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Editors Corner
Are tariffs beneficial to our US economy?
In the early days of our nation, tariffs, or taxes on imported goods, were a primary source of government revenue. Over time, as our economy matured, it became clear that it was better for American households and better for businesses to raise revenues through a progressive income tax rather than regressive tariffs.
Tariffs are put in place to protect industries by making imports more expensive and driving consumers to purchase domestic products. In the U.S., several politically sensitive industries benefit from such tariffs: sugar producers have been protected by tariffs since 1789 — and the auto industry has benefited from the so-called chicken tax since 1964, which places 25% tariffs on some pickup trucks. Also, tariffs are used to protect domestic industries from foreign countries’ unfair trading practices and, in some cases, for national security purposes.
Some tariffs are meant to neutralize specific measures taken by foreign countries. For instance, the U.S. applies “countervailing duties” when another country subsidizes a domestic industry—allowing its exporters to sell products at a lower price than they would otherwise be able to in a free market—and thereby undercuts U.S. producers. “Antidumping” tariffs are applied when a U.S. firm proves that a foreign firm is selling products into our country at lower prices than they charge at home. In both of these cases, tariffs are meant as a penalty that allows domestic producers to compete as if the market had not been distorted.
In some strategic industries, such as our defense, tariffs can be used to ensure a country does not rely on trade for its supply of critical products. Section 232 of the Trade Expansion Act of 1962 allows the president to raise tariffs on certain goods for national security reasons.
Over the past 8 years, U.S. Presidents Trump and Biden have both turned to tariffs to support our domestic industries amid economic confrontation with China. During his term as president, Donald Trump imposed tariffs on hundreds of billions of dollars’ worth of imported goods from China and other countries in an effort to combat alleged unfair trade practices, reduce the U.S. trade deficit, and boost domestic manufacturing. President Biden has maintained many of Trump’s tariffs on China and introduced several of his own.
Who benefits? Importers pay tariffs to their home government, but most economists find that the bulk of tariff costs are passed on to consumers. Critics say poor Americans are hit the hardest, and recent research has found that U.S. consumers bear the brunt of the tariffs on Chinese goods through higher prices.
Still, economists and politicians on both the left and the right increasingly favor tariffs. A 2022 analysis by economists at the Economic Policy Institute found that Trump’s tariffs helped “reshore” supply chains in strategic industries, and that reducing them “would have only a minimal and transitory impact” on U.S. price levels. Republican strategists often argue that tariffs create good jobs, increase economic growth, and decrease trade deficits. Biden and many other Democrats agree that tariffs are good for American workers.
We shall see after the election how tariffs will be utilized, and the impact it will have on our precision manufacturing industry. Until next issue, I wish you the best and God bless our troops.
Linda Daly, Publisher
Phoenix Heat Treating Expands Capabilities with Salt Bath Nitriding
by Takashi
CONTRIBUTORS
Published bi-monthly to keep precision manufacturers abreast of news and to supply a viable vendor source for the industry.
Circulation: The A2Z Manufacturing has compiled and maintains a master list of approximately 6500 people in the Rocky Mountain states actively engaged in the Precision Manufacturing Industry. It has an estimated pass on readership of more than 18,000 people.
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Automation keeps the NHP running. Day and night.
Nothing is sweeter than the sound of a spindle making chips, especially when it’s the high-performance spindle found on one of our NHP Series of Compact Horizontal Machining Centers. These workhorses can handle whatever you throw at them, and are always asking for more.
That’s where our Linear Pallet System (LPS) comes in. It feeds the NHP around the clock, which leaves nothing but pallets upon pallets of precise, ready-to-ship parts. And if floor space is a concern, the Rotary Pallet System (RPS) will fit right in.
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BMSC is now offering packages to come in and conduct Internal Process Audits and Facilitate Management Reviews to ensure you are effectively maintaining your ISO 9001 and/or AS9100 System.
We Can Help! We Have Helped Over 200 Manufacturing and Service Companies. Call to Learn About our Templates - From $3500. CIS Software visit www.cissoftware.com.
Announcements & Releases
Register For NTMA-U Educational Programs
NTMA-U is a fully online educational program that can help deliver an empowered workforce.
Cost: $100/ person
NTMA-U provides both the related instruction for a machinist apprenticeship and specific incumbent worker training.
NTMA-U key features include:
• Available anytime, anywhere with Internet access
• Narrated courses with practice problems and assessments
• Content covers NIMS competencies, paired with resources
• College credit-earning potential with articulation agreements
• Federal Bureau of Apprenticeship Training approved
Revolutionizing Manufacturing Efficiency: Hainbuch America Introduces Groundbreaking AC Line for Automated Workholding Changeover
Hainbuch America, a leading name in machining technology, is proud to unveil its latest innovation at IMTS 2024: the revolutionary AC (Automated Change) Line. This groundbreaking solution marks a significant milestone as the first fully automated system for workholding device changeover, setting new standards in manufacturing efficiency and precision.
The AC Line represents a paradigm shift in workholding technology, offering manufacturers a seamless and error-free alternative to manual changeovers. By harnessing cutting-edge automation, the AC Line
September
October 2nd - Columbus, OH
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streamlines transitions between workholding devices with unmatched speed and accuracy. This innovation not only reduces downtime but also enhances overall productivity, empowering manufacturers to maximize their machining capabilities.
Key features of the AC Line include:
1. Precision Automation: The AC Line’s precisionengineered automation ensures consistent and reliable changeovers, eliminating human error and optimizing machining processes.
2. Automated Clamping Heads (Collets) and EndStops: In addition to workholding device changeover, the AC Line automates clamping heads (collets) and end-stops, further enhancing operational efficiency and accuracy.
3. User-Friendly Interface: Designed with ease of use in mind, the AC Line features an intuitive interface that allows operators to program and adapt quickly, enhancing operational efficiency.
4. Versatile Adaptability: From varying part geometries to diverse materials and machining techniques, the AC Line adapts seamlessly to meet a wide range of
production requirements, ensuring versatility without compromise.
5. Industry-Leading Support: Hainbuch America’s commitment to customer success extends beyond innovative technology. Our team of experts provides comprehensive support, from personalized solutions to hands-on guidance, ensuring a seamless integration of the AC Line into existing manufacturing workflows.
