Market Leaders

By Karen Koenig, Wade Vonasek and Matt Warnock

Profiles of the forward-thinking individuals at the helm of industry-leading companies.

Smart executives are those who take advantage of a down economy and use it to their benefit. They are willing to explore new opportunities in an effort to steer their companies through uncertain times. They think beyond current circumstances and plan a course for their company’s future. They don’t just react — they stride ahead.

On the following pages, you’ll meet the playmakers who have taken their woodworking companies and made them a household word. Their strategies may run the gamut — green certification and manufacturing, lean production techniques and niche market development — but what they all have in common is their ability to overcome today’s economic obstacles and grow their business.

They are woodworking’s market leaders.

Quick Glimpse • Education: BS, Business, Miami University 1982; MBA, Fuqua School of Business, Duke University 1985 • Years at the company: 20 • Years in the industry: 20 • Words that best describe you: Optimistic and determined • The person(s) you have tried to emulate in business and why: I greatly admire the examples set by my father and grandfather in growing and leading this business, and have used their principles and values to create my vision of how to lead the company in these turbulent times.

Kevin Sauder President & CEO, Sauder Woodworking

Experience, determination and an unending supply of patience have provided Kevin Sauder with the flexibility and know-how to lead RTA furniture giant Sauder Woodworking through these tough economic times.

“I am better able to keep the current economic situation in perspective since I lived through the crazy RTA boom years in the late 1980s and the retrenching years since 2001. Also, raising two teenagers, including one with autism, has taught me patience and humility.”

It also has taught him how to persevere under great business pressure.

After the flourishing market growth in the 1980s and ‘90s, to say the swell of foreign competition, in what would become a smaller market base, had a negative impact on domestic RTA manufacturers would be putting it mildly. Yet, despite it all, under Sauder’s leadership the company grew. “In recent years, we’ve had to adapt to fewer, more powerful retailers, aggressive foreign competition and more complex product lines. We succeeded by making strategic acquisitions, focusing on lean manufacturing, reducing costs, and improving merchandising and product development processes.

“I would like to see Sauder get its core RTA business back to a more sustainable level of profitability, address additional markets and product lines with innovative concepts, continue world-class manufacturing in Ohio, improve supply chain management and sourcing with Sauder Asia, and keep our employees, customers, shareholders, suppliers and communities proud of what we do.”

Sauder takes pride in the company and in its ownership. He says, however, he didn’t always plan to work for the family-owned firm. An interest in business and engineering first led him to the telecommunications industry before opportunity brought him to Sauder.

“I could have been quite happy in the telecommunications industry, but in 1988 my dad presented an opportunity at Sauder that seemed very exciting,” Sauder says. “He wanted me to focus on sales and marketing for the newly forming office superstore retail channel. I started selling to retailers like Office Depot when they had only 12 stores — and I’ve enjoyed the journey ever since.”

	Quick Glimpse: • Education: 4 years of college at Boston Architectural Center (BAC) • Years at the company: 27 • Years in the industry: 32 • Words that best describe you: Passionate about our craft • The person you have tried to emulate in business and why: Yvon Chouinard, founder and visionary for Patagonia Inc. and fellow mountain climber.
Mark Richey President, Mark Richey Woodworking & Design

A look at Mark Richey’s personal pursuits provides valuable insight into his business attitude.

“As an avid mountain climber and explorer, I have traveled a lot, seen many cultures and had many intense experiences,” Richey says. “That’s given me a lot of confidence and a unique perspective that has been invaluable.”

After starting out as a carpenter after high school, Richey worked in a harpsichord shop building fine musical instruments for William Dowd. At night, he studied architecture until finally beginning his own business building custom kitchens and furniture in the basement of his apartment. Now his company, Mark Richey Woodworking & Design, crafts and installs high-end architectural millwork. The company’s Convexity Capital project was recently honored with the Architectural Woodwork Institute’s 2008 Standard of Excellence Award in the Corporate category, and was named the overall winner of the 2008 AWI Standard of Excellence grand prize.

