A refreshed product line, branding and a major plant expansion support Caframo’s bid to grow global market share in the electric fan and heater segment.
By Craig Ritchie
There have always been two schools of thought when it comes to writing a business strategy. One can choose to generalize, and follow a “something for everyone” approach, or one can specialize and focus on serving a specific market better than anyone else.
For Wiarton, Ontario-based Caframo, a singular focus on building the highest quality products forms the foundation of its strategy to grow its market share as a producer of premium electrical fans for the RV and boating industries. To that end, the company is investing heavily in new products, new branding, and a significant facility expansion that will ultimately double the size of its manufacturing, warehousing and product testing space.
Caframo, which also manufactures fans and heaters for residential applications along with precision stirring equipment for laboratory use, believes the recreational vehicle industry represents a significant opportunity for growth. “Consumer products presently generate around 80 percent of Caframo’s overall revenues,” says marketing manager Greg Crisp. “The RV industry is a significant opportunity for us on the strength of our existing product line and new products currently in development, I expect it could become an increasingly important aspect of our overall business.”
Crisp’s enthusiasm for the RV business is understandable. Caframo, which celebrated its 60th anniversary last year, has been riding a wave over the past couple of years on the strength of its innovative compact fans, which it sells as an aftermarket supplier and as an OEM. In anticipation of a planned expansion to the company’s manufacturing facility scheduled to begin next year, it’s already begun ramping up in its quest to own the global fan market.
A Solid Foundation
Located on the shores of the Great Lakes about two hours northwest of Toronto, Caframo began operations in September 1955 after Hans Heidolph, son Hans Jr. and son-in-law Dr. Rudolph Zinsser emigrated to Canada from Germany with plans to relaunch their successful motor winding business. Their requirement of a sturdy production space led to the purchase of a former cement plant – complete with three massive, bunker-like concrete buildings – which provided a figurative and literal solid foundation upon which to grow. After refurbishing the three existing buildings, the fledgling company was launched as Canadian Fractional Motors, soon abbreviated to Caframo. “A fractional motor is a small motor with a power output that is measured as a fraction of one horsepower, such as 1/10 horsepower,” explains Caframo’s owner and president, Tony Solecki. “They’re widely used in small appliances like fans, as well as precision products like laboratory stirrers.”
Solecki, who joined the company as general manager in 1994 and purchased it from the Heidolph family two years later, says Caframo is well established as a trusted manufacturer of precision lab equipment. But like Crisp, he feels that a significant growth opportunity exists in the RV and recreational boating markets. “For Caframo, building fans is a core competency. It’s what we do. We don’t sell three or four fans among a catalogue of 1,000 other items. This is our primary focus. Because we specialize, we’re able to allocate our full resources into product development and testing in a way that no one else can. It allows us to make continual refinements and offer the highest quality product, so our dealers and distributors can focus on selling and they don’t have to worry about returns or warranty repairs. They can sell it and forget it.”
Building For The Future
The phased expansion plans for Caframo’s Wiarton plant include significant additions to the existing production facility, office spaces, product testing and R&D facilities, and its on-site warehouse. With the requisite zoning and environmental approvals now in place, construction is scheduled to begin in 2017.
The planned expansion at Caframo represents tangible evidence of the company’s commitment to maintaining a leadership position in the global fan market. As a Canadian manufacturer employing a skilled workforce, Caframo isn’t building market share by competing on price, says brand manager Dhwanil Shah. “We follow relevant technological developments very, very closely,” explains Shah. “Advancements like 3D printing for example, allow us to take components that were made a certain way two years ago and build them far more efficiently now. This results in fewer parts, and each of those parts can be made from better materials to provide even greater durability. This approach also allows us to reduce production times, so we can be more agile and responsive to market needs, while simultaneously cutting material waste, lowering our environmental impact and reducing production costs.”
At the core of the company’s engineering heart is a willingness to be responsive to consumer feedback. “We listen to end-user input, and forward all of it directly to the engineering team,” says assistant brand manager, Mandy Ogilvie. “For example, we knew our original Sirocco fan with its 360 degree airflow was a winner when we developed it. But that doesn’t stop us from trying to see how we can make something better, or listening to end users and digesting their input. We have implemented some changes to the Sirocco II fan that resulted directly from helpful customer feedback, such as moving the position of the power and speed switches to the side of the housing, making it easier to access.”
Caframo supports its claim to innovation leadership with an advanced engineering test lab, which allows the company to evaluate and observe products in real-life scenarios and harsh environment conditions. Testing facilities include a wind tunnel, thermocouples, and the aforementioned environmental chamber. But before any new prototype makes it this far, it will have already had to survive a range of computer-simulated scenarios to test design limits. Finite Element Analysis (FEA) software allows an engineer to create three-dimensional models and analyze the design for stress, strain, and loads based on the known properties of different materials. The same software can also test the physical limitations of parts and assembly through various simulated tests, as well as simulate interactions between the product and its environment to demonstrate fluid dynamics or airflow. Solecki says the FEA software “enhances the product design experience” through cost savings and the ability to explore and evaluate even more design ideas. “The end result is, we don’t see a lot of warranty returns,” he quips. “There really aren’t any.”
The advancements in design, testing and prototyping have allowed Caframo to begin unveiling new products at an accelerated pace, with new models slated for introduction in the first quarter of 2017. “New product drives the whole industry,” says Crisp. “Everyone knows that. But developments are now coming at an unprecedented pace, from new materials to new production technologies. These changes let us bring customer inspired product improvements to market more rapidly than ever before, so we can better meet our consumers’ needs.”
Telling The Story
There’s an old marketing adage that says you can throw the greatest party in the world, but no one will come until you tell them about it.
That’s always been a belief Caframo has held near and dear, and particularly in respect to its core aftermarket business. In the spirit of continual improvement, it isn’t just the product portfolio that’s subjected to regular tweaks and updates. With significant new launches on the horizon, the product packaging is also about to get a major makeover.
“The packaging is designed to provide a consumer with all of the key information they need at the point of purchase,” says Dhwanil Shah. “Some retailers do a better job of conveying the features and benefits to the end user than others do, so we feel that providing key information on a fresh, attractive packaging design is critical. We’re also seeing it as an opportunity to reinforce our company values, and build on our brand equity.”
Part of the package redesign effort lies in a desire to have the packaging better reflect the values of the product while respecting the continuity of broader, company-wide messaging. But another part lies in Caframo’s belief that the company isn’t just competing with other fan manufacturers for a consumer’s attention. “We feel that we’re competing with every other SKU in the store,” says Crisp. “We recognize that a consumer will spend X-amount of money each year on their RV. I want them to buy one of our fans, rather than that new stereo system, or new blinds for the windows. So our job is to ensure that consumers are fully aware of our product features and benefits so they can make an informed purchase decision.”
With new products and new packaging ready to ship and its facility expansion moving ahead on schedule, Caframo is clearly serious about its intention to dominate the fan and heater category. With a growing suite of OEM partners and a commitment to continue building its aftermarket business, it may very well do just that
