I asked him what kind of manufacturing we did. He avoided the question and went on again about manufacturing in general. I cut him off at the knees by inquiring about their lousy website. He made some excuse about not updating it. So, knowing that this TV show was interested more in our money than our story, I asked him how much they were charging for Horst Engineering to be on the segment. He didn’t flinch. He said, “$19,000.” I simply said, please remove us from your calling list.

The funny part about the story is that the “assistant to the producer” must have mixed up his files. He called again this week, as if we had never spoken before. This time, I think he got the message.

Catching up with the Appalachian Mountain Club in Boston

The Appalachian Mountain Club is cranking. We recently closed on the purchase of 29,500 additional acres of land in Maine’s 100-mile Wilderness Region. This came at the end of a successful $45MM campaign to support the larger Maine Woods Initiative. Known as the Roach Ponds tract, this land abuts the 37,000 acre Katahdin Iron Works property that we already own, and extends our reach in a region that was already threatened by land development.

The vision that AMC’s leaders had more than five years ago has come to fruition much faster than anyone expected. Debbie and I got a nice update on the club’s growth when we attended a Board of Advisors meeting earlier this week in Boston. The progress with MWI has been remarkable and our club is now positioned to take advantage of our land conservation efforts. Our system of Maine Sporting Camps will expand again in 2010 with the addition of the Gorman Chairback Camps. Debbie and I haven’t been to the KIW property since our last trip to Little Lyford Pond Camps nearly six years ago. Acquiring LLPC was the first step that AMC took towards establishing our major presence in Maine.

Our trip to Boston was a quick one. Since our BOA meeting was at the Federal Reserve Bank of Boston, I dressed like a banker. The Fed was an interesting place to have a meeting, but as you would expect, the conference facilities were top-notch. It was somewhat ironic that we were in a city skyscraper discussing the expansion of our wilderness land holdings. AMC recently revised its mission. We are the oldest recreation and conservation organization in the country, with more than 100,000 members. With the global environment facing such challenges, AMC is uniquely positioned to make a difference and it is cool to be part of that process.

Business Wisdom You Can’t Buy

Earlier this week, I had the pleasure of attending a small breakfast education event that had a big impact. Our group of business leaders got to hear from three Connecticut retail industry leaders: Jack Mitchell of Mitchells/Richards/Marshs, Suzanne Zarilli of Wish List, and Roxanne Coady of RJ Julia Independent Booksellers. All three lead businesses that were among the first businesses to feel the economic downturn. In the case of Mitchells/Richards/Marshs and Wish List, they sell high-end fashions (one really high-end and one casual high-end) and are based in the southwestern part of Connecticut. They were both affected by the financial industry collapse because their clients were right at the epicenter. Fairfield County is a bedroom community for many Wall Street employees. As for RJ Julia, they were already in a tough market before the collapse. As one of the last remaining successful independent book stores, they are faced with fierce competition from both larger chain store rivals and the Internet. They have managed to succeed despite difficult circumstances. The key is that they focus on their niche and execute.

I though Manufacturing was a tough market to be in, but when you hear war stories from retailers, you realize that all business is tough. Their challenges are different from ours, but no less significant. All three CEO’s spoke eloquently about their businesses. You can’t help but be motivated when you hear success stories from small business leaders. I always come away from these events with fresh ideas and a new perspective. Jack Mitchell was funny and interesting. His “heart and head” approach to management isn’t rocket science, but it is a simple mantra that you can repeat. In addition to being one of the second generation leaders of his family’s business, he is a best-selling author. Jack wrote Hug Your Customers and Hug Your People. Both books share his theme of leading with kindness.

I often seek out the counsel of business leaders like these three. At Horst Engineering, we do this within our industry on many fronts. We exchange ideas about technology, lean enterprise, and business development. Earlier this month, two peer companies allowed us to tour their plants and see some awesome manufacturing equipment. Sharing best practices is a sure way to advance your own objectives. When you gather the ideas that others have to offer, you form your own approach. In business, as in sport, you have to learn from the best if you aspire to be the best.

Vasque Clinic @ North Cove Outfitters

Two nights ago, Debbie presented at North Cove Outfitters, in Old Saybrook, Connecticut. She represented the Vasque US Trail Running Team and shared her enthusiasm for trail running with a group of fellow outdoor enthusiasts. Several people were new to trail running and looking for more inspiration. Several others had never run trails, but were interested in trying. A few brave souls were particularly interested in hearing about her ultra-marathon trail running adventures. Maybe a 50 kilometer, 50 mile, or 100 mile trail run is on their horizon…

I played the Sherpa Dad role again, which usually consists of multi-tasking with three or more tasks. I manned the audio/video system, took photographs, and watched the kids. I also enjoyed hearing Deb recount some of the awesome adventures that we have had trail running, adventure racing, fast packing, and hiking during the past 10 years. We had fun putting together her presentation because we got to pull out photos from many of our  past adventures.