Richey takes great pride in the company’s green and renewable energy initiatives, and strives for the company to continue to be a leader in green manufacturing and state-of-the-art technology. “We are currently heating our entire facility with wood waste in a state-of-the-art bio-mass furnace and are in the final stages of erecting a 600kw wind turbine, which will deliver about 85 percent of our total electricity needs,” he says. “We’ve also pushed recycling and waste reduction as much as possible. I believe energy independence for this country is critical to our economy, our environment and to our national security.”

The company’s support for community and work with charitable foundations are also a strong source of satisfaction for Richey. “We recently funded the construction of a school for girls in remote Afghanistan,” he says. “Today, 50 children are able to get an education that they wouldn’t have had otherwise.”

Richey credits his woodworking success from past experiences that taught him valuable traits. “Working in the harpsichord shop taught me quality and attention to detail,” he says. “I learned speed and efficiency from some very good carpenters renovating restaurants and fine homes, and I learned to design and appreciate architecture at the Boston Architectural Center where I was lucky to have some great professors.

“My wife Teresa, who’s my business partner, also taught me to be a better businessman.”

Quick Glimpse • Education: BS, Chemical Engineering, University of Michigan; MBA, Northwestern University • Years at the company: 11 • Years in the industry: 11 • Word that best describes you: Curious • The person you have tried to emulate in business and why: My father. In his career, his ability to combine empathy, analytical thinking, strong relationships, strategy and practical solving of problems is something I have always admired and wanted to live up to.

Kevin Kuske General Wood Manager, Steelcase Inc.

“Every day is a new experience and if you are open to learning, the experiences that make you better come every day,” says Kevin Kuske.

One of the earliest experiences that shaped Kuske involved developing a treatment for schizophrenia while working as a chemist at Eli Lilly. “Observing, listening and looking at the problem from the customer’s point of view made the solution obvious and the team passionately went home to launch all three [liquid, pill and patch] formulations,” he recalls.

“Eleven years later, these insights still help me. Perhaps more importantly, they also inspired me to insist that all of my teams spend time observing our customers, our dealers, our partners as much as possible, regardless of what part of the company they are in. This concept is the very foundation of innovation at Steelcase — the power of observation and design thinking.”

Kuske has been instrumental in helping Steelcase reinvent its Wood business, from the ground up. “Everything had to change: our processes, our products, our pricing and our performance. In just a few years we have created huge improvements in profitability, brought truly innovative products to market and set new standards and expectations for performance,” he says. The company is at the forefront in environmental stewardship, having eliminated formaldehyde from its finishing operation and PVC from its newest platforms, while working toward the goal of zero impact. Steelcase was also the first in the market to have a Cradle-to-Cradle designed casegoods collection.

“This is a very exciting time to be in business where sustainability, the principles of lean and just plain good business strategy are all converging in a powerful way.”

Kuske is responsible for two areas of the company: Turnstone and Steelcase Wood. “In both cases, we have a huge opportunity to help people love how they work and be more productive. We all spend too much time away from our families to not be passionate about our time at work,” he says.

In fact, it is his family that Kuske credits for teaching him the value of hard work and for giving him the love of learning. “My wife taught me more than anyone about the power of listening and the difference between helping people solve their problems vs. solving them for them,” he adds.

Quick Glimpse • Education: Attended Skagit Valley College in Mount Vernon, WA, but did not graduate. I had too many kids and too little time. However, I focused primarily on business courses to get the knowledge I believed I needed. • Years at the company: 13 • Years in the industry: 36 • Word that best describes you: Driven • The person you have tried to emulate in business and why: I don’t think there is any one person. I have been fortunate to associate with many great individuals and each has taught me something different, even when they did not know it. Some are people I have worked for, some are competitors, and some are people who have worked for me, while others are outside our industry. From each I have learned a different aspect of knowledge and motivation that has helped me perform better and rise to greater heights.

Bill Weaver President & CEO, Canyon Creek Cabinet Co.

With 36 years in the industry under his belt, Bill Weaver has experienced woodworking from the shop floor all the way up to the front office.

“Never did I envision at the beginning of my career that I would be where I am today,” Weaver says. “It has been a very rewarding career full of great experiences.”

