Monday, January 18, 2010
Mequon metal fabricator honored for operational improvements
General MetalWorks Corp. (GenMet), a Mequon-based metal fabricator, recently received The Fabricator’s Industry Award 2010 from the Fabricators & Manufacturers Association International (FMA). The award is given to a company or individual within the metal forming and fabrication industry that has improved operations, grown their business and contributed to the local and national industry.
“This award is designed to recognize those individual leaders and companies that display innovation and determination to succeed,” said Gerald Shankel, president and CEO of FMA. “Manufacturing is the backbone of America, and we’re proud to honor GenMet as an industry success story.”
GenMet’s revenues fell to $10 million in 2009 from record earnings of $12.6 million in 2008. However, it was able to maintain similar profit margins to 2008 because of lean manufacturing implementation.
During 2009 and continuing into 2010, GenMet’s inventory is at all time lows. Its lead time for fabricated parts has been reduced from weeks to days. The company’s employee productivity has improved greatly over the last several years because of new technology, training and workforce flexibility.
“GenMet is a terrific example of the type of metal fabricating company that all of our subscribers should strive to emulate,” said Edward Youdell, group publisher of FMA Communications, Inc., the publishing affiliate of the FMA. “Their focus on employee productivity and their skilled, flexible work force have allowed GenMet to achieve excellent profit margins in what we all can agree was a difficult year. In short, they are a group of focused, smart, and committed people who did not let the economy of 2009 to be an excuse not to succeed. I congratulate them on their extraordinary performance this past year and look forward to seeing what they can accomplish in 2010.”
InPro creates new online product library for designers
InPro Corp., a Muskego-based manufacturer of door and wall protection, decorative surfaces, expansion joint systems, cubicle track and privacy curtains and signage for the health care, senior living, hospitality, education, government, marine and retail sectors, recently launched an online library of its Building Information Modeling (BIM) objects for architects and designers.
The company’s BIM library is compatible with all three major BIM software platforms: Autodesk Revit, Graphisoft ArchiCAD, and Bentley.
Architects and contractors are now able to download BIM objects for InPro’s interior wall and door protection products, privacy curtain and cubicle track systems, interior signage, expansion joint systems, and vanity and countertops. InPro’s BIM library will be accessed through the company’s website www.inprocorp.com/bimready, the Autodesk Seek search engine, the Sweets database and on CADdetails.com.
To meet the needs of architects and contractors, InPro will produce two levels of BIM object sophistication.
“In planning our BIM library, we consulted with several architects and contractors to determine how they use the objects,” said Larry Dronek, vice president of marketing for InPro. “They told us they don’t like BIM objects that are too complex or ‘loaded,’ which slows their system performance. But, they do want significant detail available when the more-advanced design stages call for it.”
BizTimes annual Economic Trends breakfast will be Friday
The annual Northern Trust Economic Trends Breakfast, presented by BizTimes Milwaukee, will be held Friday, Jan. 22 at the Italian Community Center, 631 E. Chicago St., Milwaukee. This year’s panel includes CEOs from two prominent Milwaukee-area manufacturing firms. They are:
- Bob Arzbaecher, CEO of Actuant Corp., which is expanding and moving its global headquarters from Butler to a facility in Menomonee Falls. Actuant is a $1.2 billion diversified manufacturing company with facilities in 30 countries. Arzbaecher will discuss the outlook for global competition and manufacturing.
- Aaron Jagdfeld, CEO of Generac Power Systems Inc., which is growing in Waukesha and recently filed to become a publicly traded company. Generac manufactures portable residential power generators. Jagdfeld will provide the outlooks for manufacturing, innovation and energy.
The event will also feature Michael Knetter, Ph.D., the dean of the University of Wisconsin School of Business in Madison and a former U.S. presidential economist, who will provide a macro-economic overview; and Andy Nunemaker, president of EMSystems LLC, a Milwaukee-based company that develops software systems for emergency rooms throughout the United States. EMSystems has acquired three other companies in the past 18 months and continues to grow.
For additional information or to register to attend, visit www.biztimes.com/trends.
