Issuu

Innovative Robotic Process Automation Solutions Atos and UiPath announce their partnership to bring their innovative Robotic Process Automation (RPA) solution to North America.

Production and service delivery are critical to smooth manufacturing operations. Given the complexity and pace of technology advanced operations, UiPath’s RPA reduces risk and increases efficiency leading to cost savings, increased output and faster speed to market with almost immediate results. However, the call to RPA, beyond front office/back office improvements are not so obvious. RPA can help quickly scale opportunity in areas that ensure the integrity and quality of complex automated production processes to involve less human oversight.

Publisher’s Letter

ife is now different. You know the devastation the spread of coronavirus has caused, not just to manufacturing and business in general, but to all of our daily lives. Most of the articles in this issue were written before the advent of the coronavirus crisis. Unlike the Industry Today email newsletters and website, which have been updating our subscribers with breaking news related to the global pandemic, the magazine’s content is planned months in advance. In that respect, while we publish digitally on-line, we remain timebound in laying out what at core is still a traditional magazine. Consequently, the optimistic tone of features developed at the beginning of 2020 seems outdated only three months later as we went to publish. Still, we remain optimistic. America is relying on manufacturing innovation and business creativity to help get us through this crisis. And while many businesses are suffering today, we’re confident that once we all get through this, we are poised together to return to the enterprising optimism we all recently shared just a short time ago. So, with that in mind, we bring you articles written during better times, but represent a future we can still realize. One example is the vital importance of broadband during the coronavirus pandemic both to enable the move to remote work as well as provide entertainment and community for families in a time of social distancing. Consequently, the joint business and government program announced by the Institute for Emerging Issues (IEI) at North Carolina State University to promote broadband services in every county in the state by 2022 remains significant. Bold initiatives are essential not just during the current health crisis, but to address the challenges of climate change. The University of Kentucky’s Center for Applied Research (CAER) is developing a methodology to convert coal tar pitch into carbon fiber, an essential material in automotive and aerospace to make transportation more energy efficient and environmentally-friendly. Aerospace is just one manufacturing sector hard hit by the pandemic. We included coverage on Connecticut and its leading position for aerospace manufacturing despite its bullish viewpoint is no longer current. However, we’re confident that non-profit organizations such as AdvanceCT are at the forefront of of providing economic solutions that will benefit the state and industry not just during the crisis, but when we emerge from it. And when we do recover, practices such as Additive Manufacturing, our feature on the Neighborhood 91 production campus at Pittsburgh International Airport, will help all manufacturers get back on a stable footing. The Fourth Industrial Revolution, which is part of the profile on Mckinsey and Company’s Global Lighthouse Network comprised of 44 organizations, isn’t going away. It provides the bedrock foundation on which industry can be confident of making a vital comeback. Stay safe, and stay positive.

www.industrytoday.com spoeton@industrytoday.com

Publisher: Susan G. Poeton Project Director: Brian McMillan Project Managers: Jonathan Listig Production: Melissa S. Burge Art Director: Seema Mazhar Contributing Designers: Jorge Leandro Rodrigues Profile Writers: Reuben Ford, Lorie Greenspan, Michael Sommers, David Soyka

65 Madison Avenue, Suite 540, Morristown, NJ 07960 Ph. 973.218.0310

Industry Today is published quarterly by Positive Publications LLC, 65 Madison Avenue, Suite 540, Morristown, NJ 07960. Copyright © Industry Today 2020. All rights reserved. No part of this publication may be reproduced in any form or for any purpose without prior written consent from the publisher and payment of the agreed fee. ISSN # 1521-8058

INDUSTRY TODAY 1

Table of

Contents FEATURE - IBTTA

FEATURE FEATURE - ADVANCECT

FEATURE - IBTTA

TOLLING DRIVES AMERICA’S 21ST CENTURY ECONOMY

FEATURE - ADVANCECT

FEATURE

Businesses embrace tolling as the key to reliable freight logistics.

es are looking to tolled highways, bridges, and dollar saved is a dollar earned. tunnels for the reliable mobility they depend on Time is money. Put those two very old adages together, for inbound and outbound freight. Every entrepreneur knows that if business is and you can see why more and more business-

MANUFACTURING OUTLOOK POSITIVE CONNECTICUT LEADS THE WAY IN AEROSPACE.

Experts agree, the outlook for the global aerospace and defense industry looks positive for 2020 – Connecticut sees growth in the sector.

udney Aerospace in Berlin, Connecticut, plans to spend $12 million and hire as many as 60 people over the next five years as the aerospace manufacturer and repairer of jet-engine components

Now imagine a miraculous new treatment the beating heart of America, highway shipping is the circulatory system. If the arteries and that could clear those arteries and get the blood vessels get clogged, the heart gets more system running smoothly again, with no side and more stressed. In the end, it just shuts down. effects to speak of. What would you be willing

24 INDUSTRY TODAY

expands operations. Budney is just one of many manufacturers up and down the aerospace supply chain to recently announce expansions in Connecticut. Investment in equipment is also ongoing.

14 INDUSTRY TODAY

INDUSTRY TODAY 25

24 IBTTA

INDUSTRY TODAY 15

14 ADVANCE CONNECTICUT FOCUS - MCKINSEY & COMPANY

FOCUS - MCKINSEY & COMPANY

A digital transformation could help manufacturers move quickly when the coronavirus crisis lifts.

PROFILE | MARINE CONCEPTS

MARINE CONCEPTS | PROFILE

CONCEPTING COMPOSITES

FOCUS

LOOKING FORWARD IN TROUBLED TIMES 4 INDUSTRY TODAY

Design Concepts/Marine Concepts is the leading source for composites design, engineering, tooling and detailed part fabrication. David Soyka reports. 74 INDUSTRY TODAY

74 MARINE CONCEPTS

2 INDUSTRY TODAY

BM and AT&T had it sort of easy—their abbreviations stood for products they no longer make, but the initials maintained brand awareness even as they moved into new businesses. What had been known as Marine Concepts for over 40 years confronted a slightly different challenge. As one of the

leading composite design and development companies for the boating industry, what do you call yourself when you seek to apply the same core competencies and customer responsiveness to non-marine customers, but still maintain an identity built on nearly a half century of accomplishments?

INDUSTRY TODAY 75

he environment in which a digital transformation could help manufacturers move quickly when the coronavirus crisis lifts. The environment in which manufacturers are operating is changing faster and further than ever before. The unfolding coronavirus pandemic is disrupting supply chains on a global scale, and labor shortages and shifting guidelines and restrictions are halting production lines. As leaders focus on ensuring the health and safety of their teams, they are also solving short-term problems as they evolve on a daily— and even hourly—basis. Eventually the crisis in its current form will end, and manufacturers will be called upon to ramp up production and respond quickly to new demands from customers. When that time comes, a digital transformation can build new levels of flexibility and resilience into manufacturers’ value chains, and offer an opportunity for those that act quickly to capture the potential rewards of the Fourth Industrial Revolution (4IR)—expected to be $3.7 trillion by 2025. INDUSTRY TODAY 5

04 MCKINSEY & COMPANY

VOLUME 23 • ISSUE 1

FEATURE - NORTH CAROLINA STATE UNIVERSITY

FEATURE

FEATURE - NORTH CAROLINA STATE UNIVERSITY

NEW SUPPORT PROGRAM SEEKS BROADBAND SUCCESS FOR ALL

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

BAND-NC seeks to help NC become the first state in the nation where every county has a digital inclusion plan by the end of 2022.

FEATURE

he Institute for Emerging Issues (IEI) at North Carolina State University has announced the formation of a new support program designed to make North Carolina “first in digital inclusion.”

Building a New Digital Economy in NC (BAND-NC) was launched February 10 with initial support from Roanoke Electric Cooperative and the North Carolina’s Electric Cooperatives, in partnership with the NC

Broadband Infrastructure Office. The program will offer grants for counties to develop plans to increase adoption and use of broadband services. Our goal with BAND-NC is that North Carolina would become the first state in the

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nation where every county has a digital inclusion plan by the end of 2022. Digital inclusion plans will include strategies to increase access to devices and make broadband affordable to more people. They also aim INDUSTRY TODAY 35

$3B ECONOMIC IMPACT PREDICTED FOR AIRPORT PRODUCTION CAMPUS

istory shows that innovative think- omies. The quality of a company’s workers ing attracts more innovative thinking is key, but success is also driven by the entire with “innovation sectors” clustering ecosystem that surrounds it. Neighborhood 91, an Additive Manufacturing and growing due to knowledge-based econ-

34 NORTH CAROLINA STATE UNIVERSITY

Neighborhood 91 will make an impact, one manufacturer at a time. (AM) production campus at Pittsburgh International Airport, will act as a catalyst for AM industrialization and innovation with the creation of a cost-efficient ecosystem and

the collection of smart people. The economic impact of this campus will be big and built on the success of individual companies. To spur economic impact with the adoption of

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42 NEIGHBORHOOD 91 PITTSBURGH AIRPORT FEATURE - THE UNIVERSITY OF KENTUCKY

FEATURE - THE UNIVERSITY OF KENTUCKY

PROFILE | WELLONS POWER

FEATURE

TURNING COAL INTO CARBON FIBER

hen Matt Weisenberger was a young man, his first job was a family tradition. With a broom in hand, he would sweep the wood floors at Weisenberger Mill, a Kentucky institution nestled on the banks of the Elkhorn Creek in Midway. The previous six generations of the

Weisenberger family helped grow the mill from its humble beginnings to the foodie haven that it is known for today. Weisenberger was the curious type, spending spare time watching the waters of the creek flow by, pondering how things worked. Constantly questioning – always searching for answers.

