employee empowerment gives serial entrepreneur … · 2013. 12. 11. · street light. i knew it...

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THINKING ALLOWED EMPLOYEE EMPOWERMENT GIVES SERIAL ENTREPRENEUR CHUCK CARTMILL ROOM TO INNOVATE If he wanted, Chuck Cartmill could have a fancy office filled with business awards and framed photos of him shaking hands with senior politicians from around the globe. After all, the 62-year-old high-energy head of five manufacturing and sales companies jets regularly to Europe, Japan and the Middle East to meet with powerful bureaucrats while his innovative thinking has earned him repeated nominations as one of the Top 50 CEOs in Atlantic Canada. Instead, the walls of his offices in Hali- fax and Amherst are bare, except for some pictures of grouse and salmon, and the furnishings might politely be referred to as Spartan. It seems the lone item that is not functional is a ‘For Sale’ sign sit- ting atop a credenza in the corner of his Amherst office. It serves as a constant reminder of the importance of persever- ing, he says. “The awards are wonderful recognition that we are on the right path,” he said in an interview. “But it is with fail- ure, and near failure, that you really learn. I was ready to put the sign in the window of the Amherst plant in 2003 after 16 months of working day and night without turning a profit.” He didn’t put the sign in the window and today the plant is an economic anchor for northwestern Nova Scotia, providing 100 well-paying jobs for local workers. It’s also the manufacturing centre for Cartmill’s big- gest and boldest venture to date: capturing a share of the $500-billion street lighting market. Cartmill grew up in an entrepreneur- ial environment in Northern Ontario. He remembers selling his mother’s fudge door- to-door, collecting copper from school- mates to sell to a friendly scrap dealer and spending a summer picking apples and then selling them for a premium to neighbours. He always knew he wanted to go into business for himself, but to ensure he had a fallback plan, he graduated from a local college as an electronic technologist. His first job was with electronics giant West- inghouse. They offered him a sales posi- tion in Moncton and within 18 months, he founded CSA Enterprises, a technical sales and marketing company he has operated for 38 years. Other companies followed, including a technical sales and marketing company in Ontario, a Nova Scotia land development company, a lighting pole company and a thriving import-export business. It made for busy days, but by surrounding himself with talented people and focusing on stra- tegic growth and data-driven approaches, he found he still had time to look at other opportunities. As a lighting industry insider, he watched for two decades while some companies pros- pered and others failed, as street lighting evolved from traditional mercury and metal halide to the more efficient high-pressure sodium fixtures. With 500 million street lights in the world, he mused, wouldn’t a By Steve Proctor Chuck Cartmill, president and CEO of LED Roadway Lighting, in his Amherst, NS manufacturing plant. Online extras: atlanticbusinessmagazine.com | 73

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  • THINKING ALLOWEDEMPLOYEE EMPOWERMENT GIVES SERIAL ENTREPRENEUR

    CHUCK CARTMILL ROOM TO INNOVATEProud to be part of the community.We’re open for business in Atlantic Canada by providing customized credit and business banking solutions.For a solution that works for your business, contact:

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    If he wanted, Chuck Cartmill could have a fancy office filled with business awards and framed photos of him shaking hands with senior politicians from around the globe. After all, the 62-year-old high-energy head of five manufacturing and sales companies jets regularly to Europe, Japan and the Middle East to meet with powerful bureaucrats while his innovative thinking has earned him repeated nominations as one of the Top 50 CEOs in Atlantic Canada.

    Instead, the walls of his offices in Hali-fax and Amherst are bare, except for some pictures of grouse and salmon, and the furnishings might politely be referred to as Spartan. It seems the lone item that is not functional is a ‘For Sale’ sign sit-ting atop a credenza in the corner of his Amherst office. It serves as a constant reminder of the importance of persever-ing, he says. “The awards are wonderful recognition that we are on the right path,”

    he said in an interview. “But it is with fail-ure, and near failure, that you really learn. I was ready to put the sign in the window of the Amherst plant in 2003 after 16 months of working day and night without turning a profit.”

    He didn’t put the sign in the window and today the plant is an economic anchor for northwestern Nova Scotia, providing 100 well-paying jobs for local workers. It’s also the manufacturing centre for Cartmill’s big-gest and boldest venture to date: capturing a share of the $500-billion street lighting market.