The folks at North Cove were really helpful and appreciative of her contribution to their weekly seminar series. They have one of the best outdoor gear stores around. No one has more kayaks in stock! We got a chance to chat with the founder/owner, Norm Cavallaro. As a student of business, I know a successful one when I see one. They have a cool culture fueled by employees who love the outdoors. It was a cool night for a cool talk on a cool subject at a cool venue.

Hartford’s North End: Remembering the Old Neighborhood

Last month, I was searching for a gift for my father’s birthday, when I heard a report on the radio about a book called, Remembering the Old Neighborhood. The book chronicles the history of Hartford’s North End. I went on to read a Hartford Courant story about the book. That led me to stop off at the Jewish Historical Society of Greater Hartford, to pick up a copy.

Rather than review my comments about the book (I haven’t read the whole thing yet), which I gave to my father, a North End native; you can read a summary at this blog, called Tracing the Tribe. My father, Stanley Livingston, was born in Hartford and grew up on Edgewood Street, a short walk from Keney Park. He is a Weaver High School graduate. My grandmother, Sylvia Hurwitz Livingston, also grew up in the North End. Horst Engineering was founded on Garden Street, four streets over from Edgewood. The business started on the second story of a barn and my grandfather, Harry, operated the business in Hartford for four years before moving it to East Hartford in 1950. We haven’t moved our domestic plant since, and we are badly in need of more space and more modern digs, but that is another story.

Hartford’s North End was a cultural and economic hub for much of its modern history. The neighborhood has changed a lot in the past forty years. A mass migration of predominantly Jewish families, to the suburbs, left the neighborhood to a new generation of residents. My grandparents moved to Bloomfield in the late 1960’s. Nowadays, you cannot ignore the fact that the North End is home to many of the city’s poorest residents. It is also a place where crime thrives. This doesn’t make it a bad place, but it does mean that some of the cultural heritage is lost and that visiting isn’t as pleasant an experience as it once was. I will occasionally ride my bicycle through the neighborhood on a quiet Sunday morning. Fortunately, this new book does a good job at reviving some vibrant memories for the neighborhood’s past residents.

If it isn’t Wall Street or Main Street, it must be a Side Street

What is going on with the economy? Don’t try to answer. That was a rhetorical question. I have to admit that I follow this stuff closely. I’m practically addicted to the numbers. I have to be. My decision-making as CEO of Horst Engineering requires that I be well-informed. Truthfully, whether you are a CEO or not, you should pay attention to issues that impact our global economy. I follow the local, state, national, and international news in an effort to gather as much information (intelligence and knowledge) as I can.

At times, I’m overwhelmed. There is so much information out there and it has become a cliche to state that information is traveling faster than ever. There is no shame in admitting that one cannot keep up with the depth and breadth of information that floats through the air. It is also important to remind oneself that just because it is news, doesn’t mean it is fact. Regardless, there is a lot going on right now. This massive stimulus plan has created a bad situation. The fact that the equity markets (public equity markets) have roared back makes the situation even worse.

Dow 10,000 masks the true problems. We all pay too much attention to the fortunes of the largest companies on this Earth. Fortune 500, S&P 500, Forbes list, NYSE, NASDAQ, FTSE, DAX–whatever the list is, this isn’t reality. Reality is that the vast majority of businesses are still small businesses. Small businesses employ most US workers. They are the ones that create value. I was reading about the top global brands in BusinessWeek, and I wanted to vomit. Sure, I cheer on the stock market rally when my mutual funds loaded up with GE, Coke, Amazon, Berkshire Hathaway, Google, Microsoft, and Apple rise. I also want our customers, many are on these lists, to succeed so that we can succeed.

But, that isn’t reality. How come Horst Engineering’s value hasn’t shot up 50%+ in the past six months? We seem to still be struggling with the real problems that are squelching growth and job creation. We continue to invest in our enterprise, but there are major disincentives to hiring. The cost of doing business (especially in manufacturing) are horrendous and the government continues to put up road blocks. The next road block is even higher health care costs.