“We are thrilled to introduce the AC Line at IMTS 2024, marking a significant advancement in workholding technology,” said Tim Wachs, President at Hainbuch America. “This groundbreaking solution reflects our dedication to pushing the boundaries of innovation and empowering manufacturers with tools that optimize efficiency, precision, and productivity.”
Visit Hainbuch America at booth W-431636 at IMTS 2024 to experience the AC Line firsthand and discover how it is reshaping the future of manufacturing.
For media inquiries, please contact: Michael LarsonMarketing Director • mlarson@hainbuchamerica.com
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Announcements & Releases
With Superior Grinding’s Expanding Swiss Machining Department, They Have Capacity To Support Your Projects
Company is Woman-Owned and Certified HUB-Zone
There are so many reasons why you should bring your precision grinding and Swiss screw machining work to Superior Grinding and Swiss Machining.
“For one, our Swiss machines have front and rear ejection capabilities, along with 5 axes, and this means for example we can do part threading on both sides simultaneously”, founder Wendie Flitton said, adding “ We do not want to compete with our many Machine Shops we want to offer them a better solution to these types of jobs. With our Swiss Machining capabilities, we can cut up to 1.250 diameters.” She added, “We are reducing the steps in outsourcing for our customers with our Swiss Machining capabilities. We can buy the material, grind it, machine it, and send it to heat treat, and then finish OD or centerless grind the part. Our Swiss Screw Machine capabilities will allow us to cut costs on many parts that need to be machined and ground.”
Superior Grinding built its business initially in Industrial Blade and Knife Grinding along with sales of replacement knives. They continue to provide
these customers with outstanding services and stocking many types of replacement knives and parts for the bindery, metal and wood industries.
To learn more about how Superior Grinding, a Woman-Owned and HUBZone Certified company, can support your precision machining needs, visit superiorgrinding.com or call (801)4879700.
Phoenix Heat Treating is proud to announce that we are FAA Drug and Alcohol Program compliant
Phoenix Heat Treating is especially known for its ability to resolve difficult heat-treating problems that are beyond the capability of a typical application. We offer a wide array of processing and consulting services. We take great pride in finding unique solutions to meet each
Continued page 12
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individual customer’s requirements.
Announcements & Releases
To learn more about how Phoenix Heat Treating can support all your heat treat needs, as well as specialized services, contact Tim Johnston, Director of Business Development.
Tim is available to assist you at Phoenix Heat Treating and can be reached at 623-512-3233 or by email at tjohnston@phxht.com
Florida Aerospace Company Mulls Colorado Expansion
An aerospace company based in Florida was offered about $1 million in state incentives if it chooses to locate a new manufacturing facility in Pueblo.
The facility would be used to mass produce and test rocket engines.
Commissioners unanimously approved the incentive, which would pay out the $1 million over a period of five years contingent on the codenamed company’s creation of 165 new jobs.
The company behind “Project Peaches” specializes in designing and building machines used in space, such as orbital launch vehicles, inspace propulsion systems and advanced missile engines, according to the Colorado Office of Economic Development and Trade. Its process
uses non-toxic and non-explosive hybrid rocket propulsion technology.
Average pay for the new jobs would be $89,091 per year for roles like engineers and technicians. The incentives are also contingent on a local match of incentives in Pueblo and successful fundraising of at least 75% of the company’s goal to raise $50 million.
Commissioners also offered $160,000 to be paid over five years to “Project Maverick 2024.” The same codename first came before commissioners in February 2023, when the company was approved for $5.4 million in job growth incentives.
“Project Maverick” last year was described as a company that produces anodes for batteries used in electric vehicles. It was looking at the time for an existing space in
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At Utah Metal Works, recycling industrial-related scrap metal is one of the things we do best. You simply won’t find more knowledgeable, capable partners for your scrap handling and recycling efforts anywhere. We are known in the industry for our honesty and integrity, and you can be sure you are always getting a competitive return along with superior service. We make it easy for you to cash in on non-ferrous metals from:
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Announcements & Releases
Adams County that would support the initial phase of its project. This time around, the company expects to create 40 new jobs in Adams County, for which the county is offering a sales and use tax rebate of $787,500.
OEDIT last year said that “Project Maverick” creates higher density and longer range batteries that seek to improve the performance of electric vehicles, aircraft and drones. It does so through a unique manufacturing process that uses 3D structures in a rollto-roll system.By
Analisa Romano – Denver Business Journal
Manufacturing Technology Orders Grow 4.3% in June 2024 as Year-Over-Year Order Gap
Narrows
Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $402.3 million in June 2024. New orders of metalworking
machinery were up 4.3% from May 2024 but down 1.6% from June 2023. Year-to-date orders reached $2.2 billion, down 10.7% compared to the first half of 2023.
While the value of orders maintained momentum in June 2024, with the average value increasing significantly, the number of units ordered for the month dropped to 1,471 units, the lowest since July 2023. This divergence indicates manufacturers are generally investing in more automated, task-specific solutions. This trend is further confirmed, as inflation among machine tools, measured by the producer price index, has stayed relatively flat for the last several months.
June 2024 orders from contract machine shops dropped over 10% from May 2024 in both the number of units ordered and the total order value. Through the first half of the year, the value of these orders was the lowest since the first half of 2020, but the number of units ordered fell further, reaching its lowest level since the first half of 2010.
• Primary metal manufacturers have also pulled back machinery orders in 2024. Demand for machinery in this sector has been waning, as the World Steel Association reports that global steel production in the first half of 2024 was flat compared to the first half of 2023.
• One notable exception to this recent trend is the aerospace sector, which has increased orders in the first half of 2024 to the highest number of units since the first half of 2018, yet the value of orders remains about 2% below orders placed in the first half of 2022. With capacity utilization in the
aerospace sector reaching postCOVID peaks, this confirms that these manufacturers are in need of additional machinery to meet growing demand.
Orders of manufacturing technology are down nearly 11% in the first half of 2024 compared to 2023, but that difference has narrowed in the past several months after the beginning of the year failed to meet the optimistic expectations formed from anticipated interest rate cuts and strengthened consumer and business sentiment. Despite the lingering uncertainty around the Federal Reserve’s interest rate policy, the pending election, and escalating geopolitical tensions, the remainder of 2024 seems ready for a rebound in demand for manufacturing technology –perhaps even more so with the opening of IMTS 2024.For more information, visit https://www. amtonline.org/.
