Bourgault Industries Ltd. Expanding Production Facilities
Date: Aug. 8th, 2006
Despite the current state of agriculture, Bourgault Industries Ltd. believes
that positive changes will soon materialize to spur the industry forward
to unprecedented levels of prosperity. As stated by company president
Gerry Bourgault, “At the present time, because of the long stretch
of poor crops, poor prices and high input and operating costs, the
general mood among producers is grim. However, the long-term outlook
for the grain production sector is brighter then ever before. Bio-fuel
production is increasing very quickly. At the current high prices for
conventional fuels, the production of ethanol and bio-diesel fuels
is very viable. Even if oil prices were to decline, the environmental
and health benefits of using bio-fuels will encourage the demand for
these fuel products. Over the next 2 to 3 years, grain consumption
for ethanol and bio-diesel production will increase greatly. World
grain stocks are down to levels not seen in 30 years. These indicators
suggest that better grain prices are not far away.” Bourgault
explains how this relates to the farm equipment industry, “Because
of the low grain prices and high costs, most farmers have had continue
to operate their older systems. Furthermore, many farms are now much
larger than before. This means there is pent up demand for more efficient
seeding systems that we expect to materialize as soon as farmers regain
the confidence that industry will provide a return on their investments.
Our goal is to position our company to meet increased demand as better
commodity prices materialize.”
To help meet the expected future equipment needs, Bourgault Industries
Ltd. is implementing a major 36,000 sq. ft. expansion at its manufacturing
facility in St. Brieux, Saskatchewan. “This expansion will improve
our production efficiency, and accommodate the trend towards larger equipment.” states
John Mueller, Senior Manufacturing Engineer. Energy costs are also factored
into this new expansion. Mueller states, “This is an energy efficient
building design with R40 insulation in roof and walls, and heat recapture
of exhaust air.”
Focus is not just in increasing manufacturing space, but also on improving
manufacturing efficiency and the working environment. Mueller explains, “The
new work flow will mean that set up times will be greatly reduced or
eliminated. That will result in an improved working environment for our
production personnel. With the strong competition for production personnel,
the increased efficiency will keep Bourgault competitive with Alberta
firms in terms of wages and salaries.” Bourgault Industries Ltd.
currently leads the agricultural industry in compensation rates plus
provides a profit sharing plan that has topped up wages and salaries
by 10% per year for all of the decade.
The groundwork will start at the end of July, with the building being
erected by mid November. Completion date is slated for March 2007.
Bourgault Industries Ltd. has been manufacturing and marketing agricultural
equipment for over 30 years. Bourgault has an extensive distribution
and service network in Western Canada, with additional facilities and
staff located in the U.S., Australia, and Eastern Europe.
