KMC Controls: In Touch and Out Front

When you manufacture HVACR products that many may see as a commodity, how do you demonstrate the value of your products and the value of your company to customers? For KMC Controls, a manufacturer of controls, actuators and valves, the answer lies in its tagline: In Touch.

Since the company was founded as Kreuter Manufacturing Co. in 1970 by Ken Kreuter, the company has lived by this short and simple message, which it only recently began using in its advertising and marketing. Because when a small manufacturer like KMC Controls, a privately held company, competes with multinational companies in a global market, remaining "in touch" with customers and their needs can be a significant differentiator.

The message of being in touch came through loud and clear as company executives spoke with customers, says Ben Dorsey, KMC Controls' vice president of marketing. From responding to the needs and wants of its customers to being involved in industry initiatives, KMC Controls' operating philosophy has always been about remaining "in touch." While price will always be a factor, the connections that the employees of KMC Controls have established with its customers and with industry partners over the years count among the major drivers of the company’s success. "The connection to people, understanding their needs, trust in business relationships and the ease with which we can do business together are the things that will help us secure our future," Dorsey says.

The company made KMC Controls the new name in 1995 because it better reflected the HVACR industry that it serves. Still, Kreuter Manufacturing Co. remains a well-known brand among wholesaler distributors and their customers; many still refer to the company as "Kreuter," Dorsey says. KMC Controls also continues to carry its legacy line of pneumatics that many refer to as "Kreuter." In fact, Ken Kreuter designed and patented the easily recognizable reset volume controller, which still accounts for continued and strong sales in the replacement market.

These men are descendents of the two primary company founders, Ken Kreuter (engineering pioneer) and Klaus Mueller (production pioneer), and extend their legacy through continued contributions to engineering, manufacturing and executive management of KMC Controls.

When a company has that kind of name recall and recognition among customers, it speaks volumes about the loyalty that its products have engendered. When Kreuter first established his manufacturing company in Winnipeg, Manitoba, he operated out of a three-car garage. The company's products, which included damper actuators, pneumatic-electric switches and logic relays, were marketed through private labels. In the 1970s, Kreuter moved his operations to Minnesota. It was during this time that he expanded the line to include variable air volume controllers and actuators, becoming the leading private label supplier to some of the world's top control manufacturers.

In 1978, the company moved its manufacturing operations to a 4,000-square-foot facility in New Paris, IN, where it is located today. Over the years, KMC Controls has expanded its operations, growing into a 100,000-square-foot facility. During previous years, KMC Controls also has expanded its business to include a complete line of fully programmable digital hardware and intuitive software for local and remote web-based facility management.

The Indiana facility serves as KMC Controls' headquarters as well as its manufacturing plant. Yes, KMC Controls proudly manufactures its products in the United States. Dorsey says the company considered moving part of its manufacturing operations overseas about 10 years ago to save costs, but they stayed in Indiana for two reasons. "The owners of this company are very committed to staying here. It's very much a family atmosphere, and the desire to move simply was not that high," he says. "In addition to that, there's not a whole lot that we do that would be considered high volume, low mix, which is more conducive to offshore manufacturing."

The provision in last year's American Reinvestment and Recovery Act, the stimulus package approved by Congress, that provides funds for projects that use American-made goods has been a boon to KMC Controls. "We have had numerous sales as a result and numerous inquiries regarding this," Dorsey says. Even when Recovery Act funds have not been part of the equation, many construction managers prefer to go with American-made products.