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Manufacturing Today - January February 2015
Manufacturing Today - January February 2015
Manufacturing Today - January February 2015
JANUARY/FEBRUARY 2015
DIALOGUE WITH | STACI DAVIDSON
WWW.MANUFACTURING-TODAY.COM
EDITORIAL DIRECTOR
John Krukowski
john.krukowski@phoenixmediacorp.com
MANAGING EDITOR
Staci Davidson
SPECIAL PROJECTS EDITOR
Chris Petersen
SENIOR EDITORS
Alan Dorich, Russ Gager,
Jim Harris, Jamie Morgan
ASSOCIATE EDITORS
Optimism Abounds
Jeff Borgardt, Janice Hoppe
CONTRIBUTING WRITERS
Lynn L. Bergeson, Angela Forsyth,
David Schnitt, Larry Stolle
ART DIRECTOR
Erin Hein
GRAPHIC DESIGNERS It’s great to start off a new year on a high
Megan Green, Jonathan Lyzun, Vida Soriano note, but even better when you know things
PRODUCTION COORDINATOR
Travis Garth will continue to improve even more. It
seems as if many manufacturers feel the
SENIOR VICE PRESIDENT
Jason Quan same way, because there is so much opti-
EDITORIAL RESEARCH MANAGER mism in the industry right now.
James Fuller
The year begins with the 2015 AHR Show
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PROJECT COORDINATORS
Dan Johnson, David Lankin (page 32), which focuses on all the new ad-
Duncan McGougan, Claudia E. Montaño
Gino Piniero, Dan Wiggins vances in the HVACR industry, and takes B UY AMERICAN
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place in Chicago from Jan. 26 to 28. Accord-
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VICE PRESIDENT OF SALES
Steve Campagna ing to a recent ASHRAE Journal and AHR
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Expo survey among HVACR manufactur-
DIRECTOR OF WEB AND REPRINT SALES
Dash Blankenship ers worldwide, 87 percent of respondents
dash.blankenship@phoenixmediacorp.com said their prospects for business were ei-
ther “excellent” or “good” for the coming
year. Additionally, more than 70 percent of But it isn’t just the HVACR manufactur-
exhibitors reported that they plan to intro- ers that are looking forward to what this
duce new products and technologies at this year will bring. The aerospace sector is go-
year’s show. ing so strong – especially with the delivery
“As the world’s largest HVACR exposi- of A320s, 787s, A350s and 737s – that Zodiac
tion, there are always thousands of new Aerospace (page 16) is increasing its own
product introductions and innovative solu- output and improving efficiency to better
tions debuting at the AHR Expo,” says Clay meet customers’ demands. We also high-
Stevens, president of the International light many other manufacturers that are
Exposition Company, which produces and optimistic about 2015 and the growth that
manages the AHR Expo. “It appears that will come from an improved economy.
the upcoming Chicago show may set a new We’d love to hear from you – what are you
standard for product introductions.” most excited about your business this year?
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@MANUFACTUREMAG
MANAGING EDITOR
staci.davidson@phoenixmediacorp.com
Manufacturing Today is published bimonthly by Phoenix Media Corporation, 79 West Monroe, Suite 400, Chicago, IL, 60603. Periodical Postage Paid in Chicago,
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Columns >
Washington
On the environmental front, TSCA reform
is the only viable contender for serious leg-
islative attention in the new year, and even
this is by no means a given. Page 8
Management
There are three ways manufacturers can
leverage data more effectively. Page 12
Technology
>
New technology solutions are critical for
attracting younger workers and sustaining
innovation in the manufacturing industry.
Page 14
Midwest
Central Michigan University gets a big nod
from Ford Motor Co. Page 60
International
A new partnership between two Canadian
firms will enable the conversion of munic-
ipal and other waste feedstocks into chem-
cials. Page 88
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South
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The manufacturing industry knows it can
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benefit from veterans’ skills from the mili-
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88.
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tary, and hiring events aim to get job seek-
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ers and employers together. Page 108
Northeast
The National Institute for Metalworking
Skills is helping workers improve their
skills. Page 126
West
The construction of the first high-speed
rail system in the United States is not only
historic, but also important for its use of
highly advanced, low-emissions equip-
ment. Page 138
138.
< profiles
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24. 29.
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34.
16. Zodiac Aerospace
Zodiac Aerospace is demonstrating its
advanced composites and engineered ma-
terials’ suitability for even more aircraft
components.
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58. ClimateCraft Inc. 82. Denray Machine Inc.
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ClimateCraft Inc. delivers customized air-handling solutions Denray Machine helps make its clients’ environments cleaner
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for a wide variety of air quality needs. and safer.
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Midwest
< profiles
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90. 120.
122. East Texas Precast Co. 132. Conical Cutting Tools West
East Texas Precast succeeds in the Texas Revamped Conical Cutting Tools is emerg-
parking garage construction market be- ing as a market leader following a produc- 140. Tesla Motors
cause of its high performance product, tion, sales and marketing overhaul, and is Tesla Motors continues on its plan to
processes and people. known for its high-performance products. transform the economy starting with
high-efficiency, electric vehicles.
124. ESCO Marine 134. Moduline Modular
ESCO Marine’s strength is in giving old ves- Aluminum Cabinets 143. The Clorox Company
sels a new purpose, and it is currently work- State-of-the-art equipment and an ability The Clorox Company’s supply chain strat-
ing on an 18-month-long dismantling of the to customize its offerings are why Mod- egy and leadership forum helps build its
USS Saratoga. uline Modular Aluminum Cabinets are talent base.
sought-after products in a diverse range of
Northeast industries. 146. GCX Corp.
GCX Corp. recently opened a state-of-the-
128. Houghton International 136. Force Robots LLC art facility in El Paso, Texas.
Houghton International serves custom- Force Robots of Cleveland has developed
ers with specialty metalworking fluids cutting-edge robots that it says are much 150. Gruber Industries
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and services created specifically for their more advanced than other robots current- Gruber Industries provides products that
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needs, and has done so successfully for ly on the market because its robots use keep its data center and other commercial
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more than 150 years. force and sense to perform their work. customers running at all times.
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COLUMN BY | LYNN L. BERGESON
TSCA Reform:
Are Prospects in 2015 Real?
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Whether 2015 legislative prospects regarding reform of the Toxic Substances Control Act (TSCA) are
real is anyone’s guess. On the environmental front, TSCA reform is the only viable contender for seri-
ous legislative attention in the New Year, and even this is by no means a given.
Consideration in earnest is depen- nority in Senate EPW Committee requirement that the U.S. Environ-
dent upon a variety of factors, the leadership is crucial for new reform mental Protection Agency (EPA) en-
most important of which is the crit- measures to pass. sure “with reasonable certainty that
ical need for sustained bipartisan- The House Subcommittee on En- no harm to human health or the en-
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ship. The September 2014 Udall/Vit- vironment and Energy Chair Rep. vironment will result from chemical
ter recasting of the Chemical Safety John Shimkus has been a leader exposures, without taking into con-
Improvement Act (CSIA), first in- on TSCA reform. Shimkus intro- sideration cost or non-risk factors.”
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troduced by Senators Lautenberg duced in March the Chemicals in The debate over “uncertainty of no
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and Vitter in May 2013 and co-spon- Commerce Act, and has devoted harm” comes from the standard in
sored by 25 senators (13 Republicans considerable time to TSCA reform the Food Quality Protection Act.
and 12 Democrats), is an underesti- by educating members on TSCA by High Priority Substances –
mated starting point for discussion. convening hearings over the past Udall/Vitter CSIA requires that EPA
Before going into the merits of CSIA few years on TSCA and how it works identify an initial list of ten high pri-
and Sen. Barbara Boxer’s alternative (or does not). Assuming both cham- ority substances for safety assess-
TSCA reform bill circulated in late bers get a bill out, and assuming ments and determinations within
2014, a few thoughts on the context continued bipartisan support for six months of enactment. Sen. Box-
in which TSCA reform legislation Udall/Vitter CSIA does not dissi- er would make the number 15. Some
will be considered may be helpful. pate, there is at least a theoretical articulation of expected workload is
With the mid-term Republican chance something could happen in probably a good thing to guide the
take-over of Congress, some believe 2015. If there ever was a time when Agency, especially if it is not clear
that bipartisan support for TSCA re- it was true that “there is no small if EPA will receive any significant
form by the Senate Environment and amendment,” it is now. With the re- increase in resources to implement
Public Works (EPW) Committee cent TSCA reform draft, virtually all any new provisions.
leadership is central to the success of sections of TSCA have been signifi- Inclusion of Deadlines – Udall/
any TSCA reform measure. Former cantly revised, and there are many Vitter CSIA contains what many
EPW Committee Chair Sen. Box- issues where opposing viewpoints regard as aggressive but achievable
er has long expressed the need for could sink the bill even if the new deadlines for establishing policies,
TSCA reform, but has been a major Congress is more collegial than in procedures, guidance documents,
impediment to TSCA reform mea- years past. and completing actions. Deadlines
sures given her views on preemption. Below are a few key provisions in help drive priorities, but too many
Sen. Jim Inhofe took over as Chair of Udall/Vitter CSIA, contrasted with or simply unrealistic ones can fos-
the EPW Committee in 2015. Sen. Boxer’s views on the same pro- ter inflated expectations doomed to
Inhofe has long supported TSCA visions. disappoint. In a similar way, Senator
modernization, co-sponsored CSIA, Safety Standard – Udall/Vitter Boxer’s bill emphasizes deadlines
and has renewed his support for CSIA retains the TSCA safety stan- and productivity.
TSCA reform. The continued sup- dard of unreasonable risk of injury. Explicit Identification of Final
port of both the majority and mi- Sen. Boxer’s bill replaces it with a Agency Actions – Udall/Vitter CSIA
issue of preemption is unresolved. chance of success. All bets are like- remain in a holding pattern. As for
Sen. Boxer’s version strikes the ly off, however, if something fails EPA’s chemicals program, the Office
Udall/Vitter CSIA language, which to materialize before the August of Chemical Safety and Pollution
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is similar to the current TSCA lan- recess. Presidential election con- Prevention (OCSPP) will continue
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guage, and basically eliminates TS- siderations can be expected by Sep- its Work Plan Chemicals assess-
CA’s preemptive effect. tember to influence the legislative ments; continue to improve Design
Many believe CSIA recast as Udall/ calendar and serious consideration for the Environment (DfE); con-
Vitter CSIA will be re-introduced in of meaningful legislation, including tinue to build ChemView; develop
the new Congress. With Sen. Inhofe TSCA reform, could halt. CompTox for endocrine disruptors
at the helm in the Senate, Sen. Box- On top of Presidential calendar and chemical categories for com-
er has been eliminated as an abso- considerations, another unknown is mercial chemicals; and in the pesti-
lute block to consideration of CSIA. how exactly the two parties will get cide world, continue the relentless
While Sen. Boxer will remain an along – will the new Congress see pressure to complete timely pesti-
influential ranking member of the any spirit of bipartisanship, bitter cide registration reviews, Worker
committee, and can be expected to feelings about the “imperial Presi- Protection Standard implementa-
oppose any bill that preempts state dency” among the Tea Party types, tion, and Endangered Species Act
chemical laws or otherwise does or generally do they actually want to (ESA) compliance checks.
not address her concerns, Sen. Box- get something done? The recent dis- It is quite likely that 2015 will be
er’s influence has been significantly cussions on immigration reform do an interesting year. Let us hope for
blunted. The key is whether there are not bode well for collegial relations in all our sakes, TSCA reform happens
enough Democrats supporting any Congress. Since the beginning of the in 2015 and EPA continues to imple-
bill to meet the now functionally re- Obama Administration, the key par- ment administrative changes de-
quired 60 votes to get anything done ties have stated they agree on a num- signed to improve domestic chemi-
in the Senate. ber of “principles” which upon review cal management. mt
The American Chemistry Council are, broadly speaking, directionally
supports Udall/Vitter CSIA, as do in agreement. Crunch time is right Lynn L. Bergeson is Managing Partner of Bergeson
& Campbell, P.C. (B&C®), a Washington, D.C. law firm
other chemical trade associations. around the corner – there is a narrow focusing on conventional, nanoscale, and biobased
Cal Dooley noted that a Republi- but real opportunity for success. industrial, agricultural, and specialty chemical product
regulation and approval matters, environmental health
can-led Congress would provide As for other major environmental and safety law, chemical product litigation, and asso-
a “more favorable policy environ- issues, Sen. Inhofe can be expected ciated business counseling and litigation issues. She is
President of The Acta Group, with offices in Washington,
ment” for TSCA reform and he spec- to push hard against the Adminis- D.C., Manchester, UK, and Beijing, China, and President
ulated that TSCA reform legislation tration’s climate change program, of B&C® Consortia Management, L.L.C. (BCCM) with
offices in Washington, D.C.
would be viewed favorable in the nominations will continue to stall,
As we start 2015, we’re entering a crucial phase in the annual lifecycle of manufacturing. With 2015
planning and financials set in place, now is the time for manufacturers to put processes in place
that will drive positive business results and establish a framework for reaching next year’s goals.
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identify potential opportunities to ceipt. In our experience, many man- controls are in place for gathering
cut costs and improve savings. ufacturers have a 30 percent excep- this information. With this in mind,
tion rate in the matching process, here are three ways manufactur-
Overusing POs which means that those invoices are ers can collect and leverage data to
We’ve seen many CFOs of manufac- routed back to purchasing so they form actionable business insights
turing companies have a lack of con- can amend the PO in order to match for 2015:
trol over business processes, which the invoice. It’s not unusual for
can lead to a worrisome trend: man- companies to create POs so they can > Hold every department ac-
ufacturers’ over-reliance on costly match them to invoices that they al- countable. You can have far
purchase orders (POs). By overus- ready received. more control by holding each
ing POs, manufacturers increase In fact, we often see that the total department accountable for a
the cost of the procurement process cost of the procurement to payment specific budget. This also shifts
and overspend by relying on a pro- process (P2P) for an item bought with responsibility to department
cess that gives manufacturing ex- a PO costs one and a half to two times managers instead of relying on
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ecutives the illusion of control over as much to process as one bought the purchasing team.
their business processes. without a PO. In addition, using POs > Determine your cost per invoice.
Purchase orders are typically is- eliminates the review of invoices by I’m always surprised by the fact
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sued by a manufacturer for specif- department managers who often find that so few mid-size manufac-
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ic goods, parts and raw materials. errors and other issues when review- turing firms know this informa-
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They are a legal document that spec- ing invoices for approval. tion. To calculate your cost per
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ifies pricing, quantities and other For instance, one of our clients in invoice, calculate the total cost
conditions when ordering product. the manufacturing industry had a of all accounts payable func-
Furthermore, POs are issued by a rule that anything bought for more tions (salaries and benefits, IT,
highly skilled purchasing depart- than $5,000 had to have a PO. In overhead, recruiting, training,
ment, whose job is to negotiate and practice this meant that many in- outside vendors, etc.) and divide
secure the best prices, terms and voices arrived into the AP depart- it by the number of invoices pro-
other conditions for the products ment who then had to route them cessed per year. Once you figure
necessary for the business. The to purchasing so they could create this out, you can compare your
best organizations have purchasing a PO to match to the invoice. To fix cost per invoice against other
teams that act seamlessly across the this, we reengineered the process firms of similar size to see if you
enterprise and can determine when so procurement only issued PO’s can improve.
POs should be issued and when they when they could add value in the > Conduct benchmarking reports.
may not be necessary. purchasing of those specific goods Whether annual or quarterly,
What’s happened, however, is that and services by negotiating better benchmarking reports can help
many manufacturers now issue POs pricing, terms or other conditions. you track and anticipate myriad
for every transaction, even for ser- The company regained control by costs of running a business each
vices, office supplies and utilities. electronically routing invoices to year. Within accounting and fi-
By issuing POs for every trans- department managers for approval nance in mid-sized companies,
action, manufacturers increase the and they were held accountable each benchmarks haven’t budged
overall cost of the purchasing pro- month for their spending versus in the last 20 years. With this
cess and dramatically complicate budget. The client’s procurement knowledge, you can more deci-
their internal processes. Costs go costs went down dramatically and sively find solutions that will cut
up because expensive purchasing their control increased as well since costs while also being able to an-
professionals have to spend time there was greater focus on budgets. ticipate the effect this will have
creating PO’s and sending them to on the finance department. mt
the vendors. Then, when the invoice Effective Data
arrives the AP department has to Collecting data has never been easi- David Schnitt is president and CEO of IQ BackOffice. For more
information, visit www.iqbackoffice.com.
match the PO to the invoice and re- er for manufacturers – as long as the
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Much of the credit for the recent revival of the U.S. automo-
However, changing industry dynam-
tive industry has been given to the doggedness of the Ameri-
ics and emerging technologies are
can workforce. The media has personified the manufacturing making it difficult to retain and attract
worker as a rugged, never-give-up type of guy whose unfailing workers to the automobile industry.
determination has single-handedly build the next generation Consider these recent statistics:
of automobiles. It’s an image that instills confidence and makes > By 2030, 18 percent of the na-
for a great commercial. Certainly, hard-working employees are tion’s current workforce will be
the foundation of success for any company. at least 65 and potentially look-
ing to retire, according to the minutes. These early inventors had ally changed throughout the entire
Pew Research Center. no roadmap to follow, no mentor network. Generally, younger em-
> More than half of employed giving guidance. If a system or pro- ployees do not want to work at com-
workers in the U.S. – 51 percent cess didn’t exist, they had to develop panies where they must maintain
– are either actively seeking or it themselves. old systems. They see it as a move
open to finding new jobs, ac- Developing automation and new backwards and a waste of their time
cording to a survey from social technology solutions is a tradition learning old methods when they
recruiting platform Jobvite. that continues today. Vehicle man- could be working on cutting-edge
ufacturers have been some of the technology systems instead.
