Monday, June 30, 2008
Harken's new headquarters will begin lean transformation
Pewaukee-based Harken Yacht Equipment Inc. will break ground in August on a new manufacturing facility and headquarters on a 28-acre parcel at N15 W24887 Bluemound Road in Pewaukee. The new facility is expected to open by Jan. 1, 2010. Harken is the largest manufacturer of sailboat hardware in the world. Its hardware was used on 11 of the 12 boats that raced in the most recent America's Cup. Its headquarters and main manufacturing facility are in Pewaukee, but the company also operates an 80,000-square-foot facility in Italy with about 80 employees.

Harken has about 130 employees in Pewaukee and more than 300 employees around the world. The company's new Pewaukee headquarters and manufacturing center will have an 80,000-square-foot first floor and about 20,000 square feet of office space above. While designs have not yet been completed, the company plans for extensive use of natural lighting and is considering geothermal heating and cooling and several other "green" building techniques, said Peter Harken, co-owner and founder of the company.
The new building also is being designed with work flow and efficiency in mind, Harken said. Harken's engineers will be located near its machine shop and research and development areas, he said, allowing for more easy collaboration and communication. "We're getting rid of the idea of office versus floor people," he said. "There will be a lot of interaction between people." The entrance to the new facility will also have large glass windows, where visitors will be able to watch injection molding and machining operations, Harken said. "We want to tell people what we do (when they walk in the building)," he said.
Most of Harken's competitors have moved manufacturing to China or other Asian countries, said Bill Goggins, the company's marketing manager. Instead of moving its operations overseas, the company will begin implementing elements of lean manufacturing and constant improvement with its new facility, he said. "We've had significant growth year over year for the past 10 years - growth in both product offering and market share," Goggins said. "That's exactly why we're in dire need of a new building. It will allow us to do everything better. We will be able to strategically place people better and think about our operations."

Harken's new facility will make more use of robotics, automated machinery and carousel stocking and storage systems, Goggins said. Those systems will further improve Harken's quality control, increase its output per employee and help its employees develop further. "It's helping create a strategic distinction between our competitors and us," Goggins said. "We're trying to raise the bar and move to a new level of innovation and quality. It takes a level of investment and a commitment to the community, to our people and a whole new way of managing." For more information, visit www.Harken.com.
Kenosha trucking company files for bankruptcy
Kenosha-based JHT Holdings Inc. has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, District of Delaware. JHT, through its operating subsidiaries, including Active Truck Transport LLC, Automotive Carrier Services Co. LLC and Unimark LLC, is a leading provider of transportation services for manufacturers of medium- to heavy-heavy duty trucks throughout the United States, and the company also transports imports from Canada and Mexico. The company announced it has reached agreement with its lenders to restructure its balance sheet through a voluntary, pre-negotiated Chapter 11 reorganization.
JHT already has reached agreement with a significant majority of its lenders on the reorganization plan. Under the proposed plan, JHT's current lenders will convert a portion of their debt to equity and become the owners of the reorganized JHT. Under the proposed plan, JHT's outstanding bank debt will be reduced by more than 40 percent, and annual cash interest expense will decrease by more than 50 percent. "Yesterday's action is simply a strategic financial decision on the part of JHT Holdings that will not impact the day-to-day operations of our subsidiary companies," said James Welch, chief executive officer of JHT. "This approach is in the best interest of employees, customers and suppliers because it will enable us to dedicate more of our capital to business operations. Once the financial restructuring efforts are complete, we will be in an even better position to serve customers and capitalize on new opportunities within the industry."
JHT said it is taking the action to strengthen its balance sheet so it is better-positioned to weather the current weak truck manufacturing market and manage the cycles inherent in the transportation industry. "JHT and its lenders have great confidence in the future success of the Company and the fundamental strength of our business model," Welch said. "Our lenders have demonstrated this confidence through strong, enthusiastic support of the reorganization plan and their commitment to provide both short- and long-term financing … We want to emphasize our intention to continue normal day-to-day operations throughout the U.S. and Canada."
