News

Who's who: Gordon Short

The CEO of Metalfx is using his manufacturing background to help build his company into a top kiosk enclosure vendor.

October 16, 2004

Gordon Short, president and chief executive officer of Metalfx, is a student of economics. He studies different markets, plots their growth and watches how they unfold. That is why he has always seen the big picture for his own company.

Short has been the leader of 155-employee Metalfx for more than three years. He said the challenge of his position is prioritizing the many jobs that his company takes on at a given time. His role, he explained, is to set the company's direction; establish a strong, consistent culture; and recruit, develop and retain an excellent team.

Metalfx, a wholly owned subsidiary of Avista Power of Washington State, manufactures products for a number of different markets, including arcade games, radiant floor heating, stamping components and kiosks. In a month's time, the company can produce 600 to 700 arcade games.

"Metalfx has traditionally been a supplier of enclosures and electro-mechanical assemblies to hi-tech companies in the Silicon Valley, and a manufacturer of arcade games. But we intend to utilize our vast experience in these areas as an outstanding suppliers of kiosk solutions," said Short.

Key to Metalfx's strength, Short said, is its range of internal manufacturing capabilities with materials from metal to wood. "We have full integration in-house. We do everything from welding to powder coat and wet coat internally."

He said the fact that Metalfx does not have to outsource anything sets it apart from other manufacturers in the kiosk industry. "We can offer a shorter lead time, which provides advantages from a cost standpoint. Our one-stop-shop improves quality, too."

Metalfx has a design team that can help customers realize their kiosk expectations. "Most customers need us to help them with the designs of their kiosks. We actually work off of napkin drawings sometimes," Short said.

"We can design something that meets a customer's needs and cost expectations, or we can offer a standard design. We can also design around a customer's peripherals, say, if they have their own PC."

Gordon Short, CEO, Metalfx

Auto pilot

Metalfx actually recruited Short away from a 20-plus-year career in the automotive supply industry.

He worked at General Motors for 10 years in the component division that today is called Delphi. His last position was senior administrator for materials management and quality in the strategic business unit. Then, for another 10 years, he ran a group of Japanese companies that supplied parts to auto manufacturers. Then he served as chief operating officer of a privately owned manufacturing company for two years.

I brought a broad range of manufacturing capabilities to Metalfx. They needed some sophisticated management," Short said.

"I also brought the background in running Japanese companies. In the early `90s, the Japanese manufacturing plants and systems were the best in the world. The United States has greatly closed that gap."

Short speaks some Japanese, and has been to the county about 35 times, he estimated. He has also visited Korea, Thailand and Hong Kong.

Now, he is happy doing largely regional work in the United States. "I don't miss the traveling," he said. "It can take its toll."

When he arrived at Metalfx, he thought the company was too narrowly focused on high tech and arcade games.

"Our focus is strong in the kiosk industry. The market is yet to explode. For instance, most hotels don't have self-checkout. Five years from now all hotels will have it. I think about HR applications, concierge services, retail kiosks in the malls. The possibilities are endless. We are at the front end of the curve."

Pros and cons

Really studying the kiosk industry, though, has shown Short that there are some weaknesses. "Right now it is fragmented and immature. If you look at a mature industry like automotives, you can see a clear supply chain, consumers know where to make a purchase, they know the brands. No one in kiosks has a full solution."

He said over the next 10 to 12 years, there will be a similar transformation in the kiosk market. Short expects to see consolidation in the industry. "I think we will become vertically integrated. You might see a company that buys up all the pieces."

And what about Metalfx? "We have a number of alliances, especially with some software companies. That will become more important as this sector unfolds."

In the meantime, Short is an advocate of the kiosk industry. The way he sells other businesses on the idea of self-service is by telling them about ROI.

"The reason to get kiosks is reducing costs. Look at how the airlines have reduced the number of employees they need using kiosks. Technology has improved their productivity. There is certainly an aura about the high-tech sector." And Short would know. He has studied it.