Introducing CNC Custom Parts Mfg.
“At CNC Custom Parts Mfg, we are dedicated to advancing the legacy of American manufacturing by ensuring the next generation carries the torch forward. Our team, led by President David Soares, brings over 36 years of collective experience in machining and manufacturing. This extensive knowledge, coupled with our background in working for a machine tool distributor, provides us with a vast network of resources that extend beyond the capabilities of a typical machine shop.
Specializing in 5-axis machining and turning of various metal and plastic parts, CNC Custom Parts Mfg is equipped with
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state-of-the-art Mazak machinery. Our modern facility is more than just a machine shop—it’s a powerhouse of innovation and precision. From fully automated, lights-out production to precision bar-fed turning and pallet-fed 5-axis machining, we deliver top-tier quality and efficiency in every project. We expertly handle a variety of materials, with stainless steel being the most commonly processed in our shop, alongside aluminum, alloy steels, mild steels, brass, and plastics, catering to diverse industries such as aerospace, diesel, oil & gas, mining, construction, food, medical,
CNC Custom Parts Mfg is where innovation meets precision, and the future of American manufacturing is being forged today.”To learn more about how CNC Custom Parts Mfg. can support your machining needs, contact them at 801.513.0943, email: dsoares@cnccustompartsmfg.com or visit cnccustompartmfg.com
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Texas Instruments scores $1.6B in CHIPS funding
The chipmaker is also slated to receive up to $8 billion in manufacturing tax credits for its upcoming Utah and Texas factories.
Texas Instruments is the latest chipmaker to score CHIPS and Science Act funds, nabbing $1.6 billion in direct funding, the Commerce Department announced.
The money will go toward Texas Instruments’ three upcoming 300 mm wafer fabs in Lehi, Utah, and Sherman, Texas. The chipmaker previously announced plans to spend $18 billion through 2029 to bolster its domestic manufacturing capacity.
With the CHIPS funding, the chipmaker is eligible for up to $3 billion in proposed loans. The company is also slated to receive between $6 billion and $8 billion in manufacturing tax credits and $10 million in proposed workforce development funding.
Dive Insight:
Texas Instruments’ funding adds to the quickening pace of the White House’s dole-out of $39 billion in CHIPS money as the Biden administration enters its final months.
wafer manufacturer GlobalWafers received $400 million last month to support new manufacturing facilities in the Texas city, as well as in St. Peters, Missouri.
Dallas-based Texas Instruments currently operates 15 manufacturing locations across three continents, including an existing fab in Texas. It plans to use the money to build the cleanroom and pilot production line at its first Sherman plant, construct the Utah plant’s cleanroom and build the shell of its second Sherman fab.
Texas Instruments marks the 16th company to receive CHIPS funds across 15 states.
It’s the second company to receive funds for facilities based in Sherman. Silicon
Like other U.S. chipmakers, Texas Instruments aims to better support its own production needs by boosting its internal manufacturing capacity. The company wants to bring more than 90% of its wafer manufacturing and assembly and test operations in-house by 2030.
“With plans to grow our internal manufacturing to more than 95% by 2030, we’re Continued next page
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building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come,” President and CEO Haviv Ilan said in a statement.
The Commerce Department touted the funding for the maker of current-generation and mature-node chips, known as “foundational” chips, as a key way to prevent future semiconductor supply chain issues like those seen during the COVID-19 pandemic.
“With our proposed investment in the world’s global leader of current-generation and mature-node chips, we would significantly advance our economic and national security and mitigate supply chain vulnerabilities,” National Institute of Standards and Technology Director Laurie E. Locascio said in a statement.
The projects are expected to create more than 2,000 direct jobs, and production
at the fi rst Sherman fab is expected to begin as early as next year. The campus could eventually include up to four plants through an up to $30 billion investment.
Texas Instruments announced the $11 billion Utah project in February 2023, with ambitions to produce tens of millions of analog and embedded processing chips daily at full capacity.
Don’t miss the next Breakfast Series discussion:
Homegrown Technology
Join us on Oct. 8, 2024, for a discussion focusing on the inventions and innovations that keep putting Idaho at the forefront of the future of technology. A panel of experts will share their industry expertise on what’s driving the industry in the state.
October 8, 2024
8:00 AM-9:30 AM
The Grove Hotel
245 South Capitol Boulevard Boise, ID 83702
Agenda
7:30am - Doors open. 8:00am - Registration and networking begin.
8:30am - The discussion begins promptly and lasts for about one hour.
Attend for a chance to win a drone at each location!
OIL MIST AND SMOKE IN YOUR SHOP?
Northrop Grumman Systems Corp., Boulder, Colorado, awarded a $9,323,188 contract for Australian Mission Processor 3 (AMP 3) contractor logistics support. This contract provides on-call contractor logistics support for system anomalies, implementation of deficiency report fixes, cybersecurity compliance, integration of capability enhancements, and obsolescence replacement of hardware and software components for AMP 3. Work will be performed at Azusa, California, is expected to be completed by March 31, 2029. This contract involves Foreign Military Sales (FMS)to the Government of Australia. This contract was a sole source acquisition. Government of Australia funds through the FMS Trust Fund in the amount of $9,323,188 are being obligated at the time of award. The Space Systems Command, Space Sensing Contracts, Los Angeles Air Force Base, California (FA8810-24-C-B002).
Contract Award ICR Inc. Aurora, Colorado, has been awarded a $31,307,935 cost-plus-fixed-fee completion contract with technical reports, software, and hardware. This contract provides for the design, development and delivery of low-cost sensors, analytical applications, mission integrated capabilities and affordable, impactful mission solutions. These technologies are critical to providing decision advantage U.S. forces and the intelligence community. Work will be performed at Aurora, Colorado, and is expected to be complete by July 18, 2028. Fiscal 2024 research and development funds in the amount of $569,559 are being obligated at the time of award. This award is the result of a competitive acquisition, offers were solicited electronically via an open Broad Agency Announcement and two offers were received. Air Force Research Laboratory, Rome, New York is the contracting activity (FA8750-24-C-B077).
