A.R.E Manufacturing and Tiger Manufacturing

Alvin Elbert, who co-founded A.R.E. Manufacturing more than 40 years ago, is a self-described shy person who gradually has established an outsized presence in his community. In addition to running a business that employs dozens of people, Elbert has created a manufacturing program at nearby Newberg High School that trains – and pays – future machinists and engineers.

Even as a high-schooler, Elbert knew he wanted to be a machinist. He was fired almost immediately from his first job after high school, however, because he had no experience and was too afraid to ask for help.

Undeterred, Elbert returned to school and earned an associate’s degree. He then landed a job at a local machine shop, where he worked for a couple of years before deciding he wanted to be his own boss. Elbert did just that in 1980 when, at the age of 23, he and his wife started a part-time machining business in their garage.

It took four years for A.R.E. Manufacturing to generate enough work for Elbert to give up his primary job. Too shy to market aggressively, Elbert grew the business by focusing on quality and timeliness. He assumed that word of mouth eventually would work in his favor.

It did.

Now, more than 40 years later, A.R.E. Manufacturing employs 40 people in an 18,000-square-foot facility that soon will grow to 28,000 square feet.

Half a dozen dental supply companies account for about half of the company’s work. Newberg is home to two of the largest dental equipment companies in the world, A-dec and DCI. A.R.E. Manufacturing produces nonsurgical parts for both companies, from small instrument components to larger supports for dental chairs and lights.

A varied collection of industries accounts for the rest of the company’s work, including aerospace, machine components, hydraulics, home goods and recreation.

An important turning point in the company’s history happened in 2004, when it bought the machining arm of a dental company that had been acquired by DCI. A.R.E. Manufacturing doubled in size instantly, and chaos ensued, says Elbert.

The company worked with the Oregon Manufacturing Extension Partnership (OMEP) to streamline operations. The careful placement of machinery on the shop floor increased efficiency. The creation of precise documentation reduced machine setup time by up to 75%. Even the company’s hiring and training changed dramatically.

So thorough is A.R.E. Manufacturing’s training program that new employees don’t need machining experience. With OMEP’s help, A.R.E. Manufacturing developed an in-house, from-the-ground-up training program composed of modules tied to wages increases. The system provides a powerful incentive for employees to earn more by learning more.

The company’s commitment to training extends beyond its facility. Because his shyness limited his opportunities in high school, Elbert determined even in the company’s earliest years to train interns and provide opportunities for youth. His first intern, hired in 1986, now manages A.R.E. Manufacturing’s shop floor.

Elbert’s work with interns eventually became Newberg High School’s Tiger Manufacturing program. The program began seven years ago with four students and a lathe donated by A.R.E. Manufacturing. During this past school year, 16 students participated in the program (see photo above). Dozens applied, says Elbert, but the program could accommodate only four students for each of its machines.

Tiger Manufacturing is somewhat unique in that students are paid to produce parts used by customers. The program drums up some of its own work, and the rest is provided by A.R.E. Manufacturing, which ensures that the work meets applicable quality standards and is completed on time.

Last year, Tiger Manufacturing did about $70,000 in sales, paid $42,000 in wages and made about $18,000 in profit, says Elbert.

So far, A.R.E. Manufacturing has hired eight machinists from the Tiger Manufacturing program, an average of one per year, and has steered numerous students into the manufacturing arena.

A.R.E. Manufacturing hopes to help grow the program by building new customer relationships and purchasing new CNC equipment. Not only will additional equipment enhance production capabilities, but, more importantly, it will allow more students to enroll in the program. Students are hoping to gather donations to cover the costs that are beyond what they earn from sales during the school year.