Who will replace these experi- first to embed data-producing sen-
enced workers, particularly in the sors in assembly line robotics, con- When to Invest in Technology
automobile industry? Generally, trollers and automotive parts. They Deciding when to upgrade technol-
younger employees are attracted have adopted cutting-edge software ogy is not easy. On one hand, there
to places that offer career advance- solutions to manage vast amounts is a system that, while difficult to
ment opportunities and access to of information and developed their use, gets the job done. The costs
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the latest technology such as 3D own systems when what they need- associated with maintaining leg-
graphical interfaces, voice activa- ed didn’t exist. This “get-it-done” acy systems typically are spread
tion, high-speed processing capa- mentality has been successful with out over time in small increments,
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bilities, interconnected systems global auto sales hitting a record thereby not causing a large impact
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or mobile applications. Yet, many 80 million vehicles. However, it on profitably. On the other hand,
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existing automobile manufactur- has also lead to an industry built installing new systems requires a
ers operate on legacy, proprietary on complex, proprietary systems, large upfront investment, plus a
systems, which can be difficult and which are becoming increasingly significant time commitment for
expensive to maintain. Investing in difficult to maintain. customization. However, when one
technology is important for compa- Many of the software programs analyzes the return on investment
nies wanting to attract new workers used by automobile manufactures over time, the actual cost of main-
who, in turn, bring with them an in- were initially built on the comput- taining an old system typically is
fusion of new ideas and approach- er programming language known as greater than implementing a new
es. “Newer, nimbler companies like COBOL (Common Business-Ori- one, not to mention the opportuni-
Tesla Motors have an advantage be- ented Language). In a 1997 study, ty costs associated with losing top
cause of their pick of engineers to Gartner Group reported that 80 per- talent to competitors.
help innovate,” says Morgan Stanley cent of the world’s businesses ran While it’s hard to predict what
analyst Adam Jonas. on COBOL with more than 200 bil- the future will look like, one thing is
lion lines of code in existence. Over certain – successful manufacturers
Existing Systems Developed the years, these systems have be will be the ones that attract the next
Out of Necessity modified with new add-on features generation of workers by offering
The automobile industry is arguably and more functionality. Addition- a stimulating, advanced technolo-
one of the oldest manufacturing ally, adjustments have been made gy environment. In doing so, these
industries in the world. The first to accommodate business rules and visionary companies will attract a
gasoline-powered automobile was government regulations. The re- new generation of workers and cre-
introduced by Karl Friedrick Benz in sult is often a network of unwieldy, ate a sustainable cycle of innovation
1885, nearly 20 years before the first stand-alone systems that work, but Just as the early industry pioneers
airplane was invented. And, it was are difficult to use and maintain. proved, its new ideas and fresh per-
the automotive industry that pio- Getting data out of these legacy sys- spectives that will continue to shape
neered the first modern assembly tems can be difficult without strong the future. mt
line – an invention by Henry Ford technical knowledge of the old pro-
Larry Stolle is Solution Manager for Automotive Industries at
that dropped the assembly time for gramming language and, when one SAP. For more information visit www.sap.com.
a single vehicle from 12 hours to 90 change is made, it must be manu-
zodiac aerospace is
expanding aggressively
as the aerospace industry
increases its production.
rials division has a total of seven ery and equipment to do that. The al components for the aerospace
manufacturing plants: three at its machinery and equipment is more industry,” Raynor says. “Recently,
Marysville, Wash., campus; one in automated and updated to increase we’ve invested in a new 15- by 40-
Newport, Wash.; two in Southern our output. We’re actually in the foot autoclave. We’ve also added a
California; and another facility lo- process of incorporating new resin robotic inspection cell for nonde-
cated in Tijuana, Mexico. The plants treaters that will be implemented structive testing, as well as robotic
have a combined 650,000 square this year, which will increase our ef- technology for the visual inspection
feet of manufacturing space and ap- ficiency and capacity.” of composite details.” The autoclave
proximately 2,000 employees. The advanced composites facil- is used to make composites tougher.
ity in Marysville has approximate- Zodiac’s engineered plastics site
Production Increased ly 250,000 square feet and about encloses approximately 110,000
Production of honeycomb core 675 employees. “We manufacture square feet and employs 270 em-
sandwich panels has increased. primary and secondary structur- ployees. “We’ve recently invested
“Just in the last year, we implement-
ed an additional C4 honeycomb line, ‘we’re continually working to improve our op-
which in essence doubled our capac-
ity for the creation of honeycomb
erational efficiencies to support our custom-
core,” Raynor says. “We added a sec- ers’ needs. we strive to provide our customers
ond line and put in all the machin- with unparalleled service.’ - Cynthia Raynor
18 manufacturing-today.com JANUARY/FEBRUARY 2015
Aerospace SPECIAL SECTION
in new injection molding machines, as such as Zodiac to increase output and lationships. Our development teams
well as five-axes CNC machines to in- improve efficiency. work very well together as we’re de-
crease our capacity and our efficiency, “It’s a very competitive industry,” veloping new products. Our focus is
as well,” Raynor says. Many interior Raynor emphasizes. “The challenge really on the conversion of metal to
components for aircraft are injec- is to be able to meet those increased plastic, as well as the introduction of
tion-molded or vacuum-formed to re- rates by increasing our output and im- new materials and processes that will
place heavier metal components. proving our efficiency. provide lighter and more cost-effec-
“We’re continually working to im- tive solutions.”
More and More prove our operational efficiencies to Delivery methods for components
With delivery of aircraft such as A320s, support our customers’ needs,” she depend on how a customer uses
787s, A350s and 737s increasing, ramp- adds. “We strive to provide our cus-
ing up production is becoming in- tomers with unparalleled service.” Diversified Machine Systems is a leading original
equipment manufacturer of 3 & 5 Axis CNC Routers and
creasingly important. Zodiac provides Besides designing parts and compo- Large Format Machining Centers that are relied upon
by top aerospace companies for machining advanced
components for commercial and mil- nents, Zodiac Aerospace also designs materials in composites, aluminum, thermoplastics, silicon
itary aircraft including passenger air- the tooling to produce the parts. “We carbide, and carbon fiber components. DMS thanks the
entire family of Zodiac Aerospace companies for the
craft, freighters, fighter jets, business work together with customers closely continued worldwide partnership as more than a machin-
jets, helicopters and very light jets. and tightly through the development ery provider – a business partner in process engineering
and development of new machining products, such as
With the economy improving, aircraft and design phase and then into manu- the Heavy Duty DMS 3 Axis Series of Enclosed Overhead
OEMs are demanding faster turn- facturing,” Raynor asserts. “Through Gantry and Twin Moving Table Machines uniquely designed
for their expanding composites business.
around times, which require suppliers that, we’ve been able to forge great re-
Worldwide Business
Zodiac Aerospace is AS9100 and Nadcap-certified for
quality assurance. It supplies aircraft components
worldwide to such farflung locations as Malaysia, Japan
and Italy. “It’s such a global marketplace today, you can’t
even imagine all the things that you get contacted for ev-
ery day by people from other countries to manufacture,”
Raynor says. “How they’ve heard of you and where the
parts are going and where they end up is amazing.”
This makes for an active supply chain. “We have a very
diverse supply chain with parts coming in from all over
the world and going out to all over the world,” Raynor
points out. “So that’s always a challenge in itself.”
Zodiac Aerospace’s businesses provide a wide range
of aircraft components, such as cabins and structures,
seats, galleys and equipment.
“Zodiac is a very diverse company with facilities all
over the world, and I think that diversity really helps us
to be who we are,” Raynor maintains.
Competition varies depending on what segment of Zo-
diac is being compared. “If you look at what Zodiac does as
a whole, there’s very few competitors,” Raynor maintains.
“If you break it down to individual businesses in Zodiac,
there might be more competitors for that one item, but if
you look at Zodiac’s overall capability to provide integrat-
ed solutions, there are very few competitors.”
For the future, Raynor sees the development of more
advanced composites for larger primary and secondary
structural components in aircraft. “For our engineered
materials, it’s really about the expansion of our product
offerings in terms of our formulations, and continuing to
review those offerings and bring lighter weight and more
cost-effective solutions to the market,” she concludes. mt
Investing in Expansion
Superior Tube continues to find new
applications for its products while
broadening the markets it already
operates in. Within the past year,
the company has expanded into the
oil and gas market, where its high
pressure, corrosion resistant tubes
are used in heat exchanger applica-
tions, subsea control lines and in-
strumentation. “We’ve gone from
A Precision Operation
Superior Tube’s manufacturing operations are centered
on three main processes. The first of these is tube reduc-
tion, which involves decreasing the diameter and increas-
ing the length of a piece of pipe by applying force to the
outside of a tube. The company also regularly performs
welding as well as drawing, which involves pulling a tube Tube dedicates specific pieces of equipment to certain
through a die to decrease its diameter. Other manufactur- sizes and types of pipe, which allows it to be flexible in
ing processes include annealing, grinding and cleaning. its manufacturing operations, Huber notes.
The company typically runs low-volume, high-mix Superior Tube is ISO 9001 certified. In July 2014, the
production lines, with frequent changeovers. Superior company received AS9100 certification, which allows
it to expand its work in the aerospace industry. The
company within the next year hopes to attain NAD-
CAP certification for its heat-treating and welding pro-
cess; Superior Tube is already NADCAP certified for its
non-destructive testing procedures and is also DDTC
registered as a manufacturer of defense-related articles.
The company operates a testing laboratory within its
manufacturing facility, and its quality test methods in-
clude ultrasonic and eddy-current testing.
Superior Tube practices lean and Six Sigma methodol-
ogies within its operations. The company partners with
the Delaware Valley Industrial Resource Center in Phila-
delphia to train its employees in those areas; two-thirds
of Superior Tube’s employees have some degree of lean
training, and six employees are Six Sigma black or green
belt certified, Huber says.
Five of Superior Tube’s full-time employees are specif-
ically dedicated to continuous improvement. One of the
continuous improvement team’s main focuses is reduc-
ing setup time in the company’s drawing and ultrasonic
testing operations; these efforts have led to a 40 percent
setup time reduction in recent years, Huber notes.
“Factories that have survived for 80 years aren’t doing
things the way they always did,” Huber says. “If you visit
ours, you’ll find an operation that is changing every day
for the better. Optimization is on our daily agenda so we
can offer our customers the best service, highest product
quality at competitive lead times and prices.” mt
Quality Assurance
lockheed martin leads the manufacturing team of the
history-making orion spacecraft. by jamie morgan
Readying for Launch clothing, food and water to last them al is stirred as opposed to being melt-
“So now our activity has been on 21 days, as well as spaces to work and ed. As the metal parts mix together, it
developing a new, larger space vehi- get exercise. results in a reliable, lightweight joint
cle capable of giving us the big push Oxygen was also a concern. The that is more reliable against cracks
needed for deep space missions,” team designed a closed-loop life and leakage. The design also has to
explains Bill Johns, Lockheed’s chief support system that captures air withstand the extremely high tem-
engineer for Orion. “Since 2010 we being breathed out. It dispels the peratures and radiation it will come
have been focused on this deep space carbon dioxide and moisture and re- across on its descent back to earth,
variant and much more recently we cycles the oxygen and nitrogen back and this is the element that Lockheed
are very focused on building and get- into the cabin, reducing the crew’s will make a top priority in its testing.
ting ready to fly Exploration Flight reliance on oxygen and nitrogen sys- On its flight test, Orion launched
Test-1 [EFT-1], which is our first or- tems on board. from a vehicle called Delta IV Heavy,
bital flight that will gather the data Another consideration was the the biggest rocket available today. It
we are looking for.” design’s strength. For instance, went into a low-earth orbit and orbit-
Lockheed and NASA teamed up to Lockheed Martin manufactured the ed the earth once. At that point most
design a four-person spacecraft ca- pressure vessel from lightweight alu- spacecraft will prepare to descend,
pable of 21 consecutive days of space minum lithium and using a technique but Orion is looking to pioneer new
travel that can accommodate enough called friction stir welding. The met- frontier. After its first orbit, Orion
shot 3,600 miles above the Earth. On things will get hot. Not only that, we “We are moving out briskly with the
the way up and on the way back down, have to protect future crew from tem- next production version and as soon
Orion passed through the an area of peratures like that and also from the as this data gets back we will bury
high radiation. landing loads of hitting the ocean.” ourselves in it and make sure we un-
On its descent to earth, Orion The heat shield is made of a coating derstand anything new it’s telling us,”
reached a speed of 20,000 miles per called Avcoat, which burns away as it Johns explains. “Any adjustments it
hour, unavoidably compressing air heats up in a process called ablation to indicates will be quickly incorporated
ahead of the heat shield surface that prevent the transfer of extreme tem- into the design of the next spacecraft
reached 4,000 F because of the high peratures to the crew module. It is also because the next spacecraft explora-
speed. Once it entered the earth’s at- covered with a silver reflective tape tion is slated to go into beyond-lunar
mosphere, a set of specially created that protects the material from the ex- orbit on a much longer duration 20-
parachutes deployed, slowing Orion treme cold temperatures of space. day mission.” mt
down to 20 miles per hour before it Once it launched, the team began
splashed down into the Pacific Ocean. tracking 10 of the top-16 safety risks Craig Technologies Founder/CEO Carol Craig believes
in a people-first culture and has grown Craig Technologies
EFT-1 will determine whether the Ori- associated with deep space travel mis- to be a manufacturing service provider of choice to avia-
tion and aerospace customers such as Lockheed Martin
on can withstand such a mission. sions. Sensors and electronic systems and Sierra Nevada Corporation’s Space Systems. The
“We’ve designed a heat shield that is provided information on the environ- company offers a unique multi-disciplinary capability of
integrating manufacturing, design, and innovation at their
16.5 feet in diameter and is the largest ment inside and surrounding Orion 161,000 sf facility in Cape Canaveral, FL. Craig Technologies
one ever built,” Johns says. “When it’s and how the spacecraft both influenc- makes their customers’ problems their own and shares the
risk to find value-added solutions.
coming back at 20,000 miles per hour, es and reacts to that environment.
Soaring Forward
ge aviation’s investments in facilities and technology
will solidify its strong position. by jim harris
One of the world’s leading pro- plants manufacture engine compo- “GE has been developing this
viders of jet engines and integrated nents, and final engine assembly is technology for many years, but this
systems for commercial and mili- performed in Durham. is the first time we’ve been able to
tary aircraft continues to make sig- One large part of the company’s put it into production on any of our
nificant investments in its future. investment came to fruition in Oc- engine platforms,” he adds.
GE Aviation, an operating unit tober, when the company opened Made of silicon carbide ceramic
of General Electric Co., is commit- the doors to a new facility adja- fibers and ceramic resin, CMCs are
ting $195 million in its four man- cent to its Asheville plant. The new manufactured through a highly so-
ufacturing facilities in North Car- 170,000-square-foot facility is the phisticated, proprietary process.
olina through 2017. The company first in the world to mass produce The material enables engine com-
employs 1,300 people in sites in engine components made of ad- ponents to be lighter, more durable
Durham, West Jefferson, Wilming- vanced ceramic matrix composite and able to withstand higher tem-
ton and Asheville. The West Jef- (CMC) materials, Plant Manager peratures than typical super alloys,
ferson, Wilmington and Asheville Michael Meguair notes. Meguair says.
Local Partnerships
GE Aviation worked closely with the North Carolina De-
partment of Commerce to secure the new Asheville loca-
tion. The company also worked with the state and sever-
al local municipalities and agencies to provide technical
support and incentives related to investments in all four
of its manufacturing sites in the state. One of these part-
nerships was with the Asheville-Buncombe Technical
Community College, which assisted in training on the
new equipment, GE Aviation says.
GE Aviation also invested in improvements to its
three other facilities in North Carolina. This includes
increasing the capacity and investing in new equipment
at the Durham facility for engine assembly. The compa-
ny also intends to expand its West Jefferson and Wilm-
ington facilities.
The West Jefferson facility, which houses machining
of rotating parts, is in line for an 80,000-square-foot
expansion anticipated to open before 2017. At Wilming-
ton, where the company manufactures medium- to large-
sized rotating parts, investments will include the pur-
chase of new plant equipment.
Worldwide Commitment
GE Aviation this year also broke ground on a significant
investment in its U.S. manufacturing operations outside
of North Carolina. The company within the next few years
will open a $100 million jet engine assembly facility in La-
fayette, Ind. The facility will be GE Aviation’s seventh new
facility in the past seven years, joining the Asheville facility
as well as sites in Batesville, Miss.; Auburn, Ala.; Greenville,
S.C.; Dayton, Ohio; and Ellisville, Miss.
The 225,000-square-foot facility will assemble the
new LEAP engine. Within five years, the plant’s work-
force is expected to exceed 200 people performing fi-
nal engine assembly for the engine as well as producing
components including compressors, combustors and
high-pressure turbines.
“We are thrilled by the airline industry’s enthusiasm
for the new LEAP engine and its groundbreaking tech-
nologies,” GE Aviation President and CEO David Joyce
said in a statement. “Beginning in 2015, the LEAP engine
will experience a dramatic production ramp-up for the
remainder of the decade. We are grateful to the entire
Indiana team for ensuring that our Lafayette assembly
plant will be soon up and running.”
The plant will be minutes from Purdue University in
West Lafayette, which has a long history of collaboration
with GE Aviation and its parent, GE. GE employs more
than 1,200 Purdue University alumni, including more
than 400 at GE Aviation. Over the past five years, GE has
financed more than $2.5 million in research and develop-
ment projects at Purdue, the company says.
