PEOPLE, PRODUCT, AND PROFIT
2 | North America Outlook Issue 20
COMMERCIAL VEHICLE GROUP INC. MANUFACTURING
FOSTERING A C U LT U R E O F B E LO N G I N G Commercial Vehicle Group Inc. has a passion for its people. Rich Tajer, President of Global Electrical Systems, tells us how employees are the driving force behind the company’s relentless growth Writer: Lucy Pilgrim Project Manager: David Knott
F
ounded in 2000, Commercial Vehicle Group Inc. (CVG) is a global supplier and manufacturer of electric vehicle (EV) assemblies, electrical wire harnesses, seating systems, mechanical assemblies, structures, plastic products, industrial automation, and robotic assemblies, as well as the transportation, warehousing, construction equipment, industrial, e-commerce, and recreational vehicle markets. Additionally, the company has bold aspirations to aggressively grow organically and inorganically over the next five years, and it is well on its way. As President of CVG’s Global Electrical Systems business unit, Rich
Tajer spearheads this drive towards greater success, as the company has grown from its original mission of being a CAB system integrator for heavy goods vehicles (HGVs) to focus on being a system solution provider by placing good people in notable positions and creating forward momentum. Assessing, meeting, and then exceeding customer needs is key to growth, and the team at CVG is bringing this all together. “Customer needs change over time, and we have evolved by servicing and providing solutions for a range of markets in our industry. As a result, we sell different products and services through each of our business units,” opens Tajer. North America Outlook Issue 20 | 3
COMMERCIAL VEHICLE GROUP INC. MANUFACTURING
From servicing the HGV cab market, the company has expanded the entire system to create four business units that each have an individual focus. The different capabilities comprise industrial automation, vehicle solutions, aftermarket and accessories, and electrical systems.
Regarding electrical systems, this was previously positioned as an ancillary subset of CVG; however, with a talented team under Tajer’s leadership, it has become a key part of the company’s operations and growth. This is reflected in the development of the electrical wire
CVG’S SUPPLY CHAIN OPERATIONS – AT A GLANCE CVG enjoys the advantages of a centralized procurement team, which is currently under new leadership, to ensure that the company is efficiently leveraging products. This includes various localization activities and a re-examination of supply chain partners, which Tajer is passionate about. “We are meeting with suppliers for the Electrical Systems Division and asking them to be more than suppliers; we are looking for partners. We want suppliers to bring added value to our solutions. We share with them where CVG is going and what we need from them. “I think it’s important to be upfront to avoid any misunderstandings further down the line, which drives speed and execution across our entire supply chain,” Tajer affirms.
4 | North America Outlook Issue 20
harnesses distribution box on an EV truck frame, which is currently being developed at CVG’s new tech innovation center in Phoenix, Arizona, with additional centers in the pipeline. With the expansion of its capabilities, CVG has strengthened its global reach with operations across the Asia Pacific region in Shanghai, Australia, Thailand, and India. The company’s influence in Europe, meanwhile, is further bolstered by operations in the Czech Republic, Ukraine, the UK, as well as Morocco in Africa.
THE POWER BEHIND THE PROJECTS When speaking to Tajer, it is immediately clear that recruiting and retaining the best talents who possess a positive entrepreneurial attitude is at the core of CVG’s success. Indeed, the power of each individual team member is recognized immediately, starting with the hiring process. “I interview people differently than
most. I place the candidate’s CV aside as I want to see who they are, what their character is like, and ensure they align with our values,” Tajer reflects. “I also want them to interview me, like a bilateral interview; it’s a more relaxed and genuine atmosphere.” The correct hiring process is crucial to maintaining CVG’s reputation for fast and reliable services, as it is heralded as not only a parts supplier, but a solutions provider. “In the EV systems space, many companies only do build-to-print projects. At CVG, we actually help a customer solve their problems and take their ideas to production exceptionally quickly,” Tajer explains. This expertise is reflected in the organization’s plans to expand its global footprint across Mexico and Africa, with the recent construction of a manufacturing plant in Tangier, Morocco, further reinforcing the company’s transition into global electrification.
What are some ongoing or recent projects you are most interested in showcasing? A major industrial manufacturer in Ohio has added the company to its vendors due to our on-time delivery and quick turnaround. The partnership includes helping engineers select specific conduits and fittings from their high-quality designs. This helped to save costs for that company.