The University of Kentucky is transforming coal tar pitch into high-value carbon fiber for uses in cars, aircrafts and sporting goods.

Academic curiosity kept Weisenberger busy first as a chemistry undergraduate student then, as a materials engineering graduate student at the University of Kentucky. About 20 years ago, he stumbled upon a scientific area that would shape his life’s work. As a student at UK, Weisenberger became

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AN INDUSTRY POWERHOUSE

WELLONS POWER | PROFILE

As a biomass boiler OEM and EPC firm, Wellons specializes in biomass energy systems in the steam and power markets. David Soyka reports.

intrigued – some might even say infatuated – with carbon fiber. Many consider it to be the material of the future — a next-generation version of aluminum. Its properties are often considered the holy grail in manufacturing. Carbon fiber is a low-weight, high-strength, corrosion resistant material that can conduct electricity. INDUSTRY TODAY 53

52 UNIVERSITY OF KENTUCKY 60 INDUSTRY TODAY

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WELLONS

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FOCUS

LOOKING FOR IN TROUBLED 4 INDUSTRY TODAY

RWARD TIMES

FOCUS - MCKINSEY & COMPANY

A digital transformation could help manufacturers move quickly when the coronavirus crisis lifts.

he environment in which manufacturers are operating is changing faster and further than ever before. The unfolding coronavirus pandemic is disrupting supply chains on a global scale, and labor shortages and shifting guidelines and restrictions are halting production lines. As leaders focus on ensuring the health and safety of their teams, they are also solving short-term problems as they evolve on a daily— and even hourly—basis. Eventually the crisis in its current form will end, and manufacturers will be called upon to ramp up production and respond quickly to new demands from customers. When that time comes, a digital transformation can build new levels of flexibility and resilience into manufacturers’ value chains, and offer an opportunity for those that act quickly to capture the potential rewards of the Fourth Industrial Revolution (4IR)—expected to be $3.7 trillion by 2025. As in past crises, some companies will succeed in using the current discontinuities to INDUSTRY TODAY 5

FOCUS - MCKINSEY & COMPANY

The Global Lighthouse Network includes 44 sites as of January 6, 2020. End-to-end connected value chain Lighthouses

Four-wall factory Lighthouses

19 18

32 33 20 6

7 8 9

11 6

13 16 17 7 1415 9 8

10 11 12 14 15 13 16 17

26 20 19 22 2122 21

34 36

32 35 37

40 39 38 43

2 3 23

25 27

28 30

1 Zymergen Biotechnology, US

12 Phoenix Contact Industrial automation, DE

23 Saudi Aramco Gas treatment, SA

34 WeiChai Industrial machinery, CN

2 Fast Radius with UPS Additive manufacturing, US

13 AGCO Agricultural equipment, DE

24 Unilever Consumer goods, UAE

35 SAIC Maxus Automotive, CN

3 Johnson & Johnson Vision Care Medical devices, US

14 Rold Electrical components, IT

25Tata Steel Steel products, IN

36 Haier Home appliances, CN

4 Groupe Renault Automotive, BR

15 Bayer Division pharmaceuticals, IT

26 Siemens Industrial automation products, CN

37 Johnson & Johnson DePuy Medical devices, CN

5 MODEC Oil and gas, BR

16 BMW Group Automotive, DE

27 Infineon Semiconductors, SG

38 Bosch Automotive, CN

6 Johnson & Johnson DePuy Synthes Medical devices, IR

17 Procter & Gamble Consumer goods, CZ

28 Schneider Electric Electrical components, ID

39 Procter & Gamble Consumer goods, CN

7 GSK Pharmaceuticals, UK

18 Sandvik Coromant Industrial tools, SE

29 Micron Semiconductors, SG

40 Baoshan Iron & Steel Steel products, CN

8 Schneider Electric Electrical components, FR

19 Nokia Electronics, FI

30 Petrosea Mining, ID

41 Haier Appliances, CN

9 Groupe Renault Automotive, FR

20 Arçelik A.Ş. Home appliances, RO

31 Foxconn Industrial Internet Electronics, CN

42 POSCO Steel products, KOR

10 Tata Steel Steel products, NL

21 Petkim Chemicals, TR

32 FOTON Cummins Automotive, CN

43 GE Healthcare Healthcare, JP

11 Henkel Consumer goods, DE

22 Ford Otosan Automotive, TR

33 Danfoss Industrial equipment, CN

44 Hitachi Industrial equipment, JP

Source: World Economic Forum; Lighthouse analysis

6 INDUSTRY TODAY

accelerate the reimagination and restructuring of their supply chains, building new capabilities and establishing a new performance trajectory. Few have succeeded in reaching the attractive ROI offered from 4IR methods. Given the disruptive impact of technology, it’s been easier for leaders to take a measured approach, testing-as-you-go with pilot deployments. But more than 70% of organizations are failing to demonstrate compelling returns, instead getting stuck in “pilot purgatory.” Given these challenges, what can be learned from those who are beating the odds of success? Some of the leading organizations already reaping the benefits of 4IR are part of the Global Lighthouse Network, a collaborative project by McKinsey and the World Economic Forum. These 44 organizations— diverse in terms of industry, size, and location—are exceeding performance standards with digital, analytics, automation, and other innovations. They are also driving

FOCUS - MCKINSEY & COMPANY

new benchmarks, and sharing the results: Lighthouses are reporting productivity increases of up to 90%, lead time reduction of up to 80%, speed to market improvements of up to 100%, and energy efficiency improvements of up to 50%. For example, the Ford Otosan site in Kocaeli, Turkey leverages digital manufacturing and advanced automation to move beyond lean, and increased its output by 6% and employee engagement by 45% without additional capital expenditure investment. The GSK facility in Ware, UK used advanced analytics and neural networks with existing datasets, and improved line speed by 21%, and OEE by 10%. These are just a few examples found in results of the Lighthouse research project. When reviewed closely, it becomes clear that although there are many paths to success, Lighthouses share a set of common success factors, particularly on how they realized scale and how they supported the skills of their workforce.

Lighthouses become the scale-up vehicle for the entire company. Scale-up architecture Lighthouses serve as scale-up vehicles, and together create a single, company-wide operating system comprising dozens of use cases and hundreds of deployments.

One

Few

50+

500+

Company operating system A new, consistent, enterprise-wide way of working across value chains, people, assets, and sites

Lighthouses Each Lighthouse integrates at least 20 use cases that together innovate a value chain or factory, and form a building block for the infrastructure to reach scale

Use cases Digital innovations that change how a business process is conducted

Deployments Local transformations that change the way people work across the organization

Scale-up unit Lighthouses create a minimum viable product (MVP) of the company-wide IIoT operating system. This unit can be then replicated across the company.

IIoT/data systems Modernized IIoT stack and data model allow cyber connection between reality (eg, shop-floor sensors) and IT systems, and agility to add use cases in a matter of weeks (technology democratization)

People systems

Management systems

Upskilled workforce with future of work-ready profiles via an IIoT academy. Agile operating model fostered through agile digital studio

Augmented operators,¹ robotics, and leaned-out and automated processes are simulated and optimized by using a digital twin

Business processes Digital performance management —with AI-powered, personalized dashboards and alerts—creates one source of truth and eliminates all waste in decision-making

¹Operators whose work is augmented by technologies such as artificial intelligence, augmented reality, collaborative robots (cobots), or virtual reality

Scale-up enablers Six enablers provide essential reinforcement in the scaling of advanced manufacturing use cases.

Agile approach

Tech ecosystem

IIoT academy

IIoT stack

5 Agile digital studio

6 Transformation office

Source: World Economic Forum; Lighthouse analysis

Pictured left: The Global Lighthouse Network spans the globe with 44 sites; above: Lighthouses realize greater impact because they change operations for the entire organization. INDUSTRY TODAY 7

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Workers’ roles change dramatically at Lighthouses. Common actions taken by Lighthouses to prepare their workforces Actions

From

Empowering the front line to innovate, using technology and data

Innovation in my production line is generated from the top

I own innovation in my production line—we all come up with ideas

Proactively building capabilities, both technical and soft, and managing talent

The talent-management system is one-size-fits-all, relying on expertise

My company uses innovative external methodologies for training, blending on-thejob coaching, rotations, augmented reality and virtual stations, or a digital learning centre

Adjusting the organizational structure to enable 4IR¹ transformation

My team is production only—focusing on only running equipment

My team merges production and maintenance, with technicians and operators running automated operations

Implementing new ways of working such as agile and increased transparency

Solution development is finished outside of our operations before being tested

To develop a fit-for-purpose product, the agile team involves us early in the development of a minimum viable product (MVP), through sprint review

Improving day-to-day assembly and operating tasks through automation and technology

I can manage only a few machines since they have frequent breakdowns, and I have to make adjustments based on my experience

My machines are self-learning, with automated centrelining and other settings, which eliminates most breakdowns and allows me to track more machines in parallel

Increasing levels of problemsolving and collaboration on the front line

Decisions in my line typically are based on experience, not data

My team relies on self-diagnosing machinebased data to make decisions

¹Fourth industrial revolution. Source: McKinsey & Company Lighthouse analysis

Scaling beyond silos

Lighthouse organizations demonstrate that scale is a key aspect of maximizing ROI. Implementing 4IR at-scale means 50+ use cases at a time, and hundreds of deployments, all unified by an operating system that breaks 8 INDUSTRY TODAY

down silos across functions and even reaches across the entire value chain from supplier to consumer and beyond. The benefits of the silo-breaking approach are evident when we look at examples like Chinese auto manufacturer SAIC Maxus, which used

FOCUS - MCKINSEY & COMPANY

digital solutions to revolutionize production of mass-customized vehicles. Using an online ordering platform, digital twins, a digital supply chain for supplier transparency, and smart engineering to differentiates thousands of configurations to confirm the correct build, the company improved productivity by 20% and grew the top line despite market declines. Similarly, when Johnson & Johnson Vision Care in Jacksonville, Florida digitally connected its value chain, its modular platform for rapid-line reconfiguration reduced development and launch timelines by 30%, and its end-to-end supply chain visibility platform reduced inventory levels by 13%. Pictured left: Common activities Lighthouses use to prepare their workforces.

