WWW.BUSINESSREVIEWUSA.COM
JULY 2015
BUILDING BRIDGES WALSH CONSTRUCTION CO. TAKES ON THE DOWNTOWN CROSSING
WHY KODAK AND POLAROID LOST THE PHOTO MARKET
TOP 10 Business Schools for Supply Chain Management Louisville-Southern Indiana Ohio River Bridges Project
DIRECTOR’S LETTER
LETTER FROM THE DIRECTOR This month’s issue is all about forward progress, so it seemed fitting to feature a project being constructed under the watchful eye of Chicago-based Walsh Construction Co. on the cover. The $860 million Downtown Crossing Project, which will add a new six-lane bridge to the I-65 crossing and streamline the Kennedy Interchange, is part of the Ohio River Bridges Project. The joint venture between Kentucky and Indiana is meant to build new pathways across the river and refurbish existing bridges. Companies that wish to continue progressing must maintain a fresh perspective on market trends. While recruiting new hires may seem to be a simple solution, every exec knows that finding the right candidate can be a daunting – and often disappointing – process. Those within the supply chain sector can breathe a sigh of relief this month, however: Our Top 10 feature reveals undergraduate programs that specifically prepare future leaders for a successful career within this industry. Also included in this issue is a technology feature by Nero Managing Director Daniel Benz, who offers a unique perspective on the comeback of CDs and DVDs for today’s corporate storage needs, surmising that “old” innovations do not equate to irrelevant innovations. The need for continued progress can be best appreciated when the path to success is understood— what has worked and what has not. With a nostalgic nod to this path, we take an in-depth look at the decline of Kodak and Polaroid as brand leaders within the photo market. By revealing key factors in the decline of these once gamechanging companies, Business Review USA highlights five tips for managing innovation and remaining industry-relevant. ENJOY THE ISSUE!
Jennifer White
Director of Content jennifer.white@wdmgroup.com
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CO CN OTNETN ETNST S FEATURES
6 Leadership
Why Kodak and Polaroid Lost the Photo Market
12 Technology
Storage solutions in the age of the company-wide hack
COMPANY PROFILES CONSTRUCTION
MANUFACTURING
26 Walsh Construction Downtown Crossing Project
60 ArtiFlex
36 DPR Construction BioMarin Expansion Project 44 Walsh Construction Olson Pavilion at Lutheran Home Project 52 Hessert Construction Group
MINING
18 Top 10
Business Schools for Supply Chain Management
26 Walsh Construction Downtown Crossing Project
70 Nevada Mining Association [Association] 76 NYRSTAR Tennessee Mines
ENERGY 88 Philadelphia Gas Works
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Hessert Construction Group
4 July 2015
18 Top 10 Business Schools for Supply Chain Management
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ArtiFlex
88
Philadelphia Gas Works
5
LEADERSHIP
WHY KOD POLAROID PHOTO M
5 TIPS FOR MANAG W R I T T E N B Y: A N K 6
July 2015
DAK AND D LOST THE MARKET
GING INNOVATION USH CHOPRA 7
LEADERSHIP WHY DO SOME firms become master innovators while their brethren struggle? We can learn the answers by examining the success and ultimate failure of Kodak and Polaroid. Here are five lessons from these companies on managing innovation: 1. Relentlessly focus on customer needs: Kodak rode the wave of film roll photography because it made photography convenient. “You click, and we will do the rest,� epitomized the innovation focus of Kodak for almost a century. Over the first 25 years, Kodak beat every other competitor by its relentless focus on the innovation that mattered the most for its success. 2. Treat tunnel vision as a great friend: A race car driver is so focused on the track that he develops a tunnel vision wherein everything, other than the immediate road ahead, becomes invisible to the eyes. This is what makes him successful. This is why Kodak dominated the photography world for 100 years, by continuously improving the film. For the most part, tunnel vision is not a disability for organizations but a tool for survival and success. So when you find yourself frustrated with lack of major innovations, know that your business 8
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Digital image, a picture of the presen depends on same-old same-old innovations for success. 3. Know when tunnel vision is the enemy: When the car race moves from a race track to a dirt track the good old friend tunnel vision becomes a liability. This happens to firms too. Kodak and Polaroid continued with their
nt tunnel vision even after the advent of digital imaging. While customers were looking for better digital cameras, Polaroid was busy innovating with printers on top of cameras and Kodak was busy making photo CDs. Knowing the difference between when tunnel vision is good and when it is bad
can make you a far more effective innovator. 4. Don’t view the future with a rosy lens of past capabilities: Often, what made you successful yesterday will also make you successful tomorrow. Unfortunately what makes you successful can also often eventually 9
LEADERSHIP
Polaroid ignored the digital imaging revolution memo
kill you. What made Kodak and Polaroid successful in 1960 were the same capabilities that made it successful in 1970 and 1980. Polaroid thought that people would continue to need instant prints and Kodak thought that consumers would continue to value great prints. They were right until 10
July 2015
the mid-1990s. After that a new set of capabilities became the key driver of success. Since film majors continued to rely on past capabilities for future innovation success, their performance began to decline and they eventually had to exit. 5. Focus on profit impact of
WHY KODAK AND POLAROID LOST THE PHOTO MARKET
innovations: Just because you have a great innovation doesn’t mean it will also help you make money. When an innovation destroys your profits instead of enhancing profits, you will not want to launch that innovation. This is exactly what happened with Kodak and Polaroid. Digital imaging threatened to reduce their profits. As a result, in spite of great products, they did not find the will to aggressively commercialize them in the market. This lack of will is understandable. If they had looked at the profit impact of innovations early on, they could have transformed the innovation. But they took too long to start thinking about profit impact and thus were left with too little time to convert a profit destroying innovation to a profit creating innovation. The core reason for their decline, and end, was their inability to think about profit impact of the innovation. Don’t make the same mistake. In the end, the innovation success depends not just on these five tips but on how you incorporate them cohesively into an innovation strategy. Do you have an innovation strategy that incorporates the above five learnings?
More about the author Dr. Ankush Chopra is an innovation expert with nearly two decades of experience in leading and enabling transformations across the globe, including projects within Citibank and Proctor and Gamble. He is a Professor of Innovation at Fribourg School of Management, Switzerland and former Assistant Professor of Management at Babson College. His research focuses on issues such as overcoming challenges of innovation and transforming business and organizations. Dr. Chopra has a Ph.D. in Strategy from Duke University and an MBA from Indian Institute of Management, Bangalore and received his under graduate degree in Commerce from Delhi University. Dr. Chopra speaks four different languages, has lived in Asia, India, Europe and America. He can be reached at AnkushChopra.com. His new book, The Dark Side of Innovation, is available for purchase at Amazon.com as well other fine booksellers.
