Vol. 2, No. 5 Oct/Nov 2012
Regional Manufacturing Magazine for The Pacific Northwest (WA, OR, and N. CA)
Fahey Machinery Celebrates 50 Years in Business, Three Generations of Sales, Service, and Impeccable Ethics for the Pacific Northwest! www.a2zMetalworker.com www.facebook.com/a2zmetalworker
Fahey Machinery Celebrates 50 Years in Business, Three Generations of Sales, Service, and Impeccable Ethics for the Pacific Northwest! Raymond and Lauretta Fahey founded Fahey Machinery Co., Inc. (Fahey Machinery) almost 50 years ago as a machine tool distributor, specializing in sheet metal and steel fabricating equipment. Fahey Machinery has become a leading distributor and represents some of the finest machine tool manufacturers in the industry with a territory that spans the following states: Oregon, Washington, Alaska, Idaho, Montana, Hawaii, and Northern California.
In January of 1964 Raymond’s son, Bill Fahey Sr. was fresh out of college and joined the family business. Bill Sr. had a good amount of experience working with the tools that his family business sold because while going to college he would work for the local shops and with many of the fabrication tools. “It worked out pretty well,” says Bill Sr. “I got to sell the machines I worked with in college and I had a pretty good knowledge of how they worked.This helped me to sell the machinery and help my customers with top of the line products.
He continued, “When I joined the business mom and dad gave me my old room back, a gas card, and a small Founders Raymond and salary per month. I started slow and went on errands Lauretta Fahey the first 4-6 months and basically watched and listened. I went on sales calls with dad and I would watch how Years ago, Raymond Fahey worked in the Los Angeles, he interacted with customers and I would listen. Six California area for the aircraft industry doing precision Aerospace months later dad gave me a list of about 500 names on it and he said fabrication during the Second World War. He worked with various this is your account list, go see them, and I realized at that moment precision sheet metal machines and became proficient at his trade. how little I knew. As a young man one can be pretty cocky and think he is hot stuff, but it took me almost a year before I made my first sale and I will never forget it. I kept plugging away and finally made one. It wasn’t much but it meant the world to me and the feeling and In 1943 the Fahey family moved to the Portland, Oregon area and confidence I had from that first sale propelled me to more sales.” Raymond worked for an aircraft related business there. Shortly after the war ended, the company Raymond worked for went out of In the early days of the business it business. He then went to work was just Bill Sr. and his mom and for a machine tool company that dad. Bill Sr. would drive all over sold metal working machinery. Oregon making sales calls proRaymond’s division sold sheet moting the business to customers metal to sheet metal shops. This and introducing Fahey Machine. company also had a division that After a while his dad let him go sold fabrication equipment and into Idaho and it could take up Raymond soon found his calling to two weeks before he would and began to sell equipment to be home again, a real road warshops in the area. Through his rior considering this was the time vast knowledge of working with when the interstate system was fabrication equipment people just coming into existence and it came to him for advice on what took forever to get anywhere. Bill to purchase for their shops. Sr. would drive through Idaho and into Montana shaking hands and Bill Jr. and TJ Hatfield with Marvels in stock, ready for shipment making a name for Fahey MaEventually Raymond felt he could chinery all the while developing do a better job supporting the the territories. Eventually he worked his way into eastern Washington shops with the fabrication machinery he was knowledgeable about. and expanded the territory there. His sister Mary was hired soon Raymond saw his niche and never looked back. After many 12 hour thereafter as secretary and the four of them worked hard to make days and strategic business moves Raymond and his wife Lauretta every year better than the last. decided to build the business together as a family. The Fahey home became the business location for a number of years. While Raymond pioneered the territory in sales for Fahey Machinery, Lauretta Fahey “Through hard work and determination the business grew every year ran the accounting and day to day affairs at the office, creating a great and it felt good to be a part of the family business,” says Bill Sr. “In partnership with Raymond and a great foundation for Fahey Machinthose days we were a very small company and there were some very ery.When Raymond and Lauretta started the business, Raymond was big competitors with many employees. These other companies had 49 years of age and three of Raymond’s children were either in or many branches throughout the states we covered and we were workgoing to college. It takes a strong individual to strike out on his own ing out of the house. The thing was we specialized in sheet metal and during a period of uncertainty. fabricating equipment and we were the only ones that did that so we A2Z METALWORKER NW •
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had our niche. The bigger companies sold everything under the sun and did not specialize in a line of products.” Bill Sr. continued. Fahey Machinery’s claim to fame was pounding the pavement. “Our customers knew who they were dealing with; we would shake their hand and look them in the eye. They knew we were not an order taker type of business. We were, and still are, their expert in fabrication equipment,” Bill Sr. said. In the late 1960’s Boeing was not in great shape with the SST program and in 1971 the House of Representatives voted to end SST funding. Due to this project cancellation Boeing placed a glut of new/used machinery on the market. It was a difficult time to sell machinery in the Seattle area. In 1974 Bill Sr. moved up to Seattle to try and grow the territory. By then, Boeing was going straight up, the Alaskan pipeline was being built and high tech was just coming into play, and the timing was impeccable. Everyone else was selling
Bill Jr., Bill Sr. & TJ Hatfield in front of their 10,000 sq. ft. building with the state of the economy and the government moving away from supporting US manufacturing and thus shrinking the middle class. Some of the consequences of over regulating by the government (OSHA & EPA) have made it so difficult for manufacturing to do business in the US that companies have either gone out of business or outsourced and offshored their work. This over regulation has resulted in less customers for us today. In the perfect world I see manufacturing growing again in the United States. We see some business coming back from Asia and that is encouraging. Businesses are finding out that it doesn’t make sense anymore to do business there with rising costs in fuel and labor and the decline of quality. When manufacturing comes back and we have higher paying jobs the economy will rise again and I see a good future on the horizon.”