While Lighthouses have taken varied approaches to transformation, they have several elements in common, including: 1. An agile approach: Rather than focus on year-long pilots built for perfection, leading organizations collaborate and manage change continuously; allowing quickly designed transformations that anticipate and surpass technical limitations. 2. Business processes: Processes are optimized using new technologies, including augmenting operators work with artificial intelligence, augmented reality, collaborative robots (cobots), and virtual reality. 3. Management systems: Digital performance management creates one source of truth INDUSTRY TODAY 9

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and eliminates waste in decision-making. 4. Modernized IT: A modern IIoT stack and data model allows cyber connection between reality (e.g. shop-floor sensors) and IT systems; this allows for the speed and agility to add use cases in a matter of weeks instead of years. For example, a local entrepreneurial team at Unilever Dubai leveraged several of these elements as they sought to improve cost competitiveness with their 4IR efforts. Led by an ex-process engineer and supported by a team of engineers and technicians who engage on 4IR projects on top of their current responsibilities, the group develops and delivers apps affecting the routines of operators across the factory. Using a dynamic structure and sprint deployments, the team also adhered to some common 10 INDUSTRY TODAY

principles: All apps depended on the common data lake, were designed on open-source platforms, provided straightforward user interfaces, and employed mobile technologies wherever possible. With limited investment and in a short time period, their efforts achieved a cost reduction of more than 25%.

The human-centered future of production

Though technology is the driving force in this revolution, the success of the Lighthouses prove that human creativity is playing a central role. 4IR is a journey that needs people for our cognitive skills, innovation, and other very “human” qualities – things that simply have no AI equivalents. And, while industrial executives

FOCUS - MCKINSEY & COMPANY

Katy George is a Senior Partner at McKinsey & Company, and leads the Operations Practice, which includes the firm’s services in manufacturing and supply chain. Katy’s 23 years of client service have focused on operational performance improvement, operations strategy linked to business strategy, and operating model design. Currently, Katy works with clients on advanced technology development and adoption, the future of manufacturing, and the future of work. Katy leads McKinsey’s collaboration with the World Economic Forum on “Factories of the Future,” and was recently named to the Board of Directors for MxD, the Digital Manufacturing Institute. are already struggling on talent—only 32% of leaders feel prepared for technology’s potential impact on roles and skills – successful approaches from the Lighthouses stand out: • Thoughtfully deploying automation and related technologies—Rather than replacing operators, Lighthouse sites use technology to take over repetitive, manual tasks, freeing workers’ time for more complex assignments. For example, at household-products manufacturer Arçelik AŞ in Ulmi, Romania, the automation

of low-value tasks improved operational costs by 11%. Supervisors spend less time collecting data and more time on the shop floor, coaching new operators, and instructing operators on product introductions. • Empowering frontline workers to innovate—Successful organizations put technology and data into the hands of their workers, train them on how to use it, and then ask them to use the technology to solve problems. At Schneider Electric, “digital week’ uses a facilitated

INDUSTRY TODAY 11

FOCUS - MCKINSEY & COMPANY

hackathon to generate new ideas. With more than 50 people involved, the organization is building the muscle for employee innovation and new ideas. • Applying adult learning principles to build capabilities—Lighthouses focus on both technical and soft skills, tailoring their reskilling 12 INDUSTRY TODAY

programs according to each worker’s needs. For example, Phoenix Contact developed an application to guide operators through steps and track their accomplishment, helping operators build success in their jobs. The company reports that 100% of operators who work with these machines prefer them over the traditional

FOCUS - MCKINSEY & COMPANY

models. • Making changes to the organizational structure—71 % of Lighthouses are making adjustments to how they are organized to make 4IR transformation a priority. At Nokia in Oulu, Finland, a small expert team of 10 people support technical development and implemen-

tation of new technologies. Coming from both engineering and cross-functional backgrounds, they work in an agile way to develop 4IR innovations and deployments at scale. This site has been able to improve productivity by 30%, and now brings products to market 50% faster than before. • Implementing new ways of working— Lighthouses are embracing agile methodologies and increased transparency, guiding decisions with real-time data and facts rather than gut instinct and precedent. For example, the Bosch facility in Wuxi, China, uses an internal communication platform that enables people to interact using chat and video applications. Smartphone applications share data, production notifications and other types of communication, allowing front-line supervisors to spend more time in face-to-face problem-solving with their teams. Focusing on just skills or scale—or indeed any of the enablers by itself—won’t be enough to thrive in the Fourth Industrial Revolution. These inputs must be harnessed together to generate the impact new technologies can offer; a combination of factors that will allow organizations to keep pace with the leaders from the Global Lighthouse Network. And as organizations begin to prepare for operating in the new environment that will result from the coronavirus pandemic, they must be ready to move quickly to capture the fast-mover advantage. INDUSTRY TODAY 13

FEATURE - ADVANCECT

FEATURE

MANUFACTURING O CONNECTICUT LEADS THE WAY IN AEROSPACE.

Experts agree, the outlook for the global aerospace and defense industry looks positive for 2020 – Connecticut sees growth in the sector. 14 INDUSTRY TODAY

FEATURE - ADVANCECT

OUTLOOK POSITIVE

udney Aerospace in Berlin, Connecticut, plans to spend $12 million and hire as many as 60 people over the next five years as the aerospace manufacturer and repairer of jet-engine components

expands operations. Budney is just one of many manufacturers up and down the aerospace supply chain to recently announce expansions in Connecticut. Investment in equipment is also ongoing. INDUSTRY TODAY 15

FEATURE - ADVANCECT

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FEATURE - ADVANCECT

United Technologies Corp. (UTC) has invested $40 million into a 9,000-square-foot compressor facility at its research center in East Hartford. The closed-loop facility is the largest system of its kind known today, and will be used for research, testing and experimentation on engines made by Pratt & Whitney. The proximity of the new closed-loop compressor to Pratt & Whitney’s headquarters in East Hartford will allow for a more seamless transition from experimentation to product development, maximizing innovation and efficiency. UTC says the compressor facility will extensively benefit the next generations of jet engines being developed by Pratt & Whitney. Deloitte’s 2020 Global Aerospace and Defense industry outlook offers plenty of optimism for aerospace to thrive in the U.S. Growth in global defense spending and the subsequent demand for military equipment is likely to create increased opportunities for defense contractors and their supply chains. The long-term demand for commercial aircraft continues to remain robust, according to Deloitte, with nearly 40,000 units expected to be produced over the next two decades. And at 14,000 aircraft, the commercial aerospace order backlog remains at near-record levels. Pictured previous spread: Aircraft engine installation, photo courtesy of AdvanceCT; left: Middletown, CT Engine Center, Engine Assembly, Pratt Whitney, United Technologies Corporation.

INDUSTRY TODAY 17

FEATURE - ADVANCECT

AdvanceCT is a nonprofit organization that works to engage, retain and recruit businesses and advance overall economic competitiveness in Connecticut. In collaboration with the Connecticut Department of Economic and Community Development (DECD), AdvanceCT strives to build a place where business, government, higher education, and nonprofits come together to implement high impact and inclusive economic development solutions for the state.

Growth in global defense spending and the subsequent demand for military equipment is likely to create increased opportunities for defense contractors and their supply chains. Connecticut has long been a nexus of aerospace manufacturing. Many of the industry’s big names have operations there, such as Pratt & Whitney, Sikorsky, GKN Aerospace and many more. There are also dozens of lesser known components manufacturers. In fact, more than 1,000 manufacturers and suppliers to the industry have operations in the Pictured: Middletown, CT Engine Center, Engine Assembly Pratt Whitney, United Technologies Corporation. 18 INDUSTRY TODAY

FEATURE - ADVANCECT

state. As a result, Connecticut has the nation’s 7th highest concentration of aerospace engineers. Connecticut’s Location Quotient for the aerospace and defense sector is 5, which means that its density of employees, companies and related institutions has a density that is five times higher than the national average. The Aerospace Components Manufacturers trade organization has an annual trade show that brings together many of these companies. According to the Journal Inquirer Newspaper in Manchester, noted industry analyst Aboulafia of the Teal Group consultancy told the gathering that the industry should be heartened by rising passenger air miles, relatively low fuel costs and growth of Asian markets. Connecticut’s first-ever chief manufacturing officer has an extensive aerospace background and can offer a keen perspective of the industry. Colin Cooper, former CEO of the Whitcraft Group, an aircraft components builder with locations in Eastford and several other cities in the state, was appointed to the role by Gov. Ned Lamont last October. He is responsible for coordinating state and private sector efforts to promote growth in all areas of the state’s manufacturing. Under Cooper’s leadership at the Whitcraft Group, the Connecticut-based contract manufacturer of precision parts to many of the world’s largest aerospace companies expanded from one facility in Eastford to four manufacturing facilities in Connecticut and operations INDUSTRY TODAY 19

