Bailey International by North American Constructors Journal

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Bailey International:

They Can Give You A Lift Bailey International, is a global leader in the manufacturing and distribution of mobile hydraulic products and control systems.

Written by Kevin Doyle Produced by Stephen Marino

www.baileyhydraulics.com

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www.baileyhydraulics.com

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nitially established in 1976 as a surplus business in Owosso, MI, Bailey International, of Knoxville, TN has grown to become a highly regarded international leader in the manufacturing and distribution of mobile hydraulic products and electronic control systems. “We are focused on providing high quality service for our customers. That can take many forms, including technical and engineering support,” says company President Ken Baker. “We also have a very wide product offering covering everything from hydraulic cylinders and power units to electronic control systems. We sell our products directly to customers through traditional and online channels. We also sell to mid-size and large dealerdistributors. And we supply custom hydraulic components and electronic control systems to OEM manufacturing partners globally. International equity provider EBSCO Capital of Birmingham, AL purchased the company in September of 2019. Bailey today employs more than 200 people at its corporate office and manufacturing facilities in Knoxville and Victoria, BC; warehouses and fulfillment centers in Kansas City and Reno, NV; and engineering office in Chennai, India. It produces more than 5,000 specific types of valves, power units, hoist cylinders and electronic control systems and components under the Chief Maxim and Sure Grip

www.baileyhydraulics.com

Controls brands. The company is a member of the National Fluid Power Association (NFPA) as well as other key industry associations. Bailey International is an ISO 9001:2015 certified manufacturer. At the time of its acquisition, EBSCO Capital Managing Director Nathan Bouknight praised Bailey International’s “complementary sourcing, manufacturing, and distribution capabilities” in a press release and further described the company as having “a deep-rooted commitment to customer service; and a proven and talented team.”

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“Everybody in the company has a strong customer service focus, from sales people to engineering to accounting to fulfillment and distribution and manufacturing folks – they’re all focused on serving the customer.” - Ken Baker, CEO

To Baker, that team is one thing that differentiates the company from its competitors. “Everybody in the company has high customer service focus, from sales people to engineering to accounting to fulfillment and distribution and manufacturing folks – they’re all

focused on serving the customer. Everybody has a good, solid work ethic and we also like to have a little bit of fun while working hard to achieve and accomplish our goals,” he says. “When you combine our customerdriven approach with high-quality, reliable products and outstanding support, you have a winning

www.baileyhydraulics.com

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Addressing Challenges Without question, the primary challenge facing every segment of the industry is the ongoing COVID-19 pandemic. “In the marketplace right now about one-third of our customers are doing well, about a third of them are doing OK but are down somewhat, and about a third are in a really deep struggle. There is just a lot of disruption in that group. They’ll open but then will have to furlough workers and then have to close again,” Baker notes. The company is doing all it can to ensure a safe working environment for its people. “Our teams work remotely where possible. We have a rigorous testing program in place to ensure that our essential manufacturing and distribution personnel who must work on site stay safe. Making sure everyone stays healthy is our biggest concern,” Baker adds. The company’s detailed Bailey’s Advantage (https:// buildwithbailey.com/the-baileyadvantage/#inventory_management) program includes: • Endurance and destructive design testing prior to production of

www.baileyhydraulics.com

any models • Quality audits and source inspections at the production site to ensure quality before shipping • Supplier training and development to ensure proper quality control is maintained throughout production Additionally, the company’s Inventory Management Program offers solutions such as blanket purchase orders, established inventory holding levels and Kanban fulfillment techniques with continuous communication, technology, forecasting, and purchasing agreements. The company’s supply chain, manufacturing and sales professionals assist in developing clients’ inventory forecasting and

Bailey International | 7 stocking needs.

Day to Day Baker says selling directly to small to mid-sized Original Equipment manufacturers (OEMs) represents the largest segment of the company’s business, followed by direct to consumers and dealer/distributors. The company is investing heavily in research and development at this time. “That’s also what we see with the third of our customers who are doing well and so we’re taking this opportunity and we’re driving hard in product development in our hydraulic and electro-hydraulic business and we’re also investing heavily in our electronic controls division,”

Baker notes. Among the company’s thousands of distinct and varied products, one of its newest is the Bailey Bluetooth® Controller. It has four outputs and a corresponding smartphone app that enables users to switch electrical loads on and off individually as needed. Eliminating multiple manual steps makes the Bailey Bluetooth Controller a perfect complement for dump trucks and trailers, rollback trucks, winches; lift tables, jacks, electric motors and lighting. Baker holds Bachelor’s and Master’s degrees from the University of Tennessee. He never left Rocky Top and has been with the company for

www.baileyhydraulics.com

Bailey International | 8 whether that’s planning or execution. About 25 percent is focused on the cultural aspects of the company especially in this time where we need to make sure we stay connected with people working from home. About 25 percent is analyzing markets and future direction of trends and about 25 percent is on analytics and project work.” The company seeks out like-minded vendor/partners to work with.

13 years. “I moved up to CEO five years ago, and took over from the son of the founder, Mr. Kevin Bailey, who continues to be a great mentor to me,” Baker says. His role varies on a daily basis, which is just how he likes it. “I would have a hard time working in a role that was the same thing every day. I’m not wired for that,” he says. “About 25 percent of my time is focused on strategic initiatives,

“It is critical that our suppliers are upfront and honest with us. If there are problems, we want to know about them so we can work together to solve them,” Baker says. “We start slow with suppliers. We don’t jump in with both feet until we know they are the kind of partners we want to work with. We want to work with companies that have the same characteristics.” The company derives great benefits from its membership in the NFPA. “We’ve been members for a long time. Their annual Economic Conference (IEOC) is extremely valuable, especially this past year (2020), which was

“In the marketplace right now about one-third of our customers are doing well, about a third of them are doing OK but are down somewhat, and about a third are in a really deep struggle.” - Ken Baker, CEO www.baileyhydraulics.com

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all virtual. We got all the value we expected from the presentations and the question-and-answer sessions. And we love what they are doing with their educational components,” Baker notes.

Looking Ahead Once some semblance of normalcy returns, it is easy to see the company redoubling its efforts to enhance technology while expanding domestic and international manufacturing capabilities in a measured way. Its affiliation with EBSCO Capitol seems to all but guarantee that likelihood. “EBSCO is a great partner,” Baker said. “Their track record of acquiring and growing strong businesses, commitment to our growth strategy, excellent capital position and longterm point-of-view make being part of the EBSCO family very exciting.”