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Manufacturing Weekly

Monday, February 6, 2012

W-O-W grant to train 550 new workers

W-O-W Workforce Development Inc. plans to train more than 550 new manufacturing hires on the job with a $4.9 million grant from the U.S. Department of Labor.
W-O-W, an eight-agency partnership that serves Washington, Ozaukee and Waukesha counties, was awarded the H1-B Training Individuals for Manufacturing Employment grant in October and hired four new employees to administer the grant. They started disbursing money to employers this month and must pay out all the funds within four years.
The grant allows W-O-W to pay a new employee’s wages during his or her initial training, up to 499 hours, said Francisco Sanchez, president of W-O-W Workforce Development Board.
“We are working with companies who are in the process of hiring individuals,” Sanchez said. “We reimburse from 50 to 90 percent of the wages of the employee.”
The percentage of wage reimbursement is based on the number of employees at the company that is hiring and the complexity of skills the new hire needs to learn, he said.
An interested employer who is eligible for the program gives W-O-W the details of the training process, skills needed, length of training and salary. The workforce agency draws up a contract and the employee can be hired within a few days, said Shelly Flaten-Moore, program manager.
Those looking for manufacturing work can also work with W-O-W to match with a job that is eligible for its grant.
W-O-W held a breakfast for about 40 employers recently to let them know about the available funding for new hires.
“It’s kind of a unique and different approach responding to the needs of manufacturers,” Flaten-Moore said.
The agency hopes the grant can help bridge the skills gap that currently exists in manufacturing.
“Twenty-three percent of (WOW area) industries are manufacturing and they are hiring,” Sanchez said. “This is just one more additional avenue that we have to assist businesses in getting the employees they need.”

U.S. manufacturers continue to ramp up production

Economic activity in the nation’s manufacturing sector expanded in January for the 30th consecutive month, and the overall economy grew for the 32nd consecutive month, according to supply executives in the latest Manufacturing ISM Report On Business.
The Purchasing Managers Index report was issued by Bradley Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
"The PMI registered 54.1 percent, an increase of 1 percentage point from December's seasonally adjusted reading of 53.1 percent, indicating expansion in the manufacturing sector for the 30th consecutive month. The New Orders Index increased 2.8 percentage points from December's seasonally adjusted reading to 57.6 percent, reflecting the 33rd consecutive month of growth in new orders. Prices of raw materials increased for the first time in the last four months. Manufacturing is starting out the year on a positive note, with new orders, production and employment all growing in January,” Holcomb said.
Any reading over 50 percent indicates growth. The January seasonally adjusted Milwaukee PMI, accounting for southeastern Wisconsin and northern Illinois, was 58, as reported by Marquette University.
Of the 18 national manufacturing industries, nine are reporting growth in January, in the following order: Apparel, Leather & Allied Products; Petroleum & Coal Products; Machinery; Computer & Electronic Products; Transportation Equipment; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; and Primary Metals.
The seven industries reporting contraction in January are: Plastics & Rubber Products; Furniture & Related Products; Wood Products; Chemical Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Textile Mills.
The strong data for the manufacturing sectors sparked a rally on Wall Street.

Regal Beloit acquires Milwaukee Gear Company

Regal Beloit Corp. announced it has acquired Milwaukee Gear Company, a manufacturer of highly engineered gearing components for oil and gas applications as well as a wide variety of other commercial and industrial applications.
The acquisition price was $80 million, subject to customary working capital adjustments, and was paid in cash.
Milwaukee Gear is expected to add approximately $60 million in revenue for the remainder of fiscal 2012. The acquisition is expected to add 3 to 6 cents to Regal Beloit’s diluted earnings per share in 2012, including the impact of purchase accounting adjustments and transaction costs, and 12 to 16 cents to diluted earnings per share in 2013. Results of operations will be reported in the Mechanical segment.
Milwaukee Gear operates a plant in Milwaukee at 150 North Port Washington Road.
"Milwaukee Gear is a very well-managed business with an excellent reputation resulting from its application engineering excellence and its high precision manufacturing processes," said Mark Gliebe, chairman and chief executive officer of Regal Beloit. "The business will be a great fit within our Mechanical segment, allowing us to offer customers a larger range of gearing solutions while diversifying our end markets.”
Additional details of the transaction will be provided during Regal Beloit’s previously announced fourth quarter and fiscal year earnings conference call on Tuesday Feb. 7 at 9 a.m. Central time.