The investments in North Carolina and Indiana repre-
sent a portion of the company’s worldwide commitment
to growth. The company expects to invest more than $3.5
billion in plants and equipment worldwide between 2013
and 2017, with most of that investment in the United
States. “This long tradition of commitment to new tech-
nology has helped GE maintain its leadership position
within the industry with a proud list of firsts in both mil-
itary and commercial jet propulsion, tracing back to 1942
with America’s first jet engine,” the company says. mt
Graphel Carbon Products With deep roots in southwest Ohio, the North-
east and upper Midwest regions of the U.S., Graphel Carbon Products has been a
strategic partner of GE Aviation and the aerospace industry since 1965. Celebrating
50 years of providing graphite parts-to-print to the aerospace industry, Graphel
Carbon Products has earned ISO9001, AS9100, NADCAP and ITARS certifications/
registrations, insuring compliance with the industry’s highest standards. Graphel
Carbon Products provides value through accurate, on-time precision manufactur-
ing as well as collaborative design and tooling services, creating a partnership of
performance with GE Aviation and beyond.
‘EXCELLENT’
PROSPECTS
the hvacr sector of the manufacturing industry is looking forward
to a steadily improving economy and is excited to show everything
new the market has to offer at the ahr expo.
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poolpak specializes in
dehumidification systems
used mainly in indoor pool
applications.
‘on the sales side, our independent sales reps refrigeration system, which has a heat
pump cycle that adds heat back to the
are the best in the business. a great product plus air and the pool water. “We don’t waste
great sales representation accounts for our suc- any of that energy,” Paley says.
cess in the marketplace.’ - Robert Paley The system also has a thermal coef-
ficient of performance of up to five, al-
lowing it to meet pool water set points
well as residential sales for larger in- machine performance is maximized and manage space humidity levels.
door residential pools,” Paley says. while incurring the lowest possible The system also is effective through-
The company has achieved leader- cost to the owner.” PoolPak also has a out the year, significantly reducing the
ship in the U.S. market, he adds. “There strong staff, which supports its opera- fuel usage for auxiliary heaters.
are many people that say they’re in the tions. “On the sales side, our indepen- Another feature is PoolPak’s Smart
industry, but we only consider three dent sales reps are the best in the busi- Economizer heating and dehumidifica-
main players that service the indus- ness,” he says. “A great product plus tion system, which uses outside air to
try,” he says. “We’re No. 2 but closing great sales representation accounts
Conn-Fab Sales, Inc. PoolPak has been a proven
in on No. 1.” for our success in the marketplace.” leader in the indoor pool dehumidification industry for 25
He credits PoolPak’s success to the years. Conn-Fab has been a proud PoolPak partner for the
past 15 years in supplying quality, custom-manufactured
quality of its dehumidifiers. “It’s a Saving Energy equipment supports for their equipment. From product
very, feature-rich product,” he says. PoolPak’s green focus can be seen design thru fabrication, Conn-Fab does it all! Visit our
website at www.connfab.com.
“It has a great control routine in that throughout its products, including its
Green Features
PoolPak International LLC’s dehumidification systems have multiple high-ef-
ficiency features, including wall condensate prevention. “In every pool envi-
ronment, there is one surface on which condensate will form before the other
surfaces,” the company says.
Usually, those surfaces are skylights, windows, doors, frames or north walls.
“The PoolPak controls monitor that surface temperature,” the company says.
“When that surface temperature drops to within a few degrees of the space
dew point, due to lowering outdoor temperatures, the PoolPak controls auto-
matically lower the room relative humidity and dew point,” it continues. “This
feature prevents condensation on the cold surface, unnecessary oversizing of
the dehumidifier and excessive compressor operation.”
Another feature is the quality construction of its products, which are built
to withstand corrosive environments. “High-performance coatings, copper
construction of critical parts and quality components ensures … [the] PoolPak
unit will operate long past industry standards,” it says. “Longer life reduces the the company’s new mpk series
of dehumidifiers features a
demand on natural resources and reduces the impact on disposal.” modular design and feature
smart technology.
heat and dehumidify over a range of outside air condi- The Economizer also runs without compressors, which
tions. According to the company, it uses simultaneous oper- saves a “tremendous amount of energy,” Paley says. “We
ation of heat recovery and standard economizer modes, and also have other types of dehumidification equipment
adds 15 to 20 percent energy savings over dehumidifiers. that operate without compressors.”
Staying Ahead
Last year, PoolPak introduced its MPK Series, a new
line of indoor pool dehumidifiers that features a mod-
ular design. Additionally, “We believe it to be state-
of-the-art,” Paley declares. “It encompasses all of the
leading-edge technologies.”
Available in sizes ranging from 30 to 90 tons, the MPK
Series features include Smart Air Management for au-
tomatic airflow monitoring and control, advanced con-
trols and system monitoring routines, and a Smart Pump
Control for pool water heating. “We believe it puts us
ahead of our competition in terms of features and value,”
he says.
PoolPak will promote the MPK Series at the 2015 AHR
Expo this January in Chicago. “We’ll have videos, inter-
active displays and people there to fully introduce and
exhibit the product,” Paley says.
Tracking Quality
Poolpak, as part of its formal quality program which is in-
tegral in its manufacturing, utilizes an incident tracking
system, Paley says. “It clearly documents all incidents,
whether internal or external to our operation,” he says.
“We then track the resolution of those incidents.”
These resolutions can involve changes in design, man-
ufacturing procedures or even a change in the vendor be-
ing used. So far, “It has shown a high level of success in
strong lean initiative here about 10 “We feel that we offer the premier de-
years ago and we’ve built on that,” he humidification solution for indoor
says. “We certainly agree and practice pools with [this] line,” he says. “We
lean in all major activities.” Lean con- offer an extremely high value type of
cepts can be seen throughout the com- equipment, with relatively low main-
pany’s ERP. tenance required.
“It’s a piece of equipment that’s go-
Going Big ing to last for many, many years,” he
Paley is proud of Poolpak and the says, noting that the MPK has gained
company’s growth. During his tenure, a lot of interest from customers. “We
“We’ve grown sales over 100 percent,” feel we’re really going to hit a home
Paley continues. “We’ve opened up run with it.”
many new markets, we’ve become pre- Poolpak also plans to expand its
mier suppliers to some major fitness presence in China, where the compa-
chains in the United States, and we ny is the leader of its market. “We’re
have an extremely strong sales rep net- building a factory over there that’s
terms of materially reducing our man- work that gets us in front of engineers going to be four times the size of the
ufacturing defects,” Paley says. all over the country.” current facility,” Paley continues.
The company also has implemented Paley is excited for the company’s “They’re going to do some big num-
lean manufacturing. “We had a very future, particularly with the MPK line. bers over there.” mt
novelaire technologies is
one of the world’s leading
providers of indoor air
quality solutions.
For dehumidification applications as part of a larger This is due in large part to the company’s relatively
system, NovelAire Technologies provides a series of des- small size, which Parker says gives it the ability to react
iccant wheels designed to dehumidify sensitive environ- quickly to customers’ requests and customize products
ments such as hospitals, supermarkets, clean rooms and easily without missing delivery dates. “We’re a small and
industrial sites where humidity needs to be controlled for nimble company,” Parker says.
corrosion protection, condensation control and/or mold The company’s technology edge also plays an import-
and mildew control. The company also manufactures en- ant role in the rapport NovelAire Technologies has with
ergy conservation wheels used in ventilation applications its customers. Through the use of 3-D modeling software
to reduce energy consumption. The company says that be- and the company’s strong information network, Nove-
cause HVAC systems are generally the systems that con- lAire Technologies is able to do everything related to
sume the most energy in a building, its energy conserva- design digitally, meaning it can share up-to-the-minute
tion wheels provide significant cost savings because they information about its products with its customers in real
can transfer latent and sensible heat between air streams time. “We’ve really tried to use information technology
without the need for a larger compressor, condenser or and software to our advantage,” Parker says.
other vapor compression cycle components. In the future, Parker says the company expects to grow
Developing the most effective and most advanced in the dehumidification niches it has chosen to serve.
technology on the market is a primary concern for Nove- He says the success NovelAire Technologies has experi-
lAire Technologies, and Parker says the company is seri- enced in the energy recovery wheel, desiccant wheel and
ous about making sure its products meet every custom- dehumidifier segments gives it confidence that the com-
er’s needs. The company is one of the few manufacturers pany will experience greater success in the future. mt
of air-to-air energy recovery wheels to have its prod-
ucts certified by the Air Conditioning, Heating and Re-
frigeration Institute. For its desiccant wheel products,
NovelAire Technologies developed an advanced, tem-
perature-resistant substrate that allows for significant
increases in moisture removal while keeping energy re-
quirements low, the company says. The company’s rec-
ognition by Frost & Sullivan in 2009 is further testament
to its technology leadership, according to Parker.
“By leveraging its background and expertise in desic-
cant technology, NovelAire has developed the Comfort-
Dry 400 and ComfortPlus 300 dehumidifiers,” Frost &
Sullivan said at the time of the presentation.
NovelAire also has developed the Novel-Ice product
lines, which allow application of its technology to de-
humidification applications in lower temperature spac-
es like ice rinks, curling rinks and refrigerated storage.
The company says the Novel-Ice units are more efficient
than current gas-fired dehumidifiers and are all electric.
Steam
Heat
spence engineering co.
switched from a build-to-
stock to a custom order
system. by russ gager
Pressure-reducing regulators are
used in systems that circulate steam
or hot water in closed loops to pro-
vide heat. In 1925, Paulsen Spence
designed the first normally closed,
pilot-operated, diaphragm-actuated
pressure regulator and called it the
Spence Type ED. Now a business
unit of Circor, Spence Engineering
Co. Inc. carries forward the found-
er’s reputation for products man-
ufactured with high reliability and
great longevity.
“We have products that have been
reliably running for 40 years with-
out rebuilding,” Site Leader Ste-
phen Gross declares. He attributes
that longevity to the products’ ro-
bust yet simple designs and the re-
peatability of the company’s manu-
facturing processes.
spence engineering’s major product
Spence Engineering Co. designs applications are in district heating
systems that distribute steam to
and manufactures steam regulation buildings in a central location.
equipment, custom steam specialty
products and fluid control devic- on the steam side,” Gross says. “The loops. It’s going to be cheaper than
es. The company’s major product technology is shifting on the indi- buying your very own expensive
applications are in district heating vidual heating side to go toward hot boiler and running it.”
systems that distribute steam to water for self-reliant control with- Steam also is used for many in-
buildings in a central location, such in apartment buildings. Hot water dustrial processes that require high
as a city’s downtown or a hospital, heating is gaining traction because heat quickly. Although steam sys-
university or military installation. condensing hot water boilers can tems operate at higher pressures
Its products also are used in indus- have very high efficiencies, nearly than hot water ones, many of Spence
trial processes for products such as 98 percent, but steam systems that Engineering’s products also can be
textiles or plastics and are sold to are designed well can be very effi- used for hot water heating, and the
boiler manufacturers for inclusion cient and cheaper in total cost of company is developing new hot wa-
on their products. ownership. This is especially true in ter products to meet the demands of
“Our products are primarily used municipalities with district steam the market.
Stock to Custom
Although it might seem counterintuitive, Spence Engi-
neering Co. reduced its lead-times approximately three
years ago by switching from a build-to-stock system to
filling custom orders as they arrive. “We went from being
driven by management resource planning and forecasting
and what we think demand is to really shortening our lead-
time from 20 to 30 days down to 10 days on 80 percent of
our revenue and being able to individually have specific
customer orders flow through the factory,” Gross says.
“We like to focus our efforts on eliminating non-val-
ue-added work,” Gross says. “If we constantly refine
our processes to spend more of our time on value-added
work and less of it on non-value-added work, it’s going to
lower our overall cost, increase our efficiency, improve
on-time delivery and therefore satisfy our customers.”
The reduction of inventory aids in this process. “Inven-
tory hides all sins,” Gross quips. “As you start reducing
inventory, you start understanding where the critical pro-
cesses are within your production system that need fixing.”
If one workcell is slowing an entire production pro-
cess, employees and managers dedicate resources to
remove obstacles to its efficient operation. This might
mean working smarter, eliminating duplication, improv-
ing procedures or increasing manpower or equipment,
sometimes over the course of an entire year. “You elimi-
nate these obstacles and go from 30 days to 10 days lead-
time with less inventory,” Gross says.
The company’s team attitude contributes to its suc-
cess. “We come here for more than just to earn a pay-
check,” Gross concludes. “You come here to have your
voice heard. It’s much more than just punching a clock
– it’s being a part of something.” mt
Many firms manufacture angle west Metal Products manufactures Metal Products to put those ideas
rings, but Midwest Metal Products rolled angle rings and structural to fruition. Today, Midwest Metal
sets itself apart by making itself shapes for clients that range from Products manufactures hundreds
invaluable to its clients, President HVAC and mechanical contractors of thousands of angle rings annually
Geoff Wendt says. “You have to fig- to major technology corporations. for contractors that serve such cli-
ure out how to make business so Wendt’s father, Bill Wendt, started ents as Intel Corp. and Texas Instru-
nice [that] they don’t want to go the company in 1982. ments Inc.
anywhere else,” he says. Previously, Wendt was part of a Midwest Metal Products has a
The company earns client loyalty family company that made structur- stock product line of angle rings that
by making sure it provides friendli- al rings. “He had a lot of ideas on how range from three to 72 inches. Aside
er, faster service than its competi- to make them better, but because he from its own stock specs, the com-
tors, Wendt says. “Once people get a didn’t have full control of the busi- pany emulates all other stock specs
taste for that, they stick with you,” ness, he wasn’t able to implement of its competitors. “If you want to
he says. them,” Geoff Wendt explains. get the ‘Midwest experience,’ but
Based in Michigan City, Ind., Mid- Bill Wendt then founded Midwest stick with a different competitor’s
Branching Out
Next year, Midwest Metal Products will appear at the
AHR Expo in Chicago. “We’ve been displaying [there] for
about 10 years now,” Wendt says. “It’s always nice for us
when it comes back to Chicago.”
He looks forward to meeting his current customers
and new people at the show. “If I see some sort of new
product on the floor or some exhibitor I haven’t met be-
fore, it’s always time [to offer our services],” he says.
Wendt predicts continued growth for Midwest Metal
Products with its staff, which consists of “some long-
term employees who have been here 15 to 25 years,” he
says. “I have a lot of fresh people in the shop and office,
as well.”
He expects the company to branch into new markets,
including building components, architectural details
pressure vessels and tanks. “The applications on the cus-
tom side of things are almost limitless,” Wendt says. mt
Keeping
its Cool
modine emerged from
the recession as a
stronger company
by streamlining its
efforts. by jim harris
During his six years at the helm
of Modine, Thomas Burke has guid-
ed the company through extremely
challenging and, in the past few years,
encouraging times. His proudest
achievements, however, go beyond
leading the company out of very low
spots during the 2008-09 recession,
introducing new products or entering
new global markets.
“I feel a sense of confidence when I
see a team focused on our principles
come together,” he says. “I’m always
pleased with the new products we
introduce and with our ongoing re-
search, but when our team comes to- modine ceo and president
thomas burke has guided the
gether, it provides the company with company through difficult
times since 2008.
a prevailing focus that we can benefit
from all the time.” used in light-, medium- and heavy-du- Modine’s customers also look to it
Burke, a former executive with Ford ty vehicles as well as in heating, venti- to provide high-quality, state-of-the-
Motor Company and Visteon – a parts lation and air conditioning equipment, art solutions at a competitive price.
supply company spun off from Ford in off-highway and industrial equipment “The business-to-business world in
2000 – joined Modine in 2005 and has and refrigeration systems. the vehicular sector, whether auto-
served as its CEO and president since “What we do best is address dif- motive, truck or off-highway, is a very
2008. At his previous companies, ficult heat transfer conditions and competitive one,” Burke says. “Our
Burke gained familiarity with Mo- problems and bring solutions to our customers depend on many different
dine’s thermal management products customers that have a very challeng- suppliers to provide products that
from purchasing its parts and licens- ing application in the markets we meet their technical needs. They’re
ing its technology for Ford vehicles. serve,” Burke says, citing small spaces looking for proven field performance,
Founded in 1916, Modine manufac- with significant amounts of heat gen- proven delivery and ongoing cus-
tures heat exchange components such eration as an example. The compa- tomer support and expect us to bring
as radiators, condensers and oil cool- ny works directly with its customers them the latest technology.”
ers as well as a highly respected line of to understand their needs and then, The company’s manufacturing
building HVAC final products includ- whenever possible, uses its exist- capabilities include stamping, fab-
ing unit heaters, rooftop ventilation ing product platforms as “building rication, forming, assembling and
units and chillers. Its products are blocks” to provide solutions. braising. “We are fully vertical-
Survival Planning
Burke first mobilized his executive
staff and manufacturing team shortly
after taking his leadership position in
2008, when the company faced a sig-
nificant challenge as a result of a drop
in sales and stock price resulting from from the recession as a stronger, more volved rationalizing Modine’s portfolio
the global recession. focused company. and focusing its efforts on the market
The company formed a “war room,” A four-step plan for the company segments in which the company had
and gave its executives the task of creat- emerged from its strategic planning the greatest competitive edge. “We had
ing a plan that would allow it to emerge sessions. The first step of the plan in- a large product line,” Burke says. “We
‘what we do best is ad- involved reducing $80 million in ex- Goals for Growth
penses and operating costs. This includ- With its operations back on more solid
dress difficult heat ed staff and service cuts, including the financial ground, the company last year
transfer problems and sale of a company airplane. established a new set of four priorities
bring solutions to our After setting its product and staff that it calls “enduring goals.” These are:
customers.’ - Thomas Burke priorities, the company entered the fi- > Reaching a 10 percent compounded
nal phase of the plan: capital allocation annual growth rate;
wanted to see which of our products discipline. This included reducing its > Achieving a 15 percent return on av-
were the strongest, best performing and capital expenditure budget from $100 erage capital employed;
most valued in their markets.” million to $60 million while reducing its
Once that was complete, the compa- debt. “We now find ourselves in a much Assurance Operations Corporation is a full ser-
ny entered the second phase of its plan, stronger position from a balance sheet vice engineering and manufacturing solutions company.