Weaver says that many experiences have contributed to his success. “My father was a small businessman and I worked for him growing up,” he says. “This gave me a fundamental understanding of business, sales and marketing, and customer service. Starting in our industry on the shop floor and having a solid knowledge of the production side has greatly helped in the understanding of what can and can’t be done in a manufacturing environment, as well as kitchen design, selling and general management experience I gained along the way.”

Weaver joined Monroe, WA-based Canyon Creek Cabinet Co. in 1995 as vice president of sales and marketing. At the time, the company was small and on the verge of bankruptcy. The same year, the company changed from making low-end builder cabinets to manufacturing higher-end custom cabinets, a strategy he says helped improve the business.

“We created a marketing plan and built the organization to penetrate the higher-end custom market,” Weaver says. “We then assembled the talent necessary to fulfill our strategic vision and have surrounded ourselves with competent people.”

Though he has had many achievements in the industry, Weaver says one of his proudest is to have served as president of the Kitchen Cabinet Manufacturers Assn. (KCMA) for two years, where he helped develop the association’s Environmental Stewardship Program (ESP). “It was a great honor to be chosen by my industry peers to serve in this position,” he says. “I think my proudest achievement though has been to work with so many great people at Canyon Creek in taking what was a small company and building it into a major regional company. Canyon Creek is financially secure, run on sound business principles and is well-known in our markets and the industry.

Quick Glimpse • Education: Three years at University of Illinois - Chicago • Years at the company: 22 • Years in the industry: 22 • Words that best describe you: Optimistic, and I always try to see the good in all situations • The person you have tried to emulate in business and why: My father. He was my entrepreneurial inspiration. I watched as he grew a successful business of his own, but more importantly, I watch the amazing way he treats people.

Mike Carson Founder & President, Closet Works Inc.

Though he never intended to be in the closets industry, Mike Carson, founder and president of Closet Works Inc., has become a pillar of it over the last 20 years.

“One day at my dad’s house, in 1987, he showed me the white melamine closets he just had installed,” Carson says. “He suggested that since I liked woodworking, I should do closets. I had zero interest until he said, ‘I had one guy here for one day and paid him $1,500.’ At that moment I had an epiphany and started building closets.”

Carson started Closet Works, a custom closets business, in Chicago in 1987. Since then he has seen the business, and the industry in general, blossom. In 1999, Carson launched the National Closet Group, a professional association that brings together companies in the custom home storage and organization industry, and for more than six years grew a network of closet companies from 13 to 50, until stepping away from the group as president in 2006.

“The greatest challenge, or opportunity, is getting the industry together,” Carson says. “I’ve always believed in the industry and the fact that we can do more together than fragmented.”

Carson says that key strategies such as open-book management, continuous improvement (Kaizen), and celebrating and acknowledging employees’ contributions and successes have benefited his business. He also cites Jack Stack’s book, The Great Game of Business, as influential. Carson attributes his own success to a variety of factors. “I’ve always surrounded myself with good people,” he says. “I know what limitations I have and I’ve always been able to find good people to help me in those areas. I also believe in networking. I’ve been fortunate because I’ve had the opportunity to network with some of the best minds in the closet industry over the years. We’ve been able to help each other with ‘best practices,’ innovation and, most importantly, we’ve created long-lasting friendships. I also believe that having a big appetite for learning and being overly curious has helped in my success.”

With an eye toward the future, Carson maintains goals of growth and customer satisfaction. “I’d like to develop a national presence through regional manufacturing centers, maintaining a high level of ‘Raving Fan’ customers, happy and fulfilled employees and a healthy bottom line,” he says.

	Quick Glimpse • Education: Self Educated • Years at the company: 22 • Years in the industry: 25 • Word that best describes you: Competitive • The person you have tried to emulate in business and why: I don’t try to emulate any one person.
Andy Wilzoch Owner & President, Premier EuroCase

Andy Wilzoch may have left school early, but that has not stopped him from growing his company to be a leader in the store fixture industry.

