NEWS
press release
LAI combines risk analysis
with customer input
Company featured in
'Compass on Business' article
An excerpt from an article written by Morey Stettner entitled Demystifying Risk Analysis, published in the spring 2008 edition of Compass on Business, by Compass Bank explains:
In some cases, risk analysis and customer input work together. When a major customer shared a problem with Stewart Cramer, president of Phoenix-based LAI International, he thought that he could develop an innovative technology to solve it. But that would require a significant, multi-year investment.
“At the time [2001], we were a small company and addressing this problem for our customer would require a huge commitment,” Cramer recalls. But he listened to his gut--and considered the potential size of the market for this technology--and plunged in.
Within a year, Cramer had marshaled 80 percent of his engineering resources on a project that was largely speculative. The customer signed a contract for a small sum, but LAI's development costs vastly exceeded that amount.
“It wasn't obvious in the first few years that this would pay off,” he says. “I bet the farm on it. And I met some internal resistance from my CEO and others who couldn't understand why I was locked in on this.”
By mid-2005, LAI achieved a robust production capability for its developing technology and the initial customer was pleased with the results. Along with strengthening the relationship with that influential customer, LAI now seeks a broader application of this inventive new tool.
Looking back, Cramer says a key factor that shaped his risk analysis was a realization that LAI couldn't overextend itself. He knew that “we couldn't bet big everywhere but we could pick one thing where we could be the best and play large with that one thing.”
See www.cob.compassbank.com for the complete Demystifying Risk Analysis article published in Compass on Business.
About LAI International
LAI is an approved supplier for large potential growth manufacturing programs, including projects in green power plant technology, aircraft parts and sub-assemblies, and defense components. Revenues are forecast to reach $58 million in 2008, with an employment base projected at 350 by the end of the year.
LAI continues to execute its strategy of expanding its capabilities by taking on more of its customers' supply chain. LAI's acquisition in 2007 of RTI, Scarborough, Maine, expands its capabilities in manufacturing power generation and rotating equipment. In addition, LAI operates four other manufacturing facilities, dispersed in key manufacturing regions across North America, with locations in Minneapolis, Phoenix, Tucson and Westminster, Md.
LAI is known for its experience in supply chain management of complex manufacturing processes and its technical expertise in advanced waterjet cutting, drilling and five-axis machining, as well as precision laser processing, including laser cutting, drilling, welding, heat-treating and five-axis machining. The company also offers high-speed CNC machining, electrical discharge machining, including wire, plunge and hole-drilling EDM processing, five-axis grinding, welding, conventional machining and certified gage calibration. Additional capabilities include sheet metal fabrication, tool design and air-flow inspection.
LAI was acquired in 2005 by Spell Capital Partners, LLC, Minneapolis, Minn. Its corporate headquarters are located in Scottsdale, Ariz.
For more information, see LAIco.com.
Quick Facts: LAI International, Inc.
Founded: 1979
Mfg. facilities: Phoenix, Tucson, Minneapolis, Westminster, Md., and Scarborough, Maine
Headquarters: Scottsdale, Ariz.