FEATURE - ADVANCECT

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FEATURE - ADVANCECT

in five other states, and grew in revenues of approximately $20 million to over $250 million today. He and his business partner acquired Whitcraft Group in 1998, and prior to that he began his career as a design engineer for Pratt & Whitney Aircraft. “We have a very robust aerospace sector in the state,” Cooper says. “Right now both the military and commercial sides of the business are very strong. If you look at Pratt & Whitney (East Hartford), their biggest military program is the F-35, and they make an engine called the F135, which is the propulsion system that powers the joint strike fighter, the F35. That business is strong and growing, as they ramp up production on the fighters.” Cooper says Connecticut is competitive on the engine side of the business because of its

robust cluster of companies. He explains that the sector encompasses a lot of specialized processes. Much of the supply chain depends on other suppliers to execute those controlled processes. With Connecticut’s compact geography, he says there is a myriad of suppliers within an hour’s drive if a manufacturer needs specialized materials or specialized technicians. “The aerospace industry and supply chain is very tightly integrated,” Cooper says. There are a lot of niche products or special service providers. You find a very robust cluster of those companies in Connecticut.” Pictured: David Campbell, Director of Business Development, AdvanceCT; Peter Denious, President and CEO, AdvanceCT; left: Middletown, CT Engine Center, Maintenance Training, Pratt Whitney. INDUSTRY TODAY 21

FEATURE - ADVANCECT

ABOUT THE AUTHOR Peter Denious leads the AdvanceCT team as its President and CEO. He came to AdvanceCT in August 2019 as an accomplished private equity and venture capital professional who helped realize commercial and economic opportunity by connecting ideas, people and capital. For the previous 17 years, Peter worked for FLAG Capital Management and its successor, Aberdeen Standard Investments, based in Stamford, CT. Peter was a member of the senior leadership team responsible for growing the FLAG private equity platform to over $6.5B in AUM from approximately $1B when he joined in 2001. During his tenure, Peter oversaw the venture capital fund investment program and became deeply involved with FLAG’s push into international markets, particularly Europe and Asia. He was a member of both the Investment and Management Committees and was ultimately responsible for a $2B investment portfolio. Before FLAG, he worked for J.H. Whitney & Co. a direct private investment firm based in Stamford, CT. He started his private equity career following business school at BancBoston Capital based in Boston, MA. Prior to graduate school, Peter worked for Prudential Securities and Chemical Bank in investment and commercial banking. Peter is a graduate of Trinity College and received his MBA from the Tuck School of Business at Dartmouth College, where he is a board member of the Center for Private Equity and Venture Capital. Peter is an Ex-Officio member of the Governor’s Workforce Council. He is also a member of Social Venture Partners Connecticut, a not for profit focused on closing the opportunity gap in Connecticut by supporting innovative organizations and initiatives in education and workforce development. www.advancect.org

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FEATURE - ADVANCECT

Cooper notes the continual expansion of the industry in the state as companies increase capacity to serve both civilian and military customers. “There is an aerospace components manufacturer called Alpha Q in Colchester, they just put on a new addition. Horst Engineering in East Hartford purchased an old facility, which they are refurbishing and expanding into. ACMT in Manchester has purchased and refurbished a number of old facilities. These companies are growing because they have secured contracts on new programs and their volume is growing with the increase in production.” Commercial aerospace in general is robust with a strong aftermarket. Cooper says there are some European manufacturers considering expanding into Connecticut. “The people who have invested and established a footprint here have been pleased with the results,” he says. “The word is out, that if you are going to be in the aerospace business on the engine side, it’s probably a good idea to have a footprint in Connecticut.” Connecticut’s investment in education has been a key factor in the industry’s growth. Cooper says about 10 years ago, the state began investing in its talent training structure, putting more funding into technical high schools and advanced manufacturing education centers. “Eight of our community colleges now have them, and we need to continue to add to it. It’s a real differentiating factor. It’s absolutely

critical that we continue to invest in our workforce, both in encouraging new people to enter the workforce as well as help our employers upscale the incumbent workforce. We have a lot of new technology emerging, and we have to make sure that our state’s workforce is taking advantage of that.” The biggest challenge and at the top of everyone in the industry’s list of concerns is workforce development. This is true not only in aerospace, but across all manufacturing sectors. Cooper says the state must continue to address this issue to make sure that all Connecticut based manufacturers have a steady supply of new entrants with the requisite skills to start a career in manufacturing. “Among the pantheon of issues to have, that is good problem to have,” he says. “It means your industry is in demand if you need to hire to meet the demand.” So, what is the overall mood of the industry? Cooper says it’s decidedly optimistic in spite of recent challenges. “After the manufacture of the 737 was halted because of the software issue, there was a near-term affect, and of course there is concern over the corona virus. But those are short-term impacts. If you look at the longer dynamics, at things like the eight-year backlog of orders for the 737 and A320 jets, then the overall prospects are very good. I was in aerospace for well over 20 years and that wasn’t always the case.”

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FEATURE - IBTTA

FEATURE

TOLLING 21ST CE

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FEATURE - IBTTA

DRIVES AMERICA’S ENTURY ECONOMY

Businesses embrace tolling as the key to reliable freight logistics. Now imagine a miraculous new treatment the beating heart of America, highway shipping is the circulatory system. If the arteries and that could clear those arteries and get the blood vessels get clogged, the heart gets more system running smoothly again, with no side and more stressed. In the end, it just shuts down. effects to speak of. What would you be willing INDUSTRY TODAY 25

FEATURE - IBTTA

to pay for a reliable circulatory system that kept your business alive? Would you see it as an expense or an investment? Especially if the dollar you spent brought you savings in staff time and other overhead that went straight to your bottom line?

Put Your Business in the Picture

Take a minute to put your own manufacturing business in the picture. Every company has its own cost structure, but the Council of Supply Chain Management Professionals puts freight logistics costs at eight percent of America’s gross domestic product. If your shipping and receiving costs are in that general range and your margin on sales is, say, three percent, what’s it worth to you to have a far larger share of your shipments run on time? And how much more would you have to boost your top-line revenue to get the same bottom-line result? Now you have a picture of why tolling is emerging as a solution for America’s most congested urban corridors, and one of the country’s hottest transportation trends.

The Highway Next Door

The cost of bringing raw materials in, sending finished goods out, and covering employees’ travel time on the road is one of the factors manufacturers consider when they’re deciding where to locate a new production facility. For Australian-based recreational vehicle manufacturer Furrion, LLC, a toll road made a 26 INDUSTRY TODAY

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FEATURE - IBTTA

difference in the decision to move its headquarters to Elkhart County, Indiana in 2016, bringing dozens of high-paying tech jobs to the area. Furrion “is really a high-profile company,” a county economic development spokesperson said. Proximity to the Indiana Toll Road was Pictured: Illinois Tollway, Jane Addams Memorial Tollway (I-90).

28 INDUSTRY TODAY

“part of the reason they chose the site. That site, being so close to the Toll Road, they really want to build the type of premiere facility that is going to attract attention.” The official stressed that the new Furrion would be “more than a manufacturing site,” with a strong accent on research and development. “You will see a lot of need for engineers, people who can create product. These are

FEATURE - IBTTA

higher-paying jobs.” And Indiana isn’t alone. In its blog post on the Indiana announcement, IBTTA cited similar stories in states like Virginia, Pennsylvania, Ohio, Florida, and Texas. In 2018, the Association of Equipment Manufacturers listed on-time deliveries as a reason to invest in modern highways. And a year earlier, Tim Stewart, Executive Director of Colorado’s E-470 Public Highway

Authority, traced the massive economic benefits the road had delivered to the regional governments that brought it into being. “E-470 has produced a $38.4-billion increase in real estate value along the corridor since 1986, and the road accounts for 12% of the annual economic activity across the six-county Denver Metropolitan Statistical Area,” Stewart said. “That’s outstanding, but it’s not unusual. INDUSTRY TODAY 29

FEATURE - IBTTA

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benefits of cashless, all-electronic tolling in real time.” And that ties in with something the modern tolling industry has known for a very long time. “Seeing is believing, and our member agencies have realized that the more their customers experience the benefits of tolled infrastructure, the more they like it,” Jones says. “It’s an incredible relief to know that you can get to work on time, plan a reliable schedule for freight delivNot Your Grandparents’ Toll eries, or cut through rush hour traffic in time Road To really tap into that opportunity, there’s one for a day care pick-up or your daughter’s soccer quick, perceptual shift to get through: Tolling is game.” a solution to highway congestion and a powerful driver for America’s 21st century economy The Road Ahead because we’re not talking about your grandpar- Just as tolling technology drove the last big leap ents’ toll road. in highway mobility, the private operators and IBTTA Executive Director and CEO Patrick public agencies that run America’s toll roads Jones recalls the days when it was news to driv- are working hard to turn the next wave of disers and decision-makers when he insisted that ruption into an advantage for anyone who relies “yesterday’s toll roads were stop and wait, but on a tolled commuter lane or freight corridor. today’s tech-enabled tollway is go go go”. It’s “It is an amazing time to be in the transporbeen years since he’s had to make that argu- tation industry,” said IBTTA’s 2020 President ment—because by now, most drivers have Samuel Johnson, Chief Operations Officer for come to expect all-electronic tolling. the Transportation Corridor Agencies (TCA) “Some of us still remember having to line up in Irvine, California. “One of the big opportuat a toll booth and deposit a coin or token in nities is our industry adjusting to the demand a bin,” he says. “But anyone who has tried to for consumer convenience, driven by Mobilitynavigate through a congested urban corridor, as-a-Service and changes in vehicle ownership.” or pass seamlessly between two or more express More broadly, “the reality of groundbreaking lane systems, has experienced the powerful technologies, micro transportation services and consumer influence dictate that transportation Pictured: PA Turnpike, America’s first professionals think differently about the future. Superhighway opened in 1940. It’s just what tolling does for a local or regional economy.” From a highway user’s standpoint, he added that “no one should ever just build a tolled facility without demand. It has to be linked to people’s willingness to pay, and the reason they’re willing to pay is that there’s an identified need. There’s an economic opportunity.”