    Cartmill grew up in an entrepreneur-ial environment in Northern Ontario. He remembers selling his mother’s fudge door-to-door, collecting copper from school-mates to sell to a friendly scrap dealer and spending a summer picking apples and then selling them for a premium to neighbours.

    He always knew he wanted to go into business for himself, but to ensure he had a fallback plan, he graduated from a local

    college as an electronic technologist. His first job was with electronics giant West-inghouse. They offered him a sales posi-tion in Moncton and within 18 months, he founded CSA Enterprises, a technical sales and marketing company he has operated for 38 years.

    Other companies followed, including a technical sales and marketing company in Ontario, a Nova Scotia land development company, a lighting pole company and a thriving import-export business. It made for busy days, but by surrounding himself with talented people and focusing on stra-tegic growth and data-driven approaches, he found he still had time to look at other opportunities.

    As a lighting industry insider, he watched for two decades while some companies pros-pered and others failed, as street lighting evolved from traditional mercury and metal halide to the more efficient high-pressure sodium fixtures. With 500 million street lights in the world, he mused, wouldn’t a

    By Steve Proctor

    Chuck Cartmill, president and CEO of LED Roadway Lighting, in his Amherst, NS manufacturing plant.

    Online extras: atlanticbusinessmagazine.com | 73

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  • Online extras: atlanticbusinessmagazine.com | 74

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    company that could predict the next evolu-tion of street lighting be wildly successful?

    Almost before the thought had gelled in his mind, he read about the development of the very first light emitting diode (LED) traf-fic lights. With their focus on long life and energy efficiency, he knew they could be a game-changer. “LEDs are a disruptive tech-nology. They are more revolution than evo-lution. They fundamentally change the way lighting has been approached,” said Cart-mill. “As soon as I saw the first LED traf-fic signal, I knew I wanted to build an LED street light. I knew it would be the next wave, a $500-billion opportunity that would begin to crest over the next 10 years. I wanted to be part of it.”

    So he took a leap of faith and bought a 55,000-square-foot industrial building in Amherst, invested in state-of-the-art manu-facturing equipment, and began hiring work-ers. C-Vision, which as of Jan. 1, 2011 was amalgamated into LED Roadway Light-ing, started off as a contract manufacturer of electronics. It was the foundation for developing the expertise LED street lighting would require.

    The C-Vision/LED Roadway effort even-tually attracted $6 million in federal research loans and a $5 million equity investment by the province of Nova Scotia, but in the begin-ning there was no government money and banks were unreceptive. Cartmill was forced to go it alone.

    His wife, Irene, referred to the plant as a black hole and money pit, but Cartmill remained firm — even after 16 months when he had the ‘For Sale’ sign printed as a poten-tial Plan B. His patience was rewarded when design skills (C-Vision was one of the first in North America to move away from lead-based solder to healthier alternatives), speedy delivery and cost effectiveness combined to drive sales in 2004, which doubled in 2005 and grew by another 60 per cent in 2006.

    With the plant finally stable and assistance from ACOA, Cartmill created Halifax-based LED Roadway Lighting. As a small team of researchers began working with Nova Sco-tia Power engineers on a commercially viable LED streetlight, he began criss-crossing the planet looking at the best emerging LED sys-tems from Japan and California.

    “We could have gone with a variation of the single-lens system already on the market, but our researchers — the best optical design-ers in the world, by my estimation — said no and we went with a more efficient combina-tion of reflector and lens system,” he said. “While our competitors focus on cheaper, cheaper, cheaper, we focus on smarter, smarter, smarter.”

    In his pitch to potential clients, Cartmill

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  • coos that in addition to using up to 80 per cent less energy than traditional street fix-tures, his LED lights last longer, contain no lead or mercury and with the right controls can be powered by solar or wind sources. They can also be rigged for security cam-era applications, Wi-Fi and to monitor their own energy use and performance.

    It would be interesting to put a power meter on Cartmill himself. He has bound-less energy and admits he doesn’t need more than a few hours sleep each night. His suit jacket pockets are filled with scribbled notes on bits of yellow paper about ideas he comes up with on airplanes or while eat-ing breakfast. He golfs, but almost always with clients or board members and has had one week of holiday in the last four years. “I like being out on the street. My job is to bring the business to the door.”

