"THE MICHIGAN DREAM"

The story of Vanamatic Company begins in Jackson, Michigan with the G&Z Manufacturing Company. G&Z was a precision screw machine company working primarily for the aerospace industry, in particular, the Michigan based Aeroquip Corporation of Jackson. In 1954, Aeroquip created a new division, the Aeroquip Industrial Division with headquarters in Van Wert, Ohio. Irv Ziegler, President and CEO of G&Z Manufacturing felt it would be a good business decision to start a manufacturing operation near this new Aeroquip Division to serve the needs of their largest customer. Six modern day pioneers came up with an initial investment of $40,000 and on May 1, 1954 the operation was incorporated under the name of Vanamatic Company. The six original investors were Irv Ziegler, James Wiltsie Sr., Court Guynn, Charles Bond, Forest Patch and Charles Hasselschwert. James Wiltsie Sr. and Charles Hasselschwert were sent to Delphos to manage operations of the facility. The name Vanamatic Company was derived from the "VAN" in Van Wert county and from the "MATIC" in automatic screw machines.

Vanamatic began operations with 6 employees and 3 automatic screw machines in a 6000 sq. ft. wooden building owned by Alex Teman, located on the east side of South Jefferson Street adjacent to the railroad tracks. In 1961 James Wiltsie Sr. and Charles Hasselschwert purchased the remaining stock of the four other original investors. Their primary focus at the time was solidifying the company's viability in the marketplace, expanding the customer base, and securing long term employment for their 23 employees.

On April 10, 1965 a major fire destroyed the Alex Teman building, now part of the Central Soya parking lot. The Company purchased the vacant 10,400 sq. ft. facility from Kill Bros. Inc. located at 127 South Jefferson St. in Delphos, and moved all operations to the new site. Several additions were added to the Jefferson St. site over the years expanding it to a size of 43,300 sq. ft. by 1998.

"OUR GROWING INFLUENCE"

It is said that a company which does not change and grow is doomed to failure. The understanding of this simple principle is readily apparent when one considers the tremendous success Vanamatic Company has enjoyed throughout it's history.

In late 1965, the Company expanded its manufacturing facilities by 3600 sq. ft. and its office space by 530 sq. ft. The next expansion occurred in 1971 with the addition of 2000 sq. ft. to the shipping department.

In 1976 the Company dramatically increased its production capacity by adding 10,660 sq. ft. to its manufacturing area. The increased space allowed Vanamatic to increase the number of screw machines to 18 machines. The area previously occupied by the screw machines was completely renovated and converted to the second operation department. The 1976 expansion also included a 1300 sq. ft. increase to the existing office space. Total employment at the end of 1976 was 31 people.

Charles Hasselschwert, one of our original founders, retired in 1980. Jim Wiltsie Jr., Jeff Wiltsie and Perry Wiltsie purchased Mr. Hasselschwert's remaining stock and became part of the Vanamatic management team. SPC (statistical process control) became a major component in the operations of the Company in 1982. Since its implementation SPC has been an enormously successful program, and ultimately enabled the company to achieve the much coveted Q1 rating from the Ford Motor Company in 1987.

A 4000 sq. ft. steel storage building was constructed across the street from the main facility in 1987. Also in 1987 an additional 6000 and 2600 sq. ft. were added to the factory and office areas respectively increasing the size of the facility to 41,800 sq. ft.

September 21, 1992 marked a sad day in the Company's history with the passing of President James Wiltsie Sr. Jim was the last of the original founders and served in the capacity of President of Vanamatic from 1954 until his death in 1992.

James Wiltsie Jr., Jeff Wiltsie and Perry Wiltsie were elected by the board of directors in 1992 to the office of Co-President of Vanamatic Company. In August 1996, the Vanex building began operations. This location was built with the cellular concept in mind. The original 4000 sq. ft. storage building plus a 2500 sq. ft. addition were turned in to the first Vanamatic Company work cell. Three screw machines and supporting secondary operations produce the vast majority of the automotive work at Vanamatic Company.

In 1998, planning for a new building began. The design process incorporated many of the ideas received from employee interviews and operational flow charts. The actual building design was based completely on cellular operations. Strong demand for production and customer cost cutting techniques through online auctions caused uncertainty in long range business planning. Vanamatic participated in several online auctions, losing some contracts while winning others.

Business remained strong through most of the year 2000 and customers were still looking for cost saving ideas. Management anticipated trouble on the horizon if the company did not take advantage of the significant cost saving techniques available through the implementation of more manufacturing cellular operations. This would require a new manufacturing building.

The year 2001 brought a softening in production demand. Management saw this as an opportunity to determine the feasibility of constructing a new facility. An engineering firm was hired to do a cost analysis and feasibility study for a new manufacturing facility. The feasibility study looked positive and the go ahead was given to move into the formal building design and construction phase.

Construction of the new building began in October of 2002. The move into the new facility began in August of 2003. All operations were moved from the Jefferson Street building to the current location on Ambrose Drive. The move from one building to the other left behind the traditional manufacturing practices and incorporated new cellular practices designed to improve efficiency, reduce inventory and lead time.

"VANAMATIC TODAY"

From a modest beginning in the leased Alex Teman building with (3) screw machines to our world class 79,022 sq. ft. facility, Vanamatic Company has enjoyed a season of progress. Employment levels have increased from the original 6 people to the current level of 65 employees. Our screw machine capacity has increased more than eight times and we have expanded our market base to include: industrial, automotive, aerospace, electrical, air conditioning, and housing industries.

"OUR FUTURE"

The Company is favorably positioned to compete in our market well into the 21st century. We possess the technology, management philosophy, and most importantly the people .... the foundation of all our past, present and future success. We look forward to the inevitable challenges that await us. The spirit, dedication and work ethic of our founders remains a guiding force in the way we, as benefactors of the "Michigan Dream", conduct our daily work activities as proud employees of Vanamatic Company.