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FEATURE - IBTTA

ABOUT THE AUTHOR Bill Cramer has 30 years of experience in communications, public relations, marketing, government relations, politics and development – all focused on creating a message and delivering that message to various audiences. Cramer has worked in the association industry for more than 15 years, in the private sector for 12 years and throughout, with all levels of government. Currently, Bill serves as communications director for the International Bridge, Tunnel and Turnpike Association (IBTTA), where he manages a team of communications consultants, directs all internal and external member communications and is responsible for leading the strategic development and implementation of the association’s Moving American Forward Campaign.

The tolling industry, in particular, has to give thought to new payment models, customer changes and its solid business model of delivering and maintaining infrastructure, with the reality that money still doesn’t mean we can build our way out of congestion. Balancing these aspects in the new era may push our agencies to broader thinking and participation in the overall success of mobility, with user fees playing a central role.”

Five Minutes = $105 Million

Tolling agencies have also been paying attention to the converging trends that touch on freight logistics—from skyrocketing demand for heavy-duty trucks, to a growing shortage of skilled and available driers, to the urgent need for reliable freight routes. In 2014, local media in Tampa, Florida reported on a tolled 32 INDUSTRY TODAY

connector between Interstate 4 and the Selmon Expressway that saved truckers so much time they could fit an extra load into their work day—showing that time is money for freight carriers as well as the customers they serve. “Even with a toll required to take the connector, the time saving makes it a worthwhile route,” the Tampa Tribune reported at the time. And “once modifications are made to the old truck route…even more tractor-trailers will begin using the connector.” And then there was the simple, practical equation we heard in 2014 from United Parcel Service Vice President Pat Thomas, then serving as chair of the American Trucking Associations. “If every one of our drivers sits in traffic for five minutes every day, that costs our company $105 million a year,” he said at the time. “The worst [highway] bottlenecks are very

FEATURE - IBTTA

problematic for our members, as well as the motoring public,” he added six months later, in an address to IBTTA’s 82nd Annual Meeting and Exhibition in Austin, TX. “So there is a value proposition to doing some different things that would move traffic along at a better rate.”

Investing Now to Save Later

No road (or Internet connection or cell phone plan) is ever free, and that means the best way to deliver on Thomas’ value proposition is to invest now in the roadways we’ll need tomorrow. The United States faces a multi-billion dollar shortfall in highway infrastructure investment, with little appetite for the public investment or associated tax increases that would clear the backlog. That reality makes tolling an important tool in the toolbox to get dollars flow-

ing to highway maintenance and reconstruction—which is the surest way to keep freight traffic flowing for businesses. “One of the best moments for our industry is when we hear genuine, heartfelt success stories from business operators and drivers who are surprised and thrilled that tolling made such a difference for their day-to-day operations,” Jones says. “It really reinforces what we already know: We don’t toll for the sake of tolling, we build toll roads, bridges and tunnels to serve a purpose, to provide free-flowing mobility that keeps our country and communities growing and vibrant.” And for the manufacturers along that road, the efficiency of tolled infrastructure might be the difference between completing and billing the order or missing the opportunity.

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FEATURE - NORTH CAROLINA STATE UNIVERSITY

FEATURE

NEW SUPPOR BROADBAND

he Institute for Emerging Issues (IEI) at North Carolina State University has announced the formation of a new support program designed to make North Carolina “first in digital inclusion.” 34 INDUSTRY TODAY

FEATURE - NORTH CAROLINA STATE UNIVERSITY

RT PROGRAM SEEKS D SUCCESS FOR ALL BAND-NC seeks to help NC become the first state in the nation where every county has a digital inclusion plan by the end of 2022.

FEATURE - NORTH CAROLINA STATE UNIVERSITY

to equip a range of stakeholders with knowledge of how to utilize broadband: enabling young learners to do homework online and older learners to retrain online, expanding job possibilities through telework, improving access to telehealth services, expanding business markets, improving crop yields and adding efficiency to farm operations. Thanks to bipartisan leadership, North Carolina is already making progress in ensuring

broadband is available to people across the state. But there is an adoption problem—right now, only 59% of people with access to broadband are subscribing to it. With lower rates of adoption in rural counties and among lower income families, if the state doesn’t plan now to include people digitally, those people and their communities will get further and further behind. Data from the NC Broadband Infrastructure Office shows wide disparities in adoption of

Pictured above: Nelle Hotchkiss (left), senior vice president and chief operating officer of association services for North Carolina’s Electric Cooperatives, Curtis Wynn, president and CEO, Roanoke Electric Cooperative and president of the National Rural Electric Cooperative Association and Leslie Boney, the director of the Institute for Emerging Issues, jointly announce the formation of BAND-NC on February 10, 2020, at the ReCONNECT to Technological Opportunity forum in Raleigh, NC. 36 INDUSTRY TODAY

FEATURE - NORTH CAROLINA STATE UNIVERSITY

In North Carolina, only 59% of people with access to broadband are subscribing to it. broadband services, with both a rural-urban and an income divide. Rural households subscribe at lower rates than urban households (as low as 49.7% in Graham County and as high as 89.7% in Wake County). Households making under $20,000 a year subscribe at a 51.2% rate compared to 93.8% of those making $75,000 or more a year (https://iei.ncsu.edu/band-ncdata/).

We announced BAND-NC at the end of the Emerging Issues Forum, ReCONNECT to Technological Opportunity, a day-long strategy session in Raleigh encouraging government, business, education, nonprofit and faith planners to begin planning now to take full advantage of high speed internet services. As part of BAND-NC, the North Carolina Broadband Infrastructure Office and IEI will host a series of meetings to assist community leaders in developing and implementing county-level digital inclusion plans. Roanoke Electric’s work will support development of plans in Bertie, Halifax, Hertford, Northampton, Gates,

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FEATURE - NORTH CAROLINA STATE UNIVERSITY

Perquimans and Chowan counties, while North Carolina’s Electric Cooperatives will fund three selected county plans from among its 93-county service area. “As the power provider for rural North Carolina, our state’s electric cooperatives have an important role to play in addressing the state’s digital divide, and we’re proud to support this comprehensive broadband adoption initiative,” said Nelle Hotchkiss, senior vice president and chief operating officer of association services for North Carolina’s Electric Cooperatives. “BAND- NC will help further bridge our state’s broadband gap by providing rural communities the resource they need to benefit from broadband technologies and the many opportunities they provide.” This initial investment is a good start, but now we’re working on finding additional investors. Over the next few months, the Institute for Emerging Issues is seeking other investors in BAND- NC, with the goal of making $5,000 grants available across the state to counties developing digital inclusion plans. That won’t be enough for any organization to fully implement a digital inclusion plan, but we think it will Pictured: Leaders and community members from across the state of North Carolina listen during the Institute for Emerging Issues ReCONNECT to Technological Opportunity Forum on February 10. The forum explored what their communities can do to leverage high speed Internet in an equitable way.

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FEATURE - NORTH CAROLINA STATE UNIVERSITY

provide the jump-start counties need to develop one. Plans will start coming in this August. We can’t wait to see where this goes. The Institute for Emerging Issues (IEI) at North Carolina State University is a nonparti-

san public policy organization focused on the state’s vibrancy and economic competitiveness. Since 1986, the Emerging Issues Forum has attracted leaders in business, education and public policy to discuss issues with profound

ABOUT THE AUTHOR Leslie Boney is the Director of the Institute for Emerging Issues at NC State University. Leslie leads the Institute’s efforts to identify key issues of importance to the state and develop consensus for action to address them.

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FEATURE - NORTH CAROLINA STATE UNIVERSITY

implications for North Carolina’s future prosperity. For more than three decades, the Forum has helped catalyze the policy reforms, public investments and other proactive responses required to build an enduring capacity for progress in North Carolina. Roanoke Electric Cooperative provides service to 14,500 members in Bertie, Hertford, Halifax, Northampton, Gates, Perquimans and Chowan counties. Chartered in 1938 to provide light and power to farms, the co-op today serves as an engine of economic development and provides educational, recreational and community assistance services to enhance the quality of life of its member-owners throughout the diverse communities it serves. Roanoke Electric

Cooperative is an equal opportunity provider and employer. Driven by service and inspired by innovation, North Carolina’s Electric Cooperatives are building a brighter energy future for 2.5 million North Carolinians. Beyond providing electricity, each of the 26 not- for-profit cooperatives is investing in their communities and delivering new energy solutions to improve quality of life for co-op members in 93 of North Carolina’s 100 counties. The North Carolina Department of Information Technology’s Broadband Infrastructure Office leads the statewide initiatives to expand high-speed internet access, adoption, and use for all North Carolinians. INDUSTRY TODAY 41

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

FEATURE

$3B ECONOMIC IMPACT PREDICTED FOR AIRPORT PRODUCTION CAMPUS

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FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

the collection of smart people. The economic impact of this campus will be big and built on the success of individual companies. To spur economic impact with the adoption of INDUSTRY TODAY 43

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

advanced manufacturing, we must address a specific problem for the manufacturer. The bottom line: a company needs to make money and realize tangible benefits from advanced manufacturing adoption. Small wins combine to become big wins and the proverbial snowball is rolling and growing.

Success Criteria for Adoption

There are two critical success criteria for the adoption of an advanced manufacturing process: 1. It must solve a technical problem. 2. It must make good business sense. Additive manufacturing, a suite of process technologies that build parts layer by layer, is proving itself to be a helpful tool for solving manufacturing problems across the product value chain from rapid design iterations and 44 INDUSTRY TODAY

Pictured above: Pittsburgh International Airport CEO Christina Cassotis hands Arencibia president Joe Arencibia a 3D-printed key at an event announcing Arencibia as the first tenant of Neighborhood. Credit: Pittsburgh International Airport; below: Pittsburgh International Airport CEO Christina Cassotis and University of Pittsburgh Chancellor Patrick Gallagher sign a Memorandum of Understanding at an event announcing Neighborhood 91. Credit: Pittsburgh International Airport; Infographics courtesy of The Barnes Group.