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TECHNOLOGY
STORAGE SOLUTI OF THE COMPAN
If you believe recording CDs and DVD W R I T T E N B Y:
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July 2015
IONS IN THE AGE NY-WIDE HACK
Ds are a thing of the past, think again DANIEL BENZ
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TECHNOLOGY MARKETS ARE LIVING organisms and, as such, they develop a mind of their own. This market independence is not always favorable for the participants yet can be seen on a daily basis, especially in highly volatile segments such as the financial sector, the stock market and the information technology sector. In the IT sector, this volatility is often a shock, especially to those not accustomed to the fast dynamics of the market. One of the most surprising aspects is the speed with which established concepts are thrown overboard, thus becoming (seemingly) irrelevant. Technological advancements from yesterday – those that cost time, energy, creativity and money to develop – are often today’s ugly duckling, regarded as “dated” and no longer relevant—and certainly not innovative. Many believe that this pattern is simply part of the business, referring to ever-shortening life cycle of technology. In many industries, especially IT, there is a clear emphasis on innovation; a desire to make people believe that existing solutions to 14
July 2015
Tomorrow’s smartphone will be more l personal assistant who knows us well certain problems have to be revised and reinvented, even when the high level of excellence has already been achieved. If the wheel had been invented by the IT market, industry insiders who are evangelicals when it comes to the necessity of progress probably would have soon declared the wheel “outdated” and moved on to
like a
something else. It can therefore happen that a crucial part of the market is unable to see beyond certain limits, thus missing important nuances. For example, what would happen if, in the real world, the great majority of people – the group we usually call “the market” – simply continued to use round wheels instead of moving on to new triangular or
multi-angular “wheels”? It is easy to understand the reason for this behavior. 1. There is little room for further substantive innovation in technologies that have reached a level of state-ofthe-art. Minor improvements are all that are left. 2. Once a state-of-the-art technology becomes an industry 15
TECHNOLOGY
Nero Burning ROM
standard, people have a tendency to feverishly create “improvements,” looking for ways to innovate the innovation. I will give an example from my own company to illustrate this phenomenon. Since the second half of the 1990s, Nero AG has designed most of the technology that you have used to record music, video or data on CDs, DVDs and Blu-rays. The name of our first product, Nero Burning ROM—a play on “Rome” and “CD-ROM”— was so successful 16
July 2015
that “burning” became a synonym for recording data to CD and DVD. Almost everything has changed since 1997, and our own products are completely different. However, within the multimedia software suites Nero sells today, the disk-recording module is still unbeatable: It is the new and improved “wheel.” This example serves to prove that technology from the past can be – and in this case, is – still relevant today. In addition to a renewed public interest in analogue media, i.e. LPs and cassette
T H E A G E O F T H E C O M P A N Y- W I D E H A C K
tapes, there is also a growing demand for the more advanced recording formats such as MP3 and related technologies as well as demand for data storage on optical discs. Sectors such as defense, public safety, health care and education, where large amounts of sensitive data need to be safely archived, are key drivers of this renewed interest. With the ever-increasing risk of cyber attacks, theft of sensitive military data or the loss of confidential patient information, for example, the
use of simple and secure “offline� data storage equipped with access protection is vital. There is no other solution that is both simple and safe at the same time. Simply put: Disks can be kept away from hackers and spies. *Daniel Benz is the managing director of Nero EMEA sales GmbH, vice president of sales for Nero in Europe, the Middle East, and Africa (EMEA), and oversees all retail, volume licensing, and online sales divisions within the region.
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TOP 10
TOP 10
BUSINESS SCHOOLS FOR SUPPLY CHAIN MANAGEMENT
Teaching young leaders the science of moving busin Written by: Tomas H. Lucero
ness
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TOP 10
Some executives make it look easy, but we all know that business is more complex than the final transaction. Behind that transactional moment is a whirl of activity, personnel, and machines that make it possible and drive our economy. One of the most important segments of the enterprise called business is supply chain management and logistics. At its core, this is the segment responsible for the flow of these transactions; this is the segment that ensures things circulate within the system and reach the appropriate destination in a timely and effective manner. It takes a special type of talent to become a leader in supply chain and logistics, and a special type of education to hone the necessary skills. According to U.S. News, the following 10 are the best in the country at doing just that.
10 20
Krannert School of Management, Purdue University
July 2015
T
Location: West Lafayette, Ind. The Krannert School of Management offers students more than a generic major. With eight specializations that double as majors, graduates are much more prepared to jump right into the industry than most others. Coursework for those who choose to major in supply chain, information and analytics includes common management curriculum in addition to a specialty of his or her choosing, including supply chain and operations, management information systems, or business analytics. As stated on the institution’s website: “Supply chain and operations professionals look for ways to maximize efficiency in production processes.� This program not only understands this concept, it looks to support and preserve it. View of the fountain on the campus of Purdue University, West Lafayette
T O P 1 0 B U S I N E S S S C H O O L S F O R S U P P LY C H A I N M A N A G E M E N T
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Robert H. Smith School of Business, University of Maryland Location: College Park, Md. Similar to other schools on this list, the University of Maryland steers away from a general degree in business and instead places emphasis on specialized curriculums—one of which, of course, is a major in supply chain management. For the Robert H. Smith School of Business, the goal is to produce graduates that are fluent in modern supply chain software, positioning them as experts in reducing inefficiencies in any supply chain, end-to-end.
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Ross School of Business, University of
Michigan Location: Ann Arbor, Mich. The University of Michigan’s Ross School of Business offers a Master of Supply Chain Management degree. The school views supply chain management as a holistic function of business, as it touches multiple departments within a company, such as inventory, marketing, customer services, and more. Students are offered a fellowship through the Tauber Institute for Global Operations, as a partnership between Michigan Ross and UM’s College of Engineering. Each student participates in a paid consulting project, expanding their classroom experience with a real-world business situation.
07 Entrance at the U of M. Photo carmichaellibrary and Shutterstock.com
The Tepper School of Business, Carnegie Mellon University Location: Pittsburgh, Pa. 21
TOP 10
The Undergraduate Business program offered by Carnegie Mellon’s Tepper School of Business is among the world’s elite programs for both general business education as well as specialized programs, including Supply Chain Management. The success of this program is rooted in its rigorous academic curriculum. Rich in the analytical aspects of management, this program’s coursework combines broad liberal teachings with
CMU was founded in 1900 and according to ARWU rankings is the 49th best university in the world
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hands-on experiences, thus to providing a complete education for the development of each individual student. Undergraduate coursework has a global focus: Recruiters recognize graduates’ ability to make an immediate impact and contribute at high performance levels during internships and in full-time careers.
06
Mary Jean and Frank P. Smeal College of Business, Pennsylvania State University Location: University Park, Pa. The program at Mary Jean and Frank P. Smeal College of Business concentrates on creating value through excellence in supply chain management. With a particular focus on careers in both government and the private sector, students are trained in sourcing, operations, and inventory projections. An emphasis is placed on database and information
T O P 1 0 B U S I N E S S S C H O O L S F O R S U P P LY C H A I N M A N A G E M E N T
Old Main Building at Penn University
technologies knowledge, as well as proficiency in information analysis. Graduates are equipped for positions in technology, merchandising, logistics, and other rapidly-expanding and lucrative fields.
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Fisher College of Business, Ohio State University Location: Columbus, Ohio According to the Fisher College of Business, students in their undergraduate program in business administration develop the vital skills of critical thinking, problem analysis, and effective communication. Every business major chooses from one of 12
specializations, which include “Logistics” and “Operations.” The college also houses The Global Supply Chain Forum, a think tank that explores the issues facing supply chain management today and the keys to increasing efficiencies and functionality within supply chain management.
04
Haslam College of Business, University of Tennessee Location: Knoxville, Tn. Home of the Global Supply Chain Institute, a globally recognized resource for all things supply chain-related, it is no wonder the school is ranked among the nation’s top public universities. The Haslam College of Business offers a diversified program with courses such as “Vested Outsourcing” in addition to high-level degrees including Master’s in Business Analytics. The curriculum is committed to theoretically-based, practically-applied business research as well as excellence in teaching. 23
TOP 10
The college’s vision for demand and supply integration joins faculty, students and executives from around the globe, and these international relationships can provide internship and job opportunities.
03
W.P. Carey School of Business, Arizona State University Location: Tempe, Ariz. Students who attend the W.P. Carey School of Business offers a global logistics management program those interested in a B.A., and a specialization in supply chain management for those looking to earn a B.S. The focus of supply chain-based programs at the W.P. Carey School of Business promises attendees will acquire an in-depth knowledge of logistics, operations, procurement and quality, in addition to receiving an understanding of the integration of these elements to create supply chain management strategies. 24
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02
Sloan School of Management, Massachusetts Institute of Technology Location: Cambridge, Mass. MIT’s Sloan School of Management challenges students to expand their analytical and quantitative skills by teaching them how to turn ideas into actions. Through the Business Analytics and Operations Research (BAOR) program, students are taught supply chain management and logistics through a lens of science, math and engineering to promote effective and informed decision-making practices. Students then have the opportunity to use these techniques as they directly relate to manufacturing systems, supply chain management and transportation
Ray and Maria Stata Center on the campus of MIT
T O P 1 0 B U S I N E S S S C H O O L S F O R S U P P LY C H A I N M A N A G E M E N T
planning. 29 percent earned more than $150K and 16 percent earned over $250K. By contrast, 11 percent of single-unit franchise owners earn more than $150K and only 4 percent earn over $250K.�
01
Eli Broad College of Business, Michigan State University Location: East Lansing, Mich. Through an integrated perspective
that blends theory with practice, the Eli Broad College of Business proved lessons in knowledge leadership through emerging strategic issues, as well as societal impact based on external research and outreach, students and alumni. With a mission statement that challenges the program to be the “global leader in creating and disseminating integrative supply chain management knowledge,� this college was the clear choice for our number one spot.