AOC specializes in the design, development, testing, pro-
which involved realigning its manu- perspective,” Burke says. gram management, and production of custom industrial
steel packaging and material handling, metal fabrication,
facturing efforts around its new prod- Modine executives regularly commu- and stamping applications. AOC is equipped with the
uct portfolio. At the time, the Racine, nicated with employees throughout the necessary tools, manpower, and experience to provide top
quality and delivery at competitive prices to customers in a
Wis.-headquartered company operat- plan’s execution. This included week- wide variety of industries.
ed 42 manufacturing facilities; today, ly business meetings, weekly updates Modine has relied on AOC’s team of experienced OEM
design, engineering and manufacturing professionals for
Modine operates 27 manufacturing fa- to the company’s board of directors, a over a decade. AOC is proud to be a partner with a leading
cilities around the world, Burke notes. monthly CEO newsletter and quarterly company like Modine, continually developing new and
improved products in the thermal management industry.
The third phase of the four-point plan meetings with employees.
> Building a balanced and diverse and plants, the better off we’ll be in ring pattern, which guides and teaches
business model; and the future from a competitive stand- the improvement pattern.
> Becoming the fastest-improving point,” Burke says. “One of the things that makes us
company in its industry. The company’s internal improvement strong is our depth,” Burke says. “We
discipline, known as the Modine Oper- have the most knowledgeable people
The company’s diversification strate- ating System (MOS), improves both ad- in the world, who develop heat trans-
gy allows it to continue to grow in cer- ministrative functions and manufactur- fer products and processes. We want
tain sectors when others are not seeing ing operations, providing a framework to make sure we provide opportunities
growth, Burke notes. “Right now, the for the use of lean practice and other and an environment that allows us to
off-highway segment is down globally, improvement tools. recruit and retain people who share in
but we’re benefiting from strong truck Built on five long-standing global that focus.”
and automotive markets, which is off- commitments and structured to help
setting that loss,” he adds. achieve the enduring goals, Burke says Global Casting Partners has enjoyed a 15 year part-
nership with Modine Manufacturing. We are the recipient
MOS brings together improvement of the 2012 Global Export Supplier of the Year Award. We
Internal Improvement principles and leadership behaviors to have grown from providing service parts support to sup-
plying production castings for major programs including
Modine’s focus on continuous im- engage and guide Modine team mem- Navistar, Volvo, Peterbilt, International, Daimler Benz as
provement in its manufacturing and bers in the use of three key concepts: the well as castings for many off-road applications. DENSO is
our most recent program for the Dodge 1500 diesel engine
administrative processes is helping improvement pattern; target process CAC tanks. We launched this program in 8 weeks from
it meet its fourth enduring goal. “The conditions, or the ways the company tooling to full production. Modine has helped us grow into
a global source for quality aluminum castings.
faster we can improve our processes wants a process to work; and the mento-
Community Enhancement
Modine’s internal philosophy of continuous improvement
extends beyond its manufacturing facilities. “We’re always
helping to improve the conditions and environments of the
areas where we live and work,” Burke says.
Many of the company’s employees are involved in com-
munity activities, including volunteering in schools or
homeless shelters. On a corporate level, the company sup-
tion tools for them to be able to configure these prod- production line. “Normally, it happens as a new product
ucts as they come down the line,” Coursin says. “We’re comes out,” Coursin explains. “We continue to tweak
unique in that the wide range of sizes and units rolling its design and take cells offline on a continuous basis as
down the line one after each other is quite diverse. So we we see opportunities to optimize the manufacturing. A
had to figure out how to configure the flow of work. complete cell or a complete line would get a major over-
“You have units that are large and need access to reach haul. That happened two years ago when we stripped the
the upper portions of them, and units that are small that line down, rebuilt and reconfigured it for the workflow
you need to have a work platform so that they can be el- of a new product. It was a modification of a dedicated
evated so they’re at the appropriate ergonomic level,” outside air unit, where we’re designing it for some cost
Coursin continues. “They’re not run down traditional reductions and reducing the price to the field.”
roller lines or anything else. We had to come up with a Coursin attributes the company’s success to its sole
mobile carts and wheels system to maneuver the units focus: dehumidification. “It’s what we want to be known
down the shop floor.” for,” he says. “It’s what we provide the design and assis-
tance to the industry on. That – coupled with a focus on
Touch-Screen Manufacturing energy-saving design – keeps us at the forefront of the
Using this type of manufacturing requires everyone to industry. Our focus on this art is what we want to contin-
work on the same page, and with Desert Aire’s touch ue to develop and be noted for. So the new products and
screens throughout the manufacturing plant, they are. new designs – along with solving problems that are out
“The manufacturing staff has the latest in correct draw- there with more energy efficiency – we think will sustain
ings at their instant disposal,” Coursin points out. our position in the marketplace for the long term.” mt
Desert Aire is in its fourth year of rolling the touch
screens out throughout the plant to replace paper plans.
“They started in one of those offline subassembly cells
that supply multiple product lines in the plant,” Coursin
notes. “By integrating it there, we were able to see an im-
pact across all the manufacturing lines.”
The company uses a hybrid of the assembly line and
manufacturing cells in its 100,000-square-foot plant in
Germantown, Wis. Lead-times for many of the company’s
products are from four to 12 weeks.
“We are an assembly operation where we work with
our key suppliers in the industry to do the major com-
ponents,” Coursin says. “The coils, the compressors and
the sheet metal are all done externally to our operation.
So we have a very organized supply chain.” Besides as-
sembly, the company also uses brazing to weld copper
components together.
Desert Aire’s products are designed using 3-D model-
ing software so its vendors all have the exact specifica-
tions for each component. “The software has reduced
the design time and enabled us to catch all the misalign-
ments faster,” Coursin says. “So we’re able to go through
the design process to shipping product at a much faster
rate than we ever have in the past.”
Rebuilt Line
When Desert Aire introduces new products to the mar-
ket, it sometimes takes that opportunity to optimize its
MKT Metal Manufacturing is a because of the work ethic of the la- That’s the way the industry seems
pure OEM, located in York, Pa. Pri- bor [here].” In fact, York is a major to be morphing away from contrac-
marily, it caters to the construction manufacturing region in the nation. tor-based manufacturing. To a de-
industry as a direct supplier to me- MKT was established in 2004 by gree, that is “inviting the fox into
chanical and sheet metal contrac- partners Ken Brown, Mike Sunday, the hen house.” We have risen up
tors, most located within a 250-mile Troy Rentzel, and Frank Kottcamp. as a pure manufacture which is not
radius of its facility. Since then, Kottcamp has retired. threat to contractors.”
Customer demand requires MKT Three of the partners were em- In the past decade, MKT has
to run two shifts in its rectangular ployed by a prominent mechanical achieved rapid growth of its pro-
and spiral shops. “Our manpower contractor prior to establishing duction capabilities. In 2009, MKT
is our No. 1 asset,” Ken, President MKT. “We had the idea we could started its spiral shop. All spiral
and CEO explains. break off and become a true OEM,” production and inventories is man-
“Our success is because of our Brown recalls. “Rather than a poten- aged in a 10,000-square-foot facility
workforce,” he adds. “York, Pa., is a tial competitor [to our clients], we separate from its 15,000-square-
great place for manufacturing. It is are an actual supplier. foot rectangle shop. In 2010, air fil-
tration systems were added to the welding stations and advantage of the speed, economics, and consistency
plasma tables to ensure cleaner air for their employees. of MKT’s factory automation.
Last year, MKT purchased a new 56,000-square-foot fa- > Original Equipment Manufacture – As an OEM,
cility that houses all operations in the same building. The MKT is able to cut out the middle man to save com-
new facility has helped MKT increase production and panies more money.
provided the ability to better satisfy growing demand.
Brown says business conditions are great in the York New Markets
area. Plus, “We have no boundaries,” he adds. “We have MKT is expanding beyond its traditional HVAC industry,
shipped across the country and overseas to Dubai and Af- “The company is in a great position to enter new mar-
ghanistan.” MKT has also provided duct to contractors kets because we have become more efficient, digitized,
such as URS Corp. who serve the U.S. Department of De- and software-driven.” Brown explains. “We are now
fense and other state and federal agencies. moving into specialty metals,” Brown says. This new in-
The MKT team knows in order to satisfy the custom- volvement includes providing parts for pharmaceutical,
er, it must understand the industry. “We operate in pure institutional, food processing and other manufacturing
chaos,” Brown jokes. “We design and build our produc- sectors. MKT is capable of manufacturing products such
tion schedule based on factors in the industry such as as lab tables, exhaust hoods and stainless steel panels.
construction schedules and weather.” Brown explains, in “People are surprised at the sophistication of MKT’s op-
many other manufacturing operations a company might erations,” Brown says. “We have converted dingy, dark
take an order for 80 widgets, it then produces and deliv- rooms [of the industry past] to a well-lit, CNC-driven
er the 80 widgets. MKT, on the other hand, must deliver manufacturing process.” mt
to meet contactor’s schedules. Although, MKT is faced
with production and delivery challenges the company
overcomes them with constant communication. “Ev-
eryone knows what is happening,” Brown explains. “The
right hand knows what the left is doing. Communication
is key to be successful in our industry. Construction is a
very dynamic environment.”
How has MKT Metal Manufacturing achieved so much
in the past 10 years? “I think a lot of it is our manage-
ment,“ Brown says. “It’s a first-generation ownership;
we have passion and vision. We strive not to be the big-
gest, just the best.” Brown says the MKT management
team “leads from the front, we are involved in day-to-day
operations and provide a lot of energy that the rest of the
company follows.” MKT’s achievements are the result of
the four principles the company was built upon:
> Reduce business overhead – MKT strives to help
companies eliminate shop overhead by manufactur-
ing materials so the focus remains on the field.
> Manufacture and distribute – Brown explains
that the contractors prefer purchasing products
from a supplier rather than a competitor. MKT fo-
cuses on manufacturing and distributing products as
well as assisting with measuring, minor installation
and duct welding.
> Optimize production – MKT helps companies
keep work in house by supplying straight duct while
they produce fittings. This allows companies to take
ing the consumer experience. We provide best-in-class ica, including Mexico. “These facilities combined can
service, innovation, quality and unique merchandising accommodate over 5,000 orders and 225,000 lines per
solutions. Our team continually improves internal effi- day,” the company says. “Hillman has a 24-hour process
ciency, increasing speed to market while remaining flex- time from order receipt to product shipment with a 97
ible in the eyes of our partners.” percent fill rate.”
The Hillman Group’s devotion to quality and service Within these production and distribution centers, The
is strong no matter whether the company is dealing with Hillman Group has the capability to introduce a signifi-
a big-box retailer or one of the 15,000 independent or cant amount of innovation into the marketplace, and it
franchise retailers that make up its customer base. The does so regularly.
company explains that these smaller retailers typically “Whether in distribution, key duplication, or sales and
are part of cooperatives like Ace Hardware or Do It Best service, The Hillman Group is known for innovation,”
Corp. “The company sells directly to the cooperative’s the company says. “Many of Hillman’s distribution cen-
retail locations and also supplies many fastener items to ters employ the very latest in warehouse management
the cooperative’s central warehouses,” the company says. systems software, allowing paperless order picking. The
“These central warehouses distribute to their members technology used to engineer our Axxess Key Duplication
that do not have a requirement for Hillman’s in-store ser- System has revolutionized the metal key duplication
vice. These arrangements reduce risk, credit and logistic process, giving consumers a virtually foolproof system.
expense for Hillman and reduce central warehouse inven- Our sales and service teams are equipped with the best
tory and delivery costs for the cooperatives.” technology for taking, tracking and transporting cus-
tomer orders.” mt
Key People
One of the strongest advantages The Hillman Group
says it brings to the marketplace is its dedicated sales-
force and service organization. “As a company, service
is the hallmark of The Hillman Group,” the company ex-
plains. “The company employs the largest factory direct
salesforce in today’s industry.
“The depth of the sales and service team enables Hill-
man to maintain consistent call cycles, ensuring that
all of their customers will experience proper stock lev-
els and inventory turns,” the company continues. “This
team can also build specific planograms to fit the needs
of any store, as well as customizing programs that will
meet consumers’ requirements for pricing, invoicing
and computer needs. This unique group also benefits
from daily internal support from the inside sales and
customer service teams.
“We have a solid group of professionals whose dedica-
tion and teamwork form the backbone of our company,”
the company adds. “Hillman continually strives to hire
associates that meet our standards for interpersonal
skills and strong work ethic.”
Total Capabilities
Also providing The Hillman Group with considerable
strength in the marketplace is its infrastructure, which
consists of 11 manufacturing and distribution facilities
that are strategically located throughout North Amer-
products,” the company says. “We combine leading-edge of maintenance and longevity, nothing beats a custom
construction methods with high-quality components to air-handling unit.
produce AHUs that offer exceptional performance, qui- “Over the years, tremendous effort has been devoted
et operation and lasting value. ClimateCraft systems can to improving chiller efficiencies, as well as to achieving
comply with the high-velocity hurricane zone require- unitary equipment mandates for lowering energy usage,”
ments of Miami-Dade County and the Florida Building the company adds. “At the same time, airside products
Code, and meet the seismic construction and compli- have been widely ignored, so today there is tremendous
ance requirements of the International Building Code. opportunity for building owners to benefit from recent
In fact, ClimateCraft was the first custom air handling advances in that area.”
company to receive California’s OSHPD certification.” ClimateCraft says its solutions for air-handling pro-
The company’s manufacturing capabilities would not vide customers with energy-efficient and ecologically
be possible without the engineering expertise Climate- sound products and should prove to be the key to its con-
Craft brings to the table, and the company says it results tinued success for the foreseeable future. “By focusing
in products that go above and beyond for its customers. on total cost of ownership rather than on system cost,
“We’ve considered many common concerns about cus- and by factoring high energy efficiency and minimal
tomized air handlers, so we built an extra level of quality system upkeep into airside equipment maintenance
into each of our products,” the company says. budgets over the long term, building owners will realize
“For instance, knowing that vibration is an enemy to the benefits of investing in custom AHUs rather than in
the lifespan of a fan and motor, our FanMatrix design is standard options that may be less expensive in the short
not only balanced at the design point, but throughout term,” the company says. mt
the operating map of the fan curve and uses spring iso-
lation and greaseable motor bearings with the intent of
extending the motor life well past our standard five-year
warranty period,” the company continues. “Another
example, our MatrixMonitor, provides notification of
when motor bearings need to be greased based on op-
erational time and speed to allow for minimal, planned
maintenance when it’s convenient for [the customer’s]
facility. These features and benefits are just a few exam-
ples of the exceptional engineering that goes into every
ClimateCraft product.”
Suitable Solutions
ClimateCraft says its customized air-handling systems
are becoming especially necessary in a world where in-
door air quality and energy efficiency have become high-
er priorities for property owners. “Until recently, the
HVAC industry had been slow to change,” the company
says. “Modifications to codes, emphasis on reducing
energy consumption, and LEED and green building ini-
tiatives targeting net zero facilities have challenged the
industry to look for better ways to condition the spaces
HVAC systems serve.
“Reducing building system maintenance costs as
well as sustaining optimal performance over the life of
airside equipment is where the HVAC industry’s focus
lies today,” the company continues. “When it comes to
capital budgets, design flexibility, system integrity, ease
PREMIER
PLACEMENT
central michigan university gets a big nod from ford motor co., as the
company makes some major investments in attracting the university’s
top students.
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
and produce battery cases for GM The company maintains that and encouraging, working together
electric vehicles. That $12.5 mil- it creates a work environment in to improve performance with a mu-
lion expansion added 42 new jobs. which employees are engaged and tual obligation towards fellow co-
Missouri Governor Jay Nixon vis- cooperate with each other and are workers, Spartan Light Metal Prod-
ited the plant at that time and said, respectful, helpful, supportive ucts says. mt
“This exciting news from Spartan is
continued evidence of the rebirth of
the auto industry in Missouri and of
how our state fosters an excellent
climate for business growth.”
As a global leader in light-metal
technology, Spartan provides engi-
neered solutions and products to
major automotive manufacturers
such as Toyota, Ford, GM, Honda
and Volkswagen, as well as to other
commercial companies including
Hydro-Gear, a manufacturer of pre-
cision drive systems for the lawn
and garden industry. Spartan ships
its complex cast, machined and
assembled products to locations
throughout the country and inter-
national markets.
The company says it succeeds be-
cause of its outstanding workforce.
It is currently hiring for roles such
as CNC specialist, machining tech-
nician, preventative maintenance
technician, product engineer, qual-
ity engineer and lean site coordina-
tor in Sparta, Ill. Employee bene-
fits include medical and retirement
plans, potential performance bo-
nuses, profit sharing, insurance and
tuition reimbursement, among oth-
ers. The company also has an intern-
ship program.
Founded in 1903 as The Adjustable ture growth of the company. Pony Reaching the Market
Clamp Company by Adele Holman, Tools has spent the last 18 months Operating out of almost 100,000
Pony Tools has created a long tradi- rebranding the company. Market re- square feet in Chicago, Pony Tools’
tion of manufacturing high-end prod- search indicated that the Pony name manufacturing capabilities include a
ucts here in the United States. The had substantially greater consumer screw shop, press room for stamping
founder’s great-great grandson, Doug recognition than both the Adjust- parts, machining operations, auto-
Holman, is now the current owner and able Clamp and Jorgensen names. mated assembly and hand assembly
chairman of a company that is known The company also believed it must of various product families. Multi-
for its iconic Pony and Jorgensen do away with the limited “Clamp” ple international suppliers provide
brands in clamping and hand tools as nomenclature and adopt “Tools” parts and components utilized in fi-
well as its trademark orange color. to allow for greater product line nal assembly. Although a handful of
President and CEO Joe Krueger distinctions and extensions. From complete products are imported, the
came onboard in 2012 to lead a new there, Pony Tools was born. majority of tools are assembled in
management team as part of Doug “There was a real disjoint be- the Chicago factory with globally and
Holman’s vision for charting the fu- tween how well our company name domestic sourced components.