A Global Supplier of Harnessflex Conduit Systems Briefly introduce me to AES USA AES Group was established in 1992 in Wakefield, West Yorkshire, UK. Initially, the business traded as AES UK, which still operates today. AES USA was established in 2016 after it became apparent that there was a need for a full-line stockist distributor to support this expanding market in the US. AES USA now supports hundreds of customers across the Americas, who are located in Canada, Mexico, Brazil, Paraguay, and the US. AES Group continues to expand its presence globally with our new facility in Pune, India, set to open before the end of this year. AES Group stocks and supplies protection for critical electrical and electronic wiring systems, predominantly in the off-highway heavy industry markets, which include construction and mining, agriculture, truck and bus, and engines and transmissions. Our products are used widely within key major global OEMs such as Caterpillar, John Deere, and Cummins Engines. Our products are sold directly to the harness makers, such as CVG, who produce the electrical wiring harness fitted to the OEM vehicle or engine. The team at AES USA comprises eight dedicated employees whose goal is to provide our customers with outstanding service and support, supplying our valued customers with a “just in time” service to enable and help their operations to run as smoothly as possible. Our uniqueness comes from the fact that we stock significant amounts of products across the full width of the product range, which is unapparelled compared to our competitors. AES USA also has access to more than 50 other brands from our key supplier, ABB, which complements our already premium service that we strive to offer.
Our technical aptitude has helped to reduce fitting costs with a creative method using conduit clips. This has helped the wiring harness company save tooling fees from an NRE and reduce Manifold and T fitting costs from $4 to $1 or less. Our 30 years of technical design experience helps wiring harness teams win more projects. The agricultural manufacturer has achieved a higher quality than what would be open to environmental challenges by only taping the wire harness. We are helping to design conduits for rail cars and oil and gas refineries using a fire-retardant conduit. Our Polyamide 6 and 12 from Harnessflex is selfextinguishing and produces no halogens. Aircraft, rail, and refineries with their wiring harness demands are projects in which we are also involved. One project we are involved in helps to ensure watertight IP69 to IP66 integrity using our solid conduit and manifolds with inspection covers. Another route may only need SLIT conduit and standard IP40 fittings. We help with installation training and selecting the correct conduit for a specific portion of the wire routing. These projects use Amphenol Power Lock Gen 2, FCI, Deutsch, and Shrouds. For each route, we help engineers select the best solution, and we carry this in stock based on their forecast given to us. An agricultural company in Iowa is considering Wire TyRap and terminals, and heavy truck lights with cameras. While helping engineers and buyers, we introduce our Sta-Kom wire terminals and Ty-Rap from low-cost Catamount to higher quality Ty-Rap while using our Harnessflex conduit.
What, for you, differentiates your business from the competition?
What does the next 12 months look like for the company?
· Significant stock holding enables us to break packs down to offer our customers low and varied MOQs
We are always looking to the future at AES USA, whether in how we support and service our customers, what new practices we can bring into the business, or by maintaining a high level of loyal and dedicated staff. With this in mind, the next 12 months look good, with strong customer demand and new business gains being worked on and finalized. We very much expect to see a strong and successful 2024.
· More than 50 years of combined knowledge and experience · Approved supplier to major global harness makers · Global pricing · Ability to support technical inquiries, product data sheets, product drawings, PPAP, and IMDS support · Intuitive and well-maintained website with inquiry and chat functions · Excellent service and reaction times to customers’ needs
What are some of the biggest challenges that the company is currently facing, and how are you overcoming these? Recently, our main supplier changed systems, which has caused us some significant challenges over the past few months; however, with our experience and ability to transfer stock between locations, we have limited our exposure and our customers’ exposure to stock issues. Global pricing challenges throughout the purchasing chain, if unchecked, can reduce margins and negatively impact our customers. At AES USA, we are always looking at how we can best mitigate these challenges to avoid, where possible, having to pass these costs onto our customers. So far, we have been 100 percent successful in this area over the last few years as we continue to pull away from the COVID-19 pandemic.