L3Harris Technologies Communication Systems–West, Salt Lake City, Utah, is awarded a $12,100,926 cost-plusfixed-fee and firm-fixed-price modification to a previously awarded contract (N00024-23-C-5206) to exercise options to develop, test, manufacture, deliver, manage, and support the AN/SRQ-4 radio terminal set common data link, Hawklink, on surface combatants. Work will be performed in Salt Lake City, Utah, and is expected to be completed by April 2025. Foreign Military Sales (Spain) case funding in the amount of $10,775,415 (87%); and fiscal 2024 shipbuilding and conversion (Navy) funding in the amount of $1,644,580 (13%), will be obligated at the time of award and will not expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity.
The Boeing Co., Layton, Utah, has been awarded a $34,096,141 modification (P00247) to previously awarded contract FA8214-15-C-0001 for Flight Test Telemetry Ter-
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mination development. Work will be performed at Layton, Utah, and is expected to be completed by Dec. 31, 2025. No funds are being obligated at time of award. The Air Force Nuclear Weapons Center, Hill Air Force Base, Utah, is the contracting activity.
United Launch Services LLC, Centennial, Colorado, has been awarded a $1,100,298,036 modification (P00015) to a previously awarded contract (FA8811-20-D-0001) for National Security Space (NSS) Launch Phase Two launch service procurements for NSS launch services from fiscal 2020 through fiscal 2024, for launches planned between fiscal 2022 through fiscal 2027. The modification brings the total estimated face value of the contract to $4,500,000,000 from $3,399,701,964. Work will be performed at Centennial, Colorado; Cape Canaveral Space Force Station, Florida; and Vandenberg Space Force Base, California, and is expected to be completed by
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March 31, 2028. The Contracting Division, Assured Access to Space, Space Systems Command, Los Angeles Air Force Base, El Segundo, California, is the contracting activity
Vectrus Systems Corp., Colorado Springs, Colorado, is awarded $10,066,378 for firm-fixed-price, indefinite-delivery/indefinite-quantity modification to previously awarded contract (N62470-20-D-0004). This modification provides for the exercise of Option Four for base operating support services at Naval Support Facility Deveselu. Work will be performed in Deveselu, Romania, and is expected to be completed by July 2025. This award brings the total cumulative face value to $50,477,836. Fiscal 2024 operation and maintenance (Navy) funds will be obligated on individual task orders, subject to the availability of funds. No funds will be obligated at time of award. The Naval Facilities Engineering Systems Command, Europe, Africa, Central, is the contracting activity.
L3 Technologies, Communication Systems- West, Salt Lake City, Utah, is awarded a $28,474,636 long-term, firm-fixed-price contract for the repair of sixteen items in support of the multifunctional information distribution systems joint tactical radio systems and the concurrent multi-netting-4 systems with the common systems integrated weapon support team. The contract is a five-year, long-term contract with no options. Work is to be completed by August 2029. Work will be performed in Salt Lake City, Utah (90%); and Lynwood, Washington (10%). No funds will be obligated at time of award, and funds will not expire at the end of the current fiscal year. Individual task orders will be funded with appropriate fiscal year working capital funds (Navy) at the time of their issuance. One company was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-24-D-N001).
Your Designated Service Disabled Veteran Owned Small Business (SDVOSB) Adds To Its 5 Axis Machining Capabilities With The Newest Matsuura MAM72-52V
Calling all Veterans looking for purposeful work with Ownership Opportunities
In 2023, Rich Hoover, a Service Disabled Veteran and degreed Mechanical Engineer, acquired Schott Manufacturing Services (SMS). SMS is a successful precision machine shop manned by a group of high-level machinists specializing in machining complex prototype parts. The SMS leadership team highlighted the fact that SMS machinists are their industry differentiators. With over 191 years of high-level, advanced machining experience this amazing team of machinists is easily able to tackle the complexity of part machining in the Aerospace and Defense industry.
Today, SMS is a designated SDVOSB, and while it continues to provide high quality complex prototype parts to Tier 1 OEMs in defense and aerospace, it has expanded its business with new machines and technology that is enabling it to support its customers’ production needs.
Justin Schaul, General Manager for the company, says, “Before Rich purchased the business, our mix was more than 80% prototype. Today, we are 60% production and 40% prototype and moving to a 50/50 ratio.”
Business is growing for SMS, though it’s not from an influx of new customers. Rather, once they acquired the tools to efficiently and cost effectively produce production parts, the business grew through new contracts largely with existing customers.
When Rich acquired SMS, it was equipped with 10 CNC machines, mostly Haas machines. When he and the team made the decision to grow their production business, the company added a Matsuura MAM 72-52V
5-axis vertical Palletized machining center to their portfolio of 5-axis machining centers.
Diana Vergano, Machine Tool sales for Productivity, Inc., the dealer for Matsuura in Colorado, says, “Matsuura’s MAM7252V is a high speed, large capacity 5-axis vertical machining center that enables variable part/variable production and extended unmanned operation in an all-in-one machine. Specially designed for long operation with PC15 and 330 tool ATC standard, the MAM72-52V can support continuous production for up to 72 hours. This ability, combined with a compact size and large pallet changer, makes the MAM7252V a highly efficient, accurate machine.”
In his career at a number of different precision machine shops, Justin gained experience machining on many different OEM brands. When it was time for SMS to upgrade their capabilities with an extremely robust 5-axis machining center, Rich and Justin brought in a limited number of dealers, nearly all with Japanese machine tools. Justin says, “In the end, we selected the Matsuura for a number of reasons:
• It has an excellent reputation
• It has the smallest footprint of the machines we were evaluating
• It is sold by Productivity Inc., the dealer for Matsuura and Haas, among other machines, and we’ve had many successful years working with them
• It was the best priced machine for its capabilities, first and foremost being accuracy
• Service and support through Productivity is local
• Matsuura offered palletization with the machine, all in one
Justin says that purchasing the Matsuura through Productivity was not only a sound decision in terms of the machine’s
capabilities, but it was one he wouldn’t lose sleep over. “When you know the dealer and their reputation for service, it makes the decision that much easier.”
