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PUBLISHER’S LETTER

2 INDUSTRY TODAY

PUBLISHER’S LETTER

he American Society of Civil Engineers’

practical— of renewing our infrastructure, America

Report Card for America’s Infrastructure

must build smarter. We’ve all heard that smart

recently graded the state of physical condition and

manufacturing is the next Industrial Revolution,

investments for American infrastructure as a barely

but what exactly is that and how do manufacturers

passing D+. Without some serious action, it could

prepare to implement it? Many manufacturers are

soon be failing.

not exactly sure what smart manufacturing is or how

The Trump administration has unveiled a $1.5

it affects them. We provide some possible answers.

trillion plan to get repairs underway. While that

Of course, infrastructure rebuilding means jobs

sounds like it’s a serious monetary commitment to

creation. And jobs creation underlies the state of a

reverse infrastructure decline, in fact there is actually

healthy American economy...and a healthy economy

only some $200 billion in direct federal funding

helps stimulate infrastructure repair. Read about how

available, hardly enough to provide for adequate

in New Mexico, groundbreaking research, generous

long-term fixes to the entire national problem.

state incentives for manufacturers, and immense

What the federal government is hoping to do is

solar resources could support an annual average of

provide incentives to private industry to develop new

over 6,800 New Mexico jobs through 2030.

technologies and approaches to how we build—not only better, but more cost-effectively.

You can’t make anything effectively without an effective supply chain. The Georgia Logistics

Which is one reason why the American Composites

Summit gave industry professionals a look into

Manufacturers Association (ACMA) and its member

the largest logistics and supply chain exhibition at

companies are promoting fiber-reinforced polymers

MODEX 2018. The shared event space provided

(FRP) for construction instead of traditional wood,

multiple days of panels and presentations discussing

concrete and steel materials. FRP is considerably

the latest trends and technologies affecting shipping

lighter than these resources, allowing for easier

and transportation throughout the Southeast and

and more efficient installation, which helps reduce

beyond.

labor costs, along with greater durability and design flexibility and less maintenance and repair. To face the challenges—economic, political and

We hope you enjoy this month’s coverage of the ACMA and FRP, as well as the related coverage to making America’s infrastructure great again. INDUSTRY TODAY 3

CONTENTS

06 AMERICAN COMPOSITES MANUFACTURERS ASSOCIATION

36 CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC) PROFILE | GINCOR Truck & Trailer Werx

MAKING WHAT

DRIVERS WANT

GINCOR Truck & Trailer Werx | PROFILE

GINCOR TRUCK & TRAILER WERX companies build on a 40 year tradition of quality workmanship and technical innovation of truck body up-fitting and custom trailers manufactured for specialized work applications. David Soyka reports.

“W

e build trucks that owners want to own, and drivers want to drive,” says Luc Stang, President & CEO of GINCOR TRUCK & TRAILER WERX, which comprises multiple business units and partnerships that variously manufacture, install

and service work truck modifications and custom trailers used in specialized and severe duty applications. These include up-fitting for dump bodies on Class 3 and larger trucks, roll-offs and hook lifts, cranes, flat tilting trailer decks, and snow and ice removal systems. About 70 percent of GINCOR’s trucks and

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18 GEORGIA CENTER OF INNOVATION FOR LOGISTICS

Managing Editor: Susan G. Poeton Project Director: Brian McMillan

www.industrytoday.com corporate@industrytoday.com

Director of Business Development and Audience Engagement: Steve Jabon

INDUSTRY TODAY 45

44 GINCOR TRUCK & TRAILER WERX

Project Managers: Marcos Elias Jonathan Listig Production: Melissa S. Burge

Profile Writers: Reuben Ford, Lorie Greenspan, Michael Sommers, David Soyka

Art Director: Seema Mazhar Contributing Designers: Jorge Leandro Rodrigues

65 Madison Avenue, Suite 540, Morristown, NJ 07960 Ph. 973.218.0310 Industry Today is published bi-monthly by Positive Publications LLC, 65 Madison Avenue, Suite 540, Morristown, NJ 07960. Copyright © Industry Today 2018. All rights reserved. No part of this publication may be reproduced in any form or for any purpose without prior written consent from the publisher and payment of the agreed fee. ISSN # 1521-8058

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VOLUME 21 • ISSUE 3

PROFILE | GRUPO ASTRA

GRUPO ASTRA | PROFILE

hile Astra is celebrated as a pioneer in the use of plastics, this leading Brazilian manufacturer of toilet seats and bathroom fixtures actually began life fashioning items out of wood. When it was founded in 1957, in Jundíai, a small town some 60 km (37 miles) from São Paulo, this

A SEAT AT THE

PROFILE | MORGAN CORPORATION

MORGAN CORPORATION | PROFILE

BIGGER IS

Morgan Truck Body is North America’s largest manufacturer of medium-duty dry freight and refrigerated truck and van bodies. A new Connecticut plant adds capacity to meet expanding business needs. David Soyka reports.

BETTER

TABLE

Driven by constant innovation, Astra has become Brazil’s leading manufacturer of toilet seats and some other 6,000 items for the construction sector. As the company commemorates 60 years, managing director Manoel Flores talks to Michael Sommers about past revolutions in plastics and future forays into a digital marketplace. 56 INDUSTRY TODAY

INDUSTRY TODAY 57

hen you’re bigger than the rest, you can do more things better. Which in turn allows you to get even bigger. Case in point: Morgan Truck Body. What

started out as a small truck repair shop 66 years ago has grown into the largest North American manufacturer of Class 3 to Class 7 truck and van bodies. Morgan produces truck bodies to accommodate everything from parcel delivery

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INDUSTRY TODAY 81

80 MORGAN TRUCK BODY

56 GRUPO ASTRA

PROFILE | SOCOCO

SOCOCO | PROFILE

ON THE CUTTING EDGE OF

COCONUTS T

Brazil’s leading producer of coconut products for over 50 years, Sococo is a conservative company with a vanguard streak – not to mention its own coconut farms in the Amazon. Managing director Paulo Roberto explains to Michael Sommers how these unique attributes have prepared the company to tackle the global market.

here wasn’t a single coconut to be found in Brazil when Portuguese explorers first set foot on its shores in 1500. It was only in 1553 that the first coconut palm was planted in Bahia. Colonists were amazed at how well it took to the sandy soil, bearing fruit after a mere 6 years compared

68 INDUSTRY TODAY

CLUTCH

PERFORMER

As Brazil developed over the centuries so did the culture and cultivation of coconut palms, whose flesh and milk became staple ingredients INDUSTRY TODAY 69

68 SOCOCO

26 NEW MEXICO

PROFILE | TWIN DISC

with the 20 years it often took in India, the original source of this giant nut.

Pioneering Coconut Producers

TWIN DISC | PROFILE

Twin Disc, Wisconsin-based global manufacturer of drivelines and powertrains for a huge array of equipment in diverse industries, addresses complex challenges to deliver the best engineering solutions. David Soyka reports.

hen you’ve been in business for a century, you’re going to see considerable change. And while the flat plate clutch first introduced by Twin Disc is to this day the basic design for most industrial clutches, the beginning of the twenty first century presents a much a different business proposition than the dawn of the twentieth. Technologies, markets, customers and

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INDUSTRY TODAY 3

90 TWIN DISC

INDUSTRY TODAY 5

American Composites Manufacturers Association

FOCUS

HELPING AMERICA BUILD SMARTER 6 INDUSTRY TODAY

American Composites Manufacturers Association

t the beginning of the year, President Trump unveiled a $1.5 trillion plan to fix America’s D+ rated infrastructure. However, with only $200 billion of that

For years, American infrastructure has depended on traditional materials. Fiber-reinforced polymer composites offer a better way to build.

coming from the federal government, many are left wondering how America’s bridges, roads, and utilities can be built and repaired in a cost-effective way without leaving them vulnerable to long-term degradation or turbulent natural disasters. With the 2018 hurricane season right around the corner, this is an urgent issue. In a political climate driven by a scarcity of funds, the United States can most effectively use taxpayer dollars by prioritizing funding for innovative technology and changing the way our nation builds. Today, a majority of North American bridges, utility poles, crossarms, pipes, and tanks rely on materials that are a legacy from the past such as wood, concrete, and steel. These materials, while familiar to the engineering community, come with a number of all-too-familiar issues, including high maintenance costs, poor strength-to-weight ratios, and slow, costly and labor-intensive installation; factors that lead to premature aging and leave the end product vulnerable to rot, corrosion, and storm damage. However, thanks to robust market advocacy from the American Composites Manufacturers Association (ACMA) and its member companies, many engineers have increasingly turned to fiber-reinforced polymers (FRP), which offer lighter weight, more efficient installation, less maintenance and repair, greater durability and design flexibility. As all industries face workforce development challenges, lightweight composite materials significantly reduce the potential for INDUSTRY TODAY 7

American Composites Manufacturers Association

ite bridge superstructure in Miyun, China, in 1982, composites have been gradually gaining acceptance from civil engineers as a construction material. Today, composites are often utilized as reinforcing materials for concrete in repair and retrofitting of existing infrastructure applications. Over the past 20 years, more than 500 new bridges in North America have been built with composites. Thousands more have had concrete structures repaired with composites, including some of the most iconic ones in the world, such as the Sunshine Skyway Bridge in Tampa, Fla. Improving Concrete and Steel When it was first constructed, the Skyway Structures Since the construction of the first all-compos- was the world’s longest bridge. But while it was injury and extend the working life for construction workers. Adding these composite materials to our nation’s toolbox of construction options can bring long-term savings by reducing labor costs and by resisting nearly everything from fire to salt water to hurricanes. Although FRP is not yet the primary material used in civil engineering, there are plenty of examples that show how composites can serve the needs of communities in need of stronger, longer-lasting structures.

