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Bruce Krueger, general manager
Bruce Krueger, general manager

2016 Economic Impact Awards 6-15 Years in Operation Winner: CNH Reman LLC

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CNH Reman LLC may be a relatively new company, but Vice President and General Manager Bruce Krueger says it’s built to last.

Since launching in 2009 as a joint venture of Case New Holland and SRC Holdings Inc., the company has grown from four employees and $2.6 million in revenue to global sales on six continents.

“We continue to launch new products every year,” says Krueger, a member of the company’s board of directors since 2009 who joined the staff May 1. “Dealers and brands basically have a choice between new and remanufactured parts, so the more coverage we can get of remanufactured parts, the better robustness and sustainability of our business going forward.”

Building remanufactured parts for Case New Holland equipment in two divisions focused on different industries – agriculture and construction – historically has been good for business.

Yet, while CNH Reman has experienced a general trend of revenue growth since its inception, 2015 represented a step down.

Declining to disclose 2014 revenues, Krueger said 2015’s decreased sales of $129 million was due to softening of the agriculture and construction markets. Still, he sees 2016 and beyond as opportunities for the company to pursue growth through increased sales.

“In a time when the market has softened, farmers are looking for the best cost alternatives for doing repairs on their machinery in the field,” Krueger says, adding the construction industry faces a similar challenge. “We still have to offer the best value and competitive warranty in the market as far as repairing their machines.”

Helping that process along has been reinvestment in CNH Reman’s northwest Springfield plant. Through 2015, the company has spent roughly $16 million to phase in full-scale production lines, a distribution facility, stocking depot and core returns center. Over the six-year timeframe, products offered increased to 3,500 from 800 and local employees have grown to 231.

“The more parts we launch, the more we see sales growth,” Krueger says, noting the company performs feasibility studies to determine the investment required for physical expansion and additional manpower to bring in a new product line. “Part of the feasibility review is seeing where our best fit is for what our strengths are.”

Since its founding, CNH Reman has spent $500,000 on employee education and reimbursement, with $221,000 of that spent in 2015 on technical training for fields such as welding and salvage operations at local institutions like Ozarks Technical Community College. Krueger says that’s the nature of CNH Reman partner SRC.

A focus on people extends from those who work in the company’s manufacturing plant to people who live in the Springfield area.

Last year, CNH Reman’s employees logged 800 hours of community service and formed a community relations committee to facilitate the company’s charitable giving, fundraising and volunteer efforts.

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