Corrections or additions?

These articles were prepared for the May 30, 2001 edition of U.S.

1 Newspaper. All rights reserved.

The Norlands Retool the Family Business

Robert and Evelyn Norland have five sons. In 1960 when

Robert was 41, he left Johnson & Johnson to start his own business,

Norland Products, on the proverbial shoestring. Evelyn hired some

household help so she could do the paper work from an office in their

Cranbury home, and Robert did the traveling and selling. The business

was an unusual one: Making industrial-use gelatins from codfish skins.

The longevity of the business is also unusual. Reams have been written

about how difficult it is for family businesses to survive into the

next generation. The odds against it are three to one, but the

Norlands

represent a textbook case of how to manage a business on both a

business

and personal level. Three of the five sons came into the business,

and after their father retired eight years ago, they are doing what

many families only dream about — taking a mom and pop family

business into the second generation.

Norland Products recently doubled its space in New Brunswick with

a move to 15,000 feet at the Cranbury Corporate Campus. Half of the

28 people here work in production, most in fiber optics, and the

company has 60 employees working seven days a week, 24-hours a day, in

Nova Scotia at the Kenney and Ross plant in Nova Scotia. Of 10

companies worldwide that were making fish gelatin in 1960, Norland

Products is the only survivor. Its success is due to retaining common

values and moving into innovative areas — keeping the

"old" products like the fish gelatin but also going into new

technology areas, like fiber optics devices.

"We are always looking for new markets," says Richard Norland,

the second son and oldest of the three brothers involved. "That’s

the difference between us and the companies that went out of

business."

"We have admiration for each other’s talents. Each of us have

our own areas of expertise," says Eric, the middle brother.

"We don’t have any hidden agendas," says Tim, the youngest

of the three. "We fit well together in terms of work habits and

values."

"We have had a lot of offers to buy the business," says father

Robert, "and we say we are having too much fun. It was a very

wonderful experience, and to have three sons come into it adds so

much."

First, the business story. Robert E. Norland grew up in Seattle, the

son of a Norwegian immigrant who worked as a streetcar conductor,

and he earned a chemical engineering degree from the University of

Washington in Seattle. For the Permacel division of Johnson & Johnson

he helped Canadian manufacturing plants turn codfish skins into

gelatin and glue. When synthetic adhesives were developed, the bottom

dropped

out of those markets, but Norland bought the technology and the client

list from J&J and went off on his own.

In 1966 the Norlands bought a manufacturing company, Kenney and Ross,

and built a new efficient plant. It is now the major employer in a

depressed area of Nova Scotia, where the fishing industry has

dwindled,

and the fish fillet processors must get salt water fish from the

northeastern

coast of the USA and Iceland. Norland buys their waste skins.

Over the years the Norlands turned the industrial quality gelatin

to new uses geared to fish skins’ unusual qualities. In comparison

to gelatin made from cattle skin or bones or pigskin, the skin of

cold water fish is liquid at room temperature and easy to work with.

Fish gelatin has been used by printers (for photo engraving on metal

plates) and electronics manufacturers (for color television tubes).

Now it is used by food and pharmaceutical companies for

microencapsulating

vitamins used in such products as breakfast cereals. From fish gelatin

the company segued to synthetic adhesives supplied to lens

manufacturers

and fiber optics companies. Though the printing and television markets

dwindled, the Norlands dominate healthy niche markets in the other

areas.

These markets may be worth only $10 or $20 million, but that’s plenty

for a small firm. "There is plenty of business out there for

certain

products if you don’t worry about having hundreds of millions of

sales,"

says Eric Norland. "Any product that we work on needs to be unique

and needs to be in markets where larger companies will not compete.

It will not be the largest volume product, but we will make it the

best in the industry."

Three products offer significant opportunities that each brother can

be involved in yet work together. There is crossover between the

divisions,

with help requested and given for each of the areas.

1. Kosher fish gelatin. High Tack Fish Glue, the technical

grade of glue, was the original product and is still sold for such

purposes as fine furniture manufacture and leather finishing. A quart

is $10, and it also comes in gallons, five gallon pails, and drums.