‘multiple generations
of employees worked
for us, and we’ve served
generations of con-
sumers. telling their
story tells our compa-
ny’s story.’ - Joe Krueger
Pony Tools serves retail distribu-
tors, retail store operators and end
consumers. Retail and distribution pony tools president and
ceo joe krueger (left) and
customers expect Pony Tools to be vice president of sales and
marketing dave madden.
the category leader and be on the fore-
front of innovation in new tools and hardware stores, and they rely on Pony working, Pony Tools provides prod-
merchandising programs that build Tools to manage the category,” Vice ucts and support for the experienced
excitement with the end users. President of Sales and Marketing Dave and skilled woodworkers as well as
“The category we supply is relative- Madden says. young consumers just coming into
ly small in home improvement and In its primary market of wood- woodworking. To reach this mar-
Adding to Excellence
Among the key investments being made into the orga-
nization are major investments into the company’s re-
branding initiative with new imagery, logos, point-of-
purchase materials and packaging design. The graphic
imagery not only evokes the time-honored traditions of
woodworking and the requisite mentoring that happens
from generation to generation, but it aims to engage
new audiences while capitalizing on its unique past,
having been founded by a woman in a predominately
male industry.
Additionally, the company just purchased its first two
CNC Swiss Screw Machines and will install them in the
first quarter of 2015. Additional machines will be pur-
chased in the second half of 2015. The screw shop will
be relocated in manufacturing with a new overhead han-
dling system being installed to manage raw materials.
Pony Tools is also implementing a new ERP system
and investing in new hires and adding talent to the orga-
nization. The ERP will go live in the second half of 2015.
The improved data and information will allow the com-
pany to better manage inventories, rate vendor perfor-
mance, drive more efficiencies and productivity in man-
ufacturing and provide timely information on customer
demands. Talent will be key to the company’s growth and
Wired to Succeed
conex cable says its clients can rely on it to deliver
their materials in a timely manner. by alan dorich
to manage its quality department, he says. “When I go out with our Bills predicts a strong future for
“We have a quality auditor that does representatives and agents to make Conex Cable. “There’s so much in-
an audit on the overall factory and a call, I tell them that one thing frastructure in the United States
provides feedback to help us achieve we’re really proud of is our service, that needs to be upgraded,” he says.
desired levels,” he says. especially in emergency situations.” “We hope to be part of it.” mt
The company also is implement-
ing Six Sigma techniques and tools,
Dobbel says. “Right now, [Conex]
is 4.4 Sigma,” he says. “I’m certified
as a leader in Six Sigma and I’ve got
two trained inspectors.
“At this time, it’s all under a very
studious situation,” he continues,
noting that Conex is constantly re-
viewing its past to see how it can im-
prove. “We [also] have implement-
ed the 5S program.”
Conex’s close relationships with
all of its suppliers also help. “We
work together jointly to improve
quality at all times,” Dobbel says, re-
calling a case when a client request-
ed more flexibility in its product.
Although flexibility is not the
first thing many associate with
steel, “We joined [together and]
worked on a very much improved
product,” he recalls. “We got full
customer satisfaction.”
The company also hones its work-
ers’ skills with training, Starr says.
“It’s a continuous process,” he as-
serts. “Whenever we come across a
situation where somebody falls be-
hind, we always retrain and review
progress to meet the required cus-
tomer demands.”
Company Environment
Bills, who has been with Conex since
1990, praises the company’s team
of 25 quality employees. “Since day
one, it’s been like a family,” he says,
noting that its modest size ensures
that everyone is focused on the
same goal.
“If we take care of the customer,
everything else will fall into place,”
Can-Do Attitude
At the core of Beckwood Press
Company’s corporate culture is its
ability and willingness to take on
virtually any kind of project, even
if it seems too challenging for most
others. “We tend to compete for the
projects that are higher in complexi-
ty, that require some customization
and tend to push the envelope in
terms of utilizing existing technol-
ogy or developing new technology,”
beckwood press company’s
in-house expertise gives it
Debus says. “Our general attitude is
the skill to solve customers’
difficult projects.
that we like the tough projects and
the challenges.”
One of the key advantages this diver- customers greater value. “What we’re relationships forged with Beckwood,
sity gives Beckwood Press Company is trying to do to offset that volatility and appreciate the expertise we can
the ability to use technology proven in is offer more products and more ser- bring to the table for a diverse set of
one market segment on a product to vices that reach out into our customer applications,” Debus says. “When we
serve another. Debus says being able base,” he says. can satisfy several individual needs
to demonstrate to a customer why an The company recently added a broad for a single customer, our 360-degree
unfamiliar technology or process can product line focused on the aerospace value is best on display.” Beckwood
work by providing examples from oth- market, which includes leading-edge is currently completing manufacture
er industries does a lot to convince and extrusion stretch forming presses, of a seven-press aerospace forming
many of them. “It allows us to put to- hot joggle presses and hydraulic ring package that includes multiple sheet
gether a tailored solution that has a expanders. The company has clearly hydroforming, stretch forming and
basis of proven technology and experi- identified a trend toward packaged hot joggle presses, which is slated for
ence behind it,” he says. solutions. “Our customers value the delivery in early 2015. mt
Branching Out
ESI North America Top tier manufacturers like Beckwood/Triform differentiate themselves by embracing technology
The volatility of many of the markets to meet the pace of customer innovation. For over 40 years, ESI has partnered with industry leaders like Beckwood/Triform
Beckwood Press Company serves has to eliminate costly tooling trial and error with Virtual Prototyping simulation software. ESI’s PAM-STAMP metal forming
solution is a key component in Beckwood/Triform’s rapid prototyping strategy, enabling “idea to part” in hours rather than
only become stronger in the wake of weeks. ESI salutes Beckwood/Triform’s commitment to speed, quality, and leadership in the metal forming industry, and
looks forward to helping Beckwood/Triform grow with simulations for hydroforming, hot forming, stretch forming, compos-
the recession. Debus says the key for ite forming and more. For more information, call 248-381-8040, email info@esi-group.com or visit www.esi-group.com
the company to survive is to offer its
Growing Business
Achieving high quality control is a never-ending goal for
Hoist Liftruck Manufacturing. “There’s always some-
thing you’re constantly monitoring and tweaking, but
we’ve got a very rigorous quality-control program that’s
abided by in the factory,” Kern says.
Both employees doing the work and their department
supervisor signs off that all work is free of defects and
meets all necessary tolerances. Finished machines are
inspected against a checklist, load-tested and signed off
on before being released for shipment.
Hoist Liftruck Manufacturing is in the second year
of a five-year, $925 million contract with the U.S. De-
partment of Defense for commercial material-handling
equipment. “We also have received what amounts to
a three-year blanket purchase order from a large auto
manufacturer to supply them with high-capacity fork-
lifts,” Kern adds. “We are the vendor of choice.”
The company is also increasing its international distri-
bution in Latin America, Mexico, Canada and Australia.
“We are trying to get more brand awareness and be one of
the first names that is thought of when somebody needs
to purchase a high-capacity forklift or container-han-
dling equipment, regardless of the country they’re locat-
ed in,” Kern states.
He attributes the company’s success to its entrepre-
neurial spirit and employee loyalty, noting that several
fathers and their sons work together at the company.
“We’re a privately owned company that started very
small and has always been self-sufficient and figured
things out on our own,” Kern says. “A lot of our employ-
ees are long-tenured employees, so we’ve got a lot of loy-
alty. It’s kind of grown as a big-family mindset.” mt
trol over the quality and lead times of its critical prod-
ucts. It’s also helped the company reduce rework and
Evolving Engineering
As Continental Hydraulics improves its manufacturing operations, it also has
scrap, resulting in cost savings. invested in its engineering capabilities. Its engineering staff has increased 60
“In 2012, our scrap dollars were horrendous,” O’Neill percent in the past two years, and the engineering department has turned its
says. “But we have cut that in half now and we contin- focus to working on new innovations and product development while maintain-
ing its strength in product maintenance and improvements. President David
ue to reduce scrap and make improvements. We’re still
Zimmer says the engineering group is addressing new trends in the market.
not satisfied and have more work to do, but our scrap “We’ve been working closely with our parent company on our new product
has come down incredibly in the last three years and our developments efforts,” Zimmer says. “One trend we continue to see in the
overall productivity and efficiency measures have gone market is the integration of electronics for improved control of the hydraulics
system. We are developing new valves with a faster response and expanding our
up year over year, sometimes 2 to 3 percent and as much
hazardous location valve portfolio which has many applications in the energy
as 8 percent. Some of our equipment is still new enough and marine market segments.”
that we are still fine-tuning them, so we will continue to
see benefits in 2015 from equipment purchased in 2014.”
In addition to equipment improvements, Continental O’Neill explains that the lean tool ensures Continen-
has made improvements to its company culture, as well. tal Hydraulics is focusing on the right objectives. “Just
Duplomatic has carefully introduced new management by doing that we’ve seen cost reductions in how we run
staff since it came into ownership. The management the business and how we make decisions in purchasing,
team has developed a culture of accountability where ex- scheduling and maintenance,” O’Neill says. “We’re find-
pectations are clearly defined and progress is measured. ing that those things are adding up to great returns on
Continental adopted the X-Matrix template as a lean our investment, as well.” mt
tool to help it plan key objectives.
“We’re getting numbers in at the end of the month,
making sure we’re hitting our targets and deciding cor-
rective actions if we are not hitting our targets,” Zimmer
says. “It’s building a fact-driven decision-making culture
for our company.”
continental hydraulics’
recent investments have
given it better control over
the quality of its products.
High Quality
plications,” Burr says. “We don’t do
anything automotive today.” Today,
sales are split nearly 50/50 between
commercial and defense customers.
loc performance’s diverse clients depend on it
for quality components. by alan dorich Adding Mobility
Loc Performance recently won a
For Loc Performance Products components and assemblies for contract for a large military pro-
Inc., the name of the game has been military and commercial applica- gram valued at $161 million to re-
vertical integration, President Lou tions. Founder Victor Vojcek start- store lost mobility to Bradley Fight-
Burr says. “Over the long term, that ed Loc Performance in 1971, in a ing Vehicles (BFVs). “They will
has been the backbone of the compa- 5,000-square-foot facility. regain mobility lost from added-on
ny’s success,” he declares. “We are There, the company manufactured armor and weapons during the Iraq
routinely adding new capabilities so machined components for automo- and Afghanistan wars,” Burr says.
we can offer our customers more.” tive power trains, including products This contract provides for Engi-
For instance, if there are manu- for NASCAR and private teams in the neering Change Proposal (ECP-1)
facturing processes that Loc Per- drag racing industry. Over time, Loc vehicle modifications, through the
formance does not have but needs Performance grew its customer base installation of Track Kits, Shock
to support a contract, “We’ll bring and built a 265,000-square-foot loca- Absorber Kits, Vehicle Suspension
[them] in-house,” he says. “We do tion in Plymouth. Support System Kits and Heavy
a variety of manufacturing opera- In the 1980s, the company moved Weight Torsion Bar Kits. The proj-
tions, [which are unique] for a com- away from the automotive market ect will “more than double the size
pany of this size.” and began serving the defense in- of the company over the next two
Based in Plymouth, Mich., the dustry, where it became the pre- years,” Burr says.
company is a full-service manu- ferred supplier for tracked vehicle This includes increasing its staff.
facturer of large CNC-machined suspension systems. Five years lat- Loc Performance currently employs
180 people, “But we’re in the process start a CNC training program for ma- include Keokuk Steel Castings Co.,
of hiring 50 more,” he says. chinists. “There is a shortage of CNC Loc Performance’s preferred foundry
Typically, Burr says, a project like machinists and we’ve got to train our for castings with military applications.
this is sole-sourced to OEMs. How- people in-house,” he says. “To do that “They definitely are a long-term, stra-
ever, the U.S. government has issued ourselves, we set up this program.” tegic supplier to us as it relates to our
new acquisition guidelines, includ- But the company’s training will not military business,” Burr says.
ing increasing competition and small be limited to CNC machining, Burr “Despite military spending being at
business participation. “We never notes. “Next year, at least two indi- relatively low levels, I anticipate Loc
would have won this new contract if viduals also are going to become black continuing to grow in the military
the Army wasn’t doing things differ- belts in Six Sigma,” he states. market,” he says. “We’ll continue to
ently,” he says. expand and diversify into more com-
Looking to Grow mercial markets as well.” mt
On its Own Burr joined Loc Performance in 2007
The state of Michigan recently award- after working in the automotive and Keokuk Steel Castings Co. Founded in 1934, Keokuk
Steel Castings has been serving our war-fighters for de-
ed Loc Performance a $400,000 grant banking industries. He is proud of the cades by supplying sprocket carriers, drive wheels, trailing
arms and many other configurations of steel castings that
for employee training, Burr says. company and its reputation as “the originate in our foundry. We have a complete laboratory,
“We’ve committed to hiring 95 em- sole source for the Army in terms of with X-Ray and non-destructive testing facilities. These
capabilities combine with our rigorous quality systems
ployees during the next five years as the M1 final drives,” he says. “We’ve to serve our domestic and international customers’ steel
part of that,” he says. been doing it for over 20 years.” castings needs in military and many other industries. Ke-
okuk Steel Castings: Where Integrity Meets Excellence.
The funds, he notes, will be used to He also praises its vendors, which
Custom Quality
Approximately 50 percent of Den-
ray’s machines are custom products
for its clients. “Some of the other
companies in our industry choose
not to custom manufacture, but it’s
something we specialize in,” Rayon
says. “I don’t mind designing equip-
denray sees itself as a ment for their applications.
problem-solver for its
clients, and takes pride in “We have built some weird appli-
that ability.
cations for clients that nobody else
“We’ll talk and find out what admits. “There are too many times make some rules and regulations
they’re doing and what they’re not people in the government do not un- that [gave us] some hoops to jump
doing,” he says. “Usually we can di- derstand why people go overseas to through,” he says. “[If ] they’re not
rect them in the direction where the see their equipment manufactured. careful, they’re going to be the de-
problem is no longer a problem.” “Too many bureaucrats tried to mise of all of us.” mt
The company’s hard work has paid
off, since much of its work is for re-
peat clients. “Thirty to 40 percent of
everything we make is for customers
who already have our equipment,”
Rayon says.
Looking Up
Since 1994, Rayon has continued to
attend trade shows and introduce
new equipment. “It’d always be
some piece of equipment that would
be cleaning related,” he recalls.
“Some were successful, some
where not, but I always showed up
until 2009,” he continues. “When
the bottom fell out, you couldn’t de-
velop anything.”
However, things are looking up,
Rayon asserts. “We’ve got some new
designs in the kettle now,” he says,
noting that these include new types
of filtration systems.
Denray also has escalated its
methods of educating dealers about
its products with videos and train-
ing. “We have got to educate the
dealers [to the point where they] see
the potential problem in their cus-
tomer’s facility and provide them
the solution,” he says.
It also will keep working under
tight government regulations. “Try-
ing to maintain business around the
government can be challenging,” he
machinewell specializes
in machining, welding and
Customer Base
fabricating for leading
manufacturers.
Polaris of Roseau, Minn., and Arctic
Cat of Thief River Falls, Minn., have
Recruitment Accomplishments
One challenge is attracting top talent. “In today’s econ-
omy, it is very difficult to find skilled people to work in
the shop,” Palm says. To overcome that challenge, Ma-
chinewell partners with local high schools offering a
nine-week school-to-work program.
Students spend an hour per day in each company de-
partment over a nine-week period. The company then
finances tuition for a two-year technical degree in ex-
change for a commitment to work at the company for at
least two years.
Enrollment to the program begins with an assessment,
which includes a student’s grade-point-average. Gen-
erally speaking, Palm has found the most successful re-
cruits are the ones with the best grades. “They perform
very well,” he says.
“Some of our employees have gone through that pro-
gram,” Palm says. “It has been very good for us as we are
in competition for people.” mt
several current employees
were recruited to work at
machinewell via a school-
to-work program.
PARTNERSHIP
PROGRESS
with a new agreement, two companies – one in canada, another in the
netherlands – are working together to help chemical producers
offer more sustainable products.
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Based out of Cambridge, Ontar- The company provides in-house From pre-automation services to
io, Eclipse Automation has become system design, fabrication, system project management and post-in-
a top supplier of custom automated integration and commissioning stallation support, Eclipse can as-
manufacturing equipment. The com- services. Eclipse also has extensive sist customers with project plan-
pany works with partners around the expertise in manufacturing technol- ning, design for manufacturing and
world in the solar, health sciences, ogy, including precision assembly, risk management. It also offers
transportation, consumer, industrial, robot integration, welding and ma- comprehensive post-installation
telecommunications and electronics terial-handling technology. support plans, including training,
industries. Its goal is to assist in the spare parts management, process
creation of efficient and profitable as- Fully Integrated optimization and long-term ser-
sembly and testing operations. Eclipse is focused on creating long- vice agreements.
Its Cambridge headquarters is a term relationships with customers, “As a vertically integrated auto-
vertically integrated, ISO 9001-reg- utilizing its end-to-end integration mation company, we strive to pro-
istered manufacturing facility that services to ensure success at every vide turnkey service and offering as
houses more than 175 employees. stage of an automation program. much in-house service as we can,”
Evolutionary Steps
Mai says different market segments tend to trend up
or down at different times depending on the prevailing
economic conditions. The company has taken a number
of steps to ensure it isn’t overly reliant on one sector or
another. In the early 2000s, the company was heavily ex-
posed to the automotive market before it diversified into
the electronics and industrial market segments.