In Connecticut, this is particularly bad at the state level. Rather than lowering costs for businesses, the state is driving our costs through higher taxes, fees, and mandates. This will not encourage growth. Certain things, like environmental regulations, crime, and homelessness, need to be legislated and governed, but government should allow the free market to work. This is particularly important for small businesses. Unfortunately, we get lumped in with ALL businesses. This is not good.

This whole Wall Street vs. Main Street debate is hilarious. I actually joke that Horst Engineering is on a Side Street. We stay out of the fray by keeping our nose to the grindstone and focusing on what we can control. Most successful businesses are off the radar. They go about their business and contribute real value to our society. You have to believe that most business leaders are altruistic. The greedy crooks may garner all of the headlines, but they are not representative of the true work ethic that makes our economy strong, even in recession.

It was ironic that Jeff Skilling, the former CEO of Enron, made headlines last week. He is seeking a re-trial. He is locked up for a long time, but he has peers who have been just as greedy and crooked, who are walking the streets. Heck, many are still leading the firms that are seemingly so important to our country and our economy. His decision-making hurt a lot of people, but it isn’t fair that others have been treated differently.

The real problem is that our bureaucratic politicians, our two-party system, and our massive government spending need reform. That last statement is vague, broad, and not meant to offer any solutions. I’m simply stating that as an example, government financed projects that result in more asphalt (an oil product) being laid down on roads, isn’t going to strengthen our economy for the long-term. I’m afraid that we are headed in the wrong direction, and I’m not alone. We need leadership and debate at every level of government. It is painful to think that we may be stuck in a position where no real good can occur. With the cyclical nature of the economy and the cyclical nature of politics, we may be in for a long rough ride.

Hartford Cross/Connecticut Riverfront Cyclocross

Several years ago, Horst Engineering was instrumental in bringing the sport of cyclocross to the Connecticut River waterfront, when Team Horst Sports hosted an event at Riverside Park in Hartford. Cyclocross returns to Riverside Park on Sunday October 25th. This time, the event is being promoted by the Central Connecticut Bicycle Alliance and theConnecticut Chapter of the New England Mountain Bike Association. The venue is managed with help from Riverfront Recapture.

Photos courtesy of Amanda Lawrence

Click here for information about the event, including directions. Cyclocross is the most spectator friendly type of bicycle racing. The discipline requires speed, endurance, and excellent bike handling skillls. Riders negotiate a loop course with both natural and man made obstacles, including steep run ups, mud, sand, and barriers. It has been described as steeplechase on a bike. Horst Engineering is proud to support CCBA, CT-NEMBA, and Riverfront Recapture. Crosstube.net is a great resource for seeing what the sport is all about.

Compared to a decade ago, cyclocross is a much different sport, at least in New England. The entry fees have gone up, the expectations are higher, and the number of quality races on the schedule has increased. Team Horst Sports used to promote the Frank n’ Horst Cyclocross in Keene, New Hampshire, but when we struggled to attract enough riders, we called it quits. Bigger races with bigger prize lists, outside of New England, but in adjacent regions, were scheduled on the same day as our race. It made no sense to compete. The glut of races is good for local riders who don’t want to drive, but last weekend, there were four races in New England on Saturday alone. That is too much to support the sport. This weekend, we have the Hartford race on the same day as a big race in Maine. Regardless, cross is a fun sport for spectators and riders alike.

Cross Spikes Won’t Drive the Bottom Line

So, I finally did a cyclocross race again, and cross spikes are now top of mind. I didn’t encounter the expected mud bog  on Saturday because the Mansfield Hollow course was dry and sandy. However, elsewhere in the Northeast, it was a quagmire, especially yesterday. So, what does one do? They call Horst Engineering for a set of precision machined aerospace quality stainless steel toe spikes for their cyclocross/mountain bike shoes.

 

Horst Engineering is a contract manufacturer, otherwise known as a job shop. The business is high tech, but the design of products are handled by our customers. We produce what they design. Plain and simple, well sort of. At Horst Engineering, the manufacturing processes need to be designed, and they are pretty complicated; but the branding and sales of the product to the end users are handled by our customers.

So, back to cross spikes. This is one of the products that we do sell to consumers. They are called Horst Spikes and they are popular in these parts at this time of year. We made our first batch in 2008 and we are still selling from inventory. We don’t sell direct because we aren’t set up to take credit cards and we don’t offer any other cycling products. We sell to distributors, like www.cyclocrossworld.com. They are good at what they do and we are good at what we do, so it is a good partnership.

