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PUBLISHER’S LETTER
N
ational Manufacturing Day 2015 was recently held on October 2nd, a nationwide event dedicated to bringing manufacturers from a diverse range of industries together with their local communities to raise awareness about the modern state of manufacturing in the United States in order to address the present and future challenges that the sector faces. In this edition’s Focus article, we take a look at the factors that combined to drive what was an extremely successful day for U.S. manufacturing, and analyze the important progress that was achieved in several key areas. The triumphant outcome was one that was critically needed for manufacturing, because while National Manufacturing Day only lasts one day, the impact and influence that the holiday’s success can have runs throughout the year. “National Manufacturing Day continues to grow and gain momentum, and we’re really starting to see its impact on both a local and national level,” says Ed Youdell, President and CEO of the Fabricators and Manufacturers Association, one of the principle drivers behind the event. The day speaks to the fact that the
2 INDUSTRY TODAY
PUBLISHER’S LETTER
United States’ manufacturing sector faces a number of questions marks going forward, perhaps most central of which is an impending skills gap that has emerged as manufacturing technology continues to advance and a largely Baby-Boomer workforce begins to retires off over the next decade. Strongly correlating with this issue is the relative ignorant and outdated view of manufacturing held by much of the younger generation and it’s role or their interest in a career. But as displayed on National Manufacturing Day 2015, manufacturers, organizations, and varying levels of governmental and academic institutions have come together to answer these questions in an aggressive, determined manner, with this year’s holiday producing by far the highest amount of manufacturing events (2,500+) held across the country since the day was first established in 2012. “The fact of the matter is that there is a looming skills gap within the manufacturing sector here in the United States,” Youdell says, adding, “It’s our job along with these companies to better reach and educate the younger generation
to ensure that not only do they have an accurate image of modern manufacturing, but they possess the interest and necessary training as well to allow our country to continue to thrive in the face of fastevolving technology and processes.” And they certainly have done so this year, utilizing platforms like social media in a more targeted manner and acquiring hard data through surveys filled out by event attendees, allowing the participating organizers and manufacturers across the country to better reach their audiences and understand the degree of effect they had in raising awareness about modern manufacturing. The growth in events from an initial 200 in the first year to now 2,500 only three years later, shows that National Manufacturing Day’s reach and influence has truly begun to snowball. But for Youdell and others, who hope to see that number hit 10,000 within the next decade, it’s about manufacturers making the most of the opportunity to reach those individuals that will ultimately determine the future of a sector critical to the economy here in the U.S. INDUSTRY TODAY 3
CONTENTS 06 FOCUS: MANUFACTURING DAY VIDEO
16 FEATURE: JAXUSA PARTNERSHIP
VIDEO
36 FEATURE: AUTO SUPPLIERS
26 FEATURE: IDC MANUFACTURING
Managing Editor: Susan G. Poeton Editor: Steven Engelhardt, Project Director: Brian McMillan
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4 INDUSTRY TODAY
VOLUME 18 • ISSUE 6
56 DEL EQUIPMENT BODY BUILDERS
46 AIR BUS LANDING IN AMERICA
VIDEO
66 WHITEHALL INDUSTRIES LIGHTWEIGHT VALUE
76 M&M REFRIGERATION IN THE DEEP FREEZE
90 CRAIG TECHNOLOGIES Misson Controls
108 JRL MARINE CONCEPTS A History of Success
100 CUSTOM PROFILE Extrusion Excellence
118 MILWAUKEE VALVE
VIDEO
In Control
128 HB&G BUILDING All-Star Casts
INDUSTRY TODAY 5
FOCUS MANUFACTURING DAY
6 INDUSTRY TODAY
FOCUS MANUFACTURING DAY
NATIONAL SPOLIGHT:
MANUFACTURING’S
BIG DAY
When Manufacturing Day was held last year, the 1,600plus educational- and instructional-based events carried out across the United States by companies small and large were together hailed as a significant victory for U.S. manufacturers and their efforts towards raising awareness about the modern state of their industry and its integral role in the nation’s past, present, and future success. After all, the sector, which accounts for 12 percent of the United States’ GDP, stands as one of the core pillars that define the country’s sustained, strong economic position relative to the rest of the world. As a result, expectations were running high for this year’s holiday, but they were certainly met. Even exceeded, perhaps. Steve Engelhardt reports.
I
n fact, over 2,300—a near 50 percent increase—manufacturers and related organizations around the United States held events both within their facilities and around their local communities on October 2nd, cele-
brating manufacturing in the United States while also diving into and addressing some critical issues facing the industry in the long term. “National Manufacturing Day continues to grow and gain momentum, and we’re really INDUSTRY TODAY 7
FOCUS MANUFACTURING DAY
8 INDUSTRY TODAY
FOCUS MANUFACTURING DAY
“National Manufacturing Day continues to grow and gain momentum, and we’re really starting to see its impact on both a local and national level.” starting to see its impact on both a local and national level,” says Ed Youdell, President and CEO of the Fabricators and Manufacturers Association, one of the key organizations driving awareness and participation for the holiday.
An American-Wide Effort While events were held in every state, certain ones stood out as leaders for the day. “The state of Florida was by far the most active in hosting manufacturing events, with over 160 events held throughout the day.” He says that education groups like FLATE (Florida Advanced Technological Education Center) and MEPs across the state collaborated together in coordinating a high volume of events across the state; a strategic approach that led to quite the successful showing. The Midwest itself shined, with Michigan-based Whirlpool, for example, hosting tours, presentations, and panel discussions at its facilities as a INDUSTRY TODAY 9
FOCUS MANUFACTURING DAY
“The fact of the matter is that there is a looming skills gap within the manufacturing sector here in the United States, and it’s our job along with these companies to better reach and educate the younger generation to ensure that not only do they have an accurate image of modern manufacturing, but they possess the interest and necessary training as well to allow our country to continue to thrive in the face of fast-evolving technology and processes.” 10 INDUSTRY TODAY
FOCUS MANUFACTURING DAY
way of providing as transparent a process as possible for those attending. There was also Iowa, who, perhaps surprisingly, had one of the strongest showings on Manufacturing Day. “The state of Iowa had a very strong performance, hosting at least one manufacturing-focused event in each of its 93 counties, which was very impressive and will undoubtedly have a positive impact on the state’s manufacturing sector going forward.” As for Youdell, who is based in Illinois, he himself attended a number of events within his own state including particularly successful ones held by Chicago-based Freedman Seating, Elgin-based Bystronic, and Morton Grove-based John Crane,
a designer and manufacturer for the pump and process industries, who gave a presentation and demo to a large group of students bussed in from surrounding high schools. “There was also a company called Termax, a metal stamping company based out of Lake Zurich, who at one point was down to 60 employees due to the recession, but now is back up to over 400 now,” he says, adding, “To see them succeeding at a high level again, and demonstrating their proficient capabilities to local students, some of whom could eventually end up becoming a part of their future workforce, is really what this day is all about.” Youdell says that MFG Day, the overriding
INDUSTRY TODAY 11
FOCUS MANUFACTURING DAY
name for the group of organizations that promote and run the event, partnered with Deloitte this year to determine in a more concrete manner just how much of an impact the national day has with respect to raising awareness and driving interest within the youth about a career in manufacturing. “The fact of the matter is that there is a looming skills gap within the manufacturing sector here in the United States, and it’s our job along with these companies to better reach and educate the younger generation to ensure not only that they have an accurate image of modern manufacturing, but possess the interest and necessary train12 INDUSTRY TODAY
ing as well to allow our country to continue to thrive in the face of fast-evolving manufacturing technology and processes.”
Leveraging Technology He says that they received 400 responses and will use the information derived to better gauge and structure how they approach Manufacturing Day and its success in addressing the modern day concerns and challenges faced by manufacturers inn the United States. “As manufacturing itself evolves, so too do the channels and methods we use to communicate our needs and reach our
FOCUS MANUFACTURING DAY
audiences,” he says, adding, “Tools like social media, and now the use of surveys like the ones we are utilizing via Deloitte, have really allowed us to reach a much wider audience and manage their needs and opinions much more effectively.” Another way technology played an important role during this year’s Manufacturing Day was through the use of virtual tours made available by companies like Innovative Components (Illinois), Magna Team Systems (Ohio), Craig Technologies (Florida), and many more. It’s an important new resource because while the best way for students and members of the surrounding community to fully understand a manufacturer’s operations was
set actual foot in the actual facility, not everyone had the time or money to do so. “Across the country there were high schools filled with students that were interested in learning more about manufacturing on this day, but didn’t have the appropriate funding for buses, or had schedule conflictions that prevented them from actually attending these events.” With virtual tours, however, students were able to experience many of the different activities that occur on a manufacturer’s floor in an interactive manner, and on the manufacturers’ end, it allowed them to reach audiences they otherwise wouldn’t have—a win-win scenario for everybody involved. INDUSTRY TODAY 13
FOCUS MANUFACTURING DAY
FACTS ABOUT MANUFACTURING • In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP. For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector. • Manufacturing supports an estimated 17.6 million jobs in the United States— about one in six private-sector jobs. More than 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing. • In 2013, the average manufacturing worker in the United States earned $77,506 annually, including pay and benefits. The average worker in all industries earned $62,546. • In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP. For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector. For more information, visit http://www.nam.org/Newsroom/Facts-About-Manufacturing/
Looking Ahead Although Manufacturing Day is completed, its success and impact continues throughout the year. As more institutions like universities, community colleges, and technical schools throw their 14 INDUSTRY TODAY
hats into the ring as well, with efforts like modifying curriculum and increasing the availability of certifications at different levels, the resources and pathways for manufacturers to draw talent and fill their ranks in the future will undoubtedly im-
FOCUS MANUFACTURING DAY
prove significantly. Couple this with a greater degree of attention and investment being carried out by politicians and business leaders alike in recent years, and what you have is an aggressive public and private collaboration in the United States determined to not only safeguard but strengthen one of its most important economic sectors. But for Youdell, who says the eventual goal for Manufacturing Day is to reach 10,000 events hosted on a single day within the next 10 years,
it’s about taking it step-by-step and building on an the large amount of progress that has already been achieved. “There is a growing level of dedication and commitment being made by manufacturers and their respective public and private partners towards combatting the challenges that lie in the not-so-distant future, and the amount of awareness we’ve been able to bring through concentrated events like Manufacturing Day has us extremely confident going forward.”
INDUSTRY TODAY 15
FEATURE JAXUSA PARTNERSHIP
HEATING UP:
JACKSONVILLE’S GROWING PROSPERITY
16 INDUSTRY TODAY
FEATURE JAXUSA PARTNERSHIP
W
hen looking across the United States at regional areas that serve as major drivers of industrial growth and overall economic prosperity, the city of Jacksonville and its surrounding counties are often (unfairly) left off the list. While it has long operated in the shadow of major metropolitan areas like New York City, Los Angeles, and Chicago, Jacksonville’s neglectful status isn’t due to a lack of business or residential population, but rather simple ignorance. In fact, the city, which is by far the largest in Florida and stands as the 12th most populous in the nation with More than 870,000 inhabitants, is perhaps one of the
United States’ most budding engines of economy, with a diverse set of global industry leaders leveraging its vast amount of modern facilities and dynamic local talent to facilitate major levels of success for their business. But it wasn’t always like this, and one of the main players in building up the city’s economic prowess is JAXUSA Partnership, a nonprofit division of the JAX Chamber founded back in 1990 with a complete focus on developing the city’s economy by attracting new businesses and helping local ones expand and grow even further. “Over the last 25 years, the city of Jacksonville has undergone an amazing evolution—one that
INDUSTRY TODAY 17
FEATURE JAXUSA PARTNERSHIP
About JAXUSA Partnership JAXUSA Partnership, a private, nonprofit division of the JAX Chamber, is Northeast Florida’s regional economic development initiative. Using strategic research and targeted marketing, JAXUSA focuses on recruiting new companies and expanding our existing business community. Economic development partners in Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns counties comprise the strong partnership that drives the business development process forward. JAXUSA works closely with the independent authorities— JAXPORT, JAA, JEA and JTA— to build infrastructure to ensure we have a sustainable business climate to offer companies. Talent is an integral part of the process, and our partnerships with CareerSource Northeast Florida and local colleges and universities help develop and attract a steady stream of skilled workers. The private-sector investors that fund our efforts make it possible to execute the objectives and strategies outlined for the region.
18 INDUSTRY TODAY
is still ongoing—and it’s been a pleasure to play a role in such and watch the city and its surrounding counties continuously elevate themselves to new levels of success,” says Jerry Mallot, president of JAXUSA Partnership and executive vice president of JAX Chamber.
FEATURE JAXUSA PARTNERSHIP
Covering seven counties (Baker County, Clay County, Duval County, Flagler County, Nassau County, Putnam County, and St. Johns County) in addition to, JAXUSA has spent the last One Spark, the world's crowdfunding festival, holds its After Dark party at the JAX Chamber.
25 years assisting the many businesses within this area build a much more dynamic economic environment. “As an organization, our specific goals change over time, but overall it’s our mission to drive business development, enrich the city’s identity, consistently attract talent, improve INDUSTRY TODAY 19
FEATURE JAXUSA PARTNERSHIP
20 INDUSTRY TODAY
FEATURE JAXUSA PARTNERSHIP
public policy, and facilitate entrepreneurial growth no matter the size of business,” Mallot says. While one can find an abundance of industry diversity in Jacksonville, he says there are specific sectors that their organization strategically targets to attract and grow. “When discussing our goals for the industrial makeup of the city, we want to make sure that everything is done purposefully and in line with what we feel are not only in the city’s best interests presently, but down the road in the future as well.” The industries that JAXUSA focuses on are Financial Services (including professional services), Health and Life Sciences (including health care technology), Logistics (including Supply Chain Management and IT), Aviation and Aerospace, Advanced Manufacturing, and Information Technology. “Amongst these industries we have seen an abundance of investment and growth over the years, but furthermore, when you look at their makeup, it’s evident that there is quite a bit of service crossover between them that really makes for the dynamic business environment we had originally hoped to cultivate.” However, what’s most impressive about Jacksonville’s diverse economic setting is that not only has it become a major hub for some of the world’s most impactful and influential industries with respect to the overall global market, but also the city’s ability and capacity to lure the biggest players within such sectors to come in and Production line at the Saft America facility. INDUSTRY TODAY 21
FEATURE JAXUSA PARTNERSHIP
Jerry Mallot As president of JAXUSA Partnership and executive vice president of JAX Chamber, Jerry oversees the strategy for economic development in Northeast Florida. He directs a staff of 14 in the areas of business development, marketing, business expansion, workforce development and business intelligence. Considered one of the top 50 economic developers in the country, Jerry focuses on the expansion and relocation of headquarters to the Jacksonville region and supports the team on larger projects.
