A global reach – a local touch

SAF-Holland thrives through vertical integration

The world has been shrinking for years. It seems strange that something happening in Shanghai, Mumbai or Munich can affect trucking operations in Nebraska, but that’s the way things are today. And I’m not talking about global upheaval; we all know how Iranian nuclear reactors or OPEC price-fixing can make everyone’s lives miserable in a hurry.

Rather, I’m talking about the trend toward vertical integration in the trucking industry. Pollution or safety standards in Europe or the United States eventually will influence the design and operation of trucks in, say, Australia, South Africa or China. It’s too expensive and difficult for global component and vehicle manufacturers to design a specific truck for buyers in each of those countries.

But don’t fret: Vertical integration is a slow process, and manufacturers have to be careful to offer new universal solutions – whether we’re talking trucks, engines, brakes, bodies or components – that perform as well or better than the solutions previously offered in each country. It’s a tough task, integrating different approaches to engineering and finding a solution that will make a fleet owner in Omaha as happy as his counterpart in Moscow.

One company that’s doing a fine job integrating international engineering approaches is SAF-Holland, a brake, axle and suspension manufacturer. American-founded Holland and German-based SAF share similar lifespans and corporate cultures, and both have expanded steadily in the heavy-duty industry since their separate foundings more than a century ago. When the two merged in 2006, corporate officers quickly discovered both companies brought highly complementary product lines to the table.

SAF was a leading European manufacturer of braking systems and axles. Holland had an impressive array of liftgates, landing gears and trailer suspension systems.

There was much work to do in integrating the two companies’ products into a unified system, but according to chief operating officer Sam Martin, those efforts have been successful, resulting in a market-focused company with core technologies managed from a global perspective – hence SAF-Holland’s motto, “A global reach and a local touch.”