Beaumont Tower, Michigan State
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Walsh Downtown Crossing Project
Paving the Way to Better Roads with Louisville’s Downtown Crossing Project Walsh Construction takes on I-65 traffic and Spaghetti Junction as part of the Louisville-Southern Indiana Ohio River Bridges Project Written by: Sasha Orman Produced by: Tom Venturo
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WA L S H D O W N T O W N C R O S S I N G P R O J E C T
Downtown Kennedy Bridges
L
ouisville is a lively modern city with a challenging traffic problem. Built against the banks of the Ohio River, with only limited options of the I-64 and the I-65 bridges to cross the river to and from neighboring Indiana, traffic congestion is a constant problem for residents and commuters on both sides. That congestion is complicated even further by the tangled Kennedy Interchange— 28
July 2015
known locally as “Spaghetti Junction”—where the I-64, I-65, and I-71 merge on the Louisville side of the John F. Kennedy Memorial Bridge that currently carries the I-65 over the Ohio River to Jeffersonville, Indiana. In an attempt to solve this traffic problem, Kentucky and Indiana launched the Ohio River Bridges Project to build new pathways across the river and refurbish
CONSTRUCTION
Downtown Kennedy Bridge
existing bridges. Chicago-based Walsh Construction Co. was selected to take on the ambitious $860 million Downtown Crossing project, which will add a new six-lane bridge to the I-65 crossing and streamline the Kennedy Interchange. Improving piece by piece The Downtown Crossing project will reconfigure the I-65 Ohio River crossing in a quite significant way. “Eventually we are going to have a new bridge that will carry six lanes of I-65 northbound
“The number one priority on any Walsh job is safety: we try and instill this in our workforce and everybody that comes to the job” – Joel Halterman, Project Manager
kyinbridges.com/downtown-crossing
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CONSTRUCTION
traffic,” says Joel Halterman, Walsh Construction Project Manager for the Downtown Crossing project. “Then we are going to rehab the existing I-65 bridge to carry six lanes of southbound traffic. Essentially, we will be doubling the lanes across the river by the end of our project. It’s a massive project and it covers a lot of area, a big footprint.” To manage the scope of the project effectively, Walsh Group broke the Downtown Crossing project into three distinct sections—the “Spaghetti Junction” Kennedy Interchange section, the new bridge itself, and the section on the other side of the Ohio River where I-65 northbound drivers will land in Indiana. “We have Sections One, Two, and Three—with Section One in Kentucky, Section Two over the
SUPPLIER PROFILE
Joel Halterman, Project Manager
CHICAGO JACK
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kyinbridges.com/downtown-crossing
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Design-Build? No Problem!
Louisville Downtown Crossing
15,000 + Tons of Fabricated Steel, 20 + Plate Girder Bridges
Stupp Bridge Company is a leader in steel plate girder bridge fabrication. Our Bowling Green, Kentucky manufacturing facility is AISC certified to Bridge Fabrication- Advanced (Major), with Fracture Critical and Sophisticated Paint Endorsements. The best bridges are Stupp-Built! w w w. s t u p p b r i d g e . c o m Phone: 314-638-5000 3800 Weber Road | St. Louis, MO 63125
CONSTRUCTION
river, and Section Three in Indiana,” says Halterman. “We set the project up that way, where each section has its own management team. We all come together and there’s a lot of close coordination between the sections, but it is almost like three separate projects for us.”
the foundations, and 300,000 tons of asphalt,” says Halterman.
Placing a priority on safety: the Walsh way “The number one priority on any Walsh job is safety: we try and instill this in our workforce and everybody that comes to the job,” says Facing the challenges of Halterman. “For every employee construction that we have, our goal is that they With a signature six-lane bridge co- come and make a good living on the designed by Jacobs Engineering, job site, do a good job and go home featuring three sets of twin towers at the end of the day in the same and a cable stay structure to condition that they showed up in the highlight rather than impose on the morning. That’s what we strive for Louisville skyline, Section Two is every day.” the centerpiece of the Downtown From project to project, Walsh Crossing project. As strong and Group employs different methods to functional as it is visually stunning, uphold and enforce its prioritization the bridge will be supported with of safety. The Downtown Crossing 30,000 cubic yards of concrete, project, undertaken in a relatively 8 million pounds of rebar, and 12 new project area for Walsh, employs million pounds of structural steel. many workers who have never But Section One is unquestionably worked with the company before, the largest and most complicated putting the emphasis on quality section of the project, training above all. encompassing half of the project as “For every employee that comes a whole. “There are over 40 different through the job site, the first day is bridges on that section of the job, 21 an orientation,” says Halterman, MSE walls—plus 700,000 yards of explaining that this initial orientation fill, 500,000 feet of steel h-piling for consists of a 10 hour OSHA training kyinbridges.com/downtown-crossing
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WA L S H D O W N T O W N C R O S S I N G P R O J E C T
session to get everyone up to speed on safety protocol tailored to the unique components of the Downtown Crossing project. In addition to this initial orientation, Walsh Group also offers a gamut of supplemental training seminars to its employees— to the point where the business has set up a dedicated safety trainingfocused conference room for the Downtown Crossing project. As Halterman explains, with the safety and well-being of hundreds at stake, that training is not limited to full time Walsh employees or subcontractors. Because every person involved with the project has 34
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the potential to interact with and affect operations, no one steps onto the Downtown Crossing job site without completing the initial 10 hour OSHA training session. “If we have 600 employees working here, I’d venture to say well over 1000 people in total have been through our safety orientation,” says Halterman. The benefits of growth The effort expended constructing the Ohio River Bridges projects is great, but the benefits that residents and businesses will stand to gain after completion is even greater. The Downtown Crossing project is
CONSTRUCTION
expected to bring substantial improvements to congestion, especially the intense backup that tends to happen at rush hour. “It’s really the mobility across the river—for a river town, Louisville has limited river crossings here,” Halterman explains. “This will improve cross-river mobility, and really it’s going to improve congestion and it’s going to be a safer system.” The expected results of the work done on Section One in particular will be instrumental in improving traffic safety for drivers in Louisville. “There’s a lot of weaving where the interstates come together. Drivers have a short distance to make a choice, and may have to move over across three lanes,” says Halterman, explaining the dangerous maneuvers that many drivers have to make every day to navigate Spaghetti Junction as it stands today. “We’re taking a lot of that out with the new design of the interchange. That was a big motivation for the work in Section One.” Awarded the project in December of 2012, Walsh Construction broke ground on the Downtown Crossing project in July 2013. Two years later, the Louisville Downtown Bridge is 60 percent complete and on schedule for launch at the beginning of 2016—including refurbishment of the Kennedy Bridge and completion of the entire project. With this, Kentucky and Indiana residents and visitors can look forward to smoother commutes and safer travels.
Company Information INDUSTRY
Construction/ Contracting HEADQUARTERS
100 Witherspoon Street, Louisville, Kentucky USA, 40202 FOUNDED
2012 EMPLOYEES
600 BUDGET
$860 million PRODUCTS/ SERVICES
Construction/ Contracting
kyinbridges.com/downtown-crossing
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DPR Construction
BioMarin and DPR Construction collaborate to build greatness Discover how BioMarin and DPR have combined talents to expand a research and development facility, achieving greatness along the way Written by: Cutter Slagle
Produced by: Tom Venturo
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DPR CONSTRUCTION
D
PR Construction and BioMarin applied for a building permit in June 2014, joining forces to expand BioMarin’s research and development facility in downtown San Rafael (ultimately bringing the developmental sciences group to BioMarin’s main administration campus). The project officially broke ground on the development in August of that same year—and it’s been on the fast track ever since. BioMarin Principal Engineering Project Manager Jim Redenbarger recently spoke about the collaboration and how BioMarin 38
July 2015
originally acquired DPR Construction’s assistance, stating: “DPR is known for doing excellent work and proved that they were best suited for this project.” “This type of project is in DPR’s core market,” DPR Construction Project Manager Tim Kueht said. “We are always searching for different projects that allow us to be collaborative and push forward in the industry, versus staying with old and traditional practices. We enjoy working with partners, subcontractors, and various people in the community to develop a relationship and joint understanding
CONSTRUCTION GLOBAL
of the work process in order to complete a project.” While a structure to this degree often takes at least three years to complete from design to develop to build out, the center is slated to be finished in December 2015—just 18 months after starting. The factors behind this turnaround time can be contributed to a range of qualities, but collaboration is the one that seems to be the most significant. “When it comes to building, everyone is ready to go—every member of the team is completely onboard,” Kueht stated.