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American Composites Manufacturers Association

aesthetically appealing, beneath the surface, many of its trestle span girders were cracking. The bridge’s inspection history indicated that the number of cracked beams had increased over time. In addition to the deficient girders, there were a number of cracks in the bridge’s pier caps. In some cases, these cracks were very large and exhibited visible signs of water penetration and damage. Not only were the girders deficient in terms of shear and torsion, but they were also compromised from a durability standpoint. A repair was critical in order to protect the bridge against future concrete fatigue. Prior to the start of construction in 2006, load testing was performed on scale models of the precast girders in the Florida Department of Transportation’s (FDOT) Structures Lab in Tallahassee, Fla. The tests confirmed that an upgrade with carbon fiber/epoxy composite materials would be the best solution for repairing the shear deficiency in the girders. FDOT turned to Lyndhurst, N.J.-based Sika Corporation to provide the materials, which easily conformed to the geometry of the girders. Furthermore, Sika’s products were very easy Pictured previous spread: The Sunshine Skyway Bridge in Tampa, Fla., is one of the most recognized structures in the United States and an example of how fiber-reinforced polymer (FRP) composite materials can be used to repair large concrete structures. Photo Credit: TripAdvisor.com; left: The highest aboveground subway station in the world, the Smith-9th Street stop on the New York City MTA Culver Line, is supported by a viaduct that needed to be repaired with FRP after its concrete structures, built in the 1930s, were starting to show their age. Photo Credit: molybdena, Flickr.com; above: This composite pole, installed by Creative Pultrusions, Inc. in Big Pine Key, Fla., was designed to withstand wind forces higher than 150 mph. After Hurricane Irma in 2017, it was one of only a few poles in the area left standing. Photo Credit: Creative Pultrusions, Inc. INDUSTRY TODAY 9

American Composites Manufacturers Association

to install, extremely durable, not susceptible to corrosion, and provided high tensile strength and modulus of elasticity. By planning out the construction sequence and using a well-trained workforce with previous experience working with carbon fiber composite materials, the job was completed one month ahead of schedule. 10 INDUSTRY TODAY

Sika’s materials were also instrumental in the repair of a viaduct supporting the highest aboveground subway station in the world – the Smith-9th Street stop on the New York City MTA Culver Line. The viaduct is primarily supported by a series of concrete-encased steel bents that have been in service since the 1930s.

American Composites Manufacturers Association

However, since the viaduct had no existing waterproofing membrane, water infiltration was a serious problem. As the water penetrated the concrete, it caused significant corrosion damage to the reinforcing steel and the underlying steel members encased in concrete. This led to cracking, which eventually led to pieces of concrete coming loose from the structure. In 2011, the city decided to repair the viaduct with 1 million ft2 (92,900 m2) of composite fabric from Sika to provide confinement to the concrete. Working on an elevated viaduct on an active subway line in the middle of Brooklyn would present enough obstacles for any contractor. However, no one predicted what would happen in October 2012. Hurricane Sandy struck New York with a vengeance and caused the entire NYC Subway System to shut down, with many lines being out of service for over a week due to significant flooding. Wind gusts were recorded at 100 mph (160 kph), 53 New Yorkers lost their lives, 250,000 vehicles were destroyed, and $18 billion in damages were recorded just in New York. Despite this devastation, work on the Culver Line was only shut down for a few Pictured: On April 18, during a hearing before U.S. House of Representatives Subcommittee on Research and Technology of the Committee on Science, Space, and Technology, members from the American Composites Manufacturers Association and its allies explained the need to develop codes and standards that allow designers and engineers to build confidently with composite materials. From L to R: Joannie Chin, Deputy Director, Engineering Laboratory, National Institute of Standards and Technology (NIST); Dr. Hota GangaRao, Wadsworth Distinguished Professor at the Statler College of Engineering, West Virginia University; Dr. David Lange, Professor and Narbey Khachaturian Scholar in the Department of Civil and Environmental Engineering at the University of Illinois; Shane Weyant, President and CEO, Creative Pultrusion, Inc. Photo Credit: U.S. House of Representatives.

INDUSTRY TODAY 11

American Composites Manufacturers Association

Tom Dobbins has been the President for the American Composites Manufacturers Association (ACMA) since 2006. Prior to joining ACMA, Mr. Dobbins served in the Executive and Legislative branches of the US government, as well as in two other associations. He has also worked in the private sector doing government relations and public relations. During his tenure at ACMA, Dobbins has worked with ACMA members and staff, along with partners at the Society for the Advancement of Material and Process Engineering (SAMPE) to launch the CAMXThe Composites and Advanced Materials Expo. Since its launch in 2014, CAMX has established itself as the premier composites industry event in North America. Dobbins has also overseen the creation of a new Education Hub for technical industry resources, as well as new websites for Composites Manufacturing magazine and ACMAnet.org. His leadership also led to the creation of targeted education websites, CompositesLab.com and DiscoverComposites.com, designed to promote the benefits of composites to a wider audience. Under Dobbins’ leadership, ACMA’s Composites Growth Initiative program has launched new committees and new programs and its government affairs program has been effective in working with federal agencies and Congress on key issues for the industry. ACMA’s federal advocacy has led to the inclusion of language in the 2015 highway bill that directs the Transportation Research Board to study the performance of bridges made with composites. Dobbins also oversaw ACMA’s work with the Department of Energy and stakeholder groups to launch the Institute for Advanced Composites Manufacturing Innovation (IACMI), which will invest over $250 million in R&D in the industry over a 5 year period to promote composites recycling and workforce development. 12 INDUSTRY TODAY

American Composites Manufacturers Association

days, as the new FRP reinforcement successful- pests, storms, and wildfires. This forces utility and telecommunication companies to replace ly resisted the hurricane forces. 2.5 million wood power distribution poles every year that are damaged and destroyed by woodAn Alternative to Wood Utilities While hurricanes can have a devastating impact peckers, ants, termites, and storms. According on ground transportation, their damage to an to a 2009 report from the U.S. Department of area’s utilities can be felt for years. Most of Energy, more than 70,000 utility poles were today’s utility poles are made of wood, which destroyed during Hurricane Katrina. Another is susceptible to significant damage from rot, 60,000 were destroyed during Hurricane Sandy. Pictured: After a two-year rehabilitation project, Brooklyn’s Smith-9th St. Station reopened on Fri., April 26, 2013, restoring F and G service to the Red Hook, Gowanus and Carroll Gardens communities. Photo Credit: MTA New York City Transit / Marc A. Hermann.

INDUSTRY TODAY 13

American Composites Manufacturers Association

However, despite their drawbacks, utilities continue to replace failed wood poles with more wood poles that are destined to fail. This happens, in large part, because of a disconnect between how long people think wood poles last (60 years) and how long they actually do (2514 INDUSTRY TODAY

30 years). Composite poles, however, can last two to three times as long as the average wood pole, will not rot over time, and are virtually maintenance-free over the lifetime of the pole. One area that has seen firsthand how composite poles perform in hurricanes is the Virgin

American Composites Manufacturers Association

create a cascade by bringing down many other poles with it. Composite poles, like the ones erected in parts of the Virgin Islands by RS Technologies, have enough reserve strength to absorb that elastic strain energy and stop the cascade failure. Another area that took a major hit during Hurricane Irma was the Florida Keys. Prior to the hurricane, CompSites International (CSI) was working on a microcell application to extend the cellular network for AT&T in Big Pine Key, Fla. CSI has a long track record of success working with Verizon, AT&T, T-Mobile and other wireless and utility companies in providing small cell pole infrastructure, integrated cabinet designs, and full-turnkey site development services. CSI’s relationship with AT&T, along with product demonstrations that proved composites could withstand 150 mph winds, were the deciding factors in composite poles being chosen for the project. CSI worked with Creative Pultrusions, Inc. (CPI) to install 30 of CPI’s pultruded composite poles. After the hurricane hit, CSI visited every installation in Big Pine Key and verified all poles were still standing. Islands. After Hurricane Irma, only eight poles in the territory were left standing. All eight were made with FRP. Typically, when a Category 5 hurricane goes through a region with sustained wind speeds in excess of 156 mph, a wooden utility pole might not only fail, it could also

Pictured: During the 2017 International Bridge Conference, the ACMA Transportation Structures Council displayed two pieces of rebar, one steel and one fiberglass, side-by-side in containers of saltwater. After 20 hours in saltwater, the saltwater containing steel turned yellow, showing corrosion, but the solution with fiberglass remained clear. Photo Credit: ACMA INDUSTRY TODAY 15

American Composites Manufacturers Association

Overcoming Market Barriers For years, a lack of design codes and standards has been a major barrier to increased adoption of composites in infrastructure. Last year, ACMA took a major step to address that 16 INDUSTRY TODAY

problem during a workshop at the National Institute of Standards and Technology (NIST) that laid the groundwork for a “roadmapping” document that outlines actions that industry, academia and Congress can take to help engi-

American Composites Manufacturers Association

modeling, increased education and training. ACMA moved one step closer to overcoming these barriers on April 18 during a congressional hearing on how creating standards for composites can strengthen American infrastructure. The hearing focused on the benefits of composites and explored NIST’s unique ability to aggregate existing standards and design data for composites and validate them for broader dissemination and use. In addition to its advocacy in the standards space, ACMA is working with Members of Congress to bring forth legislation that would create an interagency innovative materials task force to assess existing standards and test methods and compare them against composite materials. ACMA is also working to educate end users and asset owners through its new website, DiscoverComposites.com. The site features an introduction to the basics of composite materials, their benefits, how they’re made, how they compared to other materials, and a wealth of case studies and market applications. The website also features rebuttals to some commonly held myths about FRP. To learn more about composite materials in infrastructure applications, visit https://discovercomposites.com/infrastructure/. neers and designers build more confidently with composites. The report identified needs including aggregation, validation, and dissemination of existing standards, development of advanced durability testing and performance

Pictured: This picture shows a wood pole line built in about 2009 that has been hit by multiple hurricanes, most recently and severely by Hurricane Matthew that took down about 2700 wood poles on Grand Bahama. Photo provided by Galen Fecht, RS Technologies. INDUSTRY TODAY 17

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

FEATURE

18 INDUSTRY TODAY

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

2018 GEORGIA LOGISTICS

SUMMIT LOOKS TO THE INDUSTRY’S FUTURE

his year’s Georgia Logistics Summit gave industry professionals a look into the largest logistics and supply chain exhibition on the continent thanks to its co-location with MODEX 2018. The shared event space provided multiple days of panels and presentations discussing the latest trends impacting the shipping and transportation landscape throughout the Southeast and beyond. The event also bridged the gap between theoretical conversations and practical demonstrations. As attendees walked out of sessions discussing the latest technology disruptions, they had the opportunity to see those very applications put into action by vendors and exhibitors on the show floor.