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

prototyping, to manufacture of short lead time tooling, and finally to production of end use parts and systems with higher performance than is possible with traditional manufacturing. Manufacturers are increasingly cognizant of how AM can help solve technical challenges for their businesses. However, the path to a positive business case is not as clear cut.

The Challenges

The Solution: An Ecosystem of Businesses

Neighborhood 91 is the first development in the world to both condense and connect all components of the Additive Manufacturing (AM) supply chain into one powerful production ecosystem. Located adjacent to Pittsburgh International Airport, the Innovation Campus broke ground in December 2018 with plans to feature office space, warehouses and industrial manufacturing, among other facilities.

MACHINE OBSOLESCENCE

DISPERSED & FRAGMENTED SUPPLY CHAIN

HIGH OPERATING COSTS UNDER UTILIZED EQUIPMENT

SKILLED WORKFORCE AVAILABILITY SUSTAINABILITY NEGATIVE BUSINESS PRACTICES

TECHNICAL DATA AVAILABILITY

LACK OF INNOVATION

MAINTAINING HIGH TECHNICAL CAPABILITY FOR DIVERSE MANUFACTURING PROCESSES

OVER BUILT FACILITIES

INCONSISTENT PRODUCTION VOLUMES

To harness the technical opportunities presented by AM, a manufacturer must be able to make (or save) money using the technology. This can take the form of cost reduction, schedule reduction, technical risk reduction or performance improvement, all of which can be equated to someone making or saving money somewhere along the supply chain. The AM process is just one step in a larger

manufacturing chain, which can include material, printing, post-processing (machining or other surface finishing), heat treatment, testing, and inspection. Today, that supply chain is fragmented with process providers often separated by thousands of miles. So, what are some of the biggest challenges that manufacturers adopting AM face?

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FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

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FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

Neighborhood 91 will house an ecosystem of businesses that all contribute to the additive manufacturing industry, including those that specialize in powder production, additive manufacturing (a.k.a. 3D printing), heat treatment, post-processing, testing and analysis. The 195-acre campus will offer the following: • Powder, parts, post-production, testing and analysis; • Recycling of argon, helium and other noble gases, which are essential elements of additive manufacturing and can account for up to 60 percent of the total cost; • Energy efficient and resilient microgrid; • Common powder storage facilities; • Efficiencies in production/post-production and delivery; • Tenants’ cost savings from printing enabling a lean production cycle; • Reduced transportation costs; • Transportation logistics including airport, interstate, and rail access. These aspects of the Neighborhood 91 campus will enable tenants to realize immediate cost reductions due to an affordable and stable energy source, an efficient gas system, attractive leasing rates, and a reduction in the principal and interest on capital expenditures. Sustained impacts will be realized by the clustering of innovative companies and a partnership with the University of Pittsburgh for the development of a world class workforce and for research activities to feed campus innovation INDUSTRY TODAY 47

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

for generations.

Neighborhood 91: Analyzing the Impact

Neighborhood 91 directly solves challenges faced by manufacturers. It lowers the cost of doing business and boosts innovation therefore minimizing the barriers of entry for a new technology. The concentration of skilled people and sharing of advanced manufacturing capabilities at the campus creates agglomeration economies and labor marketing pooling which will drive decreased learning curves and reduce underutilized resources. It also enables brand new business models that create new sources of revenue 48 INDUSTRY TODAY

for companies. The Neighborhood 91 impact is summarized into (6) key areas:

REDUCTION IN PRODUCTION COSTS

SIMPLIFIED SUPPLY CHAIN DUE TO CENTRALIZED CAMPUS

WORKFORCE DEVELOPMEN and R&D BOos PRODUCTIVIT AND INNOVATION

E NT st TY

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

Why Neighborhood 91? Resource sharing, like neighbors share tools, is at

the core of Neighborhood 91. Pittsburgh has 90 unique neighborhoods – the 91st will be a game changer for the additive manufacturing industry.

Why an Airport? Access to transportation and land for development. Why Pittsburgh? Leader in Advanced and Additive Manufacturing, affordability, quality of life, and a ready and willing workforce. Pennsylvania is #1 state for economic diversity making it a stable place to do business.

Why Additive Manufacturing? AM enables lightweight designs, material usage reductions, cost reductions, lead time reductions, part count reductions, performance improvements, and more.

Helping the Manufacturer

If big economic impact requires a series of small economic impacts, then it is all about driving change for individual companies. Let’s look at a few specific opportunities Neighborhood 91 creates for manufacturers across the industrial supply chain. Arencibia, a founding member of $

AGGLOMERATION ECONOMIES & LABOR MARKET POOLING

REDUCtion in ENERGY CONSUMPTION & EMISSIONS

ECONOMIC IMPACT ON THE STATE OF PENNSYLVANIA

Neighborhood 91, is an industrial gas producer which is enabling low cost advanced manufacturing by installing onsite gas storage and recycling ready to be tapped by tenants. These expensive gases are used in powder production, printing, and heat treating; therefore, a cost reduction will have a significant impact on the recurring cost for part production by the manufacturers on campus. Company B is a service bureau who produces parts made using powder bed fusion. They have serial production contracts but are struggling to maintain a sustainable profit margin due to a variety of reasons including overhead costs, customer pricing pressure, and maintenance of a large variety of equipment (required to retain schedule control). Neighborhood 91 offers a path to reduced overhead costs and a concentrated supply chain where the company can decide if they use a partner to deliver INDUSTRY TODAY 49

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

ABOUT THE AUTHORS LAURA ELY Laura Ely is the ADDvisor® Services Leader at The Barnes Group Advisors and a strategic advisor for Neighborhood 91. She leads a team of industry recognized additive manufacturing experts in providing technical and strategic solutions to solve customer problems. Her combination of technical, strategic and communication skills make her uniquely positioned to help companies drive technological change. Learn more: https://www.thebarnes.group/ Laura@thebarnes.group

DAVID STORER David Storer is Director of Business Development at Allegheny County Airport Authority. The Allegheny County Airport Authority operates both Pittsburgh International Airport and Allegheny County Airport and is dedicated to the safety and security of passengers, employees and all other users of the airport. The Airport Authority oversees all aspects of airport operations including new development, environmental issues, airline and tenant management as well as airfield operations. He oversees commercial development of more than 8,800 acres for the ACAA and is the key project manager for the Neighborhood 91 development. Learn more: https://neighborhood91.com/

post-processing solutions versus maintaining the in-house capability. Company C is a system manufacturer who is adopting AM for production support, like tooling, and is moving into end part production. They have an application that will hugely benefit from incorporating cold spray into 50 INDUSTRY TODAY

the manufacturing process, however they only have enough production volume to utilize 50 percent of the machine capacity. Burdening the business case with the purchase of an entire machine introduces a level of business risk that has stalled the adoption of a winning technical solution. Neighborhood 91 offers a shared asset

FEATURE - NEIGHBORHOOD 91 PITTSBURGH AIRPORT

“…in the innovation economy, a company’s success depends on more than just the quality of its workers – it also depends on the entire ecosystem that surrounds it. Cities are not just a collection of individuals but complex, interrelated environments that foster the generation of new ideas and new ways of doing business. For example, being around smart people makes us smarter and more innovative.” - Enrico Moretti, The Geography of Jobs option to lower cost and risk and enable access nomic growth. The grand total Neighborhood to a machine and achieve the adoption business 91 investment is forecast at $570M over 10 years with the creation of 1,000 jobs. An ecocase. nomic impact analysis shows this investment will create a Value-Added Impact of $3B and The Big Impact: By the Numbers The individual Neighborhood 91 tenants bene- create over 6,000 jobs. That is, by any measure, a very big economic fit from the growing Pittsburgh ecosystem, and the region will benefit from the combined eco- impact. INDUSTRY TODAY 51

FEATURE - THE UNIVERSITY OF KENTUCKY

FEATURE

TURNING COAL INT CARBON FIBER

FEATURE - THE UNIVERSITY OF KENTUCKY

The University of Kentucky is transforming coal tar pitch into high-value carbon fiber for uses in cars, aircrafts and sporting goods.

FEATURE - THE UNIVERSITY OF KENTUCKY

UK’s Center for Applied Energy Research (CAER) is home to the largest carbon fiber spinline at any academic institution in North America, and over the past decade, CAER

researchers have built a solution spinning line that draws visitors, collaborators and research partners from across the state of Kentucky, the nation, and the world.