In 1988 Norland entered the pharmaceutical market, selling kosher

gelatin to such customers as Hoffman LaRoche for microencapsulating

vitamins. The gel meets both kosher and pharmaceutical specifications

— no odor, no taste, and very high quality. Until recently Norland

had this market to itself, but now animal gel manufacturers are

beginning

to work with fish skins also. "While it’s competition, they make

a little bit different gelatin than we do, and it increases the

awareness

of fish gelatin," says Richard.

Because cold water fish gelatin remains a liquid at room temperature,

the company developed its own special dryer-oven to dry the gelatin

in a pure form for its pharmaceutical clients.

2. Ultraviolet adhesives. In the 1970s Norlind marketed

a line of ultraviolet-curing synthetic adhesives designed for optical

lenses. These adhesives are made in small custom lots and are

appropriate

for cameras and military optical uses.

In contrast to epoxy glues, which have to be mixed and require the

lenses to be clamped together overnight, these synthetic glues can

bond glass surfaces in a matter of seconds by using an ultraviolet

light source as the catalyst or curing agent. Just apply the adhesive,

work it out to the edges, taking as much time as you need, then cure

it quickly with an ultraviolet light. "Our material is probably

in every optical shop across the country and overseas," says

Robert.

3. Fiber optic devices. Fiber optics began to be installed

in telephone lines in the 1970s but in the 1980s came the big push

to replace copper with fiber. A 1980 request for adhesive for a fiber

optic splice turned into a new Norland product, a $1,200 fiber optic

splicing kit for emergency repairs by telephone companies or

contractors.

But a really good non-emergency splice requires a special microscope

to line up the cleaved (flat end) fiber. That led to a high-end

product,

the Norland CentRoc Model 980, which uses optics and electronics and

a computer to make measurements up to submicron accuracy. Norland

has made and sold 50 of these $20,000 devices.

Also brand new are the NC 3005 interferometers, $40,000 microscopes

used for quality control and are sold to manufacturers of fiber optic

connectors.

Now for the brothers’ story. None of the participating brothers

grew up expecting to join the business. Tom Kaplan, faculty advisor

to the Family Business Forum at Fairleigh Dickinson, points out that

successor generations work well when everyone is there because they

want to be there.

"My wife and I always told the boys, don’t think we made this

business for you. Go to work for somebody else first, and then

come,"

says father Robert. "But I can get very excited about traveling

around and talking to people, and I get the feeling that I conveyed

the excitement to my sons." The oldest son, Robert E. Jr., works

for AT&T, and David, the youngest, for a chemical processing plant

in Pennsylvania.

Richard, 54, is a graduate of the New Jersey Institute of Technology.

He worked as an engineer for the telephone company and had a sales

job before joining the family firm in 1974. He is vice president in

charge of sales and is also president of the processing company in

Nova Scotia. Following in his father’s footsteps, he spends one week

of every month in Canada.

"Richard always seemed to be the friendly, outgoing one. We

thought

for sure he would make a fantastic salesman. He is very empathetic,

likes people, and looks for ways to make them comfortable," says

Eric. "The way he manages people is the same way."

Eric was a chemical engineer at the Illinois Institute

of Technology, Class of 1971. He intended to go into the business

eventually, but ended up joining the company right away because in

1971 the job market for engineers was in a slump. He held the job

of vice president for two decades and took over as president when

his father retired eight years ago. He is "kind of quiet, the

thinker, very creative."

Tim, the general manager, went to Central College in Iowa, Class of

1976 and has an MBA from the University of Massachusetts in Boston.

He had been a manager for the Christian Science Monitor and joined

the firm in 1993, when his father retired. In addition to being in

charge of operations, he is also works with the ultraviolet adhesives.

Eric describes him as "an action kind of guy, he gets things done,

makes sure that everything happens day to day."

"Until Tim joined us, we were operating by the seat of the pants

on budgeting and money," says Eric. "Neither Richard nor I

had a great deal of business experience. As we were growing we needed

some help in this area."