22 INDUSTRY TODAY
FEATURE JAXUSA PARTNERSHIP
Gabrielle Bryan Gabrielle serves as the director of marketing. She has spent more than seven years marketing the Jacksonville region to corporate decision-makers and site consultants around the world. She also has worked with companies such as Deutsche Bank, Saft, Embraer, Web.com and Medtronic to promote their growth and expansion in the region. Her other responsibilities include social media, advertising and public relations. Pictured left: Downtown Jacksonville is a hub for business; below: Referred to as "America's Logistics Center," Jacksonville is at the intersection of all four major transportation routes: air, rail, road and port.
INDUSTRY TODAY 23
FEATURE JAXUSA PARTNERSHIP
establish major operations. Let’s look at a few examples, beginning with Deutsche Bank, the major German-based global banking and financial services company who chose Jacksonville over cities like New York and other major U.S. cities for what has now grown to a 2,100 employee plus operation. Then there’s Saft, the world’s largest manufacturer of lithium ion batteries who runs a $200 million facility 24 INDUSTRY TODAY
within the city’s Cecil Commerce Center. The city is also the U.S. headquarters for Adecco, the world’s largest staffing agency, and Healogics, the world’s most expansive provider and operator of serious wound care centers. Still haven’t heard enough? “Beyond that we are the location for major production centers run by Embraer and Northrop Grumman, and just this year wrapped up a $300 million deal with Johnson and
FEATURE JAXUSA PARTNERSHIP
Johnson for their vision care enterprise,” says Gabrielle Bryan, Director of Marketing for JAXUSA, who adds “Additionally, we were recently selected from crowded fields to serve as a location for both the prestigious Australian financial firm, Macquarie Group, and GE Oil and Gas.” It’s all there, and while many underestimate Jacksonville as a city and potential business location, it’s clear that those leading global industries
do not. And while investment continues to pour in from the outside, the city is also strengthening its foundation from the inside as well. Mallot points to local business leaders like Shad Khan, owner of the Jacksonville Jaguars, who recently pledged a billion dollars to revitalize the city’s downtown shipyards area, which will include new offices, shops, entertainment centers, and residential areas to create an even more lively and bustling environment. “Jacksonville is already a wonderful area to not only do business in but live as well, and the investments made by Mr. Shad Khan and others strengthen what we feel is a city that delivers on every level—from a talented local workforce to recruit from and a low cost of doing business, to an energetic downtown and overall high quality of life.” If the present day Jacksonville is exciting, the future is perhaps even brighter. “As previously stated, we are constantly looking for new ways to improve our city, and through our five-year strategic planning process between the Northeast Florida Regional Council and our regional chamber called Innovate Northeast Florida, we are continuing to see investment pour in from all over,” says Bryan. Mallot concludes that while the Jacksonville he knew 25 years ago is unrecognizable compared to today, with the city’s economy and growth of business exploding in recent years, it could very well continue it’s rapid evolution into one of the premium business destinations not only in the United States, but in the entire world. INDUSTRY TODAY 25
FEATURE IDC MANUFACTURING
M
anufacturers are dramatically changing the way they design, engineer, manufacture, and service products because of multiple factors - the increase in complex, “smarter”, connected products, unique, dynamic demand from customers, and highly competitive markets particularly in emerging 26 INDUSTRY TODAY
economies. Our ongoing discussions show that manufacturers want to unify their ideas, product data, quality information, service processes, and customer information so they may: • Accelerate the response time to demand; • Reduce development cycles; • Improve quality and service management.
FEATURE IDC MANUFACTURING
IDC MANUFACTURING INSIGHTS INNOVATION SURVEY: QUALITY, ANALYTICS, & MOBILITY TOP PRIORITIES Due to changes in the process from design to service, engineering and R&D teams work needs to broaden in scope — both from a capability standpoint and how these teams collaborate with their broader network of value chain participants that helps bring products to market and service them.
IDC Manufacturing Insights 2015 Product & Service Innovation Survey Given this backdrop, in the spring of 2015, we fielded a survey to determine current product and service innovation methods, practices, and plans. Our research revealed that the disciplines of PLM (Product Lifecycle Management) and SLM INDUSTRY TODAY 27
FEATURE IDC MANUFACTURING
(Service Lifecycle Management) are evolving to become strategic business initiatives for leading manufacturers, as market pressures and customer demands force companies to find better ways to bring quality products to market and deliver value-added services through them. Manufacturers are moving away from investing in standalone engineering and service workgroup tools, and toward more strategic initiatives like product innovation platforms and service transformation in the coming years. Technology is a key enabler for these transformations. Manufacturers increasingly are considering 3rd Platform technologies like mobile, cloud, and analytics to complement how they design, engineer, manufacture, and service products. Manufacturers are extending product life-cycle management across the enterprise and beyond to form product innovation platforms: to customers, marketing, and suppliers, as well as to manufacturing, whether in-house or outsourced. In fact, when asked what the “big vision” is for their PLM and SLM approach, the top answer overall was to be best in class for product innovation. Notably, brand-oriented manufacturers (e.g. apparel, consumer products, retail) and asset-oriented manufacturers (e.g. chemicals, metals, pulp & paper) are interested in extending the product innovation efforts beyond the traditional walls of engineering to incorporate partner and customer input, which is an important realization of true open product innovation. These value chain nuances are important to keep in mind as 28 INDUSTRY TODAY
FEATURE IDC MANUFACTURING
INDUSTRY TODAY 29
FEATURE IDC MANUFACTURING
manufacturers consider how to adapt their existing PLM and SLM practices to reflect the changing market dynamics.
Quality Tops the Priorities According to our research, product quality is the top PLM initiative by a wide margin (of course manufacturers also want to accelerate time to market and improve product introduction success, as well as gain a greater control of the product development process). Faster response to product quality issues and customer complaints is also the top SLM initiative, reflecting the desire to improve customer responsiveness as well as tie service data more tightly with PLM. Almost 60 percent of respondents answered that quality is a top business driver of their PLM and SLM
30 INDUSTRY TODAY
efforts. Furthermore, quality management is the top overall innovation process that manufacturers want to deploy in the cloud. Why is quality moving to the cloud? IDC Manufacturing Insights thinks this is primarily due to the fact that to achieve exceptional product quality, you need openness and speed in your quality processes. If you have a quality issue with your product, you want it surfaced and acted upon as quickly as possible whether via a customer, partner, engineering manager, or service technician. Deploying a quality management system in the cloud increases the ability of an organization to sense and quickly address a product issue to maintain high quality and customer satisfaction. Additionally, with the available processing power through a Hadoop
FEATURE IDC MANUFACTURING
Jeff Hojlo - Program Director As Program Director, Product Innovation, Jeff Hojlo leads IDC Manufacturing Insights research and analysis of the PLM market, including topics such as the development of an innovation platform and the intersection of product design, development, and digital manufacturing. Mr. Hojlo is also responsible for research on business and IT issues related to the engineering oriented value chain (EOVC), which includes automotive, aerospace & defense, industrial machinery, and heavy equipment manufacturers, as well as the technology oriented value chain (TOVC), which includes manufacturers in the electronics and semiconductor markets.
INDUSTRY TODAY 31
FEATURE IDC MANUFACTURING
framework in a cloud deployment, manufacturers are able to scale the management and analytics of massive amounts of data created by connected products, whether that information is quality, performance, usage, or service related. Simply put: quality is so critically important that manufacturers are choosing the deployment environment that expedites action.
Analytics & Mobile Technologies Drive Product & Service Innovation Quite interesting, according to our recent 2015 Product & Service Innovation survey, is that man32 INDUSTRY TODAY
ufacturers are interested in applying analytics to the later stages of the product life cycle and less to up-front ideation, supply chain risk analysis, and supplier performance review. The need for analytics, according to our survey data, is really on the handoff after design and engineering: product performance, customer support, manufacturing execution, and most importantly, quality, are the top areas manufacturers will apply analytics to for PLM and SLM improvement. Manufacturers today need a wider view of an extended value chain and development process, changing customer demand, and multi-tiered
FEATURE IDC MANUFACTURING
supply chains, as well as associated quality and service information. As manufacturers connect PLM with other enterprise systems to establish a product innovation platform, analytics becomes necessary to make proactive decisions on all relevant data about customers, suppliers, partners, and manufacturing that impact the new product development and introduction process. In addition, connected products will generate a large stream of data that can be analyzed and applied 34 INDUSTRY TODAY
to improve the quality of products and design new ones. Mobility has really come of age in the PLM and SLM worlds as our research indicates that it is no longer only used for process sign off or basic collaboration and communication among internal team members. One of the most interesting findings on mobility is that product design/formulation is the top area that mobile devices support (70 percent of respondents). Currently, design
FEATURE IDC MANUFACTURING
and formulation outside the company is not yet taking place via mobile devices, but when asked for plans in the next 12–24 months, half of the respondents say they will extend design and formulation to teams outside the company. For services, the application of mobility spans inside and outside the organization, with customer support (75 percent) and service requests (65 percent) the top 2 areas of focus. When asked for plans in this area over the next 12–24 months, the focus shifts to tracking quality issues, followed by field service enablement, including electronic service work instructions. Manufacturers are well on the path toward integrating mobile devices into the fabric of after-sales services to enhance customer experience and deliver better service. We think the maturity of mobility in product and service innovation can be looked at in three levels:
of the macrotrends outlined earlier — complex products, dynamic demand, competitive pressure — this development is to be expected, as manufacturers look for ways to respond quickly and efficiently; mobility is looked at as that high-speed bridge between product, manufacturing, service, customer, and back.
The Rapidly Maturing face of Innovation These are truly exciting times for manufacturers, users, and IT suppliers of product and service innovation technologies. The complexity is massive on so many fronts: product, value chain, manufacturing, and service. Technologies exist today to address this complexity but the challenge (and opportunity for IT suppliers and service providers) is integrating them together as
Mobility Maturity in Product & Service Innovation
Our research shows that we are rapidly entering phase 3 of this maturation, which is likely to accelerate usage and integration of PLM and SLM across the value chain. When you think
appropriate, providing an easy way for the user to manage, analyze, consume, and apply product and service information for innovation and competitive advantage. INDUSTRY TODAY 35
FEATURE AUTO SUPPLIERS
AUTO SUPPLIERS CAN
SEIZE NEW MANUFACTURING
OPPORTUNITIES IN MEXICO 36 INDUSTRY TODAY
FEATURE AUTO SUPPLIERS
Doug Donahue is Vice President of Business Development with Entrada Group, which guides foreign manufacturers in establishing and running their own cost-effective Mexican operations in order to enhance global competitiveness.
M
exico manufacturing has come a long way from the early days of simple product assembly in bare bones “maquiladoras” just over the U.S. border. Based on our experience from nearly two decades in
guiding foreign manufacturers in establishing and running their own Mexico production, the current level of foreign direct investment (FDI) into Mexico by global manufacturing powerhouses is unprecedented. More importantly for suppliers, INDUSTRY TODAY 37
FEATURE AUTO SUPPLIERS
that FDI also translates to opportunity for manufacturers with a physical presence in Mexico. By far, one of the leading sectors transforming the Mexican manufacturing landscape is the automotive industry. In recent years, Mexico has become an attractive hub for international automotive OEMs, which invested more than $31 billion dollars in establishing or expanding manufacturing plants in the country between 2000Cover image: Images courtesy of Leoni Cable, featured in Industry today™ 17.9; above:Images courtesy of Schaeffler. 38 INDUSTRY TODAY
2014, according to industry analyst group IHS Auto. Traditionally, lower labor costs and the ability to efficiently build their smaller models were the initial draws for industry juggernauts like Honda, General Motors and Nissan. While cost-effective labor remains appealing to foreign OEMs, a more recent attraction is Mexico’s overall operating costs, which are now roughly on par with costs in China, but with greater productivity, according to Boston Consulting Group. Some of that is due to ever-growing costs in China. But it is also about proximity, as Mex-
FEATURE AUTO SUPPLIERS
Mexico’s Benefits to Auto Suppliers The outlook for Mexican-based auto suppliers is strong, as more and more foreign OEMs establish in-country facilities and want to have their suppliers locate near their operations. The benefits that Mexico offers to auto manufacturers are clear: Cost-competitive labor, growth prospects thanks to an open-trade philosophy, reliable infrastructure, proximity to the US, a skilled/ technical workforce and a strong manufacturing heritage. Some fast facts about Mexico: • 8 out of the 10 auto OEMs have assembly plants in Mexico; • Mexico is the world’s sixth-largest manufacturer of auto parts, with an estimated $81.5 billion in 2014 sales; • Eighth among all nations in technology education with nearly 114,000 graduates per year in engineering, manufacturing and construction; • Predictions are that by 2018, automotive production will reach 4 million units; • Mexico’s strategic location roughly midway between Asia and Europe improves supply chain efficiencies; • 40 percent of North American auto manufacturing jobs are in Mexico. Sources: Promexico, AMIA (a Mexican automotive industry association).
ico affords easy access to the Canadian, U.S. and South American markets. Further, Mexico’s reach goes beyond the Americas. The nation has favorable trade agreements with 44 different countries, and is becoming a hub for international OEMs, particularly European manufacturers. Recently, Volkswagen announced it’s doubling the size of its Puebla operation, and BMW is putting its new plant in San
Luis, Potosi, for the 3 Series, with an estimated launch date of 2018.
Entering the Fray Many of the new automotive OEM plants in Mexico are scheduled to be online within two to three years in order to meet their vehicle launch targets, according to Daron Gifford, management consulting partner with Plante Moran. Therefore, INDUSTRY TODAY 39
FEATURE AUTO SUPPLIERS
OEMs are encouraging suppliers to setup their own Mexican operations. In Entrada’s recent podcast interview (available here for download) Gifford elaborated that, in order for automotive suppliers to be in production, they must have completed all of the necessary certifications, PPAP and APQP processes so their parts are ready when the vehicles begin rolling off the production line. The OEMs cannot 40 INDUSTRY TODAY
afford delays, as it is very expensive to miss those deadlines, Gifford added, and this is why many OEMs are urging, and in many cases pressuring, their suppliers to locate their manufacturing operations in Mexico too.
