Monday, August 17, 2009
Oak Creek grinding shop completes energy efficiency upgrades
Columbia Grinding Inc., an Oak Creek-based industrial grinding shop, recently completed several energy-saving improvements that are expected to save the company more than $33,000 per year.
The improvements include a new air filtration system that was installed in July, which has already dramatically reduced Columbia Grinding's heating and air conditioning loads. The system uses automated management of the exhaust system in the company's production area.
A portion of the air filtration system was paid for through $13,500 in cash incentives from Focus on Energy.
“Focus on Energy has helped us save a lot of money while achieving higher air quality inside the plant,” said Richard Lussier, president of Columbia Grinding. “With the new controls and filtration equipment, we're keeping warm air inside the building in the winter to reduce our gas consumption. In the summer, the controls automatically make sure that hot plant air is going outside to lower our cooling costs.”
The company has also installed a variable speed drive on its coolant pumping system, which has reduced operating costs and boosted reliability.
Both energy-saving improvements will save more than 230,000 kilowatt-hours of electricity and 14,000 therms of natural gas, which Focus on Energy says is enough to power 40 homes for one year.
“Columbia Grinding is a great example of an independently owned business that is saving significant amounts of energy,” said Ken Williams, business programs director with Focus on Energy. “By incorporating energy efficiency into its operation, Columbia Grinding's bottom line will benefit, along with the environment and the community.”
For more information on Focus on Energy, visit www.focusonenergy.com.
Wisconsin-based manufacturer launches Great Lakes Wind Consortium
Energy Composites Corp., a Wisconsin Rapids-based manufacturer of composite materials for the wind power, energy and alternative energy markets, recently created the Great Lakes Wind Consortium and is now inviting government officials, other industry and academia to join its efforts to increase the use of wind power in the Great Lakes region.
ECC currently operates a 73,000 square foot manufacturing facility in Wisconsin Rapids, where it designs and manufactures complex structures used in markets that include wind power generation. The company previously announced plans to construct a new 350,000 square foot facility that could create more than 400 new jobs, where it would build blades used for wind power turbines.
“Over the last decade, wind farm developers have focused on the on-shore wind corridor – from Texas to the Dakotas – as fertile ground for harnessing wind energy, but they have found that our need to upgrade the nation's electrical grid, including the development of new technologies to reduce the substantial loss of power that comes with transmission over long distances, to be a significant obstacle to success,” said Sam Fairchild, CEO of ECC.
“There is an immediate opportunity to meet the Federal mandate of 20 percent renewable (energy) simply by building wind farms in the Great Lakes. The advantages are enormous. The wind profile in the Great Lakes is optimal for wind farms, allowing for the use of larger, offshore turbines, significantly longer, more efficient blades, and cost-savings, water-borne logistics.”
The company has invited the governors of Wisconsin, Minnesota, Illinois, Indiana, Ohio, Pennsylvania and New York to join the consortium, as well as municipal leaders of cities and counties throughout the region. It is also preparing to reach out to other manufacturers and suppliers in the wind energy supply chain in the Great Lakes states.
ECC hopes to hold a planning session for the coalition later this year.
“I predict that the Great Lakes Strategy will bring welcome (economic) relief to the governors of the seven affected states,” said Dan Wergin, a director with ECC. “This approach will deliver jobs and substantial growth in economic activity on a sustainable basis. It will also accelerate our national goals of energy independence and clean air.”
Wisconsin Manufacturing News
Study says 'cap and trade' would hurt Wisconsin
A new study by the National Association of Manufacturers (NAM) predicts widespread economic hardship for Wisconsin consumers and businesses if Congress adopts the "cap and trade" bill being considered by the U.S. Senate.
The bill is otherwise known as H.R. 2454 or the Waxman-Markey global warming bill.
The U.S. House of Representatives narrowly approved the bill in June.
"Wisconsin citizens can expect higher electric bills, higher heating bills and higher gasoline prices if Congress passes the Waxman-Markey bill," said James Haney, president of the Wisconsin Manufacturers & Commerce (WMC). "At a time when we are struggling to keep high-paying manufacturing jobs in our state, this bill would take us in the wrong direction with tens of thousands of additional lost jobs."
Wisconsin consumers and employers would be hit disproportionately hard by global warming regulations because of the state's significant investment in coal-fired electricity, and the state's status as the single-most manufacturing intensive economy in the country, according to the WMC.
The study found that key Wisconsin industrial sectors, including papermaking, machinery manufacturing and other energy intensive industries, would lose thousands of manufacturing jobs as a result of higher energy costs stemming from Waxman-Markey.
