Articles
How generational leadership and 140 CNCs power Cox Manufacturing
Manufacturing is rich with generational stories, no more so than in Houston, where we’ve reported on standouts like Minco and invited generational leaders like Nubia Perez of Gretna Machine to help guide the GHMA.
Generations also sustain San Antonio standout and GHMA member-company Cox Manufacturing.
CEO Bill Cox is the third family member to lead the company – his mother Lillian guided operations when William Cox Sr., who founded Cox Manufacturing in the 1950’s, passed away. Today, Bill is passing the torch to his son William after years of sustained success.
So much so that today, Cox’s sprawling factory in north San Antonio is too small. “We've crammed more machines in here,” Cox laughs. “We're up to 134 primary machines now. And we're running three shifts, six and a half days a week. My son is really pushing to figure out how to squeeze even more utilization out of it. Honestly, it's the skilled techs as much as anything. Extra space, extra machines does make it easier to do things. But we need more (skilled techs),” he says. Cox has been investing in “later technology, multi-spindle CAM machines, built in Switzerland – with six more coming in.” Along with more room: Construction bids for a comprehensive building expansion were due the day we spoke.
But if generational leadership is common to Gulf operators, so too is an inevitable reckoning with oil and gas. “In 1982, half my workforce had nothing to do,” Cox told me in a 2022 interview. “It was a pretty hard lesson at a young age not to be reliant on one customer, or — even worse — the oil industry.”
I asked Cox about the company’s industry mix today. “Yes, it’s a good healthy mix. We do medical device work, some electronics work. The electrical-connector sector is strong. We’re also involved with data centers. So aerospace, electronic connectors, and data-center cooling systems, those are ones that are really strong for us today,” Cox says.
“There are other opportunities out there,” he continues, “because frankly in our industry there's a lot of peers that have been operated by baby boomers that maybe don't have a succession plan, or maybe they get acquired by private equity that messes them up. So we've picked up more than one customer where they had a long-term supplier they were happy with, but have grown unhappy. My son just completed a ‘net promoter’ score (a measure of customer satisfaction). You're probably familiar with these: 21 customers, and our net promoter score was 95. Something as basic as taking care of customers has always been a high priority — and today it’s still the best way we gain grand,” Cox says.
I come back to Cox’s new equipment – or as Cox corrects me, its “refurbished machines. It's kind of ironic. They have a CNC control on them. When we're importing them, there was a debate whether we should call them CNCs or not. They have a CNC control, but it just controls the camshaft and the spindle speed. But they're very high speed, very precise. Making parts in two seconds is not unusual on those, for very high volume jobs,” he explains.
Cox’s investments are opening new doors. “We're using those machines for some older, legacy work, so to speak – for example they’re great with automotive. But there's also components related to fiber-optic connectors, driven by the data centers. And there’s defense work that's very high volume that (the machines) are right for,” he says. “Any time we can invest in a platform that serves multiple markets, that's where we get a green light. We’re also phasing out some of our older machines in markets we're transitioning away from,” Cox adds.
Every manufacturer is on a technology journey of their own; they’re in transition, of sorts. I ask more about Cox’s current path. “Well, we've always been a company that poured energy into our technology side. We actually have a patent on some of our software,” he says. “Our big priority this quarter, though, is replacing our old ERP system, parts of which are homegrown, something we had done a couple of decades ago. We did a broad assessment of options out there and we landed on Global Shop Solutions out of Houston. We’re plugging in their software and integrating our proprietary piece — something that will also position us to get CMMC level two compliant, which is a high priority for us for the defense market.”
More opportunity – in a sandbox that for Cox, is already global in scope. “I'm optimistic with everything going on in South Texas, in Central Texas: tech coming out of Boston, some big companies moving into the San Antonio area, Toyota is expanding, Caterpillar. But we still ship most of our stuff outside of Texas. We ship to California, every week. We ship back East as well. We ship into Connecticut. And we have a good customer in Ireland,” Cox says with a smile.
Two things seem especially satisfying to Bill Cox as he manages a succession plan and contemplates the future. Five years ago, he and I agreed a US manufacturing comeback still hung in the balance. That’s changed. “It’s definitely refreshing to contrast that to my whole career where everyone was scrambling to chase low-cost Asian prices. I fought that — and the erosion of American manufacturing,” he says. “Now people are committed to make it here and they're biased to getting their components, their supply chain, to be regional, to be US-based, and it's refreshing.”
Yet nothing beats watching young people rise to the occasion. “My oldest son joined the business a little over six years ago. And he's really surprised me at how much he's learned about business and about our manufacturing operations. Long story short, I named him president in March,” Cox says. “He's stepped into the chief operating officer role, too, with key functions reporting to him. We've been struggling where sales would go up a few percentage points every year, making money but not setting any records. William has put a lot of energy and strategy behind it — and sales are up 18% and profits more than double. Just doing a lot of the right things,” he says proudly.
“My youngest son also joined the business full time this last year. And he, you know, since the time he was just a little kid, he said he was going to join the business. And, you know, going back to science fair projects that he did when he was in elementary school, he was doing things related to manufacturing. And so it's a delight to have him on the team. Over the years, he's worked in different departments. And, now the two brothers work very closely together — the youngest does estimating and is always looking at new projects, then ways to save money on old projects.”
William Cox Sr. would be proud of what his family has accomplished. Texas manufacturing certainly is.
Bart Taylor is president of the Greater Houston Manufacturing Association. Reach him at [email protected].
