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Uniweb Inc. President Cindy Davidson knows her company isn't large enough to take away business from the biggest players in the store display manufacturing industry. But the company focuses on its niche market with its patented steel roll formed "shape" for use in retail outlets throughout the world.
"We have a reputation for quality and service to back it up," Davidson says. "We've developed a reputation in the industry that we can deliver when we say we're going to deliver."
Uniweb was founded in 1970 by Davidson's father, Karl Weber. Weber worked in the retail industry his entire career before inventing the Uniweb system to produce custom-ordered store fixtures.
Today, the company includes drug and grocery stores in its target markets. Davidson says Uniweb's biggest seller is its pharmacy system, which comes with trays for more holding capacity in smaller square footage.
"We find opportunities to increase the holding power or amount of SKUs in a place that will benefit the retailer and consumer," she says. "Store fixtures are not supposed to be noticed, and they're seen as a necessary evil. But the more creative you are with displays, lighting and flooring, the better the sales per square foot for the retailer. They look for those opportunities for holding power and attractiveness in their displays."
Market Changes Davidson notes the retail market slowed down for three or four years, but she has seen that sector regain its economic foothold and retailers are spending more money on store improvements.
"We have added to our sales staff, and we're very happy with where we are now," Davidson says. "We focus on getting out to see our customers because customer satisfaction is most important."
Like many manufacturers in the United States today, Uniweb has felt the pressure of global competition on its sales and revenues.
Between competitors providing products at a much lower cost than Uniweb could ever match and the price of steel rising with the demands from China, Davidson says the company has managed to retain its own niche in the market. Furthermore, Uniweb chose to diversify to make up for a shrinking market.
"Diversification will even out our annual production, and increase our sales quite a bit," Davidson says. "We found a way to diversify so we're not as affected by competition in a single market."
Two years ago, Uniweb developed a custom-ordered garage organization system. Grid Iron, Uniweb's new subsidiary, grew out of the company's standard wall displays for retail markets.
The Grid Iron products have open shelving units that allow consumers to see contents without having to open cabinet doors. Currently, Grid Iron sells its wares through regional dealers who take measurements of garages and make recommendations to the homeowners. "This diversifies us from retail and gives us a stronger base universally," Davidson says.
The first year of development produced a mixed reaction and slow sales, so Uniweb reworked the product offering and launched the item again at a national trade show. This time around, numerous large manufacturers are interested in partnering with Uniweb on a private label. The company continues to entertain offers for a partnership.
"The first year was focused on research and marketing. Sales were not as we would have liked, but now we've been there two years with a viable name," Davidson says. "We've had excellent response from the National Hardware Show and from people exhibiting there, also. Word of mouth catches on."
Organizational Structure Uniweb has one manufacturing plant and its headquarters in Corona, Calif., in a 170,000-square-foot facility. The company also has satellite offices in Wyoming, Florida and Northern California.
Although Uniweb has 150 employees, Davidson hopes to add to that total once business picks up as expected. She says the company moved operations to the current facility after operating out of three plants in Orange County, Calif.
Unique to Uniweb Davidson says the Uniweb "shape," invented by her father, is the most interesting part of the manufacturing process. The steel is rolled on site on a 30-stand roll former in a cold-roll process, which is not normally done.
"Some companies extrude aluminum in the shape of our products," she says. "But steel is the least expensive and strongest raw material. Our investment in machinery has sustained us."
The Uniweb machinery includes a roll former that is 60 feet long; it takes steel and rolls it from 12 inches wide to 6 inches wide to produce the final product.
"One of the big reasons we do this on site is to match the shape," Davidson says, "to make sure if a customer purchased our product five years ago and wants to add on to it, the panels and accessories will match."
Vision of the Future Davidson foresees Uniweb continuing to expand in different markets beyond the Grid Iron label if customer requests are any indication.
She says Uniweb's consumer products division has fielded requests for storage products from hobbyists and for home interior organization designs that envision its use for pantries and laundry rooms.
"There is a lot of growth potential with repackaging and remarketing," Davidson says.
"And there is always opportunity in retail. We're out there and talking to customers, listening to their needs and we're working to fill that." |