LaitramCompany founded on innovationcontinues to adapt to a changing worldIT ALL STARTED with a rubber shrimp boot.Laitram LLC founder J.M. Lapeyre accidentallystepped on a shrimp while working in his father’sshrimp plant. The crustacean popped out of itsshell. With more experimentation, and the rubberrollers in his mother’s washing machine, he createdthe process that would launch a company built oninnovation.Lapeyre, who received more than 190 patents duringhis lifetime, died in 1989. But the company hestarted has continued to grow.Since the founding of Laitram Machinery Inc. in1949, Laitram LLC has grown to 1,350 employeesworldwide with 2003 revenues of $176.5 million.Based in Harahan, it now has five divisions:Laitram Machinery Inc., which introduced the automaticshrimp peeler in 1949; Intralox LLC, whichsupplies modular plastic conveyor belts around theworld; Lapeyre Stair Inc., which manufactures alternatingtread stairs and conventional stairs; LaitramMachine Shop LLC, providing machining services toall company divisions and some outside customers;and Industrial Microwave Systems LLC, a NorthCarolina company Laitram acquired in September2003 that produces microwave-based heating anddrying systems for the manufacturing process.“Innovation is our lifeblood,” said Paul Horton,plant manager for Intralox. “If we don’t changewe’re dead.”The division that began it all, Laitram Machinery,The man who started it all, J.M. Lapeyre, founder of Laitram.PHOTO BY MICHAEL SUSTENDALLapeyre Stair President Elliot Mertz, at the top of a Lapeyre Stair, and Flemming Frederiksen, left, president of Laitram Machinery,with Intralox Plant Manager Paul Horton, right, of the Intralox plant in Harahan.is still manufacturing processing systems that clean,peel, devein and grade shrimp. It also manufacturessteam cookers and immersion chillers. The firstshrimp-peeling machine was designated a historicalengineering landmark by the American Society ofMechanical Engineers.“We are continuously updating and improvingexisting designs,” said Flemming Frederiksen, presidentof Laitram Machinery. “We’re trying to followthe philosophy that if the customer doesn’t makemoney, we don’t make money.”The division leases and sells its equipment toshrimp processors around the world. Initially,Laitram grew because it had protected patents for itsshrimp peelers, but those only last for so long, so itcontinued to look for new ways to grow. It is focusingnow on cooking and has a prototype in the works fora patented process that cooks shrimp at temperatureslower than 212 degrees — the industry standard.This means clients lose less soluble proteins andwater and get a better yield and a better tasting product,Frederiksen said. Laitram is eyeing SoutheastAsia markets for the process.One processor in Thailand cooks 100,000pounds of shrimp a day, he said. “So I can give him 2percent to 3 percent extra yield. At $3.50 a poundthat’s $10,000 a day for him, so that’s real money.”Laitram Machinery eventually gave birth toIntralox in 1973 because J.M. Lapeyre needed a wayto load shrimp efficiently into his peeling machines.He invented the first all-plastic modular constructionconveyor belt to replace the rusty and dangeroussteel belts then in use.Today, about half of Intralox’s business is relatedto food and beverage although it also supplies industriessuch as pharmaceuticals and automobiles. It hasassembly plants in Australia, Brazil, Japan, theNetherlands and the United Kingdom.The division has close to 1,000 molds and 90 moldingmachines that allow it a high level of automation,4A 2004 Innovator of the Year
Intralox has adapted to the demands of clients by customizing conveyor belts through investing insmaller machines that can do specialized jobs.which tailors products for the specificneeds of each client. Such variations caninclude belts for ski resorts that needultraviolet inhibitors, others that havepoints designed to grab meat and stillothers with rounded bumps that preventsliced fruit from sticking to it. It recentlycreated a new angledProduct: Manufacturer with fivedivisions that make shrimppeeling and cookingmachines, stairs and conveyorbelts — with technologymostly invented in-house.roller conveyor belt to cutdown on luggage pileupson bomb scanning Location: HarahanName: Laitram LLCmachines in airports.“We used to think CEO: Jay Lapeyrewhat was needed was toget really good at makinga few products inhigh volume,” Hortonsaid. But then the divisionfound that everyclient wanted certainvariations. This meant buying smallermachines, which required more capitalinvestment. Luckily, Laitram CEO JayLapeyre “has a critical understandingof the role innovation plays in longtermsurvival,” Horton said. This wasapparent when Lapeyre asked him tobe plant manager. As an engineer,Horton was coming from a totally differentworld view.“Engineers thrive on innovation.Manufacturing thrives on efficiencyand lack of change,” he said. “What wehad to do was get the manufacturingworld to understand we will only survivewith change. Otherwise we canonly compete on price.”At Lapeyre Stair, change is in thewind these days as well. Founded in1981, it sprang from an idea by J.M.Lapeyre. He was fishing near an offshoreoil rig and saw a worker strugglingto get down a ladder to a crewboat.His answer was to invent an alternatingtread stair — a sort of crossbetween a conventional stair and a ladder.It’s been very successful creating aniche market but growth became limited,said Elliot Mertz, president andgeneral manager. So this year the divisionembarked on a new product line— conventional stairs.The firm foundmost conventionalmetal stairs are custom-manufacturedinlocal fabricationshops. So LapeyreStair decided to applythe technology itdeveloped in manufacturingalternatetread stairs to makecustom-designed conventionalstairs.“We can make them much fasterand more accurately than local fabricationshops, and it allows us to sellthem more efficiently,” Mertz said.A local fabrication shop wouldbegin with blueprints and cuttingmetal by hand. Lapeyre created programswith information on variousbuilding codes built in so the softwarecan design stairs that meet those codesbased on the height a client needs. Thedata goes into a computer that tellsmachines to cut the metal to thosespecifications.Mertz sees the move to this newproduct line as an extension of J.M.Lapeyre’s overall vision for Laitram.“For many years the company wasstrictly a manufacturer for the inventionsof J.M. Lapeyre,” he said. “Afterhe left us, we carried on that tradition.”— Megan Kamerick2004 Innovator of the Year 5A