Regional Business Plan - Local Innovators - Oregon Iron Works, Inc. (OIW)

Business name: Oregon Iron Works, Inc. (OIW)

Website: www.oriron.com

Owners/founders: Terry Aarnio

Years in business: Founded in 1944, Current Ownership Since late-1970's

Product(s): OIW is a complex metal fabricator and systems integrator whose products range from steel bridge girders, hydroelectric systems and hardware, nuclear containment and process equipment, maritime craft, and other specialty equipment and materials. Some current developmental products include Streetcars, Unmanned Boats, Unmanned Seaplanes and possible renewable energy devices.

OIW's products vary from build-to-print work to design-build contracts to product development technology demonstrations. We specialize in both prototype and full production projects.

Employees: OIW currently has 300+ total employees located between its main headquarters in Clackamas, Oregon and satellite facility in Vancouver, Washington on the Columbia River.

Where are the markets (industries and/or businesses if B2B) for your products and how important are local customers for what you produce?

OIW primarily produces products for federal, state, and local governments and delivers product throughout the continental US as well as internationally. Local businesses and suppliers are critical to our future. We have very strong relationships with our local supply chain which gives us a competitive advantage. In terms of customers, we cater to customers who want need transportation infrastructure such as bridges, streetcars, boats as well as those with innovative new prototype ideas.

OIW has completed a number of contracts for the State of Oregon and the local Portland government and business leaders as well as federal delegation support has been instrumental in assisting with the recent development of a new product line for OIW.

What does your company do to differentiate itself and its products from those of its competitors?

OIW's work is considerably more complex than that of its major fabrication competition. Stringent quality control requirements (including nuclear standards), accurate earned value management reporting systems, and system integration are all aspects of OIW's contracts that are unrivaled by OIW's competition. Another key area is our willingness to take on innovative and complex projects. OIW is a highly adaptive and nimble small business capable of pursuing many new technologies and industries and we are continually striving to expand the base of our business which takes both innovative vision and managerial leadership.

How has your business changed in the last 5 years (if it is even 5 years old)?

OIW has advanced its capability to acquire more technical work in the past 5 years. OIW has been awarded contracts for stealthy craft for the Navy, for unmanned marine vessels, and an unmanned seaplane. This work leveraged OIW's metals fabrication and boat building competencies and then integrated complex systems requirements and development aspects that make such work achievable.

The last two years?

The last two years OIW has become more recognized by the military and large defense contractor's as a viable technical firm capable of developing advanced prototype concepts and transitioning them into production. OIW's management processes and project reporting capabilities have also advanced such that OIW is capable of meeting more sophisticated customer's needs.

Key innovations in your company (products, processes, designs, ideas)?

OIW has always taken an innovative approach to its thorough fabrication planning and assembly/welding processes. Also OIW has applied for, and received, a number of patents related to its SEALION technology.

Key breakthrough or turning point in the business:

Due to the diverse industries and product lines we represent, we are continually finding breakthroughs and applying lessons learned from one industry to another. A key component to our success is that we are constantly looking forward to the next innovative idea or technology or business stream.

What's the biggest challenge facing your business?

Identifying which new areas of business are the best to pursue and investing in them now. Maintaining a technically capable workforce than can readily adapt to these new technologies. Skilled laborers and skilled office personnel are critical components to our business and it is a challenge to keep expanding their knowledge base and support them accordingly.

Can you describe how metro Portland works as a base from which to compete?

Metro Portland provides access to a variety of transportation nodes which allows us to compete globally as well as nationally. International airports, barge shipping channels and coastal waterways enabling transportation via plane, boat, truck and rail help our competitiveness.