"Wisconsin businesses are faced with a highly competitive international marketplace where it is becoming increasingly difficult to compete on cost," said Thomas Howatt, president and chief executive officer of Wausau Paper of Wausau. "Driving up the cost of energy in Wisconsin with regulations like cap and trade will put us at a severe competitive disadvantage with our foreign competition."
Specifically, the NAM study predicted between 41,600 and 56,700 lost jobs in Wisconsin by 2030, depending upon the future price of carbon permits. Those figures are expected to worsen as the H.R. 2454 energy rationing plan reaches full implementation by the year 2050. Since 1999, Wisconsin has lost 160,000 manufacturing jobs, and the state's unemployment rate is at 9 percent, the WMC said.
In addition to the lost manufacturing jobs, the NAM study concludes that Wisconsin consumers would face substantial energy cost increases as a result of the Waxman-Markey legislation, taking a significant toll on the state's overall economy.
Briggs caps fiscal year with strong quarter
Briggs & Stratton Corp. announced fiscal fourth quarter consolidated net income of $5.3 million, or 11 cents per share, which was up from $0.5 million, or 1 cent per share, in the same period a year ago.
The Milwaukee-based small engine manufacturer reported quarterly consolidated net sales of $482.8 million, down from $581.1 million a year earlier. The consolidated net sales decrease of $98.3 million, or 17 percent, was due primarily to decreased shipment volumes in both the Engines and Power Products Segments.
Included in net income for the fiscal 2009 fourth quarter was a $5.8 million pretax ($3.5 million after tax or $0.07 per diluted share) expense associated with the closing of the company's manufacturing facility in Jefferson, Wis. Included in the fourth quarter of fiscal 2008 was a $13.3 million pretax ($8.1 million after tax or $0.16 per diluted share) gain associated with the reduction of certain post closing employee benefit costs related to the closing of a plant in Port Washington, Wis.
After considering the impact of the fourth quarter items related to facility closures in both periods, fourth quarter consolidated net income was higher by $16.4 million as compared with the prior year. This increase was the result of lower spending, improved productivity, lower commodity costs and a lower effective tax rate, partially offset by the impact of decreased sales and production volumes.
For fiscal 2009, the company had consolidated net sales of $2.09 billion and consolidated net income of $32.0 million or 64 cents per share. Fiscal 2008 consolidated net sales were $2.15 billion and consolidated net income was $22.6 million or 46 cents per share. The $59.2 million decrease in consolidated net sales was due to the net effect of reduced shipment volumes, primarily related to lawn and garden equipment in the Power Products Segment, unfavorable currency exchange rates primarily related to the Euro and a mix of shipments that reflected lower priced units.
Oshkosh Corp raises $358 million with stock offering
Oshkosh Corp. has completed its previously announced public offering of 15 million shares of common stock at $25 per share to the public.
The company received approximately $358 million in proceeds from the offering, including proceeds as a result of the exercise of the underwriters' over-allotment option and after deducting underwriting discounts and commissions and estimated expenses of the offering.
The company used the entire net proceeds of the offering to repay a portion of the term loan borrowings under its credit agreement.
Oshkosh Corp. is a designer, manufacturer and marketer of a range of specialty access equipment, commercial, fire and emergency and military vehicles and vehicle bodies.
Industrial slowdown clips Magnetek
Fourth quarter fiscal income fell at Magnetek Inc. to $285,000, or 1 cent per share, from $6.4 million, or 21 cents per share, in the same period a year ago.
The Menomonee Falls-based manufacturer's quarterly net sales dipped to $20.0 million from $27.2 million a year earlier.
For the full fiscal year, Magnetek's net income fell to $3.3 million from $10.0 million.
The decrease in sales from the prior year quarter reflects softness in the company's material handling product line, as well as lower sales of renewable energy products.
"The decline in sales we experienced in the fourth quarter was not unexpected and is mainly the result of continuing difficult market conditions. Industrial activity in the U.S. remains weak and credit markets remain tight, resulting in sluggish capital spending levels. While quotation levels have been fairly strong, many customers are hesitant to commit capital to new projects given the current economic climate," said Peter McCormick, Magnetek's president and chief executive officer.
In total, the company reduced its workforce by approximately 45 positions, or 14 percent, during the second half of fiscal 2009 and continues to pursue actions to reduce its fixed cost structure.
"We did see several areas of strength during fiscal 2009, primarily with some of our more recent product introductions. Year over year sales growth of mining products, radio products and our Quattro elevator drive helped to offset sales declines in some of our more mature products. As a result, our year-over-year sales decreased by only 2 percent, which we feel was a fairly strong performance given economic conditions," McCormick said. "There is no question that during the fourth quarter our business began to be significantly impacted by the U.S. industrial slowdown, mainly in served markets for material handling applications. We currently expect a challenging environment for the remainder of calendar year 2009. As a result, it's likely that our sales for the first quarter of fiscal 2010 will decrease sequentially from the fourth quarter of fiscal 2009. Given our current backlog and expected future sales levels, we felt it was prudent to take further actions to reduce our cost structure."