Wisconsin Manufacturing News
Briggs maintains profits by lowering costs
Milwaukee-based Briggs & Stratton Corp. managed to post fiscal second quarter net income of $3.0 million, or 6 cents per share, even though its consolidated quarterly net sales dropped to $393 million from $477.5 million in the same quarter a year earlier.
The manufacturer said it sold fewer lawn mower engines and turbines, but improved its profit margins by lowering its costs for manufacturing, engineering, selling and administration.
The company said some of its customers, original equipment manufacturers, are delaying deliveries of engines to control their inventory investment ahead of an uncertain market environment for the spring of 2010.
The company’s engine sales for portable generators were down due to the lack of any significant weather events.
The demand for generators could rise with the relief effort to address the tragic earthquake in Haiti.
Briggs reduced its operational costs through layoffs, plant closures and salary cuts said Todd Teske, chief executive officer.
“Our lower manufacturing costs were more than able to counter the negatives,” Teske said.
Teske said the company expects to see continued improvement in the third and fourth quarters of fiscal 2010.
Briggs & Stratton continues to project that fiscal 2010 net income will be in the range of $40 million to $50 million, or 80 cents to $1.01 per diluted share.
Briggs & Stratton Corp. also announced it will reimburse salaried employees for 75 percent of wages lost during a temporary wage reduction from July 1 through Dec. 31, 2009.
Ruud Lighting wins court order to stop copyright infringement
Racine-based Ruud Lighting Inc. has announced settlement of a copyright infringement lawsuit against Elcast Lighting Inc. of Addison, Ill.
Ruud Lighting’s complaint, filed in the U.S. District Court for the Northern District of Illinois, alleged that Elcast Lighting illegally distributed promotional sales brochures containing large portions of BetaLED copyrighted works, even including copying a registered brand (The Edge) to customers and representatives.
The defendant agreed to pay undisclosed damages to Ruud Lighting and adopt compliant business practices going forward.
“Copyright and patent infringement is something we take very seriously and enforce not only to protect our own assets, but to protect buyers from receiving misleading messages by companies vying to get into the LED luminaire business,” said Ruud Lighting president Christopher Ruud. “This is an example of a company trying to jump on the bandwagon by stealing marketing materials and falsely attributing those claims to products that don’t even have the same features. It’s an unfortunate situation for the industry, as products with proven performance do exist and are being adopted around the world. It’s essential to safeguard consumers against false claims, so that informed buying decisions can be made. BetaLED is doing its part to protect buyers and show how to properly evaluate LED products.”
ZBB Energy Corp. lands stimulus tax credit to build new plant
ZBB Energy Corp. of Menomonee Falls will receive $14.7 million in federal tax credits through President Barack Obama’s stimulus plan. The funds will help pay for $49.55 million worth of equipment in a new facility to be built in southeastern Wisconsin.
The company’s application for an Advanced Energy Manufacturing tax credit under section 48C of the Internal Revenue Code has been authorized under the American Reinvestment and Recovery Act (ARRA).
When ZBB proceeds with this project, it will manufacture its ZESS and PECC energy storage products that store energy from renewable power sources at the facility.
ZBB designs and builds modular, integrated power storage systems at its Menomonee Falls plant for use in commercial, industrial, utility and off-grid applications, including supporting the transmission of intermittent sources of renewable energy.
ZBB has no immediate plans for a new facility, said Eric Apfelbach, newly appointed chief executive officer of the firm. The company does not know how large the facility would be or how many workers it will employ there, he said.
“We have not determined the actual size, but it will be built in phases, depending on the ramp rate of the company,” Apfelbach said. “We are trying to get a game plan (together) on when we would need it.”
The tax credits can be used over the next 20 years, Apfelbach said.
Although ZBB has looked at several properties in the Germantown area, the company is open to other areas in southeastern Wisconsin, Apfelbach said.
“The commercial real estate world has changed quite a bit,” he said. “We would re-look at all areas and strategies to get the best return on investment. It’s great to have a patient tax credit like this that can be applied to an expansion. We want to make the investment when it’s right for our company.”
Made in Milwaukee
Mukwonago-based Empire Level Mfg. Co. has played an integral role in the construction of most of the structures that are standing in metro Milwaukee – and many more around the nation.