INDUSTRY TODAY 19

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

Here are the highlights of those conversations and demonstrations for logistics industry professionals who were unable to make it to this year’s summit.

Innovation Within One of the World’s Largest Air lines Becoming the leader in overall traveler satisfaction takes tremendous logistics and operational execution on a daily basis. In his keynote address, Gareth Joyce, Senior Vice President for Airport Customer Service, and President, Cargo at Delta Air Lines, described the ways the airline continues to innovate internally so 20 INDUSTRY TODAY

that the customer experience remains paramount. Through their innovation center, the Hangar, and other internal programs, Delta is able to keep their more than 2 million annual flights operating as efficiently as possible. Pictured previous spread: Gareth Joyce, SVP Airport Customer Service & President, Cargo at Delta Air Lines, served as a keynote presenter at the 2018 Georgia Logistics Summit; above: The “Smart State” breakout session explored how Georgia is embracing smart tech within the state; right: Matt Markham, Director of the Georgia Center of Innovation for Logistics, welcomed attendees to the 2018 Georgia Logistics Summit.

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

Technology Innovation Across the Supply Chain Technology continues to advance at a rapid pace in the logistics industry, so it was no surprise to hear many panelists and exhibitors discussing the latest innovations disrupting the supply chain. Breakout sessions like the “Logistics Technology Disruptions” panel explored how cutting-edge systems such as IBM’s Watson and blockchain applications are

poised to dramatically transform the efficiency and capabilities of logistics and transportation management. In addition, experts from Georgia Tech, Augusta University, AT&T and Applied Information, Inc., came together during a “Smart State” breakout session to share how Georgia is expanding the reach of mobile technology and Internet of Things (IoT) connectivity from metro areas to the rest of the state. These investments that are turning Georgia into one of the first smart states in the country are already paving the way for logistics innovation as renowned companies such as Waymo begin testing self-driving trucks in Atlanta this year. The discussions in these sessions around automation and connectivity on the roadway were complemented by physical demonstrations of how these innovations can be applied in other areas of the supply chain, such as warehouse management and materials handling. Several exhibitors showcased how autonomous fork lifters and other forms of robotics can help warehouse workers work safer and smarter.

Workforce Evolution Matches Technology Development Discussions around the latest technology innovations connected to conversations on the future of the logistics industry’s workforce. This topic took center stage during several panels and breakout sessions that focused on strategies INDUSTRY TODAY 21

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

for businesses to attract and retain top talent for every position in the supply chain. Many of these conversations tied back to technology developments by focusing on the need for more Pictured left: Christopher Tomlinson, Executive Director of the State Road and Tollway Authority and Georgia Regional Transportation Authority, participated in a panel discussion during the “T3: Transportation Takeaways” session; right: Carole Bennett, Assistant Director of Business Operations at Georgia Tech’s Supply Chain & Logistics Institute, addressed workforce challenges during “The Talent Pipeline: Trends & Solutions” session.

22 INDUSTRY TODAY

talent training to meet future labor needs. As automation becomes more prevalent across the supply chain, businesses should prioritize offering employees the opportunity to learn new skills so they’re best positioned to step into emerging roles such as robotics technicians or IT specialists. The “Student Showcase” made a return to this year’s summit, offering businesses the opportunity to meet the next generation of logistics industry professionals currently attending Georgia universities. This showcase gave these students the ability to present relevant industry

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

projects to potential employers. Additionally, the Summit Executive Committee placed a focus on transitioning veterans interested in the logistics industry and created an initiative where veterans received discounted event registration so they could attend the Summit and explore potential job opportunities in the industry.

Regional Industry Developments Alongside these broader industry topics, the Georgia Logistics Summit also zeroed in on several major developments that impacted the industry in Georgia over the past year.

Representatives from the Georgia Ports Authority were on hand to elaborate on the Mason Mega Rail project, a new rail expansion at the Port of Savannah. This expansion will enable the port to double its yearly rail capacity when completed, which will ultimately improve the state’s competitive advantage in global trade. State officials also discussed Georgia’s continuing 10-year commitment to invest $11 billion in highway infrastructure expansion, which includes plans to construct lanes reserved for commercial vehicles along Interstate 75. Upon INDUSTRY TODAY 23

GEORGIA CENTER OF INNOVATION FOR LOGISTICS

Matt Markham is the director of the Georgia Center of Innovation for Logistics, a division of the Georgia Department of Economic Development that helps companies tap into the state’s world-class logistics infrastructure to improve supply chain efficiency, support growth and increase global competitiveness. completion, this will mark the introduction of workforce and infrastructure developments. the first truck-only highway lanes in the country. More importantly, the event gave businesses the opportunity to network with their peers to learn from each other and form partnerPreparing For The Future The Georgia Logistics Summit was an ideal ships that will better equip their organizations setting for industry professionals to congregate to overcome their own unique challenges. and get up to speed on the latest technology, Maintaining these connections will be essen-

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GEORGIA CENTER OF INNOVATION FOR LOGISTICS

tial in the years to come as businesses position themselves to adapt to continuing changes within the industry. The inevitability of change was hammered home in a presentation delivered by Pete Mento, vice president of global trade and managed services at Crane World Wide. During his discussion on what the future of the logistics Pictured left: The “Logistics Technology Disruptions” panel discussed the latest industry innovations; above: Pete Mento, VP of Global Trade and Managed Services at Crane World Wide, shared economic insights at the 2018 Georgia Logistics Summit.

industry may hold for Georgia, he predicted that people who are alive today would likely one day see the first humans sent to Mars, while their children would likely be alive to one day see the first children born on Mars. In other words, there will be incredible advancements in the coming decades, so it should be no surprise when logistics industry professionals see the same level of change over the course of their careers. With an up-to-date understanding of the latest technology and workforce issues, along with the right industry partners, businesses should be well equipped to handle whatever the future holds. INDUSTRY TODAY 25

NEW MEXICO

FEATURE

SOLAR INNOVATION MEANS NEW MEXICO JOBS

AMERICAN JOBS PROJECT 26 INDUSTRY TODAY

NEW MEXICO

New Mexico can capitalize on its strengths in the advanced solar industry to drive economic growth and support over 6,800 jobs annually. growth with investments in natural gas and wind projects. Building on these efforts, the latest report from the American Jobs Project takes a close look at a significant advanced energy opportunity in the state: advanced solar. The report, created in partnership with the Bureau of Business and Economic Research at The University of New Mexico, counts the state’s groundbreaking research, generous state incentives for manufacturers, growing industry value chain, and immense solar resource as key assets for strategic cluster development. With targeted investments and forward-looking policies, the advanced solar industry could support an annual average of over 6,800 New Mexico jobs through 2030.

Beyond Conventional Solar

dvanced energy is already producing $1.4 trillion in annual private-sector revenues around the world, and U.S. states are well positioned to take advantage of this growing global market. New Mexico is steadily capitalizing on this

Advanced solar technologies go beyond runof-the-mill solar panels dominated by Chinese manufacturing and represent a robust segment of the solar market. The advanced solar industry is projected to grow 16.8 percent annually through 2030 in North America and see similar growth at the global scale. These technologies leverage enhanced form and function to create hyper-efficient, inexpensive, multifunctional, and easy-to-integrate INDUSTRY TODAY 27

NEW MEXICO

solar products. For example, next-generation solar cells can be embedded in building facades, window film, or roof tiles for on-site electricity generation, and concentrating solar power with molten salt energy storage can quickly meet demand across a utility network. By creatively deploying innovative solar technologies, projects can expand access to electricity while serving additional local needs. In particular, building-integrated solar cells can support Pictured previous spread: CSP Heliostat Mirrors; above: Solar Testing Installation; right: Building-Attached PV. Photo credit - (Wikimedia Commons). 28 INDUSTRY TODAY

creative placemaking in neighborhoods, and solar-powered broadband can expand internet connectivity in rural tribal areas, as demonstrated by a recent Navajo Nation community proposal.

Strengthening New Mexico Manufacturing New Mexico currently has the second-lowest manufacturing employment concentration in the nation, and the state has lost one-quarter of these jobs since the onset of the recession. Changes in the global energy market, overreliance on government jobs, and a reduction

NEW MEXICO

in tourism have contributed to a slow postrecession recovery that has hindered employment growth and depressed median income, which is the lowest in the region. Strengthening the state’s small manufacturing base could help diversify its economy, attract more private investment, and facilitate a strong labor market that engages its large population of unemployed, underemployed, and low-wage workers. The advanced solar industry presents an opportunity to bolster manufacturing in New Mexico. The state is home to 15 advanced solar manufacturers, anchored by corporate leaders such as Array Technologies, SolAero Technologies, and Unirac. New Mexico’s robust research environment also produces a wealth of startups, including mPower Technology’s

microscale solar cells, UbiQD’s quantum dots, and 35 Solar’s efficient thin film manufacturing process. Over 2,500 workers drive the current solar industry, with 29 percent in manufacturing. This does not include the technical expertise in materials science, nanotechnology, photonics, and microelectronics housed at the state’s labs, universities, and other manufacturing facilities like Intel. The American Jobs Project’s research indicates that New Mexico’s advanced solar industry could support an average of over 6,800 jobs each year through 2030 and more than double its current solar workforce. That includes direct jobs in manufacturing and materials development, and a wide array of good-paying jobs that cater to different education and

INDUSTRY TODAY 29

NEW MEXICO

experience levels, including electricians, electrical engineering technicians, and industrial production managers. Our jobs calculation also includes indirect jobs supplying equipment, materials, and services to manufacturers and developers, as well as induced jobs resulting from increased spending in the local economy. Additionally, New Mexico could cultivate a 30 INDUSTRY TODAY

local market for advanced solar technologies to amplify job impacts in installation, operation, and maintenance businesses across the state.

