Steering Towards Sustainability: Richard Strauss’s Vision for Teakdecking Systems
In this insightful Q&A, we sit down with Richard Strauss, the CEO of Teakdecking Systems, to discuss his leadership journey since 2019. Strauss shares how he navigated the company through the tumultuous times of the pandemic and strategically expanded its market presence. With a keen eye on sustainability and innovation, Strauss elaborates on Teakdecking Systems’ approach to environmentally responsible sourcing and product development, highlighting the company’s efforts in promoting alternative decking materials. Join us as we delve into the intricacies of steering a leading marine decking company towards a greener and more innovative future.
Click below to access the digital brochure version
Leadership and Growth: Since joining Teakdecking Systems in 2019 and being promoted to CEO, how have you guided the company through global challenges such as the pandemic, and what strategies have you employed to grow the company’s market share?
It’s been quite a roller coaster ride! The first order of business upon my return to TDS in August of 2019 was to solidify a commercial agreement with a prominent superyacht builder in Europe. This agreement enabled us to secure two significant contracts for new 100m+ builds. Following that, we issued a letter of intent to purchase the assets of a company in Spain, which ultimately became Teakdecking Systems Europe. Of course, closing this acquisition during a global pandemic presented its challenges.
Meanwhile, back at our headquarters in Sarasota, FL, our team did an exceptional job of navigating the pandemic. Despite being forced to close our operation, our team never stopped working. Each department met daily via Teams meetings, engineering continued digitising new jobs, sales pushed forward and closed deals, and operations were in the midst of implementing a new ERP system. It all kept moving forward, thanks to the sheer grit and determination of all team members. As soon as we were allowed to reopen the factory, it was all hands on deck (no pun intended!). Meanwhile, on the sidelines, we were working hard to finalise the deal on our new operation in Spain so we could begin organising and training our team (via Teams meetings) to manufacture the decks for the two 100m+ new builds.
As for our strategy for direction and growth, we hold an annual meeting with our executive team to develop a solid strategic plan for the upcoming year. We use this as a roadmap to guide us through the year ahead. Over the years, our team has become adept at developing the plan for the following year, which helps keep us focused.
Sustainability in the Teak Industry: With the marine industry evolving and growing concerns around the sustainability of teak, how is Teakdecking Systems addressing these challenges and ensuring responsible sourcing?
To ensure responsible sourcing, TDS adheres to strict Chain of Custody standards. We only work with legally sourced plantation teak and conduct on-site inspections to confirm compliance with these standards. We have a due diligence program in place, where we conduct ISOTOPE and DNA testing to verify the origin of our wood sources. By investing in these measures, we create trust among our partners and customers, fostering transparency and accountability throughout the supply chain.
Innovation and Product Development: Could you discuss any new products Teakdecking Systems has introduced under your leadership and how they contribute to the company’s portfolio?
Given that our customers include superyacht owners, custom yacht builders, major shipyards, boatyards, battleships, cruise ships, high-volume production boat builders, and DIY small boat owners, we need to tailor our product offerings to each segment accordingly.
We introduced our own composite decking, TDS Composite, 18 months ago. This durable, low-maintenance, and highly resilient deck surface has been very well received in the US, particularly among production boat builders and small boat owners seeking maximum comfort. Additionally, we are nearing the launch of another high-performing composite decking alternative designed for the same segment.
It is important for us to provide a diverse range of maintenance products catering to our clients’ specific decking needs. Last year, we introduced our composite deck sealer, and we are currently in the process of developing a composite deck cleaner, expected to go to market by year-end. With the growing demand for eco-friendly cleaners across all markets, we recently launched our new ECO-800 deck cleaner and are working on expanding our eco-products portfolio.
Employee Development: You’re known for your hands-on approach and passion for employee development. How do you foster a culture of growth and learning within Teakdecking Systems?
In our highly skilled environment, much of our training involves hands-on guidance by our skilled craftsmen. We recruit from the local community and trade schools; however, the precision required for building our decks is not taught in a 6-month program. It takes years of training and skill development to become one of the master carpenters on our team. Our skilled craftsmen take pride in the custom decks and inlays they produce and excel at sharing their knowledge with new carpenters who have the potential to become skilled craftsmen themselves.
We have recently developed an Accredited Apprenticeship Program, approved by the State of Florida’s Department of Commerce. Upon completion, participants receive a Nationally Accredited Apprenticeship Certification and credits towards an Associate’s degree in Manufacturing Engineering Technology.
We also offer a scholarship program for our employees and their children to pursue higher education goals. Since 2010, the Ann and Lars Lewander Scholarship Foundation has awarded approximately 100 scholarships totaling $500,000. Our program has enabled participants to earn various levels of certifications and degrees, from trade school to Master’s programs. Many of these graduates remain in our area and contribute to our local community.
Recently, I joined a newly formed committee committed to advancing the field of manufacturing by maintaining rigorous educational certification standards that align with industry best practices. Our purpose is to provide learners with recognized credentials that validate their expertise, promote professional growth, and meet the evolving needs of the industry. We aim to achieve this by working with local trade and technical schools to ensure curricula align with manufacturers’ needs.
