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STEEL FABRICATORS’ REVIEW

WINTER SPRING 2011 2010

SELVAGGIO STEEL

Making Money in a Challenging Structural Fabrication Market Selvaggio Steel was established in 1957 as a family business – and remains a family business today under the direction of brothers Mark and Tony Selvaggio. The firm has been an active structural and miscellaneous fabricator since its founding. With the current market levels of steel construction, we spoke to Mark and Tony about the main question that many fabricators must answer:

“In a Challenging Market, How Does a Structural Fabricator Make Money?” In a nutshell, here is how their creativity – and a Peddinghaus FPB plate machine – helped them remain stable and create cash flow and profit for their company. We will tell their story with two separate projects that they accepted. Comments from Mark and Tony Selvaggio are in italics.

Fabricating Plate Parts for Manufacturing: Background: Like many fabricators, Selvaggio was searching for work opportunities for their shop. They had a request from a manufacturer to process two separate plate part components – 1,000 of each part.

Mark & Tony Selvaggio know the key to profitability in difficult times is to be innovative in ways to use your existing shop tools – like the Peddinghaus FPB plate processor.

Time Line For a Fast Job that Exceeds the Customer’s Expectations: • The order was received at 2:30 p.m. on a Friday afternoon • Steel was ordered from the vendor for 7:00 a.m. Saturday ($300 delivery premium) • The parts were programmed and nested using Shop Data System’s PeddiNest software with chain cutting, nesting, and “edge start” technology • The operators were called in for Saturday and Sunday OT work (we hadn’t worked OT for months)

All of the plate detail for a U.S. Air Force building project was processed on the Peddinghaus FPB plate system.

“It was a manufacturer, and their tolerances were tight, but we thought – why not bid it? We operate a Peddinghaus FPB 1500 plasma plate punch for all our plate detail, so it was the perfect machine.” “With nothing to lose, I gave them a price per piece – they said that they would get back to me. I told them, they have my word that should any quality issues arise, I would address them personally… the purchasing agent gave us the order an hour later.” (Editor’s Note: According to various steel industry sources, manufacturing has increased 3 - 4% in the USA and 2% in the UK in 2010). “We have a small shop, and the FPB fits perfectly,” says Tony… note the mezzanine constructed with ancillary tools.

Profile for Peddinghaus Corporation

Steel Fabricators Review V36-Winter2011  

SFR Volume 36 - The Peddinghaus Steel Fabricators' Review is a magazine published by Peddinghaus Corporation - the acknowledged global leade...

Steel Fabricators Review V36-Winter2011  

SFR Volume 36 - The Peddinghaus Steel Fabricators' Review is a magazine published by Peddinghaus Corporation - the acknowledged global leade...

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