Building Blocks for Cluster Development So exactly how can New Mexico capitalize on this exciting opportunity? By building a vibrant

NEW MEXICO

assets and gaps within each building block, state and local leaders can strategically plan for growth. New Mexico’s national labs and research universities anchor the innovation ecosystem with cutting-edge research in solar and solar-related fields, including Sandia’s National Solar Thermal Test Facility and UNM’s well-established optical science and engineering program. Furthermore, resources such as the New Mexico Small Business Assistance Program and the Center for Collaboration and Commercialization connect entrepreneurs and businesses to technical expertise at the labs and universities. Access to capital is improving due to a strong angel network and momentum from the Catalyst Fund. New Mexico also facilitates diverse funding opportunities, such as the Venture Acceleration Fund’s non-dilutive seed Pictured: Building-Integrated PV; below: CSP Parabolic Trough Collectors.

economic cluster. Clusters require several foundational building blocks coordinated for growth: an innovation ecosystem that cultivates new ideas, access to capital for new and expanding businesses, education and training for a skilled workforce, a comprehensive value chain, and a local market for homegrown goods. By identifying the state’s INDUSTRY TODAY 31

NEW MEXICO

financing and debt financing from The Loan Fund and WESST. New Mexico ranks second in the nation for future solar training demand and offers job incentives and degree/certificate programs upon which to expand. For example, the Job Training Incentive Program supported 2,009 new jobs at an average wage of $17.45 in 2017, and the state has eight solar training programs across its higher education network. Pictured: Solar Canopy; right: CSP Parabolic Trough Collectors (Sandia National Laboratories). 32 INDUSTRY TODAY

In addition to 15 manufacturers, New Mexico’s advanced solar value chain boasts several installers and service companies for local projects. Its base of 96 photonics and nanotechnology firms could also plug into supplier networks and bolster manufacturing. Groups like the New Mexico Solar Energy Association also fortify business advocacy and public education efforts. New Mexico has a wide slate of incentives and resources for both in-state solar manufacturing and installation. For example, solar companies can claim a tax credit on manu-

NEW MEXICO

facturing equipment and commercially-owned solar energy generators were able to receive a production tax credit since the end of 2017. The state’s solar energy potential has been key to attracting significant investment from large, sustainably-minded businesses, as seen with Facebook’s Los Lunas Data Center.

Strategies for Growth The American Jobs Project’s report provides 15 tailored recommendations for New Mexican leaders to grow the advanced solar industry. These strategies draw on best practices to target gaps in the innovation ecosystem, access to capital, workforce development, value chain,

and local market. New Mexico could bolster advanced solar workforce pathways by providing both simulated and real on-the-job experience for students, strengthening coordination between industry and training programs, and engaging electricians in solar trades through continuing education courses. The state could reinforce the startup life cycle by encouraging faculty entrepreneurship at universities and establishing a technology maturation loan fund to bridge the commercialization “valley of death.” Government leaders could also connect with and broker support from philanthropic foundations for public invest-

INDUSTRY TODAY 33

NEW MEXICO

ments in workforce training, technology development, and industry growth. Other strategies focus on cultivating a strong local market for advanced solar technoloPictured: Space Solar Array (NASA). 34 INDUSTRY TODAY

gies, especially through increased access for rural and tribal communities. These include lowering cost barriers via inclusive financing mechanisms and streamlined permitting procedures. Additionally, startups could purposefully engage with these communities for small-scale

NEW MEXICO

The American Jobs Project is a nonprofit, nonpartisan, thinkand-do tank that identifies pathways to create good-paying jobs in advanced energy and manufacturing through data-driven economic development. We empower states to claim their share of the fast-growing global economic phenomenon that is advanced energy. http://americanjobsproject.us/

demonstration projects, helping to validate advanced solar products while expanding local access to electricity and other services. New Mexico’s emerging advanced solar industry is a solid foundation upon which the state can grow its economy, support 6,800

jobs, and become a leading innovator and manufacturer of advanced solar technologies. Maximizing the opportunity that increasing national, regional, and global demand presents requires a concentrated effort from leaders in state and local government, industry, and academia. That’s why effective first steps for New Mexico are building a comprehensive cluster development strategy to chart a path forward and establishing a center of excellence to catalyze homegrown innovations. These efforts will put New Mexico’s advanced solar industry on the map and serve as a beacon for talent and investment. New Mexico is well positioned to reap the benefits of a vibrant economic cluster: a resilient state economy, a robust workforce ready for the jobs of the future, an active entrepreneurial community, and a population optimistic about opportunities close to home. INDUSTRY TODAY 35

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

FEATURE Predictions say Smart Manufacturing will be the next Industrial Revolution. What exactly is SM and how do manufacturers get ready for it?

very manufacturer would like to believe what their organization is doing is smart, but the concept of Smart Manufacturing (SM) isn’t exactly about individual intelligence. Rather, it’s about the manufacturing industry as a whole and amplifying its productivity, technology and communication along the value chain.

What Exactly Is Smart Manufacturing? Over the past several years, the topic of Smart Manufacturing (SM) has been a conversation among industry experts, strategists and thought leaders. However, despite its media coverage, many on the front lines of manufacturing aren’t quite sure what SM entails or why it’s even relevant to their organization. 36 INDUSTRY TODAY

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

PREPARING FOR SMART

MANUFACTURING

INDUSTRY TODAY 37

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

To state it simply, it is the use of real-time data and technology when, where and in the forms that are needed by people and machines. A more comprehensive definition is provided by the National Institute of Standards and Technology (NIST). They state that SM systems are “fully-integrated, collaborative

38 INDUSTRY TODAY

manufacturing systems that respond in real time to meet changing demands and conditions in the factory, in the supply network, and in customer needs.” The concept and successful implementation of SM is being predicted to be the next Industrial Revolution. And with many other advances in

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

recent years, it all has to do with technology connectivity and the unprecedented access to, and contextualization of, data.

The Tools That Make SM Work In the same way there are “microprocessors” that make it possible for smartphones to operate

California Manufacturing Technology Consulting (CMTC) is California’s trusted resource for a thriving manufacturing industry and is part of the MEP National Network™, a unique public-private partnership that delivers comprehensive, proven solutions to U.S. manufacturers, fueling growth and advancing U.S. manufacturing. For more information visit www.cmtc.com. Email: sbrand@cmtc.com Web URL: www.cmtc.com

like mini-computers, there’s the “cloud” where an almost-unlimited amount of data can be stored and retrieved. Also, there are “apps” that can be downloaded to help us keep track of what we spend, track the location of people and devices, track how many steps we’ve walked, etc. SM utilizes all of the same components, addressing the complexities of security, interoperability and intellectual property for manufacturing. SM will create an open atmosphere where fact-based decisions can be made and decision makers will have the trusted data when Pictured: Smart Manufacturing depends on data, which can potentially be gathered by any device.

INDUSTRY TODAY 39

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

it’s needed, where it’s needed and in the most (cyber physical systems) opens up new areas useful form needed. Solving problems will be of innovation that will optimize the entire manufacturing industry to create higher based on a total picture. quality products, improve productivity, increase energy efficiency, and sustain safer plant floors. Smart Manufacturing Benefits: As SM is adopted, new technology based What Are They? This merger of the physical and virtual worlds manufacturing jobs will become available, 40 INDUSTRY TODAY

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

What Does SM Mean for the Manufacturer? If you’re a small manufacturing organization, what are your strategies for improving upon your processes? What do you want to accomplish – increase sales, reduce costs, improve efficiency, or have a more agile supply chain? It’s likely that you’ve purchased hardware or software along with a license to use the technology to help you accomplish one or more of your goals. Smart Manufacturing brings small and medium-sized manufacturers the ability to access new and growing forms of business intelligence. SM offers tools to analyze data and test simulations that can drastically improve their performance, products and designs. It also offers the ability to collaborate with suppliers, both upstream and downstream, more effectively.

The Smart Manufacturing Platform The concept of a cloud-based open access SM platform allows manufacturers to integrate existing and future plant data, simulations and systems across manufacturing functions. What creating direct manufacturing and non-manu- does this mean? The cloud is basically a secure network of facturing positions. Creating smarter factories will allow the U.S. servers on the internet to store, manage and to remain competitive with companies abroad. process systems data and analytics. Why is this New, overseas manufacturing facilities are being constructed with Smart Manufacturing Pictured: Smart Manufacturing promises to deliver trusted data to decision makers when and where technologies built in. needed. INDUSTRY TODAY 41

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

important? This eliminates the need for companies to purchase and maintain a large IT infrastructure that requires support. Today, although many manufacturing processes rely on control contributions by computers, the systems and data on these computers exist in silos with little or no connectivity. The SM platform will allow processes to be integrated to support informed decision-making. In some cases, the integration of currently siloed processes may bring to light hidden inefficiencies and waste. 42 INDUSTRY TODAY

Companies of all sizes will be able to gain easy, affordable access to run simulations and gain analytical data for their particular needs. Manufacturers will have the newfound ability to shop for applications through marketplaces that cater to their organization’s needs using any device with internet capability.

How Manufacturers Can Prepare Although the SM platform is still under development, there are things that a manufacturer can do to prepare.

CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING (CMTC)

One is to make planned equipment purchases with a view toward SM. There is manufacturing equipment today that offers data gathering and data collection capabilities. Another way to prepare is to confirm capturing of data and its contextualizing information that will be most relevant to answering/addressing your pressing business needs and challenges. These approaches give companies that have adopted SM a competitive advantage by better enabling fact-based decisions to address challenging issues. In order to be ready for these technological advances, a manufacturer can start taking small steps today to improve their overall production performance by beginning to invest in “low-cost” smart technology that they can use in the future.

Infrastructure Changes: The What, Where & Why A common misconception about Smart Manufacturing is that it will require organizations to drastically transform their current operations and invest in complex technology. While some change is necessary, of course, SM greatly simplifies this transition by building to the capabilities that manufacturers have currently. One of the key concepts of Smart Manufacturing is recognizing the value of data as a key asset to be developed and managed. Put another way, for a system that analyzes data, the key asset is not the analytics system

itself but the data itself. It’s the data used to build and validate the analysis and the data that are generated. Such an emphasis on data causes us to think differently about where to focus resources. For any operational objective there needs to be a source of relevant data. The sources of data can be as basic as a tablet or smart phone -- or as sophisticated as a wide area sensor network. The point is, data is valuable in the context of the operational objective, not the sophistication of the sensors. As long as it’s possible to get data to the SM network, the factory can begin their SM journey. Infrastructure changes needed to accommodate the applications that use and act on the data happen within the SM platform — giving manufacturers the convenience of making less drastic changes within their facilities.