European Expansion: The acquisition of Teak Solutions SL of Barcelona was a significant step for Teakdecking Systems. How has this expanded your presence in Europe and impacted the company’s operations?
The acquisition marked a major milestone for us. Our decision was driven by inquiries from our customers seeking recommendations for European decking companies. This strategic move has drastically improved our global service capabilities and has nearly doubled our production capacity. Ultimately, this translates to tangible benefits for our customers.
Many of our projects involve collaboration, where a deck may be digitised and engineered in the US, manufactured at our factory in Valencia, Spain, and installed by either our American or Spanish team, depending on the boat’s location. This collaborative approach ensures optimal efficiency and customer satisfaction.
Alternative Teak Sources and Materials: With the industry moving towards more sustainable practices, what alternatives to traditional Burmese teak are Teakdecking Systems exploring or using?
A decade ago, we recognized that the supply of 100-year-old Burmese teak was unsustainable. Over the past decade, we have been actively pursuing and testing the viability of alternative materials.
We work only with legally sourced plantation teak, aged between 20-25 years or 40-50 years, as well as thermally modified wood. We are currently building a new deck for a 100+m new build using plantation Green Teak from Thailand. This 35-year-old laminated teak, sliced into veneers and glued together, is both aesthetically pleasing and offers excellent durability. Cork is another sustainable product making a comeback as a viable alternative to traditional teak.
As pioneers in the decking industry, we were among the first to work with composite decks, and we are the distributors for Esthec and Herculan. While composite is still gaining traction within the superyacht industry, it has already become very popular for production and commercial boats. For superyachts not wanting to go down the composite route, we recommend its use in high-traffic areas, such as tender garages or other areas with high footfall.
Client Education and Industry Shifts: How are you working to educate clients and the industry about sustainable alternatives to teak and the importance of diverse material choices in yacht design?
The superyacht industry is undeniably at a tipping point concerning sustainability. Speaking candidly, this presents one of our most significant challenges. Much of the industry still holds the belief that viable teak for decking must be 100 years old. However, we have effectively debunked this myth. Despite this, we continue to face challenges in ensuring that intermediaries between us and the end customer are well-informed, enabling owners to make informed decisions.
We have had the privilege of participating in numerous panel discussions on deck alternatives at major yachting events, providing us with a platform to engage a broad audience. We have also contributed to various articles addressing teak and its alternatives in leading industry publications. Despite these efforts, there remains a considerable amount of work to be done.
Sustainable Practices: What initiatives has Teakdecking Systems implemented to reduce its environmental impact and promote sustainability within the industry?
I’m really proud to say that last year, we became a corporate partner of the Water Revolution Foundation. Currently, we’re working closely with them to assess and verify our level of sustainability, so they can provide us with feedback on how to improve it.
Another significant step we’ve taken is initiating the process of obtaining FSC certification for our factory in Valencia, Spain. Upon receiving this certification, we will proceed to start the certification process for our Sarasota factory.
Adapting to Market Trends: Considering the dynamic nature of the marine decking industry, how does Teakdecking Systems stay ahead of market trends and consumer preferences, particularly in the realm of sustainable and innovative decking solutions?
I think, at the end of the day, it boils down to truly tuning into the pulse of the industry and the global landscape. We explore every available opportunity in the market and have consistently trialed new products, including variations of composite decking, even amidst widespread scepticism. We are willing to invest time in thorough testing over an extended period to ensure that a product meets our rigorous standards of excellence before fully endorsing it. This commitment obviously takes time, but it’s precisely what has earned us our reputation for excellence within the market.
Future Vision for Teakdecking Systems: Looking forward, what is your vision for the future of Teakdecking Systems, particularly in terms of sustainability, innovation, and market expansion?
As my daughter aptly puts it, “adapt or die,” and I wholeheartedly agree with her sentiment! This mindset forms one of our core values, ingrained in the culture of TDS since 1983. We were the original inventors of pre-manufactured decking for vessels, a groundbreaking system that radically reduced installation time and cost.
Despite the changing perceptions of teak, many yachts worldwide will continue to demand it. Given that teak is grown all over the world, it falls upon us to source the most sustainable and legally grown teak available. Alongside other viable options such as high-quality modified woods, cork, and composites, it is our goal to be the trusted supplier of high-quality options. Subsequently, it is our duty and mission to educate our clients and customers about the advantages and disadvantages of each option in relation to their specific projects.
As for innovations, we continue to listen to our customers’ needs and concerns, which allows us to actively work on developing solutions. This approach has driven the development of several of our products in the past, as well as a new deck option soon to be released.
Market share and growth will come more organically. We’re not pursuing “world domination” but rather striving to offer an exceptional value proposition and service to our customers by building and installing the best decks, exceeding their expectations.
One of our decks, if well maintained, should last 20-25 years. While this may seem counterintuitive for business, we will always opt to repair a deck to extend its lifespan rather than building a new one. Creating a reputation of trust and quality craftsmanship drives word-of-mouth referrals, which are the highest form of praise for an employee-owned company. This is what drives us as a company and underscores our commitment to excellence in every deck we undertake.
