FARO Technologies
FARO Technologies, Inc. (NASDAQ: FARO), is based in Lake Mary, Florida.
FARO designs and develops portable, computerized measurement devices and software used to create digital models – or to perform evaluations against an existing model – for anything requiring highly detailed 3-D measurements, including part and assembly inspection, factory planning and asset documentation, as well as specialized applications ranging from surveying, recreating accident sites and crime scenes to digitally preserving historical sites.
FARO’s technology increases productivity by dramatically reducing the amount of on-site measuring time, and the various industry-specific software packages enable users to process and present their results quickly and more effectively.
Company History
For more than 25 years, FARO Technologies, Inc. has been a company driven by a dynamic relationship between the creators and users of measurement technologies. By deeply understanding the ways in which customers are using measurement technologies, a collaborative dynamic is created that has helped new innovations and applications to come from the field, as well as the lab. This spirit of collaboration has helped make FARO an industry pioneer and the leader in the field of Computer-Aided Measurement (CAM).
FARO had its start in a friendship between two self-proclaimed “techno-junkies” working on their PhDs in biomedical engineering at McGill University in Montreal. Simon Raab and Greg Fraser founded Res-Tech on February 21, 1981, the name was changed to FARO two years later when they began developing technology and software to support advanced surgical and diagnostic methods. They introduced their first articulated-arm measurement technology in 1984, with additional models following in 1986 and 1988.
In the beginning, Raab and Fraser spent much of their time on the road at trade shows or in hospitals demonstrating their inventions. This close interaction between the creators and the end users of the technology helped drive the innovations of later models and was maintained even as the company grew. Topping the list of their proudest accomplishments during this period were several patents they secured – and have since licensed to Medtronic – for equipment that is fast becoming the standard in neurosurgery.
A Fork in the Road
In 1990, FARO made a move from Montreal to Florida to be closer to their customers. At the same time, the medical technology field was changing. As hospitals shifted away from their previous emphasis on competitive technologies, the founders began to see similarities between 3-D medical imaging/computer-aided surgery and the CAD-to-part work going in manufacturing.
While measurement machines were available, manufacturers had to keep them in separate metrology labs, protected from the very environment they were needed in. FARO already had measurement arms that were being used in operating rooms and doctor’s offices, so in 1991 they began understanding and transitioning to this new market. By 1994, the transition was complete.
“As late as 1994, there was virtually no technology in the manufacturing industry that could easily measure in three dimensions during the production process,” Simon Raab said. “On the hardware side, a solution was needed that could withstand difficult measurement environments. On the software side, a solution was needed that was intuitive enough for assemblers and machinists with little computer experience to use.”
Raab and Fraser continued growing the company in this new industry and expanded to Europe in 1996. The following year an IPO was prepared and the FARO went public on September 17, 1997 trading on the NASDAQ under the same symbol as the company name. FARO’s growth continued with the 1998 acquisition of CATS, a software company whose addition helped refine FARO’s AnthroCAM software – the predecessor to its popular CAM2 Measure programs available today.
The strategic intent behind the merger and acquisition allowed each company to continue to concentrate on its strength: FARO, with the development of the Arm; while CATS brought depth to the software development side. By pairing portable and durable articulated arms with easy-to-use software, the ability to compare measurements to CAD data became available to new groups of users. With these innovations, FARO essentially created a whole new industry of next-generation portable CMMs and led the trend towards CAD-based Total Quality Management.
In 2000, FARO opened offices in Japan, allowing them to better serve the Asian market. This was an important step in FARO’s commitment to global expansion.
No Limits
2002 saw the introduction of new products, including the Platinum FaroArm and the FARO Gage. The Platinum raised the bar on precision with an unprecedented 0.0005” accuracy, while simultaneously offering superior durability and a much lighter construction than standard portable CMMs. The FARO Gage, with its intuitive interface and ease of use, empowered users with little or no previous metrology experience to accurately qualify parts directly on the machinery that produces them. It rendered traditional CMMs, calipers and other hand-held measurement tools obsolete.
Raab compared this revolution in metrology-tool accessibility to the rapid changes that took place in the computer industry with the introduction of graphical user interface (GUI) and the resulting shift from bulky mainframes to the more user-friendly and accessible PC.
The FaroArm and FARO Gage provided ideal solutions with a zero to 12-foot working volume. In order to truly meet the needs of its growing customer base, FARO acquired Spatial Metrix (SMX), which had built a reliable reputation in the laser measurement technology. The FARO Laser Tracker offers a 230-foot range, .001” 3-D point accuracy and a host of features not found on any other system. Customers now had a superior choice for the high-speed, accurate measurement of large parts and spaces. After 20 years, FARO not only had the best-selling portable measurement arm – it also had the best-selling laser tracker system in the world.
FARO’s approach with acquisitions has been to concentrate on the strategic intent behind the acquisition and to provide the support functions required in being part of a larger company, but to allow each entity to do what it does best. Throughout this growth, the founders realized the importance of maintaining the relationships that helped make FARO so successful from the start. They instilled an entrepreneurial spirit into the corporate culture that continues to thrive.
“FARO has had a long history of empowering its employees, vendors, and third-party development partners in order to help us achieve our goals,” Fraser explained.
Broader Horizons
In 2005, FARO made a wide shift in technological capabilities with the acquisition of a small German company, iQvolution AG, started by a pair of entrepreneurial brothers. As a company involved in Laser Scanning technology, iQvolution radically expanded FARO’s potential markets and applications for measurement. Suddenly there were new client markets in such diverse industries as Mining, Geology, Heritage, Architecture, Petrochemical and Forensics.
As part of its strategic direction, FARO made a commitment to its ever-growing base of customers to provide service and product certification with a local flavor and hands-on where possible. In 2005, FARO officially named Singapore as its Asia Pac regional headquarters and anchored its goal to achieve a more global presence.
Today FARO is a $150+ million company with tens of thousands of customers and installations globally, including Boeing, DaimlerChrysler, Airbus, General Motors, Johnson Controls, Caterpillar, and Honda. While FARO counts major blue-chip companies among their client base, up to 75 percent of FARO’s customers are small to medium-sized companies.
With offices throughout the US, Europe and Asia, FARO is poised to continue to be a leader in the fields of metrology and measurement, but it remembers that it was founded on the dreams of its founders who were passionate about delving into how to take the technology to the next level in meeting the needs of customers. That focus on the customers and what they need to accomplish, and how they see using the equipment continues to guide FARO’s growth, strategies and goals even today.
External Links • http://www.faro.com - FARO Technologies, Inc. home page
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