A New Level of Competition With so many international OEMs and large Tier One manufacturers establishing or expand-
FEATURE AUTO SUPPLIERS
have to change their output and focus, as each of the OEMs are somewhat different regarding what they expect from the supply chain. Gifford adds that this new competition also offers opportunities for North American suppliers, through their Mexican operations, to supply products and parts to those OEMs and Tier Ones also operating in Mexico. Even though Gifford makes a valid point that this new competition offers opportunities for North American suppliers to expand relations with international OEMs, we have seen the opposite starting to materialize. A much more assertive effort by the Europeans and Japanese suppliers is underway, where they are courting business opportunities with the OEMs and Tier Ones that traditionally U.S. suppliers handled. Pictured:Doug Donahue, Vice President of Business Development, Entrada Group.
ing operations in Mexico, the supplier landscape is diversifying and maturing. Where traditionally foreign suppliers had relationships primarily with OEMs from their own country, foreign suppliers in Mexico are now looking to supply to global players, regardless of origin, in an effort to maximize their return on investing in a Mexican manufacturing operation. In this new environment, suppliers are going to INDUSTRY TODAY 41
FEATURE AUTO SUPPLIERS
42 INDUSTRY TODAY
FEATURE AUTO SUPPLIERS
Establishing a Mexican Presence There are a number of options for setting up manufacturing operations in Mexico, regardless of industry. The challenge for a smaller supplier is the level of investment that its principals can carry. There are, however, options that reduce the capital requirement and reduce the risk to suppliers, according to Gifford. Shelter manufacturing, he added, is something that is growing in popularity, affording smaller- and mid-sized suppliers the opportunity to control more of the production and quality, as well providing access to resources, skills, and capabilities of the local market. This can be a very strategic way for suppliers to initially enter Mexico. Many small and midsize suppliers run into issues of financing when establishing their operations. This is primarily because when they bring their equipment or raw material into Mexico, banks no longer view it as collateral. The lending rules and practices hinder suppliers from being able to use those assets once they cross the border and put a lien against them. But there are strategies to overcome this is hurdle. Establishing a business relationship with a bank that has a Mexican presence can go a long way toward eliminating many of the financial roadblocks. The global banks that have established their own relationships in Mexico try to set up the lending operation through a local entity so they have access to the assets on that side. As with any loan, banks want to have assurance that suppliers operating in Mexico can repay the loan INDUSTRY TODAY 43
FEATURE AUTO SUPPLIERS
44 INDUSTRY TODAY
FEATURE AUTO SUPPLIERS
terms. But in the case of a default, banks need access to the assets themselves. This is where working with the regional arm of a global bank, or an experienced, in-country Mexican manufacturing partner like Entrada, can prove beneficial.
The Urgency of Mexico Supplier competition in Mexico is only going to grow over the next few years. For any supplier looking to expand into Mexico, putting the resources toward establishing operations in a timely Images courtesy of Air Design, featured in Industry today™ 17.3
and cost-effective manner is paramount, so that they can quickly scale up and add new clients, rather than just a single, beachhead client. Gifford advised that choosing the right partner, such as working with a manufacturing facility already in the country, can significantly help suppliers wishing to establish a turnkey Mexican manufacturing operation quickly and profitably without actually establishing a legal presence in the country, and without making many of the expenditures typically associated with such startups. Such partnerships also provide ongoing production support services, leaving suppliers free to focus fully on manufacturing their products. INDUSTRY TODAY 45
PROFILE • AIRBUS
46 INDUSTRY TODAY
AIRBUS • PROFILE
World-leading aviation company Airbus recently completed construction of a $600 million manufacturing facility in Mobile, Ala., sending a message to the U.S. that not only have they finally brought production to the world’s largest market, but that they’re here to stay. In what will involve a U.S. workforce building some of the latest, most-fuel efficient planes, Airbus is truly committing itself to “making” it in America. Steve Engelhardt reports on storied company looking to write its next chapter of success. INDUSTRY TODAY 47
PROFILE • AIRBUS
48 INDUSTRY TODAY
AIRBUS • PROFILE
n 2012, Airbus made an announcement that sent waves through the global aviation market. The multinational company, whose manufacturing presence already stretched across locations in France, Germany, Spain, and China, decided it would build and operate its first major production facility within the United States. Choosing the versatile city of Mobile, Ala. (more on that later), the decision communicated to many that Airbus, while already a well-established leader in the international market, was ready to elevate its position in what is the world’s largest and perhaps, most competitive market. Three years later, in an opening ceremony that featured a diverse crowd of business leaders, politicians, international diplomats, and newly
Pictured left: The first two aircraft in production are A321s destined for JetBlue (right) and American Airlines (left); Above: Dr. Ulrich Weber, Airbus’ Vice President & General Manager of Final Assembly Line, USA; On the cover: Airbus’ first commercial aircraft manufacturing facility in the U.S. is capable of producing A319, A320 and A321 aircraft.
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INDUSTRY TODAY 49
PROFILE • AIRBUS
trained employees in attendance, senior executives for Airbus cut the ribbon and in doing so, effectively launched Airbus’ full-time “citizenship” in the United States. “Construction of a strategic site like this in the United States is a big step forward for Airbus,” says Dr. Ulrich Weber, Airbus’ U.S. Vice President and General Manager of Final Assembly Line. Weber, who’s been with Airbus for 25 years now and previously headed up the 50 INDUSTRY TODAY
company’s Hamburg site, says that the Mobile location distinguished itself as the best option for them on a number of different levels.
The Mobile Advantage “We’re going to be manufacturing a highly-engineered, innovative series of aircraft here in the A320 family, and Mobile stood out as the perfect place to carry out such an operation,” Weber says. First, he points to the deep-water Port of Mobile,
AIRBUS • PROFILE
whose structural depth and close proximity to the facility allow for a high degree of logistical efficiency with respect to Airbus’ ability to smoothly ship and transport components coming in from Europe to the plant. Next is the actual airfield—Mobile’s Brookley Aeroplex—in which the 116-acre plant sits upon. Weber says because there is little commercial traffic crossing through the two runways running through the facility, not only are they uninhibited
in their operations and testing on the ground, but the available airspace above provides them with flexible options when it comes time to take to the skies as well. Finally, and perhaps most importantly in Pictured: Airbus CEO Fabrice Bregier and Ryane Dedeaux, Tool Shop Attendant, officially inaugurated operations with a ceremonial ‘Made in the U.S.A.’ sign on a component destined for the 1st aircraft. INDUSTRY TODAY 51
PROFILE • AIRBUS
Weber’s mind, is the manufacturing workforce in the surrounding area that Airbus has been to hire from and train over the last year and a half. “Recruitment began in early 2014, and although we laid out strict application requirements (five or more years of aviation experience needed), we had no problem quickly filling the positions,” he says adding, “Which speaks strongly to our 52 INDUSTRY TODAY
expectation of easily growing that number in the long term.” He says most employees, 30 percent of whom are military veterans, traveled to Germany to participate in training initiatives at the company’s facility in Hamburg, and while it was necessary for them to undergo an education of corporate guidelines and operational specifics, the inherent
AIRBUS • PROFILE
DID YOU KNOW? FACTS ABOUT THE A320 FAMILY • Every 7 hours, an A320 Family aircraft leaves one of Airbus’ four final assembly line locations in Germany, France, China, and now the U.S.; • Today’s A320s have an operational reliability of 99.7 percent; • The A320 Family has carried more than 10 billion passengers; • The thrust produced by A320 Family engines could keep six elephants stationary against the force of gravity; • At the end of its lifecycle, 85 percent of an A320 can be recycled by weight—a figure that will rise to 95 percent in the coming years; • An A320 Family aircraft takes off or lands every 2 seconds of every day; • Arranged from nose to tail, all A320 Family aircraft produced to date would form a line 200 kilometers (124 miles) long.
skill and experience displayed by them impressed many of their German counterparts. “More than 80 percent of our employees are from the Gulf Coast region, and while our employees are largely local to the area, we consider them to be a Pictured left: The Airbus manufacturing facility will be producing four aircraft a month by the end of 2017.
“More than 80 percent of our employees are from the Gulf Coast region, and while our employees are largely local to the area, we consider them to be a world-class workforce.” INDUSTRY TODAY 53
PROFILE • AIRBUS
“We’re going to be manufacturing a highly- engineered, innovative series of aircraft here in the A320 family, and Mobile stood out as the perfect place to carry out such an operation,” world-class workforce.”
Building on a Legacy Airbus will be manufacturing the A320 family (A319, A320, A321) of aircraft at its Mobile manufacturing facility, the world’s best-selling single-aisle aircraft series. In fact, the expanded introduction of them into the U.S. market is expected to increase the company’s share of the domestic market from its current position of 20 percent, to as high as 50 percent. “We expect most production to be tied to the A321 model, and have already begun production on three aircraft so far.” And while only a quarter of the plant is occupied as now—as expected—Weber says that with their latest market forecast predicting demand for some 4,700 single-aisle aircraft in North America over the next 20 years, he expects Mobile’s annual production to reach somewhere between 45 and 50 of such aircraft by 2018. It’s perfect timing for the company, because coinciding with this demand is Airbus’ planned integration of their A320neo (new Pictured: Airbus’ $600 million manufacturing facility sits on the Mobile Aeroplex at Brookley, seen here with Mobile’s skyline in the background. 54 INDUSTRY TODAY
engine option) into their Mobile facility in 2017. The A320neo represents the latest of many product upgrades that comes from the $340plus million Airbus invests annually into innovating the A320 family. The NEO incorporates many cutting-edge components, including latest generation engine choices—PurePower PW 1100G-JM from Pratt & Whitney and CFM International’s LEAP-1A—and large Sharklet wing-tip devices, which together deliver 15 percent fuel savings upon service entry. By 2020, the NEO will deliver a 20 percent fuel burn improvement per seat and an additional flight distance of 500 nautical miles, which translates to the ability to carry two tons more per payload at a given range. Additionally, the A320neo will provide a double-digit reduction in NOx emissions and reduced engine noise. Making the implementation of this technology that much easier into the Mobile facility, which currently only manufactures the A320ceo (current engine option), is the fact that A320neo versions will have over 95 percent airframe commonality with the A320ceo versions, allowing it fit seamlessly into existing A320 Family fleet. “The homogeny between the two will allow us to easily phase out the CEO and switch over the
AIRBUS • PROFILE
NEO in 2017, ” says Weber.
Everybody Wins Weber says that the overall adaptability afforded by the Mobile facility makes it unique from the rest of Airbus’ facilities around the world, as the logistics and workforce not only allow for the highest degree of operational efficiency, but the ability to be dynamic in what or how they’re manufacturing. It’s this capability that makes Airbus’ commitment to the U.S., and Mobile, Ala. specifically, so valuable. Consider the long-term presence of a company of its magnitude in a city like Mobile, whose population is just under 200,000, and it will undoubtedly lead to a trickle down effect
to the rest of the surrounding community and economy. Weber says that a number of suppliers have already planned expansions and investments into their businesses in response to the growth they’ve achieved from their partnership with Airbus, and with that comes a number of new jobs and opportunities for the area to continue to build off of. Airbus’ manufacturing facility in Mobile may be “new territory” in both a literal and figurative manner for them, but as one of the world’s most innovative, impactful, and influential aviation companies, its presence in the United States and the ensuing positive effect it will have on the local and national economy is something everyone should be excited about. INDUSTRY TODAY 55
PROFILE • DEL EQUIPMENT
A leader in the design and manufacture of custom/ standard dump truck bodies, and truck equipment up-fitting, Diesel Equipment Ltd. (DEL) has commanded a top spot in an ever-changing industry through velocity and an innovative spirit. Lorie Greenspan tells the story of a family enterprise that has withstood the test of time.
56 INDUSTRY TODAY
DEL EQUIPMENT • PROFILE
t was 1945 – immediately after World War II – when four friends got together to start a business. All members of the Royal Canadian Electrical and Mechanical Engineers (RCEME) the friends, Jack Martin, Vic Williams, Walter Sanderson, and Bill Tucker, wanted to build and
supply truck bodies and truck equipment based on what they believed was their own unique vision and penchant for solid design. And so, DEL (Diesel Equipment Limited) was born. DEL’s earlier days were as a Toronto-based service station, but through the years, it grew into INDUSTRY TODAY 57
PROFILE • DEL EQUIPMENT
AT A GLANCE:
and are certified under a National Safety Mark • DEL Equipment, Unicell; #901 by Transport Canada. “We’re driven by • Location: Toronto, Canada; seven up-fit lean manufacturing and process driven up-fitting locations in Canada; pneumatic division that follows industry standards and best practicin Buffalo, N.Y; • Workforce: More than 200; es,” said Marketing Specialist John Supnet. “DEL • Principles: DEL – Paul Martin; Unicell – Roger Toronto is the core manufacturing facility where Martin; standard bodies (dump bodies and custom bod• Product line: Dump truck bodies, as well ies) are designed and manufactured.” as custom/standard truck body and equipment; Although all DEL’s branches have manu• Website: www.delequipment.com. facturing capabilities, the company, he said, has centralized manufacturing to save on costs one of Canada’s biggest truck body builders and and streamlined the process of delivering up-fitters with seven up-fit locations in Canada, altogether employing more than 200 people Pictured top: DEL’s “JOB BOSS” Aluminum landscaper dump body; nationwide. middle: Swenson EV Spreader; All branches have full-line up-fitting capabilities below: Customer Engineered Hitch Pin Truck.
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58 INDUSTRY TODAY
DEL EQUIPMENT • PROFILE
“Our success is highly attributed to our ability to meet demands, shipping rail car loads nationwide.” -- John Supnet, director of marketing. manufactured products to the market. “This has allowed us to deliver a diverse offering of truck equipment with a focus on up-fitting cranes, hook lifts, snow and ice equipment, and dump bodies,” he said. Joining in that same heritage of manufacturing innovation is Unicell, producer of one-piece fiberglass van bodies. Together, and teaming through the years with other companies that would complement its portfolio, DEL and Unicell have won a sizeable portion of the vocational equipment market in Canada. Today both companies are still family owned by brothers Paul Martin, who runs DEL, and Roger Martin, who heads up Unicell.
Superior Truck Bodies DEL first embarked on the vocational truck industry in the 1960s and shortly after was recognized as one of Canada’s largest manufacturer of dump bodies, reports Supnet. “Our success was highly attributed to our ability to meet design and supply demands. This resulted in DEL’s dump body design to become ubiquitous and INDUSTRY TODAY 59
PROFILE • DEL EQUIPMENT
THE DEL LINEUP Delivering a premier line of custom/standard truck body and equipment to its various markets takes a team effort, so it’s a good thing that DEL has joined with a variety of leading manufacturers to bring quality to its customers. Among its lineup of brands and companies are: Swenson: Swenson began in 1937 as the Cherry Valley Pulverizer Company, founded by Eskil Swenson on his family farm on Mulford Road in rural northern Illinois, moving from there to Lindenwood, Ill. From 1939 to 1962, its primary product was the Swenson Chain Drive Spreader. In 1962, hydraulic drive systems started to appear on trucks and Swenson introduced its first hydraulic spreader. Over the next few years several new models were launched, with Swenson holding many of the original patents; the company grew into a leader in snow and ice control equipment for municipal, government and private markets. Swenson continues to manufacture in Lindenwood, using state-of-the-art engineering design software, and applying the latest technologies in manufacturing to its lines of dump bodies, V-box spreaders, tailgate spreaders, hydraulic systems and liquid application systems. Unicell: : Innovative and flexible, Unicell has successfully brought to market several ground breaking, “best in class” products. Its major products are truck bodies for Ford and General Motors trucks, and its basic models are the Aerocell, Aerocell SRW, Aerocell CW, the Servicell II, the ClassiCube, and the Dry Freight. The company builds an almost unlimited number of custom variations to these basic products. Effer: A leader in lift equipment, the company’s name comes from the Latin effero, or “lift,” reflecting Effer’s mission to design and build high quality machines for lifting both objects and people, for applications that include roofing, heavy loads, construction. SwapLoader: SwapLoader is committed to innovation with its patented Adjustable Rotating Jib option. In October of 2005, the company introduced the SL-180 with the optional dual hook height (Adjustable Rotating Jib), the first of its kind in the industry. Building off the success of this model, the company has continued expanding this product feature to include the SL-185, SL-220, SL-222, SL-330, SL-400 and SL-406. These product enhancements offer customers the greatest flexibility and versatility in the industry.