Rich adds, “The MAM7252V offers high accuracy and unattended, aroundthe-clock operation, so we can meet production goals and overcome labor shortages. Since we installed the machine, we are seeing a 30% reduction in cycle time on parts. The profile and true position with superior repeatability is what drove us to the Matsuura.”
To maximize the productivity of their new Matsuura MAM72-52V for production projects, the company additionally purchased the ZEISS CONTURA - Coordinate Measuring Machine. Rich says that the new Zeiss will prevent inspection from being the bottleneck in the production cycle.
SMS isn’t just a long-term Productivity customer for their machine tools, they also utilize Productivity for tooling and industrial supplies. Through this department, SMS purchases cutting tools, coolants, safety and industrial supply products. Cory Lottman, Sales Engineer for Productivity’s Tooling Department, says, “Our Productivity Advanced Supply group recently installed 2 point of use tool cribs utilizing our Fast Track Inventory System to help manage their Cutting Tool and Industrial Supply inventory needs.”
Justin says, “Our vending machines are helping to reduce the redundancies inherent in traditional ordering processes, and they provide simple tracking reports on tooling and supply usage to help us in managing our tooling inventory. Cory and the Productivity tooling team were integral in helping us to develop a crib system around our needs.”
I mentioned that owner Rich Hoover is a Veteran. Not only did he serve in the Army for 25 years, he served in the Army’s Special Forces, also known as the Green Berets. Rich recognizes that many who have served our country suffer from some form of PTSD, and often have difficulty getting ahead. “I bought this business to create opportunities for Veterans, and my goal is that through shops like SMS, they can find purpose, eventually even with ownership capabilities.”
When Rich was pursuing his Master’s in Business at Rice University in Houston, he landed with a private equity firm. Through collaboration with peers, he and partners are acquiring manufacturing companies that will be part of a larger plan to help Veterans find meaningful jobs with ownership opportunities. Currently, this partnership has businesses in Colorado, Florida, and Oklahoma. Interested parties should contact Rich directly at: Rich@schottmfg.com
If you are looking for an ISO certified shop that offers true 5-axis machining, that is also a designated SDVOSB business, contact SMS at: 720-684-6264or visit schottmfg.com
Productivity Inc. is a single source machine tool distributor of metalworking machines, fabrication equipment, tooling, industrial supplies, robotics and related manufacturing products and services. The company, in business since 1968, supports customers in Minnesota, North Dakota, South Dakota, Iowa, Nebraska and western Wisconsin as well as in Colorado, Utah, New Mexico, Idaho, Montana and Wyoming. To learn how they can help your business, contact: 303-571-4933 or visit productivity.com
Maximize the Efficiency of Your Waterjet Operation
BARTON’s Transfer Hopper holds up to 4,400 lbs. of garnet eliminating the need to handle individual bags of abrasive.
BARTON is a trademark of BARTON Mines Corporation.
Trade Policy Winners and Losers: When Will Steel, Aluminum Tariffs Rise?
The Office of the U.S. Trade Representative (USTR) recently completed its four-year review of the Section 301 duties imposed on goods imported from China. These Section 301 tariffs were put in place by the Trump administration in 2018 in response to trade practices the administration determined to be unfair.
The tariffs increased the cost of importing goods from China by imposing an additional, Section 301, duty assessment of between 7.5% and 25% onto the cost of the importation. Currently 2/3s of goods imported from China are assessed a Section 301 tariff.
In the program review, the USTR determined that additional duty increases are necessary to persuade China to change its business practices and protect recent U.S. investments in strategic sectors such as clean energy, electric vehicle and semiconductor manufacturing.
The targeted tariffs are estimated to hit $18 Billion in imported value.
Tariffs will be hiked on:
How Millennials’ Technology Expectations Can Help Save Manufacturing
Millennials’ technology expectations have been shaped by smartphones, Facebook and digital media – in other words, by easy and ubiquitous connectivity. It’s not surprising, then, that traditional manufacturing systems can seem as retro as waiting for dial-up internet to connect. And that’s bad for the manufacturing sector, because its skills gap is looming large.
A joint study by the Manufacturing Institute and Deloitte Consulting projects a surge of nearly 3.5 million open manufacturing jobs created over the next decade. Some of the empty slots will come by way of retiring baby boomers, while others are related to new positions created as a result of natural business growth, the report found.What the report also predicts: As conditions stand now, 2 million of those jobs will go unfulfilled. In other words, the need for the manufacturing sector to appeal to Millennials – the generation typically defined as those born between 1981 and 1997 – is both critical and a very tall order.
Indeed, manufacturing still has a negative image among younger generations, experts say. In a 2015 public perception of manufacturing study, also by The Manufacturing Institute and Deloitte, respondents ages 19 to 33 ranked manufacturing as their lowest preference in terms of potential career choices.
Manufacturing’s image problem is complex and in, some aspects, based on false assumptions. But one real obstacle is that some manufacturing systems can seem antiquated, and it’s an issue that many manufacturers and related organizations are already addressing.
The Section 301 tariffs for Chinese steel and aluminum products have been tripled effective August 1.
Imports of Chinese steel and aluminum are also subject to Section 232 (national security) tariffs of 25% and 10% respectively.
Combining the two types of tariffs yields an eye-popping duty cost of 50% for Chinese steel and 35% for aluminum and aluminum products.
No duty rates were reduced in the review, and many products currently exempt from the additional duties have exclusions which will not be renewed. But, in a spot of good news for manufacturers, some imported machinery used in manufacturing will be granted a shortterm exclusion that runs through May 31, 2025.
In addition to ratcheting up tariff protections, the Biden administration intensified efforts to combat trans-shipment of Chinese steel and aluminum by imposing a new entry requirement. Importers must certify to U.S. Customs the origins of the metals shipping from Mexico or pay increased duties.m
Source: Industry Week
By; Lauren Pittelli
Steel articles or products from Mexico which were “melted and poured” outside of North America will incur a 25% duty rate. Aluminum articles or products from Mexico with a primary or secondary “country of smelt” or “country of most recent cast” of
China, Belarus or Iran will incur a 10% duty rate. Under an earlier proclamation, imports of Mexican aluminum or aluminum products cast in Russia are already subject to a 200% duty rate.
