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- Feb 7, 2000
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There's a nice article about Buck Knives Inc. on Business Week Online. Click here. How'd you guys like to be a fly on the wall during those "heated dinner conversations" about outsourcing? 
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A Clan on the Cutting Edge
Four generations of Bucks have managed Buck Knives. Now, CEO C.J. Buck has transplanted its operations -- and given it a new lease on life
At Buck family dinners every night, C.J. Buck always sits down with his five adolescent kids to discuss the day's happenings. But the subject matter is far from the school updates and allowance requests one would expect. Instead, issues like globalization, outsourcing, entrepreneurship, and supply-chain management often come up -- with heated debates ensuing. And for C.J., president and CEO of Buck Knives, his family wouldn't have it any other way. "They all have something to say," C.J. says. "It's good for them to discuss the business."
C.J. Buck is the fourth-generation CEO of Buck Knives, a century-old knife-maker based in San Diego. His father, Chuck Buck, is chairman of the board, his brother-in-law, Joe Houser, is head of customer service, and his eldest daughter, Sarah, works in the company store giving weekend tours of the manufacturing plant.
Having made multi-use pocket and hunting knives since 1902, Buck Knives enjoys all the benefits of a successful and storied family business: a tradition of customer service, a loyal following, and an impeccable reputation for quality. It also has experienced some of the drawbacks of family businesses.
"I would say that the biggest challenge is being the boss's kid," says C.J. who graduated from college but has never worked for anyone but his father. "We did have a rough patch there for a while."
RESTRUCTURED TEAM.* When C.J. took over as CEO in 1999, at just 39, he admits there was some "floundering." He wasn't ready to fill his father's shoes, but 63-year-old Chuck Buck was more than ready to retire. Struggling with the transition, Buck Knives experienced its first losses in decades, a tough pill to swallow for a company that had been a rousing success story from day one.
By transforming Buck Knives and its operation gradually, and growing increasingly comfortable being at the helm, C.J. has turned a seven-figure loss into a six-figure profit in five years. "Life is looking much better now," says C.J., who recently decided to relocate the business from San Diego to Post Falls, Idaho, to help trim operating costs and overhead.
The recovery wasn't easy. In 1999, C.J. had to go outside the family for help. He completely restructured the executive team to incorporate three outside members on the board of directors and only two company insiders -- he and his dad. The previous setup always had three Bucks and two outsiders.
LEAN MODEL.* "My approach was to be as transparent as possible and realize that I needed help to take this business and grow it," says C.J. Together, the team developed a new three-year business plan to help salvage the company and keep manufacturing in the U.S., because all the Bucks agree, "we've always been a great American brand."
The plan's immediate provisions called for a revamping of the production line to a "lean cellular manufacturing" model. Where it once took six weeks to make a product from start to finish, Buck reorganized workers into pods, or "cells," and can now crank out a Hunter folding-blade knife in about 20 minutes. The ability to make a knife quickly eliminates the need to have huge inventories. Buck says the company has also cut scrap numbers in half since implementing the new plan in 2001.
Relocating to Idaho was the next part. Buck estimates he'll save $3 million annually in the new location because of lower costs for energy, salaries, and worker's compensation insurance. "California is not a good place to have a manufacturing business," he says.
MOVING SHOP.* That Buck Knives was able to absorb the hiccup of the past few years and go on to prosper again is an accomplishment, says Daniel Van Der Vliet, director of the Vermont Family Business Initiative at the University of Vermont. "To keep the business in the family for three or four generations is becoming very rare," he says, estimating that only about 3% of family-owned businesses now reach their fourth generation.
Buck Knives is back in the black -- and on the road to the Gem State. In November, it officially shut down its Southern California operations and started the move up north, laying off about 80 of its 270 employees and relocating 50. Once things are settled in the new Idaho plant, C.J. plans to hire about 100 more employees there, with the goal of getting back up to the 250 level. While the restaffing effort is under way, Buck will import some products from overseas manufacturers to help ease the move.
Now, C.J. is busy taking what he learned in the past five years and grooming the next generation -- two of his five kids are interested in the knife business -- to take over. As C.J. is discovering, succession is a perennial thorn for many family businesses. The most valuable lesson he plans to impart on his kids when passing on the family trade? Get input from outside experts. C.J. calls bringing in an additional outside board member one of his "key victories" when making the transition to CEO.
MADE IN USA.* In the years ahead, both C.J. and his father agree that the new digs in Idaho may also quell some of those heated dinner conversations with their kids about outsourcing by keeping the manufacturing jobs in the U.S.
A local bus company in Post Falls even added an overnight stop on its north Idaho route for those who want to stop and visit or take a tour of the famous Buck factory, including the engineering and design labs, test machines for new blades, and laser cutters. After he and his dad heard the news directly from Clay Larkin, mayor of neighboring Coeur d'Alene, "We were both surprised," C.J. says. Nothing like a warm welcome.