“We are always searching for different projects that allow us to be collaborative and push forward in the industry” – DPR Construction Project Manager Tim Kueht
Tackling challenges to the expansion This expansion project has been put into motion to create a facility that will accommodate all research needs. Most importantly, this is a solid w w w . d p r. c o m
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DPR CONSTRUCTION design that can help accomplish a magnitude of goals, including the ability for departments to be switched out and restacked and even turned into laboratories. Also due to this expansion, more collaboration within the building will be able to take place. Redenbarger noted that the various features of the building will be a way to bring people together. “This expansion is already proving its worth,” he stated. “Science equals change, and we are accommodating that change with this building.” The building is located in a very urban setting and there have been a few challenges— challenges that Redenbarger, Kueht and their
CNS Mechanical, Inc. Plumbing/Piping
Our company provides complete plumbing and process piping services for commercial, industrial, and institutional facilities. Serving the greater San Francisco Bay Area, we are a licensed and certified commercial plumbing contractor signatory with Local Union #38. We look forward to the opportunity to work with you in the future as we are confident that we can provide the quality workmanship you are looking for. If you have any questions, please don’t hesitate to contact us . 36 Chrisdumar Lane | Petaluma, CA 94952 | 707.776.4552 | www.cnsmechanical.com
CONSTRUCTION GLOBAL
respective teams have been able to overcome. For example, schedules have proven to be particularly daunting, as has the task of getting all of the right materials in order and in a timely manner. Then there’s finding the manpower—both Redenbarger and Kueht agreed that it’s not just about getting people, but the right people for the right job. “This entire project is a highly collaborative effort,” Kueht explained. “It takes everyone involved to help achieve overall goals.” Whether it’s been the challenge with the foundation, the various bay conditions or the different restrictions that were put into place, the team has been able to work together to overcome them. “DPR is very good at identifying challenges early on—sometimes even before they happen,” Redenbarger said. “They’ve resolved issues, which has ultimately saved the project time and money.” There is a central utility plant on the roof of the building that has been quite demanding due to the fact that a lot of equipment has to fit into such a tight space. It’s important for employees to work safely in the small quarters. This is where technology and having a model of the building came into great assistance.
“This entire project is a highly collaborative effort; it takes everyone involved to help achieve overall goals” – DPR Construction Project Manager Tim Kueht
Technology and the assistance of BIM Both Redenbarger and Kueht have acknowledged the importance of Building Information Modeling (BIM) and how this type of technology has w w w . d p r. c o m
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DPR CONSTRUCTION
not only assisted all involved parties with efficiently handling the expansion, but also allowing workers to stay on track to complete the project on schedule. “Because of BIM, everyone has access to the model and all 42
July 2015
of the building information,” said Kueht “The designing and detailing information we have can be pushed through instantly, meaning BIM saves us a lot of time; BIM allows us to have a quicker and more efficient process.
CONSTRUCTION GLOBAL
“With BIM, we are accurately building with the most current information,” he added. “We are finally able to see the value of technology, as well as understand it and like it.” Redenbarger agreed with Kueht’s positive feedback regarding BIM, adding, “BIM allows us to identify areas that need improvement so that we can then advance our skills and approach and move forward. We’re completely sold on the BIM process. It enhances the collaboration for all players on the project—everyone wins.” Both Redenbarger and Kueht plan to continue using BIM going forward in their careers. When asked about any other technological techniques being utilized, Kueht said, “We use the latest technology that is available, leveraging it and taking it the next level to produce faster and more accurate results.”
Company Information INDUSTRY
Construction Global HEADQUARTERS
945 Front Street, San Francisco, California , USA, 94111 FOUNDED
1990 EMPLOYEES
1860 REVENUE
Commitment to achieving milestones As with any project, one of the biggest—if not the biggest—goals is to deliver the build on time and on budget. And so far, this hasn’t been an issue with this expansion. As stated earlier, completion is looking to wrap up by year’s end; this is an aspect that everyone should be proud of accomplishing. “That’s our goal,” Kueht started, “to have everyone involved in the project walk away completely satisfied and proud of their work from all aspects. It’s important that everyone is happy and had a good time being part of the project.”
$2.9 billion PRODUCTS/ SERVICES
Construction
w w w . d p r. c o m
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Walsh Construction
Upgrading Quality of Life at Olson Pavilion Walsh Construction discusses some of the challenges and rewards in building the next chapter of the Olson Pavilion. Written by: Robert Spence Produced by: Tom Venturo
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WA L S H C O N S T R U C T I O N
Olson Pavilion exterior
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ounded in 1898, Walsh Construction is a familyowned and operated Chicago-based general contracting, construction management and design-build firm. The firm has extensive expertise in a wide variety of building, civil and transportation sectors including renovation, senior living, high-rise apartments, condominiums, affordable housing, educational facilities, warehouse/ distribution facilities, athletic facilities, correctional facilities, office, design-build, wastewater and water treatment plants, rapid transit, highway, bridgework and more. 46
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For over 115 years, Walsh Construction has built and maintained a strong base of repeat clients through its commitment to quality, craftsmanship, and delivery of projects in a timely manner. Recognized as one of the nation’s top 20 contractors, these values have never been more evident than Walsh’s latest project: the Olson Pavilion project at Lutheran Home in Arlington Heights, Illinois. Upgrading quality of life Since 1892, Lutheran Home has provided short-term rehabilitation, residential health care, in-home
CONSTRUCTION
Olson Pavilion dining hall
services, adult day care services and child care. With the help of Walsh Construction, the campus’ skilled nursing facility, Olson Pavilion, is undergoing an extensive renovation and addition to provide the latest in senior care. The project aims to upgrade the existing 127,000-square foot facility along with adding 22,000sf of new space to Olson which includes reconfiguring of 252 rooms down to 162 private rooms with private baths. The new 83,000 sf shortterm rehabilitation facility known as MyRehab Center, which opened
in July 2014, is a 78 private room addition that accommodates expanded resident wellness and therapy programming. The first phase of construction, which commenced in October 2012, included the addition of 115 parking spaces on the east side of campus, as well as the construction of the three story rehab facility off the existing Olson building. For Walsh, one of main challenges of the project is the fact the campus remains open and operational during construction. “This is a very active campus with people coming and going at all w w w. w a l s h g ro u p . c o m
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PR O U D PA RT N ER WIT H WALSH CONSTRUCTION
w w w.new tecwindow.com 3159 W. 36th St., Chicago, IL 60632-2303
O L S O N PAV I L I O N AT L U T H E R A N
• Local Manufacturing – We manufacture our own windows locally in Chicago and you get to deal direct with the factory – no middle men, dealers or distributors. That means short lead times, quick turn-around on emergency rush shipments; even same day glass replacement. No one else can provide our level of service. • Experience - We’ve been in business for 10 years and have done major projects for both large and small General Contractors. Our management team has well over 30 years of experience in the window business and our customer service department is professional, responsive and knowledgeable. • An Exceptional Product - Our commercial windows are far superior window to the typical cheap construction grade window. Our vinyl extrusions are state of the art, supplied by REHAU, a world-wide leader in window design. The owner will notice the difference and so will you. Unmatched service, advanced manufacturing and a superior product. It’s the best you can ask for.
Phone: (773) 869-9888 Fax: (773) 869-0888 E-mail: info@newtecwindow.com
WA L S H C O N S T R U C T I O N
CONSTRUCTION
times, so it requires special attention,” said Kevin Varrone, project manager. “The project team spent a lot of time with the facilities director and staff coordinating construction and facility operations on a daily basis. The goal was to minimize disruptions on the campus as much as possible. We wanted to ensure day-to-day living and safety of the resident’s wasn’t compromised during the renovations.” The relocation of residents into completed sections was just one challenging component faced by Lutheran Life Community and Walsh Construction. According to Varrone, the project presents a specialized work environment but it’s nothing new for Walsh.