From there, Eclipse evolved to serve additional market
segments. An acquisition in 2011 allowed the company to
grow quickly in the medical, energy and electronics mar-
kets. The company has since structured itself so it can
specialize in its wide array of market sectors.
“We have a lot of technology that we’ve either acquired
or created over the last 14 years, and to be able to use it
to its full capability requires rapid communication with
customers,” Mai says. “We must be able to show them
that we have the expertise needed for their specific proj-
ects from start to finish.”
Over time, the company has invested heavily into its
internal software. In fact, Eclipse’s own team wrote its
in 2007.
The company took control of the Leakage Protection ones that provide a tighter seal and
global sales, marketing, technical Triangle Fluid Controls markets to meet emission regulations. “We do
support and distribution for its gas- any industry that handles and pro- have some products that do that
ket and sealing products. “We do ev- cesses fluid or gas, including water, already, but we are trying to devel-
erything out of our plant here in Bel- steam and chemicals. The company op more products that can contain
leville for our distribution network mainly services the oil and gas, pulp all applications, with a particular
around the world,” Shorts says. and paper, chemical and petrochem- focus on methane gas emissions,”
Today, Triangle Fluid Controls ical and power industries. “What our Shorts says. “Triangle Fluid Con-
manufactures Durlon polytetra- customers ask for at the end of the trols serves a wide range of end-us-
fluoroethylene (PTFE) sheets and day are sealing solutions,” Shorts ers whose success depends on the
gaskets, water/sanitation gaskets, explains. “Leakage regulations are reliable performance of their equip-
flexible graphite sheet and gaskets, becoming tighter and tighter, so ment and piping systems.”
high-temperature sheet and gas- they are looking for a better solu- Unlike its competitors, Shorts
kets, low seating stress gaskets, tion to what they already have.” says the company does not have a
semi-metallic gaskets and metallic Due to stricter leakage regula- vast inventory of products to offer.
gaskets. The company also distrib- tions, Triangle Fluid Controls is “Our approach to the market is to
utes axial check valves for a major continuously working to modify its only offer what our users require
United States manufacturer. existing products and develop new to seal their applications,” he ex-
Keeping Pace
One of the main focus areas for Tri-
angle Fluid Controls is manufactur-
ing and becoming more efficient to
keep up with increased demand of
tighter sealing and gasket products. the company is focused on
becoming more efficient
“We are looking at processes in the to keep up with increased
demand of its products.
factory to help us stay ahead of the
growth game,” Shorts adds. example, raw materials are sourced a degassing stage for 24 to 48 hours
Manufacturing sealing and gasket from its business partners and then and is then cured. “The curing stage
products is a lengthy process, Plant molded. That entire process can can last 24 hours to four days de-
Manager Mike Boyd says. When take about 19 hours. Once that is pending on the product and what
manufacturing PTFE products, for complete, the product goes through we happen to be manufacturing in
PTFE products,” Boyd notes.
AGC FluoroCompounds Group
Triangle Fluid Controls then ap-
AGC FluoroCompounds Group Meets Global Demand for Custom Compounding plies Durlon to the material through
AGC FluoroCompounds Group focuses solely on the development, production and marketing of fluoropolymer compounds. a printing process and the product
Drawing from an extensive global supply chain of resins and fillers, AGC FluoroCompounds Group can produce any filled PTFE
or melt processable fluoropolymer compound customized to a client’s specific needs anywhere in the world. The group also
is cut into sheets to the customer’s
offers a wide selection of off-the-shelf compounds based on AGC Fluon® resins that can be used for increased chemical, wear specifications. “We have the ability
and creep resistance, toughness, lubricity, and thermal and electrical conductivity.
Through its advanced technology center with specialized resources and equipment for product development, AGC provides
and flexibility to provide sheets in
customers all levels of service, testing and support. Recently, AGC began operation of its pilot compounding plant, which varying lengths,” Boyd says. “That
improves efficiency in generating product samples with properties that match those of materials produced in full-scale produc-
tion. is a manufacturing advantage for
AGC supplies Triangle Fluid Equipment with PTFEs compounded with performance enhancing engineered fillers and pre- us and also helps our customers in
cisely matched pigments. Gaskets composed of these fluorocompounds are able to withstand high and sub-zero temperatures
and corrosive chemical media, while maintaining high pressure or vacuum. terms of their yield, which is pro-
For more information about AGC FluoroCompounds Group, visit www.fluorocompounds.com, which details Fluon products, ductivity and efficiency enhance-
compounding capabilities, testing and customer support services.
ments for them.”
m a -
terials for
the PTFE line.
we almost “Our experience and resourc-
operate made- es, combined with AGC Fluorocom-
A certain to-order.” pounds Group’s experience and re-
amount of customization takes place To stay efficient, the company im- sources, allows us to continually do
during the manufacturing process. plements lean manufacturing prin- what we do and seek out new oppor-
For example, Triangle Fluid Con- ciples that require fewer moves of tunities for products in the market-
trols manufactures five varieties product and people. One of the big place,” Boyd notes.
in its PTFE product line and each changes it made was to the layout of The company recently purchased
is geared for a specific application. its new plant in 2012, which now op- semiautomatic machines from It-
Within those varieties, the compa- timizes the flow of material through aly for its high-temperature spiral
ny can manufacture in various sizes. the facility. “It is laid out so the ma- gasket products, which allows it
“How we manufacture is driven by terial flows through and we aren’t to shorten turnaround times, per-
orders,” Boyd explains. “There are doing a zigzag-type pattern,” Boyd form quick changeovers and turn
hundreds and hundreds of combina- says. “By flowing from station to sta- out parts overnight – if required.
tions we can manufacture and that’s tion, less movement of people and “The added benefit of that capital
driven by customer orders.” products is required, so we can best purchase was that it also allowed
Triangle Fluid Controls does not utilize the labor resources we have.” us to bring contract manufacturing
stock a lot of inventory because it can from Asia back into our plant at bet-
manufacture products quickly, Boyd Better Partners ter-than landed cost,” Shorts notes.
says. “Our service is much better than Triangle Fluid Controls prides itself “It brings the manufacturing pro-
our competitors because we have on the top-notch relationships it cess closer to our own control.”
the flexibility to make quick change- maintains with its business partners, Moving forward, Triangle Flu-
overs,” he explains. “We don’t sit on including AGC Fluorocompounds id Controls is forecasting signifi-
a lot of finished product and as such, Group, the largest supplier of its raw cant organic growth that it plans to
achieve by continually investing in
its people and processes. “Year over
‘it’s laid out so the material flows through. by year we are looking at 15 to 20 per-
cent growth over the next five to 10
flowing from station to station, less movement of years,” Shorts says. “In our market,
people and product is required, so we can best uti- that certainly outpaces the growth of
lize the labor resources we have.’ - Mike Boyd the industry we serve as a whole.” mt
Paper of Valor
The company also continues its
history of innovation by innovat-
ing new paper solutions. After sev-
eral years of development, UPM
launched a new paper grade in No-
between its two geographic
divisions, upm produces
vember, called UPM Valor.
11.7 million tons of paper
products annually.
“UPM Valor combines our exper-
tise and high-quality materials,”
CH Robinson Use the skills of C.H. Robinson to Accelerate Your Advantage® in the global supply chain. A single that the properties of UPM Valor
instance, global technology platform, operated by logistics professionals, enables shipment optimization and data are similar to medium heavy-coat-
integration for a broad variety of industries, including produce sourcing. Customers obtain visibility to inbound
and outbound freight and details about their global supply chain costs that they may not be able to gather on their ed or lightly coated printing papers,
own. All of this simplifies the complexities of international trade for companies of any size.
depending on the basis weight.
Green Dedication
UPM Valor is part of a greater com-
pany initiative to create sustainable
products using sustainable process-
es. UPM designed a program called
More with Biofore. The concept
centers on creating more with less.
Through better material efficiency,
UPM seeks to create paper prod-
ucts using less water with less ener-
gy and generate less waste, thereby
giving products more economic
and environmental value. UPM’s
commitment to sustainability was
recently recognized by the Glob-
al Dow Jones Sustainability Index.
UPM was listed in the indices for
the third year in a row and this year
was listed as the industry leader in
the Dow Jones European and World
Sustainability indices.
“We have been assessed as the
world’s sustainability leader of our
industry and we can be very proud of
it,” CEO Jussi Pesonen says.
UPM assesses the sustainability
of every one of its processes, includ-
ing the origins of the wood fiber,
emissions from production process-
es, effluent treatment, energy con-
sumption, carbon footprint, water
consumption and chemicals.
“To continually improve the sus-
tainability of our products through-
out the whole lifecycle and value
chain, UPM has adopted the con-
cept of ecodesign as a systematic
approach in product design,” the
company says. “Ecodesign is an ap-
proach that takes environmental
factors into consideration in the de-
sign and development of products,
covering the whole lifecycle.” mt
Success Formula
airboss has cut costs and improved efficiency
under new leadership. by alan dorich
Getting Flexible
AirBoss recently acquired Flexible Products Co., a suppli-
airboss serves the
er of anti-vibration products to the North American auto- transportation, defense and
industrial markets with its
motive market, led by President Doug Reid. Both Schoch rubber-based compounds.
and Hagerman had a long relationship with the company,
which was once AirBoss’ sixth-largest customer. problems quickly,” Toppen says. “When [their clients]
Over the years, Toppen says, Flexible has benefit- get to the final launch and they have a suspension prob-
ed from its location in Auburn Hills. “It’s very close to lem, they’ll contact Doug and say, ‘Can you fix this?’”
where the R&D centers are for the Big Three,” he says. According to Toppen, Reid and Flexible have the ability
The company is also quite skilled at prototyping. to turn around parts in mere days. “He’s very good and has
“Their secret sauce has to do with their ability to solve a lot of ability for solving the problems,” Toppen raves.
By combining with Flexible, AirBoss can take Reid’s ex-
pertise in injection molding and mold finished products
for industrial applications. “It can be seals, railroad com-
ponents or a whole host of things,” Toppen says. “It is [a
matter] of understanding your strengths and leveraging
those strengths to the betterment of your customers.”
In the Business
Rubber compounds continuously evolve in the tire sec-
tor, Toppen says. This is due to the “tradeoff between
traction and rolling resistance,” he explains. “You can
always develop tires that can get 100 miles per gallon,
but they’ll be as hard as a rock. Or, you can have tires that
stick like glue, like Goodyear makes for NASCAR.”
For the average driver, AirBoss has developed a rein-
forcing agent using silica that can optimize the traction
and the resistance. But the process of mixing a trade
compound with it can be very taxing, he admits.
“It’s very aggressive in wearing out your mixers,” Top-
pen says. “Not only is the silica abrasive, but the chemi-
cal compound is very coarse.”
But the company has approached tire manufacturers
with the idea that AirBoss will take the task on itself.
“We’re having strategic conversations with them and
saying, ‘Let us do some of these for you,’” Toppen says.
“’Not only are we upgrading our mixers, you don’t have
to spend all the money to do it.’
“We can take a six-pass mix that a tire company would
do and we can do it in less stages be- compounds it is bringing to market. coming to him and saying, ‘Doug,
cause we know how to put this to- AirBoss wants global growth. we want to give you more business,’
gether,” he says. “Not only can we “The vehicle that is going to pull us so we are looking at various oppor-
have a value proposition that allows there is the Flexible acquisition,” tunities to add to our automotive
them to free up some capital, we can Toppen says. “Reid’s customers are business.” mt
do it more efficiently and pass on that
efficiency to them.”
Toppen predicts that AirBoss’
clients will focus their growth on
high-performance tires, and de-
mand will increase for ones made
with silica. This will make its facility
in Scotland Lake “more important
going forward,” he states.
our merchandising – investigates the market and its ten- rate culture, and the results have been effective. Turn-
dencies.” From there, Super Diesel applies the sugges- over remains low. Some employees have been with the
tions, along with designs from Meritor’s engineers, and company for 40 years. “Every year, we evaluate the ca-
adapts its product to meet new demands. “We have many pabilities of our employees,” Gonzalez says. “Between
different models of axles now,” Gonzalez adds. our employees and laborers, we have almost 160 people.
More than 90 courses have been given this year. It’s one
of our most important steps toward improving the capa-
‘every year, we evaluate the capa- bilities of our team.”
bilities of our employees. it’s one The extensive training is most assuredly one of the
of our most important steps to- elements Gonzalez is most proud of. Another he feels
ward improving the capabilties of strongly about is Super Diesel’s commitment to keep-
ing the environment as clean as possible. Super Diesel
our team.’ - Gerardo Gonzalez qualifies for Mexico’s “Clean Industry” (Certificación
de Industria Limpia) government certification. The
manufacturing plant contributes to the prevention of
The auto parts market is a competitive one, and Su- global warming by reducing its emissions to a level that
per Diesel constantly feels the squeeze, especially from is below the norm. Care is also taken to not contaminate
Chinese manufacturers. Gonzalez relates that the profit the municipal water. Emissions are reduced by treating
margin for this type of work is extremely tight. “Chinese the water before leaving the factory and reaching the city
companies present very aggressive competitive prices,” drainage systems. mt
he notes. Another economic factor is the price of steel
tube, which fluctuates and also leaves little room for
profit. “There are treated and untreated pipes,” Gonza-
lez explains. “We make a mix of both.” Green or virgin
steel tube can cost $1,600 per ton. Treated material can
cost $2,000, and there is little variation in prices among
different suppliers. “Our primary challenge is that we
are very dependent on the prices of steel tube,” he says.
Responsible Business
Earning more than $26 million in 2014, Super Diesel
splits its business equally between domestic and interna-
tional sales. While it does not sell directly to the custom-
er – Meritor handles all sales – the manufacturer remains
highly conscientious about the quality of its products to
ensure the best vehicle parts for its end-users. Super
Diesel is certified under ISO-TS 16949-2009. Moreover,
every year the company holds “Quality Week,” five days
of conversations, presentations and overall focus on the
importance of product quality.
“Every year we dedicate an entire week to focusing on
quality and another week to safety,” Gonzalez says. Safe-
ty is an important message the company wants to share
with its workers, and he believes that reinforcing the
importance of it throughout the year, as well as show-
ering employees with safety information during “Safety
Week,” helps reduce accidents.
Training is an important part of Super Diesel’s corpo-
packaging. Virtek LaserQC compares the finished prod- Iris SPS determines a work piece’s position in 3-D space
uct to a CAD file and produces a detailed report with all and projects a laser outline indicating exact placement lo-
the dimensions and deviations from tolerances. cations for parts – even on the most complex weldments.
Virtek LaserQC Automatic Form Measurement is a “It’s ideal for companies manufacturing heavy machinery
rapid inspection system that employs lasers to measure – earthmoving equipment, locomotives, ships and other
the accuracy of three-dimensional parts to tolerances of large-scale products,” the company says.
within 0.010 inches. It can measure a part’s height and An optional Verification Module uses Iris’ 3-D vision
raised features as well as from edge-to-edge or hole-to- technology to compare the CAD file with the position of
hole. The system can reduce scrap and rework and im- components placed on a weldment. If it determines that
prove profitability by pinpointing errors immediately on the component was placed correctly, a check mark is pro-
the shop floor. jected over the component. If it was placed incorrectly,
With the Virtek LaserQC system, two-dimensional an X is projected.
parts can be reverse-engineered. The LaserQC scans the This system provides instant feedback to the assem-
part in seconds – capturing all the required data – and bler, eliminates the need to check parts manually and
generates a CAD file. The software allows manipulation alerts users to assembly errors before they become cost-
of the scan data and part profile to optimize the quality ly. The module also generates reports that assist with
of the CAD model. The CAD file then is simply exported quality assurance documentation. These are just some
for post-processing or added to a CAD library. of the automation solutions that Virtek Vision Interna-
tional Inc. and Gerber Technology provide to many dis-
Construction Market tinct markets. mt
In construction, the Virtek TrussView system facilitates
truss assembly by projecting data associated with a truss
in production so everyone involved can visualize it and
has the necessary information – including work order,
truss name, quantity and key dimensions – to construct
it correctly.
The Virtek TrussLine system projects a laser template
of the truss to be built onto the work surface, highlight-
ing the position and shape of all truss joints and connec-
tor plates and eliminating the need for measuring, squar-
ing and stringing.
For assembly of wood panels, precast concrete or
steel, the Virtek Laser Template Generator projects a
laser template of the panel members onto the work sur-
face, showing workers how assembly should be done.
The Virtek LaserCNC system projects a laser template
of the finished part onto the CNC table to enable accu-
rate, fast positioning of the fixing components.
Welded Assemblies
The Iris spatial positioning system guides workers
through the assembly process by locating hardware in
3-D space, quickly locking onto CAD datum references
and employing lasers to project exact placement posi-
tions on the work piece. “Finally, parts are manufac-
tured exactly as designed without the expense and delay
caused by using templates, tooling and fixtures,” the
company says.
MILITARY
OUTREACH
the manufacturing industry knows it can benefit from a veteran’s
skills from the military, and hiring events aim to get job seekers and
jobs together.
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Staying Ahead
eagle manufacturing has been an innovation
leader for more than a century. by janice hoppe
Manufacturing Marvel
The other point of differentiation
for Eagle Manufacturing products is
that the company can make changes,
redesign or innovate a new product
quickly because everything is man-
aged in-house. “We take the prod-
uct from beginning to end, whereas
many of our competitors outsource the company can make changes,
redesign or innovate new product
their design and/or manufacturing quickly because everything is
manufactured in-house.
processes,” Eddy notes.
