In a move designed to deliver benefits to customers and change the way its products are presented to the market, Astec Industries has announced a major restructuring of the company’s business model.
The change to the organisation’s structure sees all its well-known subsidiary companies brought together under the new OneASTEC banner.
Former brands including JCI, KPI, AMS, BTI, Telesmith, Telestack, Roadtec, Carlson, Osborn, Heatec, Astec Inc., Powerflame, Peterson and Rexcon, and two new concrete plant manufacturing acquisitions, Con-E-Co and BMH Systems will no longer operate as separate subsidiary businesses and will take on the Astec name.
Coinciding with the restructure, Astec has launched an international rebranding initiative – the first since the company was founded in 1972.
Astec Industries’ President and Chief Executive Officer Barry Ruffalo announced the changes from the company’s head office in Chattanooga, Tennessee.
According to Ruffalo, the restructure is part of the company’s OneASTEC business model including its ‘Simplify, Focus and Grow’ strategy.
“The unification will make it easier for dealers and customers to work with the company,” he says.
“By coming together as one organisation, we can offer greater customer service and drive innovation. The rebrand enables us to build our strength together under one common name and purpose. We can better leverage growth as one Astec team rather than individual brands.”
Astec Australia’s Regional Managing Director, David Smale, welcomes the changes.
“Astec was founded in 1972 by Dr Don Brock who was known and respected globally for his ingenuity and focus on developing high quality products and leading technologies. He had an unparalleled passion for his customers and for hard work, expanding his business – one company at a time – until it became the global organisation it is today. That growth was achieved both through acquisitions and by building businesses like Astec Inc., Roadtec and Heatec from scratch. Don Brock’s legacy has truly survived,” says Smale.
While Astec’s development has been remarkable, Smale believes it’s the core values on which the company was founded that have sustained the business for almost fifty years.
“Devotion to the customer, safety, integrity, respect and innovation; they’re the values we’ve lived and worked by and they’re as important today as they were in 1972. The OneASTEC business model is underpinned by these strong values,” he notes.
“The pillars created by Barry Ruffalo – ‘Simplify, Focus and Grow’ – weren’t simply dreamed up. In his first two months as CEO, Barry visited all Astec factories around the world, talking directly to our employees and customers. It was their feedback that convinced him the business needed to be less complex so we could focus more effectively on our customers and the products, service and support we provide them. This simplified structure means we will be better able to fine-tune our product range, be more competitive and offer our customers even better value,” Smale adds.
A global move
Astec has rolled out the new structure globally, so the company’s business operations are identical in every region.
“In the previous model, sixteen companies operated on a range of different systems. Under OneASTEC, we are already seeing huge benefits from working together under common operating systems across the entire business,” says Smale.
“Simplifying our internal structure makes for greatly enhanced information transfer between different parts of the business, no matter where we are in the world. And that gives us a superior ability to meet and respond to our customers’ needs.”
While Astec strengthens its global network, Smale says the company recognises the need to maintain a local perspective.
“We fully understand that our customers in different regions around the world have different requirements. That’s why we’ve established a hub at the centre of every region, in the same time zone as our customers.
“Our teams have expertise around the products and they know the local market, so there’s a detailed understanding of local standards and regulations, and potential impacts of the physical environment.”
A fresh look
Astec Australia customers will soon become familiar with the company’s newly released branding. The streamlined grey and blue ‘A’ will be standardised across all Astec products, and those products will become more readily available to the market.
“Wherever you are, when you operate remotely, logistics is always a critical issue and it’s no different for us here in Australia,” says Smale. “One thing that will reduce the impact of that is the decision by the company to locate our factories regionally, closer to our markets and the customers we serve.”
As part of the restructure, Astec Australia has taken over its dealer networks operating in the country. According to Smale, the move has opened up new market segments for Astec.
“We’re expanding our product offering, particularly in terms of innovative modular equipment, as well as our new Astec BG series of modular asphalt batch plants. We now provide a very successful range of concrete plant products.
“In the concrete sector, Con-E-Co and BMH were acquired last year to complement our Rexcon brand, all of which have been united under our OneASTEC umbrella. We now have 60 concrete plants operating for our customers throughout Australia and New Zealand, so that’s a significant addition to the business,” he says.
As Smale further notes, it’s all about giving customers more options to add portable equipment to their existing facility when peak production periods demand it.
“Other relatively new products to the Astec offering are our material handling systems from our Telestack factory in Ireland,” says Smale.
“Whether you operate in a mine, quarry, port or plant, Astec offers the most comprehensive and accomplished range of mobile conveying solutions in the marketplace.”
The company’s product range includes mobile ship loaders, ship unloaders, hopper feeders, truck unloaders, bulk reception feeders, stockpiling conveyors, link conveyors and telescopic stackers.
“Ultimately, our goal is to design and build state-of-the-art equipment which makes it possible for our customers to supply their customers with industry-leading results profitably,” says Smale.
“We are committed to connecting people, processes and products, advancing innovative solutions from rock to road. We’re ‘Built to Connect’, and OneASTEC helps us achieve that purpose.”
This article was originally published in the August edition of our magazine. To read the magazine, click here.