Through the years - Industrilas stories

Industrilas sees the light of day

The entire Mölzer family has from the very beginning been a part of Industrilas journey. From assembling latches to opening up their home for overnight guests. Teamwork, responsibility, and determination from the family played a crucial role during the early years, and still does today.

The idea about Industrilas

Growing up in a Germany affected by the war made Klaus Mölzer seek his way north. The choice landed on Sweden and at the age of 22, Klaus sat foot in the deep forest of Småland for the first time. He found employment at Eldon, a local supplier of electricity cabinets. He worked with welding and building cabinets for two years before he, in 1966–1968, fulfilled his childhood dream and studied to become an Engineer. During this time, Klaus did not only find his work passion, he also met his future wife, Annika. The couple later moved to Nässjö and Klaus returned to Eldon but this time as a Design Engineer. After a while he discovered that suitable locks and hinges were often missing for custom made enclosures. Right there and then, the idea about Industrilas started.

“I asked the CEO at Eldon what he thought about me starting my own business. He disliked the idea and said that if that were to be the case, I had to quit. I did not have the courage to do that then and there, so I decided to partner up with my German friend Ulrich Hild. We started Industrilas as a side business together. It worked well at the start but to not lose credibility, I eventually had to quit my job at Eldon. I wanted to put all my effort into Industrilas together with Ulrich”, Klaus Mölzer says.

The day Klaus handed in his resignation and took the step into the unknown, Industrilas’ journey began for real.

“I was skeptical in the beginning, and I mostly thought about our children, Fredrik and Linda, and how we would support ourselves without Klaus’ monthly income. But eventually I got onboard and relaxed. I knew that Klaus was a man of action”, Annika Mölzer says with a smile.

A family effort

In 1981, Industrilas slowly started taking form in the Mölzer home. The first latches were assembled in the garage, along with the production of the first product catalogue. Klaus worked hard every day, from morning to night, seven days a week. The whole family spent several evenings every week in front of the tv, assembling latches. When one case was finished, Klaus brought in a new and the process repeated itself.

“I remember when we assembled latches with the family. Dad came in with those blue cases that are still used at Industrilas today, and we did latch after latch. To make it more fun, we often made it into a game. We put the timer on ten minutes and put together as many latches as we could”, Linda Mölzer says.

Since money was tight the first years, spending money on hotels for visiting partners was not preferable. Instead, Klaus offered partners that lived far away to stay over at the Mölzer home. All the money that came in was spent on material and assembling parts.

“It was fortunate that Annika had an income, otherwise I would not have been able to keep going. I often had to choose between a box of screws or bread for the family. It was tough and the only reason it worked was because of Annika”, Klaus explains.

When Industrilas took the step to move to a bigger location in Nässjö, business volumes started to increase rapidly.

“Me and my sister became headhunters, searching for assemblers among our classmates at school and we worked in teams of 6–8 people during weekends. I pretty much worked in the production all the way from 6th grade throughout my college education”, Fredrik Mölzer reminisces.

Team spirit and joy

It was a normative time and the experience from the production awoke a great interest in technology with Fredrik. But also a fascination for everything that can be achieved with a positive team spirit between co-workers.

“I especially remember how we assembled quarter-turn latches, the easiest bulk product in the assortment. It was long shifts at this station, and we made it a challenge to see how many latches we could do in one hour. In a team of three, we constantly made over 1,000 pieces an hour. It was an easy and fun way to get the work going”, Fredrik says.

A couple of the employees that assembled latches together with Fredrik are still a part of Industrilas today. To be able to grow with your company has been a part of Industrilas corporate culture since the start.

“During our first years, we created our identity and our way of seeking success. Dad taught us that if we work hard, bring joy into the work, are responsive, focus on team spirit, look out for each other, think outside the box and always, always challenge the doctrines that exist – then nothing is impossible”, Fredrik says.

Lessons keeps the expansion going

Like all new businesses, Industrilas struggled with finances the first years. There was no option of buying your way around challenges that emerged. So instead, inventive solutions became the answer. Even though the first period had its ups and downs, Industrilas started to expand, build a team and establish the brand in the region.

The first years

The Mölzer garage became the starting point for Industrilas in 1981. But the garage quickly became too small and to get more space to grow, the business moved to Klaus Mölzers’ business partner of the time, Ulrich Hild. Klaus and Ulrich worked with turning and assembling of latches, seven days a week.