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DEL EQUIPMENT • PROFILE
stand the test of time as the standard in today’s light duty dump body market,” he said DEL’s vision, Supnet said, is to deliver a superior truck body up-fitting brand experience for every customer, every time, in the company’s markets across Canada. “We do this by delivering superior products and services of exceptional value so our customers experience ‘Toughness you can trust™’— we are Canada’s premier truck body up-fitter and advisor.” In recent years, DEL has evolved its company objectives to emphasize its place in the market as the preferred supplier and manufacturer of premier truck equipment and accessories in the vocational truck market. “We plan on achieving this by delivering a superior brand experience INDUSTRY TODAY 61
PROFILE • DEL EQUIPMENT
“We are Canada’s premier truck body up-fitter and advisor.” -- John Supnet, director of marketing. JERR-DAN 50/60 TON ROTATOR WITH JFB BODY THE JFB BODY SERIES WORKS HARDER AND LASTS LONGER
SWENSON Swenson Provides APB Spreaders to Canada’s Biggest Municipality Toronto ranks fourth as the most populous municipality in North America. With more than three million people, traffic and congestion can really add up. Add snow and ice to the mix, and commuting becomes a nightmare.
Its extra-rugged, non-corrosive exterior is made of weather-tight, impact-resistant polypropylene making it more durable and longer lasting.
Recently, the City of Toronto and DEL Equipment came together to spec eight trucks fitted with Swenson all-purpose spreader bodies. The process required Swenson to create an innovative product that would meet their application needs.
For more information visit jerrdan.com
The final product was a 13-foot APB Combination Dump Body/Spreader, with 500 on-board liquid capacity. The high-strength, abrasion-resistant steel body was designed to hold up to 14 cubic yards of dry material, and has front discharge on both the passenger and driver sides. The telescopic hoist and air-operated tailgate ensure fast emptying. Custom lighting and strobe packages ensure functionality and safety.
An Oshkosh Corporation Company. The Jerr-Dan name and Jerr-Dan logo are registered trademarks of Oshkosh Corporation, ©2015 Jerr-Dan Corporation.
The trucks are set to be delivered in the fourth quarter of 2015 by DEL Equipment.
It features roll-up aluminum doors for swifter access to equipment, strategically placed LED lighting for improved visibility and specialty storage solutions to ensure every tool has its place. The JFB Body Series is available for standard and twin steer chassis.
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DEL EQUIPMENT • PROFILE
SOLUTIONS FOR INDUSTRY In April of 2013, DEL Equipment up-fitted a Freightliner chassis with a 12-foot dumping deck and a knuckle boom crane from EFFER for Forest Glenn Tree Care Inc. Forest Glenn, like many others in the industry, sought out DEL for specialized equipment that would allow them to be more productive without sacrificing safety. DEL provided an up-fit package that would maximize performance, maintain safety and provide Forest Glenn with a competitive advantage. The custom designed EFFER 655-6S+JIB 6S, is one of the largest knuckle boom cranes of its kind to ever be implemented into the Ontario arborists community. Capable of extending over 100 feet in the air while lifting more than 1000 pounds, the EFFER 655 is perfect for arborists trying to lift big loads while reaching for greater heights. The precision, power, and versatility has allowed Forest Glenn to be more efficient with tree removals resulting in cost savings.
through exceptional products, service, and truck equipment advisory,” Supnet said. From basic truck bodies to highly engineered solutions, DEL has extensive product offerings that cover a multitude of markets. “What sets us apart is our advisory approach,” Supnet said. “We work with the customer, the operator, the financing, the fleet manager to determine specific needs and ensure that their required application is met. Whether it’s helping a customer procure Pictured left: Effer Crane and Contractor dump body package.
a vehicle, finding them leasing or financing, or making sure that the application they require is both functional and safe, DEL aims to deliver a superior brand experience.”
Known For Dump Bodies Dump bodies was the first product line DEL introduced to the market in the 1960s and has since gained the company national recognition. “We were one of the first adopters for manufacturing this type of body – we sent them as rail car loads from Halifax to Vancouver,” Supnet said. INDUSTRY TODAY 63
PROFILE • DEL EQUIPMENT
“That’s what we are most known for. Over the years we have grown and have become known for our versatility and creativity in providing one-stop shopping and turnkey solutions. We deliver solutions that are driven by market spe64 INDUSTRY TODAY
cific applications and accommodate the customers’ needs and wants.” DEL, he said, has gone from a body builder to full-line truck equipment up-fitter able to deliver complex, highly engineered products
DEL EQUIPMENT • PROFILE
left: The largest crane integrated into the Ontario Arborist market.
body, the DEL Job Boss, was designed and engineered with the landscape and construction industry in mind, and has become the standard among landscape and construction contractors: It is the must-have truck body for their fleets. To keep up with the versatility of landscape contractors, DEL also offers a variety of truck mounted equipment that allows customers to remain competitive or gain an advantage in their industries.
Solutions Driven
from cranes, snow and ice equipment, and railway truck equipment, using trucks delivered from top auto manufacturers, including Ford, General Motors and Dodge. For example, the company’s landscaper dump
“We offer solutions driven by the market,” Supnet said. “We are very accommodating and able to deliver complex and highly engineered products.” He added, “We have a different approach; we try to go above and beyond and deliver something more premier. We work with customers and set targets, goals based on what they want.” Surviving into this century has taken a lot of effort on the part of DEL not to become stagnant; among its mantras is to strive for continuous improvement. “DEL is not the same company that we were in 10 years, 20 years, 30 years ago,” Supnet said. “DEL has lasted as long as it has because of the commitment to the company’s growth and the people that it employs. We are driven by innovation and fostering an environment that encourages creativity and inspires people to make a difference.” INDUSTRY TODAY 65
PROFILE • WHITEHALL INDUSTRIES
Whitehall Industries, a longtime industry leader in the manufacture of automotive sunroofs, has expanded its core business to provide aluminum extrusions used in automotive structural components. David Soyka reports on this company’s tremendous growth in supplying components essential to achieve ever-stringent regulatory requirements to make vehicles lighter in order to achieve higher fuel consumption efficiencies. hat’s fueling growth in the automotive industry these days isn’t petroleum (though no one is complaining about the low price at the pump), but another commodity—aluminum. CAFÉ (Corporate Average Fuel Economy) standards by 2025 are set to rise to a 54.5 average for cars and trucks. How are automakers going to achieve that? “The lighter you can make the car, the more fuel efficient it is. Regardless of whether the powertrain is conventional gas, electric or hybrid, 66 INDUSTRY TODAY
WHITEHALL INDUSTRIES • PROFILE
INDUSTRY TODAY 67
PROFILE • WHITEHALL INDUSTRIES
Whitehall Industries is widely known throughout the automotive industry as a ‘can do” company.
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WHITEHALL INDUSTRIES • PROFILE
Last year, Whitehall Industries racked up $86 million in sales; this year it’s up to $118 million and next year expects to hit $136 million. using aluminum in the vehicle’s structure wherever possible significantly reduces weight,” notes Yogendra N. (Yogen) Rahangdale, CEO and owner of Whitehall Industries, a precision aluminum extrusion manufacturer of automotive parts and componentry. “Over the next five years we expect to see a 40 percent growth in the use of extruded aluminum in a vehicle. It’s a big opportunity.” He should know. Last year, Whitehall Industries racked up $86 million in sales; this year it’s up to $118 million and next year expects to hit $136 million. Not bad for a company that before Rahangdale acquired it in 2010 was pretty much battered by the economic downturn and general woes of the auto industry at the time. Rahangdale saw the problem as a case of underutilized capacity and need for more efficient work processes. Investment in new equipment and institution of lean manufacturing and kaizen continuous improvement practices Pictured left: Official grand opening/ribbon cutting at Whitehall Industries Paducah Kentucky facility in June; right: Chad Hawkins, Manufacturing Engineering Manager showing visitors one of the many parts produced at the Paducah, KY facility. INDUSTRY TODAY 69
PROFILE • WHITEHALL INDUSTRIES
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WHITEHALL INDUSTRIES • PROFILE
EXECUTIVE PROFILE CEO Rahangdale previously held various key leadership positions with American Axle & Manufacturing (AAM), Chrysler Corporation, and Volkswagen. He began his career at Bhilai Steel in India as an engineer. During a more than 40 year career, he has managed multi-billion dollar budgets and implemented worldwide manufacturing policies and operations. He also introduced a number of “world-first” innovations, including a sludge drying system to reduce VOCs (volatile organic compounds) and powder ant-chip technologies. Rahangdale holds an MBA from Michigan State, is a member of the Board of Directors of the Engineering Society of Detroit and the Oakland Advisory Board for the School of Engineering and Computer Science. Whitehall Industries originally made precision components for the copier industry. It was founded in 1974 and named after the city where it originally operated, Whitehall, Mich. It eventually transitioned to extruding high tolerance aluminum profiles. Like many automotive suppliers, it ran into tough times during the recession of 2009. Rahangdale acquired the company in May 2010 and led the company’s turnaround and expansion into new markets.
at it to consider both what is the most efficient design and what is the most efficient way to make it,” Rahangdale explains. “The trick in many cases is that you’re dealing with a light metal that also needs to be very strong, particularly when you’re dealing with component structures that protect passengers. We partner with our aluminum suppliers to develop the alloys that have the right mixture of high-strength and low-weight that can best fit the particular application.” He adds, “Our focus is in the design and engineering of aluminum-extruded parts through Added Value Engineering Whitehall makes both built-to-order and engi- value engineering and up-front engineering neers custom designs. “Typically, the OEMs provide us with their specs, and then we look 8” -2700T SMS Front Loading Extrusion Press with restored the luster to Whitehall’s core business of aluminum extruded rails for sunroof tracks, luggage racks, convertible tops and frame support components. Once that business was back on track, Whitehall expanded to provide a range of high tolerance aluminum structural components for its automotive customers. One significant customer is Telsa, maker of premium electric vehicles, which shares Whitehall’s passion for innovation and creative application of high technology to address modern-day challenges.
a water quenching cooling system.
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PROFILE • WHITEHALL INDUSTRIES
Designers and Manufacturers of Precision Tooling, Fixtures, Gages and Custom Machinery.
VESCO OIL CORPORATION SALUTES
WHITEHALL INDUSTRIES Thank you for your industry leadership and best wishes for continued success.
Vesco Oil Corporation 16055 West 12 Mile Road, Southfield, MI 48076 Ph: (248) 557-1600 / Fax: (248) 557-2236 www.vescooil.com
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Proud Partners with Whitehall Industries. Congratulations on your continued success!
Emerald Tool Inc. | 6305 Norton Center Drive | Norton Shores, MI 49441 Ph: 231.799.9193 | Fax: 231.799.9209 | www.emeraldtool.net
WHITEHALL INDUSTRIES • PROFILE
In operation for nearly 40 years and ISO9001: 2000 certified since 2000, Michigan Automotive Bending has the experience and precision of craft to handle any automotive OEM’s tool and bending needs! Michigan Automotive Bending 1700 E. 14 Mile, Madison Heights MI 48071 p. 248 528 1150 / f. 248 528 1134 info@miautobend.com / www.miautobend.com
support to create optimal results in the end product. We employ more than 25 engineers in a range of specialized disciplines to accomplish this. Plus, we work with our customers to eliminate design flaws prior to production. This removes delays caused by last-minute revisions. Coupled with our lean manufacturing and other continuous improvement practices, such as on-demand delivery, we provide timely and cost-effective products. Our competitive differentiator is we are known throughout the automotive industry as a ‘can do’ company.” Pictured left: Extrusion dies and extrusion profile examples; right:Grand Opening Tour of the Paducah Kentucky facility.
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PROFILE • WHITEHALL INDUSTRIES
Can Do Culture A large part of that ability Rahangdale attributes to the some 750 employees of Whitehall. “Our culture here is to always look where we can add value and how we can get things done in better ways that exceed customer expectations,” he says. “Of course, there is increasing demand in the 74 INDUSTRY TODAY
industry for the kind of products we make. But no company is going to steadily grow as we have over the years without the people committed to properly meeting that demand.” Whitehall is TS 16949 and ISO9001 certified and currently maintains a total of four manufacturing plants. Two operate at its home base in
WHITEHALL INDUSTRIES • PROFILE
Given the industry’s increasing demand for aluminum components, Whitehall is considering future expansion perhaps in the western part of the country, as well as in Asia. “Like other commodities in the current markets, the price of aluminum remains stable,” Rahangdale. “So it’s not the case where increasing demand is raising prices or there is any scarcity of material. Plus, it’s easily recyclable, so it has ‘green’ bona fides. Even without the need to make lighter components, aluminum is a highly affordable metal.”
Continuous Improvement
Ludington, Mich.—a 135,000 square-foot extrusion fabrication plant and a 74,000 square-foot fabrication plant. Another 43,000 square-foot plant runs in San Miguel, Mexico. The fourth recently opened in Paducah, Ken. The $13 million production plant created 150 new jobs for the commonwealth.