Generac acquires Georgia manufacturer

The growth continues for Generac Holdings Inc. a Waukesha-based designer and manufacturer of generators and other engine powered products, which announced that one of its subsidiaries has acquired substantially all of the assets and certain liabilities of Gen-Tran Corp., a leading transfer switch and portable generator accessory manufacturer located in Alpharetta, Ga.
Gen-Tran’s product offering fits strategically between Generac’s existing portable generator and home standby product offering, providing a broader set of solutions for consumers and allowing the combined companies to capture additional accessory sales.
Steve Goran, vice president of business development for Generac, said, “Adding Gen-Tran products to our offering will better position our portable products as safe, reliable backup solutions while complementing our fully automatic home standby solutions. By merchandising our products together across broadened distribution channels, we believe we can capture incremental sales opportunities through a more informed consumer, further building on our position as the leader in residential backup power”
Gen-Tran president Jack Mandula will continue to manage Gen-Tran’s operations in Alpharetta. Gen-Tran’s current management team and staff have joined Generac upon closing and will help lead the integration of the company’s products and operations.
Mandula said, “As we transition under Generac’s ownership, we will continue to provide high-quality products and support to our customers. We are excited to be a part of a well-resourced company whose broad product offering and distribution channels offer tremendous opportunities for our products and customers.”

Earnings rise for Modine

Modine Manufacturing Company, a Racine-based provider of thermal management technology and solutions, reported fiscal third quarter net earnings of $8.3 million, or 18 cents per share, up from $5.6 million, or 12 cents per share, in the same period a year ago.
The company’s quarterly sales grew to $373 million from $360 million a year earlier.
"We had another solid quarter, with a $7.1 million or 77 percent improvement in earnings from operations," said Modine president and chief executive officer Thomas Burke. "Our net earnings were negatively impacted by $2.1 million of foreign exchange losses and a $2.2 million asset write-off. Despite these impacts, our earnings per share increased 50 percent. Also during the quarter, we began to see softening in the European truck and premium automotive markets, and our Asian customers began working down inventory levels in the construction equipment market. These factors, combined with the foreign exchange losses, are prompting us to lower full year fiscal 2012 guidance for revenue growth and earnings per share."

Kohler unveils new Sandhill luxury cabin

Kohler Co. has opened the doors to Sandhill, its newest luxury lodging destination.
The secluded private cabin is nestled on more than 350 acres outside of Kohler, Wis., and is close enough to take advantage of the five-star amenities offered by The American Club Resort, yet remote enough to enjoy the peacefulness and tranquility that only nature can provide, the company said.
Sandhill is a reclaimed timber-framed private cabin with 2,000 square-feet of interior space on three levels. It includes reclaimed wood from six barns throughout Wisconsin and sleeps up to six adults.
Named for the pair of Sandhill Cranes that return each year to the property, the private cabin is a getaway for groups looking to relax with outdoor activities, a private sauna and poker room.
The expansive wrap-around porch provides panoramic views of pine woods, prairie grass fields, a wildlife pond and hiking trails. The private cabin boasts an eye-catching red metal roof.
“Our guests travel from all over the world seeking unique and memorable experiences,” said Christine Loose, resident manager of The American Club Resort and Inn on Woodlake. “Sandhill provides the perfect retreat for families and friends who want to appreciate nature and tranquility, while enjoying the finest amenities.”
Sandhill is open year-round with seasonal activities throughout the year. Prices begin at $785 per person on weekdays with a three-night minimum. Members of River Wildlife, receive a 15 percent discount on lodging at Sandhill. For additional information, visit www.AmericanClub.com.

Harley to celebrate 110th anniversary in 2013

Harley-Davidson Inc. will celebrate 110 years of motorcycles and riding experiences with an array of global events and activities in 2013.
Among the events during the year-long celebration will be a rally in Rome, Italy, June 13-16, and a massive party over Labor Day weekend, Aug. 29-Sept. 1, in Milwaukee.
The anniversary celebrations every five years have become a tradition for Harley riders and a boost for the Milwaukee tourism industry.
Harley-Davidson also will celebrate the 30th anniversary of the Harley Owners Group (H.O.G.) globally, including during the Labor Day weekend in Milwaukee in 2013. H.O.G., the official riding club of the Motor Company, boasts about 1 million members worldwide.
"Harley-Davidson is synonymous with adventure, passion and the experience of the open road," said Mark-Hans Richer, Harley-Davidson senior vice president and chief marketing officer. "For this 110th celebration, our customers all around the world - with our support - are going to be taking everything to the next level and making their own history."
Information on housing options in Milwaukee and Rome is available at www.harley-davidson.com/110. Additional details about the global 110th anniversary will be announced in the coming months.
Harley-Davidson Inc. also announced the introduction of two new motorcycle models, the Seventy-Two and the Softail Slim, each inspired by current trends in the American garage-built custom motorcycle scene.
Both new models are mid-year additions to the 2012 Harley-Davidson motorcycle line-up, and will be available immediately at authorized Harley-Davidson dealers.
Based on the Harley-Davidson Sportster platform, the Seventy-Two introduces Hard Candy Big Red Flake, a sparkling, metal flake color option applied to the fuel tank and fenders. A solo seat and side-mount license plate bracket leave much of the chopped rear fender - and more of that paint - exposed on the Seventy-Two.
The Slim represents the Harley-Davidson Softail motorcycle paired down to its essential elements in the style of custom bobbers of the 1950s, from its trimmed front fender to its narrow rear end, solo seat and minimal chrome. A cross-braced Hollywood handlebar and headlight nacelle are finished in gloss black. Other period styling cues include a "cat's eye" tank console, half-moon rider footboards, and gloss black wheel rims and hubs.

