McLaren USA expects continued sales growth in 2008
McLaren USA expects continued sales growth in 2008. With a downturn in the market, and recession on the horizon, McLaren has managed to outpace the industry and its own New Year expectations. McLaren CEO Richardson Doyle explains, "We are really happy but not really surprised! Over the last three years we've increased our R&D budget, expanded our international coverage, and invested heavily in improved manufacturing. The truth is that more and more customers are choosing quality over price, and quality is what McLaren is best known for."
McLaren's biggest boost in sales comes from customers who have been unsatisfied and disappointed with other suppliers. As Mr. Doyle explains, "Too many skid steer, track loader and excavator owners have been burned by a number of rubber track distributors selling poor quality products with poor customer service support, and they are tired of it! A great rubber track and a bad rubber track both look fabulously the same when new, but after use for a few hundred hours the customers understand what they've really purchased. And many are bitterly disappointed. We simply provide an alternative."
Over the past 3 years McLaren moved the majority of its production from China and Korea to its new facility in Thailand. This decision was based upon quality and production limitations. Thailand was chosen because of its abundance of natural rubber, modern industrial estates, and access to a very detail oriented workforce. "McLaren took a big step forward when it decided to open its new, state of the art manufacturing facility in Thailand," Mr. Doyle adds.
The new facility is located in a large modern industrial estate alongside US giants such as GM and Ford, which gives McLaren access to better utilities at a very competitive price. The new location allows for the production of better quality rubber products at a lower cost, with less impact to the environment. Mr. Doyle elaborates, "One of our major benefits is the access to natural gas pipelines. While most of our competitors are burning coal and heavy oil, we're keeping our carbon footprint to a minimum by using highly efficient natural gas boilers. It’s environmentally friendly and cheaper!"
McLaren's new Next Generation TDF rubber track, designed specifically for track loaders, is a major success for the facility in Thailand. TDF stands for Technology, Design, and Formulation. The sales of NextGen TDF, as the track is also called for short, have significantly increased even though the pricing is 15%- 20% more than rubber tracks offered by competing suppliers or by using McLaren's older technology. McLaren's CEO Richardson Doyle explains, "NextGen TDF costs 20-30% more to produce than the competition's products from Korea and China, but you are really getting a 100% better track. Better technolgy, design and rubber compound formulation are the key for our success! Customers who have used TDF are coming back after the first set, and buying more TDFs for their entire track loader fleet, that's telling you something!"
McLaren hopes to continue its success in 2008 based on the foundation of quality products and service and on the realization that all customers eventually realize who offers the best value.