“It felt great and necessary to move the business and to get more room to manufacture our products and solutions. We got the sense that we were needed on the market and more customers started to notice us”, Klaus says.

As Industrilas continued to grow, additional space for both production and offices were necessary and in 1983, a new relocation was made in the region. And even though the new space was much larger, it had its challenges.

“We had the office on the top floor, and because of the sloping ceiling, you had to be careful not to hit your head. We wrote signs with ‘Mind your head’ but it did not matter. We hit our heads anyway. But it was funny”, Christina Beckman Johansson, retired Production Manager recounts.

Resourcefulness

One of the first employees, Bengt-Åke Alfredsson has been with Industrilas since 1984. Today, he works as Design Manager and Production Developer.

“We did not have the means to invest. Instead, we bought old machines and fixed them up so we could produce what the customers ordered. We had to do as much as we could with the resources we had. Simple as that”, Bengt-Åke says.

A while after Bengt-Åke got onboard, Industrilas decided to expand the production with zinc casting, even though, no one at the company had experience with it. But the decision was made and the man for the job was Bengt-Åke. At night, he travelled 90 km to Värnamo to learn and cast in a machine that was borrowed from Gjuteriteknik. In 1987, Industrilas bought its very first cast machine that was in use until 2020.

Gunne Johansson became Industrilas’ seventh employee, two years after Bengt-Åke. Up until today, he worked as Purchasing Manager and HR Manager. Gunne retired in 2021. He remembers the start and the journey well and has a backpack filled with memories.

“It was very austere in the beginning. We had offices and production together and there was a lot of movement and loud noises. It looked very different then compared to now”, Gunne describes.

Resourcefulness

One of the first employees, Bengt-Åke Alfredsson has been with Industrilas since 1984. Today, he works as Design Manager and Production Developer.

“We did not have the means to invest. Instead, we bought old machines and fixed them up so we could produce what the customers ordered. We had to do as much as we could with the resources we had. Simple as that”, Bengt-Åke says.

A while after Bengt-Åke got onboard, Industrilas decided to expand the production with zinc casting, even though, no one at the company had experience with it. But the decision was made and the man for the job was Bengt-Åke. At night, he travelled 90 km to Värnamo to learn and cast in a machine that was borrowed from Gjuteriteknik. In 1987, Industrilas bought its very first cast machine that was in use until 2020.

Gunne Johansson became Industrilas’ seventh employee, two years after Bengt-Åke. Up until today, he worked as Purchasing Manager and HR Manager. Gunne retired in 2021. He remembers the start and the journey well and has a backpack filled with memories.

“It was very austere in the beginning. We had offices and production together and there was a lot of movement and loud noises. It looked very different then compared to now”, Gunne describes.

Team spirit and solidarity

“The first years were characterized as everyone helping each other. When the workday was finished at the office, we would go down to the production to see if they needed help. And then we sat there and assembled until every order was complete. Delivering the products was top priority”, Christina says.

Niklas Graberg, Director of Global Sales, was employed in 1988. Before he could start his role in sales, he had to work six months in the production.

“Klaus thought that I should see how all the processes in the production chain worked. So I worked at all the departments we had back then and everything I learned is still useful today, even though the processes look different now. The team spirit was high from the beginning and the job was done together. If something needed to be done in the evening, we all pitched in and assembled latches or packed up orders”, Niklas says.

The expansion continues

“During the fall of 1995, we entered the facility at Svedjegatan for the first time. It felt enormous to us, and we got lost walking around. We were unsure about the space and the finances, but eventually we decided to take a risk and buy the premises. This was a very good choice. It was a great asset for further expansion and we really accelerated after that”, Gunne says.

During spring 1996, Industrilas moved into the new facilities. The production did not have to use the entire space in the beginning and parts of the property was rented by two local businesses until Industrilas eventually needed to use the full space. The organisation continued to grow and in 2005, the factory increased with an additional 2,200 m2.

Industrilas’ expansion continues and as of now, we are experiencing growing pains again. We are managing this by building an entirely new factory in Nässjö.

“To go big has always been Industrilas motto. We take on challenges and then we grow into the part”, Fredrik Mölzer finishes off.