The Biggest Change Is in People — Not Technology A major part in seeing success early has to do with the company culture and the commitment of team members. It’s important to remember that all the integration and use of technology is rendered useless if it is combined with employees who don’t fully understand how it will make their job easier, not harder. And just as crucial as employee support is needed for a successful SM path, it can also serve as the biggest hurdle in SM implementation.

INDUSTRY TODAY 43

PROFILE | GINCOR Truck & Trailer Werx

MAKING WHAT

DRIVERS WANT

44 INDUSTRY TODAY

GINCOR Truck & Trailer Werx | PROFILE

GINCOR Truck & Trailer Werx companies build on a 40 year tradition of quality workmanship and technical innovation of truck body up-fitting and custom trailers manufactured for specialized work applications. David Soyka reports.

“W

e build trucks that owners want to own, and drivers want to drive,” says Luc Stang, President & CEO of GINCOR Truck & Trailer Werx, which comprises multiple business units and partnerships that variously manufacture, install and

service work truck modifications and custom trailers used in specialized and severe duty applications. These include up-fitting for dump bodies on Class 3 and larger trucks, roll-offs and hook lifts, cranes, flat tilting trailer decks, and snow and ice removal systems. About 70 percent of GINCOR’s trucks and

INDUSTRY TODAY 45

PROFILE | GINCOR Truck & Trailer Werx

trailers are sold through dealers, with the remaining through direct sales. “While many of our products are custom designs, we do also build for dealer inventory,” Stang explains. “We work with our dealers to determine what our customers most likely need in a truck or trailer and manufacture accordingly. Given

46 INDUSTRY TODAY

that a made-to-order design can take anywhere, depending upon the complexity of the application, from four weeks to four months to manufacture and deliver, customers experiencing a sudden or unexpected uptick in business may need of a truck they can drive off the lot. So we do provide a number of pre-built vehicles

GINCOR Truck & Trailer Werx | PROFILE

to anticipate those situations.” GINCOR Truck & Trailer Werx is based in Canada with 14 locations across the provinces, with about a half million square feet in manPictured left to right: Steel Contractor Dump Body; Aluminum Van Body; Quad Axel Float Trailer.

ufacturing space. The head office is located in Mattawa, Ontario. Business is split roughly evenly between truck and trailer sales, and while it does market throughout North America, sales below the 45th parallel are primarily trailers. “The regulations for trucking vary not only between Canada and U.S., but also among

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PROFILE | GINCOR Truck & Trailer Werx

provinces and states,” Stang says. “Trailers on the other hand are fairly standard regardless of where they are operated. Since our manufacturing and service centers are based in Canada, most of our trucks are made for the Canadian market.” Stang emphasizes that what differentiates GINCOR Truck & Trailer Werx from other truck body up-fitters and trailer manufacturers is the experience and passion of its employees. The company employs 550 and when Stang says they are passionate about their jobs, he isn’t merely using a current buzzword. “GINCOR itself has been around for forty years,” he notes. “Other business units we’ve acquired or partnered with are equally well-es-

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GINCOR Truck & Trailer Werx | PROFILE

Pictured left to right: Curtainsider Van Body; Tri-axle Dump Body; Landscaper Dump Body.

BUILDING A FAMILY TRADITION What’s now known as GINCOR Truck & Trailer Werx started out a little differently. Until recently, it was known as Gin-Cor, which is a shortening of Gingras Corriveau, the combined names of the original owners. Originally started as a welding fabrication and repair shop in 1978, Gingras Corriveau became a Bibeau™ dump-body sales and installation distributor in 1986, and soon thereafter become the number one dealer in Canada. The company began to diversify in acquiring American Coleman snowplows; today it is the North American importer of Sweden’s Falköping snow and ice control equipment. Stang, a Corriveau nephew, bought the company in 2002, and has successfully and aggressively built the company to one that today operates well-recognized brands related to trucks and trailers used in custom severe-service applications—J.C. Trailers, Durabody, and Del Equipment. In addition to Bibeau and Falköping, GINCOR Truck & Trailer Werx is also affiliated with Viking Cives Ltd., snow and ice equipment. They have just announced a powerful new partnership with Germany’s Schmitz Cargobull, bringing innovative refrigeration technology to the Canadian transport industry for the first time. INDUSTRY TODAY 49

PROFILE | GINCOR Truck & Trailer Werx

who see themselves as vital contributors to our industry who are committed to making high quality products.”

Built on Experience It’s no surprise then that GINCOR Truck & Trailer Werx considers investment in its employees as one of its key differentiators. “We ®

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“GINCOR Truck & Trailer Werx employees are passionate about their jobs and are dedicated to achieving the highest quality workmanship. Some employees have 50 years of service, many 25 years or more.”

GINCOR Truck & Trailer Werx | PROFILE

Pictured left to right: Steel Platform Body; Pony Dump Pup Trailer; Tri-axle Roll-Off.

work is custom, we need skilled craftspeople,” deal with four or five OEMs for the truck and Stang says. Unfortunately, trade schools aren’t emphathe chassis, and then we build on that. We don’t have a lot of automation. Because much of the sizing traditional manufacturing skills such as welding as they once did when the company’s more veteran employees were younger. “These days the technical schools seem to be more focused on programming and other high tech training,” Stang says. “However, we do work with local schools and colleges to offer apprenticeship programs in the skill sets we need. In terms of general hiring, we look for people who have attitude and aptitude that we can then train with the required skills.” He adds, “A few years back when business was in a downturn, unlike some of our comDEL Equipment & Swenson – Premier Partners petitors we continued to develop both our for over 20 years ! people and our capabilities. As demand came Together Swenson and DEL have offered valuable solutions to our customers through innovative products like the new back for our products, unlike some of our comEVolution Smart Spreader. petitors, we had the people and processes in 127 Walnut Street, Lindenwood, IL 61049 place to provide customers with the quality and 888-825-7323 | www.swensonproducts.com INDUSTRY TODAY 51

PROFILE | GINCOR Truck & Trailer Werx

innovation they needed.”

Best Warranties The company’s commitment to the highest workmanship is backed by what it terms as the best warranty in the industry. “We try to match the OEM warranty, which can be anywhere from three to five years. Most of our competitors only offer as little as 30 days, or at most a 52 INDUSTRY TODAY

year,” Stang says. This is the other half of the GINCOR Truck & Trailer Werx equation: “Just as we’re committed to our employees, we’re equally committed to our customers,” Stang says. “For example, many of our customers are in seasonal businesses, such as snow removal. They make their money only during four or five months— they can’t afford to have equipment downtime

GINCOR Truck & Trailer Werx | PROFILE

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just when they need their equipment to work. So, first off we strive to provide equipment that isn’t going to fail in the first place. Then, if it should, we have trained service staff either at one of our locations or through one of our dealers that are immediately dispatched to fix any problems and it get it operational with minimal turnover.”

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PROFILE | GINCOR Truck & Trailer Werx

Moving Ahead GINCOR itself has grown through acquisitions and partnerships. Stang foresees the truck up-fitting industry as a whole undergoing consolidation. “Back in the 1970s just about anybody could set up shop,” he points out. “Now these people are getting older and their kids aren’t particularly interested in carrying out the family business, so they are either selling to a larger company or just getting out altogether. It’s similar to what’s happening to auto garages—there used to be a mechanic on almost any

“GINCOR Truck & Trailer Werx comprises five business units that variously manufacture, install and service work truck modifications and custom trailers used in specialized and severe applications.”

54 INDUSTRY TODAY

GINCOR Truck & Trailer Werx | PROFILE

corner who’d do any kind of work on just about any kind of car. Now you’ve got a Jiffy Lube specializing in oil changes and some other big operation doing only mufflers, and you’ve got this specialized segmentation while the smaller operators start to disappear. Our industry is starting to go in the same direction.” For GINCOR Truck & Trailer Werx itself, Pictured left (top to bottom): Schmitz Cargobull Reefer Van Body, Unicell Aerocell Transit Van Body, Tri-axle carrier, Flat Deck Trailers.

business is plowing ahead. “Our customers service different industries, but most of these are tied in one way or another with infrastructure development. With the exception of oil and gas, what’s happening with infrastructure here in Canada is very similar to the situation in the U.S.—projects are getting funded and new construction is confidently going forward. We intend to continue to build the vehicles and equipment that meet our customer needs and provide them with the highest return on investment.” INDUSTRY TODAY 55

PROFILE | GRUPO ASTRA

56 INDUSTRY TODAY

GRUPO ASTRA | PROFILE

A SEAT AT THE

TABLE

PROFILE | GRUPO ASTRA

AT A GLANCE: • Company Name: Astra Group; • Foundation: 1957; • Headquarters: Jundíai, São Paulo; • Core Business: Producer of over 6,100 items for the construction segment with its most important lines being toilet seats, bathroom cabinets and mirrors, flush and hydraulic systems, and bathtubs; • Facilities: 97,200 square meters (1.05 million square feet) of constructed area divided among 6 plants, 5 in Jundíai, and 1 in Recife, Pernambuco; • Total Revenues (2017): R$505 million (roughly US$150 million); • Marketing Budget (2017): R$20 million (roughly US$6 million); • Number of Active Clients: 33,000; • Number of Employees: 1,820; • Exports: 10.2 % of business. small joinery specialized in the production of wardrobes, kitchen and bathroom cabinets, and toilet seats – all crafted from wood.

Revolutions in Plastic In the early ‘60s, the nascent business was still finding its footing when a major revolution occurred in Brazil – the arrival of plastic. Recognizing its importance, Astra immediately began incorporating this new material into its mix. At the time, the plastic hinges that accompanied its wooden toilet seats were considered a 58 INDUSTRY TODAY

GRUPO ASTRA | PROFILE

cutting-edge innovation. Following this initial success, the company resolved to stake out a place at the forefront of the plastics revolution, investing in and developing new processes and technologies that allowed it to consolidate its place as an innovative market leader in its niche. “We were the first to use plastic hinges on toilet seats,” recalls Manoel Flores, managing director of Astra. “And then in the late ‘60s, we were the first to make toilet seats using a blow molding process for which we created a patent Pictured previous spread: Astra offers a wide range of colors for their portfolio of bathroom accessories; left: Manoel Flores, managing director of Astra.