Made in Milwaukee
Most of the people who use the products made by UPI Manufacturing, an Eagle-based company, are members of the U.S. armed forces fighting halfway around the world.
In the six years that it has been in business, UPI has made thousands of bulletproof side and rear windows that have been installed in Humvees and other armored vehicles used by the U.S. military in the campaigns underway in Iraq and Afghanistan. The windows use a three- to four-inch thick piece of reinforced bulletproof glass, mounted inside an aluminum frame that has been milled from a solid block of metal.
Some of the newer models the company is producing are capable of withstanding a shot from a .50 caliber round.
“The glass will spider-web from the impact, but it will stop the shot,” said Jeff Dretzka Jr., sales and marketing manager with the company. He also handles government contracting relationships.
To read more, click here.
Dispatches from China
As the political, economic and social tectonic plates of the United States and China grind and groan, there are opportunities for the quick and nimble.
China has a complicated system of business formation and licensing that you ignore at your own risk. There are many stories about foreign-owned businesses that were summarily closed down due to failure to follow the rules. You do not want to be one of them.
So, when setting up your Wholly Owned Foreign Entity (WOFE) or Joint Venture (JV) in China, you need to be aware of the tax, human resources, IP, capital issues and laws associated with both China and the United States. Depending on what you plan to do in China, it might not even be possible or advisable to set up directly on the Mainland. So what are your options?
To read more, click here.
Manufacturing People in the News
Oconto yacht company names new president
KCS International Inc., parent company of Oconto-based Cruisers Yachts and Rampage Sport Fishing Yachts, has named Mark Pedersen as president and chief financial officer of the company.
Pedersen replaces Jim Viestenz, who stepped down to pursue other interests. Pedersen has been with KCS International for the past 16 years and has more than 20 years experience in the marine industry.
"I am up for the challenges, as I have worked hand-in-hand with the entire KCS management team throughout the years," Pedersen said. "I was fortunate to be here in the early 1990s when we were rebuilding the company. I learned some valuable lessons that we will use in order to continue our success as we move the company forward. My knowledge and understanding of the marine industry will also play an important role in helping me maintain the companies' positive position with both Cruisers Yachts and Rampage Sport Fishing Yachts during these tough economic times. We've got a great product and the right team in place to make it happen."
"Mark has worked with me for 16 years and I have the utmost confidence in him to continue the positive trend we have built at KCS over the years," said K.C. Stock, chief executive officer and owner of KCS International Inc. "Mark has been a key player in many acquisitions and management positions with my numerous ventures. We intend to be one of the major contributors in the marine industry for years to come. I trust Mark and our team to make it happen."
Swanson will be new president of Airgas North Central
Airgas Inc. announced that Pamela Swanson has been named president of Chicago-based Airgas North Central, which serves customers in Wisconsin, northwestern Indiana and northwestern Michigan, northern Illinois, Minnesota and Iowa, as well as the eastern half of North Dakota, South Dakota and Nebraska.
Airgas, through its subsidiaries, is the largest U.S. distributor of industrial, medical and specialty gases, and hardgoods, such as welding equipment and supplies.
Swanson will report to B. Shaun Powers, Airgas Eastern Division president. Swanson replaces Ronald Stark, who has joined the Airgas corporate management team as senior vice president - sales and marketing.
Swanson joined Airgas in 2004 as vice president for Airgas North Central's northeast division. Prior to joining Airgas, she was vice president and chief operating officer for Interstate Welding Sales Corp., a Wisconsin-based distributor of welding equipment and supplies; industrial, specialty and medical gases; and fire protection systems. Airgas acquired Interstate Welding in 2004.
"Pam brings considerable industry and management experience to her new role as president of Airgas North Central," said Powers, who oversees five Airgas regional companies. "Revenues in the region's northeast division increased more than threefold during her tenure there, and her experience as chief operating officer at Interstate Welding will serve her well as she takes the reins of this strategic Airgas regional company."
Kotek is new CEO of Menasha Corp.
James Kotek was named as president and chief executive officer of Menasha Corp. by the company's board of directors.
Kotek has served as president of Orbis Corp., Menasha's second-largest operating division, since 2004.
He succeeds Arthur Huge, who retired this spring.
"Jim Kotek's record of business achievements is an excellent match with the challenges and goals of Menasha Corp." said Donald Shepard, chairman of Menasha's board. "He is a talented leader whose commitment to superior operational performance and creating value for customers is unequaled. Under Jim's leadership, ORBIS Corporation has solidified its position as the leading reusable plastic packaging product and service provider in North America."
