Strictly Business: Q&A with Ken Lopez of General Scales Inc.
| Thursday, Mar 11 2010 11:02 AM
Last Updated Thursday, Mar 11 2010 11:04 AM
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Ken Lopez is chief executive officer of General Scales Inc., a truck scale manufacturer based in Bakersfield.
The trucking sector is feeling the economic downturn like everyone else because the health of the industry is based in large part on oil prices and shipping trends. We asked the head of a local truck scale manufacturer how all of that is affecting trucking industry vendors.
NAME: Ken Lopez
TITLE/OCCUPATION: CEO of General Scales Inc., president of the Kern County Officials Association, and Bakersfield Breakfast Lions member.
AGE: 51
FAMILY: Married 25 years to nurse Susan Price. They have a daughter, Frances, 23, and son, Kenneth, 15.
Question: For our readers who are unfamiliar with it, what, exactly, does General Scales Inc. do?
Answer: We make sure a "pound is a pound." We test and calibrate all kinds of scales, including laboratory scales, grocery scales, recycling bench scales, warehouse floor scales, semi-truck scales and railroad scales. We are licensed and governed by the Department of Weight and Measures to certify scales. We also manufacture floor and truck scales.
Q: Where is the company located?
A: In east Bakersfield south of Highway 58 and east of Highway 184.
Q: How many employees do you have?
A: Six (down from 11 one year ago).
Q: Are your customers mostly public agencies, or do you also sell to the private sector?
A: Our main customers are in the private sector. However, we do maintain the scales for some government agencies such as the eight locations for Waste Management, the local correction institutions and other government entities.
Q: How has technology evolved to make scales more accurate?
A: The scale industry has changed more in the last 30 years than its first 200 years. Electronics now dominate the market. The pivot/bearing/fulcrum style of scale is becoming obsolete and there are only a few makers left for these parts. Electronics have made scales more accurate, efficient and economical.
Q: You sell solar power units. Has demand for them increased with all the talk of the new green economy?
A: Most scales are so power-efficient that they use less than 1 watt to operate. You can operate 40 scales for 40 hours. Most customers have power readily available. Another option is batteries, which can last for months. Solar power is used mainly in far out places.
Q: Are trucks getting heavier as they try to do more with fewer drivers, or has declining consumer demand reduced weights?
A: The maximum weight any commercial truck can be without a permit is 80,000 pounds. The California Highway Department does a very good job of monitoring this. The penalty for being overloaded, which can cause damage to our roads, can range upward in the thousands. Most trucking companies try to maximize their loads by carrying the maximum weight which saves on fuel for less trips.
Q: Are concrete prices favorable right now? Why or why not?
A: Concrete prices are still higher than a few years ago. This can be attributed to the higher cost of fuel, equipment costs and insurance costs. At the same time, what I have seen is a lower cost in the labor to pour the concrete. It's really competitive among contractors. Many of them are just trying to hang on.
Q: The recession caused American imports to fall by 26 percent last year, according to federal trade statistics. Exports also fell, but not as much. What effect, if any, did that have on your business?
A: I wish my business had only fallen by 26 percent. My specialized business has suffered a 60 percent loss. The manufacturing side has closed down. The service side has picked up because businesses are fixing their old equipment instead of updating it. We are now more of a service-orientated business than a sales business. As a business owner for 30 years, I have learned that a business needs to be able to diversify. Thirty years ago, Kern County was a big cotton producer. Now pistachio plants, almond orchards and dairies have replaced the cotton fields. It is my experience that Kern County is a great place to work; you just have to be able to change with market conditions.
Q: What will it take to get your industry, and the economy in general, back on its feet?
A: I believe in order for America to grow we need to make adjustments. Currently we have government bailouts to the loan/mortgage businesses, the insurance businesses, the auto industry and a few others that have failed due to greed or just bad management. Personally, I say let them fail, and downsize government. Private companies could do a lot of what government does more efficiently.