“We continue to invest in our facilities, our processes and our people to make the best possible products,” Rahangdale says. “There’s a wealth of opportunities for us. Even in our basic business of sunroof racks, there’s now a trend for panoramic roofs that are huge. You don’t have these small openings anymore, it takes up most of the roof, now. So, there’s who new generation of sunroof tracks to be designed and fabricated.” He adds, “We continue to look at opportunities where we can apply our engineering and design expertise coupled with our one-source manufacturing capabilities to provide solutions employed aluminum-extruded parts to the automotive industry. We are a unique company that offers customers a single source to design, prototype, fabricate and assemble and precision components with specifics from, fit and function. Whatever kind of aluminum structural component an OEM needs, we can make it.” INDUSTRY TODAY 75
PROFILE • M&M REFRIGERATION
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M&M REFRIGERATION • PROFILE
Cubes of ice harvested from frozen lakes once sufficed as refrigeration technology, but in the last 45 years, one company in particular has advanced the industry into the digital age, in particular through its unique Co2 Cascade system that none can imitate. The company, M&M Refrigeration, controls its systems as it controls the market, freezing everything from food to dirt. Lorie Greenspan tells the Maryland company’s story. &M: From a van to state-of-the-art. Duffy McConnell founded M&M Refrigeration in 1969, having previously worked in construction as a member of the Seabees during two tours in Vietnam, gaining
expertise in both the electrical and refrigeration trades. After he left the service, McConnell drove home to Maryland from California, bought a used van and went to work for farmers. Today the company offers both cutting edge INDUSTRY TODAY 77
PROFILE • M&M REFRIGERATION
AT A GLANCE: • Company: M&M Refrigeration LLC; • Headquarters: 412 Railroad Avenue, Federalsburg, Md.; • President and Founder: Duffy McConnell; • Products: Carbon dioxide and ammonia (Cascade CO2 NH3) system; screw compressor and reciprocating compressor packages; pressure vessels ; • Plant size: 160,000 square feet; • Employees: 100; • Website: www.mmrefrigeration.com; • Phone: 410-754-8005.
digital control networking for its customers’ most advanced refrigeration systems and freeze technology through its innovative Carbon Dioxide and Ammonia (Cascade CO2/NH3) system,
reducing their clients’ electric utility costs and carbon footprint while also reducing the pounds of ammonia necessary for the freezing process. Most importantly, it can freeze almost anything, from food to rocket fuel for transport into space, or return melted permafrost to its frozen state for northern mining operations. From that original van, the company expanded into a 160,000-square-foot manufacturing plant and corporate offices spread over 10 acres in Federalsburg, Md. Expansions completed in 2002 added another 7,000 square feet of production area for the assembly of reciprocating compressor packages and chiller packages, a state-of-the-art paint room that can accommodate skid packages up to 50 feet in length, and
Established in 2011, Allied Electrical Contractors is a Nevada-based, full-service electrical contracting company. Owned and operated by Dan VonDollen, a 3rd generation electrical contractor, AEC today is considered as one of the leading specialists in the refrigeration electrical industry. Our in-depth partnership with M&M Systems/M&M Refrigeration over the years has seen us deliver solutions all over the United States, with customers experiencing minimal downtime and enjoying the long- lasting, safe, and organized method of installation that we bring to each and every project.
Our quality defines us, and is one of the primary reasons we have experienced such rapid growth over the last five years. We are excited to continue to deliver such solutions to M&M Refrigeration and others, and look forward to working with you in the future.
For any inquiries or additional information, feel free to contact us at 402-916-4700 or by email at Katie.aec@outlook.com (Office) or Dan.aec@outlook.com (Owner). You can also visit us online at www.alliedelectricalcontractors.net.
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M&M REFRIGERATION • PROFILE
an additional 15,000 square feet of warehouse. This growth has complemented the company’s expansion from regional service provider to the foremost international manufacturer of industrial refrigeration equipment and controls. Along with the Maryland site, the company maintains two additional locations. Its controls division, M&M Systems, is in Ormond Beach, Fla. That facility has more than 10,000 square feet of office, manufacturing, assembly and warehouse area located on twoPictured on the cover: Cascade CO2/NH3 refrigeration machinery room designed with equipment furnished by M&M Refrigeration; above: Cascade CO2 skid package.
plus acres in the Ormond Airport Industrial Park. Meanwhile, its service and rebuild center, located in Montgomery, Ala., has 7,000 square feet of office, service and warehouse space. It is equipped to handle compressor rebuilds, field service support, parts sales and a variety of maintenance services. EVAPCO FOR LIFE. EVAPCO is more than a name. It’s a pledge to be the team you can count on for life. It’s why we go further than anyone else to guarantee performance and create groundbreaking solutions to industry-wide challenges. It’s also a pledge to the people that you serve—a pledge to do everything we can to make everyday life easier, more comfortable, more reliable. And it’s a pledge we make to our people—to be the best company to work for—which is why we have the most experienced team of engineers and craftsman working in the industry today. We are EVAPCO, and we are the men and women you can count on for life.
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PROFILE • M&M REFRIGERATION
HEADS IN THE CLOUD With the next generation of computing and data storage in Cloud technology, M&M Refrigeration and its customers have the ability to tap into a vast amount of computational and information technology resources at a second’s notice. It is a complicated network of disciplines and systems that refrigerated facility owners, managers and operators navigate in order to keep things cold and move product – and what M&M offers is the chance to keep it all controlled and managed by addressing two major costs: labor and power consumption. M&M Refrigeration has responded to this need with the development of its Energy Initiative (EI) Dashboard, a Cloud-based monitoring and alert system that promotes better power and facility management by consolidating information from multiple locations into a common platform accessible through a standard web browser. From a Global View screen, owners and managers can view costs, power usage, specific energy consumption, ambient conditions, which facility is best – or worst – and which are meeting their efficiency targets – or not. The design and development of the EI Dashboard continues to evolve, with the company’s next steps to enhance historical prediction algorithms, expand the facility page to include detailed alarm and refrigerant leak detection information and continue to expand the global alert system.
Calibration Technologies cherishes its strong and long-standing relationship with M&M REFRIGERATION as their supplier of refrigerant leak detectors. Specialists for over 30 years in innovative safety-system solutions for cold storage facilities, food processing areas, refrigeration systems, compressor rooms, tank rooms, heat treatment facilities, breweries, refineries and more. Contact one of our application engineers today and let us assist you with your application.
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M&M REFRIGERATION • PROFILE
M&M also offers the largest selection of screw compressor and reciprocating compressor packages in the world, pressure vessels of all sizes and configurations, chiller packages, skid-mounted refrigeration packages, and microprocessor equipment controllers and system controls. M&M also offers forced and induced draft evaporative condensers; steel, stainless steel and copper evaporator coils; rooftop critical process air systems; and open or closed circuit cooling towers; along with a complete line of refrigeration components and services.
More Than Just Controls
technological advances in the systems themselves. Specifically, M&M’s innovative Carbon Dioxide and Ammonia (Cascade CO2/NH3) system. “M&M has been an innovator in the industry,” said M&M’s CEO, Duane Marshall. “The buzz today is reducing the amount of ammonia. We were one of the first companies to implement the CO2 Cascade system in the United States, an environmentally friendly system that reduces power consumption. Today, we have more CO2 installations in North and Central America and the Caribbean than any other company, making us the most experienced CO2 company around.” With the phasing out of Freon in the United
The refrigeration industry may have entered the Pictured: Cascade CO2 machinery room, CO2 computer age, but M&M led the way with its reciprocating compressors in forefront. INDUSTRY TODAY 81
PROFILE • M&M REFRIGERATION
Smarter
than the average air. Why do industry leaders like M&M Refrigeration choose SST-B Series Evaporators from EVAPCO? Because they know our evaporators are AHRI certified to perform based on air temperature entering the coil—NOT average or median air temperature. That means colder room temperatures without excessive run times—and that makes perfect cents. Learn more at evapco.com.
for LIFE
Commercial HVAC | Process Cooling | Industrial Refrigeration | Power
CONGRATULATIONS to our valued customer, M&M Refrigeration, for your well-deserved recognition by Industry Today. 82 INDUSTRY TODAY
M&M REFRIGERATION • PROFILE
“Everybody claims to believe in customer service, but M&M delivers to a fault. We will support a job long after we should.” CEO Duane Marshall. States, manufacturers first turned to ammonia as a replacement refrigerant. However, ammonia has its own problems: if released, it is toxic to humans in high concentrations, and the distinctive smell can permeate certain foodstuffs, contaminating them. “Imagine a spill and 50,000 pounds of ammonia letting go,” said Marshall. “No one wants a large ammonia system in their backyard.” As a toxic substance, ammonia is highly regulated in the United States by the Environmental Protection Agency. Manufacturers began to look
for another, less risky, alternative. The trend toward using CO2 began in Europe, which is where M&M discovered it. The company then came up with its own CO2 Cascade system. This premier system has been able to “dramatically reduce the ammonia needed for refrigeration down to 10 to 20 percent,” explains Ole Christensen, M&M’s vice president of engineering. “If you’re using 40,000 pounds of ammonia, and can drop to 4,000 to 8,000 Pictured left: M&M Refrigeration Chiller Package.
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PROFILE • M&M REFRIGERATION
NO MATTER THE SIZE OF YOUR SHIPMENT. NO MATTER WHERE IT NEEDS TO GO.
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M&M REFRIGERATION • PROFILE
WHY THE M&M CO2 CASCADE SYSTEM? HOW DOES A 28.7 IMPROVEMENT IN EFFICIENCY SOUND? The application of Cascade Carbon Dioxide and Ammonia (Cascade CO2/NH3) refrigerating systems has been gaining popularity in North America the past number of years, especially for companies whose temperature requirements are below -4°F and there is considerable room and or blast freezing requirements. Why? Because the system offered by M&M contributes to cost savings in the following areas: • Smaller low stage compressors; • Smaller low temperature suction piping, valves, and liquid separating vessels; • Less piping and vessel insulation; • Lower refrigerant (CO2) costs. In a comprehensive study, after five months of monitored operation, the comparison of the Cascade CO2/NH3 refrigerating system efficiency to the efficiency calculated for the conventional two-stage ammonia system indicated that the Cascade CO2/NH3 combined (-58°F and -20°F suction groups) efficiency showed a 28.7 percent improvement compared to the conventional ammonia system. Moreover, the Cascade CO2/NH3 system showed a 5.8 percent overall efficiency improvement over the conventional Ammonia system. Such a high rate of efficiency deserves attention.
pounds, that’s significant.” Charles Toogood, M&M’s vice president of business development, relates his own experience while working at another company that specialized in refrigeration warehousing. “Many areas in which we built refrigerated warehouses were excited to have the business in town, but when they found out the facility could have 30,000HERMETIC PUMPS Hermetic Pumps is a global leader in the design and production of hermetically sealed centrifugal pumps. Known for their commitment to quality, the company offers a wide range of pump products that includes canned motor and magnetics drive pumps, as well as vacuum and positive displacement pumps.
50,000 pounds of ammonia, they changed their tune,” he said. “At that time I was looking for an alternative to ammonia,” he continued. “I heard about what they were doing in Europe and that CO2 was used fairly consistently there, and then I learned about M&M and began researching the CO2 system. M&M met me in Europe and we toured a facility that Ole built, and I came back here, convinced this was a viable alternative. I had a lot of confidence in M&M, even though everyone I knew told me it wouldn’t work.” Not only did it work, Toogood added, “but it INDUSTRY TODAY 85
PROFILE • M&M REFRIGERATION
“An extensive study conducted by a third party has shown to see savings of 5 to 7 percent annually for a Cascade CO2 / NH3 Refrigeration system, compared to a conventional two-stage Ammonia system. That’s when you’re impacting your bottom line.”Vice President Business Development Charles Toogood
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M&M REFRIGERATION • PROFILE
economized ammonia refrigeration system.
Head in the Cloud
proved to be more efficient than the ammonia system we operated, about 5 to 7 percent more efficient. “An extensive study conducted by a third party has shown savings of 5 to 7 percent annually for a Cascade CO2 /NH3 Refrigeration system, compared to a conventional two-stage Ammonia system. That’s when you’re impacting your bottom line.” The next innovation, the company asserts, will be for M&M to offer a refrigeration system that eliminates the use of ammonia altogether, although M&M will continue to offer customers complete ammonia systems; it just depends on the size and scope of the project. If the company doesn’t require storage temperatures below 0°F to -4°F (-17.8°C to -20°C), there is no blast freezing involved, and there are minimal room freezing requirements, the company maintains the most cost effective and efficient refrigerating system, assuming no restrictions on the use of ammonia, is still a single stage and single stage Pictured left: M&M Refrigeration ASME Vessel Shop, Federalsburg, MD.
You could keep yourself up all night worrying about your refrigeration system or you could stay connected via M&M Refrigeration’s cloud based Energy Initiate (EI) Dashboard and their advanced control system. These products give you access to your system via the internet from anywhere in the world. It’s up to you, but M&M doesn’t see why you should waste a good night’s sleep when you could put the controls in your own hands – and theirs. While mechanical refrigeration hasn’t changed dramatically over the years, M&M founder, Duffy McConnell, said digitization in the form of controls has altered the refrigeration universe. “It used to be you turned a valve manually – now it’s done over a computer,” he explains. The experts at M&M will be the first to tell BALTIMORE AIRCOIL Baltimore Aircoil Company (BAC) is the world leader in the design and manufacture of evaporative cooling and heat transfer equipment. Founded in 1938, BAC offers the broadest range of evaporative heat transfer products in the industry. Products and services include open cooling towers, closed circuit cooling towers, evaporative condensers, and ice thermal storage equipment. In an ever-evolving global market, leading the charge is the most direct route to success. BAC is 100 percent committed to innovation in new technology, making smart, forward thinking investments, and continuing to expand our global footprint. From employees to partners every action at BAC centers on you, the customer. From application to installation to aftermarket needs, whether you are working with BAC Representatives, product literature, or accessing our website, BAC stands ready to meet your needs. Headquartered in Baltimore, MD, BAC has manufacturing capabilities worldwide. For more information about BAC, visit www.BaltimoreAircoil.com or contact us at 800.I.LUV. NH3.
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PROFILE • M&M REFRIGERATION
you that the complex refrigeration systems they work with require advanced controls. In this arena, M&M leads the pack with a Cloud-based system that allows the user/operator to monitor various facets of the system – from usage and cost to performance and monitoring – all from the convenience of an iPhone, whether you are onsite or off. “One customer with 100 locations can view status of all facilities on a single display screen - it Pictured above: Ammonia Refrigeration Machinery Room w/Existing Full PLC System Controls retrofit with M&M Control System. System Cost w/ Installation = $510,000; Monthly Power Savings = $34,700; Payback with No Power Company Rebate = 14.7 Months; Payback with Power Company Rebate = 7.8 Months; right: M&M Systems-Controls Division, Ormond, Beach, FL.
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allows the customer to monitor facilities in realtime and reduce utility costs,” Toogood said. “Because we can remotely monitor, we can solve problems by bringing their system up in our control room and making recommendations/ adjustments. We’re the only ones who have this capability.” With the next generation of computing and data storage in Cloud technology, M&M and its customers have the ability to tap into a vast array of computational and information technology resources at a second’s notice. M&M offers customers the ability to manage all this data by addressing two major costs: labor and power consumption. M&M Refrigeration developed its Energy Initiative (EI) Dashboard as a Cloud-based monitoring and alert system. EI promotes better
M&M REFRIGERATION • PROFILE
power and facility management by consolidating information from multiple locations into a common platform, accessible through a standard web browser. From a “Global View” screen, owners and managers can view costs, power usage, specific energy consumption, ambient conditions, which facility is best – or worst – and which are meeting their efficiency targets – or not. The design and development of the EI Dashboard continues to evolve. The latest additions have been to include detailed alarm information and refrigerant leak detection information. The company’s next steps will enhance historical prediction algorithms, expand the facility page to include historical ambient conditions and continue to expand the global alert system.
