Manufacturing Weekly for Monday, March 17, 2008

Monday, March 17, 2008

Ruud Lighting to launch new division this summer

Ruud Lighting Inc., a Racine-based manufacturer of lighting products, will launch KramerLED, a new interior LED lighting division, in May.

Orders will begin shipping by late July or early August, said Alan Ruud, president and chief executive officer of the company.

KramerLED's lights are designed for commercial, institutional and government buildings. Ruud Lighting owns Kramer Lighting and Beta Lighting. KramerLED is a division of Kramer Lighting.

Last spring, Ruud Lighting launched BetaLED, a division of Beta Lighting that produces LED lighting used for exterior lighting for commercial, manufacturing and governmental buildings.

Ruud Lighting has more than 550 employees in its 450,000-square-foot headquarters and manufacturing facility in Racine, Ruud said.

BetaLED's products have been on the market for less than one year now, but their early success has encouraged Ruud Lighting to launch KramerLED this year, Ruud said.

"All of the projects that we've done have led to more and more projects," he said. "The results have been so spectacular - they've met all of the claims we've made. If (customers) are willing to invest the money, there is no down side (to LED lighting)."

LED lighting uses far less energy than traditional lighting sources, Ruud said, and LED bulbs have much longer life spans. Despite higher purchase prices, LED lights and fixtures result in long-term savings because of lower energy use and longer life, he said.

Ruud Lighting is seeing more customers willing to adopt energy-saving technology, Ruud said, which makes him believe that both KramerLED and BetaLED have bright futures.

"I believe that within two or three years, KramerLED and BetaLED will be larger than the rest of the company combined," he said. "This is the first revolution in lighting since the fluorescent lamp in the 1930's. It will change lighting like solid state changed computers. We're in a digital age now, including lighting."

With the introduction of KramerLED, Ruud Lighting will have offerings for building interiors and exteriors. Both KramerLED and BetaLED are aimed at commercial, industrial and governmental buildings, Ruud said.

Eventually, the companies will likely make products for the home market, he said.

"Because of the price point, commercial and institutional (buildings) are a better market," Ruud said. "The first costs are more, but there are tremendous savings. There is (virtually) no maintenance."

In addition to its Racine headquarters and manufacturing facility, Ruud Lighting also owns a smaller manufacturing facility in Italy, an assembly plant in Australia and sales centers in Canada and Dubai, Ruud said. As demand for its LED products grows, the company will likely expand those facilities, he said.

"We're doing all of the manufacturing in Racine at this time," Ruud said. "At some time, we will be manufacturing in Europe and Australia."

Quad/Graphics to expand West Allis facility

Quad/Graphics Inc. will expand its Wisconsin operations with two major construction projects: a 192,000-square-foot expansion of its West Allis plant for the company's growing direct mail operations; and, as previously announced, a new 388,800-square-foot distribution center in Menomonee Falls for cross-docking freight produced in its five Wisconsin plants.

"These two construction projects are exciting news for our company, our clients and our community," said Joel Quadracci, president and chief executive officer of the Sussex-based firm. "We are investing in our platform to give our employees advancement opportunities and to give our clients the most sophisticated printing and distribution capabilities."

"We're putting on these expansions in anticipation of future growth," Quad/Graphics spokeswoman Claire Ho told SBT. "Over time, we could add between 50 and 100 jobs."

The West Allis expansion, which will cost $12 million to $14 million, will enhance Quad/Graphics' direct mail production capabilities, adding production space on the northwest side of the plant. Construction is scheduled to begin in April, with completion anticipated by the end of March 2009.

The existing West Allis plant, opened in 1994, comprises nearly 1 million square feet and employs about 1,000 people. The plant is the headquarters to Quad/Graphics' QuadData Solutions subsidiary and houses an extensive lineup of custom web, sheetfed and digital presses as well as an array of finishing equipment including saddle stitchers, perfect binders and inserters.

Quad/Graphics' new distribution center in Menomonee Falls will be used to cross-dock less-than-full truckloads of freight from Quad/Graphics' Wisconsin plants for expediting delivery of client product to U.S. Postal Service locations nationwide. The facility, which will feature 49 loading docks, is scheduled to open in April 2009.