“Our ultimate goal is to complete all of our lines by offering every variation possible.”

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PROFILE | GRUPO ASTRA

Congratulations, Astra!

Dow wishes a future full of great achievements! At the 60th anniversary of Astra, Dow celebrates the resumption of the successful partnership that began in 2003. Providing exclusive solutions in polyurethane manufactured in Brazil with quickness and high quality, the company is proud to contribute with Astra in the development of tailor-made products for Brazilian homes. May this work together continue to generate innovative and practical solutions that make a difference in people’s daily lives.

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GRUPO ASTRA | PROFILE

that lasted for 15 years. At the time, nobody else was using this technology and it really leveraged our growth throughout the 1970s.” At the dawn of the 1980’s, Astra once again created an upheaval in the marketplace, being the first to launch a blow-molded toilet seat cushioned with molded polyurethane foam. To this day, it remains one of the firm’s best-selling products. “We’ve always been a company that invests a great deal in innovation, in terms of both processes and products,” confesses Flores. “This is true not just in terms of toilet seats, but with

respect to all of our lines, including flush systems, mirrors, cabinets and hydraulics.”

Leadership Strategies Over the years, Astra’s expansion into new segments led to the creation of the Astra Group, consisting of three brands that cater to the construction industry: Japi, Integral and Astra. Product lines range from bathtubs and whirlpools to state-of-the-art garden planters made from lightweight Polyresin. Despite this broad mix, it’s with three key lines – toilet seats, bathroom mirrors and cabinets, and flush systems

Pictured left: Astra’s parent company has been at the same address since it was established in 1957. Today the building houses the Corporate headquarters as well as one of the injection and finishing processing areas; below: The largest complex of Astra’s plants which includes a showroom, assembly, production and warehousing.

INDUSTRY TODAY 61

PROFILE | GRUPO ASTRA

A UNIQUE CORPORATE CULTURE Unlike most other Brazilian industry players, Astra doesn’t believe in hiring experienced specialists from the marketplace. Instead, the group has long adhered to a unique policy in which it hires promising young graduates with no professional experience and trains them on the job. Amid a nourishing climate, employees are motivated to eventually become company leaders who preside over a cohesive corporate culture.

62 INDUSTRY TODAY

GRUPO ASTRA | PROFILE

– that the company continues to dominate the Brazilian market. In order to maintain its leadership position, Astra is always looking for new ways to expand a product mix that currently numbers 6,100 items, far more than any of its competitors. Each year, it adds an average of 200 products to its catalog. With the new models, Astra constantly strives to outdo itself. One of its most successful updates is a flush system whose more efficient mechanisms yield considerable savings in terms of water usage. Suitable for all porcelain toilets, it’s been a big seller throughout South America. Another key element of its strategy is to offer

customers the most complete line of products possible. This translates into the use of different materials, such as sink basin valves made out of blown PVC, acrylic resin (ABF) and both rigid and pleated polypropylene. It also extends to expanding a product’s uses, such as sinks of varying sizes sold with and without a diverse array of cabinets and vanities. While function is an important consideration so is form. “None of our competitors in Brazil Pictured left: Astra’s new logistics warehouse designed to streamline distribution; below: Flush Systems component assembly area.

INDUSTRY TODAY 63

PROFILE | GRUPO ASTRA

offers as many different types of finishes and colors for its items as we do,” points out Flores. “In terms of our bathtubs and toilet seats, we have colors that match those of all the porcelain manufacturers. We also make an effort to keep up with industry color trends. With respect to toilet seats alone, we have over 40 chromatic variations.” Astra also takes pains to offer a mix that caters to every socioeconomic segment of Brazilian consumer, with price points to match. “For example, within our catalog we have simple, inexpensive tubs for a small apartment as well as luxurious hot tubs suitable for a back garden or penthouse,” says Flores. “Our ultimate goal is to complete all of our lines by offering every 64 INDUSTRY TODAY

Pictured: Branding with the distinct Astra logo is essential for display packaging at the point of sale; The dual mechanism MDU2/R is the latest line of Astra’s flushing systems.

GRUPO ASTRA | PROFILE

variation possible of a given item.”

Looking Forward to a Digital Future With the constant launch of so many new products, marketing is key. In 2017, Astra invested some R$20 million (roughly US$6 million) in sales and promotions, including events at trade fairs and point-of-sales. Such investments have contributed to a list of active clients (who made purchases within the last year) that hovers around 33,000. The group hopes to increase its roster even further by preparing to go digital. Unlike the United States where online commerce represents around a quarter of all purchases, in Brazil it’s still in its nascent stages. “Currently, digital

IN CONTROL According to managing director, Manoel Flores, one of Astra’s biggest competitive advantages stems from its top-notch management control systems. “Because they’re so detailed and efficient in terms of reducing costs, we’re able to compete with large companies and attract major clients.” commerce accounts for only around 5 percent of purchases, but 5 years from now it could be at around 20 percent,” predicts Flores. “We’re already preparing for this new reality, investing in new software and organizing ourselves to conform to this expanding market.” Among the advantages Astra envisions are less costly, more efficient logistics and simplified packaging. Says Flores: “Today, packaging helps to sell the product in store, but a well-designed web site will both market the product and provide crucial information about it. In the future, packaging will just provide basic protection.” Flores also predicts that moving more business online will allow consumers to customize even further, personalizing processes, materials and colors. It could also help the group grow its global sales, which in 2017 accounted for just over 10 percent of business. Although Astra exports to over 30 countries throughout the Americas INDUSTRY TODAY 65

GRUPO ASTRA | PROFILE

and Africa, overseas sales have been tricky due to the combination of low-cost products and high-cost freight. “It tends to fluctuate,” says Flores. “Sometimes the external market grows more, other times it’s the domestic market.” Having just celebrated its 60-year anniversary in 2017, Astra is undaunted by such changes, particularly the dramatic economic ebbs and

flows that are a Brazilian trademark. “One thing we’ve shown in 60 years of being in business is that we’re never shaken by crises,” declares Flores. “We’re always careful with our costs and focus on security and consistency. Whether the market soars or crashes, our financial health is always robust.” Echoing its trademark product – the toilet seat – Astra is all about stability. INDUSTRY TODAY 67

PROFILE | SOCOCO

68 INDUSTRY TODAY

SOCOCO | PROFILE

ON THE CUTTING EDGE OF

COCONUTS T

with the 20 years it often took in India, the original source of this giant nut.

Pioneering Coconut Producers As Brazil developed over the centuries so did the culture and cultivation of coconut palms, whose flesh and milk became staple ingredients INDUSTRY TODAY 69

PROFILE | SOCOCO

AT A GLANCE: • Company Name: Sococo; • Foundation: 1966; • Headquarters: São Paulo; • Core Business: Producer of grated coconut, coconut milk and coconut water and other coconut-derived products for consumer and industrial use; • Cultivation areas: 11,000 hectares (Mojú, Pará); 2,500 hectares (Santa Isabel, Pará); • Total Harvest: 1 million coconuts a day; • Production areas: • an 8,400-square-meter industrial processing complex in Ananundeua, Pará, processing 400,000 coconuts a day • a 16,000-square-meter plant that transforms 280,000 coconuts a day into consumer and industrial products • Total Annual Revenues: R$1 billion (roughly US$3.5 million); • Total Number of Direct Employees: 4,300. in dishes both sweet and savory. However, for much of Brazil’s history, the only way to consume coconut was to buy the dried fruit, smash it open, scrape the flesh from the shell, and grate or pulverize it – a laborious, time-consuming and messy process. It wasn’t until some 400 years after that first coconut palm bore fruit that a new generation of Portuguese entrepreneurs returned to Northeastern Brazil, with an equally radical idea: to produce, process and distribute coconut throughout Brazil, 70 INDUSTRY TODAY

using innovative new methods and technology. It was with this goal in mind that Sococo was founded in Maceió, capital of the state of Alagoas, in 1966. Within three years, the company had introduced two pioneering products to the Brazilian market: packaged grated coconut and bottled coconut milk. In doing so, it created a small culinary revolution. By the end of the 1970’s, the Sococo brand name had become synonymous with products whose quality, flavor and texture were prized

SOCOCO | PROFILE

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INDUSTRY TODAY 71

PROFILE | SOCOCO

“You’re not dealing with a potato that takes 3 months to mature, but a nut that takes 6 or 7 years to grow into a harvestable product.”

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72 INDUSTRY TODAY

by simple home cooks as well as sophisticated restaurant chefs. Within 15 years of its establishment, the company had achieved a dominant market presence with over 50 percent market share in terms of grated coconut and coconut milk. It was around this time that Sococo pulled off another pioneering coup by investing in a coconut farm in the depths of the Amazon rainforest. Prior to this, since colonial days, coconuts had only been cultivated along the coastal regions of Northeast Brazil. However, in 1979, having undertaken scientific research in partnership with the prestigious French Institut de Recherches pour les Huiles e Pictured: Sococo revolutionized the marketplace when they introduced bottled coconut milk and packaged grated coconut.

SOCOCO | PROFILE

Oléagineaux (IRHO), Sococo had discovered that the Amazon’s soil and climatic conditions made it the most favorable spot on the planet to cultivate hybrid coconuts. The resulting farm in Mojú, 110 km from Pará’s capital of Belém, became the largest, most productive and most sustainable coconut

plantation in Brazil, with 8,500-hectares of coconuts set amid 12,000 hectares of preserved Amazonian rainforest. It also set Sococo apart from all its competitors by transforming it into Brazil’s only producer of coconut products that controls the entire process from beginning to end.

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PROFILE | SOCOCO

“We can’t import technology from Asia or copy competitors because they’re far behind us.”