Because Eagle Manufacturing has cause we offer good jobs with fair 750,000-square-foot warehouse and
been in business for more than a pay and benefits, and once they start, manufacturing facility. The compa-
century, it uses older manufactur- they plan to retire with the company. ny’s goal is to ship orders within one
ing equipment to its advantage rath- “It’s great to have a lot of senior- to three days because customers de-
er than looking at it as a hindrance. ity, but it also means that about 50 mand the fast turnaround. “We have
“Synergy is the common thread that percent of our staff is 55 years or old- large products and a large inventory of
binds our new business to the old,” er, so we work closely with the mid- more than 1,000 different products,”
Eddy says. “Synergy between ex- dle and high schools, and commu- Eddy notes. “For example, we make 23
isting products and processes and nity and technical colleges to make sizes of safety cabinets in seven colors
new ones allows us to attack from a sure kids are interested in STEM and three door styles, requiring us to
position of strength in technology, education and in manufacturing,” stock up to 4,000 at a time, and that
manufacturing and marketing. In- Eddy adds. “I feel comfortable that takes a lot of warehousing space.”
stead of looking at old stamping or we are helping people understand To prepare for future growth,
deep-draw processes as a liability, that manufacturing has changed. Eagle Manufacturing will increase
we integrated a lot of automation The advanced technologies of to- its plastics manufacturing capacity
and PLC controllers to work in con- day’s manufacturing offer a lot of by 30 percent this year and will add
junction with the old equipment and new opportunities for kids starting 50,000 square feet to its main distri-
it works well. It’s very efficient.” their careers where they can use bution center beginning in January.
Although combining both old computer technology, robotics and Moving forward, Eagle Manufac-
and new processes is efficient, it automation. Manufacturing is not turing plans to double its export
can be a challenge to find laborers the same old dirty job they know business in the next three years. “I
with experience on the old machin- from their grandparents.” think that our strategic plan objec-
ery. “Fortunately, we are in an area tives are being met and we look to
where workers have stamping and Increasing Capacity see up to eight percent sales growth
welding experience from working Eagle Manufacturing acts as a mas- this year. I would like to see our
in the coal and steel industry,” Eddy ter distributor by stocking a sig- business grow 50 to 75 percent in the
says. “We have a very experienced nificant amount of inventory in its next 10 years.” mt
workforce here.”
Eagle Manufacturing has about 25 Pioneer Powder Coatings “It’s the Finish that Counts” has been the motto of Pioneer Powder Coatings for 20
years. As a custom formulator and manufacturer of OEM powder coatings, Pioneer produces the functional and dec-
employees with more than 40 years orative properties demanded across many industries. Personal service, application experience and timing programs
of service who the company can call put the finishing touch on Pioneer’s customer relationships.
With stock products and RALs available for next-day delivery and manufacturing capabilities from 100 to 40,000
upon to work on older machinery pounds, Pioneer satisfies the quality and delivery needs of OEMs, custom fabricators and professional coaters. Con-
or train new hires. Job turnover is sistent product quality proven over many years is the hallmark of Pioneer’s new manufacturing facility with processes
focused on industry-leading contamination control.
almost non-existent, Eddy says, be-
‘we take an aggressive approach to business op- nologies to provide document conver-
sion and electronic storage services.
portunities and typically don’t say no to a job, and Electronic waste recycling services
that has enabled us to grow and diversify.’ - Wes Tyler are provided in conjunction with Cy-
clePoint, a national network estab-
new markets,” Tyler says. “We’re like serve as a drop-off point for electronic lished by SourceAmerica, a national
any other company from a profit/loss recycling. The company will dismantle nonprofit organization. SourceAmer-
standpoint – if we don’t generate reve- and ship to Tier 3 recyclers, who then ica is one of two nonprofit agencies
nue, we will go out of business.” will complete the process. Phoenix established to carry out the federal
Several of the company’s commer- also recently partnered with docu- AbilityOne program, which provides
cial customers look to Phoenix to help ment management firm Doma Tech- jobs to more than 50,000 people
bring back jobs that they previously
outsourced overseas. “One of these Embroidery Solutions Manufacturing LLC The Gaffney Embroidery Division and its parent company, Embroidery
Solutions Manufacturing LLC would like to thank Phoenix Industries for the valued business partnership that our companies
companies – tote bag manufacturer have enjoyed for 20 years. Phoenix Industries Manufacturing Division has long been a quality conscious diversified manufac-
Haul Couture of Huntsville – previ- turer of textile products.
Gaffney Embroidery and Embroidery Solutions offer a full range of fully vertical Schiffli embroidery manufacturing
ously outsourced its sewing out to a capabilities. From the production of embroidered star fields for US flags for government and commercial end users, to the
intricate designs required for fashion industries such as home furnishings, decorative fabrics, intimate apparel and many
factory in Guatemala,” he adds. other embroidered fabric uses.
Phoenix Manufacturing recently We would like to express our appreciation and gratitude to Phoenix Industries for all they do in the pursuit of employ-
ment opportunities to the handicapped and disadvantaged in their community. We salute their business model and their
added to its capabilities. The compa- loyalty to the employees and trade partners that help contribute to their continued success.
ny’s manufacturing facility will soon
Quality Operations
All of Phoenix’s business offerings have one thing in
common. “Our biggest strength is our superior quality,”
Tyler says. “Whether it’s in janitorial services, ground
maintenance or our sewing plant, our quality is as good
as anyone else in the country.”
Products are inspected during production as well as
when they are completed. The company also tracks daily
productivity for each of its manufacturing operations. “We
try to continually improve our efficiency on a daily, weekly,
monthly and yearly basis,” he adds. “We are very hands-on
in our operations.”
Phoenix alone produces more than 85,000 inter-
ment flags annually. The sewing plant includes au-
tomatic single or double-needle sewing machines as
well as programmable machines capable of heavy or
light-duty sewing. Employees are placed on manufac-
turing lines based on their skill levels, and machines
can be modified if necessary. “Through job carving we
will find a way for the majority of our employees to ex-
cel within our workforce,” Tyler says, noting that em-
ployees are also cross-trained to fill in for others in the
event of an absence.
Phoenix employees take pride in their final products.
“We exceed our customers’ expectations,” he adds. “If
you were to ask the folks in our plant, that would be the
thing that they are most proud of.” mt
Machine Hearts
also commonly used as end-of-arm
tooling on robotic manufacturing
equipment. This particular appli-
cation of PDS’s products will be
precision drive systems keeps its customers’ emphasized by the company during
machining operations running. by jim harris its planned appearance at the Auto-
mate 2015 show in March in Chicago,
When it comes to machine tools, ing Bob Jewell says. “Typically when where they will display their spindle
the importance of the spindle – the someone calls us, it’s not because ev- product line. The company may also
rotating axis used in drilling, cut- erything is going great, but because partner with the integrators who
ting, milling, contouring, deburr- their machine needs repair. I’m hap- use its products on demonstrations
ing and polishing – is difficult to py that we’re able to do that for them at the Automate show, Jewell says.
overstate. A broken or inoperable and get them back up and running.”
spindle is a significant setback for The international company, head- Providing The ‘Right Tool’
its users, who lose productivity and quartered in Bessemer City, N.C. PDS can perform routine repairs
income during downtime. – located just outside of Charlotte, such as bearing changes and balance
For more than 18 years, Precision N.C. – provides repair and manufac- to spindles within three to five busi-
Drive Systems (PDS) has helped its turing services from both the North ness days. Although more complex
customers keep their machining op- Carolina facility as well as a PDS fa- repairs such as replacing electrical
erations running smoothly by repair- cility near Hanover, Germany, which windings or reverse engineering ma-
ing, selling and manufacturing spin- serves European customers. “One jor components can take longer, the
dles. “I’m most proud of the length of the most unique qualities of our company still typically provides its
of the relationships we have with company is that we have the ability customers with a better turnaround
our customers, many of whom we’ve to repair all makes and models of ma- than its competitors, Jewell notes.
worked with for our entire history,” chining spindles,” Jewell says, noting The company’s new spindle sales
Vice President of Sales and Market- that this includes spindles used to business includes offering a wide
forming, injection molding and ure- marily global manufacturers and are systems,” Executive Vice President
thane foam molding for automotive moving more to global platforms,” of Global Operations George Sanchez
and other markets. Curd says. “We’ve been able to leverage says. “We’ve made investments at our
The acquisition was important be- our customer bases and find new op- Wisconsin plant and our U.K. facility.
cause it allowed the combined company portunities to bid on projects through These investments have improved our
to establish a global footprint, servicing our global expansion.” cost of production and allow us to be
key customers in the U.S., Europe and Uniroyal’s other key investments more competitive in the marketplace.”
Asia. Currently, each company operates have focused on R&D and technology, Wherever it operates, the company
under existing brand names because of and it has also been investing heavily understands that it must get to know
the brand equity and customer loyalty in its plants to upgrade capabilities its customers’ businesses intimately.
within current markets. Although each and increase productivity. The compa- By understanding its customers’ man-
firm is heavily involved in the auto ny recently invested $2.2 million into ufacturing needs, Uniroyal can adapt
business, there is not a lot of overlap the Wardle Storeys plant to upgrade its formulas to best serve the custom-
in customers. Both companies have its facility and equipment. Increasing ers’ manufacturing processes.
extensive design and development productivity, decreasing costs, im- “Service, reliability and on-time de-
capabilities, and exchanging technol- proving services and staying competi- livery are important, and we commu-
ogy and sharing resources will allow tive are all critical for Uniroyal. nicate regularly with customers to be
the companies to develop and launch “We’ve upgraded and expanded our sure we understand their supply chain
more exciting product offerings. coaters with higher speed and effi- and production issues and can help
“Our automotive customers are pri- ciency and state-of-the-art control solve their challenges,” Curd says. mt
Student Parking
Recent projects for East Texas Precast Co. include the
West Gate Parking Garages in Katy, Texas, the Memorial
Hermann Parking Garage in The Woodlands, Texas and the
University of Houston Stadium parking garage.
The university sought a parking garage that would allow
it to maximize campus space for education and research
facilities. The structure also afforded the university an
opportunity to earn parking revenue. As the precast was
produced offsite, East Texas Precast Co. minimized con-
struction distractions to students and staff. “This garage
matches the campus and was given some final highlights
with additional signage,” the company says. “Its design was
optimized using precast to maximize parking spaces so that
it can provide parking not only for college classes but also
for sporting events.”
Why do clients such as the University of Houston choose
East Texas Precast Co. rather than others? “We have a large
production capacity and can meet their needs on the sched-
ule,” Romani explains. “So when they have a project that
needs to be done, we can meet and beat the schedule start-
ing on time and finishing either on time or early. Specifically,
Break it
Down
esco marine uses its
expertise to give old
vessels a new purpose.
by jamie morgan
it is in the employer’s best interest to educate and equip we get awarded a lot of ships so that tells me we run a
employees with proper safety knowledge and resources. good program at ESCO,” Jaross says. “We follow techni-
“When you have a company of 400 people you obvi- cal programs very carefully and most important there’s
ously have things that happen,” Jaross says. “But we have a good esprit de corps with ESCO’s personnel, which is
regular safety meetings and various safety programs in important to have in any business.” mt
place here to minimize injuries. All workers wear proper
PPE and take safety training for their particular job re-
quirements. You can teach people everything you know
about safety but the real responsibility lies on them, so
we help keep them aware of all the dangers involved and
we try to protect them in every way we can.
THE
RIGHT PATHS
the national institute for metalworking skills is supporting the high-
growth machining and metalworking industry by helping workers
improve their skills.
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Formula of Success
houghton international serves customers with specialty metalworking
fluids and services created specifically for their needs. by chris petersen
metallurgists, microbiologists and A key component of the company’s processes. For example, Bijlani says,
engineers give Houghton the know- process when working with custom- the company can help its customers
how it needs to work hand-in-hand ers to develop optimum solutions is identify and resolve areas of inef-
with customers to create high-per- Houghton’s emphasis on identify- ficiency from a metalworking fluid
forming solutions to meet their ing “pain points” within customers’ consumption point of view and de-
product, process, environmental,
health and safety requirements.
With all of these components in
place, Houghton remains solidly at
the top of the industry, and DeVi-
vo says its formula for success will
remain as consistent as it has been
throughout its history.
“The strong fundamental focus
on high-technology products, the
excellent commitment to serving
customers’ needs and expanding
globally to serve their needs … we’ve
done that for a long part of our his-
tory,” DeVivo says.
Value Proposition
Houghton has become a major force
in the specialty metalworking fluids
market because it supplies its cus-
tomers with a level of service that
many of its competitors can’t match,
according to Vice President of Glob-
al Business Development, Marketing
and Strategy Jeewat Bijlani.
“I think our first big strength and
differentiator is our ability to create
value for our customers,” according
to Bijlani. This ability to create value
comes in many forms, ranging from
improved part quality, to increased
productivity, to reduced tooling
costs; all leading to reduced custom-
er total cost of ownership.
Sasol Performance Chemicals has locations
in Germany, Italy, Slovakia, the UK, France, Belgium,
Spain, the Netherlands, Poland, Austria, Russia, the US,
Brazil, South Africa, Egypt, Dubai, China, Singapore
and Japan, including its corporate headquarters in
Hamburg, Germany. Our business consists of four
key business divisions: Organics, Inorganics, Wax and
PCASG (Phenolics, Carbon, Ammonia and Speciality
Gases). We market a broad portfolio of organic and
inorganic commodity and speciality chemicals as well
as high quality wax products and speciality gases, for a
wide range of applications in the industry.
houghton international
says it always strives to
help its customers be as
successful as possible.
Cutting-Edge
revamped conical cutting tools is emerging as a market leader following a
production, sales and marketing overhaul. by jeff borgardt
by manufacturing higher-
performance tools, conical
cutting tools saves money for
customers and adds value.
Conical Cutting Tools has not of the best approach to discuss prod- way so he systematically devised a
only been a leading manufacturer and uct benefits and features, he says. sales procedure that reduces un-
provider of carbide and high-speed When he acquired Conical Cut- needed communication clutter in
steel end mills to customers through- ting Tools, selling through distribu- the quoting and ordering process.
out the United States, but also one of tors remained a challenging process Improvements were also made to
the chief innovators and a trusted re- with much back-and-forth among marketing materials. Some manu-
source to the metalworking industry the customer, distributor and man- facturers provide sales literature or
since its founding in 1944. ufacturer, Shindorf relates. For ex- technical information but not both.
Management consultant Robert ample, oftentimes a customer would “We provide both and do it proper-
Shindorf purchased the business place an order through a distributor ly,” Shindorf says. Its 300-page cat-
in 2012 amid a slump in sales. He only providing the dimensions of alog features more than 3,000 tools.
reformed the sales process and im- the product. “That would not be With a better sales process in
proved the sales literature, techni- enough information, so the back and place and with the marketing tools
cal information and catalog. Sales forth would start,” Shindorf says. to support it, Shindorf then fol-
personnel are now properly advised He knew there had to be a better lowed up with a huge marketing
push. “We fully developed and tested all our products,” tia. It also has an interest in the Methodology Group, a
he states. “Each of our products has been designed to management consulting firm, and AxioDesik Strategies,
compete against all the major manufacturers. They sup- a mergers and acquisition service.
port tool lines but not high-performance tools. We de-
velop from scratch all high-performance tools with the Market Leader
latest and greatest geometries.” Conical Cutting Tools is best known in the market for its
Conical Cutting Tools’ new product lines feature thou- end mills, tapered end mills and specialty cutting tools.
sands of new tools, and premium end mills with high- “It has always been our mission to provide superi-
speed steel and micro-grain carbide. With a fresh, new or-performing products which solve complex machining
product line, Conical Cutting Tools leapfrogged ahead challenges for the metalworking industry,” the com-
of the competition that Shindorf says is still selling out- pany says. “We are dedicated to our customers and the
dated inventory they’ve stockpiled from past years. industry as a whole and combine ongoing, continuous
“We monitor stock on a daily basis,” Shindorf says. In- improvement processes with thousands of hours of new
ternal systems trigger appropriate inventory levels. “We tool development per year.” Conical Cutting Tools says
project three months of stock based on existing product.” its senior staff members have more than 250 years of
combined industry experience. “This lead-by-example
Best Price culture has allowed us to provide exceptional customer
Price is a top consideration among Conical Cutting service, build long-lasting customer relationships and
Tools’ customers. “Everyone is very, very concerned manufacture the highest-performing end mills and cut-
about price,” Shindorf says. “There is a price-to-perfor- ting tools in the industry.” mt
mance ratio you have to hit. We use all premium materi-
als and we are in that sweet spot. We have been able to
really streamline our internal operations so our price
point can compete with anyone out there. We are manu-
facturing higher-performance tools, getting more value
and saving price.”
Conical Cutting Tools saves money for customers
with its high-performance products. For example, if a
customer needs a 5/8-inch tool, it can often supply a 1/2-
inch tool to do the job. “We have a different approach,”
Shindorf says. “Everyone claims their product is the
best. People don’t believe it. We can save them money on
carbide with smaller lengths.”
Conical Cutting Tools also differentiates itself in its
production process. “We don’t use recycled-grade car-
bide,” Shindorf says. “Many do.” Conical Cutting Tools’
customers include Grainger Industrial Supply, gun man-
ufacturer Sturm, Ruger and Co. and NASA, he says.
“We are basically providing tooling to all the indus-
tries out there,” Shindorf explains.