SUPPLIER PROFILE
Eric Larsen
NEWTEC WINDOW
Newtec Windows and Doors was started over ten years ago by Jimmy Lei. His philosophy is to provide a superior product with unmatched service and support. With 35,000 sq. ft., five employees and some used equipment, Jimmy started a small manufacturing operation servicing contractors in the retrofit window market on the South Side of Chicago. He has grown the business into a modern window factory, producing everything from aluminum storefront systems to high-end, state of the art, architectural grade vinyl windows. Newtec now works with some of the largest General Contractors in Chicago, while still keeping a strong, loyal customer base of small contractors and walk-in business. www.newtecwindow.com
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WA L S H C O N S T R U C T I O N
Olson Pavilion dining hall
“We’ve been working on active campuses for years now and they all have different challenges and unique features. We’ve done a couple projects similar to this in the past--going in and moving belongings out of the rooms. The one thing that remains consistent is providing the highest quality of life for the people here,” said Varrone. Phase two and three consist of demolition and renovation of the existing Olson Pavilion. Completion of the project is expected in April 2016.
to address was the location of the project and putting neighborhood residents to ease. Lutheran Home is situated in a residential area, and many neighbors were concerned about the anticipated work, including construction traffic and noise levels. “From the very beginning we were very active with the community. We [the owner and Walsh] would have quarterly neighborhood meetings with residents to allow them insight into what’s going on,” said Varrone.
Unique approach Another obstacle Walsh needed
According to Project Director Eric Larsen, Walsh has worked
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CONSTRUCTION
extensively with the community to help keep them informed with the project and put an ease to their concerns. “When we work in neighborhoods or dense areas, we realize we’re guests. We understand and respect the fabric of each neighborhood and strive to minimize the impact of their daily routine. Unfortunately, construction is a necessary evil but we spend a lot of time with residents to coordinate and make the process less disruptive on their daily lives. Communication has been a big part of this project.” Keeping it in the family Walsh Construction is currently in its fourth generation operating the company as a family business. With over 6,000 employees, the company treats everyone like family and strives to keep everyone safe. “We’re not just employees, we’re family, and safety is the upmost importance,” said Larsen. “Our mission is to make sure everyone goes home from work safe and returns to their families. It’s part of our mission statement.” According to Varrone, the lion’s share of employees embrace the family bond and spend the majority of their entire careers with Walsh. “At Walsh Construction, it’s not just a job--it’s a career. Our goal for employees is to help them feel valued and ensure we take the necessary steps to put them in a position to succeed.”
Company Information INDUSTRY
Construction, contracting, HEADQUARTERS
929 West Adams Chicago, Illnois, United States, 60607 FOUNDED
1898
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Hessert Construction Group, LLC They Build It Like It’s Their Own The New Jersey-based construction company finds success in the industry with the assistance of good clients and employees. Written by: Cutter Slagle Produced by: Tom Venturo
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H E S S E R T C O N S T R U C T I O N G R O U P, L L C
OPEX Array
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hen it comes to the construction industry, it’s all about quality— this is especially true for Hessert Construction Group, LLC. For three generations, Hessert has provided innovative thinking and experience to Southern New Jersey and Greater Philadelphia, meeting a variety of institutional and commercial construction needs.
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About the Hessert experience For Hessert, the project comes first—period. No matter what particular project the construction company is working on, the management team is consistently on hand to provide innovating thinking and experience. The goal is to ultimately select the most appropriate approach to all elements of the development, including preconstruction, project management,
CONSTRUCTION GLOBAL
and construction requirements. Hessert has cemented its reputation throughout the community and the industry by recognizing the importance of sustainability and the environment. The company has developed an expertise for sustainable design and renewable energy. Hessert has experience in a vast range of sectors, including commercial,
education, entertainment, healthcare, and public regions. Two key mantras According to Mark Heenan, president, Hessert can best be described through two of the company’s mantras: “We Build It Like It’s Our Own” and “Mind, Body, and Solar.” Embracing and following these mantras has allowed
Adventure Aquarium - Camden, NJ
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H E S S E R T C O N S T R U C T I O N G R O U P, L L C Hessert to stay a step ahead of its competition. “We’ve been fortunate enough to find a really good team of people who care about what they do,“ Heenan said. “It’s about passion. Every member of our team not only cares about how they perform as an individual, but how they perform as a team, too.” “We rely entirely on the team to build well and work together to achieve common objectives. We’re consistent and we’re all committed to
www.buckllc.com
Our number one priority is to provide quality service to our clients and doing so as a partner not just their contractor. Our goal is to make a mark from start to finish. Make such an impression that our clients want us to do their next project. Main Office 201 Allied Parkway West Berlin, NJ 08091 Phone: (856) 753-1600
Michael Cornwell Mike@BuckLLC.com Fax: (856) 753-1620
quality—across the board.” Heenan acknowledged that a huge investment is made when a client brings on his construction company, emphasizing the importance of having a good end result. “It’s a matter of caring,” he said, describing the process. “If we’re good at our job; if we build it like it’s our own, then there shouldn’t be a building owner who won’t be happy with our end result.” The bulk of Hessert’s projects revolve around the company’s
CONSTRUCTION GLOBAL
second motto: primarily educational buildings (mind), health care facilities (body), and other opportunities that include renewable energy and sustainable green ability (solar). Hessert distinguishes themselves from other construction groups by getting involved with a wide range of other projects that include zoos, aquariums, and other projects within the entertainment sector. The growth of technology “Technology is catching up in the industry and it can be utilized to make everything faster,” Heenan said. In fact, Heenan and his team have determined different ways in which technology can be used. “We’re repurposing technology designs that were designed for different sectors of the industry,” Heenan continued. Heenan touched upon Hessert’s use of Building Information Modeling (BIM) technology, the technique of creating and using 3-D computer models of design drawings. “We can actually place owners in the desk they’re going to be sitting in,” Heenan noted. “Building owners now have the privilege of seeing their surrounding before a shovel is even put into the ground. The owner is able to see and actually feel changes, as well as see the end result.” Because of this technology, alterations can easily be made, meaning every party involved in the project—from subcontractors to owners—can
Rutgers College of Nursing
“It’s all about building—relying entirely on a team to build well and work together to achieve common objectives” – President Mark Heenan
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Big Cat Falls - Philadelphia Zoo
save money, time and resources. “There’s no ‘Oops! I wish we would have done that’ moment,” said Heenan. In the end, with the aid of BIM technology, projects move more smoothly for Hessert and the building owners. The client is not only happy, but usually then becomes a repeat client. Current projects and what the future holds Hessert recently finished work on the Sea Isle Municipal building in 58
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New Jersey, with a new City Hall, police station, and fire offices being added. In addition, Hessert will soon be starting an 8.2 mega watt solar project in Gloucester, New Jersey. Hessert knows and believes in the value of education: as New Jersey invests in building more educational institutions, Heenan noted various projects where he and his team are involved. Hessert, in partnership with Clarke Caton Hintz, is working on a design-build project for Rutgers University on its women’s campus.
CONSTRUCTION GLOBAL
Specifically, Heenan and his team will be working on the student center and dorm building in the historic part of the women’s campus. As for the future of Hessert and the construction industry as a whole, Heenan is very hopeful and excited. “We’ve got plenty of goals,” he said. “Specifically, we want to maintain and build upon the reputation of ourselves and the industry in our geographic area. Not only do we want to express to clients that we’re quality contractors, but we also want to show that Hessert is a great place to work.” Heenan believes that the construction industry will continue to grow within the next five years, specifically in the technology region. “This has been a stubborn industry in regards to changing with technology,” Heenan said. “However, taking a different approach towards technology is becoming more common and should continue.” With this new application of technology, the way business is done will be revolutionized. “There will be different ways to build buildings,” Heenan said. “The entire process will change immensely with the assistance of virtual models of buildings.” “It’s exciting to think about change,” Heenan added. “The industry hasn’t really seen any significant change. With the ability to really apply computer technology, we’re going to be able to build things that couldn’t even be designed before because of the lack of technology.”
Company Information INDUSTRY
Construction Global HEADQUARTERS
15 W Stow Road Marlton, New Jersey, USA FOUNDED
1954 EMPLOYEES
25 REVENUE
$50 million PRODUCTS/ SERVICES
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ArtiFlex Manufacturing
ArtiFlex invests in growth Meeting the demands of the evolving automotive industry, ArtiFlex is investing in growth and improvement for its facilities and its employees Written by: Sasha Orman Produced by: Tom Venturo
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A R T I F L E X M A N U FA C T U R I N G
One of ArtiFlex’s many robotic adhesive application cells applies adhesive to the inner hood panel prior to assembly.