Carbon fiber composite is a stiff, lightweight alternative to materials such as steel, aluminum and fiberglass composites, and has become increasingly important to the aerospace and automotive industries. With support from the U.S. Department of Energy, scientists at UK’s Center for Applied Energy Research, along with industry partners, are upgrading coal tar — a byproduct from metallurgical coke production for the steel industry — into mesophase pitch, a liquid crystal, which can then be spun and thermally converted to carbon fiber. If successful, this new product could increase the value of coal tar pitch by more than 50 times its current value. 54 INDUSTRY TODAY

FEATURE - THE UNIVERSITY OF KENTUCKY

Weisenberger now leads CAER’s materials technologies research team. The group has assembled a talented team of researchers, scientists, and technicians that are focused on carbon research and development. The group is one of the world’s leading research organizations specializing in carbon fiber research, discovery, and innovation. Carbon fiber can now be found in any number of products. Boeing makes its 787 Dreamliner out of carbon fiber. Golf clubs, tennis rackets, and bicycles have been lighter – and more sturPictured: Matt Weisenberger, Associate Director for Materials Technologies at CAER, in front of the Center’s carbon spinline.

dy – thanks to the material. Wind turbine blades are often built with carbon fiber. And, yes, even those broom handles that gave Weisenberger his first blisters can be made from carbon fiber. Recently, CAER received a $1.8 million grant from the U.S. Department of Energy (DOE) to transform coal tar pitch into high-value carbon fiber for use in aircraft, automobiles, sporting goods, and other high-performance materials. Researchers and industry partners will be converting the coal tar, which is a byproduct from coke production for the steel industry, into mesophase pitch — a liquid crystal — which can then be spun and thermally converted to carbon fiber. If successful, this new carbon fiber INDUSTRY TODAY 55

FEATURE - THE UNIVERSITY OF KENTUCKY

product could increase the value of coal tar pitch by five to 55 times of its current value, and find applications in high stiffness, low-weight composites. Weisenberger and the rest of his materials technologies research team are attempting to do the once unthinkable. They are seeking to turn the fuel that powered America’s industrial revolution into a material that many believe will drive the nation’s manufacturing future. Pictured:CAER’s Ruben Sarabia Riquelme, foreground, and Ashley Morris work on the Center’s carbon fiber spinline. 56 INDUSTRY TODAY

This project will support development of simplified multifilament melt spinning of the mesophase pitch to produce “green” (not yet carbonized) fibers, and subsequent continuous thermal processing, or oxidization, of those green fibers. The CAER team will then create woven preforms from the fibers for composites manufacture, as well as chopped carbon fiber for filled thermoplastics suitable for injection molding. As part of the project, CAER researchers will be working with two leading industry partners, Koppers Inc. and Materials Sciences LLC. “This project is a perfect example of the work

FEATURE - THE UNIVERSITY OF KENTUCKY

that interests us here at CAER,” said Rodney Andrews, the center’s director. “It will allow our carbon fiber researchers to potentially give new life to a coal byproduct. We are excited to be at the forefront of developing coal as a valued precursor for products. At the same time, this project also gives us an opportunity to work with industry leaders to develop solutions and new technology that can be taken into the marketplace. That has been a hallmark of our research.” The first challenge of the project, according to the CAER team, was getting the coal-based res-

idues into a “spinnable” form. That’s where the team’s immense carbon fiber experience came in handy. Most carbon fiber research teams specialize in utilizing one type of source material or another. CAER has carved out a unique space to operate in carbon fiber research and development: they are known for their ability to spin almost any material that has the proper characteristics. “We built our spinline by hand,” Weisenberger said. “Graduate students, postdocs, research staff – it has been built and modified by us over the years. In addition, we have had the INDUSTRY TODAY 57

FEATURE - THE UNIVERSITY OF KENTUCKY

great benefit of working with so many different source materials over the years. That experience has been invaluable, as it has provided us with great insight on how to work with and modify materials to ensure it will be successful when we start spinning.” The concept of turning coal into highvalue carbon materials has been a brainchild of CAER researchers for many years. Recent support from federal agencies like the U.S. Department of Energy and other organizations have brought resources and focus to these research efforts. Though research in this area is still early-stage, Weisenberger sees great promise in the work. 58 INDUSTRY TODAY

“This is an exciting project for our research team,” Weisenberger said. “Being able to efficiently upgrade a coal byproduct into high-value carbon fiber for composites would be a terrific benefit to Kentucky’s and the nation’s manufacturers. It would add significantly to the coal value chain, further establishing Kentucky as a global leader in carbon fiber research and development.” The packages of flour, cornmeal, grits, and cake mixes on the shelves at Weisenberger Mill display a Kentucky Proud emblem, a branding campaign from the Kentucky Department of Agriculture to help market and sell Kentuckybased products across the Commonwealth and

FEATURE - THE UNIVERSITY OF KENTUCKY

David Melanson is the assistant director for external affairs and development at the University of Kentucky Center for Applied Energy Research. Contact information: https://caer.uky.edu/ david.melanson@uky.edu beyond. As a Kentucky kid who received his bachelor’s degree from nearby Georgetown College before earning his master’s and Ph.D. in materials science and engineering from the University of Kentucky, Weisenberger wears that Kentucky at the right time, he may be looking up at the pride everywhere he goes. And if you catch him sky and dreaming – dreaming about how the production of carbon fiber may hold the key to changing his home state’s manufacturing Pictured: Coal-derived carbon fiber at various stages of the spinning process. economy. INDUSTRY TODAY 59

PROFILE | WELLONS POWER

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60 INDUSTRY TODAY

RY USE

WELLONS POWER | PROFILE

As a biomass boiler OEM and EPC firm, Wellons specializes in biomass energy systems in the steam and power markets. David Soyka reports.

INDUSTRY TODAY 61

PROFILE | WELLONS POWER

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WELLONS POWER | PROFILE

iomass is a carbon-neutral sustainable fuel source that can be used to create electricity. Renewable organic waste, in particular wood waste, that would otherwise get dumped in landfills, burned, or just left on the ground to decompose, is burned in a boiler furnace to produce steam which can drive a turbine that generates electricity. Properly-engineered, biomass can make a difference—both economically and environmentally. Wellons offers a breadth of capabilities and experience to help industry make that difference.

Pictured: Pressure part installation on a 500,000 PPH bagasse-fired boiler. sales@ciscocems.com 303-790-1000 www.ciscocems.com

CiSCO is proud to be a part of another successful project with Wellons where we supplied the CEMS and the DAHS!

Custom Instrumentation Services Corp (CiSCO) provides complete high quality CEMS and Data Acquisition and Handling Systems (DAHS) to monitor process gases, flow, and opacity for EPA regulatory compliance and process control. The steady growth of our company since 1985 is attributable to our outstanding service, top quality products as well as word-of-mouth referrals and repeat business. Find out how the CiSCO difference can work for you!

INDUSTRY TODAY 63

PROFILE | WELLONS POWER

FUEL | AIR | GAS | ASH www.processbarron.com/air-handling 205-663-5330 64 INDUSTRY TODAY

WELLONS POWER | PROFILE

Wellons offers an extensive background in engineering, providing a wide range of woodfired and other energy systems, as well as products and services to the forest products industry. Wellons’ Atlanta office specifically serves the industrial biomass power-boiler market as an original equipment manufacturer (OEM) providing engineering, procurement and construction (EPC) contracting services. According to Mike Cantrell, General Manager for the Atlanta office, biomass generates the

bulk of our boiler business. That said, Cantrell adds, “We have the capabilities and resources to develop innovative designs and manage projects to deliver any kind of industrial steam and power project.” Demand for biomass energy systems typically arises when a business looks to repurpose Pictured: Five-field electrostatic precipitator to reduce particulate matter (PM) for US Sugar; above: Cyclone separator for removing sand particulate from gas stream, upstream from the ESP. INDUSTRY TODAY 65

PROFILE | WELLONS POWER

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66 INDUSTRY TODAY

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old systems that might otherwise be retired with units that are more efficient and more environmentally friendly. Needless to say, the forest products and pulp and paper industries, which generate considerable wood waste, are primary markets. Wellons recently designed and installed a 500,000 pounds per hour (PPH) biomass boiler system for U.S. Sugar Corporation in Clewiston, Fla. The system is fueled by bagasse, the fibrous material left over after sugarcane stalks are crushed to extract their juice. This clean-burning biofuel is used to power the company’s sugar manufacturing facilities. Pictured: Custom engineered and configured boiler tubes arriving from selected manufacturer; right: Stack erection including tuned-mass damper and external insulation.

WELLONS POWER | PROFILE

While Wellons ordinarily markets directly to clients, they also respond to requests for proposals (RFP)s. Price is always a consideration, but as Craig Smith, Atlanta Director of Sales, points out, reputation counts for a lot. “Most of our clients already have a pre-conception of us, in part, because of Wellons overall reputation in designing and installing various types of energy systems. Our experience with both turn-key and custom builds provides less risk for the client in ensuring a properly designed and operational system delivered on-time and within budget.” An additional advantage, Cantrell notes, that, “Wellons is self-performing. Although we

“Wellons recently designed and was the EPC contractor for a 500,000 PPH bagasse-fueled boiler system for U.S. Sugar Corporation in Clewiston, Fla.”

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INDUSTRY TODAY 67

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WELLONS POWER | PROFILE

Pictured: – Wellons turn-key installation services.

sub-contract certain aspects, such as concrete, insulation and electrical work, all other engineering and trades are provisioned in-house. There’s a certain cost-effectiveness in using a proficient team that not only has the knowledge and skills to complete a project, but works efficiently both internally and with clients.” While the parent company has extensive manufacturing capabilities, Wellons’ Atlanta office prefers to partner with fabricators local to the client. “It saves time and expense,” Cantrell explains. “You avoid lag time lost as

INDUSTRY TODAY 69

PROFILE | WELLONS POWER

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WELLONS POWER | PROFILE

“Wellons designs, manufactures, installs and services biomass energy systems, as well as providing general EPC contracting services.”

well as costs in shipping over longer distances.” Wellons additionally sources globally when project economics and schedule require.

