Posts Tagged ‘Manufacturing’

A welcome farewell to the aughts

January 4th, 2010
By: Tim Heston

A year ago Troy Berg wasn't in a good place.

"I knew in January that 2009 was gone. Never in the history of my business have I had to kiss off a year in January & Now that we're through 2009, the hard cuts have been made, we've made a little bit of money, and those of us who are still standing are looking at 2010 to be a better year."

A few days ago Berg told this to a reporter for the Wisconsin State Journal. Berg is president of Dane Manufacturing, a precision sheet metal shop in Dane, Wis., north of Madison. His comment pretty much sums up where metal fabricators stand today: battered and bruised, cautiously optimistic (an overused phrase these days), and ready to take on a better year. Some are expecting strong growth this year, some foresee it taking several years before sales volume gets back to 2007 and 2008 levels, but most agree we've started the recovery.
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Joe Biden and a press brake

December 21st, 2009
By: Tim Heston

Rickey Moulder probably won't forget the workday he had Thursday. Moulder is press brake department supervisor for Impulse Manufacturing in Dawsonvile, Ga., and on Dec. 17 he got to explain a bit about sheet metal fabrication to Vice President Joe Biden. An Associated Press photographer even got a great shot of him holding a sheet metal part and standing next to a sign explaining the company's press brake operations. That's not something you see every day.

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The Catch 22 of collateral

December 15th, 2009
By: Tim Heston

Earlier this year, I landed at the Detroit airport en route to a conference. I got into my rental car, headed to the I-94 on-ramp, and then I saw it. There, next to the highway, was a big billboard advertising, of all things, a metal fabricator: "W Industries: Aerospace, Defense, Energy, Industrial."

Notice anything missing?

At the time, W Industries was making headlines. Local organizations were recognizing the company as one who successfully diversified outside automotive. And that was definitely something to flaunt in this economy.

But today, as the economy and credit markets get back on their feet, a wrinkle has been thrown into the diversity equation: the depreciation of assets. As Chris Kuehl, economist for the Fabricators & Manufacturers Association, Intl., wryly said during a keynote panel at this year's FABTECH Intl. & AWS Welding Show, "Now [the banks] are saying, 'Gosh, we expect you to pay the money back, and we're interested in collateral.'"

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All I want for Christmas is …

December 9th, 2009
By: Vicki Bell

Jobs—especially good paying jobs that can't be exported.

Well, that's almost all. I also want world peace and an end to hunger and homelessness. Then there's the climate. Oh, all right, I guess I want more than jobs, but it's beginning to look as though jobs—which certainly factor in ending hunger and homelessness—might be right up there with my other seemingly elusive goals.

Yes, the latest employment numbers are better than previous months', but let's see what happens after the holidays when seasonal help loses their jobs.

Earlier this week, I ran across an item on morganton.com, a Web site of The News Herald that serves Burke County, N.C. Vance Patterson of Blythewood, S.C.-based Patterson Fans wrote about why the U.S. needs good jobs that can't be exported.

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'Coming back slowly'

December 2nd, 2009
By: Vicki Bell

With all the buzz about Tiger Woods, you may not have seen the flurry of reports post FABTECH, such as this one that appeared in today's Rockford Register Star newspaper, that offer glimpses of where metal fabricating companies stand in the recessionary cycle.

According to the article, Farley LaserLab Vice President and General Manager John Johnson and his staff left the 2009 FABTECH International & AWS Welding show including METALFORM "with a bit of bounce in their steps, thanks to the optimism felt from potential manufacturing customers planning for 2010."

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Giving thanks & for cash flow

December 1st, 2009
By: Tim Heston

As my toddler sculpted her mash potatoes into something resembling, well, a lump of mash potatoes, I looked around at the Thanksgiving table. Smiles all around, not only because my daughter's so darn cute (no bias on my part, of course), but also because they knew they didn't have to clean up the mess. Still, the good food and good conversation got me thinking about how thankful I am for friends and family. I know, it's a hackneyed, Hallmark thing to say, but it happens to be true.

The next morning I opened the newspaper. Dubai World had taken a nosedive, and world markets were spooked. At that moment I thought of something else to be thankful for, something that probably isn't on any Hallmark card, at least not the mushy ones.

It's cash.

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It's about jobs

November 10th, 2009
By: Tim Heston

It's now one in 10, probably more. Take a walk and glance around. You'll probably see someone in need of a job. Within two blocks of my house, I know four who are unemployed—and those are just the neighbors I know.

The Labor Department's release, which pegged October's unemployment rate at 10.2 percent, caught many off guard Friday. Most thought the rate would reach that point someday, but not so soon. During the past year, durable goods manufacturing unemployment more than doubled, from 5.9 percent to 12.9, the highest rate of any sector the labor department tracks.

Break it down a bit more and the picture doesn't look quite as dire. In September 2008 the fabricated metal products sector employed 1.280 million; in October 2009 it was 1.275. And get this: Employment related to motor vehicles and parts actually increased by more than 4 percent. Could the sector finally be bouncing back?

I know I'm hunting for diamonds in the rough here. Heck, I'd be pleased with cubic zirconium at this point.

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Lean adventures continue

November 6th, 2009
By: Dan Davis

I think I recently experienced one of those "Ah-ha!" moments that metal fabricators undertaking lean initiatives have pretty frequently.

I was attending a meeting where the subject was improving communication between our ad sales team and our magazine production team. Incomplete and incorrect information was coming from the sales team, and the production team was not being prompt in responding to simple questions, which would delay the sales team's prompt replies to clients' requests. To be honest, personnel changes within our own organization have exacerbated this situation, but we are working through it as best as we can.

Well, the moment of clarity hit me when we began talking about the forms the sales team uses. Each sales person had his or her own version of them. We're talking about five different sales people each with a unique version of an insertion order, which is the permission slip to run an ad, and an ad change form to designate typographical and style changes to existing ads. Our production manager had to search through these many different forms to find the most basic information. Needless to say, she doesn't look at the whole process as an efficient one.

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The economy: It could be worse

November 3rd, 2009
By: Tim Heston

The status of Cummins perhaps best sums up the manufacturing economy at large. We may be on the rebound, but all of the unemployed aren't heading back to work tomorrow.

Last week the engine maker reported third quarter profits that exceeded expectations. Like so many, they got there by cutting jobs and inventory. According to a Bloomberg report, the company "cut about 7,500 workers, including fill-time and temporary employees, from late 2008 through June, and has since recalled about 900."

About 900? That's good & I guess.

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Reworking a codependent relationship

October 27th, 2009
By: Tim Heston

Did you hear? The automotive biz is rockin' and rollin'. General Motors—that's right, the same GM that trudged to bankruptcy court earlier this year—reported 2009 growth of 40 percent. Heck, the industry overall reported 90 percent growth in August. Simply amazing!

Oh, I forgot to mention: You have to move to China to join the party.

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