In light of these tariff changes, companies should carefully review their product classifications to determine whether additional duties are now applicable, or whether a current tariff exclusion has expired. Planned machinery investments and the timing of purchase should be analyzed to determine whether the investments can qualify for exclusion from the Section 301 levy.
Larger-scale strategies to minimize the bottom-line impact include reviewing sourcing strategies, including the potential of reshoring. Source: Industry Week, by Lauren Pittelli
Phoenix Heat Treating Expands Capabilities with Salt Bath Nitriding
Phoenix Heat Treating is thrilled to announce the addition of Salt Bath Nitriding to its lineup of services. For over 60 years, Phoenix Heat Treating has been dedicated to servicing their customers’ unique heat treatment needs. This new addition supports the growing demand for advanced surface treatment solutions and complements their existing service offerings providing a one stop shop for all thermal process needs.
Salt Bath Nitriding, also known as Ferritic Nitrocarburizing, is a thermochemical process that diffuses nitrogen and carbon simultaneously into the surface of ferrous metals. During this process, a two-part surface layer is formed: an outer iron nitride layer and a nitrogen diffusion layer beneath it. Nitrogen and carbon are absorbed and diffused uniformly into the metal surface, creating reproducible and uniform layers with a predetermined thickness. This results in significantly improved surface properties for ferrous metal parts, all while maintaining dimensional and shape stability. Salt Bath Nitriding is a popular case hardening technique, alongside carburizing and carbonitriding, both of which Phoenix Heat Treating performs.
It was originally created as an alternative to gas nitriding that would produce a more uniform case through surface contact between the substrate and liquid salt. This method of directly heating the part via salt allows for faster process times compared to gas nitriding. Additionally, when steel parts are placed into a preheated liquid salt, there is sufficient energy localized near the surface due to differences in chemical potential that then allows nitrogen and carbon species to diffuse from the salt into the steel substrate. The surface hardness a salt bath nitride part can range from is 800 HV to 1500 HV. Not only is the surface hardness high, the finish once polished is a beautiful jet black.
Salt Bath Nitriding/Nitrocarburizing is well known under various trade names, including MELONITE® and QPQ®.
The benefits of Salt Bath Nitriding include:
• Increased Wear Resistance: Enhanced durability of metal surfaces, leading to longer part life.
• Improved Fatigue Strength: Greater resistance to cracking under cyclic loading.
• Corrosion Resistance: Better protection against rust and oxidation.
• Improved Lubricity: Reduced friction and wear during operation.
• Cosmetic Black Finish: Aesthetic enhancement with a sleek black appearance.
• Quick processing time.
• Reduced shape distortion during the hardening process: The low processing temperature reduces thermal shocks and avoids phase transitions in steel.
Processing can be tailored to meet customer specifications or adhere to AMS 2753 standards, ensuring flexibility and compliance with industry requirements. With the introduction of Salt Bath Nitriding, Phoenix Heat Treating will now serve as a single source for both core hardening and the salt bath nitride finish, streamlining the supply chain and enhancing convenience for our customers. Not only can Phoenix Heat Treating adhere to AMS 2753, but they are pleased to share that Honeywell has approved them for this process.
Their process tank size accommodates parts up to 32” DIA X 48”. For smaller parts, drum processing is also available. Yet smaller parts such as detent buttons, rolls pins, internal firearm related parts and dental picks are all processed in handmade pouches,
providing versatility in handling various component sizes.
Nitriding is used for a range of applications, including:
• Medical equipment.
• Firearms and small weapons systems.
• Pump and gear components.
• High performance automotive parts.
• Oil & Gas.
• Mining & Marine equipment.
• Farming and Food processing equipment.
When asked for comment General Manager Charlie Hushek noted, “We are thrilled to add this business unit as it continues our efforts to be the most customer centric heat treater in the country. Salt bath nitriding is the first of a few big projects we are working on. It is nice to see it come to fruition.”
Tim Johnston, Director of Business development added, “There is a huge need for quality salt bath nitriding not only in Phoenix but the entire west coast, and we are pleased to offer support to those who need it.”
Phoenix Heat Treating continues to focus on its customers not only with the addition of new processes but by leveraging technology. Their entire quality system is paperless, and employees use iPads to track in and out of operations. Their latest 5 day Nadcap audit resulted in zero findings. This focus on technology has supply chain benefits for customers too. All Phoenix Heat Treating customers can log in and view live job tracking as well as download certifications and shipping tickets on demand. “I always like to say, we take the headache out of heat treat! Using digital tools to make communication effortless is what being a true partner looks like”, added Charlie.
For those not familiar with Phoenix Heat Treating, they offer an extensive array of services to their customers. Their heat treating processes include:
metallurgical engineering and inspection labs, their company can handle the most difficult heat treating and processing jobs. Guaranteed repeatable, documented procedures will ensure compliance to your required standards and certifications.
Phoenix Heat Treating is especially known for its ability to resolve difficult heattreating problems that are beyond the capability of a typical application. In fact, they fix many problems caused by other heat-treating shops who aren’t customer focused and unable to gauge microstructure and hardness chemistry. With stateof-the-art automation, computerized monitoring and control systems, in-house
It is clear that Phoenix Heat Treating spends time thinking about its customers. The addition of Salt Bath Nitriding underscores their commitment to delivering highquality, advanced heat treatment solutions.
Contact Phoenix Heat Treating today to learn more about how this new process can benefit your applications. Contact Tim Johnston TJohnston@Phxht.com
Secu rity; Colibrium Additive, formerly GE Additive; and StandardAero.
The StandardAero assembly line in Texas will eventually be able to produce 330 engines a year in a space of 100,000 square feet, according to Boom.
Centennial-based jet maker reaches deal on supersonic engine production
Centennial-based Boom said it expanded its existing maintenance, repair and overhaul partnership with San Antonio-based Standard Aero to include production of the engine, named Symphony.
StandardAero had been a part of the project since Boom announced in late 2022 it would develop a engine for its faster-than-sound jetliner on its own after a partnership with Rolls Royce ended.
The development is being done with partners Florida Turbine Technologies, a business unit of Kratos Defense and
Boom has begun tests of Symphony components, with the first parts produced, including fuel nozzles and turbine center frames, and expects to have a full-scale engine core operational in late 2025 for testing the compressor, combustor and turbine section, the company said.