In addition to being president of Conical Cutting
Tools, Shindorf is a managing member of Stone Fox Ven-
tures, a venture capital and private equity firm. The in-
vestment firm acquires, structures, manages and grows
underperforming and troubled middle-market manu-
facturing, distribution and service companies. Its other
interests include Lehigh Valley Abrasives of Lebanon,
N.J., and Allied Industrial Supplies of Halifax, Nova Sco-
Special Storage
military contracts, NASA, various
government agencies and munic-
ipalities. We still do a lot of work
for car enthusiasts, dealerships and
moduline modular aluminum cabinets can be specialty vehicles.”
utilized in many industries. by eric slack Gill and his team have established
a strong marketplace for Moduline
A story that began in rented space Quality and Innovation products by doing everything from
in Whitman, Mass., nearly 30 years Now based in 25,000 square feet in attending trade shows to engaging
ago eventually led to the creation of Brockton, Mass., GMF has grown in outbound sales efforts. At the
Moduline Modular Aluminum Cabi- into a multi-million-dollar sheet same time, the Internet age has sent
nets. Moduline grew out of the foun- metal shop that employs 30 people. many customers in Moduline’s di-
dation laid down by Gill Metal Fab GMF also provides engineering, rection. Repeat customers and word
(GMF), a complete precision sheet programming, design and precision of mouth are also responsible for
metal fabrication and manufactur- welding services, and it has high-vol- Moduline’s continued growth.
ing company founded in 1988. ume production capabilities, pro- “We’ve grown the brand a lot
“We pretty much started with totype and small-run expertise. Its over the last 10 years or so, and
nothing, doing various work, acquir- machinery is state-of-the-art CNC many people now know the prod-
ing some accounts and adding dif- manufacturing equipment, and the uct,” Gill says. “We work with cus-
ferent pieces of machinery,” owner company supplies precision sheet tomers to understand what they
Paul Gill says. “We basically did any metal and welded parts to many in- need. We have a standard product
type of work, from frame fabrication dustries including electronics, com- line, but we can also produce many
to precision sheet metal. The alu- munications, computer, lighting, different custom configurations,
minum cabinetry that is Moduline semiconductor and vacuum. especially in the specialty vehicle
first came out about 15 years ago and GMF’s goal is to manufacture and specialty cabinetry spaces to
grew from there.” high-quality components for its cus- suit a specific application.”
Continued Adaptation tion ensures that it is built to last and coming too saturated in one market.
Moduline regularly invests in its prod- operate effortlessly. The company always has opportuni-
uct line and manufacturing capabili- In addition, Gill says the company ties in the pipeline and looks to stay
ties. In 2013, the company introduced has invested in top-of-the-line CNC true to its commitment to Ameri-
the Moduline QuikDraw single-action equipment and automation solutions. can-made innovation.
latch system. It is designed to be so “Our vision is to become even more “We are always adding new features
easy to use that it can be opened with automated through software and and products,” Gill says. “We believe
one finger, even if the user’s hands are state-of-the-art machinery,” he says. in taking a very consultative approach.
full. When closed, the drawers stay se- As necessary, the company will We make products that we believe in,
curely latched with no worry of them consider everything from investing and we are problem-solvers for our
coming open accidentally, even when in a larger facility to bringing in new customers.” mt
they are used in mobile applications. equipment. However, Gill says the big-
The QuikDraw latch has a host of gest focus must be on people. Industrial Hardware Distributors family owned
and operated since 1978, has been serving the Truck Trailer,
key features such as the dual, inde- “Our people are the key asset we can Work Trucks, Trucks on and off-road, Sheet Metal Fabrica-
pendent latch mechanisms on both build,” he says. “We will train anyone tors, Agriculture, RV, Medical, Marine, Military, Construc-
tion, Enclosures and for a number of different industries
ends of the anodized handle. This fea- who has a willingness to learn.” for over 36 years. Today, we offer an extensive selection
of locks, latches, handles, hinges, bear claw latches, rotary
ture is unique because it doesn’t take Moduline will continue to succeed latches, drawer slides, draw pull latches, hold down clamps,
up valuable drawer space, leaving all as a product line because the compa- nema hardware, work truck hardware, key cylinders and
other products made from several high quality manufac-
that extra capacity for tools, parts and ny is versatile. By working in multiple turers that we represent.
equipment. Its high-impact construc- market sectors, Moduline avoids be-
Robot Revolution
work with its complex, high-per-
formance parts and sophisticated
processes. Human labor is more
difficult to control and a single mis-
force robots continues to develop cutting-edge take could scrap parts worth thou-
robots for manufacturing. by jeff borgardt sands of dollars, Somes explains.
“There is a very high cost for error,”
A National Science Foundation ufacturing market. Now, “We are he says. Humans, unlike robots, are
award gave Force Robots its start talking to other manufacturers in also prone to repetitive-motion
eight years ago, and the startup aerospace and the industrial sector stress injuries.
continues today with its mission about robots that do finishing work The company’s robots arrive at
to develop better robots for indus- on castings and machine parts,” the customer’s facility fully assem-
try. “Winning the National Science Somes says. bled and simply need to be placed
Foundation award enabled us to de- onsite. Installation takes less than
velop our prototype,” owner Steve New Frontier of Automation five minutes. Another advantage
Somes says. “We got it up and run- Force Robots’ products represent of this type of robot is that it can
ning and into a manufacturing facil- a new age of manufacturing robots work side-by-side with humans and
ity to show what it can do.” that use force to sense and perform doesn’t need to be cordoned off.
Its success finishing turbine their work. The technology allows “Conventional robots work in
blades for aircraft jet engines and manufacturers to automate pro- cells which must have everything
ground-based turbine engines drove cesses not possible with conven- built around [the robot] to con-
the development of a second-gen- tional systems. form and arrange to it,’ Somes ex-
eration robot for the broader man- The robots excel in aerospace plains. “This makes them inflexible
NEARING ZERO
the construction of the first high-speed rail system in the united
states is not only historic, but also important for its used of highly
advanced, low-emissions equipment.
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
It’s Electric!
tesla motors pursues its plan to transform the economy
starting with high-efficiency, electric vehicles.
Tesla Motors is steadily on the ily cars. This is because the overar- pany so R&D could go full steam into
track to achieving its not-so-secret ching purpose of Tesla Motors (and the second piece of the secret plan,
secret plan. In 2006, three years the reason I am funding the com- which was to build a luxury sedan
after the company was founded, pany) is to help expedite the move at a lower price point than the Tes-
Co-founder and CEO Elon Musk from a mine-and-burn hydrocarbon la Roadster. The result was the Tes-
divulged Tesla Motors’ true inten- economy towards a solar electric la Model S, which hit the market in
tions in a blog titled “The Secret economy, which I believe to be the 2012 and has received numerous ac-
Tesla Motors Master Plan ( just be- primary, but not exclusive sustain- colades. Now the company is prepar-
tween you and me).” It turns out able solution.” ing to enter volume production of its
that producing ultra-cool electric In 2008, two years after Musk Model X. Tesla Motors describes the
sports cars is not the plan but rather wrote those words, Tesla Motors Model X as “a crossover utility ve-
a byproduct of the plan. stepped onto the scene with the hicle that blends the best of an SUV
“The initial product of Tesla Mo- Tesla Roadster, which was step 1 in with the benefits of a minivan. As
tors is a high-performance electric achieving its secret plan – to design a stylish as it is functional, Model X is
sports car called the Tesla Road- high-end electric sports vehicle that a vehicle above category.”
ster,” Musk says in a blog post. can outshine gasoline sports cars
“However, some readers may not be like Porsche and Ferrari with twice Plan Upgrades
aware of the fact that our long-term the energy-efficiency of a Prius. As Tesla Motors continues to hop
plan is to build a wide range of mod- The cash flow from those sales were each stepping stone in its secret
els, including affordably priced fam- promptly reinvested into the com- plan, consumer demand for its
A Stronger Chain
the clorox company’s supply chain strategy and
leadership forum helps build its talent. by jim harris
The Clorox Company maintains
a dominant position in a number
of consumer product categories
such as cleaning and laundry prod-
ucts and is focused on accelerating
growth. For Clorox, an important
part of enabling growth is to contin-
ue attracting and retaining supply
chain leaders.
“The demand for top supply chain
talent continues to grow exponen-
tially, and demand is far exceeding
available supply,” says Mark Hersh,
the company’s director of supply
chain strategy. “We’re competing
with a lot of organizations for the
best people, so we need to keep de-
veloping our own people internally
so we have that talent.”
The company’s internal focus on clorox aims to attract leaders
in its supply chain who are
driving growth and increasing its broad-thinking and will help
the company grow.
market share even further also re-
quires supply chain employees to bring in new business, create new is offered annually to 40 senior sup-
have an expanded skillset. This fo- products and make changes to our ply chain managers on the univer-
cus is at the heart of the company’s portfolio, and we need people who sity’s campus. Clorox and Georgia
2020 Strategy, a major goal of which can do well in that environment. Tech jointly developed content for
is expansion into new categories, We’re creating supply chain ‘gen- the program.
channels and countries. eral managers’ who are people that “Georgia Tech is a prominent uni-
Clorox’s use of a value chain seg- have a strong understanding of key versity. Its supply chain curriculum
mentation approach also requires a industry trends, understand the was most recently ranked in the
broad skillset. The approach tailors market place and can apply this ex- top five by Gartner for overall pro-
supply chain design and capabili- ternal view into their daily work and gram and program scope categories
ties to meet the needs of individual thought processes.” across U.S. supply chain graduate
products and markets. These needs programs at major universities,”
include not only sourcing materials A Forum For Growth Hersh says. “Clorox also has a sup-
at a low cost, but also service, speed Clorox in 2011 began to seriously ply chain hub with a high number
to market, greater agility and over- address the challenge of developing of managers across multiple dis-
all responsiveness. supply chain talent when it devel- ciplines located in Atlanta; so it’s
“We need leaders in our supply oped its Supply Chain Strategy and great that we have Georgia Tech as a
chain who can think more broadly Leadership Forum (SLF) program. local resource.”
than in just one area,” Hersh says. The program, developed in partner- The first class was offered in 2012.
“Our plan for growth requires us to ship with Georgia Tech University, Classes are offered in two five-day
periods, one in late January and offered to junior supply chain em- ence and strategic persuasion and
the other in mid-March. Students ployees beginning in 2015. It will managing across boundaries.
work on assigned projects in teams cover many of the same topics, only The applied knowledge segment
between sessions. Although many within a single-week structure, involves dividing each class into
supply chain employees are based in Hersh says. seven project teams to work on ac-
Atlanta, at least 20 percent of each tual company projects. Each team
class’ attendees are from interna- Delivering Value has 16 weeks to complete a proj-
tional Clorox locations. The program’s curriculum focuses ect and then present a proposal to
Clorox ultimately plans to train on four elements: strategic think- Clorox’s Product Supply Executive
many more senior supply chain ing, operational excellence, lead- Committee, which includes all of
managers through the program, a ership development and applied the product supply organization’s
process that is anticipated to take knowledge. Within the strategic vice presidents and directors.
five years to complete. Two classes thinking area, students develop ca- “The immediate application of
of nearly 100 people have already pabilities in areas used to develop learning is what makes this program
graduated from the program. supply chains including value chain unique,” Hersh says. “Students
Although the SLF program is segmentation, collaboration and work on real-life business issues
intended mainly for supply chain network design. for Clorox applying the skills they
leaders, Clorox reserves seven or The operational excellence area learned in class. We take these rec-
eight seats for sales, marketing, re- focuses on operating areas including ommendations and turn them into
search and development, finance, inventory planning, manufactur- projects that drive value.”
IT and HR personnel. “This enables ing, process design, transportation The program’s goal is to be
cross-functional learning and pro- and distribution center operations. self-funded based on the value gen-
vides a forum to discuss concepts In the leadership development erated by the projects. One team’s
and issues through different lens- section, employees develop skills recent suggestions enabled the com-
es,” he adds. including change management, pany to put a more effective supply
Graduates of the program receive critical thinking, effective commu- chain in place for one of its product
continuous education opportuni- nications with executives, influ- lines, while another team worked on
ties monthly in the form of webi- a route-to-market options to more
nars, articles and other Web- effectively supply Clorox’s e-com-
based content. merce channel, Hersh adds. mt
A “lite” version of
the program will be
gcx’s 100,000-square-foot
facility in el paso, texas, is
Customer Satisfaction
designed for greater efficiency
and responsiveness.
GCX has two main sets of custom-
ers: medical device OEMs and hos-
monitoring, companies that include very high-quality product and reputa- totypes to engineers or products to a
GE, Philips, Drager and Medtronic.” tion,” he adds. “In some cases, a sale customer within hours of receiving a
GCX sets itself apart by caring about is as simple as us showing up because request. Its 30,000-square-foot facili-
its end users, and ultimately, the pa- the customer knows who we are, but ty in Taiwan handles assembly and dis-
tient, Dodele notes. “We feel the de- doesn’t know how to get our products.” tribution for the Asia and Europe mar-
tail and quality that goes into a GCX kets. All GCX facilities are equipped
product is unmatched,” he adds. “That Manufacturing Mounts with state-of-the-art quality control
culture starts at the top and is expect- GCX’s Petaluma, Calif.-based facili- labs that include Zeiss CMM equip-
ed throughout the company. The fact ty houses 120 people in two buildings ment for fast and accurate inspection
that we will take ownership and re- where the company performs the bulk of tight tolerance components.
sponsibility of the way our product is of its product design work, rapid re- The company is continuously devel-
performing 10 years after it leaves our search and development, machining, oping new products so it can keep up
doors says a lot to our customer.” and new product assembly. “This fa- with the market, but its products are
The company has a strong reputa- cility is key to getting our product to also designed so that similar platforms
tion in North America and is working market quickly,” Dodele says. can be utilized for several different
to grow its presence rapidly in Asia and The company’s El Paso, Texas facil- configurations. “GCX is constantly
Europe. Over the past several years, ity works on the bulk of its long-run looking for ways to improve, either by
GCX has invested heavily in its sales- production and reconfiguration en- enhancing its manufacturing capabil-
force and logistical support in those gineering. Its machinery is tooled for ity with new technology or by listen-
locations, Daugbjerg says. “We have a quick turnaround and can deliver pro- ing to its customers’ needs, which is
Increasing Efficiency
GCX recently opened a 100,000-square-foot facility in El
Paso, Texas where it performs final assembly of its prod-
ucts. “The facility is very lean and designed to be fast and
responsive to a customers’ needs,” Daugbjerg says. “The
place is designed around speed and reducing waste, not
around trying to reduce the number of labor minutes
that go into assembling a particular product.”
Dodele agrees that the layout of the facility is notewor-
thy because the company really focused on the manufac-
turing flow to make it highly efficient. “When you have
a big shell you can take a fresh look at all the different
things you do,” he adds. “We now have a full-scale ma-
chine shop with a total of 140 employees on the produc-
tion staff. As we continue to grow, we continue to exceed
our 99 percent on-time shipment objective.”
The El Paso facility includes state-of-the-art technol-
ogy that allows GCX to access information in real-time
and drive it throughout the organization, France ex-
plains. “We need that level of information system and
visibility so people on the line can make informed deci-
sions,” he says. “That’s a cornerstone for the building in
El Paso and our manufacturing organization.”
GCX plans to install solar panels at the El Paso facili-
ty to reduce operating cost and increase efficiency. The
company also has the space to expand, if the need arises.
“We have excess capacity in El Paso and a skilled work-
force there,” Daugbjerg says. “We have some amazing
people who are very empowered and passionate about
what they are doing. They are believers in American man-
ufacturing and we believe we can do better there than
anywhere else in the world.” mt
‘A Service Organization’
Quality and reliability have been
main focuses of Gruber Industries
for more than 30 years. “Since 1984,
Gruber Industries has provided un-
paralleled customer service and qual-
ity,” Korda says. “We strive every
day to manufacture or supply to our
customers the best products and ser-
vices available in today’s global mar-
ketplace. We consider ourselves first
and foremost a service organization
that sells solutions, not just products;
it’s the services we provide that drive
the products we produce and sell.”
Each of Gruber’s divisions spe-
cializes in a different aspect of the
focusing on quality and reliability,
each of gruber’s divisions specializes
critical power and data center in-
in a different aspect of the critical
power and data center industries.
dustries. In addition to its UPS re-
furbishing work, the Gruber Power
Gruber’s 35,000-square-foot manu- ber Technical Services, specializes in jobs we had in the pipeline, and Gruber
facturing facility in Phoenix. the design and construction of data Communication Products was born.”
Most of the company’s products are centers including cooling, critical pow- The company has plans to introduce
assembled by hand, with automation er equipment, access floor, structured new products, including an expansion
used only on processes that do not af- cabling and consulting and design. of its GPS Elite line of batteries, ini-
fect the form of the end-product. “For tially launched in 2010. “We are active-
example, we use an automated process Future Opportunities ly working on expanding the line to in-
to measure, strip, cut and otherwise Gruber Industries has a history of clude batteries for solar applications,”
process raw wire and fiber, which is growth within its product and service Korda says. “We also hope to someday
then hand terminated and pneumati- lines, which it continues to build on. be the first battery manufacturer to
cally crimped,” he adds. “This strategy “Many years ago, Gruber was primari- bring lithium ion and copper fusion
allows us to be extremely flexible in our ly an installer of data center structured technology into batteries and cables
manufacturing process while maintain- cabling and networking equipment,” for critical power applications.” mt
ing a reasonable degree of efficiency.” Korda says. “We suddenly lost a key
All of Gruber Communication Prod- supplier and found ourselves unable Leoch Battery Corporation has a full line of UPS
Critical High Rate Batteries. All of our UPS batteries have
ucts’ cables and other products are to meet our commitments. Instead of a 10-15 year design life and are IEC, UL and ISO certified.
custom-made. “Although many of our losing our contracts or scrambling to Leoch has sales offices on both the East and West coasts
in order to serve all of our customers with their battery
products are closely related, few are find new suppliers, we began manu- needs. Leoch is rapidly expanding and is now publically
identical,” Korda says. facturing the cables and patch panels traded on the Hong Kong Stock Exchange with a value in
excess of $1 Billion.
The company’s third division, Gru- needed to complete the installation
Ongoing Education
new concept technology is a single-source supplier of design, engineering,
process, fabrication and manufacturing services, but it also supports a
training center to keep the local workforce skilled. see page 84 for more.
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