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ince 2011, ArtiFlex has been hard at work building a strong reputation as a leading manufacturer in a niche field of the automotive industry. While Tier One tooling and stamping companies specialize in high volume output, ArtiFlex has concentrated on low volume specialty production— manufacturing for out-of-production past model vehicles and low volume derivative models, creating low volume parts to be shipped to dealers and repair shops worldwide. As the automotive and manufacturing industries evolve, ArtiFlex is working to build ever 62
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better and more efficient processes to ensure that its clients are in good hands. Automotive progress as a driving force for high-tech upgrades From Nissan to BMW to the Detroit Three, some of the biggest names in automotive manufacturing depend on ArtiFlex for their lower volume parts. So when the automotive industry starts to introduce newer designs and materials like high strength steel into its designs, it’s up to ArtiFlex to keep pace and anticipate the needs of its
M A N U FA C T U R I N G
ArtiFlex has a 5-axis laser used for laser blanking, trimming, or piercing for production or die tryout.
consumers. According to Steve Delmoro, Director of Business Development at ArtiFlex, this evolution in auto design has led to significant capital investments over the past year. “From the automotive stamping standpoint—which is our primary production business, in large automotive body panels like fenders, hoods, body sides—we’re seeing a strengthening of the automotive market from where we were five years ago until now, and additionally we’re also seeing a need for more updated equipment,” says Delmoro. ArtiFlex has satisfied this need for
more updated equipment with a $10 million strategic capital investment, installing three large new high tonnage hydraulic stamping presses to replace outdated existing draw presses. At this time, one of these new presses is already installed and in operation—a second press is halfway through installation, and the third will be commissioned in the fourth quarter of 2015. “The investment is in response to our core customers,” Delmoro explains. “The major auto makers are our largest customers. They are growing—and we are growing with them. Some of their designs w w w. A r t i F l e x m f g . c o m
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for new tooling would not fit with our existing equipment. We were running into areas where we were not able to manage tonnage required. So these presses that we’re installing run up to 2,500 tons, which is quite a bit more than the 1,000 ton presses that they’re replacing.” Investing in automation Several strategic investments are currently in the works at ArtiFlex. In addition to its work on new high powered presses, the company has also invested in increasing its incorporation of automated processes in its presses and welded assembly areas. According to Delmoro, the reasons for investing more heavily in automation are threefold. “First and foremost it would be quality,” he says,
SUPPLIER PROFILE
Steve Delmoro, Director of Business Development
MACRODYNE TECHNOLOGIES INC.
Macrodyne Technologies Inc. is a manufacturer of heavy duty, high quality hydraulic presses up to 20,000 tons, automated press lines and die/mold handling equipment for dies/molds weighing in excess of 100 tons. Macrodyne supplies hydraulic presses and press lines for general metalforming applications, hot stamping, deep draw, forging, extrusion, coining, die spotting, hydroforming, elastoforming and many more. Precision, functionality and repeatable performance are key variables our engineers consider during the design phase of every project. Our success is evidenced by an extensive list of customers who continue to purchase Macrodyne Hydraulic Presses and Die/Mold Handling Equipment on a repeat basis. Please visit our website at www.macrodynepress.com
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Proud to be a Supplier to Artif lex Manufacturing.
Quality, Dependable Service, Value
Multi-Cut Blanking Line
Slitting
Banding
Finished Goods
Riverview Steel is an acknowledged leader in surface critical blanking and slitting services to the automotive industry. Operating from a strategically located state-of-the-art facility we are able to provide same day service to clients across Southwestern Ontario and the Midwestern U.S.A. Our dedicated and productive employees deploy a professional and full service approach to accommodating the most stringent requirements of our clients. As an ISO 9001:2008 certified steel service center our reputation for high quality and dependable service is synonymous with our name. We congratulate Artiflex Manufacturing for their many successes throughout the years and look forward to extending our longstanding relationship for many years to come. 8165 Anchor Drive
Windsor, Ontario N8N 5B7
info@riverviewsteel.com
Phone: 519.979.8255 Fax: 519.979.5799
www.riverviewsteel.com ISO 9001:2008 Certified
A R T I F L E X M A N U FA C T U R I N G
M A N U FA C T U R I N G
noting that the repeatability aspect of automation is a strong way to inspire greater confidence in consistency and quality levels for clients. ArtiFlex has also been greatly inspired by LEAN manufacturing strategies and the challenge of reducing costs while increasing throughput and optimizing operations for maximum yields. There is a strong safety aspect to this decision as well. Delmoro explains that much of its automation works to keep its employees safe from the more demanding facets of manufacturing work. “We do work with a lot of sharp metal objects and heavy parts,” he says. “When we have fewer and fewer operations where the employee is exposed to these areas, there are fewer and fewer chances that the employee could get accidentally hurt. Not to mention our aging population—the repetitiveness of picking up a 40-lb part multiple times a minute is not something that’s conducive to their long term health.” Through automation, these workers are able to stay productive and safe in the long run. Investing in people That aging population that Delmoro mentioned is an industry-wide issue that has been weighing heavily on the ArtiFlex team. “We’re no different than most others in the industry right now, in that finding the right skilled trade is a challenge,” says Delmoro, noting that skilled workers trained in tooling and die areas are the scarcest. “We tend to see a demographic that’s aging in that skill set,
This new draw press is set up to run large, complex dies ranging up to 180” in length and requiring forming tonnage up to 2000 tons and cushion tonnage up to 500 tons.
An ArtiFlex Tool & Die journeyman performs maintenance on a past model service die
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A R T I F L E X M A N U FA C T U R I N G
An ArtiFlex tool and die maker drills on a new die that was designed and built by ArtiFlex.
and not replacing itself.” In addition to its increased interest in automation, ArtiFlex has also implemented several human resources programs in order to attract and train skilled workers in the fields of both tooling and technical engineering as automation ramps up. “We’ve got older presses, 68
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and we’re moving to new ones. It takes a little different mindset, a little different training,” says Delmoro. “We are embarking on aggressive education and a campaign to bring in new talent as we continue to grow both our business size in terms of both revenue and our head count.” This campaign consists of work
M A N U FA C T U R I N G
with local colleges and community centers, along with the North Central Workforce Alliance of Ohio and the Wayne County Business Advisory Council. Most important of all is ArtiFlex’s own robust in-house journeyman apprenticeship program. “I think our strategy has to be: you’re not going to necessarily hire all on the outside, so you had better be training in house to meet the demand that we see moving forward,” says Delmoro. “It’s only going to get more and more critical as the population ages and fewer young people go into these skilled trade areas. We can’t train people fast enough, and that’s what we’re working after—that, and to find young people that have a desire to go into those skills.”
Company Information INDUSTRY
Manufacturing HEADQUARTERS
1425 E. Bowman Street Wooster, Ohio, USA, 44691 FOUNDED
2011 EMPLOYEES
Only the beginning With so many projects underway, it may seem like ArtiFlex has its hands full. But with its niche low volume specialization, multitasking is one of the company’s greatest strengths. As Delmoro explains, these investments are only the beginning of growth for ArtiFlex. “I don’t believe this is the end of our capacity and our capital investment—I think this is an initial phase,” says Delmoro. “I think there will possibly be more presses and other operational investments, whether it’s in robotics, lasers or even potentially even facility upgrades. I believe there is a continued appetite from our customers to say, ‘how do we allow our good suppliers to continue to grow?’”
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Nevada Mining Association
Representing mining in Nevada for over 100 years Since 1913, the Nevada Mining Association has represented every aspect of the industry and continues to drive it forward. Written by: Stephanie C. Ocano
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N E VA D A M I N I N G A S S O C I AT I O N
Haul trucks lined up at Barrick Gold’s Cortez Hills. Some haul trucks can carry more than 350 tons of payload.
