News

Downsizing. Rightsizing. Outsourcing. These euphemisms for corporate cutbacks all translate into one thing: fewer jobs and more layoffs at big companies.

For many firms, the 1980s and 1990s have been a time of slow sales and belt tightening. But while many firms saw peril, Enser in Cinnaminson saw opportunity.

Enser is an engineering design and drafting services firm started in 1947 by Mario Arnone, a Temple University graduate. While Arnone remains president of the family-owned company, the next generation is already moving into place. One son, Robert, is Enser's vice president, and another, Marco, is the general manager.

Enser provides engineering services for other firms. By outsourcing their drafting and design work to Enser, clients can get quality results and avoid taking on long-term employees for short-term projects. This keeps payroll costs down and also saves the client firms the trouble of hiring, laying off, and then rehiring employees. Besides being bad for morale, the hire layoff- rehire cycle can play havoc with a company's state unemployment insurance contribution, resulting in higher employer premium charges.

Enser's growth is reflected in its revenues. In 1993 Enser had sales of $1.6 million. That grew to $2.1 million in 1994 and $3.2 million in 1995. The firm has expanded from its New Jersey headquarters, opening satellite offices in North Carolina and Florida. Its customer list now includes blue-chip firms like DuPont and Westinghouse.

The thought of a company like Enser, with 65 employees, courting giants like DuPont may seem odd at first. But Arnone insists his company's smaller size actually enhances Enser's performance.

"We're a small company that delivers good quality," he says. "When other firms deal with us, they don't have to worry about a bureaucracy. We don't get involved in office politics, and we bring a good focus to bear on assignments." A smaller, flatter organization is precisely what management consultants like Tom Peters have been advocating.

Enser's can respond quickly to client needs because of its size and also because the firm puts technology to good use. "We've got a direct computer link with DuPont," says Arnone. `Between that and overnight mail services we've got a great communications system."

Electronic mail sent through the Internet lets the company exchange documents with its customers nationwide. Given the ability to instantly send messages, Arnone notes that physical locations do not matter anymore. The image of an entrepreneur, relaxing on a tropical island while transacting business with a laptop computer, may be on track to realization.

Technology alone,though, does not attract and keep customers. If a firm does not deliver a quality product the first time, there will probably be no second chance.

Arnone knows this and motivates his employees accordingly. "We've got a fairly young staff," he says. "They want challenging assignments and exposure to the latest technology. We try togive them both. They're constantly working on different, interesting projects."

This is reflected, says Arnone, in the firm's commitment to working with the latest engineering software programs. "One of our largest expenses is software," he says. "But we've got to stay current."

In an innovative move, Arnone has leveraged his software use into a source of new clients. "We join engineering software user groups and get a list of firms that are in the group," he says. "Since the user groups are centered around engineenng software, it stands to reason that these firms have some engineering involvement. We take the list of participating firms and contact them, offering our services."

These days user groups often meet by posting questions and tips to electronic bulletin boards on the Internet. The electronic equivalent of a return address is usually posted too, so contacting a firm is easy.

Because the Internet reaches an estimated 20 million people worldwide, it presents Enser with almost limitless, low-cost, marketing possibilities. Besides the user groups, Arnone's firm uses traditional methods like cold calling and word of-mouth referrals.

One referral source is Joe Donegan, an Orlando, Fla.-based marketing department executive with Westinghouse. "We're very satisfied with Enser's drafting services," he says. "The company has consistently met our total quality on time and productivity criteria."

Enser already handles design projects for everything from toys to turbines, but its owners are not waiting for the future to surprise them. They are already considering new roles for the company. "We're looking to expand into related areas," says Arnone. "We're seriously considering moving into manufacturing."

An expansion into manufacturing sounds risky. After all, many manufacturing firms in the northeast have folded or fled south. Enser's safest course might be to stay with its current service-oriented niche.

But Arnone is confident about the company's direction, and notes the firm will not act before studying its options. He seems to shrug off thoughts of failure. "I love it," he says. "We're always doing something different."



Back