Posts Tagged ‘recession’

It is not just business

April 23rd, 2013
By: Tim Heston

Troy Berg, president of Dane Manufacturing, a contract fabricator in rural Dane, Wis., attends equipment auctions not just to find a deal on equipment, but to learn. With success comes confidence and determination; with failure comes soul-searching, self-scrutiny and, quite often, unfiltered truth.

Berg has gotten quite a bit of truth. This morning, he told me of an auction visit in 2007 to a large fabricator on the West Coast. It was an unusual opportunity, because only half the shop was shuttered. He and other fabricators were in an idle portion of the shop full of lightly used, high-quality laser cutting machines, press brakes, and high-end material handling. The other half of the floor was still humming. Punch presses, lasers, and the buzz of welding arcs permeated the place.

Berg didn’t buy anything, but he did see a man in a blue maintenance shirt, and he walked over and introduced himself. They started chatting. Then Berg, like a true investigative reporter, dove in and asked the question: “So what the heck happened here?”

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American business success: Optimism peppered with pragmatism

March 19th, 2013
By: Tim Heston

So said Don McNeeley, president and COO, Chicago Tube & Iron Co., and professor at Northwestern University, speaking Feb. 27 at The FABRICATOR’s Leadership Summit in Palm Harbor, Fla.

After conversations with various fabricators since then, most tend to agree with him. Business is OK, not great, but big things may be on the horizon. One attendee said she was working through a massive pile of request-for-quotes and was wondering how she was going to get through them all. That’s not a bad problem to have. The recession purged many local markets, and fabricators that performed poorly (or were just unlucky) fell by the wayside. Now OEMs and top tier suppliers are calling on top-performing fabricators to deliver the goods.

Meanwhile, before this week’s troubles thanks to the mess in Cyprus, the stock market pushed into uncharted territory.

“The markets are nuts.”

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Producing more versus hiring more

April 17th, 2012
By: Tim Heston

A few weeks ago Rob Olney, president of ETM Manufacturing, a contract metal fabricator in Littleton, Mass., told me something that exemplifies what makes people proud of American enterprise. But it also worries people who need a lower unemployment rate to get re-elected.

“[Since 2006] we’ve tripled our annual sales and less than doubled our personnel.”

Olney and other managers of successful fabricators--the “winners” emerging from the Great Recession--had good foresight in 2009 and 2010. They reduced waste, especially work in process, and invested in equipment that sped work flow and reduced lead time. They’re producing more with fewer people. The result: Sales are soaring; hiring, not so much, and (most significant) neither is overtime.

Mark Chadwick, a manager at St. Louis-based CR Metal Products, called this phenomenon “painless growth.”

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Busy times, busy shops

January 24th, 2012
By: Tim Heston

I started this year with a spurt of shop visits-- a sorry excuse for my lack of blogging, but there it is. One high-mix, low-volume job shop is beginning the process of reorganizing its machines into cells: a sheet metal cutting machine next to a brake, next to hardware insertion. In a bold move, the company has eliminated its cutting, bending, and hardware insertion departments. Managers made sure that workers are cross trained, so they can follow piece parts through all three processes before sending a batch--a small one, as close to single-piece-part-flow as practical--to operations downstream.

Here’s the kicker: The shop did it all with no holiday shutdown.
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President Obama and the Stamping Press

June 8th, 2010
By: Tim Heston

Business owners in the metal fabrication industry are getting to be old hands at hosting top dogs from Washington on both sides of the political aisle. Several years ago President Bush visited Fox Valley Metal-Tech in Green Bay, Wis., and gave a speech. Last year Vice President Joe Biden visited Impulse Manufacturing near the North Georgia Mountains and made a speech. Then last month President Obama visited Industrial Support Inc., a contract metal fabricator and stamper in Buffalo, N.Y.—and, yes, made a speech. It was great watching the president talk with a 45-ton Niagara stamping press just behind him.

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