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Winalta Inc., Home improvements

Manufacturing in Action, Source : The Manufacturer US
Published : June 2007

Winalta Inc. owns and develops the land that its pre-fabricated homes are delivered to, discovers Gary Toushek

Winalta Inc. was established in 1976 by James Sapara and his wife, Alice, to design and produce pre-fabricated homes in Canada just west of Edmonton (Enoch, AB). A fire seven years ago destroyed the business, so a 102,000-square-foot plant was re-built in nearby Spruce Grove in the Acheson Industrial Park. In 2006 the company was purchased for $17 million by Calgary-based Kos Corp. Investments Ltd.

Owner Artie Kos (who previously owned an oilfield transportation company that he sold to an income fund) also owns Winalta Industrial Manufacturing, Inc. (formerly known as Vanguard Inc.), which used to produce travel trailers and recreational motor homes. Winalta Industrial Manufacturing, located in North Battleford, SK, now designs and manufacturers industrial oilfield trailers and well site camp accommodations. Kos is also a real estate developer, with Alberta properties in Edmonton (Carlton Homes, mid to high end), Drayton Valley, Bruderheim, Boyle, Stony Plain, Sylvan Lake, Linden, and Fort McMurray, and plans to expand to other western provinces—and he’s combined the homes and the land to create turnkey pre-fab home subdivisions including landscaping, fencing, etc., meeting the demands of the busy home buyer. So far business is increasing so rapidly that Winalta is struggling to keep up with customer demand.

It’s an interesting business model. Typically a pre-fab home manufacturer would sell its products at wholesale prices to dealers, but Kos has decided to hire salespeople to handle the various sites and retain only a few key dealers who are joint venture partners. Customers choose their model from a catalog or by looking at homes already in a subdivision. Prices range from $100,000 to over $300,000 (unfurnished), without the cost of land; homes aren’t built until they’re pre-sold.

Winalta’s pre-fab homes come in two categories: ready-to-move (RTM) and modular. The RTM is a home with walls, roof, floors, and frames, delivered by trailer to a site, and by crane onto a basement or foundation. The wider modular home consists of at least two components that are delivered and attached at the site (optional components include decks, garages, etc.). The manufacturing is done in an assembly line, beginning with the floor; when that stage of the work is complete, about five hours later, supervisors sign off on the quality assurance aspects and the floor portion is moved to the next work station, and so on. One line is set up to manufacture components 16–18 feet wide, the other is for the 20–22-foot size. A Winalta home includes 1,000 worker-hours, on average. There are currently 300 employees (about one-third are female, including supervisory staff) running two 10-hour shifts weekdays, with a shift overlap of an hour and a half.

“We need at least another 100 people, preferably more,” says vice president of manufacturing Rick Nordstrom, who has more than 30 years of experience in custom home building. “When Artie Kos took over the business last fall and brought in a new management team, we lost about 140 people for various reasons. Some apparently weren’t comfortable with the new direction of the company; others decided to opt for jobs elsewhere, and in this current employment market, workers have several choices open to them. But we’ve added about 50 new employees since then, and we’ve gone to an apprenticeship program, which is proving to be quite successful.” Journeyman tradespeople such as plumbers, electricians, framers, welders, and so on have been hired, which is attracting better-quality potential apprentices, as is a higher-than-normal wage (averaging $16.30 per hour; the night rate is 10 percent higher).

Initially the employees were experiencing a high absentee rate (around 33 percent), which Nordstrom says seems to be typical for the Alberta construction industry. But with Winalta’s new apprenticeship program, the rate was lowered to 19 percent at the start of 2007, and currently it’s at 3.8 percent, “due in part to our better-than-average pay, our friendly and collaborative working environment, our good communication throughout the plant, and our solid safety record,” says Nordstrom. “It’s a real team concept now; we have regular meetings to discuss any problems, and the employees feel like they’re involved in making a good, reputable product.” Shop floor employees also like the fact that managers, from executives to supervisors, spend a lot of time out of their offices, being directly involved in the work. As Nordstrom puts it, “We seemed to be perceived as being top-heavy, but now we’re out there too, putting on the tools.”

Quality control is a priority; the homes are all CSA (Canadian Standards Association) certified. CSA inspectors visit home builders regularly and charge a considerable fee for every inspection. Initially Winalta was inspected very closely in every aspect of its operation, but once it was assured of continuing quality and safety controls, the inspectors eased the frequency of their visits, says Nordstrom, “because they’ve been satisfied with our conscientious efforts.” Occupational Health & Safety inspections are also mandatory and regularly scheduled for the purpose of identifying workplace hazards, by assessing and controlling risks. Inspectors include discussions with the plant’s own health and safety committee to assure that concerns are being addressed by management.

Suppliers of building materials—from dry wall, insulation, and lumber to plumbing and electrical components—are mostly local, and Nordstrom is pleased with their efforts, especially with Winalta’s intention of getting “greener” in terms of more energy-efficient windows and furnaces, for example, and higher R-rated insulation. A computerized system is in the process of being created to replace the information technology system now operating throughout the plant, which will integrate everything from purchasing, scheduling, accounting, and inventory control, to design and drafting. All plant waste is recycled.

The company is producing 40–50 homes per month at the moment, gearing up for substantial increases, and Nordstrom hopes to eventually increase it to 75 with the addition of new employees being brought in from the Philippines. “Our plan is to operate 24/7, and we’re also looking at a new production setup that will attract more journeymen and make the process more efficient,” he says.

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