Posts Tagged ‘New Business’

Catching the wave of reshoring

April 28th, 2011
By: Dan Davis

I'm working on our FAB 40 editorial feature for June. It's a collection of 40 metal fabricating companies that have submitted to us their revenue figures for 2010, projected revenue for 2011, and outlook for this year. The listing provides a great snapshot of the overall health of the fabricating industry.

To no one's great surprise, fabricators believe that 2011 is shaping up to be a pretty good year, even in the face of rising steel prices and international turmoil. As several fabricators have told me, when you come from the depths of 2009, you have no choice but to believe things are looking up.

Amidst the positive feelings and cautious optimism, a couple of fabricators noted how they currently are working on jobs that previously were outsourced to China. One fabricator actually called the jobs part of a "trend" and included that work as part of the reason his company will see a 15 percent increase in sales for 2011. Another fabricator called his store fixture business a "growing segment" because of all the jobs coming back from China. (more...)

The need to adapt, no matter what happens

January 12th, 2010
By: Tim Heston

When I saw the words manufacturing and boom in one headline, I had to do a double take. An AllianceBernstein economist was especially optimistic, predicting that manufacturing may be gearing up for the biggest turnaround seen in 25 years.

"The evidence points to a 20 percent jump in output in the fourth quarter, as there finally has been an end to the inventory reduction process that has gripped the industry for most of the past two years," said Chris Kuehl, economist for the Fabricators & Manufacturers Association, in a Monday e-newsletter. "The key point for Alliance is that new order growth is far outstripping the current inventory levels, and that is a recipe for growth under most circumstances. If this trend holds, the economy is in for some solid numbers in the months ahead."

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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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'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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Wind power keeps going

September 18th, 2009
By: Dan Davis

The push to develop wind power sources has slowed a bit in 2009, but it's starting to gain momentum again, as attendees at the Fabricators & Manufacturers Association's Wind Energy Conference found out Sept. 15 in Elgin, Ill., at Mazak Optonics Corp.

Last year more than 8,400 megawatts of wind energy-producing turbines were installed across the U.S., which was a 50 percent increase over the year before. This firmly cements this country as the largest producer of wind energy in the world, according to Jeff Anthony, director of business development, American Wind Energy Association (AWEA), at least until China firmly jumps on the alternative-energy bandwagon.

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No guarantees…except death and the business cycle

September 14th, 2009
By: Tim Heston

The cover of Newsweek could be journalism school fodder for ways to stand out on the newsstand: "The Case for Killing Granny." That headline tugs at the soul, drilling down to the heart of the health care debate. The lion's share of health care costs in this country occurs during the final months and years of life, as doctors work valiantly to prevent our inevitable demise."

I have to be honest. Seeing the headline at a newsstand this morning made me take another direction with this blog. My first thought was to describe how the health care industry could learn a thing or two from lean and other improvement methodologies rooted in manufacturing. Doctors are paid by procedure, not results. The more tests they do, the more money they make. In manufacturing, it's the opposite. Fabricators strive to simplify. Simplifying parts, producing on demand, and making life easier for customers likely will garner more work in the long run ... right?

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No stimulus for manufacturing

August 17th, 2009
By: Tim Heston

Buried within the Institute for Supply Management™'s July Manufacturing ISM Report on Business® is a telling quote from a metal fabricator.

"No stimulus for manufacturing."

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This exciting fabricating opportunity won't last long …

July 24th, 2009
By: Dan Davis

Wanna talk about health care? Not really. The thought of a discussion gives me a headache, and I don"t think I could get around to seeing my doctor until next Tuesday.

Wanna vilify China? I"ve got be careful on this one. I think a company from China actually owns my mortgage now.

Wanna bash illegal immigration? I think people would be quickly bored about my disdain for Latverians.

What about the economy? Well, since you asked &

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760 manufacturing companies

July 17th, 2009
By: Tim Heston

That number bounced around the blogosphere this week as CIT teeters on the brink of bankruptcy. CEO Jeff Peek told news outlets that 760 manufacturing companies could shut down if CIT collapses. And then comes the ripple effect, which is even scarier.

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Innovators, gumption, and tenacity

June 29th, 2009
By: Tim Heston

This country seems to be itching for the next big thing, those game-changing innovations that drag us out of our economic malaise. General Electric Co. CEO Jeffrey Immelt knows this, and it's why his company announced a $100 million investment in an R&D center 25 miles west of Detroit. As the AP reported over the weekend, the center will employ about 1,200 engineers and scientists.

It's been awhile since we've seen true game-changing innovations out there. The last real innovation came with the personal computer and the dot-com era that ensued. During the past decade we've had "financial innovations," and we all know where those led. I equate these complex financial instruments to fancy motor oil. You need oil for an engine to run, and good oil may make a good engine run even better. But if we have a poorly designed engine, it doesn't matter how good the oil is; the thing eventually just will fall apart.

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