Boom a month ago celebrated the completion of its 180,000-square-foot Overture aircraft production building on the grounds of Piedmont Triad International Airport where it plans to eventually employ 2,400 people.
The company held successful initial tests of a mockup using key technology and design techniques, and announced it’s gotten federal OK to proceed to supersonic testing.By David Hill – Triad Business Journal
in a fl ying experience that is both innovative and instantly familiar. Our Symphony engine has quickly progressed through design into hardware rig testing, and with a fully operational engine core on track for next year, our rapid development approach is pacing ahead of schedule.”
In England, Boom also showed off its flight deck, incorporating the Anthem avionics suite from Honeywell, being developed for Overture.
Equipment Finance Market
Confidence Reaches
Highest Level Since Early 2022
“Ou r overall confidence in the near-term future of the industry is high. We’re expecting economic conditions for businesses to improve over the next six months as interest rates decline and investment in U.S. manufacturing continues to grow,” says survey respondent Jeff Elliott, president of Huntington Equipment Finance.
Newly released survey results show improved confidence in the equipment fi nance sector. The August 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) reached 58.4, the highest level since February 2022, the Equipment Leasing & Finance Foundation reported Wednesday. The index shows an increase from the July figure of 50.7.
According to the August survey results, 37.5% of respondents believe business conditions will improve over the next four months, a dramatic increase from just 3.9% last month. During the same time period, 45.8% of the executives expect conditions to remain the same.
Up from 11.7% in July, 41.7% of leadership believe demand for loans and leases to fund capital expenditures will increase in the next four months. In addition, 33.3% of executives believe their company will increase spending on business development in the next six months.
91.7% of the survey respondents rate the current U.S. economy as “fair,” and the remaining 8.3%
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evaluate it as “poor.” None of the executives rate the economy as “excellent.”
“Interest rates are expected to decrease shortly. Historically when this happens businesses tend to increase their capex spending. I believe there is pent-up demand in several sectors that are waiting for this interest rate reduction to happen. Interest rates typically impact transactional business and equipment finance is one of those industries,” says survey respondent Donna Yanuzzi, EVP of 1st Equipment Finance Inc.
The Equipment Leasing & Finance Foundation surveys key leadership in the equipment finance sector. MCI survey demographics are available on their website.
www.westernstatesmetals.com
Will this merger remake Utah’s defense industry?
Utah’s largest industry associations in defense and advanced manufacturing announced they will combine forces to expand the state’s national security sector.
The merger between 47G, Utah’s recently rebranded association of aerospace and defense, and UAMMI, Utah’s Advanced Materials and Manufacturing Initiative, brings the state’s top advocates for military innovation and specialized mineral extraction and manufacturing under the same roof.
“What’s remarkable about this merger with UAMMI is that all of these advanced aircraft rely on minerals and materials for production and so this merger in a very real way is the coming together of a supply chain right here in our backyard,” 47G President and CEO Aaron Starks told the Deseret News. Starks, the former chief revenue officer of World Trade Center Utah, said by combining forces, the newly named
“Retail sales are up, and sectors such as transportation, logistics, warehousing, and construction are performing extremely well,” Arora added. “Right now, business owners are confident in the future of their firms. August is typically a slow month for loan volume, but that wasn’t the case this year.”
47G UAMMI Institute will continue to make Utah “the world’s premier ecosystem for aerospace, defense and cyber companies.”
Utah mines can provide 40 out of 50 minerals that the Department of Homeland Security has identified as critical to the national security of the United States, Starks said, making it a logical next step to unite the groups advocating for the state’s growing defense and mineral sectors.
Business loan approval rates rose at regional and community banks as well. Small banks granted 49.8 percent of the funding requests they received in August, up one-tenth from July. It represents the highest figure for small banks since November 2014.
Institutional lenders — pension funds and insurance companies — remained unchanged at an Index record 64.9 percent, up one-tenth of a percent from July’s figure.
The announcement is just the latest in a series of mergers and leadership changes meant to bring Utah to the leading edge of national security innovation.
Loan approval rates among alternative lenders rose to 56.6 percent, one-tenth of a percent higher than in the previous month.
Former Utah congressman and U.S. Air Force pilot Chris Stewart was named chairman of 47G shortly before its rebrand. Prior to his resignation from Congress on Sept. 15, Stewart served on the powerful House Intelligence Committee where he was regularly briefed on top-secret security information that built on his knowledge from 14 years in the United States Air Force.
Alternative lenders have become a source of quick capital. When small business owners, alternative lenders could approve riskier loans via innovations in fintech, which give them more flexibility than the banks to adjust rates and covenants on the deals. This includes an ability to accept non-conventional sources of collateral, such as real estate and outstanding invoices (h/t Forbes).
“The 47G and UAMMI merger is a huge win for Utah and for the country,” Stewart said. “I have seen firsthand how advanced materials in the aerospace and defense industry enhance our economy and protect our national security.”
Credit unions approved 40.2 percent of loan applications in August, a slight drop of one-tenth of a percent from July and a large drop from their all-time high of 57.9 percent in March 2012. By Anthony Noto – Reporter, New York Business Journal
Beginning in 2022, the Utah Aerospace and Defense Association has served as the first-ever convening body for aerospace and defense companies in the state of Utah. It promotes and represents over 120 companies that are working to develop the next generation of national security technology across three industry sectors, according to the press release. Their members include aerospace behemoth Boeing, defense contractor Northrop Grumman, and drone delivery company Zipline.
They also work in close communication with the Governor’s Office of Economic Opportunity, World Trade Center Utah, the state Legislature and institutions of higher education.
The aerospace and defense industry is booming in Utah. From well-known large companies, down to small startups, there are more than 1,000 companies and half a dozen military installations across the state. Together, they make up almost 20% of the state’s economic activity, as the Deseret News has previously reported.
Retaining seven of the largest defense contractors in the world in Utah is only sustainable if the state’s universities work in concert with the industry, Starks said.
“We aren’t going to solve any of the challenges that
we face around innovation, supply chain, workforce development, unless we’re doing it in partnership with technology being commercialized at universities. So by bringing them in, we brought industry closer to academia to enrich the (research and development) experience.”