Kotek was also appointed to Menasha's board of directors.
"I am honored to become Menasha Corp.'s president and CEO during a time in which the company has many opportunities to build on our hallmarks of operational excellence, innovation and exceptional customer care and service," Kotek said. "Despite the difficult economic times we have faced recently, Menasha Corp.'s competitive position is stronger than it has been for many years. This is an exciting time in the corporation's history and I look forward to implementing strategies that will provide a platform for continued growth and value for all of our stakeholders."
More Manufacturing News
Fiberesin receives two large orders
Fiberesin Industries, an Oconomowoc-based manufacturer of engineered materials used in the medical, office and education furniture markets, recently received two large orders.
The company has been commissioned to build more than 1,200 polyurethane edged tables, which will be installed in a dormitory project that a university in southern California is building, said Michael Nicholas, president and CEO of the company.
“The university in California is probably equal to 10 percent of what we make annually,” he said. “And they have talked about a following order similar in size.”
Fiberesin has also received an order for medical lab cabinets that will be installed in a medical facility in Grand Rapids, Michigan.
The company has less than 100 employees working in three facilities; two of them are in Oconomowoc while the other is in Ashippun in southern Dodge County. While the two orders are significant, they will not result in any new jobs for the company.
“They are helping us keep the wolf away from the door in a down economy,” Nicholas said.
Milsco Manufacturing to close production facility in Brown Deer
Brown Deer-based Milsco Manufacturing Co. informed the state Department of Workforce Development that it will close its manufacturing facility at 9009 N. 51st St., Brown Deer, on Oct. 2, putting 12 employees out of work.
The company's corporate office and related support services at the same location will remain open.
Of the 12 employees that will lose their jobs, one is a supervisor and the other 11 are hourly employees who are members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO.
The company's other plants are located in: Redgranite, Wis., Michigan, Georgia, England and Mexico.
Klement's re-launches pre-cooked sausage line for health-conscious customers
Milwaukee-based Klement Sausage Company recently re-launched its line of fully cooked sausages. The line of products now contains no MSG, is gluten free and most do not have nitrates. The updated line began rolling into store this month and includes bratwurst, smoked bratwurst, Italian, cheddar brat, jalapeno hot link, Polish sausage and authentic chorizo.
“When the customer speaks, we at Klement's listen,” said Dr. Jim Klement, co-president of the company. “We want to eliminate the unnecessary ingredients for our customers and still provide them with a flavorful line of sausages.”
ZBB Energy launches stock offering
Milwaukee-based ZBB Energy Corp. announced last week a public offering of up to 2.1 million shares at a price per unit of $1.20, with each unit consisting of one share of its common stock and a warrant to purchase 0.2 of a share of its common stock at an exercise price of $1.33 per share.
Assuming the sale of the entire amount of units, the proceeds to ZBB after deducting placement agent fees and estimated offering expenses are expected to be approximately $2.3 million. The offering is expected to close on Aug. 18.
CapStone Investments is acting as placement agent for the offering.
ZBB intends to use the net proceeds of this offering for general corporate purposes, which may include working capital and/or capital expenditures. ZBB may also use such proceeds to fund acquisitions of businesses, technologies or product lines that complement its current business, although ZBB has no commitments or agreements for any specific acquisitions.
ZBB's stock is traded on the AMEX Exchange.
Calendar
Waukesha County Technical College will present "Principles of Lean Manufacturing" on Thursday, Sept. 17 from 8 to 11:55 a.m. and 12:30 to 4:25 p.m. at its campus, 800 Main St., Pewaukee, Room C053. The class will provide a mix of lecture and hands-on demonstrations focusing on standardized work, workplace simulation, visual controls, set-up reduction, batch size reduction, point of use storage, quality at the source, workforce practices and pull systems. Cost is $300. For information, click here.
Manufacturing Resources
Manufacturer Associations
- Association of Equipment Manufacturers
- APICS – the Association for Operations Management
- National Fluid Power Association
- Polyeurethane Manufacturers Association
- Society of Manufacturing Engineers - Chapter 4
- 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
- The Paranet Group
- Wisconsin Manufacturing Extension Partnership
- MSOE's Business Excellence Consortium
- Center for Quick Response Manufacturing (QRM) at the University of Wisconsin
Other resources
- American Society for Quality
- Wisconsin Manufacturers and Commerce
- Center for Advanced Technology and Innovation
- Wisconsin Department of Commerce
- Milwaukee Export Assistance Center – U.S. Commercial Service
- MSOE's Applied Technology Center
- MSOE's Rapid Prototyping Center
- MATC's Energy Conservation and Advanced Manufacturing (ECAM) facility
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.



