AarKel Tool and Die excels by sticking to diversification plan

AarKel Tool and Die has been in Wallaceburg for more than 45 years, but the company has really taken off over the last decade.

When Larry Delaey became AarKel president in 2014, he said that was followed by unveiling to employees a 10-year plan to diversity.

“We had a vision and a plan to be in the top 10 in North America and within four years went from $30 million (in sales) to going over $70 million, which brought us into the top 10,” he said.

Today, Delaey said AarKel is at $90 million in annual business, which puts it into the top five tool and die shops in North America.

AarKel will be honored as the Business of the Year for a large operation by the Chatham-Kent Chamber of Commerce during its 135th annual Business of Excellence Awards being held April 13. Delaey will also be honored as Business Individual of the Year.

He said diversification has been achieved by listening to what their customers wanted from the company.

Delaey cites a request by General Motors to have in-house sampling for large diecast dies as an example. AarKel is one of only three shops in North America he knows of that can provide that service, he added.

AarKel also ventured into three-dimensional printing, which has practically become a whole business on its own, Delaey said.

He said the company is one of the few operations in North America that does 3-D printing of steel to provide custom engineered solutions for customers.

“When there’s a problem, basically they come to us for solutions,” he added.

AarKel also goes the extra mile by having its employees go to a customer’s operation when a new product is delivered.

“From the start of the product to the launch of the product, we provide support from start to finish,” Delaey said.

The company is also into compression tooling and production machining making a wide range of products.

“There were a lot of people that thought we were reaching too far, but we achieved our goals,” Delaey said.

Delaey added he personally learned “you need everybody working together to really make a fine-tuned Swiss watch and that’s what we have here.”

He believes diversification has also helped with employee retention.

“It’s something new every day for them,” Delaey said. “It’s not repetitive manufacturing, this is custom engineering.”

He said the goal is to create a culture of enjoying work and knowing that if a mistake happens it can be worked through, learned from and then move on.

Delaey said the $65 million of the $90 million worth of work is done by the more than 200 employees at the Wallaceburg operation.

“We’re proud of that.”

When he travels for work, Delaey said he likes to brag AarKel is headquartered in Wallaceburg in the Municipality of Chatham-Kent.

Many people are surprised to hear that, so he also tells them: “You know what? That’s where some of the best skill and talent comes from.”

Delaey still gets choked up thinking about receiving the call from the chamber that not only was AarKel being recognized, but him as well.

He said it caused him to think about what’s been accomplished by everyone at AarKel over the last 10 years.

“When I got that call, it was pretty good,” Delaey said. “To be honoured, I was pretty humbled.”