October 1st the Fahey’s celebrated 50 years in business; 3 generations of Fahey’s supporting fabrication in the NW machine tools and Fahey Machinery was one of the only machinery businesses selling fabrication equipment. From 1974 through 1980 was a great time for making money in the Seattle area. Fahey Machinery did well during this period and the business grew.
Fahey Machinery is very proud they started with virtually nothing but knowledge and determination.They have continued a solid business for 50 years into their third generation with Bill Fahey Jr. as President. “Today the industry is very Internet driven and extremely competitive. There is a lot of price-cutting just to get the sale. Back in the days of my grandfather you could do a deal on a handshake and we built relationships back then. It was harder to get information
In 1968 the Fahey’s bought property and in 1977 built the building they currently operate out of in Lake Oswego, Oregon. Fahey Machinery paid off the new location in only 15 years. “This is the best thing we ever did. Fahey LLC, my two brothers and myself own the 10k sq. ft. building. With this business space we stock all varieties of equipment both new and used. Sometimes a customer will want a new piece of equipment and they will want us to buy their used machine. If it’s in decent shape we will usually buy it and they end up with new machinery,” Bill Sr. said. Bill Sr. came back to Portland to run the company as President in 1980 when his father stepped down as Chairman of the Board. Where is Fahey Machinery going in the next 5 years? Bill Sr. said, “In long term we want to continue to grow the company slowly practicing controlled growth.Times have been so unsettled for years
Bill Jr., TJ Hatfield & Bill Sr. showcase their large rolling on machines and you relied on machines your sales professional to give you A2Z METALWORKER NW •
quality information.Today the Internet has made it a different playing field and even though our company services what we sell, competitive pricing rules,” Bill Jr. said.
1986, I deal with Bill Sr. primarily and Bill has become more of a friend over the years, he stays in contact and takes the time to know my business. Bill Fahey isn’t pushy and I appreciate the way he conducts himself. Bill tries to understand what I need and what I’m doing and comes up with a solution for every situation. The Fahey Company really stands out to me. I recommend Fahey Machinery to everyone I can. Fahey has good lines and represents them well.” Scientific Research, Mike Hollowell
“As President I look forward to our company continuing to grow.We have a great team, Jackie Fahey (sister-in-law), Leonard Foster as Service Specialist, and Lisa Malone, Book Keeper. I see us adding some more service personnel Leonard Foster, Service Specialist and some sales professionals to support the business and help our customers. We have added a strong sales professional with T.J. Hatfield. T.J. joined the company as VP in January and is buying into the business “We have known Bill and been doing business with the Fahey’s for as a partner. T.J. brings many years of experience in machinery sales about 40 years. My dad dealt with his dad and we have done business to the company and follows the same strict ethics the Fahey’s have for three generations and ours is about 60 years old. It’s unusual to fostered for years,” Bill Jr. continued. find any one in a business for 40 years. I have a great business relationship with Fahey Machinery. You don’t do today Fahey Machinery is located in Lake Oswego, Oregon. what you did 30-40 years ago. Bill and They house a wide variety of new and used equiphis company represents a full breath of ment and machines for: bending, punching, shearing, equipment lines in our industry and he stamping, sawing, burning, welding, rolling, finishing, is knowledgeable of most all of it. Fahey as well as milling and turning. Along with a profescompetes hard and fair for your busisional sales team, Fahey Machinery employs full time ness. Bill is a professional with strong service, parts, and tooling departments.The company character and a man of his word and is dedicated to keeping their customers’ equipment great at follow up and promises what operating smoothly and with precision. he can deliver. Bill understands that you build relationships for the long haul Today Fahey Machinery continues the legacy of 50 and building these relationships takes years (as of October 1st) of serving their customers time and trust. Over the years Bill has and the industry through honesty, hard work, and made relationships and intends to keep some of the highest ethics in the industry. For service them. Fahey Machinery is a leader in and sales of the finest fabrication machinery in the their field.” industry you can depend on Fahey Machinery. Capital Industries, Ron Taylor Here’s what some of Fahey Machinery Customers have to say:
Fahey Machinery also sells used equipment they refurbish themselves
“I have nothing but great things to say about Fahey Machinery! They have great people working there. The service guy there, Leonard is real good. Fahey Machinery is one of the only machinery distributors I trust. I highly recommend them!” Cd’A Metals, Larry Coulson “We started in the back yard with a hand break we bought from Fahey Machinery in 1989.They are the sole supplier for new equipment and get first crack on everything. Fahey Machinery is hands on, always answers their phone and, is very good with follow up service. Great representatives. It’s good to have a rep that knows the application. I highly recommend Fahey Machinery to everyone!” Evans Metal Fab, Chris Evans “Scientific Research has been doing business with the Fahey’s since A2Z METALWORKER NW •
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“Bill is one of the most knowledgeable machine tool salespersons out there. He listens to our needs and meets our needs and requirements. He also brings years of experience to the table. Bill will not sell you a machine you do not need. This year I had a need for a mill. After I explained to Bill what I needed, I got a call a few days later with a mill he thought would work and the name of the sales rep. he thought could help me. We bought the mill and have another one planned for 2013. Bill did not forget about the mill or us just because he did not carry what we needed. Bill is a guy that always will get 1st opportunity. Bottom line, Bill is a guy who cares about what he does.” Buyken Metal Products, Mark DeLaurenti
For more information on Fahey Machinery and their top of the line fabrication machinery and service, please call: (503) 620-9031, www.faheyinc.com
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CONTRACTS Alliant Techsystem Operations L.L.C., Independence, Mo., was awarded a fixed-price -- economic-price-adjustment with a maximum value of $8,480,000,000. The award will provide for the procurement of small caliber rifle ammunition and for the operation, maintenance and modernization of Lake City Army Ammunition Plant. Work location will be determined with each order, with an estimated completion date of Sept. 30, 2022. The bid was solicited through the Internet, with two bids received. The U.S. Army Contracting Command, Rock Island, Ill., is the contracting activity (W52P1J-12-D-0078). Science Applications International Corp., McLean, Va., awarded a costplus-fixed-fee contract between 12 contractors with a maximum value of $7,000,000,000. The award will provide for the software and systems engineering services. Work location will be determined with each order, with an estimated completion date of Sept. 27, 2017. The bid was solicited through the Internet, with 15 bids received. The U.S. Army Contracting Command, Fort Monmouth, N.J., is the contracting activity. HELLFIRE Systems L.L.C., Orlando, Fla., was awarded a $403,484,222 firm-fixed-price contract. The award will provide for the modification of an existing contract to procure various models of HELLFIRE II missiles. Work will be performed in Orlando, with an estimated completion date of Dec. 31, 2014. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W31P4Q-11-C-0242).
Fahey Machinery Co. Inc. 17605 SW 65th Ave. Lake Oswego, OR 97035
ITT Exelis Corp., Colorado Springs, Colo., was awarded a $220,704,301 cost-plus-fixed-fee contract. The award will provide for the operations and maintenance services in support of communications and information systems under the 160th Signal Brigade. Work will be performed in Kuwait, Iraq, Afghanistan and Qatar, with an estimated completion date of June 29, 2013. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Fort Huachuca, Ariz., is the contracting activity (W9128Z-11-C-5000). Argon St Inc., Mountain View, Calif., was awarded a $24,989,826 cost-plus-fixed-fee contract. The award will provide for the research and development services for advanced signal intelligence capabilities. Work location will be determined with each order, with an estimated completion date of Sept. 28, 2015. Two bids were solicited, with two bids received. The U.S. Army Contracting Command, Fort Monmouth, N.J., is the contracting activity (W15P7T-12-C-A036). Northrop Grumman Systems Corp., San Diego, Calif., is being awarded a $24,476,978 firm-fixed-price delivery order against a previously issued basic ordering agreement (N00019-10-G-0003) for spare parts and supplies in support of the MQ-8B vertical take-off and landing tactical unmanned air vehicle. Work will be performed in San Diego, Calif. (36 percent), Horseheads, N.Y. (30 percent); Salt Lake City, Nev. (11 percent); Sparks, Nev. (11 percent); and various other locations within the United States (12 percent); and is expected to be completed in April 2014. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. A Z METALWORKER NW â€˘ 21 â€˘ Oct/Nov 2012 2
Fahey Machinery Article "3 generations of Fahey's"