The new distribution center will replace an existing leased facility a few miles southeast of the new location.

Chicago-based First Industrial Realty Trust Inc. will construct the new distribution center on a 22-acre parcel in an industrial park it is developing near U.S. Highway 45. Construction could begin in June. First Industrial will lease the space back to Quad/Graphics.

Small Business Times announced last week that it will honor Quad/Graphics founder Harry Quadracci posthumously with its Bravo! Entrepreneur Lifetime Achievement Award. Joel Quadracci and other members of his family will accept the award on his father's behalf at the Bravo! Entrepreneur Awards Luncheon on Thursday, April 1.

Wisconsin Manufacturing News

Gaco Western receives $8 million in bonds
Gaco Western LLC, a Waukesha-based manufacturer of roofing, decking and waterproofing systems, recently received $8 million in industrial revenue bond allocations from the state of Wisconsin.
The company will use the funds to help acquire a 7.18-acre site, build and equip a 53,500-sqare-foot production facility. The new plant will expand Gaco Western’s capacity as a manufacturer of polyurethane foam and urethane coatings.
The project is estimated to cost $9.2 million and generate seven new jobs.
"Gaco Western is thrilled to center its manufacturing future in Waukesha," said Gaco Western President Peter Davis. "In these difficult economic times, the Industrial Revenue Bonds are the reason we could triple our manufacturing capabilities in Wisconsin.”
Industrial Revenue Bonds are bonds free of federal tax issued by local governments, and the proceeds are loaned to new or expanding businesses for development projects. The interest rate is generally below the going prime rate.

Wixon to build new culinary center in St. Francis
Wixon Inc., a national food ingredients company in St. Francis, broke ground recently on a new culinary center to create and test food specialties, a meat pilot plant to develop new meat products and demonstration area.
The 4,200-square-foot culinary center and meat pilot plant, to be called the Wixon Innovation Center for Culinary & Protein, will add to Wixon's food research and development capabilities for itself and its customers. The $2 million addition will also provide an area for Wixon to showcase products it creates for visiting customers.
The culinary center will be equipped with professional Viking appliances, griddles, charbroilers, Sub-Zero refrigeration units, and a high-end presentation and conference area, complete with digital audio-visual equipment.
Wixon vice president of research and development Mariano Gascon said the company plans to hire additional staff for the center.
Peter Gottsacker, Wixon president, said the new culinary center and meat pilot plant "are more than just an extension of our facilities. They represent a blending of innovation, our passion for service and another major step forward for our company to be able to do the important research and testing for our customers that can save them countless hours of time as well as tremendous expense."
In conjunction with the new center, Wixon recently added corporate chef Judson McLester, who will be in charge of much of the product testing, evaluating and product formulations.
Wixon is one of the nation's leading producers of food ingredients, including custom-ground spices, blended seasonings, sweet and savory flavors, and a variety of finished food products.

Made in Milwaukee

Dynaseal taps consumer products for future growth

Dynaseal Inc., a Racine-based manufacturer of heat-treated vinyl products, is looking to its two consumer products, the RainDrain and the DynaTrap, for future growth. To read more, click here.
For a list of past Made in Milwaukee profiles, click here.