Relationships guide the way

In 1985, Klaus Mölzer travelled to America to do business across the Atlantic. He got in contact with Dick Keister, the manager of Austin Hardware: the company that later on became Allegis Corporation. Klaus and Dick made a deal and a simple handshake laid the foundation for their joint venture. Today, 37 years later, Allegis continues to be Industrilas’ most trusted and valued partner, and vice versa. The successful relationship between the two companies is built on mutual trust and respect.

The partnership is formed

Greg Mattson, CEO at Allegis, started his career as a summer employee at the Austin Hardware warehouse. After graduating from college, he began working in sales and over time, he got trusted with more responsibilities for new and larger areas. During the early 90s, he met Klaus for the first time and Greg has always seen Klaus as a mentor.

“Klaus taught me patience and to see the value in the employees. The more human side of the corporate life if you will. All his decisions were based on the individual and he advocated building relationships above selling. Relationships first, and then selling”, Greg explains.

Expansion takes off

Klaus travelled to America and met with customers and represented Industrilas a few times a year. The collaboration between the two companies took a major step in 1999 when Fredrik Mölzer moved to Minneapolis to develop Industrilas in all of North America. What was intended as a one year stay, turned in to five years.

“It was educational working together with Greg. He taught me a lot about technical sales, but also how to build relationships and trust with the customers. And just like dad was a mentor to Greg, Greg was a mentor to me. I am still inspired by his drive and work ethic”, Fredrik says.

With Fredrik on location in America, opportunities for faster communication with the business in Sweden opened up. And the requirements from the American customers where met more rapidly and efficient.

“We would visit a customer and pass on their requests to Bengt-Åke Alfredsson, Head of the Design Department in Sweden, that same day. And through Fredrik, the customer would get design ideas for a solution the next day. Another factor that made Industrilas so successful during the 90s was the head start with SOLIDWORKS. They were the first company to apply the program in Scandinavia. This enabled us to show our customers three dimensional drawings, something our competitors could not provide at the time”, Greg says.

A rare business relationship

“The key to our relationship is a mutual respect for each other’s organisations. And also, to closely monitor the other’s need. There have been situations where both of us had to accommodate the other. For example, we have supported each other during financial difficulties”, Greg explains.

The dynamic of the partnership is found in the strengths Industrilas and Allegis have on their own, and how these strengths come together to meet the demands on the market.

“Allegis has great access to the American market and are skilful in making sales to big American customers. With Industrilas’ European ways, we have managed to implement different angels when it comes to the design and functionality of the applications. It is easier to be innovative and persuasive with Allegis by our side. We have a lot of credibility together. Through the years, we have encouraged each other and in addition to the partnership, many of the employees have become friends, which is a great joy for me”, Fredrik says.

A flourishing future

The long lasting partnership between Industrilas and Allegis will hopefully continue for many years to come. But as with everything, there are always challenges.

“I think the most important aspect is that we genuinely care about each other which is rare in most business relationships. You usually have a good relationship but only on the surface. In this case, there is profound consideration and respect for each of the companies. And that is what keeps this engine running. Today, we can see that the next generation of Allegis’ and Industrilas’ people are building the same relationships as me, Klaus and Fredrik did back in the day. This is great to see, and is what will keep our businesses flourishing in the future”, Greg says.

A gut feeling

In the beginning of the 21st century, Industrilas grew quickly across the globe. So, to remain close to our customers and secure deliveries, we initiated a process to expand the number of production facilities. To be locally and regionally represented is beneficial in many ways, especially when it comes to sustainability. After planning strategically, the locations chosen for the new production sites were Mexico and Sri Lanka.

The North American expansion

One of Fredrik Mölzer’s childhood friends, Erik Zetterqvist, started assembling latches at Industrilas when he was young. During the early 21st century, Erik moved to Mexico to study. He ended up staying, whilst keeping Industrilas close to his heart. As Erik was working as a Supply Chain Manager at an electronics company, he discovered processes and details that were applicable on Industrilas’ production chain. He reached out to Fredrik and they started investigating the market. Industrilas partnership with Allegis Corporation was well established at this time and many of their joint customers were already moving their manufacturing to Mexico. It felt only natural that Allegis should be a part of this journey, too.

