Labor woes

Building a company's reputation on quality work is quite an accomplishment, but the test comes if that reputation for high standards can be maintained.

Mike Monahan, who owns Superior Hydraulics and Fabrication, Inc. knows this only too well as he faces the challenge of a skilled labor shortage.

"I originally came from Montana," he said. "After I got here I worked in a hydraulic shop for five years, then due to problems left and opened my own business in 1986. I started in the back of the radiator shop with 3,000 square feet and a year later moved to a 7,200-square-foot building."

With his business growing, Monahan moved to his present location in an 18,000-square-foot building at 1615 Marieetta Way in Sparks.

"A large amount of our business is with construction and mining," he said. "I had some connections when I started, and we were picked up by firms such as Helms Construc-tion. Everything has hydraulics and we work on heavy equipment, components and any part of the system."

Then Monahan hired a salesman to go after the mining business.

"We were soon overwhelmed, and I don't use a salesman any more," he said.

His current challenge is finding skilled help at the company which employs eight.

"I would kill for a good machinist," he said with a laugh. "It's old-school work and unlike many manufacturing firms, we do things individually in ones and twos."

Superior isn't a computer-based operation and all its work involves the repair or fabrication of parts.

"We've done some training but there is only so much you can do," he said. "I'm constantly searching for good machinists and we pay well for their services."

Monahan feels the current situation doesn't bode well for the United States.

"We're in deep trouble in the country if we aren't training people, and it's a problem everywhere, he said. "A lot of the machinist are getting older, will be retiring soon and there's nobody to replace them as everybody is corporate orientated."

Although manufacturing jobs are leaving the country, Monahan feels this is creating an unfilled void here.

"The jobs are going overseas but there is no one to fill in for the work of repairing or servicing the equipment," he said.

Monahan feels traditional schools aren't much help.

One possible alternative, he said, might be specialized charter schools such as those operated by the construction trades.

Another challenge to any business is the current regulatory environment.

"It's tough now to start a business and survive," he said. "Insurance used to be $2,000 a year, and now it's $15,000. And there are taxes and more taxes."

To make sure all the work is done, Monahan puts in long hours at his shop. He's also careful about promising when work can be completed so the company doesn't sacrifice quality.

With so much work, and the labor shortage, Monahan had to cut back on the things Superior used to do in years past.

"If the work ever slows down we'll do more of what we used to like service calls, design and fabrication," he said.

While he probably wouldn't encourage his son to open a business, Monahan recognizes that there are rewards to owning a business.

"The available income if you want it and are willing work hard enough," he said. "And there is opportunity as well."