Snap-on caps robust year

Snap-on Inc. reported fourth quarter net earnings of $74.3 million, or $1.27 per share, up from $57.9 million, or 99 cents per share, in the same period a year ago.
The Kenosha tool manufacturer’s quarterly sales grew to $736.6 million from $696.9 million a year earlier.
The company’s full year 2011 sales of $2.85 billion increased 9.0 percent from prior year levels. Full year 2011 net earnings were $276.3 million, or $4.71 per diluted share.
"Our fourth quarter results extend our ongoing trend of year-over-year increases in sales and earnings," said Nick Pinchuk, Snap-on chairman and chief executive officer. "We believe they once again offer clear testimony to the continued advancements we're making along our defined runways for coherent growth, which are those strategic areas of importance we have identified as being decisive to our future: enhancing the franchise network, expanding in the vehicle repair garage, extending into critical industries, and building in emerging markets. We further believe our fourth quarter and full year 2011 performance underscores our commitment to the Snap-on Value Creation Processes, which has enabled us to further navigate our runways for improvement in the crucial areas of safety, quality, customer connection, innovation and rapid continuous improvement (RCI) and has fueled our ongoing trend of increasing profitability. Finally, our encouraging results for both the fourth quarter and full year of 2011 reflect significant effort and achievement across our entire company; I thank all our franchisees and associates worldwide for their dedication to Snap-on and for their ongoing contributions and commitment to our team."

Johnson Outdoors compensates for drop in military sales

Racine-based Johnson Outdoors Inc. reported a fiscal first quarter net loss of $2.9 million, or 30 cents per share, compared with a net loss of $1.2 million, or 13 cents per share, in the same period a year ago.
Among the factors that produced the net loss were non-recurring costs and charges totaling $1.1 million related to restructuring of European operations and an asset write-off associated with the transfer of the company's historic Old Town Canoe facility to the city of Old Town, Maine.
The company’s announced revenue grew 2 percent to more than $80 million during the quarter, despite a 66-percent drop in year-over-year military tent sales.
"Steady recovery of outdoor recreational markets remains central to continued progress against our strategic plan to ensure sustained profitability. Current economic conditions in key regions present a mixed picture of expectations for outdoor markets the remainder of the year. In North America and Asia, initial indicators are favorable for ongoing recovery, while uncertainty continues throughout Europe, particularly in southern European markets," said Helen Johnson-Leipold, chairman and chief executive officer. "While it is too early to predict how the year will go, our focus remains on sustaining marketplace momentum, gaining additional share and strengthening operations."

AdvancePierre Foods and Johnsonville Sausage form strategic alliance

Cincinnati-based AdvancePierre Foods and Sheboygan Falls.-based Johnsonville Sausage have formed a strategic alliance, leveraging AdvancePierre Foods’ foodservice organization and distribution system to deliver Johnsonville Sausage to foodservice customers across the United States.
The partnership will make AdvancePierre Foods the exclusive foodservice distributor of Johnsonville Sausage.
“This partnership is bringing together two businesses that share a passion for producing delicious, high-quality food products,” said Bill Toler, CEO of AdvancePierre Foods. “As our company continues to grow, we look forward to enhancing our product portfolio and bringing our customers the best-tasting, most satisfying products on the market.”
The partnership with AdvancePierre Foods will make Johnsonville Sausage available to more customers across the country, the companies said.
“For more than 65 years, Johnsonville has been known for producing only the highest-quality, most flavorful sausage,” said Johnsonville President Bill Morgan. “We look forward to our continued growth and presence on the menus of restaurants and other venues, sharing the legendary flavor of Johnsonville Sausage with even more consumers, through this new strategic partnership with AdvancePierre Foods.”
Johnsonville products will be available to AdvancePierre Foods’ customers in the second quarter of 2012.

Cleveland company adds warehouse in Franklin

Cleveland-based Action Industries announced that it has recently expanded its operations to include a 45,000-square-foot warehouse facility in Franklin. Intended to lower shipping times and costs, the facility provides a logistical advantage for Action Industries when distributing its products across the Midwest.
Action Industries is a nationwide, full service supplier and manufacturer of parts and accessories for the garage door industry.
“Our new facility… complements our warehouse and shipping centers in Tempe, Ariz. and Atlanta,” said Marc Calcaterra, vice president of operations for Action Industries.
The new distribution center is capable of servicing all of southeastern Wisconsin and Illinois.
"Our goal is to ensure that customers are receiving their orders as efficiently and cost-effectively as possible," said Calcaterra.

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Molly Newman This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Molly Newman. This bulletin is published every Monday morning. Send manufacturing industry news and tips to molly.newman@biztimes.com or call her at (414) 336-7144.

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