Putting old tires to new uses - Milwaukee - The Business Journal
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From the The Business Journal :http://www.bizjournals.com/milwaukee/print-edition/2012/05/11/putting-old-tires-to-new-uses.html
Strategies for Small Business
Putting old tires to new uses Firm makes buckets, shoes from used truck tread Premium content from The Business Journal by Sean Ryan, Reporter Date: Friday, May 11, 2012, 5:00am CDT Related: Media & Marketing, Human Resources
Sean Ryan Reporter- The Business Journal Email | Twitter The process of making a Flat Tire Decor bucket starts with loads of used truck tires that are shipped by the ton from Lakin General Corp. in Chicago. They’re dropped off at Dienamics of Milwaukee Inc., on the city’s southwest side, where the tire sidewalls are die-cut to the thickness needed to make the heavy-duty buckets and their handles. Those parts take a less than 20-mile trip to Easter Seals Southeast Wisconsin’s Waukesha facility, where workers assemble them into buckets using black metal screws. Nonbox, an ad agency in Hales Corners, handles the marketing: “Re-inspired tires for home & garden.” In the center of it all sits Gravity Group Inc.’s office in West Allis where president and founder Michael Hottinger, who created the product, is within a short drive of every step of production. In January 2011, Hottinger rolled out the Flat Tire buckets, marketing them as an environmentally friendly home and garden product that can be used for potted plants or hauling tools or as decorative baskets. “Being the way that the company is, it’s very easy to manage. It’s not like the shoe business where if you’ve got a real problem you have to get on a plane to Hong Kong and get on a boat to China and work with the factory to figure out the problem,” he said. “With this, there’s not a piece to our puzzle that isn’t less than 75 minutes away. We buy our tires from Chicago, we bring them up here to Milwaukee. Everything is very, very close.” The buckets are sold for between $12 and $27, depending on their size, by more than 50 retailers, ranging from gardening shop Weeds in Cedarburg, a new customer, to Murdoch’s Ranch & Home Supply, a Montana-based retailer with 22 locations. Hottinger would not share specific sales figures, but said business is up significantly and he will hire more sales administrators this year to fill out Gravity Group’s office where he and one other person work now. “Sales are growing fast, and they should,” he said. “A first season out, you are not selling many. We are selling more and more now, and it’s growing.” The buckets are Hottinger’s second brain-child born from recycled tires. He used crumb rubber, which is made by grinding used tires into bits, as a shock absorber in the soles of his Flat Tire shoe design. The shoes are sold exclusively at Sears stores. Before starting Gravity Group in 2005, Hottinger worked in the shoe industry for Allen Edmonds Shoe Corp., Port Washington, and locally as a national sales manager for Golden Chang, a Chinese shoe manufacturer. In 2002, Hottinger founded Solution Sales Inc., which licensed the Dewalt name for boot manufacturers to put on their products. He sold Solution Sales before starting Gravity Group and its Flat Tire line. Local entrepreneurs such as Hottinger are vital to Easter Seals’ mission of training people with disabilities for jobs, said Bob Glowacki, chief executive officer of Easter Seals Southeast Wisconsin. The production work for Flat Tire, which Easter Seals performs on contracts with the company, puts 35 people to work at the nonprofit, he said. “People like Michael are key to us,” Glowacki said. “We can kind of assist in being a business incubator by helping people get started and manage their costs.” Hottinger said he is looking to add more to the Flat Tire brand. About two months ago, he started shipping new messenger bags made from rubber inner-tubes that are sewn at Laacke & Joys Co. LLC in Milwaukee. “I like the product,” Hottinger said. “I designed the product because it appeals to me.” LESSONS LEARNED By Michael Hottinger What’s been your best business decision? “Designing and developing the Flat Tire Decor collection to be made locally.” What is your greatest business challenge? “Managing growth of the business.” What is your five-year vision? “To continuously develop relevant and innovative products and categories.” Who is your mentor or source of support in a crisis? “My family.” Sean Ryan reports on real estate, construction and public transit in southeast Wisconsin
5/18/2012 10:23 AM