More to Offer As the scope of the company’s international work grows (currently comprising 30 to 40 percent of business), M&M has maintained its focus on being a high-quality equipment provider. Superior customer service is a part of that business acumen; as proof, the company still supports the first control system it installed for a customer 27 years ago. “Everybody claims to believe in customer service, but M&M delivers service 24 hours a day, and we’re still supporting the first control system we ever installed.” The company will even service systems with which they weren’t initially involved, regardless of refrigerant, installer or
manufacturer. Another plus for customers who partner with M&M: the company designs, builds and installs all of its own equipment. Most manufacturers do not. In addition, M&M stocks a massive inventory, totaling more than 6,000 different parts, from bare block compressors, couplings and pumps to electrical controls, valves and all types of compressor oil. One unusual product offering from M&M is a specifically designed and built, self-contained and totally portable chilling system for the purpose of ground freezing. An emerging demographic for this technology in mining, due to climate change and the disappearance of permafrost. “Imagine a mine on permafrost that is no longer permafrost,” Christensen said. M&M’s technology enables the mine to continue operations. “We can freeze ground 3,000 feet down and more to help companies when they build new mine shafts, to avoid water coming in and prevent the shaft from collapsing,” Christensen said. The technology can also go into space, freezing rocket fuel to -40°F. INDUSTRY TODAY 89
PROFILE • CRAIG TECHNOLOGIES
Cape Canaveral is the space hub of Florida, where Craig Technologies operates in a 160,000-square-foot facility with 2,000 pieces of equipment engineered to deliver space-age technologies in combination with old-fashioned quality and customer service. Anticipated to triple in size over the next five years, the company’s expansion will take humans where they have never gone before. Lorie Greenspan reports.
ith concentrations ranging from avionics, specialty manufacturing, testing and evaluation to precision machining and fabrication, Craig Technologies in Cape Canaveral, Fla., has a 15-year lifespan that employs decades of expertise in aerospace software development, engineering and technology. Founded by Carol Craig, the women-owned business has contracted with NASA on a number of programs and continues to vie for work that is both space- and earth-based. Craig, with a background in engineering, worked as naval flight officer, and after an 90 INDUSTRY TODAY
CRAIG TECHNOLOGIES • PROFILE
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PROFILE • CRAIG TECHNOLOGIES
AT A GLANCE: Craig Technologies Aerospace & Defense Manufacturing Center (ADMC) • Location: Cape Canaveral, Fla.; • CEO: Carol Craig; • Years in Business: 15; • Revenue: $45 million; • Capabilities: repair, overhaul, refurbish and complete preventive maintenance to extend the life of mission-critical systems; design, prototype, manufacture and perform final acceptance testing; technical services, analysis and business support; engineers software systems to match the capability of custom hardware platforms; • Website: www.craigtechinc.com.
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honorable discharge following a disabling knee injury, became an independent consultant in software development, which snowballed into a government contract business. From 20042011 Craig grew the company’s engineering/ technology division, providing services support for government, and in 2011, moved into the manufacturing side of the aerospace industry. A turn-around occurred in 2005 when Craig took over the 160,000-square-foot building and 2,000 pieces of equipment left behind when the end of the space shuttle program effectively shuttered the site operated by United Space Alliance, a joint venture between Boeing and Lockheed Martin, specifically created to supply parts and
CRAIG TECHNOLOGIES • PROFILE
services to support shuttle missions. “This facil- (ADMC), which offers a vast array of capabilities ity would have been empty and the equip- under one roof, including: • repair, overhaul, refurbish and completion ment put into storage,” Craig said. “I decided of preventive maintenance to extend the life of to take the risk to turn this into an mission-critical systems; entrepreneurial center.” • design, prototype, manufacture and performAnd today, for Craig, the business philosophy ing final acceptance testing for a wide variety employed by the company is simple: “It’s all of avionics and electro-mechanical systems and about the mission.” components; The realization of Craig’s risk is the busy • technical services, analysis and business supAerospace & Defense Manufacturing Center port for any-sized project; “I predict we will triple in • engineering, validation and integration of software systems to match the capability of size in manufacturing custom hardware platforms. facility in the next two The company is a viable and dynamic minoriyears.” – Carol Craig, CEO ty-owned, service-disabled veteran-owned INDUSTRY TODAY 93
PROFILE • CRAIG TECHNOLOGIES
(SDVO), economically-disadvantaged woman-owned small business (EDWOSB), and small disadvantaged business (SDB) that has received all the crucial certifications, including ISO9001/
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AS9100. Craig is also compliant with ITAR, which mandates that that information and material pertaining to defense and military related technologies “may only be shared with U.S. persons unless authorization from the Department of State is received or a special exemption is used. In addition to aerospace, Craig also supplies the Department of Defense, satellite producers, and companies in the maritime and transportation industries. Commercial customers include ATK, Boeing, Comtech Systems, GE Aviation, Lockheed Martin, Siemens Energy, Conoco Philips, to name a few on the long list of companies Craig supplies. “This is truly a manufacturing facility, with every capability needed to supply the full life cycle of the product,” Craig said. “On the manufacturing side, we see a huge opportunity as more large companies seek to outsource. There is also huge emphasis on quality, which is culturally already a part of our company.”
CRAIG TECHNOLOGIES • PROFILE
ON THE DREAM TEAM Craig Technologies’ Aerospace and Defense Manufacturing Center in Cape Canaveral is set to bring the company more business – and accolades, as witnessed by an agreement entered in 2014 for Craig to join Sierra Nevada Corporation’s (SNC) ‘Dream Team’ organizations selected to support SNC’s Dream Chaser® program. SNC is developing the Dream Chaser spacecraft as a commercial transportation vehicle to low-Earth orbit. Craig Technologies will provide multiple contracted products and services to SNC. Craig Technologies’ first contract is to work with SNC engineers to design and develop a critical part of the Ground Support Equipment (GSE) known as the cradle, a mechanical device used to lift, transport and rotate the Dream Chaser spacecraft during processing. SNC chose to team with Craig Technologies because of the company’s depth of human spaceflight experience coupled with its end-to-end design-to-production capability including specialty manufacturing, precision machining and fabrication, and test and evaluation services as well as materials requirement planning and supply chain management systems. “Today is the start of a relationship that can grow substantially as a continuation of our expansion in Florida” said Mark N. Sirangelo, corporate vice president of SNC’s Space Systems, said at the time the agreement was announced. “We are pleased to have Carol (Craig) and her company join forces as part of our Dream Team, which includes top tier companies in over 30 states. Craig Technologies’ strong engineering capabilities and outstanding facilities along with their company values and passion are an ideal fit for SNC and our Dream Chaser program.” SNC also has agreed to sponsor Craig in a mentor-protégé relationship, supporting a common vision of providing each of SNC’s and Craig Technologies’ customers with agile, innovative and cost-effective solutions from a richly diverse and passionately dedicated workforce, all committed to making history. “We are fortunate to be given this opportunity to help act as a bridge between the worldclass manned spaceflight infrastructure that is the Cape Canaveral legacy and the next generation, cutting-edge spacecraft made possible by the dynamic innovation of commercial enterprise. It’s an honor to be a part of the Dream Chaser Dream Team,” said Carol Craig, founder and CEO, Craig Technologies.
“This is truly a manufacturing facility, with every capability needed to supply the full life cycle of the product.” – Carol Craig, CEO INDUSTRY TODAY 95
PROFILE • CRAIG TECHNOLOGIES
MEET THE CEO Carol Craig calls herself an “accidental entrepreneur and unconventional CEO,” growing Craig Technologies from one person in 1999 to nearly 400 associates. As CEO, Craig oversees corporate operations to ensure quality service-delivery for her commercial and government customers. Interested in computers from an early age, Craig was a P-3C Orion Naval Flight Officer, specializing in Anti-Surface and Sub-Surface Warfare. Prior to her service, she was a computer engineer for Naval Air Warfare Center-Indianapolis, concentrating on the integration of global positioning systems and cockpit display development for several Navy and Marine Corps aircraft. She has in-depth knowledge of military IT security and installation as a result of her tenure as the Automated Information Security Manager for the Strike Fighter Weapons School, Pacific in Lemoore, Calif. In addition, she supported the Strike Fighter Weapons School, Atlantic in Virginia Beach, Va., where she instructed Navy Portable Flight Planning System (N-PFPS) software and developed mission planning training courses for tactical aviators. Craig holds a bachelor of arts in Computer Science from Knox College, a bachelor of science in computer science engineering from the University of Illinois, and a master of science in electrical and computer engineering from the University of Massachusetts at Amherst. She is pursuing a Ph.D. in systems engineering at Florida Tech in Melbourne, Fla. In 2010, 2011 and 2012, Craig was recognized as a finalist for the prestigious Ernst & Young “Entrepreneur of the Year Award” in the technology category for the Florida region. Other awards include the NDIA’s 2013 Kathleen P. Sridhar Small Business Executive of the Year Award; 2012 Manufacturing Institute Women in Manufacturing STEP Award Honoree in the Technology Category; 2012 Technology Executive of the Year Congressional Medal of Merit, awarded by US Congressman Bill Posey at the Florida TechXpo TechNovation Awards. She serves on the Dean’s Advisory Board for University of Central Florida’s College of Engineering, and on the University of Central Florida Foundation Board of Directors and Development Committee. Craig is also affiliated with numerous industry and professional organizations, including the National Association of Women Business Owners (NAWBO), Florida Minority Suppliers Development Council (FMSDC), International Council on Systems Engineering (INCOSE), National Center for Simulation, National Defense Industry Association (NDIA), Women in Defense (WID), Armed Forces Communications and Electronics Association (AFCEA), and Navy League. She is a member of the Society of Women Engineers, which named her “Outstanding Woman Engineer of the Year” by the Space Coast Chapter in 2008, and the 2008 “Entrepreneur of the Year” at the national level. 96 INDUSTRY TODAY
CRAIG TECHNOLOGIES • PROFILE
vation, high quality and customer service, has enabled Craig Technologies to enter into agreements and contracts on a number of important programs. Recently, the company contracted to provide on-site training operations support services to the U.S. Air Force Special Operations Air Warfare Center (AFSOAWC) at Hurlburt Field, Fla. During this multi-year contract, Craig will provide schedulers, security and client support administrators/functional system administrators (CSA/FSA) to assist in optimally moving SOF students through the aircrew training program and into the field. The Air Force Special Operations Air Warfare Center organizes, trains “We have so much business,” she added, “it’s and equips Airmen required to execute global special operations. almost hard to keep up.” A subcontract with Science Applications International Corp. has Craig performing Many Contracts Under One Roof The company’s expertise and penchant for inno- work under the NASA Langley Information
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PROFILE • CRAIG TECHNOLOGIES
Technology Enhanced Services II (LITES II) contract to provide world-class information technology (IT) services at the agency’s Langley Research Center in Hampton, Va. Craig Technologies also was awarded a fiveyear, follow-on contract to support Goddard Space Flight Center Science Directorate under the Geophysics Geodynamics and Space Geodesy Support (SGT) contract. Craig is a subcontractor to SGT, Inc., on this work, which includes development of orbital data analysis strategies, geodynamic models, and software systems to study four dimensional geophysical and oceanographic processes. Craig Technologies provides scientific analysis in laser altimeter studies 98 INDUSTRY TODAY
and ancillary satellite data analysis for cryospheric and oceanographic investigations. Craig also provides software engineering support for Goddard’s Instrument Support Facility. Craig is currently providing support to NASA at Kennedy Space Center, Goddard Space Flight Center, Ames Research Center, Marshall Space Flight Center, and Langley Research Center.
Growth In Numbers “Our reputation is what we are known for,” Craig said. “We take care of our employees – people like to work here, and that translates to better customer service. People know we’re reliable.” Proof of this is recognition the com-
CRAIG TECHNOLOGIES • PROFILE
“Companies are looking for a supplier who can give more than one capability, with the shortest lead time possible, by doing it all in house.” – Carol Craig, CEO pany received in 2013 as being among Florida’s best companies to work for in 2013. “There is a manufacturing renaissance toward people-centric leadership.” “I predict we will triple in size in manufacturing facility in next two years – we have 50 people now; I want 150 in the next two years,” Craig noted. A $45 million company, the $5 million provided by the manufacturing arm is predicted to grow to $25 million in five years, Craig said.
“Manufacturing is different than the services side, it’s more focused on product,” she added. “Companies are looking for a supplier who can give more than one capability with the shortest lead time possible by doing it all in house.” And so, from the ground to the sky and beyond, Craig Technologies will continue to do all of this for its employees, delivering the capabilities and technologies necessary to enable its customers’ growth – as well as its own. INDUSTRY TODAY 99
PROFILE • CUSTOM PROFILE
Custom Profile—the name says it all. In business for the last 23 years as a plastic extruder known for its wide range of manufacturing capabilities, the company today presides over production facilities in the U.S. and Mexico, and is recognized as one of North America’s leading providers of extruded plastic products for the appliance, furniture, office, and marine industries. Bob Rhoades, director of sales for the company, sits down to discuss how a company that began with a modest identity has evolved into a business that now routinely provides quality solutions for some of the world’s most impactful, innovative industrial companies. Steve Engelhardt reports.
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CUSTOM PROFILE • PROFILE
ustom Profile was first founded in 1992 by Sam G. Nicholas in Grand Rapids, Mich. Working out of a humble 3,000-square-foot space inside a machinery building, he relied upon a single extruder and his industry experience to establish the company. Six years later, after building up his business through demand from local appliance and furniture mar-
kets, he quickly found himself needing to expand his manufacturing footprint in a significant manner and made the critical decision to relocate and construct an entirely new building to allow his business to continue to flourish and grow. “During this time we had been able to strike up a strong business relationship with Electrolux, who were over in Greenfield at the time,” INDUSTRY TODAY 101
PROFILE • CUSTOM PROFILE
says Rhoades, adding, “Things progressed pretty quickly with them and by 1999, they were responsible for somewhere between 50 and 60 percent of our business.” Having an extensive partnership with a global leader like Electrolux proved to be a launching pad for Custom Profile, as the company underwent a series of additional expansions over the next few years, increasing plant size, employees, and extrusions lines to handle and manage what was no longer a regional, but national business. Over the next decade, despite economic down102 INDUSTRY TODAY
turns and rapidly evolving markets, Custom Profile continued to snowball in success, becoming an international manufacturer with its opening of a facility in Juárez, Mexico in 2008, and serving the needs of those leading its relevant markets, which today includes General Electric, Whirlpool, and Steelcase, in addition to Electrolux. “Today, Custom Profile is a leader in the appliance and office furniture industries, but because of our commitment to quality and the manufacturing versatility that exists within our facilities, there are quite a few other markets
CUSTOM PROFILE • PROFILE
“We excel in the higher volume-type of product because of how we’re able to achieve such a high degree of proficiency in what we make while still meeting the increasingly shortened lead times that define the industries we compete in.” we find our services desired in and applicable wide range of services they are able to consistently deliver such quality through, including: towards, such as marine and automotive.” Assembly, dual durometer extrusions, heat forming, in-line taping, in-line texturizing, in-line Volume and Quality Rhoades, who’s been with the company since 1999, says that the progression from a small, local extruder to the 230-plus employee, international manufacturer that Custom Profile operates You’ve got a process… as today has resulted from a number of different Davis-Standard can factors, but perhaps chief among such has been make it better! their ability to successfully marry quality with Global Leadership in Pipe, Profile & Tubing speed of production in their products. “We excel Davis-Standard has been a global leader in pipe, profile, and tubing extrusion for over 50 years. in the higher volume-type of product because of Our extrusion systems and extruders support multi-layer pipe extrusion, automotive tubing how we’re able to achieve such a high degree of and seals, medical tubing, agriculture pipe, telecommunications pipe, and building profiles proficiency in what we make while still meeting among others. Whether your extrusion application requires the increasingly shortened lead times that define tight tolerance tubing, high output gas and water pipe lines, or custom profile systems, look to the industries we compete in,” says Rhoades. Davis-Standard for your global pipe, profile and tubing needs. While they aren’t necessarily alone in this Contact us to learn more about how Davisendeavor, what sets Custom Profile apart is the Standard’s range of pipe, profile and tubing Pictured above: Juarez Facility and Grand Rapids Facility.
extruder technologies can help you achieve resultsdriven performance.