We aren’t going to build a new factory with the revenues generated from cross spikes. My rough calculations suggest that we would have to sell 645,161 sets (four in a set) at the wholesale price before we ever consider a plant expansion. That has to be decades of sales, though there hasn’t been a significant market study done by the folks at Harvard, Wharton, or Kellogg. I could be proved wrong by the bean (or spike) counters. I’m just going on a hunch here since we restocked our main distributor with 30 sets last week. That should last him a while, unless this post triggers a rush on the global stock of this product.

I got an e-mail from a New York City crosser this morning who was pleased to discover us on the Internet. He was still cleaning the mud out of his ears after a weekend of crossing in hellish conditions. He went on to surmise that “…cross spikes won’t drive the bottom line at Horst Engineering…” but he thanked us and said that it is cool that we are giving back to the sport. Well, that is pretty cool. Another happy customer! Harry Livingston, our founder invented a lot of stuff in his day, but he was better at making stuff (high quality stuff) for high tech customers. We didn’t invent cross spikes, but we aren’t ashamed to say that ours are the best. Who else makes cross spikes with precision roll formed threads? Did you know that the tensile  and fatigue strength of rolled threads is 30% greater than cut or ground threads? You can learn lots of cool business lessons when you design, market, manufacture, and sell your own products. Do yourself a favor, pick up a set of Horst Spikes, whether you cross or not!

Zaslow and Sully…and Hoelzer Too

I always enjoy reading Jeffrey Zaslow’s byline in the Wall Street Journal. His writing is high quality. He once wrote about the “Huntsville Rocketeers” who emigrated from Germany to Huntsville, Alabama. Helmut Hoelzer was one of those rocketeers and he was a friend of my grandfather, Harry Livingston (Horst Liebenstein back then). They traveled in similar circles in Germany during the 1930’s. The rocketeers became the nucleus of NASA’s rocket program. Gramps knew Helmut and many of the other rocket scientists from school and work before he got out of the country in October 1938. I contacted Zaslow about the rocketeer story and he was very kind in his reply.

Zaslow’s byline caught my eye again this week. He wrote about Chesley Sullenberger, the pilot who famously landed his commercial airliner in the Hudson River after its engines failed following a take off bird strike. Sully, has been the toast of the United States media for months now. His heroics have been discussed, dissected, and debated. Zaslow nabbed an awesome responsibility as the co-author of Sully’s book, “Highest Duty: My Search for What Really Matters.” The story of Sully’s journey is fascinating and there are some awesome lessons to learn from this man’s humility. I was engrossed by Zaslow’s story in the WSJ. I’m deeply behind on reading (books), so I’ll need to wait for the abstract. No time to read another one cover to cover. With the rocketeer story and now the Sully story, Zaslow has added to his aerospace credentials.

CBIA Manufacturers Spotlight

Horst Engineering is one of the companies featured in the Connecticut Business & Industry Association Manufacturers Spotlight. Leading Connecticut manufacturers are periodically featured on the CBIA website’s business page. Horst Engineering was featured in early October. The full directory of Connecticut manufacturers who support international trade can be found at this link.

It is good to see that the CBIA is advocating for Horst Engineering and fellow manufacturers at a time when we need as much support as we can get. With all of this economic turmoil (and more bad news from major companies like Boeing today), the challenges that manufacturers face is greater than ever. Higher taxes, higher fees, more mandates, and more health care costs are a recipe for disaster. Government should allow business, especially small business, do what they are best at. Let us innovate and we will create jobs. If government keeps putting barriers and cost in our way, then we will not grow and the economy will stagnate even more.

Silence that Idiot Box

Last weekend, I read an excellent editorial by the Boston Globe’s Jeff Jacoby. The premise of the editorial was that Americans, especially children, watch way too  much television. I think we all know this, but it makes sense for someone to point it out from time to time. Jacoby shares some startling statistics. Americans watch 8.2 hours of TV a day. This is in addition to the time that they spend on the Internet, which has its own issues. Still, the Internet is a very different medium from TV. Sure, I hear my critics and Jacoby’s critics crying foul. They want to highlight how education certain channels are. I hear this argument from people all of the time. Why would you want to watch the nature channel our outdoors channel when you could be outside in nature enjoying the real outdoors?

Why would you watch cycling if you could go cycling? There is a direct correlation between the obesity epidemic and the amount of TV that we watch. Turn it off. Get outside and move your body. It is s simple premise, but there must be something seriously addictive with the boob tube. The health care crisis that we face should address this. TV makes us sedentary and stupid. The advertisements on TV promote the worst possible foods. Americans are sitting in front of this electronic box and poisoning themselves. For the sake of the next generation of children, I urge you to read the Jacoby editorial and share it with others. They need to be reminded to turn the TV off.