    Always careful to put team efforts above any personal accomplishments, he lauds his R&D and product development teams at every opportunity. He also has praise to for his sons, Ken (sales manager) and Cur-tis (chief information officer), who were recruited into the business after careers with Research In Motion and IBM.

    Ken said he was surprised when the senior Cartmill asked him about joining

    the firm eight years ago. “I thought about it and figured that I could learn a lot from a successful entrepreneur,” he said. “Work-ing with family is great, but it’s not without its challenges. There is a great advantage in that you can openly express your opinions and ideas and know they are being heard.”

    LeRoy Riggs, an installation specialist who has worked with Cartmill since 1982, says the CEO is open to listening to ideas from anyone at anytime. “You can call him at midnight or five in the morning and he will take your call. (He) will find a way to make time.”

    Dave Scott, a partner and manager of the Amherst plant, recalled installing a fax machine in his home just as C-Vision started up, and immediately wanting to rip it out because it Cartmill was constantly sending him a flood of faxes at 3 a.m. and 4 a.m. “I tried keeping up with him, but I’ve given up.”

    Cartmill’s efforts have resulted in pilot projects in Iceland, Norway, Switzerland, France, the Middle East and the Caribbean. His products have been tested on highway bridges in New York, the bridge to Prince Edward Island and at Stanfield Interna-tional Airport. A 2009 Eco-Trust Nova Sco-tia pilot project saw 1,100 fixtures installed

    TOP: Chuck Cartmill (centre) with sons Ken (left) and Curtis (right). Ken is the sales manager; Curtis is the chief information officer. BOTTOM: Chuck Cartmill with LED Roadway Lighting’s chief technology officer, Dr. Jack Josefowicz.

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    Online extras: atlanticbusinessmagazine.com | 75

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  • in Berwick, Antigonish, Canso and seven other Nova Scotia communities. Every one of the 1,130 light poles in Amherst will be converted to LED versions by the middle of the year.

    Halifax Mayor Peter Kelly said the 53 per cent cost savings shown in the Eco-Trust pilot led to a $1.6-million deal last fall to supply 2,137 street light fixtures to the capital city. It’s one of the company’s biggest orders to date, but it falls short of the mega-order the company needs to prove it can be a global player.

    “The market is taking off and we need a big win at home. No one that we get in to see in the Middle East or Brazil has any questions about the money. They want to know what you’ve done at home so they can have confidence in your ability to perform,” Cartmill said.

    The company has 225 multiple-unit installations in 11 countries, but that’s a blip when compared to Beta Lighting, a Wisconsin competitor that caught the wave early and has reaped the fruits of the Buy American Act that has restricted the sale of products not made in the United States.

    For Cartmill, spearheading a Canada-wide replacement initiative involving 4.3 million lights would be a big win. He pitched the idea to Prime Minister Stephen Harper personally, insisting it would cre-ate 8,000 jobs at little or no cost to the taxpayer. He has not heard back from the PMO, but pushed the idea again in Janu-ary during meetings with the Department of Environment to discuss LED options for government buildings and parking lots.

    Due to higher energy costs and munici-pal ownership of street lights, it appears Europe will be the first to move to a whole-sale adoption of the technology. In North America, utility firms own most of the street light fixtures and they are tradition-ally slow to adopt new technologies.

    While Canadian utilities drag their heels, other jurisdictions are busy trying to lure Charles Cartmill and LED Roadway Light-ing to their part of the world. Cartmill says he’s had offers from the U.K., Cleve-land, Europe and South America. For the moment, he’s content to contract some of his product assembly to North Carolina (it allows him to service U.S. orders while complying with the Buy American policy) and maintain his main facility in Amherst. “I like Nova Scotia and Canada. I’m con-fident the big break we need is just around the corner.”

    Cartmill’s gut instincts have proven cor-rect in the past, but if this happens to be the rare occasion when he’s wrong, the ‘For Sale’ sign is still there if he needs it. | ABM

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    76 | Atlantic Business Magazine | March/April 2011

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