Dave Hurd, Business Development Manager: ‘‘Before joining this team, I worked as an application engineer for Thomas and Betts ABB. With 30 years of experience in Electric Power, including Low and HV, EV, inventors, Motors, and Wiring batteries, I am excited to contribute my expertise in defining product applications and installation processes.’’ Dave.hurd@aes-usa.com
COMMERCIAL VEHICLE GROUP INC. MANUFACTURING
NORTH AMERICA OUTLOOK: COULD YOU TELL US ABOUT CVG’S SUSTAINABLE PRACTICES? The plant will encompass approximately 30,000 square feet (sqft) of manufacturing space and produce electrical wire harnesses for the global automotive sector, as well as many other industries such as agriculture, construction, and more. The Tangier manufacturing plant will also have many advantageous effects on the local economy, creating job opportunities and simultaneously growing CVG’s talent pool. Tajer wants to ensure that the company has the right people to execute the project. “The hiring process in Morocco centers around taking the new plant to the next level and executing future 8 | North America Outlook Issue 20
Richard Tajer, President of Global Electrical Systems: “We’ve made significant progress in our commitment to sustainability, with the launch last year of our first environmental, social, and governance (ESG) report, which highlights the company’s commitment to sustainable business practices. “The ESG report also includes our D&I initiatives. We believe there is strength in building a diverse and inclusive culture that celebrates and recognizes the value that comes from different cultures, backgrounds, and perspectives. As a global company, we want all our people to know they are a part of the CVG team.”
growth, rather than simply running it.” Similarly, the expansion of CVG’s manufacturing capabilities in Mexico also nurtures the cultivation of talent in the industry space. With the recent opening of the new plant in Aldama,
CVG is creating a dynamic and forward-thinking team to manage a 90,000 sqft manufacturing facility. Opening in July of this year, the Aldama plant demonstrates the acceleration of the EV market in
Harness the power of your project’s potential with 3M. Quality solutions to help you solve tough design and environmental challenges, backed by a team of experts.
Find the right solution for your project at: www.3m.com/oem
COMMERCIAL VEHICLE GROUP INC. MANUFACTURING
Mexico, as CVG is one of the first manufacturers capable of delivering complete electrical systems. The plant was also launched to support production for secured business, with potential for future capacity growth.
HARNESSING DEVELOPMENT OPPORTUNITIES CVG looks forward to engaging in innovative technology as the industry progresses. Namely, it is working with several autonomous vehicle manufacturers, and by developing their systems, is becoming an integral cog in driving the industry forward. “We continually invest in the 10 | North America Outlook Issue 20
“ I I N T E R V I E W P E O P L E D I F F E R E N T LY T H A N M O S T. I P L A C E T H E C A N D I D AT E ’ S C V A S I D E A S I WA N T T O S E E W H O T H E Y A R E , W H AT T H E I R C H A R AC T E R I S L I K E , A N D E N S U R E T H E Y A L I G N W I T H O U R VA L U E S , ” – R I C H TA J E R , P R E S I D E N T O F G L O B A L E L E C T R I C A L S Y S T E M S , COMMERCIAL VEHICLE GROUP INC.
importance of the three Ps: people, products, profit; we’re bringing in really good people, and we’re working on interesting, exciting products, all while delivering profit that allows us to reinvest in our employees and
capabilities,” Tajer states. This strategy gives CVG the ability to expand, be part of a positive change in the vehicle manufacturing industry, and ensure that the company hires the best people possible. To
retain staff, CVG recognizes and values every member of the team. From the front end of the business, the organization’s sales team is rewarded for achieving certain objectives and goals, with bonuses assigned via a recognition program. The manufacturing team also receives added benefits, which demonstrate the company’s appreciation of each employee’s contributions. Tajer believes that every team member should be equally valued. “The way we develop business isn’t exclusively due to a sales or manufacturing person; they may be
the tip of the spear, but we must also recognize the whole organization and ensure everybody wins when the company wins,” he emphasizes. Tajer also recently launched a personal development plan, which he hopes will eventually be implemented across the entire organization to help employees achieve their longterm goals. “We are investing in our employees by helping them on their career path, which results in greater staff engagement within the organization.” This aligns with CVG’s future plans as the company seeks to hire more staff members and grow its global
footprint of manufacturing plants. “The next biggest challenge we have is people. It’s about onboarding the right people who are aligned with where we’re going. I’m excited about what we’re doing,” Tajer concludes.
COMMERCIAL VEHICLE GROUP INC. Tel: 614-289-5360 Patrick.Woolford@cvgrp.com www.cvgrp.com North America Outlook Issue 20 | 11
COMMERCIAL VEHICLE GROUP INC. Tel: 614-289-5360 Patrick.Woolford@cvgrp.com www.cvgrp.com
PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE