Industry Today, Volume 26, Issue 1, The State of 21st Century Manufacturing

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Publisher’s Letter

We’re halfway through 2023 and times are, well, interesting. There’s good news and bad news.

Even as U.S. domestic manufacturing is undergoing a resurgence, global conditions threaten supply chains with disruption. Whatever you may feel about the causes of (and solutions to) climate change, the fact is that severe weather conditions, both extremes of hot and cold, cause economic fallout.

First, let’s take a look at the bad news. One of this issue’s feature stories examines the impacts of weather. Last year, there were 18 significant weather events, accounting for losses that exceed a billion dollars. As Jon Davis of Everstream Analytics points out in How Weather Disasters Impact the Supply Chain, “The supply chain is especially vulnerable to the increased rate of weather disasters, which can cause disruptions in shipping and transportation, interruptions in business and production, and damage to infrastructure. Businesses incur capacity constraints, inventory shortages and price fluctuations, along with other consequences.”

Davis says that while you can’t really control the weather, you can proactively respond to near-term risks to minimize potential damage. A similar point is made by Bart De Muynck, Chief Industry Officer at project44, in Navigating the Dry Waters of the Panama Canal. “The Panama Canal’s historic low water level projected for July coincides with peak season shipping, when manufacturers experience high demand for their products... The Panama Canal drought presents significant challenges for supply chains and peak season shipping, including disrupted shipping routes, inventory management issues, rising costs and the need for diversification. It is expected that the situation will only be exacerbated by El Niño heading into 2024 – so it is imperative manufacturers figure out their risk management strategies as soon as possible.”

Now for some good news. Buffalo, New York, once known as a rustbelt city behind the times, has transformed into an advanced manufacturing hub. “To date, Buffalo is home to a $13.2B manufacturing sector, which is the third-largest employer in the Buffalo Niagara economy, comprising 69,167 individuals. And contrary to national trends, the city’s manufacturing workforce is projected to grow by 1.2% in the next five years,” writes Thomas A. Kucharski, President and CEO of Invest Buffalo Niagara, in 21st Century Manufacturing Thriving in Buffalo, NY. The city’s success is a combination of a signature workforce development program, a 0% corporate income tax, low cost hydropower and proximity to Canada. In addition, the Western New York Industrial Real Estate Development Strategy, an initiative intended to help reshape the future economic development prospects of the region, resulted in construction started on three new industrial developments.

Going further south, Georgia is making its name as an agricultural hub, thanks to its 10 million acres of operating farmland, lengthy growing season and favorable climate. Chris Chammoun, Director of Agricultural Technology at the Center of Innovation for the Georgia Department of Economic Development, writes that, “Almost half of the country’s top 100 food processing companies are located in the state, including Pilgrim’s Pride Corporation, Chick-fil-A, The Coca-Cola Company, and Tyson Foods, which source many of their offerings directly from Georgia farms. During the last fiscal year, food processing companies ranked among the greatest number of new industrial projects and expansions.” Chammoun attributes this to Georgia’s logistics infrastructure and geographical location, as well as 22 technical colleges that contribute to agriculture innovation. For more details,

see “Georgia Provides Ideal Recipe for Food Processing.”

We hope you enjoy this issue of Industry Today and that it supplies you with something to think about, good or bad. You’ll find the same extensive timely coverage on a weekly basis at industrytoday.com.

Publisher: Susan G. Poeton

Project Director: Brian McMillan

Project Managers: Jonathan Listig

Production: Melissa S. Burge

Art Director: Seema Mazhar

Contributing Designers: Jorge Leandro Rodrigues

Profile Editor: David Soyka

21ST CENTURY MANUFACTURING THRIVING IN BUFFALO,

Buffalo, New York, once known as a rustbelt city, has transformed into a thriving hub of advanced manufacturing. The combination of legacy manufacturers and innovative companies focused on technology and sustainability has fueled this resurgence.

To date, Buffalo is home to a $13.2B manufacturing sector, which is the third-largest employer in the Buffalo Niagara economy, comprising 69,167 individuals. And contrary to national trends, the city’s manufacturing workforce is projected to grow by 1.2% in

MANUFACTURING BUFFALO,

NY

From rustbelt to an advanced manufacturing hub, Buffalo has seen its manufacturing sector grow to $13.2B

the next five years. It’s resulted from the city’s efforts to provide a talented workforce pipeline, accessibility and affordability to manufacturing companies.

Buffalo’s signature workforce development program, Northland Workforce Training

Center (NWTC), offers training, co-op, internship and permanent employment opportunities for those seeking high-paying advanced manufacturing and energy careers in Western New York. NWTC has achieved impressive results, boasting a graduation rate of 63.9%

Pictured on the Cover: Manufacturers in Buffalo specialize in a variety of sectors: plastics, electronic components, medical devices, sensor technology and more;

above: Buffalo’s Niagara Falls is located approximately 16 miles northwest of downtown Buffalo on the United States/Canadian border.

and an 87.6% employment placement rate for its graduates. Notably, the facility actively enrolls a significant minority population, making these opportunities accessible to historically underinvested communities. Additionally, NWTC’s Summer Youth Academy provides a paid internship program to introduce young

individuals, aged 16-21, to careers in advanced manufacturing and energy.

Incentives for Manufacturing Companies

Manufacturing companies in Buffalo benefit from several incentives, including 0% state

corporate income tax and low-cost hydropower from the Niagara River. The power of Niagara Falls is harnessed by 25 turbines to create 2.5 GW of clean, renewable power; a total of 19% of the State’s grid is powered by hydroelectric energy. As a result, industrial electric rates are roughly 15% below the national average – one

of the lowest in the country. According to EPA eGRID data, UpState New York has the cleanest power profile in the country – a significant draw for sustainability-focused private companies.

Strategic Location and Accessibility

Buffalo’s strategic location along the CanadianAmerican border offers streamlined supply chain and logistics for our manufacturing companies. This provides access to 40% of the binational population within a 10-hour drive and features seven international points of entry over road, rail and water. These include 3,600 miles of major interstates, state routes, and local arterials; more than 1,000 miles of track

ABOUT THE AUTHOR:

serving four interstate railroads; one regional railroad, and three short-line railroads; and a major deep-water port with 28 terminals and bulk cargo storage.

Success Stories

Recent companies to take advantage of what Buffalo has to offer include Plug Power. In 2021, the company invested $233 million in a state-of-the-art green hydrogen production facility, which will serve as a jumping-off point to produce carbon-free fuel cell power. The new facility will be located in the Wester New York Science, Technology and Advanced Manufacturing Park (STAMP), a 1,250-acre mega site strategically located in NYPA’s lowcost hydropower zone and will be serviced by

Thomas A. Kucharski has served as President and CEO of Invest Buffalo Niagara since 2000. Under his leadership, Invest Buffalo Niagara has grown from a start-up initiative to an innovative regional economic development organization that has secured more than 400 successful project wins representing $4.4 billion in investment in the region and over 42,000 jobs created and/or retained. From the onset, Tom helped Invest Buffalo Niagara form strong, enduring partnerships with business, development and academic leaders throughout the Buffalo Niagara region. Today more than 150 organizations work with Invest Buffalo Niagara to provide support and expertise to companies from the U.S., Canada and other parts of the world looking to set up shop in Western New York. Tom has been a Certified Economic Developer since 1992 and has been recognized nationally for his work in the economic development industry.

high-capacity, 100% renewable power sources. The plant produces 45 metric tons of green liquid hydrogen daily servicing the Northeast region. Other recent success stories include Edwards’ new semiconductor supply chain facility and Electrovaya’s first U.S. gigafactory for the production of lithium-ion battery technology.

Future Development

In March 2021, Buffalo unveiled the Western New York Industrial Real Estate Development Strategy, an initiative intended to help reshape

the future economic development prospects of the region. This effort is comprised of a comprehensive evaluation of existing industrial site activity, inventory, and development opportunities within the region. Since the start of the program, three new industrial speculative developments have begun construction, specifically at Renaissance Commerce Park, the former home of Bethlehem Steel.

Because of our competitive edge, coupled with centuries of manufacturing background, year after year we’re making strides – further solidifying Buffalo as a hub for advanced manufacturing.

Pictured: Plug Power groundbreaking in 2021.

GEORGIA PROVIDES IDEAL RECIPE FOR PROCESSING

PROVIDES FOR FOOD

With nearly 10 million acres of operating farmland, a lengthy growing season, and a favorable climate, Georgia has become known as an agriculture hub. With over $74 billion in economic impact each year, agriculture is also Georgia’s largest industry. In addition, almost half of the country’s top 100 food processing companies are located in the state, including Pilgrim’s Pride Corporation, Chick-fil-A, The Coca-Cola Company, and Tyson Foods, which source many of their offerings directly from Georgia farms.

During the last fiscal year, food processing companies ranked among the greatest number of new industrial projects and expansions. Complementing this growth, Georgia offers 189 million square feet of cold storage space, which is one of many focused initiatives put in place to sustain a booming agricultural ecosystem. These also include workforce resources, educational offerings, and infrastructure enhancements.

For 20 years, food processing, agriculture, and other businesses large and small have benefited from the Georgia Center of Innovation –

Agriculture is Georgia’s largest industry, contributing $74 billion annually.

ABOUT THE AUTHOR

Chris Chammoun is the Director of Agricultural Technology (AgTech) at the Center of Innovation, a strategic arm of the Georgia Department of Economic Development (GDEcD). In this role Chammoun supports Georgia-based AgTech companies, assists in recruiting AgTech companies to Georgia, and helps foster the innovation ecosystem throughout the Georgia agricultural industry. Chammoun has served in several roles at GDEcD including Division Director for the Rural Georgia Initiatives and the Director of the Center of Innovation for Agribusiness.

including Pure Flavor, Sweet Grass Dairy, MANA Nutrition, Muscadine Products Corporation, and Mo’s Smoke & Sauce. The Center of Innovation connects businesses with expert staff members, external partners, and independent mentors to help them overcome challenges and embrace opportunities. These include product innovation, intellectual property, process and supply chain optimization, talent and workforce development, and more.

Keeping up with consumer preferences, such as the availability of locally grown produce, is at the heart of food product innovation. The Center’s team stays up to date with these trends to guarantee maximum success for its clients.

With these assets in place, it’s no surprise that Georgia is also home to more than 399,200

food and fiber production related industry jobs. With 22 technical colleges on 88 campuses along with Georgia’s top-ranked research programs in food safety and processing, companies directly benefit from Georgia’s investment in education. A few examples of higher education institutions that contribute to agricultural inno-

vation include:

• The Center for Food Safety at the University of Georgia (UGA), which works closely with the Atlanta-headquartered Centers for Disease Control and Prevention (CDC) and develops techniques to detect, control, and eliminate disease-causing microorganisms and toxins.

• UGA’s Food Product Innovation and Commercialization Center, which helps companies develop and improve food products and processes.

• Georgia Tech’s Food Processing Technology Division (FPTD), which researches food quality and safety with emphasis on advanced imaging, sensor technologies, and robotics and automation systems.

• Lanier Technical College’s ammonia refrigeration training program is one of only a few in the U.S. and is the official IARW-WFLO Ammonia Refrigeration Training Program.

Logistics and infrastructure play a huge role in companies’ abilities to quickly and efficiently move products in and out of the state. Ranked

The state is home to the Port of Savannah

No. 1 for logistics and infrastructure in 2020, Georgia’s geographical location in the center of the Southeastern U.S. streamlines logistics for transporting food products to market and is a vital ingredient to companies’ success.

(the fastest-growing port in the nation) and to Hartsfield-Jackson Atlanta International Airport (the world’s busiest and most efficient airport, with the 12th-largest air cargo hub in North America).

In Georgia, we have the space, talent,

resources, and a strong supply chain network – it’s the perfect recipe for any agriculture business to succeed.

For more information on how the Georgia Center of Innovation can help your company, visit: georgia.org/center-of-innovation.

Severe weather events have become increasingly common in recent years, from record snowfalls and extreme cold to crippling floods and punishing heat waves. These events put lives at risk, while also causing

loss of jobs and property, substantial power outages, infrastructure damage and other far-reaching effects—including substantial disruptions to the supply chain, which adds to the growing economic fallout from weather disasters.

HOW WEATHER DISASTERS

IMPACT THE SUPPLY CHAIN

Let’s dive into the billion-dollar weather disasters disrupting supply chains across the globe and explore how organizations can respond.

The financial costs of weather-related events have been climbing steadily each decade since the National Centers for Environmental Prediction (NCEP) started tracking billion-dollar weather disasters in 1980. In 2022 alone,

there were 18 weather/climate events with losses that exceeded $1 billion, altogether totaling more than $165 billion. Although the costs from 2022 aren’t the highest on record—2017 and 2005, each with three Category 4 or 5

hurricanes, top the list—2022 still far exceeds the $116 billion average of the past five years. Perhaps a more important factor to consider is that the frequency of weather and climate-related disasters is steadily increasing. A United Nation report notes that there have been 7,348 major weather/climate events worldwide so far this century, compared with 4,212 in the last 20 years of the 20th century. And the frequency of

ABOUT JON DAVIS:

disasters is increasing in every category, particularly floods, storms of all kinds (not just resulting from tropical activity), extreme temperatures and drought.

The supply chain is especially vulnerable to the increased rate of weather disasters, which can cause disruptions in shipping and transportation, interruptions in business and production, and damage to infrastructure. Businesses

Jon leads Everstream Analytics forecasting operations for energy, agriculture, and supply chain logistics. Based in Barcelona, Spain Jon brings over 35 years of experience and is widely considered one of the foremost experts on the impact of weather and climate on global commodities.

incur capacity constraints, inventory shortages and price fluctuations, along with other consequences.

The High Costs of Severe Weather

To get a feel for the supply chain impact of these events, let’s look at the three most costly weather/climate disasters of 2022—based on the most recent, complete sets of data. The most extreme weather disasters last year impacted various areas of the country, occurred throughout the year, and included a wide range of weather events. The top 3 major disruptive events included a hurricane, drought/heat, and

a blast of extreme cold and historic snow during the final days of 2022.

1) Hurricane Ian

The costliest weather disaster in 2022, both in terms of fatalities and financial impact, was Hurricane Ian, which tore through the Caribbean, Florida, Georgia, and South Carolina in late September. The estimated losses totaled $112.9 billion, being felt most acutely in agriculture, as well as in tourism, manufacturing, infrastructure, and the food industry.

Ian was the third costliest event since the turn

Pictured: Flood in power plant .

of the century, surpassed only by Hurricane Katrina (2005) and Hurricane Harvey (2017).

2) Central U.S. Heat Wave and Drought

A severe drought and heatwave plagued the western and central United States for most of 2022, peaking in late summer and fall. Damage to agriculture, livestock and industries that rely on receiving ample water supplies totaled $22.2 billion. And 136 fatalities were also attributed to the heatwave.

Although the year ended with abundant rainfall in some parts of the country, such as California, the impact of the drought is ongoing and is expected to extend well into 2023.

3) Central/Eastern U.S. Snow and Extreme Cold

The Christmas freeze and historic snowstorm impacted much of the country east of the Rockies in, and around, the Christmas Holiday. Record cold was widespread while the historic snow was limited to locations such as Buffalo, New York. These items, especially during the busy travel period, proved to be deadly as 87 fatalities were directly attributed to the extreme bout of winter weather – many of them in the Buffalo area. The financial losses from this event totaled $4.8 billion making it the 3rd most costly event of the year. The issues included more than 1 million customers without power, major travel problems, infrastructure damage, and tens of thousands of frozen water pipes and the damage to homes and businesses that occurred because of the unwanted water.

Increased Costs of Storms And Disasters Are Impacting Everyone

The increased frequency and mounting costs of weather and climate-related disasters has been indiscriminate, rising in virtually every category from hurricanes and winter storms to wildfires and tornados, and it isn’t going to abate. The events of the past year continue a trend that has been going on for at least four decades. Even when adjusted for inflation, the average annual economic loss from these events has grown at a staggering rate.

• 1980s, $21 billion

• 1990s, $31 billion

• 2000s, $59 billion

• 2010s, $93 billion

The trend also is global, as record heat waves

in Europe and across India and Pakistan during 2022 attest. With companies increasingly relying on complex, interrelated systems of materials sourcing, manufacturing and distribution, the risks to the supply chain are increasing as well.

Analytics Enables a Proactive Response

Severe weather events resulting from climate change or other occurrences may be outside the immediate control of companies, but how those companies react to those events can help Pictured: Weather extremes and financial losses are increasing each decade. (source: UN).

limit the impact on their supply chains. Making use of data and powerful analytics can help organizations adapt to environmental, social and governmental (ESG) risks, including those resulting from weather and climate.