Anybody with more than one child knows that sibling rivalry is not

an abstract concept. Yet the Norlands seem to be in harmony with

themselves

and their work.

They regard the business as a long term venture. "We

are not looking to make a quick profit and leave but plan on taking

this for the long term," says Tim, who points out that the five

brothers have seven children between them.

Aside from necessary promotion of current products, the brothers give

priority to R&D funds for future products. Such strategic planning

is one of the main factors in family business success, according to

Craig Aronoff of the Cox Family Enterprise Center in Georgia. The

Norlands were able to plan for older products providing cash income

while R&D continued in new areas. "We’re very fortunate that we

do have ongoing business that allows us to sell present products and

as we see new and important requirements out there we can do those

as well," says Eric.

They communicate informally with meetings scheduled on

the fly. This counters most consulting advice, which leans heavily

to formal mission statements and regular meetings. But these men have

been operating on the same set of values for decades and they can

depend on each other. Only family members — no spouses — are

on the board. "It’s hard enough as it is to run the business as

it is," says Tim.

"With brothers," says Richard, "you trust them and

understand

their motivation. You don’t have a question mark in the back of your

mind as to whether their interests are the same or not. You are not

always worried."

They share the same work ethic: patience, perseverance,

and lots of effort. They also all take home about the same amount

in salary. "We are all working hard," says Richard. "Even

though Tim has been here only eight years, and Eric and I have been

here almost 30 years, we think he is making a great contribution."

He declines to provide profit figures but notes that the business

is successful enough that none of the brothers is worried about paying

their children’s college tuition.

They are committed to staying ahead of the market. "We

look for products that are not going to be used in an industry at

that point in time, but we know down the road they will be," says

Eric. "It gives us time to perfect them, but time to get into

the industry." For instance, the company is now firmly ensconced

in certain kinds of fiber optic devices, but it has been working on

this instrumentation since the late 1980s and early ’90s.

Perhaps most important, these men grew up in a family where

independence was valued and cooperation required, where Fresh Air

Fund children enlivened the home in the summers and the Norland yard

hosted neighborhood children year round.

The family moved out of New Brunswick when the older boys started

to aggravate neighbors by climbing on the roofs of garages. Their

mother decided that they needed a yard with trees to climb. "It

took us three years to find this house in Cranbury, but we had trees

with branches that were in steps," says Evelyn Norland. "When

a new child was in the neighborhood, I went out and stayed with them

so they saw how they could climb, so I never worried that they were

safe. We had a pony, that first summer, and Bob took every kid that

came into the back yard for a ride, so the children got to know that

the Norlands’ house was a nice place to go. As the children grew,

baseball games were in our back yard. I fixed up many a split lip

and hit head."

A self-described "permissive mother," she tells of how she

once found the boys and their friends smoking in the hay-filled barn.

"Instead of sending everybody home, I told them to come into the

house with me and gave them some matches, and told them to go ahead

and smoke because it isn’t dangerous in here. Within five minutes,

they all left. It wasn’t any fun any more."

The Norland boys had to work out their own differences. Richard

remembers

his mother telling them, when they got into fist fights, "Go

ahead,

kill yourselves, see if I care."

Though that threat might seem harsh, to consultant Kaplan, it fostered

responsibility. "It shows how much she cared about her

children,"

says Kaplan. "In family businesses, we see a lot of problems with

triangles. But she taught the boys not to come to a third `power’

person with their problems, to treat each other with respect and learn

how to interact productively. When you force kids to solve their own

problems, it helps them solve bigger problems later in life."

"Isn’t it wonderful," Evelyn says to her husband, "that

you could start a business that could support three families."

— Barbara Figge Fox

Norland Products, 2540 Route 130, Building 100,

Cranbury 08512. Timothy C. Norland, general manager. 609-395-1966;

fax, 609-395-9006. Home page: www.norlandproducts.com.


Next Story


Corrections or additions?


This page is published by PrincetonInfo.com

— the web site for U.S. 1 Newspaper in Princeton, New Jersey.

Facebook Comments