By Erin Chambers in New York
==========================
A Clan on the Cutting Edge
Four generations of Bucks have managed Buck Knives. Now, CEO C.J. Buck has transplanted its operations -- and given it a new lease on life
At Buck family dinners every night, C.J. Buck always sits down with his five adolescent kids to discuss the day's happenings. But the subject matter is far from the school updates and allowance requests one would expect. Instead, issues like globalization, outsourcing, entrepreneurship, and supply-chain management often come up -- with heated debates ensuing. And for C.J., president and CEO of Buck Knives, his family wouldn't have it any other way. "They all have something to say," C.J. says. "It's good for them to discuss the business."
C.J. Buck is the fourth-generation CEO of Buck Knives, a century-old knife-maker based in San Diego. His father, Chuck Buck, is chairman of the board, his brother-in-law, Joe Houser, is head of customer service, and his eldest daughter, Sarah, works in the company store giving weekend tours of the manufacturing plant.
Having made multi-use pocket and hunting knives since 1902, Buck Knives enjoys all the benefits of a successful and storied family business: a tradition of customer service, a loyal following, and an impeccable reputation for quality. It also has experienced some of the drawbacks of family businesses.
"I would say that the biggest challenge is being the boss's kid," says C.J. who graduated from college but has never worked for anyone but his father. "We did have a rough patch there for a while."
RESTRUCTURED TEAM.* When C.J. took over as CEO in 1999, at just 39, he admits there was some "floundering." He wasn't ready to fill his father's shoes, but 63-year-old Chuck Buck was more than ready to retire. Struggling with the transition, Buck Knives experienced its first losses in decades, a tough pill to swallow for a company that had been a rousing success story from day one.
By transforming Buck Knives and its operation gradually, and growing increasingly comfortable being at the helm, C.J. has turned a seven-figure loss into a six-figure profit in five years. "Life is looking much better now," says C.J., who recently decided to relocate the business from San Diego to Post Falls, Idaho, to help trim operating costs and overhead.
The recovery wasn't easy. In 1999, C.J. had to go outside the family for help. He completely restructured the executive team to incorporate three outside members on the board of directors and only two company insiders -- he and his dad. The previous setup always had three Bucks and two outsiders.
LEAN MODEL.* "My approach was to be as transparent as possible and realize that I needed help to take this business and grow it," says C.J. Together, the team developed a new three-year business plan to help salvage the company and keep manufacturing in the U.S., because all the Bucks agree, "we've always been a great American brand."
The plan's immediate provisions called for a revamping of the production line to a "lean cellular manufacturing" model. Where it once took six weeks to make a product from start to finish, Buck reorganized workers into pods, or "cells," and can now crank out a Hunter folding-blade knife in about 20 minutes. The ability to make a knife quickly eliminates the need to have huge inventories. Buck says the company has also cut scrap numbers in half since implementing the new plan in 2001.
Relocating to Idaho was the next part. Buck estimates he'll save $3 million annually in the new location because of lower costs for energy, salaries, and worker's compensation insurance. "California is not a good place to have a manufacturing business," he says.
MOVING SHOP.* That Buck Knives was able to absorb the hiccup of the past few years and go on to prosper again is an accomplishment, says Daniel Van Der Vliet, director of the Vermont Family Business Initiative at the University of Vermont. "To keep the business in the family for three or four generations is becoming very rare," he says, estimating that only about 3% of family-owned businesses now reach their fourth generation.
Buck Knives is back in the black -- and on the road to the Gem State. In November, it officially shut down its Southern California operations and started the move up north, laying off about 80 of its 270 employees and relocating 50. Once things are settled in the new Idaho plant, C.J. plans to hire about 100 more employees there, with the goal of getting back up to the 250 level. While the restaffing effort is under way, Buck will import some products from overseas manufacturers to help ease the move.
Now, C.J. is busy taking what he learned in the past five years and grooming the next generation -- two of his five kids are interested in the knife business -- to take over. As C.J. is discovering, succession is a perennial thorn for many family businesses. The most valuable lesson he plans to impart on his kids when passing on the family trade? Get input from outside experts. C.J. calls bringing in an additional outside board member one of his "key victories" when making the transition to CEO.
MADE IN USA.* In the years ahead, both C.J. and his father agree that the new digs in Idaho may also quell some of those heated dinner conversations with their kids about outsourcing by keeping the manufacturing jobs in the U.S.
A local bus company in Post Falls even added an overnight stop on its north Idaho route for those who want to stop and visit or take a tour of the famous Buck factory, including the engineering and design labs, test machines for new blades, and laser cutters. After he and his dad heard the news directly from Clay Larkin, mayor of neighboring Coeur d'Alene, "We were both surprised," C.J. says. Nothing like a warm welcome.
By Erin Chambers in New York