From Premier EuroCase’s beginning as a 1,000-square-foot shop with a Powermatic 66, a drill press and hand tools in 1987, to the 200,000-square-foot shop with “more equipment than you should be allowed to have” that it is today, Wilzoch has been at the helm to lead the company to new heights of success.

“I use experiences — good and bad — as a tool to guide me in almost all decisions I make professionally and personally,” Wilzoch says. “I would have to say that confidence in taking risks based on previous experiences has been the key to success. I don’t beat decisions to death.”

One thing that has kept the company on a path of growth is Wilzoch’s affinity for the latest in technology. Even though the company may have started off with just the most basic tools, as Premier EuroCase grew, it has invested in the most cutting-edge technologies.

“I have always been interested in the latest technology, regardless of the industry,” he explains. “We are always moving forward and reinvesting in infrastructure. Facilities, equipment and personnel — we believe that all three areas are critical to success.”

As if success was not its own reward, in 2004 Premier EuroCase was recognized by the Woodworking Machinery Industry Assn. with an Innovator of the Year Award. “That was pretty cool, because it was validation that risk has rewards. Awards don’t mean much to the bank, but validation is always nice.”

Wilzoch’s career, and his company’s growth, have not been without challenges though.

“My actual biggest challenge is to build successful companies that can be passed along to current management without the loss of the principles or philosophy that have made us successful,” Wilzoch explains. “The whole organization has to buy into the program for this to work.”

And he is confident that it will work, by remaining on the cutting edge and continuing to move the company forward.

“First class sounds expensive, but it’s a matter of scale,” Wilzoch remarks. “You can have a first-class company in 1,000 square feet.”

He adds, “I don’t do long-term planning as a rule. I allow the companies to adapt to current conditions. We have invested in infrastructure to give us the ability to take full advantage of industry trends and hopefully economic conditions.”

Quick Glimpse • Education: Masters in Journalism • Years at the company: 18 • Years in the industry: 28 • Words that best describe you: Conscious leadership: consisting of core values, trust, commitment, courage and passion. • The person you have tried to emulate in business and why: I don’t have just one person. The most important people in my life are my husband and children. I also have other personal mentors, colleagues and friends, who give me more insight and are business coaches

Pernille Lopez President, IKEA North America

From former journalist and traveling salesperson to president of multi-billion-dollar retail conglomerate IKEA North America, the journey by Pernille Lopez to reach this point has been anything but typical.

Born in Denmark, she moved at the age of 23 to the United States. In Florida, she started her own business importing Danish-style accessories for sale throughout the Southeast. She soon entered the retail furniture market, working with the chain, The Door Store. A few years later she moved west, working at another furniture chain later purchased by IKEA.

“Growing up in Denmark, home furnishings is a part of your life — the home is very important and furniture plays an important role,” she says.

Lopez began working at IKEA in February 1990, and quickly rose through the ranks of sales/marketing manager, to store manager and later human resources manager. She was named president in 2001.

“The company has grown in North America, from a small retailer just 10 years ago to today a national home furnishings retailer. We’ve done that by keeping our focus: being the best we can in price and quality. It also has to do with attitude: We want to be the choice for home furnishings for everybody.

“At the same time, my proudest achievement has also been being recognized as one of the best companies to work for. We have a significant social responsibility and environmental commitment,” she adds.

IKEA has flourished under Lopez’s management style, which she describes as conscious leadership. “By this, I mean not only standing up for who you are, but also being transparent to the people around you — they see exactly who you are and allow you to move forward,” she says.

Conscious leadership incorporates a number of core values, including: trust, commitment, courage and passion. The commitment you give, Lopez says, is to the company through the decisions you make, to your family, friends and employees — that you will never give up, especially in tough times.

“Courage,” she adds, “as a leader means never being afraid to take risks — you have to step forward, and can’t always [play it] safe.”

Lopez does not lack courage. Despite the uncertainty of the economy, she plans to continue growing IKEA’s market share through retail expansions and the Internet. “Our goal is to continue to deliver [the right formula of price and quality] and to grow the relationship between the company and customers.”