Carlson to expand in Cedarburg
Carlson Tool & Manufacturing Corp. plans to expand its corporate headquarters in Cedarburg later this year as the company celebrates its 50th year in business. The company will conduct a groundbreaking ceremony today at 10 a.m. to launch a 10,000-square-foot addition to its east plant to accommodate the firm's growth. The headquarters are located at W57 N14386 Doerr Way on the border of Cedarburg and Mequon, with its second plant located across the parking lot in Mequon. With the addition, Carlson plans to hire about 15 additional employees.
Started on Aug. 1, 1958, by Carl Edquist, the company has grown to more than $30 million in sales with 157 employees located in the two plants in Wisconsin and two satellite plants in California and Alabama. "We are so pleased to celebrate our growth as well as the many long-term relationships we have had with employees and customers alike," said Jerry Edquist, president and chief executive officer of the company and second-generation owner. "It gives us great satisfaction to be able to survive and thrive in the manufacturing sector while providing top quality service to our customers for half a century." Edquist said the addition will be used for additional manufacturing space in the company's east plant. Carlson provides deep-hole boring, quick turnaround and precision manufacturing that enables customers to have short lead times.
New Jersey manufacturer to shift some work to Milwaukee
Armonk, N.Y.-based Visant Corp. will close a plant in Pennsauken, N.J., and shift manufacturing operations from there to plants in Milwaukee, Hagerstown, Md., and Rockaway, N.J. About 200 people work at the Pennsauken, N.J. plant. The company is still trying to determine what changes will be made at the Milwaukee plant, which is located at 8111 N. 87th St. and does business as Lehigh Milwaukee, said Visant vice president of finance Paul Carousso. However, he said the plant, which makes overhead transparencies for schools and book covers, will see some "incremental increase" in production, which should result in some increase in employment and the addition of some new equipment. Currently, about 100 people work at the Milwaukee plant. More employees will be added at the larger plant in Hagerstown, he said. No employees will be added to the Rockaway, N.J. plant.
Soft economy weighs on Oshkosh Corp.
Oshkosh Corp. announced that the economic slowdown and the rising costs for raw materials are taking a toll on the company, and it now expects a third-quarter loss of $1.22 to $1.32 per share. The manufacturer of specialty vehicles and vehicle bodies had previously projected third-quarter earnings per share of $1.40 to $1.50. The expected loss relates to a non-cash charge for the impairment of goodwill to be recorded in connection with the company's European refuse collection vehicle manufacturer, the Geesink Norba Group.
The impact of the impairment charge on third fiscal quarter earnings is estimated to be approximately $175 million, or $2.32 per share. "Lower than expected sales in both North America and Europe driven by softness in non-residential construction and general economic weakness, and rising raw material and fuel costs, have caused us to reduce our outlook for the third quarter and full fiscal year 2008," said Robert Bohn, Oshkosh chairman and chief executive officer. "During the quarter, we also lowered our outlook for Geesink due to a slower and more difficult than expected return to profitability, coupled with expectations of a weaker European economy and higher raw materials costs. This revised outlook has caused us to believe that the value of Geesink no longer supports the goodwill recorded for this business, resulting in the impairment charge we are announcing today."
Rockwell warns of reduced earnings
Rockwell Automation Inc. recently advised that "less favorable market conditions" are causing the Milwaukee company to reduce its previous earnings guidance. The company said it expects to report third quarter diluted earnings per share of 93 cents to $1.00, and that that "no longer believes" that full-year EPS will fall within the previous annual guidance range of $4.25 to $4.45.
The company's revenue for the month of April was consistent with original expectations. However, for the past several weeks, Rockwell has experienced slower-than-expected growth in the United States and Europe, primarily in its product businesses. The company said it is evaluating the market outlook for the balance of the year along with appropriate cost control actions and will comment further during the third quarter earnings call.
Keith Nosbusch, chairman and chief executive officer, said, "I continue to have confidence in the long-term growth prospects for this business. It appears that market growth is slowing in two key regions, and we will deal with that reality. We remain committed to delivering appropriate profitability while preserving our investments in future growth opportunities and maintaining our technology leadership."
