Keep Calm and Make Capital Investments: Gregory Aziz and National Steel Car
March 3, 2018
National Steel Car was established in 1912 under the name Imperial Steel Car. For more than a decade NSC has been recognized by the TTX SECO for supplier excellence. Furthermore, NSC is the only railcar manufacturer in North America to obtain a 9001 certification by the International Organization for Standardization.
When a company starts to stray from its mission and business strategy, the management team is supposed to start steering the company back in the right direction. What happens, however, when the management team completely abandons their company and leaves it to die? For National Steel Car, this was almost a reality that they had to face. Luckily, entrepreneur and businessman Gregory James Aziz came to the rescue before the company went completely under.
National Steel Car had its share of problems in the 1970s and 1980s. As a manufacturer of railcars and rolling stock for freight trains, much of the success of the company depended on the economic environment of the railroads as a whole. When the trucking companies started to move in on the customers that had traditionally gone with rail traffic as their main source of transportation, the railroad industry started to suffer. They gradually declined and started to merge with each other to stay afloat. For suppliers, this meant there were fewer customers to sell to.
Any normal management team would see this and decide to change their strategy. Instead of doing that, however, the management team of National Steel Car decided to jump ship. They started stripping all of the capital out of the company to earn their returns. They thought there was no way that the company would be able to survive a blow like this, so they refused to invest any more money into it. When it seemed like National Steel Car was about to be gone forever, Gregory J. Aziz purchased it from the owners in 1994.
Greg Aziz knew exactly how to handle this situation. He worked with management to come up with a new business strategy that focused one engineering and design of a new, high-quality car instead of one that was just low-cost to build. The market had been wanting higher-quality cars, and the low-quality ones that had previously been built by NSC were causing issues for customers, driving them away. When they got wind that National Steel Car was starting to increase their quality again, customers started to come back. To keep up with the new demand, Gregory Aziz put more money into the company and purchase new machines and equipment to increase production capacity. Get More Information Here.
In the end, National Steel Car survived this period of uncertainty because the new owner and CEO, Gregory J. Aziz, kept a cool head and did not abandon his post. Management teams in every industry could learn a valuable lesson from the actions of Greg Aziz.
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