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PROFILE • CUSTOM PROFILE
wood graining, notching, punching, routing, sawing, sonic welding, and special packaging and labeling. “Throughout our company’s history, we have been able to combine years of practical experience with technical knowledge to bring streamlined solutions to our customers, which really allows their ideas to not only take shape, but take off,” says Rhoades. All of this success can be traced directly back to the company’s Grand Rapids and Juárez facilities, which are both ISO 9001:2008 certified and feature diverse sets of resins to enable them bring any kind of material solution that their customers may need. “Our control over our manufacturing process is central to our success, and at the foundation of this is the material 104 INDUSTRY TODAY
compounds we utilize to make our products,” he says, adding, “We have a number of different options to choose from, including ABS, rigid PVC, polyethylene, TPE’s, TPU’s, high impact polystyrene, flexible PVC, and polypropylene.” This kind of quality is desired and respected by their customer base, but running parallel to this strength is the company’s aforementioned operational efficiency. Speaking on his company’s reputation for quick production and speedy delivery, Rhoades says that both of their facilities run an around-the-clock schedule, five days a week. “By always staying up and active, we allow ourselves an added level of flexibility in how we produce and take on additional projects,” he says, continuing, “Many of our customers give us
CUSTOM PROFILE • PROFILE
Cultivating Value Product quality and a consistent, controlled manufacturing presence define Custom Profile’s success, but ensuring all of this is a dedicated, hard working employee base—an area the company has three to four day leads times, and we relish the opportunity to not only meet such requests on a weekly manner, but exceed them wherever possible; an aspect fueled by our talented in-house team of engineers.”
Pictured left and top middle: Table Edge T-Molding; middle: Water chiller tanks for household refrigerators; bottom:Formed tubing for appliances. right: Custom Profile’s facilities are ISO 9001:2008 cerified. INDUSTRY TODAY 105
PROFILE • CUSTOM PROFILE
greatly invested in. “Our employees go through rigorous training, as we make sure they have a full understating of what we call the Custom Profile ‘black book’,” Rhoades says, adding, “and by that I mean not only are they fully aware of the corporate and industry requirements that guide our day to day operations, but that they’re also educated
on our culture of responsibility and community involvement.” Taking this cultural sentiment a step further, in addition to in-house events held monthly that are dedicated towards raising money for a specific cause, Custom Profile participated last year in the national holiday Manufacturing Day—a day in
COMMUNITY AWARENESS In April, Custom Profile hosted 18 local middle school students for three days during their spring breaks to educate them on modern manufacturing, an event that spoke to the looming issue of a skills gap in manufacturing where there may not be enough younger, trained workers to fill the shoes of an aging workforce here in the United States. Bringing them through the many different aspects of advanced manufacturing and engineering, the main goal was to show them that today’s manufacturing isn’t about dark rooms and dirty floors, but about the same innovative and high-tech solutions that Custom Profile achieves on a daily basis. “It was our goal to give back to the community and in doing so, make sure that they understand what Custom Profile does and why manufacturing today is so exciting,” says Jenny Redes, Human Resource Manager for Custom Profile.
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CUSTOM PROFILE • PROFILE
It speaks strongly to the workforce at Custom Profile, whom Rhoades says is full of individuals who truly care about their job and delivering a higher level of performance and output. “We’re a growing company, but the family-like environment we have fostered over the years has led to a committed workforce, something we view as critical to our present and future success.” For Custom Profile, it’s a company that is excelling both inside and out, utilizing a motivated employee base to bring the best possible plastic products to their customers. It’s a healthy position to be in, and with a strategic production presence already in position and a high profile October dedicated to spreading awareness about customer base to match it, Custom Profile looks modern manufacturing in the United States and like a safe bet to continue its fast rise across multiple industrial markets here in the United States. what a career in it can lead to.
“Throughout our company’s history, we have been able to combine years of practical experience with technical knowledge to bring streamlined solutions to our customers, which really allows their ideas to not only take shape, but take off,”
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PROFILE • JRL MARINE CONCEPTS
For nearly 40 years, Marine Concepts has served the marine industry and beyond with some of the most precise, high-quality composite tooling solutions available. Combining a talented, experienced workforce with innovative leadership, the company is hitting a new stride in 2015 as it begins to expand its offerings to an even wider range of markets. J. Robert Long, CEO of the company since 1994, sits down to talk about why his company’s reputation is currently at an all time high, and provides insight into the corporate culture that fuels success on an annual basis. Steve Engelhardt reports.
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JRL MARINE CONCEPTS • PROFILE
arine Concepts was originally founded in 1976 by Augusto “Kiko” Villalon, a Cuban immigrant who came to the United States with nothing but a $5 bill in his pocket. Realizing that there wasn’t
a single design and development company that could take things from A-Z from a production standpoint, he built a team of design and molding specialists, and his company and its comprehensive approach to tooling projects quickly
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PROFILE • JRL MARINE CONCEPTS
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Solutions for Unique Applications
As a wholesale distributor of various specialty wood products and composite materials we serve a diverse range of industrial and commercial industries: • Tooling Boards for prototyping and pattern making. • Engineered Wood Products for the scaffolding and construction industry. • Panel Products for a wide variety of specialized applications. We take great pride in our product options and value our relationship with MARINE CONCEPTS as a supplier of tooling boards for prototype models.
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JRL MARINE CONCEPTS • PROFILE
took off. Given their name and the professional background of their founder, the company initially grew itself through contracts with boating companies around Florida. However, given the company’s dynamic workforce and relative flexibility in what they could produce with their materials and equipment, Marine Concepts began to attract the attention of additional industries as well, highlighted by a partnership with the major ice cream chain, Twistee Treat, to build 85 22-foot ice cream cone shaped buildings, many of which are still in service today. Pictured left: 70’ spilt mold for hull; lamination of a helicopter simulator.
Growing a Vision With a diversified portfolio, Marine Concepts had a new identity, and in 1994, when Villalon decided to step aside, the company had a new leader as well. Enter J. Robert Long, who along with his wife Karen, decided to purchase the company and take it to an even higher level, incorporating it within his corporate enterprise, JRL Ventures. Long, whose experience in the boating industry spans over 35 years, saw the potential in the company at the time and along with eventually moving Marine Concepts into a much bigger, more capable production facility in Sarasota, he also invested quite a bit into state-ofthe-art CNC mills to allow them to deliver the INDUSTRY TODAY 111
PROFILE • JRL MARINE CONCEPTS
possible work for their customers. Now, over 20 years later, Marine Concepts has fulfilled Long’s initial vision, growing to the point where they now operate out of two facilities whose footprints total more than 350,000-squarefeet, and standing as one of the largest and most respected design, engineering, and composite
tooling companies in the United States. In 2006 Long hired Matt Chambers and immediately promoted him to President. Matt worked diligently to diversify and expanded their reach to many other industries through the corporate enterprise JRL Ventures. This diversification allowed the company to grow substantially
“We currently have seven 3-5 Axis CNC milling machines, and our CNC departments run 24 hours a day, 7 days a week, allowing us to effectively meet any and all lead times for our customers.” 112 INDUSTRY TODAY
JRL MARINE CONCEPTS • PROFILE
INDUSTRY ICON In August, Marine Concepts and JRL Ventures CEO J. Robert Long received the 2015 Hall of Fame Award from the National Marine Manufacturers Association (NMMA). An accomplished leader, innovator, and entrepreneur within the marine industry, Long has spent the last 45 years leading companies like Starcraft and Crestliner, as well as 17 year reign at Wellcraft Marine prior to purchasing Marine Concepts and forming JRL Ventures. through non-marine customers such as: helicopter simulators, theme park attractions, truck and RV bodies and the wind energy sector. “Marine Concepts, and JRL Ventures by extension, is a composite manufacturer that really has no industry boundaries,” says Chambers, “When you look at the professional and trained designers, engineers, project managers, office staff, tooling artisans, and workers that we have assembled here over the years, there’s no size or volume request that we can’t handle.”
terns and plugs, molds and glassmasters, and various other CNC parts that often serve as critical foundational pieces in their customers’ products. And in order to accomplish such, the company has devoted significant resources to ensuring that the initial design and engineering in their own products either matches or exceeds the demands expressed by their customers. “We understand the importance of ergonomics, workforce capabilities, functionality, and aesthetics that are necessary in the development of our customers’
Committed to Quality But let’s take a closer look into the factors that support Long’s words, beginning with the company’s design and engineering capabilities. While Marine Concepts isn’t in the business of manufacturing end products, the company is responsible for producing some of the highest quality patPictured left: Bob Long is honored as 2015 Inductee in NMMA Hall of Fame; right: Bob with Senator Connie Mack with the Luxury Tax Axe.
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PROFILE • JRL MARINE CONCEPTS
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JRL MARINE CONCEPTS • PROFILE
When you look at the professional and trained designers, engineers, project managers, office staff, tooling artisans, and workers that we have assembled here over the years, there’s no size or volume request that we can’t handle.” products,” Chambers says, adding, “Whether it’s working from an idea, sketch, rendering, or preliminary CAD file, our team of industrial and mechanical designers can develop highly-engineered 3D CAD models utilizing the latest version of NX CAD/CAM software, which goes a long way in a project.” As one can see, project management and quality control are at the heart of Marine Concepts’ success, and facilitating this is an expansive manufacturing presence that enables the company to have the level of autonomy over its operations that it needs. Although Marine Concepts only opened its 300,000-square-foot facility in Sarasota in 2012, the facility is one that Long has been familiar with for quite some time. See, prior to coming to Marine Concepts, Long was President of Pictured: SEMA concept car model.
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Wellcraft Marine, one of the country’s most iconic boating companies over the last 50 years. “We had originally built this facility in Sarasota for Wellcraft, and a lot of great things were accomplished underneath its roof,” he says, continuing, “So when I came back around all these years later and saw the facility available for purchase, I knew it was an opportunity I couldn’t pass up.”
Manufacturing a Culture
production performance that one would expect out of a prominent, quality-based manufacturer like Marine Concepts. “We currently have seven 3-5 Axis CNC milling machines, and our CNC departments run 24 hours a day, 7 days a week, allowing us to effectively meet any and all lead times for our customers.” Supporting the Sarasota facility is the corporate headquarters in Cape Coral, whose combined 50,000-square-feet allow for increased
The move has allowed the company to take on a much higher level of business, and inside it Pictured above: Stringer mold being detailed; one can find the equipment, machinery, and right: President Matt Chambers. 116 INDUSTRY TODAY
JRL MARINE CONCEPTS • PROFILE
milling operations when orders run high, which occurs more often than not. However, Long says that while the plant space and state-of-the-art equipment is critical to their success, perhaps even more so is the experience and dedicated attitudes possessed by their workforce. “We have employees in management and on the plant floor that have been with us for 20 or 30 years now, and what it’s created is a culture inside our facilities where people really care about their work and the end product,” says Long. While Marine Concepts isn’t the most expensive option in the market, because of their commit-
ment to quality they’re certainly not the cheapest either. But Long is perfectly fine with that. “I learned long ago in the boat business that cutting corners and trying to deliver a cheap product may deliver short term success, but it never lasts,” he says, adding that Marine Concepts has built itself up to the point where “Our service and quality is worth paying for, just ask any of our customers.” And as the company diversifies its markets further, including a recent expansion of business demand from North America’s automotive and energy industries, many more will begin to see this. INDUSTRY TODAY 117
PROFILE • MILWAUKEE VALVE
With over a hundred years of design and manufacturing experience in the books, Milwaukee Valve stands today as one of the most reliable and capable valve manufacturers in the United States and beyond. And with a diverse product line that consists of over 5,000 items, ranging from small plumbing valves destined for residential use to large petrochemical valves to be utilized in major energy-based operations, it’s rare to find an industry or application that they can’t provide a high-quality solution for. Steve Engelhardt reports on how the company is able to achieve such widespread success in what has become an extremely competitive and dynamic industrial world.
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MILWAUKEE VALVE • PROFILE
he Milwaukee Valve Company was first established in Wisconsin in 1901, beginning as a small manufacturer of plumbing and heating valves for the surrounding local commercial and residential markets. Building a reputation for quality and reliability, the company didn’t change too much over the next 58 years or so, until Herschel Seder, a career industrialist with an extensive background in valve design and manufacturing, saw an opportunity and made the decision to purchase the com-
pany along with his partner, Max Koenigsberg, in 1959. The purchase proved to be an instrumental moment in Milwaukee Valve’s history, as the company quickly grew its product offering and customer base, including a partnership with the U.S. Navy in the 60’s, where they were responsible for manufacturing virtually every valve inside each of their maritime vessels, which was so successful that they still continue to provide such to this day. “The initial contracts with the Navy
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PROFILE • MILWAUKEE VALVE
was a very important time for us, as it not only gave us a big boost in reputation across the valve industry,” says Tom LaGuardia, Vice President of Marketing for Milwaukee Valve, adding, “But because of the extremely high tolerances that they unquestionably demand, we also, and perhaps more importantly, gained a great deal of high-level knowledge on how to take our own line of valves to the next level in terms of enhancing their quality and precision.”