Made in Milwaukee
Dispatches from China
In April this year, China began strictly enforcing its visa rules. Up until then, the visa rules had been fairly relaxed, many foreigners had taken up residence and even started businesses by extending their tourist visas. To read more, click here.
Manufacturing Odds & Ends
Port Washington manufacturer creates new products for high-rise constrcuction
Construction Forms (Con Forms), a Port Washington manufacturer of concrete pumping products, recently introduced two new products for high-rise pumping. The company's pressure coupling and high-rise hold down bracket are designed to handle the increased pressures and safety concerns of pumping concrete into high rise situations. Con Forms is the first concrete pumping system manufacturer to be certified by the Concrete Pump Manufacturer’s Association for products meeting industry standard safety regulations. For more information, visit www.conforms.com.
Oak Creek metal fabricator recognized for green efforts
Steelwind Industries Inc., an Oak Creek metal fabricator, has received the Orion Energy Systems Environmental Stewardship Award. Orion presents the award to companies that significantly reduce harmful greenhouse gases through the use of Orion’s patented lighting products and systems. The company recently replaced 78 high-intensity discharge lights with Orion Energy Systems' high-efficiency lighting platform. The project is expected to annually decrease lighting power usage by 53 percent - from 226,325 kilowatt-hours to 107,078 kilowatt-hours. The decrease in electricity usage results in annual light-related energy costs of about $10,778. In addition to the annual cost savings, the lighting project will keep 116 tons of carbon dioxide from entering the atmosphere annually, according to the Environmental Protection Agency. Over the 23-year-life of the fixtures, Steelwind Industries also will prevent 12 tons of sulfur dioxide and six tons of nitrous oxide from entering the atmosphere.
Manufacturing People in the News
Pflow Industries, Inc. has hired Jeff Johnston as its new national sales manager with responsibility for sales of Pflow’s core vertical material lift systems to all existing and emerging industrial and commercial industries. Johnston previously served as the vice president of sales, grocery industry specialist for Rite-Hite Corporation, a Milwaukee manufacturer of loading dock safety systems and industrial door solutions. Prior to Rite-Hite, Johnston served from 1995 to 2003 as the Pflow regional sales manager for the southeast region. "We are extremely fortunate to have Jeff back on board," said Pflow President Ted Ruehl. "He knows our product line as well as anybody, and he knows very well the major market segments that we hope to further penetrate."
La Crosse Litho Supply recently hired Mike Flanders as its inside technology specialist. Flanders comes to La Crosse Litho Supply from Tribune Media Services. Flanders will be based at the company’s Sussex headquarters. His key roles will include the management and coordination of on-site and remote services for La Crosse Litho Supply’s Technology Solutions Group. Flanders will also oversee the company’s on-site state-of-the-art Technology Solutions Center and manage the company’s new ColorLink™ Control Capsule program.
Calendar
EMTEQ's 4th annual golf outing to benefit the Child Abuse Prevention Fund, July 31, Silver Spring Country Club, Menomonee Falls; for information visit www.emteq.com/golf, or call (262) 679-6412.
The Milwaukee-based National Fluid Power Association (NFPA) will hold its annual Economic Outlook Conference at the Westin Chicago North Shore in Wheeling, IL on Aug. 19-20. The event will include presentations on micro and macroeconomic topics targeted specifically to the fluid power supply chain. Special member rates are being extended to NFPA and AEM members. Registration is now open at www.nfpa.com or call NFPA directly at 414-778-3344.
Manufacturing Resources
Manufacturer Associations
- Association of Equipment Manufacturers
- National Fluid Power Association
- Polyeurethane Manufacturers Association
- Wisconsin Truss Manufacturers Association
- Wisconsin Biotechnology and Medical Device Association
- Wisconsin Sign Association
- Wisconsin Electrical Machines and Power Electronics Consortium
- Water Quality Association of Wisconsin
Manufacturing Advocacy, Leadership Training and Continuing Education
Other resources
This exclusive news bulletin is compiled by Small Business Times reporter Eric Decker. Send manufacturing news and tips
to eric.decker@biztimes.com



