Mainebiz

July 9, 2018

Issue link: https://nebusinessmedia.uberflip.com/i/1000820

Contents of this Issue

Navigation

Page 13 of 27

V O L . X X I V N O. X I V J U LY 9 , 2 0 1 8 14 I f you sit on any high school bleacher in the country, whether it's in Maine, California or Texas, there's a 50/50 chance it was made by one of the nation's largest seating manufacturers, which hap- pens to be located in North Berwick. Hussey Seating Co. manufactures seating systems for applications rang- ing from school gymnasiums to college and professional sport stadiums to arenas, convention centers and perform- ing arts auditoriums. Its largest project comprised 120,000 seats for fi xed sys- tems at Arrowhead Stadium, home of the Kansas City Chiefs, and, next door, Kauff man Stadium, home of the Kansas City Royals. Hussey's largest telescopic platform, with 10,000 seats, was built for the Hong Kong Convention and Exhibition Centre. Among the many jobs now underway or in the backlog is a 10,000-seat fi xed system for a Dubai indoor arena. Hussey has continual year-over-year growth since the recession and in 2017 reached a new record, with more than $100 million in revenue. Of that revenue, 98% was generated outside the state of Maine. Growth is expected to con- tinue in a high-demand market where Hussey's share is also increasing. at's despite new shocks to the company's bottom line, with steep metal tariff s and increasing transporta- tion costs adding up to a spike in steel costs this year that cannot be passed along to existing contracts. "We have all these jobs on backlog," says Gary Merrill, the fi rst non-family CEO in Hussey's six generations. "We sold these jobs thinking steel was at 'X' price. And then we wake up and see we're paying 25% more for steel than we were last fall." More than just bleachers Bleachers are commonplace things taken for granted. But someone invented them, and considerable engineering and artistry go into their evolution. " ere's more to it than just bleach- ers," Merrill laughs. Hussey, he says, is one of the top two or three producers in the world of spectator seating, based on quantity in specifi c markets — K-12, college-uni- versity and major league sports. Products include fi xed polymer and upholstered chairs, telescopic platforms, telescopic gym seating (gym bleachers) and portable folding chairs. Every job is customized, taking into account an arena or stadium's sight lines. Other details can include cup-holders, space conversion systems and wireless remote controls. Seating must also comply with safety and ADA codes, including a 1% seating mandate for people with disabilities. "We developed a fl ex row, which is the fi rst row," Merrill says. " e main- tenance person can retract a space so a wheelchair can come in. e idea is to have companion seating, so the person is not sitting by themselves. We were the fi rst to develop an application that's recoverable. If you don't need that space, you can pull the fl ex row back out." For some customers, all those up-to- date details can generate increased rev- enues. Hussey's own interviews, posted on its website, feature venue directors who speak to increased price capacity, bigger audiences and improved space conversion for increasing the number of events they can host. "It increased our ability to change the building over so we can host back-to-back events now," Tennessee's Bridgestone Arena Director of Operations Tim Friedenberger says of Hussey's renovation of that 17,000- seat system. Taking a hit In recent months, the business of manufacturing seats has gotten more complicated. Hussey uses galvanized steel, coil and extruded aluminum to make its seating systems' telescopic understruc- ture. Beginning June 1, the Trump administration imposed a 25% tariff on imports of steel and a 10% tariff on aluminum, from the European Union, Canada and Mexico. Merrill has said the commodities market started reacting to the expected tariff s months ago. About half of the current year's revenues are already sold under contract. at aff ects Hussey's ability to reinvest in the business and maintain employment levels, he says. Hussey's chief supplier of steel, American Steel & Aluminum in South Portland, gets its supplies from Montreal and Hamilton, Ontario, home to the mills closest to Maine, says the steel company's president, Sam Blatchford. P H O T O / T I M G R E E N WAY F O C U S We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these We have all these jobs on backlog. We sold these jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we jobs thinking steel was at 'X' price. And then we wake up and see we're paying 25% more for steel than we were last fall. — Gary Merrill CEO, Hussey Seating Co. Gary Merrill, CEO of Hussey Seating Co., oversees a company with sales of $100 million and a payroll of $15 million. G L O B A L S E A T I N G M A N U F A C T U R E R W R E S T L E S W I T H G L O B A L C H A N G E S

Articles in this issue

Archives of this issue

view archives of Mainebiz - July 9, 2018