A lot has changed in the 100-plus years since AKS Cutting Systems first became a company. But one thing hasn’t: its dedication to quality.
The Cleveland cutting equipment manufacturer got its start as a tool and die shop more than a century ago, going through different names and ownership over the years. Its current iteration began in the mid-60s, when CEO Greg Phillip’s grandfather bought the company. While still focused on tool and die at that time, it began to expand, crafting custom machines on request. The company would design the pieces from concept to completed product for big-name companies in a variety of business segments, Phillip says.
One such ask led AKS down its current path when an old coworker of Phillip’s father — an engineer — called to see if the company could build and ship a plasma cutting machine overseas. The precise cutting approach wasn’t common outside of medical equipment at the time, Phillip says, and his father deferred at first. But, AKS ended up giving it a try and found success.
After building plasma cutting machines and shipping them to Europe for a few years, a thought occurred to the AKS team: why don’t we try to sell these in the U.S.? AKS had never had its own machinery line, but there was no reason why that couldn’t change.
“So, we started selling one, two, three, four machines a year and slowly got out of the special machinery business,” Phillip says.
That was in the ’90s. The company’s evolution over time has been “organic,” Phillip says. While today, it’s known for that plasma cutting equipment, the product line started as just another specialty machine a customer trusted them to build.
What’s in a name?
Reputation can be everything in business. From the early days, the company wasn’t known as the least expensive; it was known for its “high quality, technical work,” Phillip says. And it’s that knowledge that AKS relied on to build its own line of machines.
“And it still applies today: high quality. We don’t cut corners,” he says.
The company clearly takes pride in its work. There are cheaper machines out there, certainly, and Phillip says the company has failed over the years to design and build a “low-cost, entry-level machine.” He says he remembers taking AKS equipment to trade shows and being accused of bringing specially painted models, as opposed to manufacturing floor-ready equipment.
“Because it’s just not in our DNA to do cheap stuff,” Phillip says. “I think we have that reputation today of having really good, high-quality equipment. People know we’re not the cheapest guys out there, but they know that we build good, high-quality equipment with good componentry, good support and service.”
AKS’s machines are made in the U.S. and, today, they’re primarily sold to customers here, too. The company employs 56; Phillip says if AKS was bigger, overcoming the logistics and quality control challenges to sell more overseas could be worth it. As it is, focusing on the United States market — with some sales in Canada and Mexico, and a few specialized machines scattered across the globe — is the best approach for the Cleveland manufacturer.
Building together
AKS Cutting Systems is still family-owned; the current ownership team is Phillip, along with his brother, sister, parents and son, Chris Phillip. That’s a big part of its culture, Phillip says, which puts a focus on building relationships with both customers and employees.
Chris Phillip, marketing manager, says that, at the company’s core, its sales team’s job is to “help steel fabricating companies make more money. People really don’t want to buy our product; they want to buy what it produces.”
Keeping that top of mind helps the sales team better connect with customers, he says. They don’t want to buy a cool piece of equipment. They want to buy something that best fits what their companies want to build and accomplish. Greg Phillip agrees with the importance of working with customers and helping them find that fit, instead of just selling them a piece of equipment.
“There’s nothing worse … than getting a customer into the wrong machine,” he says.
And the relationship-building approach is particularly apparent internally, as AKS works with its employees to help them navigate issues in and out of work. Ultimately, that leads to low turnover. AKS has seen employees stay from high school graduation through retirement, Phillip says, and the company doesn’t rely on seasonal labor. The goal is to hire people who are a good fit and retain them. The company has a strong team, and that’s something its leaders are proud of.
“There’s a lot of good people. Everybody has stuff that happens. Life happens,” Phillip says. “Let’s work with people, get them through a tough spot, get them back in the game when the time is ready, and I think you end up having a better relationship with the employee.” ●