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ining has long been an integral part of Nevada’s history—from Native American use of its mineral wealth to fashion tools to today’s modern industrial mining operations. Nevada’s silver deposits were a major reason for Nevada’s admission into the United States in 1864, and mining has since positioned the state as a global leader in the production of strategic minerals in the development of new technologies. Founded in 1913, the Nevada Mining Association is one of Nevada’s oldest trade associations, 72
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representing a broad spectrum of the industry. “There’s mining essentially everywhere,” said President Dana Bennett, PhD in a recent interview. “Our association represents all the businesses involved within the industry—whether it’s exploration, development, operations, reclamation or vendors.” Having a long and respected track record, it is no surprise that the association has 400+ members. In fact, of the 116 mines in Nevada, many of them are members as well. “We have strong relationships with the state governments and
MINING
represent the industry at the legislature,” explained Bennett. “We assist with facilitating conversations between the federal and state regulators and the companies.” In addition, the Nevada Mining Association provides multiple opportunities for its members to collaborate and get to know one another. From events to committees, members can meet and discuss best practices, discuss solutions for resolving issues and learn from one another. Educating the residents (and visitors) of Nevada Nevada is a very urban state, with the majority of the population living in Las Vegas and Reno. Of that population, most are transplants. For that reason alone, the Nevada Mining Association strives to continue to tell the story of Nevada’s mining industry. “It’s important that [residents] understand the role that mining plays in their daily lives,” said Bennett. “How important the industry is to the state economy.” As a source for accurate and credible information about mining
in Nevada, the association has many different ways of providing information to the public. One of those methods is the interactive mine tour offered on their website. From aerial overviews to exploring the surface of a mine to experiencing a gold refinery, the interactive tour allows visitors to get a first-hand feel of the industry. “We also have a larger display at the airport,” added Bennett. “It’s quite a large exhibit as people are going to the Southwest gates and there are terrific floor samples and mineral samples and a full-size interactive mine exploration.” “We work very hard to be a respected and credible source of accurate information,” she said. “Part of that is pushing out information, the other part is responding to inaccurate information that might be out there.” The Nevada Mining Association and education In partnership with the Nevada Division of Minerals, for 25 years the Nevada Mining Association has hosted teacher earth science workshops to help public, private w w w. n e v a d a m i n i n g . o r g
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Teachers gather to hear from Molycorp workers during a mine tour on April 1, 2015, as a part of the Nevada Mining Association’s Southern Nevada Teachers Workshop
and home instructors educate future generations. With one workshop in the spring and one in the summer in southern and northern Nevada, the workshops provide classroom instructions and ideas for lessons plans and field trips. Teachers who participate also receive a university credit or a Professional Development credit. “It’s a very popular program,” said Bennett. “Our workshop this last 74
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spring in Las Vegas had well over 100 teachers. They participate and they learn and then take that new information back to their students.” The goal of the workshops is to educate K-12 Nevada teachers about the earth sciences, the importance of mined materials and the role that mining plays. Dedicated to the better education of the youth, another workshop will be hosted in mid-July.
MINING
A voice for Nevada’s mining industry Nevada mines employ over 15,000 people in jobs with the highest average wages and most comprehensive benefit programs in the state. These mines continue to produce gold, silver and copper. Another 2,000 companies—mostly small businesses and family-owned companies—make their living providing goods and services to mining operations. All together, the mining industry is “a responsible and responsive corporate citizen in Nevada,” offering employment opportunities, substantial taxes and “actively participating in the cultural lives of communities.” The Nevada Mining Association is constantly looking for ways to champion Nevada’s mining industry. “We’re proud of Nevada’s mining industry and work hard to get that message out,” said Bennett. One of the most important parts of the mining industry is that it requires constant exploration, according to Bennett. In a state like Nevada, with its unique geology and geography, there are constantly new things to find. “It’s important to understand that mining didn’t just happen in the past,” explained Bennett. “We don’t know what we’re going to need 50 years from now, and so exploration for new metals and minerals, and the innovative ways of using them, are important for our future.”
Company Information INDUSTRY
Mining HEADQUARTERS
201 W. Liberty St., Suite 300 Reno, Nevada, United States, 89501 FOUNDED
1913
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Nyrstar
Nyrstar Does More with Less Tennessee Mines maximizes efficiency and uses operational excellence to separate from the competition Written by: Eric Harding Produced by: Jason Wright
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N Y R S TA R
Mid TN’s GorWood Mine
D
oing more with less and striving for operational excellence is what separates Nyrstar from the other mining companies. Its Tennessee Mines is a prime example of Nyrstar’s dedication to quality.
of 902 employees. Middle Tennessee is made up of three underground zinc mines—Gordonsville, Elmwood, and Cumberland— as well as a processing plant located at the Gordonsville mine site. Each of the three mines is located in Smith Operations County, which is about 100 miles Located in the heart of Tennessee, from Nyrstar’s Clarksville smelter. the Nyrstar Tennessee Mines The operations have a history of complex consists of six mines and close association, as the smelter was two processing plants distributed originally built specifically to treat zinc among two distinct operations— concentrate from the mines. Middle Tennessee and East East Tennessee operations also Tennessee. The two combine to consists of a processing plant and produce 111,000 tonnes of zinc in three underground zinc mines: concentrate in 2014, and have a total Young, Coy, and Immel. The three 78
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MINING GLOBAL
Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground
mines are located in and around Tennessee’s Knox, Jefferson, and Grainger counties. Each of the mines is located approximately 20 miles from each other, 150 miles from Middle Tennessee Mines and 250 miles from Nyrstar’s Clarksville smelter. In addition, ore from the three mines is processed into zinc concentrate at the Young mine site. Improvements To maximize efficiency, Nyrstar is introducing an array of mill improvements at its East Tennessee operations. The company has added three stateof-the-art belt scales to improve metallurgical balance calculations. Other innovations include increasing ball mill throughput by nearly 20 percent.
“What the systematic does is reduce the placechange time from one working phase within the stope to another thousands of feet away. When you stay within one stope, you can work multiple phases. It’s almost like a coalmining mindset” – Nyrstar VP of Business Improvement Glenn Smith
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MINING GLOBAL
“That 20 percent improvement is the result of several factors such as increased horsepower on some of the pumps that would supply the material upstream of the ball mill,” said Glenn Smith, Nyrstar VP of bBusiness iImprovement. The key to our success was all about eliminating variation from the process through classic business improvement techniques, such as keeping the mill regularly charged with ‘X’ amount of grinding media, reducing the size of the grinding media, and more. These fundamentals have led to the 20 percent improvement.” The upgrades are the first steps in streamlining the entire process and optimizing the performance of the mill. The goal is to have every unit in the existing footprint perform as designed, or even better than expected, before making a
SUPPLIER PROFILE
Nyrstar VP of Business Improvement Glenn Smith
SANDVIK MINING
Sandvik Mining is a business area within the Sandvik Group and a leading global supplier of equipment, tools, service and technical solutions for the mining industry. The offering covers rock drilling, rock cutting, rock crushing, loading and hauling and materials handling. In 2014 sales amounted to 26,831 MSEK, with 11,815 employees. 300 Technology Court Smyrna GA 30082 TEL: 404-589-3800 FAX: 404-589-2900 Website: www.sandvik.com
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TOTAL PROTECTION, FOR ALL YOUR MOBILE EQUIPMENT
FIRE SUPPRESSION | LUBE | SCALES | CAMERAS
Koorsen partners with the best manufacturers in the industry to ensure superior products and protection.
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N Y R S TA R capital expenditure to increase the throughput. Operational Excellence Before spending money to expand the mine, Nyrstar is first implementing operational excellence strategies to maximize the potential of the existing operations. As further evidence of Nyrstar’s commitment to improving and growing the business, Smith was recently promoted to the Vice President of Business Improvement for the entire Nyrstar Mining Segment, as his career has been heavily focused on business improvement. One of his challenges as general manager was getting the variation out of their processes in order to achieve consistent performance. “Before we make any capital expenditures to increase the capacity, we need to eliminate the variances,” Smith said. “It’s like having an old car. You don’t buy a new car just because the tires are worn- you rotate the tires and keep an eye on their wear.” The systematic mining approach recently introduced in Middle
MINING GLOBAL
Tennessee is an entirely new way to mine, where they basically delineate the boundaries of a given ore zone. A weighted average recovery is used to develop rooms and pillars, compared to the previous method of random room and pillar, which is more of a meandering approach. This system promotes improved mine planning in terms of establishing your infrastructure, water supply, electrical supply as well as ventilation needs. “What the systematic approach does is reduce the place-change time from one working phase face within the stope to another thousands of feet away,” said Smith. “When you stay within one stope, you can work multiple phases. It’s almost like a coal-mining mindset.” Smith believes his transition from coal mining to underground base metal mining has been an excellent transfer of skill sets, from ventilation to maintaining equipment, human resources, and safety. The only real difference he’s noticed is instead of cutting material like he would in coal mining, they now have to drill and blast it. “It’s still ground support, loading, w w w . n y r s t a r. c o m
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Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground
and hauling material,” he said. “It’s been a great transition. As I learn from my hard-rock miners, I also share a little bit with my coal mining background with conveyance systems and efficient processes like systematic mining. You have more uptime when drilling and breaking material versus traming from one stope to the next.” 84
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Collaboration is a major aspect they drive within the mining segment—which includes open lines of communication in terms of what is working at one site compared to others. It’s yet another trait Smith brings from the coal industry, as it was a common theme from his 34 years in the business. “With the Tennessee mines, for
SECTOR
instance, we contributed around 20 percent of the zinc production of Nyrstar last year,” he said, “so it’s a large player in the mining portfolio for Nyrstar.” The initial systematic mining plans came together in late Q3 of 2014, while they actually began implementing late Q4. In just those seven months, Smith said he’s seen dramatic changes. “We’re now able to see the results,” he said. “Naturally when you start a new process, it comes
Glenn Smith
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Prepping to lower new CAT haultruck components into the East TN Operation, Immel Mine for reassembly underground
with a certain element of change. The guys have to back up and figure out how to handle certain situations. It’s always the theory of constraints when we’re pushing the bottleneck out of the system.” The goal behind using geophysics 86
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is to improve drilling or exploration success rate. It essentially maps out an area using geophysical techniques from the last several years, and has typically identified some target-rich areas so they can drill and verify.