Pictured: As well as the coconut Sococo uses soy and fruit in its products. 74 INDUSTRY TODAY

Paulo Roberto, current managing director of Sococo has been at the company for over 30 years. “That we’re the only players in the marketplace that have our own plantations and production facilities make an enormous difference,” he declares. “Today, Sococo has a total of more than 1.6 million coconut palms, which makes us extremely self-sufficient. It also gives us a great advantage in terms of the uniformity and quality of our products. This is a major reason why the company is market leader – in spite of the fact that our products are more expensive than those of our competitors.” Up until the present, Sococo’s leadership status in Brazil had been the result of its two

SOCOCO | PROFILE

traditional main products: coconut milk and grated coconut. However, as Roberto points out, the market for these products is mature. “Today Sococo items can be found in 93 percent of commercial establishments that sell coconut-derived products,” explains Roberto. “At the same time, there’s limited demand for these products in countries where coconut isn’t part of the traditional diet and is viewed as an exotic item.” “For these reasons, beginning next year, the most important product in our catalogue will be coconut water.”

Up-and-Coming Coconut Water Sococo has been selling coconut water since the 1990s. Like many of its competitors, it produces reconstituted blends of coconut water that many consumers have become accustomed to. Even so, its water is of better quality than most of its Brazilian competitors who rely on cheaper (often inferior) coconuts from Asia, which they then reconstitute in Brazil. Meanwhile, Sococo is also the only company that sells a line of pure, quality coconut water that an increasing number of customers are demanding, both at home and overseas.

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PROFILE | SOCOCO

“We’re the only players in the marketplace that have our own plantations on an industrial scale.”

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Driven by its much-touted health and isotonic benefits, coconut water has massive domestic and global market potential. According to Roberto, Sococo is ideally poised to take advantage of an imminent coconut water boom that he predicts will expand by more than 10 percent a year. Indeed, Roberto attributes Sococo’s 14 percent growth in revenues over the last three years to the success of its popular lines of coconut water, which include a diet version as well as beverages that combine coconut water with fruit juice.

SOCOCO | PROFILE

“A major differentiating factor in our favor is that we’re the only ones in the world who grow our own coconuts for our coconut water,” declares Roberto. “Coconut water production is an industry, but as cultivators with our own plantations we possess an agricultural vocation that other players just don’t have, even though they know how to sell and distribute, but not how to grow the best coconuts. It outsources its coconuts, while we accompany the process from planting to harvest. This is particularly important because you’re not dealing with a potato that takes 3 months to mature, but a nut that takes 6 or 7 years to grow into a

harvestable product.” As it looks toward the future, Sococo’s main focus is on how to further ramp up its coconut harvest in order to satisfy not just Brazil’s, but the world’s thirst for coconut water. Currently, between its farm in Mojú and a second 2,500-hectare plantation in Santa Isabel, Pará, the company harvests 1 million coconuts a day, which yield annual revenues of around R$1 billion (roughly US$3.5 million). But within the next 7 or 8 years – the time it takes to produce coconuts on an economic scale – it plans to acquire new areas and plant an additional 200 hectares in the Amazon.

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PROFILE | SOCOCO

Pictured: Coconut is very versatile and can be found in a range of Sococo products - appetizers, desserts and drinks. 78 INDUSTRY TODAY

SOCOCO | PROFILE

EXPATS DRIVE EXPORTS Currently exports make up 5 percent of Sococo’s business. Managing director Paulo Roberto comments on obstacles and opportunities: “Coconut milk and grated coconut sell well in Asian, African and Latin American countries where they are traditionally consumed, but the dominance of cheap Asian products mean we can’t compete with them. In the end, our export business is pulverized. A significant amount of overseas sales are made to Brazilian expat communities in the United States, Portugal and Japan who are loyal to our brand.”

A Fertile Future “Although we have the technology and structure to do this now, we’re a very orthodox company and have always done things step-bystep in order to maintain stability. Amid Brazil’s economic chaos, one has to keep one’s feet on the ground at all times. As such, we never borrow capital and invest only our own resources. We’ll only make a big leap onto the world stage when we have enough coconuts to do so.” When Sococo is ready to make the leap, Roberto estimates that sales of coconut water to thirsty clients in Europe, North America and

the Middle East will cause exports to jump from 5 percent to 20 percent of its business. “Right now, the average person consumes 70 liters of soft drinks a day, but only 650 ml of coconut water a year. Such a gap underscores how much room there is to grow.” As a conservative company that’s been at the cutting-edge of coconut production for over 50 years, Sococo is certainly poised to not only benefit from, but spearhead such growth. As Paulo Roberto sees it, this is both a challenge and an opportunity. “Just as Brazil is at the forefront of global coconut production, Sococo is the most advanced player within Brazil when it comes to production and technology. We can’t import technology from Asia or copy competitors because they’re far behind us. That we’re so ahead means we have to create everything, all the processes and technology, ourselves.” He laughs. “And that’s our biggest problem.” INDUSTRY TODAY 79

PROFILE | MORGAN TRUCK BODY

BIGGER IS

BETTER

80 INDUSTRY TODAY

MORGAN TRUCK BODY | PROFILE

hen you’re bigger than the rest, started out as a small truck repair shop 66 years you can do more things better. ago has grown into the largest North American Which in turn allows you to get manufacturer of Class 3 to Class 7 truck and van bodies. Morgan produces truck bodies to even bigger. Case in point: Morgan Truck Body. What accommodate everything from parcel delivery INDUSTRY TODAY 81

PROFILE | MORGAN TRUCK BODY

to furniture movers and heavy-equipment hauling, insulated and refrigerated units, bottled gas transport, and flatbed/stake and platform bodies. In recent years, Morgan has also launched various truck bodies geared towards the landscape and contractor industries. With 12 facilities (11 of which are manufacturing plants) strategically located throughout the United States and Canada, Morgan recently announced a new plant opening in Plainfield, CT., scheduled to be operational later this year, and is already eyeing additional expansion to meet increasing demand. “We have the most manufacturing plants of anyone in our industry,” explains Paul Jarossy, director of marketing and business development. “Our nearest competitor has only five, and many other have only one?” 82 INDUSTRY TODAY

With strategic manufacturing locations in Arizona, Pennsylvania, Wisconsin, Oregon, California, Texas, Florida and Georgia, as well Ontario, Canada, Jarossy points out that, “Being close to the customer significantly reduces delivery charges. If our competition’s nearest plant is across the country, they have to tack on greater shipping costs. Having multiple manufacturing locations makes it convenient for Morgan customers to visit and tour the plants where their truck bodies are being built.” An additional five Morgan-owned Parts and Service locations, plus over 200 Authorized Morgan Repair Partners throughout the US and Canada, ensure that any service issue is addressed conveniently and quickly. The picture gets even bigger when you add the fact that Morgan is part of the J.P. Poindexter

MORGAN TRUCK BODY | PROFILE

& Company ( JBPCO) group of related transportation businesses. These include bread and package delivery truck maker Morgan Olson, Reading Truck Body, the Truck Accessories Group and Masterack commercial-grade interiors and cargo systems. “As part of a suite of companies that provide a range of service to the transportation industry, we offer greater quality control and economies of scale. For example, it allows us to outfit a Morgan truck body with Masterack interiors and storage systems.” Morgan Truck Body can package a solution by partnering with a sister company that shares the same commitment to manufacturing excellence. Pictured: Morgan produces a range of truck bodies including a line for landscape and contractor industries.

Meeting Big Demand With the forthcoming 175,000 square feet Connecticut plant, Morgan grows even bigger. “It provides additional capacity to serve our New England customers,” Jarossy notes. The new plant is an hour east of Hartford and is expected to support production of a combination of 3,000 dry freight and reefer truck bodies annually. Expected to open by Q4 2018, the facility will employ approximately 140 team members. “We’re also planning further expansion in the Midwest,” Jarossy adds. Several locations between Chicago and Pittsburgh are under consideration. We’re always looking for opportunities to get closer to our customers.” Increased demand is a combination of an

INDUSTRY TODAY 83

PROFILE | MORGAN TRUCK BODY

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84 INDUSTRY TODAY

improving economy, cyclical replacement, and Morgan’s commitment to innovation and building the best trucks bodies in the industry. “I joined Morgan in 2012 and that was a record year, largely because of the release of pent-up demand from customers that were holding off on making purchases during the recession, but also due in part to Morgan’s ability to meet that demand,” Jarossy says. With customer confidence lifted by the economy and the new tax law, we expect 2018 to be a successful year as well.”

Sales Mix and Match Morgan sales channels are a mix of direct and distributor sales. Customers are also a hybrid of large corporate procurements and individual

MORGAN TRUCK BODY | PROFILE

“As part of a suite of companies that provide a range of service to the trucking industry, Morgan offers greater quality control and economies of scale..”

purchases. “We do sell to large fleet owners, Jarossy explains. “but we also have a retail sales group that deals with medium-size as well as one-off truck orders. These orders could be for a major national leasing company or they could also be for a small company like a Joe’s Florist that needs a new delivery vehicle.” In the Northeast, sales are primarily through a network of experienced distributors. “That was the model the company started many years ago and we want to maintain those strong relationships we’ve developed over the years with Pictured: Morgan has strategic manufacturing locations throughout the country, cutting down on shipping costs, a saving that is passed on to the customer. INDUSTRY TODAY 85

PROFILE | MORGAN TRUCK BODY

our distributors,” Jarossy says. “In the Midwest, it’s also primarily distributors, though we do have some direct sales. But in the South and West, it’s almost all direct sales.” Needless to say, managing the diversity of customers and sales channels presents a bit of a challenge, but one Morgan has successfully met. Morgan employs over 2,000 salaried and production team members. Building truck bodies requires skilled labor, and Morgan, like Pictured: Morgan produces truck bodies to accommodate everything from parcel delivery to furniture movers to insulated and refrigerated units. 86 INDUSTRY TODAY

“Morgan announced a new plant opening in Plainfield, Conn. and is already eyeing additional expansion to meet increasing demand.”

MORGAN TRUCK BODY | PROFILE

most manufacturers, is working to address filling those jobs during the current labor shortage. “Whenever the unemployment rate drops below five percent, as it is now, the manufacturing industry finds itself working hard to fill jobs, especially the highly skilled ones like welding,” Jarossy says. “One way to address that is to work with local schools and offer apprenticeships and internships. Our internship program has been particularly successful; in fact, we just hired one of our marketing interns for a sales position. It gives students the opportunity to see if they like this kind of work and, if we eventually hire them, they come into the job with some experience and training.” To staff the new Connecticut plant, Morgan is currently training people for supervisor roles, some of whom have transferred from other

Morgan locations. A number of local job fairs are underway to recruit additional new hires. “We look for good people and then we aim to retain them with good working conditions, good pay and satisfying careers,” Jarossy says.

Go the Final Mile While Morgan is primarily known for medium-duty truck bodies, during the last five years it has also developed lighter duty Class 3 and 4 truck bodies. “We now offer products that satisfy a wider range of market needs” Another growing opportunity is for multi-temperature grocery delivery vehicles. “There’s a lot of talk in the industry about “Final Mile” to the point where it’s almost a cliché, but a cliché that is very real,” Jarossy says. “Whether you are a brick and mortar store or

INDUSTRY TODAY 87

PROFILE | MORGAN TRUCK BODY

RIGHT OFF THE PENNSYLVANIA EXIT Company founder Elton E. Mountz purchased a small welding shop in Morgantown, PA. on a site that once manufactured Conestoga wagons. Originally specializing in residential and farm equipment repairs, the opening of the Pennsylvania Turnpike in 1958 provided an opportunity to expand the business to truck and trailer repairs and refurbishment. Two years later, it expanded again to provide the assembly, mounting and finishing of prefabricated van body kits. Mountz retired in 1990, at which time his company was acquired by J.B. Poindexter & Co. Pictured: Building truck bodies requires skilled labor which Morgan fills by working with local schools, apprenticeships and a successful internship program. 88 INDUSTRY TODAY

MORGAN TRUCK BODY | PROFILE

an e-commerce business, the question everyone is grappling with is how do you efficiently deliver goods to the customer’s front door? This is particularly pertinent to the grocery industry.” Which is why Morgan has introduced its NexGen delivery vehicle that is lighter and smaller— currently 12 to 16 feet. The NexGen is available in dry freight, fully refrigerated, mid-temp, and multi-temp configurations. Key features include non-corrosive materials, up to 20% lighter in overall weight, and smooth walls for better graphics. “With the home grocery unit, you can have separate zones for frozen, fresh, and ambient temperature goods,” Jarossy says. “So now you have a way to deliver a mix of orders that maintains freshness and quality in a vehicle that is

economical to run.” He adds, “The industry is still struggling with figuring out the logistics of Final Mile delivery, but the potential for us in this market is huge. We believe our grocery delivery truck body represents a big part in figuring out this puzzle.” Morgan is getting bigger all the time. “We’re in growth mode. We’re adding plants and we’re not stopping.” Big really is beautiful.

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PROFILE | TWIN DISC

CLUTCH

PERFORMER

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TWIN DISC | PROFILE

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PROFILE | TWIN DISC

manufacturing processes are all much more complex. What hasn’t changed, however, is the quality of its power transmission products and continued engineering innovation. That Twin Disc remains a key manufacturer of heavy duty power transmission products used around the world in a range of land- and Pictured previous spread: Fracking equipment; above: 8600 transmission ready for shipment; right: 21st Street Engineering, Manufacturing and Testing facility; Twin Disc Headquarters, Racine Street, Racine, WI. 92 INDUSTRY TODAY

marine-based applications attests to the company’s powerful durability, vision and commitment, carried out by successive generations of leadership. “Our focus is to improve the entire powertrain by integrating our clutch system designs in ways that are totally seamless to the end user,” says John Batten, president and CEO—and great grandson of one the company founders. While performing “behind the scenes,” so to speak, Twin Disc products are integral to the efficient operation of machines vital to our daily lives. These include farm tractors, construction

TWIN DISC | PROFILE

equipment, firefighting and rescue vehicles, pleasure craft, fishing and work boats, a variety of industrial pumps and turbines, to mention just a few. As the Twin Disc branding tagline puts it, “We put Horsepower to Work®.” While Batten and his family retain a large interest of Twin Disc, the company is publicly traded. With headquarters and the largest

manufacturing facility still maintained where Twin Disc first started operations back in 1918 in Racine, Wis., it also operates a multinational network of sales and manufacturing operations that extends to Oregon, Washington and Florida in North America, as well as Canada, Belgium, Australia, Singapore, South Africa, Spain, Japan, Italy and India.

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PROFILE | TWIN DISC

In terms of evolving technology, Batten points out that, “During the last 30 years, there’s been a growing trend to replace mechanical controls with electronic controls, particularly in the auto industry and becoming more so with the more widespread adoption of electric and hybrid drivetrains.”

Powerful Designing Perhaps even more challenging for Twin Disc, however, is a growing diversified customer base that’s expanded well beyond its first product innovation—clutches for farm tractors. “We work with OEMs that in many situations are Pictured: John Batten, president and CEO.

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TWIN DISC | PROFILE

“Twin Disc engineers solutions that drive the horsepower for a range of land- and marine-based vehicles and industrial products.”

selling their powertrain system to incorporate in another manufacturer’s vehicle or application. So the first engineering issue we have to deal with is not just what the customer wants, but how that customer needs to fit the needs of their customers. It gets further complicated when there is no standardization even within a given segment. One OEM’s powertrain design is different from another’s, even though they are all ultimately used in a similar kind of vehicle,” Batten says. “The problem for us is that we’re typically not producing high-volumes. Which means we can’t cost-effectively have one design for one customer, but then a bunch of others for INDUSTRY TODAY 95

PROFILE | TWIN DISC

what’s basically the same application. So one of our fundamental challenges in the engineering phase is to provide a design that accommodates most of our customers, and then persuade them all this design is their best fit.” While Twin Disc is producing high volumes, it might outsource manufacture; Batten emphasizes that final assembly is always performed in-house. That process, too, is changing. “You could say we were operating as a sort of large job shop,” Batten says. “But our manufacturing processes are changing, in large part due to new machine capabilities. We adopted cellular manufacturing about 25 years ago, but we’re finding that we can improve our overall flow by deleting some cells and employ96 INDUSTRY TODAY

TWIN DISC | PROFILE

Disc shares with many manufacturers today. “During the recession we had a force reduction which included the retirement of many of our older skilled machinists. We currently employ about 700, down from the 1,000 employees we had in 2012. The new machines help us do more with less labor, but we still need skilled operators to run them. To help find those people we are partnering with local trade schools Manufacturing Change New machine capabilities are also helping and offering apprenticeship programs.” Batten points out that, “Everyone is facing to address another pressing problem Twin ing tools with greater capabilities.” He adds, “It’s not just us, but all manufacturers are getting the benefits of the new 5 axis machines. You can do much more with these machines than you can with fixed cells. One person operating a 5 axis machine can do the work of four or five people, and faster.”

Pictured left below: Twin Disc founder P.H. Batten (1918); top (left to right): Twin Disc Inc. Established September 1918, Wallis Tractor - The first client to use the Twin Disc Power Take Off, Twin Disc manufacturing (circa 1950s), Hercules Road Roller using Twin Disc Power Take-Off (circa 1930’s), Road construction gravel conveyor using twin Disc PTO (circa 1930), WWII Allied landing craft (LCVP - “Higgins Boat”), Early application of Twin Disc hydraulic marine gear (circa 1952). INDUSTRY TODAY 97

PROFILE | TWIN DISC

the same problem. We have to do a better job in portraying manufacturing as a good paying career choice. All too often the perception is that manufacturing is dirty and boring minimum-wage kind of work. For people with the Pictured above left: Wood chipper/shredder; above right: Farming equipment.

“Twin Disc makes high quality, highly engineered powered transmission solutions, backed by a support network second to none.”

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right skills, it’s actually quite the opposite.” Coupled with direct to OEM sales, Twin Disc maintains a global presence through an international distributor network, although the percentage of North American business versus

TWIN DISC | PROFILE

ACCIDENTAL ENTREPRENEURSHIP John Batten’s great grandfather, P.H. Batten, didn’t set out to start a company, let alone one that would be a leading innovator in a powertrain technology a hundred years later. He was employed as a superintendent for Wallis Tractor, which introduced the then revolutionary unit frame design that housed the crankcase and transmission in a single U-shaped plate. Problem was that as more powerful engines were developed, the existing shoe clutch design couldn’t keep up, slipped and caused wheelies—fun perhaps for a teenager, but not a farmer. Inventor Tom Fawick had developed a twin disc clutch design which engineer Arthur Modine developed for Batten to solve this problem. The technology was so successful that mass production was required. But here was another problem: Wallis Tractor wanted the twin disc clutch, but didn’t want to get into the business of manufacturing it. So, in September 1918, Batten, Modine and Fawick established Twin Disc, with Wallis Tractor as its largest customer. By the early 1920s, Twin Disc was the sole clutch manufacturer for agricultural tractors. From there it expanded to pursue additional applications in the construction, marine, oil and gas and other industrial segments.

the rest of the world varies by customer segment. Being a key supplier to major OEMs Caterpillar and Cummins further increases its global footprint. The diversity of the markets it serves helps keep Twin Disc on an even keel; growth opportunities in oil and gas are currently helping to put business in higher gear. “It’s a complex business that keeps us on our toes,” Batten says. “The Twin Disc value proposition is three fold. First, we offer the highest

quality product. Second, we have the engineering expertise to design a solution for any powertrain application. Third, and not least, we have an international support network that is second to none.” Twin Disc may have had to downshift at certain times during its history, but today is running in overdrive, enabling an array of machines in a variety of daily use to work as efficiently as possible. INDUSTRY TODAY 99

ADVERTISER’S INDEX

VOLUME 21 • ISSUE 3

A Aluminum Line Products ............................................84 ASQ............................................................................. IFC

N Nordstrong Equipment Limited.................................. 50

C Cebrace.......................................................................66

O OHAUS Corporation................................................OBC

D Denver Especialidades Quimicas ............................ 72 Dow Brasil S.A..............................................................60

R Replas...........................................................................60

E Embalagens Flexiveis Diadema ............................... 71

S Sealed Air Product Care............................................ 59 Swenson Spreader......................................................51

G Gem Manufacturing...................................................94

U Uni-Bond Lighting........................................................47

VIDEO

H Haldex..........................................................................46

V Viking-Cives.................................................................53

L Les Entreprises NAMA..................................................48 Logicorp Transportation, LLC................................... IBC

W Wheel Monitor.............................................................53

M Mailhot Industries.........................................................48

Z Z & Z Machine Products, Inc...................................... 93

IBC – Inside Back Cover IFC – Inside Front Cover OBC – Outside Back Cover

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