Multiple Utah universities are also members of 47G. Starks said the state’s Higher Education Committee on aerospace and defense recently completed a process of sharing their vision of how they want to lead the nation in these sectors, including a proposal from the University of Utah to build a space station in the west desert, something they have approached Boeing about doing, Starks said.
“The next generation of talent is being developed on university campuses,” Starks said. “And we need to tell the aerospace and defense story in a compelling way to where we can win that talent and industry.”
By: Scott G Winterton,
Deseret News
Denver-based VC firm raises $150M to fund clean energy innovations
Blackhorn Ventures, a Denver-based venture capital firm, has raised $150 million it says it will invest in innovations at the intersection of clean energy, manufacturing and artificial intelligence.
The Industrial Impact Fund II, LP will deploy seed and Series A stage investments focused on “capital-efficient software solutions, vertical SaaS companies, and AI applications” to further efforts around industrial resource efficiency and decarbonization.
“We are at a pivotal moment where the AI supercycle and the manufacturing supercycle are colliding with historic changes in our energy and transportation systems,” Melissa Cheong, general partner at Blackhorn Ventures, wrote in a statement. “Our third fund is well positioned to support founders at the forefront of industrial AI, addressing critical labor shortages, and delivering scalable decarbonization solutions. With six early markups across this portfolio, we believe our thesis is timely and essential to ensure the economic competitiveness and durability of our most critical industries.”
Blackhorn Ventures was founded in 2017 and is focused on accelerating the energy transition by investing in
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energy, transportation, real estate and construction, and supply chain and logistic.
The Industrial Impact Fund II is poised to capitalize on the $1.7 trillion opportunity in industrial resource efficiency and the projected $4.5 trillion investment needed for the global energy transition by 2030, the company said in a press release.
The fund is investing in startups working to “revolutionize” the industrial landscape using artificial intelligence, Blackhorn Ventures said.
It recently led the Series A funding for Chicago-based robotics company, Formic, which raised $27.4 million to expand automation services for U.S. manufacturers. Other start-ups it helped fund include Circuit Mind, a London-based software company; ThinkLabs AI, Inc, a New York City-based technology start-up; Specifix, a California-based HVAC assets start-up; EcoWorks, a Berlin-based climate startup; Optera, a Boulder-based carbon management software consulting firm; and Electric Era, a Seattle-based electric vehicle charging company.
“Strategic corporate partnerships are crucial for scaling impact,” Phillip O’Connor, who co-leads the firm with Cheong, wrote in a statement. “We’ve been investing in machine learning and AI since 2017 and are privileged to bring this experience to bear on collaborations with a select group of multinationals that share our vision, and are committed to supporting groundbreaking digital infrastructure.”
Blackhorn Ventures focuses on funding start-ups that are women or minority-led given that only 3% of the $107B raised by venture funds in 2023 went to VC firms with women in leadership positions, according to the press release.
The VC firm recently partnered with multinational corporations including Mitsubishi Electric, Westlake Corporation and Mercuria Energy and commitments from Jonathan Rose, Goldbeck GmbH, Simpson Strong-Tie and the Grantham Foundation, according to the press release.
Boris Bystrov, the investment managing director at Mercuria Energy, wrote that the partnership with Blackhorn Ventures aligns with their mission of “driving the energy transition through innovative digital infrastructure and sustainable solutions.”
“By leveraging AI and advanced technologies, we can accelerate decarbonization efforts and enhance operational efficiencies across the industrial sector,” Bystrov wrote in a statement. “We look forward to supporting the transformative impact this fund will have on the global energy landscape.” By Moe Clark – Data Reporter, Denver Business Journal
Buyer’s Guide & Card Gallery
ACCESSORIES
Abrasive Products
Barton International ____ 800-741-7756
Chemtool Inc. _______ 815-957-4140
Balancing Machines
HAIMER ________ 503-726-8202
Bandsaw Blades
Roentgen USA _______ 847-787-0135
Bar Pullers
Accudyne Corp _______ 303-991-1500
Edge Technologies ______ 951-440-1574
Boring, Grooving, Milling, Turning Tools
Fullerton Tools ____ 989-799-4550
Sulli Tool & Supply ___ 714-863-6019
Ceramic Tools
THINBIT __________ 888-THINBIT
Clamps & Grips
Hainbuch ________ 818-970-7874
SCHUNK _________ 919-602-8294
CNC Collet Chucks
Hainbuch ________ 818-970-7874
Royal Products _______ 800-645-4174
Sulli Tool & Supply ____ 714-863-6019
Collet Fixtures
Royal Products _______ 800-645-4174
Sulli Tool & Supply ____ 714-863-6019
Compressor Systems
Ingersoll Rand _____ 206-472-0826
Coolant Systems
Chemtool _________ 815-957-4140
Chipblaster ________ 310-502-4184
MP Systems ________ 909-282-7463
Qualichem, Inc. ______ 480-320-0308
Star Metal Fluids _____ 800-367-9966
Coolant Chillers
Chipblaster ________ 310-502-4184
MP Systems ________ 909-282-7463
Custom Tools
Fullerton Tools ____ 989-799-4550
Machine Tool & Cutter Grinding 435-512-4416
EDM: Tooling Systems
THINBIT __________ 888-THINBIT
Cutting Fluids & Oils
Tools
Fullerton Tools ____ 989-799-4550 Drills
Machine Tool & Cutter Grinding 435-512-4416
Dust Collectors, Filtration Equip.
Star Metal Fluids _____ 800-367-9966
EDM Materials & Supplies
Desert EDM Sales ____ 480-816-6300
EDM Network _______ 480-836-1782
EDM Perform. Access. ___ 800-336-2946
Global EDM Supply ____ 480-836-8330
Star Metal Fluids _____ 800-367-9966
EDM: Tooling Systems
EDM Perform. Access. ___ 800-336-2946
End Mills
Fullerton Tools ____ 989-799-4550
HAIMER ________ 503-726-8202
Machine Tool & Cutter Grinding 435-512-4416
Filtermist Mist Collectors
Royal Products _______ 800-645-4174
Fire Detection Systems
Sulli Tool & Supply ___ 714-863-6019
Gage Blocks
Grinding ____ 801-487-9700 Lifting & Material Handling Systems Ingersoll Rand _____ 206-472-0826 Live Tools