Manufacturing Odds & Ends

Windmills will power S.C. Johnson's Michigan plant
S.C. Johnson & Son Inc. has signed a five-year deal in which it will receive 46 percent of its electricity at its manufacturing plant in Bay City, Mich., from giant windmills.
The windmills are provided by Spartan Renewable Energy, which will generate 31.5 million kilowatt hours annually.
Racine-based S.C. Johnson is one of the first manufacturers in Michigan to use windpower.
The Bay City wind power project helps the company keep 29,500 tons of carbon dioxide out of the atmosphere annually. The energy saved is comparable to the energy needed to supply electricity to 1,800 average homes per year, and the CO2 reduction is equivalent to taking almost 3,000 cars off of the road annually.
"In addition to helping accomplish our global renewable energy goal, this initiative further reduces the company's reliance on coal-fired electricity," said Fisk Johnson, chairman and chief executive officer of S.C. Johnson. "As a family company, we're committed to exploring innovative technologies that hold the promise of cleaner, more efficient energy. This is a great step for S.C. Johnson, and for the future generations that will be affected by the environmental choices all of us make today."
The addition of the renewable energy source helps S.C. achieve its goals of reducing its greenhouse gas emissions.
The Bay City project follows S.C. Johnson's efforts to slash coal-fired energy dependence at the company's largest global manufacturing plant, the Waxdale plant in Racine. In 2003, SC Johnson installed a cogeneration turbine that provided Waxdale with energy using methane piped in from a local public landfill. The company added a second turbine in 2005, which is powered primarily by natural gas. The twin turbines meet the average daily base-load electrical demand of the facility.

Trek mourns the loss of its founder
Trek Bicycle Corp.'s employees are mourning this week after the loss of Richard "Dick" Burke, the company's co-founder and chairman, who died in a Milwaukee hospital March 10 from complications of cardiac surgery.
Burke was 73 years old.
"He said goodbye knowing that his wife loved him, his kids loved him, and that he had so many friends all over the world who followed his fight pulling for him all the way," said Burke's son and Trek's chief executive officer, John Burke. "There is a reason that a man five- foot-eight is called 'The Big Guy.' He was a small man with a very big heart. He leaves behind a great spirit and a legacy that to whom much is given much is required."
Born in Chicago in 1934, Burke attended Marquette University, earning a bachelor's degree from the College of Business Administration.
After college, Burke worked for a handful of companies before landing a job with Milwaukee-based appliance distributor Roth Distributing in 1960. With a knack for finance, Burke eventually became the company's treasurer and a shareholder. In 1976, with $100,000 in seed money from Roth and a hunch that a high-quality, American-made frame could fill the gap between Schwinn and the imported Japanese frame market, Burke started Trek Bicycle in a rented red pole barn in Waterloo, Wis.
Under Burke's leadership, Trek grew to become the largest U.S. bicycle manufacturer.
Through his Trinity Foundation, Burke has also contributed tens of millions of dollars to community organizations in the greater Milwaukee area, including a cooperative program between Mount Mary and Alverno Colleges for future urban teachers, as well as a program at Mount Mary for women from the inner city of Milwaukee who are working toward a college degree.
On average, Burke's Trinity Foundation gives between $2.5 million to $3 million to the Milwaukee area each year.
Burke is survived by his wife, Camille, five children (including former Wisconsin Department of Commerce Secretary Mary Burke), and 11 grandchildren.

Brady Corp. to buy back shares
Brady Corp.'s board recently authorized a buyback of up to 1 million additional shares of the company's stock. Brady said it has nearly completed a 1 million share buyback authorized by the board in September. The company has about 50.8 million shares outstanding.

Calendar

Learn How to Market and Sell to the Federal Government Seminar, April 9, from 9 to 11 a.m., CATI Center, 2320 Renaissance Blvd., Sturtevant; presented by the U.S. Small Business Administration and UW-Parkside Small Business Development Center; to register call (262) 898-7442.

Godfrey & Kahn's 19th annual Labor & Employment Law Update, April 24, Milwaukee Marriott West, Waukesha. Break-out sessions will include Investigation and Inspections: What to Do When the Government Comes Calling; Managing the Electronic Workplace: E-Discovery & Record Retention; Handling Agreements: Offer Letters, Severance Agreements, etc.; and 2007 Rulings in Wage-and-Hour Litigation. To register call Melanie Bloom at (414) 287-9455 or mbloom@gklaw.com. For more information, visit www.gklaw.com.

Associated General Contractors of Greater Milwaukee, AGC-GM office, 10400 Innovation Drive, Milwaukee; March 18, Construction Health Hazards; March 19-20, First Aid/CPR/AED Training; March 26, Handling OSHA Inspections. Call (414) 778-4100 or visit www.agc-gm.org.