Providing the Right Fit

As a mid-sized company Wellons is also somewhat unique. “Most of our competitors are small companies that don’t offer our entire range of products and services,” Cantrell says. “There are also some large companies, mostly based in Europe, but with them you kind of miss the direct personal connection you get from us.” Like the Goldilocks fable, Wellons provides the fit that is just right. Cantrell points out that while sourcing labor is a challenge, as it is for most employers today, “We have a pretty good network in place. Our construction superintendents all have a INDUSTRY TODAY 71

PROFILE | WELLONS POWER

WELLONS COMPANIES Wellons companies includes Wellons Canada, Wellons Energy Solutions, and Salem Equipment. Primary products include steam generation, thermal oil heating, direct fired heating, combined heat and power, and biomass fired energy systems, as well as lumber dry kilns and sawmill equipment. In addition, Wellons companies offer a wide range of services encompassing design, engineering, manufacturing, installation and repair, operations and maintenance and parts for this wide range of services. Headquarters and main manufacturing are located in Vancouver, Wash., with additional manufacturing facilities in Oregon, British Columbia and Quebec totaling over 215,000 square feet. Additional sales and support offices are located throughout the United States and include the Atlanta Power Group office, as well as an agent representative in Moscow, Russia. They employ more than 350 people. Wellons is accredited by the American Society of Mechanical Engineers (ASME) for the manufacture of power and heating boilers and pressure vessels. They are also accredited by the National Board of Boiler and Pressure Vessel Inspectors to perform repairs and alterations for both shop and field locations. Since incorporating in 1964, Wellons has designed and manufactured more than 350 biomass boiler and energy systems, over 50 cogeneration projects and in excess of 1500 lumber dry kilns.

following among tradespeople who like to work with us and generally they can find the people with the skill sets they need.” On the operational side, Wellons’ in-house systems design utilizes technology that helps clients make the best use of their own labor resources. “Technology has certainly improved the efficiency of running these systems,” Cantrell notes. “We’ve engineered user interfaces that make it easy for operators to monitor and 72 INDUSTRY TODAY

WELLONS POWER | PROFILE

COLUMBIA WATER TECHNOLOGY Based in Vancouver, Washington, Columbia Water Technology is the premier provider of high-quality professional water treatment. Columbia Water Technology strives to combine excellent service with up-to-date technological performance in a tailored chemical program suited for your facility. We provide top grade chemical products, a complete site testing program, and monitoring of all significant water sources on site. Our services include pretreatment, boiler and cooling, condensate networks, and wastewater streams. We also have professional, experienced personnel that implement pre-treatment and maintain specialty equipment. Columbia Water Technology’s services are all-inclusive with on-site consultation to improve plant functionality and efficiency. We are also available for any special studies that may be needed, like resin studies, dust suppressant studies, in-depth lab analysis, facility efficiency improvements, etc. No matter what your requirement in water chemistry is, Columbia Water Technology can help you. Call to schedule a consultation today! 360.718.7031

Pictured left: Plant System HMI Controls; above: Wellons Corporate Headquarters in Vancouver, Washington.

control their systems in ways that are more productive than ever. Wellons primarily serves clients based in USA, Canada and Mexico. Typical turnaround from delivery to installation and start-up for large industrial boilers is roughly two years, though that does, of course, vary depending on the complexity of the project. Cantrell emphasizes that, “We service everything we install. Even after the warranty has expired, if a client needs anything, they can depend on our people who are familiar with the system and are dedicated to providing optimum levels of customer care. Every system we design and build adheres to our high standards for safety, scheduling and performance, achieved on-time and under budget.” INDUSTRY TODAY 73

PROFILE | MARINE CONCEPTS

CONCEPTIN COMPOSITE

Design Concepts/Marine Concepts is the leading source for composites design, engineering, tooling and detailed part fabrication. David Soyka reports. 74 INDUSTRY TODAY

MARINE CONCEPTS | PROFILE

NG ES

INDUSTRY TODAY 75

PROFILE | MARINE CONCEPTS

In 2006, then owner Bob Long launched JRL Ventures as a separate brand to focus on non-marine sectors. In 2016, the company was reborn as Design Concepts/Marine Concepts (DCMC) following its acquisition by Leisure Products Holding to capture even more share across all its markets.

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“We started out as a tooling supplier, growing over the years into a full-service engineering and manufacturer of CNC plugs, composite molds, CNC parts and composite parts for marine customers,” notes President John Burgess. “Then we started looking at how to leverage our skills sets in other composites for other industries.”

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76 INDUSTRY TODAY

MARINE CONCEPTS | PROFILE

These include entertainment (specifically theme rides), aerospace, architecture, military, simulation, transportation and wind. Success in these various new businesses resulted in more than just an eventual name change. In 2012, DCMC quadrupled manufacturing space from 80,000 square feet to a total of 300,000 square feet between facilities in Cape Coral and Sarasota, Fla. In 2017, DCMC installed Mill 6, the fastest and largest (68 ft. x 24 ft. x 14 ft.) technology capable of milling structures up to 70 feet long in one base set. That same year it was acquired by Patrick Industries, a major manufacturer of component products and distributor of building products and materials for the recreational vehicle, manufactured housing, marine and other industrial markets. “As part of Patrick Industries, we have more growth potential than ever,” comments Burgess. “In addition to being a strong financial backer, Patrick provides us with relationships to over 80 of its business units serving a variety of customers.” The underlying reason behind DCMC’s impressive growth over the years is what Ross Kennedy, Director of Business developments, describes as, “Our full suite of capabilities. From design and engineering of prototypes to final product manufacture, our dedicated team of experts provide complete solutions constructed to the most exacting specifications. Whether it’s a large yacht or a small detailed part.”

INDUSTRY TODAY 77

PROFILE | MARINE CONCEPTS

Full-Service Partnership

He adds, “What makes us unique is that we aren’t just another mill filling customer orders. We are a full-service, end-to-end provider, with in-house staff to assist customers with a range of composites-tooling and fiberglass manufacturing capabilities.” These include: • new designs and product changes • plug and mold construction • repair and refurbishment of current tooling • engineering design and documentation • reverse engineering • metrology • mold and part laser scan validation • patterns and cold mold kits 78 INDUSTRY TODAY

MARINE CONCEPTS | PROFILE

“DCMC partners with customers. Dedicated project managers ensure a solution is delivered on time and on budget, as well as anticipate problems and correct them before they happen.”

• composite part production • advanced composites. Moreover, Kenney emphasizes a particularly distinguishing DCMC approach to all its project work. “We view our customer relationships as partnerships. We assign dedicated project managers who stay on top of every step of the design and development process, to not only ensure a solution is delivered on time and on budget, but to anticipate problems and correct them before they happen.” With two 3-axis routers and six 5-axis CNC milling machines, in addition to the most advanced software, DCMC can create models and plugs quickly so products can get to market faster. Machines are just one part of that INDUSTRY TODAY 79

PROFILE | MARINE CONCEPTS

“DCMC is a full-service, end-to-end provider, with in-house staff to assist customers with a range of composites-tooling and fiberglass manufacturing capabilities.” equation, however. Trained mill operators and experienced craftspeople ensure the highest quality achieved at the most efficient productivity. The company employs about 350, encompassing talented designers, engineers, project managers, master carpenters and tradespeople. Even in today’s tight job market, Kennedy explains how DCMC is able to attract qualified people. “We’re always on the lookout for the next rock star,’ the person who has the skill set we need to fill in. While they are sometimes hard to find, DCMC has a bit of an edge to attract them. Most mills do the same kind of tasks over and over again. Because we’re more project-based, the work here offers more variety and is more challenging.” He adds that, “We provide in-house training and partner with our vendors to stay on top of 80 INDUSTRY TODAY

MARINE CONCEPTS | PROFILE

MAKING COMPOSITES A TREAT Founded by Augusto “Kiko” Villalon in 1976, Marine Concepts was the first composite company to manage projects from design to production, all under one roof. First customers included Regal Boats, Chaparral Boats and Cobia Boats. Even back then, company innovations floated into other markets, most notably the 25-foot tall fiberglass ice cream cone shaped buildings made for the Floridabased Twistee Treat franchised chain of ice cream restaurants.

new technologies. DCMC also offers a milling training program in conjunction with two local technical colleges. So our employees can expect to grow on the job. Also we offer competitive salaries and benefits that are equal to if not better than anyone else’s. Another huge factor is that as part of Patrick Industries, we have a bigger company behind us that ensures longer term stability than your average mill operation. We’re just a good place to work.” Kennedy says that with the exception of some projects that might involve more advanced design concepts, there isn’t any dedicated split in functions between marine and non-marine projects. “The skill sets are the same,” Kennedy explains. “We are nimble enough that we can INDUSTRY TODAY 81

PROFILE | MARINE CONCEPTS

employ our core competencies to take on just ern plug construction. Equally of note over the last five years is 3D about any project and deliver it faster than anyone else. We’re used to thinking on our feet. printing. “We’ve done a number of projects with large 3D printers for parts manufacture. Once printed, the parts still need to be milled, Innovative Technologies Over the years DCMC has incorporated the so the technology pairs well with our competenlatest technologies to better develop its prod- cies, allowing us to be even faster and cost-efucts. A particular area of focus is the advance- fective,” Kennedy says. “Five-axis machining ment of plug-building technology, which the isn’t going away by any means, but there are Mill 6 achieves as the highest standard for mod- applications where 3D printing is becoming 82 INDUSTRY TODAY

MARINE CONCEPTS | PROFILE

more advantageous.” The use of new materials is another driver of new business for DCMC. But whatever the material, the main considerations remain the same: design a product that can be made to the tightest tolerances that can be manufactured with quick lead times at the highest quality. “We’re looking to grow the non-marine side of our business even as our marine business continues to do well,” Kennedy says. INDUSTRY TODAY 83

Advertiser's Index

VOLUME 23 • ISSUE 1

ATOS............................................................................ IFC

ProcessBarron..............................................................64

CISCO...........................................................................63

OHAUS......................................................................OBC

Columbia Water Technology..................................... 68 S I Ipsen........................................................................... IBC

Spi-Oregon & Idaho Specialty Products & Insulation..................................................66

ITW Performance Polymers........................................ 76

Sunbelt Fabricators.....................................................67

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

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