Expanded Offering Operating in a whole new arena of success, the company continued to grow itself throughout the 70’s and 80’s, leading to its purchasing of Hammond Valve in 1991 to further expand the amount of markets it could reach. “Hammond 120 INDUSTRY TODAY
MILWAUKEE VALVE • PROFILE
NEXT GENERATION VALVE MATERIAL: NXT 75 FLUOROPOLYMER RESIN NXT 75 (modified PTFE) is Milwaukee Valve’s recently released, next generation of Industrial Ball Valve seating material. Having quickly become the standard seat material for their F20, F90/91, 20, and 35 series industrial ball valves, the NXT 75 offers superior characteristics over both the PTFE (virgin) and RPTFE (glass-filled) seats. Key Benefits • Improved chemical inertness; • Improved heat resistance; • Lower coefficient of friction (lower operating torques); • Improved resistance of deforming under load; • Lower permeation (eliminating “pop-corning” effects of seats); • Experience lower inventory costs by carrying one seat that does the work of two.
at this time was a highly capable, but relatively unknown valve manufacturer for the residential market,” says LaGuardia, continuing, “Their product line gave us an entry into the lower-tolerance, non-spec valve markets that we had been staying away from up this point due to our heavy presence in the higher-tolerance-based commercial and industrial markets.” This evolution has led to the Milwaukee Valve we see today, a company with a long, illustrious history, a broad range of services, and a dedicated workforce that boasts a number of individuals who have been with the company for over 25 years. “Milwaukee Valve in 2015 stands as a valve manufacturer that has developed a unique blend of capabilities that are quite honestly unmatched by any of our competitors, many of Pictured: Milwaukee Valve manufactures virtually every valve inside of the U.S. Navy’s maritime vessels. INDUSTRY TODAY 121
PROFILE • MILWAUKEE VALVE
whom have their hands in many other industrial items as well,” LaGuardia says, adding, “High quality, high precision valves are what we provide, no matter the application.” Milwaukee Valve manufactures all of its valves at its main facilities in New Berlin and Prairie du Sac, Wisc., and handles additional surplus at its wholly owned operation in Tonglu, China. “Manufacturing is a huge strength for us, no matter if it’s done here in Wisconsin or in China,” LaGuardia says. He says that all factory operations are supported by a continuous reinvestment into equipment and machine tools, and 122 INDUSTRY TODAY
the engineers working across these sites are supported by state-of-the-art computer tools, from 3D design to finite element analysis (FEA), and computation fluid dynamics (CFD) to create the highest amount of control as possible. “We also operate our own fire test facility to achieve the most advanced fire safe designs according to API guidelines.” With regards to actual types of valves that Milwaukee Valve offers, it’s a wide range to say the least—including ball, gate, globe, butterfly, specialty, marine, and lead-free valves destined for the commercial and
MILWAUKEE VALVE • PROFILE
“High quality, high precision valves are what we provide, no matter the application.” industrial markets. “While there may be other companies that make valves, none have the breadth of SKU’s that we have.”
Lead-ing the Way LaGuardia says a lot of progress has recently been made in their lead free valves, in response to the California Senate’s passing of the Reduction of Lead in Drinking Water Act (S.3874) in 2011,
which stipulated that industrial, commercial, and residential valves must have less than 0.25 percent of lead content in order to be utilized. “The bill came out of nowhere and as you can imagine, had significant ramifications for a valve-centric business like us,” he says. “But our engineering team reacted very quickly, conducting quite a bit of metallurgical research to evaluate everything that we produced with bronze materials, which contains lead.” What resulted was Milwaukee Valve creating the largest offering of lead-free valves in the country and branding the product line as UltraPure, a leadfree solution that is now available in a number of
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PROFILE • MILWAUKEE VALVE
different valve models, including 2- and 3-piece ball full port valves, press-end valves, gate valves, and globe valves. This kind of market awareness is why Milwaukee Valve has been able to have the success it has had over the years, as LaGuardia says it’s deeply ingrained in the company’s culture to always be improving wherever possible. “To give more evidence to this sentiment, in addition to a new high performance butterfly valve we’re also getting ready to launch, we’ve also recently released Pictured: Milwaukee Valve’s products are suitable for a broad range of services.
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a slow-close butterball valve to go into fire suppression systems that doesn’t compromise a facility’s drinking water, which goes back to the lead-free regulations I talked about.”
Looking Ahead Although most of Milwaukee Valve’s business is currently done here in the United States, its reputation is beginning to reach the eyes and ears of those in international markets. “We apply stringent quality controls to the production of all material, whether it’s made in our facilities here in Wisconsin, or in our wholly-owned operation in China, and that consistency is becoming
MILWAUKEE VALVE • PROFILE
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MILWAUKEE VALVE • PROFILE
“Manufacturing is a huge strength for us, no matter if it’s done here in Wisconsin or in China.”
increasingly sought after by the global market.” And with a résumé that already includes having supplied a large order of valves to go into the world’s tallest building in Dubai, the Burj Khalifa, it seems it’s only a matter of time before they expand their market reach even further. As LaGuardia puts it, “If you have a commercial or industrial application and need a valve for it, then we have a solution for you. Because at the end of the day, we go in whatever goes up.”
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PROFILE • HB&G BUILDING
HB&G Building Products offers a wide variety of PermaCast™ architectural products that will make any home exterior a standout. From columns to ceilings to porch railings, these products will stand the test of time, as has the company itself – now celebrating its 135th anniversary. Lorie Greenspan tells the story. emember the porch? The big, wraparound, space at the front of the house where rockers are placed and people greet their neighbors? It’s making a comeback. And that is good news for HB&G Building Products, which is leading the market in architectural porch design, from columns to porch railings. Celebrating its 135th anniversary this year, the company that started making wood products such as wagon parts grew after the turn of the 19th into the 20th century to supply profiles and columns for the grand porches of the era. A change in residential building design toward 128 INDUSTRY TODAY
HB&G BUILDING • PROFILE
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PROFILE • HB&G BUILDING
mid-century into the beginning of the 21st century altered the importance of porches but, says Jeff Byers, vice president of sales and marketing, “The porch is coming back and it’s getting bigger.” “Our company has always been innovative,” Byers said, both in responding to and creating industry trends. Today, with a growing shortage of construction workers, HB&G, which invented outdoor design, is developing products that make installation of columns and porch railings faster and easier. And these architectural appointments are getting a new look – or rather, an old look. Round columns are replaced with square, Craftsman-style versions, or are designed in a blend of architectural styles. So what is old is new again. No matter what architectural style currently in demand, HB&G is there to manufacture and install these elements on commercial, residential and government buildings, churches, universities and banks. Touting styles that are architecturally correct, HB&G can also restore older wood columns, with the added advantage that its cast columns will endure into the next century.
AT A GLANCE: • HB&G Building Products, Inc.; • Address: P.O. Box 589, Troy, Ala. 36081; • Phone: (800)-264-4HBG; • Website: www.hbgcolumns.com; • Employees: 400-500; • Products: A full line of architectural columns, porch railings, ceilings and column wraps; • Companies/Brands: Arbors Direct, Dixie Pacific, Hartmann Sanders, Columns Inc.
PermaCast™ Solutions In its lineup of products, HB&G, headquartered on more than 30 acres in Troy, Ala., offers exterior elements made of PVC as well as quality PermaCast™ products, comprised of composites that offer the advantage of being resistant to corrosion, rot- and termite-proof. The products look like wood but won’t deteriorate like wood Pictured: HB&G offers a range of architechural columns, porch railings and column wraps.
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PROFILE • HB&G BUILDING
and that means endurance and reliability as well as an aesthetically pleasing exterior for years. Among these products are the PermaPost® posts for railings and outdoor lamps, made from a super low maintenance polyethylene shell that surrounds a galvanized steel pipe and polyurethane foam filler, tested to carry a load of up to 5,000 pounds. In the area of rail systems, HB&G collaborated with builders and architects to develop the most versatile and natural-looking synthetic rail system on the market, resulting in the PermaPorch® railing system. The company’s low maintenance synthetic rail is made from cellular PVC with aluminum inserts for strength. PermaPorch® railing In addition, HB&G offers PermaPorch® rail is in prefinished white, but can be easily painted, and is weatherproof, virtually maintenance free, attachment brackets and aluminum inserts, specifically engineered to securely attach the and comes with a 25/10 year warranty. PermaPorch railing to a newel, post, column Pictured: HB&G’s products all carry a lifetime or structure. The newel system is ideal for both warranty. 132 INDUSTRY TODAY
HB&G BUILDING • PROFILE
“I credit the longevity to the innovation we have had over all these years.” - Jeff Byers, vice president of sales and marketing.
MEET THE CEO Five years ago, in 2010, HB&G Building Products, the world leader in fiberglass architectural columns, announced the appointment of Lance Servais as the company’s new CEO. Servais brought extensive experience and leadership to the porch products manufacturer. Prior to joining HB&G, Servais was president of Remington Power Tools, vice president and general manager of Hamilton Beach Global Commercial and held several key executive positions with the Maytag Corporation.
residential and commercial applications, and it’s strong enough to meet all IBC and IRC codes. Yet another product in HB&G’s PermaPorch line is the PermaPorch ceiling, another maintenance-free product. It can be used as a beaded
In addition to receiving his bachelor’s degree in Marketing from the University of South Florida, and a master’s degree from Virginia Commonwealth University, Servais attended the Colorado Springs Center for Creative Leadership, as well as the G.E. Professional Managers program and the Development Dimensions International Program. He is a professional member of the Society of International Business Fellowship. In an effort to better support the current HB&G distribution network, Servais has grown the business with an emphasis on sales and marketing, and new product development.
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PROFILE • HB&G BUILDING
The first product, PLUMB-FIT™, is an all-inceiling, or as an accent to any room as a dramatic wainscoting. Pre-finished in white means it never one installation system for columns, getting the job done faster while ensuring, well, a plumb fit. needs to be painted. The product simplifies the accurate placement of the column and is the first installation system New And Better HB&G recently has added two products to its built into the flashing cap. The company has also introduced ColumnLoc™, ever-expanding list of exterior architectural offerings, proving that the outside is as deserving of an insulation system designed to provide wind uplift resistance to a porch roof overhang and superior style as the building’s interior. 134 INDUSTRY TODAY
HB&G BUILDING • PROFILE
“We are the largest manufacturer in the industry.” - Jeff Byers, vice president of sales and marketing. lifetime warranty. The company’s structural fiberglass components also provide a higher level of aesthetic quality than vinyl or wood pergolas. HB&G’s stock pergolas are wind-load rated and manufactured white with Spartan Tails and square or no-taper round PermaLite® pultruded fiberglass columns without neck molding. HB&G also offers high quality, cellular PVC pergolas, arbors, and trellises. Custom pergolas, arbors, and trellises are also available.
tested to meet the rigid standards in coastal areas. ColumnLoc reduces column installation time and labor, compared to a split column around a load bearing post. Rounding out the company’s product package is its new fiberglass pergola. HB&G manufactures structural fiberglass pergola kits using pultrusion technology to produce the strongest, lightest, structures available, with a limited INDUSTRY TODAY 135
PROFILE • HB&G BUILDING
PERMANENT COLUMNS Most notable in the product portfolio offered by HB&G Building Products are its PermaCast columns, able to maintain architectural authenticity and historical accuracy. These products are weather-proof, insect proof, and come with a limited lifetime warranty. PermaCast® columns can be used as front porch support columns or decorative columns, and are available in both round columns and square columns. The company’s PermaCast columns are ideal for a number of reasons: Complete System: Choose from the widest array of sizes and styles of synthetic columns, caps and bases with the PermaWrap® cellular PVC square columns, PermaPorch® railing, balustrade and ceiling products on the market. Consistency and Appearance: As the company notes: “Columns are the distinguishing mark on a home’s exterior.” HB&G’s PermaCast® Columns offer a consistent wall thickness and a smooth surface from column to column due to the latest technology that’s used in production. Column Wall Thickness: The wall of each column maintains the same thickness assuring there are no weak spots, and more fiberglass makes HB&G columns stronger than the competition’s. Ease of Installation: HB&G’s is exclusive in offering a flashing cap and installation kit. The Flashing Cap not only prevents debris from entering the column, it secures the top of the column while the installation brackets secure the bottom of the column. Paintability: HB&G does not use additives or coatings that interfere with paint adhesion, there are no sanding scars or need to sand PermaCast® Columns. HB&G caps and bases are primed and ready to paint. All that is needed with HB&G’s PermaCast® Columns, caps and bases is to remove any excess dust or dirt from the surface prior to painting. HB&G Architectural Support: HB&G’s Architectural Department offers guidance in everything from design through its PermaBuilder™ Program, takeoffs, CAD drawings and continuing education (CE) courses for architects and designers.
“The porch is coming back and it’s getting bigger.” - Jeff Byers, vice president of sales and marketing. 136 INDUSTRY TODAY
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Many Companies Under One Roof Employing an in-house innovation team that constantly researches and invents newer and more efficient products, HB&G has also been proactive in adding companies to its roster whose core competencies have complemented HB&G’s own capabilities. These companies include: Arbors Direct: Manufacturer of custom-sized 138 INDUSTRY TODAY
fiberglass arbor and pergola kits for residential and commercial applications. Dixie Pacific: Manufacturing columns, railings, ceilings and pergola kits under the DuraCast and DuraLite brand names Hartmann Sanders: Manufacturer of authentic architectural columns and a full range of classically designed capitals. Columns Inc.: Manufactures a full line of
HB&G BUILDING • PROFILE
fluted round no-taper columns, fluted square no-taper columns, two styles of plain square no-taper columns and a recessed panel square no-taper column. While these companies underscore HB&G’s solid business portfolio, the company, said Byers, is always looking to further its industry presence by partnering with companies that offer products and services to complement the HB&G line. “We’re always looking to expand our lines of outdoor products, railings and privacy screenings,” Byers said. Its products sell at Home Depot but can usually be purchased through building material channels, Byers said. HB&G will ship anywhere in the world
there is a demand for its products, through a line of reliable distributors in the United States. “We are the largest manufacturer in the industry,” Byers said, noting the employee base of 400-500 people who make the HB&G product line strong. With a history extending back to 1880, HB&G has been able to adapt to the incredible changes over the last two centuries by being able to adapt. “I credit our longevity to the innovation we have had over all these years,” he said, as well as the ability to recognize that the world was changing, and that HB&G, the porch and outdoor products, had to change with it. “We are the leader in porch products,” Byer said, adding, “We invented outdoor living products.”
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ADVERTISER’S INDEX
VOLUME 18 • ISSUE 6
A Allied Electrical Contractors...................................... 78
K Kenneth Clark Co........................................................84
B BAE System...............................................................OBC Baltimore Aircoil Company........................................ 84
M Maas Aviation..............................................................49 Manpower...................................................................70 McCausey Specialty Products................................ 110 Michigan Automotive Bending (Mabco)................. 73
C Calibration Technologies...........................................80 Chemetall.................................................................. IBC D Davis-Standard..........................................................103 E Emerald Tool................................................................72 Evapco.........................................................................82 G Gerotech, Inc..............................................................68 H Haas Factory Outlet....................................................94 Hermetic-Pumps Inc. USA..........................................80 Houghton................................................................... IFC Howden Compressors Inc..........................................83 I ITW Polymers Adhesives, North America................ 110
N Nordstrong Equipment Limited.................................. 58 P Pollington Machine Tool............................................. 70 PPG Commercial Coatings........................................ 58 S Side Effects Graphics..................................................63 Solcon™ USA...............................................................84 Swenson Products.......................................................61 T Thermofin......................................................................86 U United Initiators..........................................................130 United Titanium..........................................................120 V Vesco Oil Corporation................................................ 72
J Jerr-Dan........................................................................62
IBC – Inside Back Cover IFC – Inside Front Cover OBC – Outside Back Cover
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