“We came up with the arrangement together with Allegis and then we just went for it. Allegis was responsible for selling and Industrilas for producing. Since I already had knowledge about the market and lived here, the start-up was smooth”, Erik says.

Immediate success

In 2006, the expansion and production facility in Mexico was ready. Erik had a small team by his side, and early on they landed an extensive project in the transportation industry. This resulted in a profit for Industrilas Americas the very first year.

“We had a real kick-start with the large project and that gave us time to find more customers and build the business. Klaus Mölzer, Industrilas founder, was a bit worried in the beginning and thought that we were moving too fast. But it turned out that Fredrik’s gut feeling was right. And looking back at everything, it was definitely the right decision to expand with a production site in North America”, Erik says.

The production facility in Mexico is a very important part of Industrilas’ business. The country produces and supplies the North American market with massive volumes. About 60% of everything that is produced locally remains in Mexico. It is delivered to international businesses operating in electronics, telecommunication, transportation and ventilation. Shortly, Industrilas Americas will have a brand new and larger factory, which will bring even larger volumes and increased sales.

The Southeast Asian expansion

As the production in Mexico commenced, Industrilas were also looking to increase the accessibility towards the Indian sub-continent and the customers in Asia. The search for a permanent base in the region began 2005 and after extensive research, the choice for expansion was set on Sri Lanka. Two years later, Industrilas begun the development of Industrilas Asia. Right of the bat, Sugath Basnayake was employed as Logistics Manager.

“At first, we renovated the facilities and started to build the brand. And while the machines were set up, we started to recruit and business took off. It was easy to find competent co-workers that wanted to work with us. And the fact that Industrilas was locally represented enabled close and straightforward communication and logistics with our customers”, Sugath explains.

Industrilas Asias’ customers are spread out across Asia and Sugath works closely with the sales team in India, where a lot of the manufactured products in Sri Lanka are distributed. One of Sugaths priorities, and challenges, is to make sure that the international logistics runs smoothly.

“It is essential that we have the components on site so we can meet the customers deadlines. And since it can be time consuming to get everything together, I have made it one of my hobbies. If I do not spend time following orders, shipments and international logistics, it can have a negative impact on the customers. And the customers always comes first”, Sugath says.

The importance of belonging

To maintain the sense of family and camaraderie has always been important for Industrilas, regardless of growth and expansion. Both Erik and Sugath agree on the benefits of implementing the Swedish, democratic culture in their respective teams.

“You can tell that our way of working is appreciated and that it is one of our strengths. Klaus vision about people coming first has enhanced with Fredrik in charge”, Erik says.

Sugath agrees and is proud to be a part of the growing Industrilas family.

“It is wonderful to work with a Swedish company and kind people for so many years. I am happy and grateful that I was given the opportunity. Being part of a well-functioning and market leading organisation is huge”, Sugath finishes off.

The financial crisis

“I usually say that if the boat is leaking, do not even think about setting sails. You have to scoop water out until you find the leak and can seal it”.

– Fredrik Mölzer, CEO Industrilas Group

Some years are more challenging than others. The financial crisis 2008–2009 originated in USA and was the worst crisis since the great depression in the 1930s. When the American bank Lehman Brothers went bankrupt in September 2008, everything really went downhill. The crisis spread and it was just a matter of time before it reached Europe, Sweden and Nässjö. The demand for goods sank rapidly, unemployment rose, asset values dropped and the industrial production stopped.

Declining demand

2008 started off well for Industrilas. Budget was set with a 10% increase and we were well on our way to reach the goal. Until the last quarter started. After the Lehman crash, Industrilas experienced something we had never experienced before: orders stopped coming in and the phones stopped ringing. Since demand decreased rapidly, priorities shifted from growth and expansion to making sure the company could survive through the storm. Industrilas Management investigated necessary actions and the decisions where tough. After almost three decades of constant growth, there was no other choice than letting some employees go due to lack of work.

“Industrilas perspective has always been that there is something to do. When we suddenly found ourselves with a low workload and had to let about 30 employees go, times were tough. I vividly remember when we had the meeting about the sad but necessary news with everyone. I knew that the information would have a negative effect on many of us. After the meeting I went to my office, closed the door and cried”, Fredrik says.

