Business Spotlight

by Kris Ann Hegle

SBJ Contributing Writer

Gary Goetz, general manager, calls it "new streaming."

New streaming taking ownership

of a product, packaging, storing and shipping it to create a new stream in the product-flow cycle is the concept for the work being done at NewStream Enterprises.

NewStream was founded in October 1990 as a joint venture of Springfield ReManufacturing Corporation and Navistar International. According to Goetz, founding NewStream seemed like a natural way for Springfield ReMan-ufacturing to expand.

Springfield ReManufacturing already had the inventory needed to reman-ufacture Navistar's engines. NewStream could work from that same inventory to package, store and ship kits that contained the parts needed to rebuild Navistar's engines.

"If you have a major problem with your engine, you can do one of three things," Goetz said. "You can buy a new engine, which is pretty expensive. Your second option is to remanufacture the existing engine, which involves stripping the whole thing down and remaking it. That's cheaper than buying a whole new engine. The third option, which costs even less, is to rebuild the part of the engine that's broken. That's what we do. We custom-package all the components needed to rebuild engines."

Currently, NewStream packages 350 different kits for Navistar. Each kit contains all the parts and instructions needed to fix different types of problems, according to Goetz.

Approximately 95 percent of New-Stream's business comes from Navistar.

NewStream also counts Springfield Aluminum Co., Stone Container Corp. and other southern Missouri companies among its customers,

according to Goetz.

"Our biggest challenge is to diversify our customer base so we can grow our business," Goetz said. "We've established a reputation where we can show how we've served Navistar. Now, we just have to show how we can do this for other businesses."

To get its name out, NewStream distributes an advertising brochure that details the company's services. NewStream also joined the Institute of Packaging Professionals, which helped the company gain exposure, and it adheres to an international standard for quality packaging, according to Goetz.

"Adhering to that international standard means a lot in the packaging industry," Goetz said. "That's what brings in business from the big boys."

But what really counts is showing customers how they can save money.

According to Goetz, labor and warehouse space cost less in Springfield when compared to most other cities. Consequently, NewStream is targeting companies that no longer find it cost-effective to package, store and ship their own products.

"We can take ownership of the product at anytime during the process," Goetz said. "For instance, maybe a company wants to package their product, but it isn't cost-effective for them to store or distribute it. At that point, we can take possession. When we take possession, it helps a company save on overhead and insurance, and they get paid earlier than they would have if they had handled everything in-house."

Because the work at New-Stream is labor-

intensive, the company tries to keep its workers happy and informed, according to Goetz. Both full-time and part-time employees work on a flex-hour basis.

NewStream also practices open-book management. Each week, the company's 40 employees meet to discuss ways to improve the business. As a result, everyone knows the bottom line, according to Goetz.

"Our philosophy is toward growth, but we want to fund our own expansion," Goetz said. "To do that, we need to grow 15 percent a year. We can't do that without the help of our employees."

To that end, NewStream seems to be well on its way. In 1990, the company grossed $6 million and projected revenues for 1998 are $21 million, according to Goetz.

NEW STREAM ENTERPRISES:

Management philosophy:

Open book

Year founded: 1990

Address and phone number: 3055 E. Division, Springfield, Mo. 65802, 831-3112 or 800-533-3112

Web site: www.newstreaming.com

Owners: NewStream Enterprises is a joint venture of Springfield ReManufacturing and Navistar International.

PHOTO CAPTION:

General Manager Gary Goetz said NewStream is creating a new stream in the product-flow cycle. [[In-content Ad]]