'Clean, shine and protect': Recessionary economy may spur sales of some Northern Labs products sold worldwide

By: Charlie Mathews, Herald Times Reporter

MANITOWOC — Race-car fans across America know Jimmie Johnson is the three-time defending NASCAR champion.

But, worldwide, the more famous driver may be Formula One kingpin Louis Hamilton of the United Kingdom.

"We capitalize on our Formula 1 brand name that has instant global recognition," JD Culea, owner, president and chief executive officer of Northern Labs Inc., said of the car care products produced in his 285,000-square-foot manufacturing plant in the city's I-Tec Park.

"Our quality is very high and they sell well," Culea, 60, said. Formula 1 waxes, polishes and rubbing compounds are made in the plant a mile west of Interstate 43, and distributed nationwide to Wal-Mart, Auto Zone and other retailers.

"Making products that clean, shine and protect your world" is Northern Labs' marketing slogan and, Formula 1 items, for example, are shipped to more than 40 countries around the globe.

Northern Labs sales personnel also continue to promote Goddard's, a metal polish, as well as Mr. Metal and Mr.
Leather as part of the company's own line of products designed to improve appearance and prolong life of consumer products.

But, while 25 percent of the Manitowoc company's sales 10 years ago were linked to its own brand names, Culea said contract manufacturing has increased to about 90 percent of the products made and marketed by 325 employees.

By design, Northern Labs' name usually won't be on the packaging, nor will the customer's label include "Made in Manitowoc," said Culea of the nearly 750 products it helps produce, including everything from baby wipes to institutional cleaning agents.

That's OK with the Mequon resident who bought the former Johnson S.C. wax subsidiary in 1986.

Culea said companies are increasingly comfortable with outsourcing production, and choosing to invest in marketing to build sales rather than putting capital into manufacturing plants like his.

The pressure to produce an outstanding product is always present. Culea said the contracts Northern Labs has with its clients describe the relationship the two parties will have, but does not guarantee a certain amount of business.

"We have to earn that business every day we operate this plant … every contract can be terminated tomorrow," Culea said.

'Take better care of their car'

"I believe we have opportunities to expand geographically or increase our market share in countries we already ship to," Culea said.

China has the fastest growing automobile market in the world, he said, and would appear ripe for increased sales for products coming out of Manitowoc.

"For many people overseas, their automobile may be the most expensive item they ever purchase, (as they may) not be able to afford a home," Culea said.

From a lifestyle standpoint, he said that may translate into taking good care of one's car.

The same dynamic may be at work in the U.S. in a recessionary economy.

Culea knows the automotive repair business is up, and consumers increasingly may use car care products to extend the life and looks of their aging automobile.

"As people keep their cars longer, maybe they'll wax more frequently," Culea said.

Kurt Goomey, quality assurance manager, said the task for Northern Labs is to constantly develop products that will work more effectively, cost less and be easier to use.

"Every day is a challenge … formulation challenges, quality improvements to existing processes and new customers coming on board," Goomey said.

"It can be truly conceptional … 'I want a car wax that costs less than the current formula but won't sacrifice any performance,'" Goomey said of product development.

Culea said Northern Labs has access to higher quality raw materials than overseas competitors. He said his company also benefits from staff "chemists that develop products from scratch or make the products we manufacture better."

Looking out a Northern Labs conference room window to the employee parking lot, Goomey said the company has a built-in group of prospective consumers who will do tests of trial formulations.

"We get down and dirty and make sure (new products) work," Goomey said.

More efficiency, productivity

Sandy Oswald, supply chain manager, has the responsibility to make sure Northern Labs is getting the highest-quality raw materials — solvents and other chemicals — at the best price.

She said Northern Labs often is a vendor's biggest customer and that gives her some clout.

Its vendors only ship to one location, following Northern Labs closing a few months ago its original plant on Custer Street.

Culea said consolidation has increased efficiency and productivity.

"We work hard at having a leaner environment," he said of cost-cutting measures.

While the number of employees has stayed about the same for several years, productivity has dramatically increased Culea said.

"The most enjoyable part of the business is to see it grow over time, by adding new customers and adding new business," said Culea, who has one minority share partner.

To lure continuing contract customers, Culea said, "We attempt to establish a competitive advantage in all three areas — customer service, quality and cost."

He enjoys having final control over strategic direction of Northern Labs. "The buck stops here" is a sign that would be appropriate on his desk.

"Management is involved in all the key decisions, and we are not limited financially or in terms of our growth capabilities," Culea said.

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