Trying measures

2009 was probably even harder than the year before. Industrilas lost a fourth of the turnover and had to let go of all thoughts about long-term development. The most important thing was to make sure that everyone had something to do.

“We visited customers, offered them discounts and started projects with painting and maintenance on every machine in the factory”, Fredrik says.

Niklas Graberg, Director of Global Sales, remembers that it was a trying time for everyone.

“It was not a fun situation, to say to least. We had never experienced anything similar and it shook us all. It was definitely the toughest period in Industrilas’ history with a lot of lessons learned. Eventually, you learn from setbacks just like you learn from success”, Niklas says.

On the other side of the crisis

Traces of the financial crisis continues to be a part of Industrilas, despite the ten years of growth and expansion. The lessons Fredrik and Management learned means that we are a bit more restricted and cautious than before.

“We have learned to be less naive and to react faster. If the same thing were to happen today, we would have acted immediately with cutting small costs that does not provide anything short-term. You should never be arrogant”, Fredrik says.

With a strong discipline, determination and a close collaboration, Industrilas managed to get back on our feet and made it out of the worst crisis in modern times.

“There is no way to think about long-term development if you are feeling unsafe in the present. They say good sailors are shaped in rough weather. And since the financial crisis, I feel like we have an incredibly competent crew”, Fredrik finishes.

Creativity as the fuel

Entrepreneurship and an interest in technology is the heart of Industrilas. Ever since 1981, creativity, curiosity and courage has put us on the map. To focus on the customers and solving their problems has always been the key to our success.

The creative spirit

Industrilas creative process consists of two areas: designing and developing standardized products, and creating customized products for specific projects. When working with a specific project, the main focus is to listen to the customers’ requirements, and solving their problems.

“We have a genuine driving force and will to create something new, and to find solutions that are better than the ones the customer had before. Our creativity peaks when a customer gives us a real challenge”, Bengt-Åke Alfredsson, Design Manager at Industrilas says.

A versatile family

Industrilas Vector™ is a ground-breaking family of products that is characterized by the power of innovation and design. The family includes three generations of T-handles, paddle latches, pull handles, a complete Rotary System, actuators, wires and rods. 25 years ago, Bengt-Åke was involved in designing the first products and did what he does best: solves the customers’ problem.

“The Vector T-handle started as a specific customer project when a company that was not happy with their current product reached out to us for help. Their product was clumsy, boring and it looked like it was made in the 1950s. Our mission was to make it more modern and we did three improvements. We enhanced the functionality, we updated the technical function by making the handle out of plastic instead of stainless steel, and finally, we updated the overall look and style with a round shape. The customer was thrilled and Vector T1 was born”, Bengt-Åke explains.

Magnus Pettersson, Designer at Industrilas, has seen the Vector family grow and believes that Industrilas is a frontrunner when it comes to innovation and functionality.

“The T-handles were constructed for diesel generators stationed outside. But today, they are used everywhere. Mostly outside on everything from tool boxes and electrical cabinets to heavy vehicles. All three versions of the latch are developed to withstand harsh environments and weather conditions. And since they pass all certifications and standards, they have become a go-to product for a wide market. To see a customer project lead to a whole family of products is really cool. It has truly been an amazing innovation”, Magnus says.

Leading solutions

Industrilas has a number of families of products that target different industries. And like Vector, Industrilas Klima-flex™ was created through several customer projects with some of the world’s leading businesses in HVAC. Klima-flex consists of several systems where the customer can choose the components that fit their needs. Today, the system is a frontrunner in the HVAC industry.

In 2005, when hurricane Katrina struck out the cellular network in many parts of America, Industrilas saw great potential to improve the solutions for telecom and electrical stations. Industrilas Vision™ was born there and then and is today a family that consist of numerous of latching systems for IT, telecom and the power distribution industry.

“We work with many projects and Vector, Klima-flex and Vision are just a few examples. Our job as designers is to change and improve the world through our solutions, one small step at a time. And we do that by diving deep into the pool of creativity and using the feedback that we get from the customers. The feedback is priceless for us to continue to develop and create even more ground-breaking products in the future”, Magnus finishes off.

Industrilas will always continue to develop new solutions and push the boundaries. Our creativity, curiosity and passion are as high today as they were at the get-go, and our motto is "unlocking the future, every day".