MINING GLOBAL
“We’ve seen great correlations, and that’s what gave us our trust in it,” Smith said. “We actually put it over areas that we mine and were able to baseline it to get certain readings to see what the fingerprint looked like in a certain area. We were quite pleased when it said, ‘Drill here.’ We drilled, and low and behold, we hit the ore. Now we’re actually planning on a more aggressive drilling program to further delineate those areas so we can get them into some 3D mine bottle blocks.” Automation with software that predicts maintenance upgrades will be Nyrstar’s next venture in the future, including equipment health monitoring and tracking. The company has looked at various types of maintenance scheduling so it can provide maintenance on a 24 hour a day, 7 day a week schedule compared to just a five-day schedule. It has seen equipment availabilities increase as much as 20 percent by having maintenance crews rotate with production crews, similar to a race car driver with his pit crew. “As the equipment passes by any Wi-Fi hotspots located within the mine, they will have particular mechanical data downloaded from the equipment monitoring the equipment health in addition to equipment tracking similar to employee tracking in United States coal mines,” Smith said. “This way, they can generate realtime electronic times studies compared to an individual doing it. That’s our next avenue to dive into.”
Company Information INDUSTRY
Mining and Smelting HEADQUARTERS
Tessinerplatz 7, Zurich FOUNDED
2007 EMPLOYEES
Approximately 6,500 REVENUE
USD 3.21 billion
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Philadelphia Gas Works PGW CEO Craig White discusses new initiatives, infrastructure upgrades, and all that lies in store for Philadelphia’s gas utility Written by: Sasha Orman Produced by: Tom Venturo
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Corporate Headquarters
Since 1836, Philadelphia Gas Works (PGW) has been supplying residents and businesses throughout the City of Philadelphia with natural gas as a utility. But the service has not remained stagnant over those two centuries. The energy industry is evolving, and PGW is evolving with it to find new and exciting ways to serve its city. Embarking on new initiatives Within the past year, Philadelphia Gas Works has been seeking out new business opportunities—and finding several. One important prospect that the company has been 90
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working hard on is the expansion of its liquefied natural gas (LNG) assets. “We have a very large LNG footprint—over 4 billion cubic feet of storage, in addition to a liquefaction plant and a vaporization plant,” says Craig White, CEO at PGW. “So we have the ability to liquefy and store a substantial amount of LNG, and then we can do a variety of things with that. We can vaporize it and put it into our distribution system, or distribute the liquid via our truck offloading racks. That’s a business that we hope to expand, and that’s got us very excited.” PGW is also looking at increasing
ENERGY
Distribution
involvement with compressed natural gas (CNG) vehicles. The company already has one third party fueling station up and running in Philadelphia, and is hoping to expand this through an aggressive rate structure favorable to facilitating business. ”We believe that fleet use of natural gas for fleet vehicles is something that’s going to expand, as it has in other areas of the country,” says White. “We think it’s going to be here eventually, so that’s another area that we’re aggressively addressing.” A third initiative that PGW has
been pursuing intently as a strong opportunity in the future is combined heat and power (CHP). Installation of CHP systems has already grown substantially this year compared to the year before—White estimates around 30 active projects at the moment. “So it’s pretty exciting,” he says. “Combined heat and power is a nice addition for PGW.” Improving existing infrastructure Older cities throughout the MidAtlantic and Northeast regions of the United States share a rich and expansive history. But they w w w. p g w o r k s . c o m
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PHILADELPHIA GAS WORKS also share aging infrastructure in need of upkeep and renovation. In the City of Philadelphia, PGW is undertaking a major initiative to ramp up the rehabilitation of its own infrastructure, ensuring that it is able to provide better and more reliable service for years to come. “We are accelerating our program, as have other utilities in Mid Atlantic and Northeast regions— areas of the country that have a preponderance of cast-iron bare steel and unprotected steel,” says White, explaining PGW’s most recent undertaking, which consists of excavating and removing existing outdated pipe to be replaced with modern updates. “Newer systems are primarily plastic and welded steel, and we’re moving in that direction with our replacement program. We’re on pace to double our replacement of the aging infrastructure within a year.” To accomplish this goal, PGW has increased its total yearly expenditure from $40 million up to $75 million— in other words, of the $100 million budget that PGW is allotted each year, 75 percent is currently being reserved toward replacing aging infrastructure. But according to White,
ENERGY
as a matter of enhanced reliability and safety, it’s funding well spent. Improving employee safety That matter of safety is vital to Philadelphia Gas Works. “That’s what we’re here to do: we’re here to provide safe and reliable service,” says White. This is a driving force in the company’s current emphasis on infrastructure building and replacement. “Replacing infrastructure reduces risk,” White explains. “When we talk about safety, we’re not only talking about safety as it pertains to our customers: we’re certainly also talking about safety as it pertains to our employees. We have extensive training programs, and much of what we do here at PGW is just to stress that safety is the most important aspect of what we do every day. I want my employees to go home safe to their families each and every day.” Improving consumer satisfaction In addition to its daily focus on the well being of its employees, PGW also understands the importance of maintaining a strong relationship with its user base in both the w w w. p g w o r k s . c o m
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residential and commercial spheres. “One thing we believe is very important: people have to feel they’re getting value for this service,” says White. “When they feel they’re getting good value, they’re more inclined to pay their bill and expand the use of natural gas, especially in a commercial environment. So we see customer satisfaction as a very 94
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integral part of the success of the business as we move forward.” PGW has recently been able to boast stronger JD Power consumer satisfaction scores than ever before, and it attributes much of this to a strong focus on customer satisfaction initiatives, including a revamping of its website and a commitment to taking advantage of
ENERGY
social media to connect with customers directly. “It’s a good way to stay in touch with your customers and inform them,” says White. “We’re using these social media outlets to inform our customers of what we’re doing and when we’re doing it, along with some of the other just basic blocking and tackling—when we’re on their block, what we’re doing, when we’ll be starting a project and when we finish a project. We’re trying to communicate at a very granular level with our customers to improve customer satisfaction and improve the experience when you’re working with a utility.”
Company Information INDUSTRY
Utilities HEADQUARTERS
Correspondence Department, PO Box 3500, Philadelphia, PA, USA, 19122 FOUNDED
Looking forward Moving into the future, Philadelphia Gas Works expects to immerse itself even further in the new initiatives that the company is pursuing today. “I fully expect that we will have made some decisions around LNG and be moving forward with some aspect of that project,” says White. “I see the CHP business continuing to grow with engineers, architects, building operators, all gaining experience with combined heat and power—and with CFOs recognizing the value of greater efficiency in energy systems, which will definitely hit their bottom line in a positive way. We’re going to accomplish a lot of cast iron main replacements, we’re going to expand our markets, and we’re going to expand LNG. So I’m extremely excited that within this next year: you’re going to see significant changes starting to occur at PGW.”
1836 EMPLOYEES
1,650 REVENUE
$800-900 million PRODUCTS/ SERVICES
Utilities
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