Rather than trying to fortify every link in the chain against any kind of risk, an analytics platform can use data to identify the most serious

risks, and where they would have the greatest impact. In the case of weather-related events anywhere in the world, analytics can produce risk scores for Tier 1 suppliers on down the chain or into locations in another country. This can help organizations prioritize risks and take proactive measures, such as boosting inventory at one location or adding secondary supply

sources.

One example involves a retailer with an international network that had a large number of stores in the path of Hurricane Ian. An Everstream Analytics team had been keeping an eye on the wind patterns in the Atlantic Ocean that would become Ian, beginning nine days before its eventual landfall, and alerted

the company of the impending crisis. From locations in the United States and Europe, the team began alerting clients around the globe about the risk factors to the supply chain, both upstream and downstream.

The team also turned its attention to the store locations in Florida, assessing the storm’s models to determine how best to help the stores prepare—for instance, delivering sandbags where flooding was a particular risk, and boarding windows where high winds were expected. By making use of analytics, the retailer had the advance warning and risk analysis it needed to take proactive steps to protect multiple locations in the storm’s path.

Weather- and climate-related crises are inevitable for at least the foreseeable future. Analytics can’t prevent weather events, of course, but it can break down the strategic and operational risks and dynamically deliver insights that can help organizations predict and proactively respond to near-term risks, ultimately giving those companies a competitive advantage.

NAVIGATING THE THE PANAMA CANAL

The Panama Canal, an essential artery of global trade connecting the Atlantic and Pacific Oceans, is currently grappling with a severe drought. Water levels continue to decrease, raising concerns about the poten-

tial impact on supply chains and peak season shipping. Rainfall was less than 50% of normal from February to April near the canal and the lakes that feed it, according to ACP (Autoridad del Canal de Panamá). Water levels in the larg-

DRY WATERS OF CANAL

Manufacturers should prepare now for the impacts of the Panama Canal drought on supply chains and peak season shipping.

er of the two lakes that feed the canal, Lake Gatun, are projected to hit historic lows in July. This drought has led to restrictions in ships’ drafts from the canal’s normal operating drafts at 50 feet – limiting how much cargo ships can

carry. On May 24, Neo-Panamax vessels, the largest ships that transit the waterway, were limited to drafts of up to 44.5 feet, down from an already restricted 45 feet. The draft limit was reduced again to 44 feet on May 30. The impacts

of the reduction of 6 feet are set to reduce space for most shippers on Neo-Panamax vessels by 40%. Among the Neo-Panamax users of the Panama Canal in April, container vessels made up 45% of traffic, followed by carriers of liquefied petroleum gas, dry bulk and liquefied natural gas.

The Panama Canal drought could disrupt the usual shipping routes that manufacturers rely on. With decreasing water levels, larger vessels may experience draft restrictions, limiting their passage through the canal. This disruption forces shippers to seek alternative routes, such as circumnavigating South America’s Cape Horn

or opting for longer trans-Pacific or trans-Atlantic routes. These detours can result in longer transit times, increased fuel costs and potential congestion at alternate ports, impacting supply chain efficiency and timely delivery. This news is concerning as we had seen larger volumes of ships going through the Panama Canal to divert

ABOUT THE AUTHOR

Bart De Muynck is Chief Industry Officer at project44 where he drives supply chain industry thought leadership and supports customers with their strategies. A logistics industry thought leader with 30 years of experience, Bart previously served as VP of Research at Gartner. Earlier in his career, Bart held logistics roles with PepsiCo, Elemica, Penske Logistics, GE Capital, and EY.

to the Gulf Coast and East Coast ports. Recent terminal closures at major West Coast ports due to ongoing labor disputes have caused delays and unpredictability in West Coast operations. Now shippers are forced to choose between uncertain labor conditions, lower amounts of volume or longer trade routes.

The Panama Canal’s historic low water level projected for July coincides with peak season shipping, when manufacturers experience high demand for their products. Traditionally, this

period sees a surge in maritime trade as companies prepare for major retail events, such as the holiday season. The water level constraints at the canal can exacerbate the strain on supply chains, as shipping capacity becomes limited. This scarcity of available routes and increased competition for limited slots can lead to higher freight rates and challenges in meeting peak season demands. The drought-induced disruptions in the Panama Canal can further result in supply chain delays and inventory management challenges. Businesses that depend on justin-time (JIT) or lean inventory strategies may encounter difficulties in maintaining optimal

stock levels.

Longer transit times, port congestion and unpredictable scheduling can disrupt the seamless flow of goods, potentially leading to stockouts, production bottlenecks and customer dissatisfaction. To mitigate the impact of these delays, businesses must prioritize effective inventory management, contingency planning and close collaboration with suppliers.

Limited canal availability may lead to higher freight rates as carriers seek to optimize their operations and cover the additional expenses associated with longer routes or port congestion. Businesses reliant on the canal for cost-effective

transportation may face financial pressure as they grapple with increased shipping expenses. Consumers can expect that these increased expenses will eventually result in higher prices for goods, possibly further increasing inflation and hurting consumer demand in an already weakened economy.

The Panama Canal drought highlights the importance of building resilient supply chains and implementing robust risk management strategies. Manufacturers should conduct scenario planning where shippers can map alternative shipping routes, establish backup suppliers and invest in technologies that enhance supply

chain visibility and agility. By proactively managing risks and anticipating potential disruptions, businesses can mitigate the impact on their supply chains and maintain operational continuity.

The Panama Canal drought presents significant challenges for supply chains and peak season shipping, including disrupted shipping routes, inventory management issues, rising costs and the need for diversification. It is expected that the situation will only be exacerbated by El Niño heading into 2024 – so it is imperative manufacturers figure out their risk management strategies as soon as possible.

STRATEGY GAPS DRIVE

DRIVE MANUFACTURING

Scarred by the unprecedented supply chain crisis of the last several years, industrial manufacturing M&A activity in 2023 will consider onshore or nearshore actions for certain operations through facility or supplier acquisitions. This is a trend we are already seeing in global players in the transportation and logistics and consumer markers industries as a result of supply chain disruptions.

Overall, PwC’s Industrial Manufacturing: US Deals 2023 Outlook found that industrial manufacturing M&A deals declined in 2022 from historic levels in 2021. However, the 2022 level of deal activity was still above historical trends, specifically higher than 2019.

Expect a strategic shift

Despite macroeconomic headwinds, the year ended strongly, with significant growth over the previous quarter. This year, however, we expect to see strategic focus areas of investment along with portfolio review to grow deal activity. Companies are looking across their capabilities, in the context of where they stand in the markets, to identify gaps in their portfolios

In 2023, industrial manufacturers will look to M&A to fill strategic gaps and manage supply chain risk profiles.

— from skills and service to product offering to price point.

Driven by continued economic uncertainty and geopolitical events, we saw signs of a shift from more transformational deals — transac-

tions exceeding $1 billion in deal value — in North American M&A volume in the second half of 2022.

M&A activity in strategic areas will supplement platforms and programs and may help to minimize supply chain risk, enabling companies to become better positioned to weather macroeconomic challenges. In 2023, companies continue to manage ongoing, albeit easing, shortages and prevent another major disruption, which will also be an influence on the M&A landscape over the next 12 months.

Companies may seek opportunities to combine businesses to reach scale and to limit margin erosion from volatile commodity prices and increasing energy costs. We will likely see vertical integrations to secure access to key suppliers and raw materials, contributing to an accelerating trend of businesses converging into different sectors.

Getting back to basics

Essentially, 2023 will be a year of getting back to basics. Industrial manufacturing companies

MICHELLE TOMCHAK RITCHIE

Michelle Tomchak Ritchie is the Co-Global Industrial Manufacturing and Automotive Deals Leader and US Industrial Products Deals Leader at PwC, focused on advising clients on acquisition and divestiture activities. She supports both private equity and corporate clients in the US and Europe.

are retrenching. M&A activity will also likely be driven by mid-market corporations and private equity portfolio companies seeking strategic expansion of platforms and programs.

CEOs are potentially looking to divest noncore assets, which is likely to fuel stable deal activity. Many are reviewing their portfolios and considering carve-outs and divestitures as they shift focus from growth to profitability and capital allocation. These transactions will raise new capital for investment in more profitable areas. Corporates with lower cash balances are

likely to consider more defensive M&A strategies.

This might be surprising, considering companies across all industries are typically more reluctant to embrace them than acquisitions. Even though divestitures come with significant investments in costs, time and operational complexities, they are a critical part of strategic repositioning and can help drive higher shareholder returns.

In this case, attitudes matter. We see a correlation between results and a positive

attitude, with about two-thirds of sector respondents seeing more than a 5% return on their divestitures.

Four hot areas for M&A

We’ve identified four hot areas for strategic acquisitions: innovative technologies, data analytics, people and cybersecurity. New technology can not only create resilience, but also a competitive advantage in the longer term.

Innovative technology areas include batteries and charging for electric vehicles, cloud, AI and robotics. Data analytics will enable more strategic decisions— including helping manage the high price of input costs such as energy and raw materials along with the right strategy to protect their companies from margin erosion and order volatility.

Sector perspective

The altered trajectories of many industries have brought both challenges and opportunities, but the impact varied significantly among sectors. Recovery continues to be uneven, and convergence is ongoing.

From a sector perspective, a recovery in tourism and stability in defense budgets makes us cautiously optimistic about deal making activities in aerospace and defense (A&D). Transactions in the automotive market will continue to be dominated by the transition to electric vehicles.

The desire for infrastructure investments will drive deals in the engineering and construction (E&C) sector. We also expect a healthy level of transactions in the business services sector due

to the sector’s somewhat anti-cyclical nature, combined with growing investor interest in technology-led solutions.

Bringing it back to industrial manufacturing,

the sector will likely see a stable level of deals activity, with medium-size transactions driven by strategic focus areas and national consolidation in the machinery and equipment niches.

HOW TO ENGAGE GENERATION OF

A2022 McKinsey & Company study found employees are more likely to be engaged at work and committed to their careers if they find purpose in what they do and are making a difference in the world. At the same time, the workforce is evolving as younger generations that emphasize the importance of making commitments to broader societal challenges – climate change, sustainability, healthcare – climb the corporate ladder. Meaning that careers in STEM and the life sciences, especially after the last few years, are expected to continue attracting talent and grow in importance.

However, people of color and those living in systemically under resourced communities, are

THE NEXT STEM WORKERS

To ensure the future of STEM workforces, companies must prioritize partnerships that support education, exposure, and experience.

historically underrepresented in STEM. White workers represent the majority of the workforce (67%), while Asian Americans (13%), Black (9%), and Latinx (8%) workers make up the rest, according to a 2021 Pew Research Study. What’s more, and where the industry needs to focus their attention, Black and Latinx adults are underrepresented among STEM college

Pictured above: The RBTV Girls STEM Journey visited Waters Headquarters where they learned hands-on about chemistry, manufacturing, and engineering.

graduates, compared with their share of the population.

We can ensure the future STEM workforce is truly representative of the society we live in by developing innovative approaches to support students in schools historically underfunded. Through corporate-driven programs that fund STEM-based scholarships and internship programs, as well as the championing of academic programs and company volunteerism to promote STEM careers in these communities, we can make a meaningful difference. More diver-

sity can translate into increased innovation and decreased attrition, which should also have a positive impact on revenue.

However, no one organization can do this alone and to be successful there needs to be active partnerships with organizations that have a shared vision for an equitable future. This can lead to unique collaborations that have a direct impact in our communities and on the lives of students.

For example, JA Worldwide, reaches more than 10 million young people a year, and is one of the world’s largest and most-impactful

youth-serving organizations, delivering handson, immersive learning in work readiness, financial health, entrepreneurship, sustainability, STEM, economics, and more. A local example in New England, The Ron Burton Training Village (RBTV) works to enrich the lives of youth and has helped more than 9,000 junior high to high school-aged students. The program provides access and mentorship in areas including social skills, leadership, and education, and includes specialized STEM learning for girls that are based on real-world experiences and issues like disruptive technolo-

gies and autonomous vehicles.

Since 1990, STEM careers have steadily increased, having grown 79% in almost 30 years, with projected growth of over 10% by 2030. Additionally, the life sciences industry has undergone a tech revolution, introducing everything from advanced technologies and robotics to machine learning and natural language processing. While these two facts may not seem related, they are dependent upon each other.

As the industry advances there is greater need for diversity of thought and tech-agile individuals to join the workforce to continue to trans-

form how we operate to streamline, advance, and optimize the work done across functions. By prioritizing STEM education and training for young individuals who might not otherwise be exposed to the vast career options in STEM-based fields, we can help create a more robust and agile workforce.

To support this cause and with a desire to help create diverse career opportunities, Waters Corporation invited students from Jeremiah Burke High School in Dorchester, Massachusetts, and Team New England, a youth development program that serves students in the Boston area, to participate in a

About the Author:

An experienced project manager, Jess currently leads all Diversity, Belonging, Inclusion and Equity work for 8,200 global employees at Waters Corporation. Her expertise is in diversity, equity and inclusion, higher education, recruitment, people relationships, and integrating anti-racism and anti-oppression work into long-term strategies. Previously, Jess led DEI work at City Year Boston and the management of over 400 volunteers and interns as part of the Talent Teams at East Harlem Tutorial Program. Jess has exceptional interpersonal skills with the strong ability to successfully facilitate difficult discussions about, unconscious biases, race, and racial equity.

pilot program during the summer of 2021. Together, we saw a significant opportunity to create an incredibly impactful program combining mentoring, education, business, and science – all aimed at one goal: to spark students’ interest through exposure, education, and hands-on experiences so they could envision new possibilities for their futures. Waters expanded its commitment, after the success of the pilot, by developing the Waters Student

Academy, an internship program administered entirely by employees that is tailored to high school students, to provide hands-on experiences and exposure to people and the sciences across multiple scientific and corporate functions.

STEM-based organizations and communities have much to gain and contribute to the world by helping ensure that today’s students are tomorrow’s STEM visionaries. While programs can be designed to offer more opportunities to Black and Latinx students, there is still much more that can be done to encourage engagement and participation. We are on a mission to achieve a workforce that is reflective of our world for the best thinking, collaborations, and impact, and creating pathways to introduce students from all backgrounds to STEM careers is just the first step.

PEER INTO PEERLESS

Peerless of America is a pioneer manufacturer of aluminum tubing for refrigeration and all-aluminum and aluminum/copper heat transfer coils.

While it might seem like a contemporary marketing gimmick to emphasize made in American manufacturing, the company name of Peerless of America actually dates back to 1912. And it is a manufacturer that has lived up to that name over a hundred years now, making products in America without peer in

terms of quality, innovation, on-time delivery, and reliability.

“There have been changes in ownership over the years,” notes Jordan SammonsSmith, president of the Effingham, Ill.-based manufacturer. “But extruded aluminum shapes remain our core competency, and throughout all that time on which we’ve built a history of

industry firsts. In the early 1930’s we introduced the first all-aluminum fin coils for commercial refrigeration. By 1960, Peerless introduced all aluminum fin coils for frost-free household refrigerators.”

Today, just one example of Peerless innovation in response to customer needs is evaporators and condensers optimized for use with natural refrigerants (CO2, R290 & R600A) as well as eco-friendly heat exchangers in accordance with Department of Energy and Environmental Protection (EPA) Agency requirements. The

company’s most recent innovation is a 5 mm solution all-aluminum condenser with a patent pending non-conventional design called The Natural Refrigerant Coil. Another is unit coolers using EC (electronically commutated) motors with universal voltage (115 – 240 volts 50/60 Hz) that are energy efficient and functional anywhere in the world.

“The Peerless tradition of innovation and customer focus is to design and manufacture custom solutions employing all-aluminum and aluminum/copper heat transfer coils and alu-

minum tubing for refrigeration equipment used in a wide variety of industries,” SammonsSmith says.

She adds that, “We aren’t the least expensive, but what makes the difference to our customers is the Peerless quality and services they know they can depend on. And while the majority of our industry has shifted to manufacturing overseas, or import parts and assemblies, Peerless continues to produce products that are truly American made. That enables us to provide the highest-quality products at reasonable prices.”

The made in America ethic extends to Peerless suppliers, as well. “We source machined fittings and powder coating from companies in Dieterich, Ill. We partnered with a stainless-steel manufacturer here in Effingham for parts used in our food-grade assemblies. We use robust motor mounts, made in Robinson, Ill. and fan guards from Valparaiso, Ind. Our energy efficient universal voltage EC motors

Pictured: Full view of the coils refrigeration facility.

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are made in Woodville, Wis. We purchase tubing from Missouri and aluminum stock out of Tennessee and Arkansas.”

The advantage is a more stable supply chain in working with local suppliers, which helps ensure on-time delivery and high quality. It is also, Sammons-Smith emphasizes, “An investment in the local communities where we all live and work.”

Aluminum Extrusion and Heat Transfer Coil Divisions

Peerless operates two divisions. Aluminum Extrusion products are used globally in condensers/evaporators, radiators, battery coolers, charge air coolers, connector lines, fuel coolers,

oil coolers and inter-coolers. These corrosion resistant aluminum extrusions are made from high strength, high temperature 1000 series, 3000 series and 6000 series aluminum alloys that are also recyclable. The company is also a leading manufacturer of OEM and replacement unit coolers for commercial, grocery, restaurant and retail applications.

The Coils Heat Transfer division makes traditional plate-fin refrigeration coils as well as the company’s own Skyve coil technology. In

Pictured: We test 100% of our products prior to shipping to our customers.

addition, custom tubing assemblies fabricated from copper or aluminum achieve high efficiency and reduced overall expense. The company’s evaporators and condensers used in “frost-free” commercial and residential refrigeration feature copper tips joined with Peerless-patented “eutectic” joint or fluxless solder joints. Oil coolers for automotive and industrial use are designed to withstand the most rugged conditions and still perform at maximum efficiency. Peerlite II coatings provide superior corrosion resistance at significant savings over competing systems.

There are separate manufacturing lines at its 177,000 square foot manufacturing plant

with a shared meeting and cafeteria space for employees between the two lines. In addition, there is a dedicated Research and Development department to investigate improved heat transfer efficiencies and solve customer problems by designing customized solutions.

“We can design, prototype, extrude and manufacture aluminum parts, coils and systems for any range of heat transfer needs,” SammonsSmith notes. “High precision, tight tolerance, thin-walled aluminum extrusions in round tube, multi-port extrusions, hollow extrusions and tank extrusions provide safer and higher heat transfer efficiencies, less maintenance and lower fuel consumption.”

Pictured: Copper/Aluminum Coils.

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Selling both through distributors and direct to customers, Peerless products are used in a wide variety of industries, including aerospace, automotive, industrial equipment, military, energy, refrigeration, air conditioning and various aftermarket applications. Selling to multiple markets helps maintain business stability when one or several sectors slow down. The “problem” for Peerless is that there is currently high demand from just about every market it serves.

Meeting High Customer Demand

It’s the type of problem any business might want to have. Sammons-Smith notes that as a small company with some 100 employees, Peerless is able to proactively respond to high customer demand through its digital transformation initiatives coupled with programs to attract necessary manufacturing talent.

“We recently installed a new MRP (Materials Requirements System) that we’re learning almost something new every day to improve our

Pictured: One of the original buildings for Peerless of America.

supplier relationships,” Sammons-Smith says. “It is also going to helps us shorten lead-times to get raw materials at the best prices. The metals market is currently somewhat more settled than it was, but we work with multiple suppliers as well as ensure we have sufficient inventory on hand to ride at any potential disruptions. We also have the advantage as a domestic manufacturer that we can work directly with a number of local suppliers and shops here in Illinois to optimize our efficiencies.”

While the two manufacturing lines are highly

automated, Peerless, like most manufacturers these days, is actively recruiting talent in a range of much needed skills sets. “We’re working with local colleges and schools to promote the idea that if you like working with computers, manufacturing in a high-tech industry where you can have a career,” Sammons-Smith says. “Also, we’re looking to get the word out that you don’t necessarily have to get a college degree to work in a technical manufacturing field. Jobs in manufacturing such as welding are in high demand, offer good pay and rewarding careers. Peerless pays competitive salaries based on experience and a full benefit package after 60 days of employment.”

“Peerless is a strong company with a lot of history, and we’re still growing,” Sammons-Smith says. “Our customers are in need of products that are green, cost-effective and made in America,” Sammons-Smith says. “We provide the most viable solutions that offer high performance and improved efficiency that reduce overall operating costs.”

Which is why the company is called Peerless.

A COOL PLACE TO WORK

t’s not hard for people at Big Ass Fans to connect with what we make,“ notes Nick Deters, Director of Strategic Sales. “All they have to do is look up.”

Kentucky-based Big Ass Fans manufactures high-volume, low-speed (HVLS) fans used in a wide range of commercial, industrial, professional, and home applications. When Big Ass

employees look up from wherever they are at in the company’s Lexington manufacturing and headquarters open space campus, they see their own products at work keeping them comfortable.

And it’s not just the fans that aim to keep the company’s employees comfortable. It’s a culture purposely built on the work hard, play hard model. In fact, the company website

Big Ass Fans is the world’s largest manufacturer of HVLS fans, with an open and inclusive culture for employees where fun and excellence coexist.

proclaims:

“Comfort isn’t just a word. It’s our mission. It’s the reason we do what we do. As the first to champion the comfort of workers, we remain steadfast in our commitment to their health, safety, and well-being. Every product we engineer, every advancement we make begins with workers in mind. After all, they don’t complain about being uncomfortable with Big Ass Fans on the job.”

Big Ass Fans touts a “not-so-ordinary work culture,” which is not all that surprising when you consider that the company has a “not-so-ordinary” name. In addition to generous

benefits—including comprehensive health insurance, 401K plan, paid holidays and PTO, wellness benefits and paid family leave, and holiday shutdowns—Big Ass Fans employees enjoy catered lunch and food trucks as well as a beer fridge (also stocked with non-alcoholic drinks, open only after hours to the entire company when the sales team hits the daily goal). There’s also a ritual whenever a salesperson hits a $25,000 goal, signaled by a bell ringing and playing a song of that person’s choosing. There’s also a free fruit cart—the company consumes about 200 pounds of fruit a week!

But wait, there’s more. There are pool and ping-pong tables available during lunch breaks or before or after work. And a well-stocked bike center to select a two-wheeler for use on a

nearby trail. Big Ass Fans sponsors or encourages participation in numerous outside activities and community events. It’s all part of what the company describes as, “living the Big Ass life.”

It’s a Team Sport

Besides the games and activities made available to Big Ass Fans employees, Deters emphasizes that perhaps the biggest (to overuse a term, albeit highly descriptive) attraction to employees is that work at Big Ass Fans is a “team sport.” According to Deters, “The environment here is designed to foster collaboration. We have this wide-open office space where anybody

can go anywhere to talk to anyone. Someone on the manufacturing line can feel free to bring something up with an engineer or designer. There are no hierarchies here or rigid reporting structures. We don’t expect anyone here to do anything on their own, it’s truly a team effort. That spirit of collaboration to solve problems and work hard and provide our customers with the best products and services is what draws people here and makes them want to stay for their careers.”

While a number of companies are struggling post-pandemic to get people to return to work, Big Ass Fans employees couldn’t wait to get back. “Because of the open space we have here at Lexington, we were able to put in place social distancing so people were able to come into

Pictured: One of the company’s goals is to foster collaboration amongst its employees.

work safely,” Deters said. “For those working remotely, we scheduled regular virtual team meetings to maintain our collaborative spirit. Even now that things are getting back to normal after COVID, we offer people the flexibility of working in hybrid arrangements, but we find that many prefer to come into work because the work depends so much on interacting with

other people.”

Big Ass Fans employs some 675, about 550 of which are located at its Lexington campus, which houses both manufacturing and office facilities, with the remaining deployed at various international sales offices. Roughly 30 percent of staff is sales, 35% sales support, 10% engineering and design, and 25% manufacturing.

Not only does Big Ass Fans offer career paths within these disciplines, but it also encourages cross-training. “If someone says they are interested in doing a different kind of job, we’ll help them get the skills they need to do it. Even if someone wants to leave the company, we’ll help them get ready for whatever the new

NICK DETERS -DIRECTOR OF SALES

As the Director of Sales at Big Ass Fans, Nick Deters is committed to arming the sales team with the tools they need to help solve our customers’ airflow problems.

With over 10 years of experience at Big Ass Fans, Nick has done it all. He started as an intern on the sales floor then became full time upon graduation. He quickly rose through the ranks on the sales leaderboard, as a department manager and now the director of sales for a segment of the business. Transitioning to a leadership role was natural for him with his player-coach mentality. He takes arming his team with the support and tools they need to be successful. He knows that when his team succeeds, we all win.

Nick’s favorite part about the job is the people he gets the opportunity to work with and meet daily. He loves getting the chance to make a positive impact in their lives whether it be helping a member of his team close a sale or directly helping solve a customer’s problem.

opportunity is,” Deters says.

One Big Ass Family

“Everyone here is treated like family,” Deters says. “Our employees aren’t just putting in their time. On a deeper level, they enjoy working with one another and sharing their accomplishments. Its why people tend to stay, and why if anyone does leave us, they often come back.”

Although leaving the company is a rare occurrence. Big Ass Fans has minimal turnover, and most employees are in for the long-term. While many other companies, are struggling to fill

jobs, Deters says that, “We don’t have much of a problem finding and retaining the talent we need.”

That said, Deters adds, “We’re continually expanding, so we are always looking for people. We work with several colleges and even high schools to recruit people; in fact, as we are speaking a new class of 20 interns just came into the office.”

But the biggest recruiting by far is the reputation of Big Ass Fans. “The local labor pool here in Kentucky is fairly rich with the skills we need,” Deters says. “Plus, we’re a pretty wellknown brand.”

Because who wouldn’t want to work for Big Ass Fans, where everything is looking up.

Pictured: Big Ass Fans manufactures high-volume, low-speed (HVLS) fans used in commercial, industrial, professional and home applications.

BUILDING PEOPLE

Family-owned and vertically integrated Southland Trailer Corp. is the largest trailer manufacturing company in Canada.

There is no overnight success story here as this story starts with hard work, a positive attitude, and calculated risk-taking which Southland Trailer Corp knows very well. Monty and Shelly Sailer started their journey back some 43 years ago and are now handing the business over to their 3 sons, Jason, Ryan, and Scott

Sailer. Shelly Sailer is the backbone of the company and the secret to our success.

“We felt that the traditional business model for trailer manufacturing was archaic,” explains Scott Sailer, Operations Coach. “We were looking to model ourselves after the automotive industry’s lean manufacturing principles for continuous improvement, and particularly

Toyota’s corporate philosophy that places an emphasis on employees and creation of a homelike atmosphere at work, combined with lean manufacturing principles.”

Today, Southland Trailers is the largest steel product manufacturer in Alberta, Canada, with a customer base that stretches across Canada

and the United States extending as far south as Texas and towards both east and west coasts. “We changed the way trailer manufacturing was done,” Sailer says. “Kudos to our parents for trusting us.”

Southland Trailers offers a complete line of products marketed under three brand names recognized for their high-quality applications:

• Southland Trailers: dump trailer, flat deck, gooseneck;

• Royal Cargo: cargo trailer, car hauler, toy hauler;

• Renn: flatbed, gravel, gravel boxes.

Based on 37 acres and a 300,000 square foot manufacturing facility in Alberta, Southland Trailers employs over 385 team members. One

Established in 1992 in Canada, we service and supply clients across North America.

We supply vibration resistant fasteners and tooling for manufacturing, including:

• Hydraulic lockbolt tools

• Air rivet and lockbolt tools

Blind Rivet Nuts/ Threaded Inserts

• Structural Blind Rivets

G-grip full 304 stainless Lockbolts

• Small diameter Lockbolts (3/16”, ¼”, 3/8”)

• Large diameter Lockbolts (up to 1” diameter)

With over 30 years of experience we have extensive industry insights and product knowledge, paired with rigorous quality standards.

leading indication of its continued success is recently announced plans to build an additional 85,000 square-foot advanced manufacturing plant, planned to be operational this summer, that integrates robotic systems to enable the company to double its daily production capacity.

According to a recent press release, the project is expected to create 250 jobs over the next three years, contrary to the myth that robots and automation eliminate jobs. “It’s true that robots eliminate jobs that are repetitive and

often dirty,” Sailer notes. “But robots actually also create jobs. There are opportunities for anyone who is willing to retrain and learn new skills. It’s not only a better job, but a more rewarding career path.”

He adds, “We like to say Southland Trailers doesn’t build trailers, we build people.” A wide range of benefits and perks provide a firm foundation for building people, including incentive bonuses, leadership and personal development training, health insurance and a retirement contribution matching program. In addition, employees enjoy monthly social club events, an in-house cafeteria, a PPE (Personal Protection Equipment) allowance, condensed work week and a lucrative employee referral program valued at $1500.

Pictured left: left to right Ryan, Monty, Scott, Jason Sailer, Missing Shelly Sailer; above: Scott Sailer, Co-Owner;

Left to right SL714 Dump Trailer on top of 30ft Southland Gooseneck Trailer, SL1700 RENN Pup, 8ft x 25ft Triple Axle Royal Cargo.

Community Connection

The oil and gas industry is a major employer in Alberta, and because of that, the labor market is highly competitive. One way Southland Trailers aims to attract people is by promoting a work environment that fosters a sense of community and work-life balance. “We partner with numerous schools, particularly targeting those at a young age in grades 9 and 10, to offer programs that demonstrate manufacturing isn’t the dirty and boring work people think, but an interesting and challenging career,” Sailer says.

Southland Trailers “walks the talk” in its commitment to community and education. A recent example is how the company refurbished, delivered and installed a new air compressor for Catholic Central High School West—a donation of $12,000—to bring its pre-engineering/welding shop up to industry standard.

Southland Trailers team members can take advantage of free apprenticeships programs to expand their skillsets into different trades. In addition, Southland Trailers recognizes that people with the experience and skills are the ones best able to make their own decisions about their work processes. “Someone who is doing

Pictured left: Black Dump Trailer SL714-16KHS; Silver 5ft x 10ft Royal Cargo; Black & Orange 7ft x 14ft Royal Cargo; Southland 20ft Highboy Flatdeck c/w aluminum ramps. right: Royal Cargos loaded for shipping to a happy customer.

a job day in and day out knows more about what can improve that job than I ever will,” Sailer notes. “We listen to our employees about what needs to be done to make them more efficient and productive. Every team member feels heard and valued, our company motto is that we empower people to do it better.”

Vertical Integration

Equally important to listening to employees is listening to customers. This is why Southland Trailers is a recognized brand as opposed to just another trailer company. “Southland Trailers is an incubator of innovative ideas to adapt to changing market and consumer demands,” Sailer says.

Southland Trailers markets through deal-

ers. Although dealers may stock some inventory, most sales are built-to-order. Because Southland Trailers is vertically integrated, fabricating, painting, and finishing its entire parts and product line in-house, with no or little outsourcing. This allows a speedier production turnaround and at the same time minimize cost.

Sailer also notes “We employ lean manufacturing principles and continuous improvement processes. Because we eliminate the middleman with in-house fabrication, there’s better

communication and closer collaboration with our entire team. All of which result in higher product quality and efficiency.”

Strength-to-Weight Ratio

Another key reason for Southland Trailers leadership position is the strength-to-weight ratio of its trailers. “50% of a truck delivery is riding empty on the return trip,” Sailer says. “You want a trailer that is strong enough to carry the weight, but light enough so that you aren’t burning fuel needlessly when it is empty.”

Additional product features include:

• Engineered frames that reduce cross members and aluminum toolboxes to reduce trailer weight and increase payloads;

• Robotic welds that ensure consistency and quality;

• Fully enclosed wiring and Polyurethane Two Component Paint Process to reduce customer pain points.

“We take pride in the foundation instilled in our company values of achieving continuous improvement and innovation, providing empowered employees with meaningful and rewarding careers, and listening to the voice of the customer,” Sailer says. “We’ve grown from a small shop to a vertically integrated manufacturing operation that provides added value with the ability to think outside the box in designing and improving our products. It’s how we’ve grown over the years and why we anticipate sustained growth in the future.”

RENN

14

Pictured left: Southland 25ft Gooseneck; RENN 30ft Air ride Equipment trailer; above: SL714-14K;

33ft Gravel box c/x with SL1700 Air ride Pup;

RENN 33ft End Dump.

BUILDING DREAMS IN METAL

Family-owned Summertown Metals constructs metal buildings for commercial, residential and agricultural properties.

In considering the mettle of a building, a key consideration is whether it is made out of metal.

“Metal buildings don’t rot the way traditional wood construction does,” says Luke Bolling, General Manager of Summertown

Metals. “After 40 years, a metal building looks as good as when it first was built. In addition, there’s not only a lot less material involved in construction, but metal is also a quicker build than conventional stick building. It also requires less maintenance and is sturdier.”

Summertown Metals manufactures a range of commercial and residential buildings, including:

• Farm and Agricultural: multipurpose structures for storage and livestock;

• Residential Garages: for workshops, equip-

ment storage and vehicles, many designs include overhangs and finished soffits;

• Barndominiums (stud frame structures on concrete) and Homes; Summertown provides the exterior shell only and rough interior framing only—no interior doors, drywall, trim or

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floor coverings.

Just one example of a stock barndominium is the company’s latest model, the Rocky Top. Available with either a three- or two-bedroom floorplan with two baths, this barndominium features over 2300 square feet and a breezeway to a spacious (840 square feet) two car garage. The barndominium is made with 29 gauge painted metals walls, roof and trim. A 360

Pictured: the Rocky Top, a 2,328 sq. ft. 3 bed/2bath barndominium with attached 2 car garage; below: Custom Barndominium. SUMMERTOWN METALS | PROFILE

square foot port is timber framed with a tongue and groove wood ceiling.

“We manufacture metal components as well as stock metal panels and roofing for on-site assembly by one of our building contractor partners,” Bolling explains. “After all the permits are approved and site preparation completed, a prefabricated metal building can be erected and completed in anywhere from one to three days. It’s a quality product for a good price.”

eventually selling the company to his sons. While it started as a single materials supply company, it grew to become a manufacturing and materials distribution company. Along with stock blueprints and buildings, Summertown Metals also does custom work.”

Named after the Tennessee town where it is

located, Summertown Metals employs about 210. The company serves more than 10,000 customers in Tennessee and surrounding states, including Alabama, Mississippi, Kentucky and Georgia, with expansion plans further into the contiguous states, as well as into the Carolinas and Virginia.

Bolling attributes this growth to both the advantages of metal buildings as well as the advantages of working with Summertown Metals. “Barndominiums are growing in popularity due to the speed of construction compared to traditional stick built homes,” Bolling notes. “And particularly in our area where there is a lot of farming, building kits for agricultural use are in high demand. On top of that, metal buildings offer a distinctive look that is both aesthetically appealing as well as highly durable and long lasting.”

He adds, “Our 29-gauge residential metal panel is our most popular metal panel. It is cost

Pictured: Example of agricultural and residential garages built by Summertown Metals.

effective, virtually indestructible and easy to install. Our residential panels carry a 40 year manufacturer’s warranty on the paint and we stock more than 20 colors. These panels are ideal for residential roofing and siding on almost any structure including hay barns, garages, and even homes.”

Company Built Reputation

While Summertown Metals does some advertising, Bolling notes that the majority of sales are the result of word of mouth, as well as the company’s reputation for providing a superior product. Which is why it continues to enjoy steady sales growth.

“Our sales department works with customers to develop detailed blueprints; we provide a free estimate based on these plans. Through our partners we can also provide full con-

tracting services to take a project from conception to completion, including CAD design, engineering drawings and complete project management. If the customer decides to go forward, we sign contracts and coordinate with a general contractor for construction. Typically, we can schedule building anywhere

Pictured: The Daugherty, a 2,694 sq. ft. 3 bed/2.5 bath barndominium with attached 4-door garage.

from four to eight weeks out. Once the foundation is set and basic plumbing roughed, we ship all the materials for assembly, which typically doesn’t take more than a few days.”

Summertown Metals contracts with a lumber supplier for Cypress used for framing post and beam porches. In-house, Summertown Metals

manufactures the steel trusses and metal forming rolls, completing components with stock metal roofing and siding panels, doors and windows.

While many manufacturers are struggling with supply chain issues, good working relationships with a range of local vendors and suppliers has made this a non-issue for Summertown Metals. Similarly, Bolling says the company has little trouble attracting labor. “We’re a good employer and there are a lot of people here that are willing to work and have the skill

Pictured: Top Left: John Stoll, Founder; top right: Matt Stoll, Owner; lower left: Luke Bolling, Branch Manager; lower right: Derek Stoll, Owner; Center: 30’x40’x12’ garage with side shed; below: Rocky Top Barndominium front porch.

sets we require.”

Part of what make Summertown Metals a great company to work for is its commitment

to the community. “We realize that along with our continued success comes increased responsibility. Summertown Metals is committed to giving back to the community and to helping those less fortunate both here and abroad,” Bolling says.

He adds, “Whether you’re looking to expand your facilities, need a custom designed industrial building or metal roofing, Summertown Metals’ experienced staff takes the worry out of your project. We make sure every customer is totally satisfied.”

MAKING A DIFFERENCE WITH EXHAUSTIVE RESULTS

Active Dynamics, an OEM designer and supplier of emissions control, sound, power, thermal and fluid dynamics solutions celebrates its 65th.

DIFFERENCE EXHAUSTIVE

Active Dynamics believes there’s a better way to design and manufacture sustainable custom OEM solutions for emissions control, sound, power, thermal and fluid dynamics applications. The better way takes a progressive approach to achieve sustainability and social responsibility

to not only deliver products that reduce both acoustic and exhaust emissions, but also supports the environment and the local community.

Celebrating 65 years of operation, Active Dynamics technology enables clean, comfortable, secure, and optimum operation of vehicles and equipment used at work and

Sophisticated products, mature processes, human quality

As a leading producer of quality stainless steel tubing and tubular components in various grades and shapes, we are proud to be a supplier to Active Dynamics

We would like to wish them all the best for their 65th Anniversary.

at play. Industries served by the company’s exhaust and emission management solutions include off-highway (agriculture, construction, forestry, mining), powersports, automotive,

FISCHER STEEL:

The fischer group is the world’s market leading manufacturer of high quality stainless steel tubes and components and technological leader in the production of longitudinally welded laser tubes. The entire process - from slit strip to the manufacture of complex components - is controlled and continuously developed. An aluminum hotforming parts production facility currently under construction has been contributing to the group’s growth since 2021. The fischer group has its headquarters in Achern-Fautenbach (Baden-Württemberg, Germany) and further companies in Menden (Germany), Canada, USA, Mexico, Uruguay, Austria, South Africa and China.

commercial vehicles, small engines, industrial, marine, and stationary power. With locations throughout North America, Europe, and Asia, Active Dynamics provides the knowledge and experience to efficiently navigate international markets and serve customers and partners around the world.

From the smallest components to complex systems, Active Dynamics provide solutions for:

• Thermal Management. These include structural and ultra-lightweight encapsulated technologies and Active Dynamics’ single and multi-layer shields, which are removable, and feature a low-emissivity design that promotes base exhaust tube breathability with minimal thermal conductivity. They provide optimal temperature ranges across the entirety of any system’s architecture, including catalytic

conversion efficiency, cold start emissions, gas aspirator technologies and overall thermal safety. Thermal management systems are available with different insulation media, a broad range of gauges, and in different shapes, as needed. Every heat shield is customized as needed to ensure vehicle integrity, keep operators safe, and minimize equipment down-time.

• Acoustic Performance. A core consideration is to think beyond simple decibel levels and consider every audible note to deliver outcomes that greatly improve user experience and performance. This process includes using aero acoustic methodology and 3D mapping to create, shape, and balance custom noise isolating products and dampening methods using a

virtually endless library of sound profiles.

• Emission Control. Turnkey emissions control solutions with proficiency in coating and catalyst technologies. These capabilities are paired with aftertreatment services that address emerging EPA, CARB, and Euro VII regulations as well as India’s Bharat IV and V. The commitment to support diverse emission control strategies is strengthened through well-established working relationships with a broad range of catalyst suppliers and for full system design capability through its joint venture, Active Dinex Emission Solutions.

• System Integration. Tailored products and solutions made to target any specific requirement and provide long-term benefit, ensuring

Tough Love

We’re driving the current to power your future

automotive.interpon.com

We’re setting new benchmarks in the agricultural and construction equipment (ACE) market.

ACE vehicles and their various components help create the realities of tomorrow; from the food we harvest to the buildings in which we live. Which means they need to perform. With a performance proposition and proven track record, an array of high-quality finishes, and environmental, chemical protection, the ACE range of powder coatings is the ultimate partner for vehicles often pushed to the limit of their endurance.

harmonious results that integrate smoothly and efficiently into any existing environment or system.

HEAVY DUTY PERFORMANCE :

The Interpon ACE range of powder coatings is the stand-out performer for a sector of outstanding performers. They can be applied without fuss and with total efficiency and come from a brand built upon putting people and businesses first. Our powder coatings provide protection against corrosion and UV-durability that ensures every piece of equipment remains operational, looks better, and retains its value for longer. And if your vehicles/equipment are well known for a particularly eye-catching shade, we’ll match the color precisely and deliver a perfect finish. We have a wide range of products to meet any challenge and can even tailor our standard products to suit your specific requirements.

Whether you’re looking to find a more sustainable solution or access the specific advantages of what powder coatings can do to your agricultural and construction equipment, contact us at automotive.interpon.com and see how we can support your business.

As a fully integrated, global supplier, every solution created by Active Dynamics is managed from start to finish in-house to bring exceptional value and support to customers. This entails “exhaustive” testing and development that begins with identifying and assessing customer requirements before a single design step is taken. Advanced predictive tools outline schedules and budgets, with industry-leading tools applied to test performance durability and engine integration along with physical testing that includes portable noise source localization equipment, semi-anechoic sound test chambers, emissions test bench, environmental chambers, and multi-fuel and multi-positional engine dynamometers supported by an extensive engine library.

Speed-to-Market

In-house, flexible tooling and machining capabilities create and deliver production-ready prototypes within days, helping drive a speed-to-market for customers on a global basis. Cost-effective and progressive design, engineering, and manufacturing services offer a range of innovative capabilities. These include large-diameter tube bending, a proprietary, high-temperature powder paint line, precision fabrication, and on-site quality assurance programs. Customers around the globe know they can count on Active Dynamics to help them build vehicles and equipment that meet the highest quality standards. Just one example of the many

accolades bestowed on Active Dynamics, its India facility, Active Chromewell Exhaust was named “Most Versatile Supplier for the Year 2022” by Kubota India.

The Active Dynamics philosophy is that each customer and each project is different, with unique market considerations and specific performance requirements. By taking the time to understand individual goals and challenges, Active Dynamics develops effective solutions that address immediate needs as well as longterm goals.

Sustainability Practices

The company’s commitment to sustainability extends beyond the products it makes to how it makes its products. Operations around the

world are engaged in practices designed to support the environment and community. These activities include recycling programs, water conservation, and social program support. As a global, multicultural company, Active Dynamics touts as a key strength the diversity of its employees, which totals more than a thousand workers worldwide. In addition to offering competitive benefits and professional growth opportunities, Active Dynamics provides a flexible work environment that helps people succeed while also maintaining a healthy life/ work balance with programs that further their

personal well-being. Because Active Dynamics truly believes that a workplace environment built on trust and support is a workplace environment where people perform their best.

Similarly, Active Dynamics is committed to meaningful steps to support the local communities where it operates. This includes working partnerships and philanthropic efforts with multiple organizations, including non-profits, community groups, and youth programs.

For real innovation with real results, Active Dynamics offers OEM solutions that offer value today, tomorrow, and into the future.

BRIGHT BUS

Lion Electric Company is a vertically integrated North American manufacturer of electric buses and urban trucks.

The future is electric for more than passenger cars: the Lion Electric Company, a leading North American manufacturer of all-electric medium- and heavy-duty urban trucks and buses, delivered 199 vehicles in Q2 2023, a 90% increase compared to 105 delivered in the same period in 2022.

While Tesla deserves credit for accelerating the transition from gas-powered cars to ZEVs (Zero Emission Vehicles), Canada-based Lion is roaring ahead to do the same in the truck and bus sector. The Saint-Jérôme, Quebec company is unique in that unlike other electric urban truck and bus makers, Lion isn’t retrofitting fossil-fueled vehicles, but rather building its electric

platform from the ground up. Lion designs, manufactures, and assembles most of its vehicle components, including chassis, battery packs, cabin, and powertrain.

Moreover, as Dominik Beckman, VP of Marketing and Communications, points out, “Lion is doing more than making electric buses and trucks; we’re providing an entire sustainable ecosystem to support the transition to electrification. That includes not only providing a charging infrastructure for zero-emission electric fleets, but also telematics and manage-

ment software, technician and driver training, maintenance support, and capital financing.” Lion is also adding to what it calls “Experience Centers” throughout the U.S. and Canada to provide after-sales service and parts.

An equally important distinction is that Lion does not depend on a third-party dealer network. “We work directly with fleet owners to help them successfully transition to electrification, which includes building the infrastructure as well as providing the vehicles.”

An additional Lion advantage is that it is a

vertically integrated manufacturer — just this past April the company officially inaugurated its new 175,000 square foot facility in Mirabel, Quebec to produce lithium-ion battery packs for its medium- and heavy-duty vehicles made it its Saint-Jérôme and Joliet, Ill. plants. The new battery pack assembly line, the first of its kind in Canada, is planned to reach production capacity of 1.7 gigawatt hours by the end of 2023, with a targeted annual production capacity of 5 gigawatts. The expectation is this can allow Lion to produce a mix of about 14,000 vehicles a year.

The company currently employs roughly 1400 people. “Our manufacturing is highly automated, but like everyone else we are in need of a range of technical and professional skills sets,”

Beckman says. But unlike other manufacturers, Lion isn’t experiencing sizable talent gaps, due perhaps in part because of its reputation for innovation as well as its commitment to green technologies.

Purpose-Built Electric Transport

Since entering production of electric buses in 2016, Lion has delivered more than 1,400 all-electric medium- and heavy-duty vehicles in North America, that have collectively driven more than 14 million miles. “These vehicles are purpose-built for electric drivetrains,” Beckman emphasizes. “As an example of why

that’s an advantage, our electric school buses are specifically designed to provide wider aisles in the same size chassis of a fossil-fueled bus.

In addition to providing the driver with better visibility to what’s behind them, this also improves safety in case there’s ever a need for passengers to exit the bus quickly. An additional safety feature, of course, is that children aren’t exposed to exhaust fumes on a bus with no emissions.” In addition to school buses, Lion also makes an all-electric midi/minibus for the paratransit market that convey an up to 150mile range and a 24-passenger capacity with easy accessibility and enhanced security. Lion’s

all-electric class 5 through 8 commercial urban trucks combine power, comfort, and modern technology. Most recently, Lion premiered its first ever Lion5, with payload configurations ranging from 19,500 lbs. through 26,000 lbs. Gross Vehicle Weight Rating (GVWR), and a driving range of up to 200 miles perfect for last mile delivery vehicles, slated for full production later this year.

“A key advantage to the Lion5 is the ability to carry more weight than is typical for electric vehicles in its max GVW class,” Beckman says. “With the higher payload capacity and ease

of drivability, the Lion5, combined with safety features such as stairstep entry/exit, superior visibility and quiet operation, fleet owners in today’s tight job market gain access to larger pool of qualified and interested operators.”

One-Day Duty Cycles

Beckman points out that, “ZEVs are perfect for last mile delivery, local bus transportation, refuse collection, and other applications where there are defined urban routes confined to one-day duty cycles. The vehicle gets charged overnight, needs only travel within a 100- or 200-mile distance, and then comes back to its depot to get recharged and ready for the next day’s operation.”

In addition to the vital role ZEVs play to help the U.S. and Canada reach their clean energy and net-zero targets by 2050 (medium- and heavy-duty vehicles account for nearly 40% of greenhouse gas emissions in the transportation sector), Lion all-electric vehicles provide users with a variety of economic as well as social advantages.

“We do a great deal of customer education,” Beckman says. “There are still a lot of myths out there about ZEVs that at least do not apply to Lion, such as that the batteries don’t work in cold weather. They do, which is why we developed our own BMS (battery management system) and BTMS (battery thermal management system) to control and access the full capability

of our batteries, minimizing range variability in extreme weather conditions.”

Financial Advantages

He adds that fleet owners often aren’t sure of the financial advantages. “There’s no engine and there’s less mechanical complexity with an electric vehicle, so there’s less maintenance in

terms not only of eliminating oil changes but also there’s fewer parts to replace. On average, electric vehicle maintenance is 60% less expensive to maintain than buses or trucks that use diesel. They are also cheaper to drive, with energy costs reduced by 80%. In addition, there

are also government subsidies and incentives to promote fleet electrification. Most use cases show a payback within seven years by transitioning to electric vehicles.”

Lion is adding to its school bus lineup with the LionD (80+ passenger capacity) heading into production and is expanding into the Class 8 tractor truck segment as the

Pictured: Marc Bedard, CEO-Founder, Lion Electric.

company moves forward transforming transportation sectors with all-electric zero emission solutions. “It’s a growing market. We’re focused on North America, but there is certainly a lot of opportunity all around the world,” Beckman says.

For electric buses and trucks, turning on the electric seems like a bright idea.