Quick Glimpse • Education: B.S., Boston College; M.B.A., Northwestern University, Kellogg School of Management • Years at the company: 18 • Years in the industry: Lifetime! • Word that best describes you: Candid • The person you have tried to emulate in business and why: My father, Pius Bernhard. He came penniless from Germany and built up a wonderful business and was well respected in the business. He risked it all, again and again. When I asked him how he could stomach all these risks, he always said, “I never risked anything. If you start with nothing, you have nothing to lose.”

Mark Bernhard President, Bernhard Woodwork Ltd.

Mark Bernhard must have sawdust in his blood. His father, Pius Bernhard, founded Bernhard Woodwork, and although Mark spent a couple of years outside the industry after college, he came back to woodworking in 1991 and has been at it full-time since.

Bernhard says the wood products industry is “a business unlike so many others. You actually create something, as opposed to just pushing paper around. This is what makes it so rewarding.”

Bernhard’s company creates high-end architectural woodwork, as well as store fixtures, which Bernhard says are not easy markets to compete in, particularly when trying to maintain quality in a market that is very cost conscious.

In addition to learning from his father, Bernhard has been fortunate to have had a thorough education in the wood products industry from many people. Bernhard places a lot of value on the relationships that he has developed in his career.

“There were several folks who actively took me under their wings and exposed me to many different facets of the business,” he explains. “Your people in the business are the core of what makes you successful.

“Involvement with your peers is also critical. Associations, such as the Architectural Woodwork Institute and the Association for Retail Environments, are incredible resources for networking and benchmarking. I have made many friendships through these and other organizations,” Bernhard adds.

Bernhard has used these relationships to learn from others and grow the business into the success that it is today.

“You need to constantly challenge yourself and expose yourself to a variety of different methodologies, including those from other industries,” he explains. “You can learn so many things from others if you keep an open mind, both outside your business but especially internally from your own people.”

Like most other companies, Bernhard is focused on growth in the future. “We need to streamline production further and leverage technology to compete more effectively, while maintaining the quality we are known for,” he says.

	Quick Glimpse: • Education: Attended Purdue University — Indianapolis • Years at the company: 3 • Years in the industry: 3 • Word that best describes you: Determined • The person you have tried to emulate in business and why: I really don’t try to emulate any one person. What I do try to do is learn new things from everyone that I deal with.
Bill LePage Vice President of Operations, The Simple Furniture Co. LLC

Bill LePage must be a quick learner, because in the short time he has been a part of the wood products industry he has achieved some impressive things.

“I had not envisioned having a career in the wood products industry,” explains LePage. “I was actually working for a large national retailer as its manager of construction and store design.”

The vice president that LePage reported to had left the company to invest in an RTA furniture concept and asked LePage for help. LePage joined the new company and focused on the prototyping and engineering of the first round of products.

“The biggest thing we have done to be successful,” LePage says, “is to not assume we know anything. When we first started working on our products, I did not have any experience in wood products manufacturing, so I reached out to Professor Rado Gazo, Wood Processing and Industrial Engineering, at Purdue’s School of Forestry. He was nice enough to help me understand some of the manufacturing challenges for our products and has been a great sounding board when I have any new challenges that I am working on.”

The Simple Furniture Co. produces environmentally friendly RTA furniture, which requires no tools for assembly and is marketed for use in apartments, college dorms, recreation rooms and home offices. LePage’s hard work and dedication have meant big things for the company. Its Ecotots line has been featured on the cover of Parents magazine and was picked up by the Today show. The company also has received write ups in Business Week and USA Today.

LePage says the media exposure the company has enjoyed has been among his proudest achievements. “Seeing our Ecotots line on the cover of a magazine or on the Today show is pretty cool,” he says.

LePage says his achievements have not been without their challenges. “The biggest challenge has been finding the right product mix and distribution channels,” he explains. “It took us almost three years to really find the right product design and marketing platforms.”

With all the success LePage has found in the wood products industry so far, he is not satisfied to rest on his laurels. “We are always looking for a better way of doing things,” he says. “We are constantly looking at ways to make things move through our systems more efficiently.

“I would like to see us build our Ecotots brand to the point that we can start to venture into other product categories,” LePage adds.