Empire is the market leader in designing and manufacturing levels and layout tools used in the construction and contracting industries. It is also a market leader in high-end leveling tools for the home handyman.
The company’s focus on accuracy has built its reputation for quality in the marketplace, said Jenni Becker, president of Empire Level and the fifth generation of her family to work in the company. Her great-great-grandfather, Henry Zieman, started the company in 1919 in Milwaukee.
“Our entry price point (levels) are more accurate than our competitors’ high end models,” she said. “Accuracy is a big focus for us. Even our opening price point models are good enough to do a lot of contractor-grade work.”
Empire’s can be found in big box stores such as Home Depot and Menards, as well as specialty contractor supply stores.
The company has been able to further its position as a market leader by developing its True Blue line of vials, which are used in its high-end levels and deliver readings that are accurate up to 0.0005 of an inch. The True Blue level vials were introduced in 2005 in the company’s E70 line of levels, and are made using proprietary molding technology, Becker said.
“We took the equipment that is used to mold medical equipment and modified it to make a (level) vial,” she said. “Each one is made one at a time on our precision equipment.
To read more, click here.
Dispatches From China
It has taken only 30 years for China to rise from the bottom to the top of the world’s economic rankings. How has it been possible? Ask 20 people and the answers you will get include “no idea,” “cheap labor,” “globalization,” “China Inc.” (the theory that China acts like a corporate conglomerate, using its sovereign wealth to dominate areas of the world trade economy) or the “Beijing Consensus” (the idea that China’s economic practices are part of a long-march political strategy to counter the “Washington Consensus” by offering a competing ideological agenda).
The irony is that those who express their ignorance are often a lot closer to the truth than those who are eager to give you their theories. One thing you can count on is that none of them will mention the Kunshan Way or the pivotal role that cities like Kunshan have played in China’s economic redux.
To understand economic development in China, you need to rethink some of the norms and assumptions which govern the relationship between government and business.
To read more, click here.
Manufacturing People in the News
Paul D. Ericksen has been named manager of the Manufacturing Extension Partnership (MEP) Supply Chain Advantage program.
Ericksen will direct a national initiative to enhance the performance of small and midsize suppliers to large military contractors. He will work closely with suppliers, military contractors and officials with the Defense Logistics Agency of the U.S. Department of Defense to develop and deploy uniform strategies to reduce costs and improve efficiency.
“I’m excited about the opportunity to lead this effort,” said Ericksen. “The MEP system is an excellent vehicle to advance the development of secure, flexible and responsive supply chains that support U.S. defense needs.”
Ericksen, a 30-year veteran of Deere & Company, played a key role in creating and improving Deere’s supplier development initiatives. A well-known advocate, writer and speaker, he has won state and national recognition for his efforts to establish a consortium to improve the performance of suppliers to large original equipment manufacturers (OEMs). Ericksen is a former member of the state of Wisconsin’s Small Business Development Board and also has served on the Industrial Advisory Board for the University of Wisconsin-Madison’s Center for Quick Response Manufacturing.
MEP Supply Chain Advantage initially will target 50 suppliers, with services provided by the national network of MEP centers. The program builds on the success of WMEP’s Accelerate program, which has generated performance improvements for more than 350 suppliers in Wisconsin and across the nation. Accelerate, launched in 2005, has expanded to 32 MEP centers in 20 states.
“Having someone of Paul’s caliber on our staff is a tremendous asset as we develop services to help manufacturers manage increasingly complex networks of partners and suppliers,” said Mike Klonsinski, WMEP’s executive director. “He will be available on a limited basis to consult directly with Wisconsin manufacturers on supply chain strategies.”
More Manufacturing News
S.C. Johnson launches wind energy program
S.C. Johnson has launched a wind energy pilot program at its corporate headquarters campus in Racine with the installation of three new wind turbines. The program is expected to help the company further reduce its green house gas usage and raise awareness that renewable energy is not just for factories.
"The use of renewable energy is essential to making a difference in the world and conducting business in a responsible way," said chairman and chief executive officer Fisk Johnson. "We hope our use of wind energy will inspire businesses in Racine and other cities to find new, sustainable solutions for reducing energy use."
The three wind turbines are located on the roof of one of the seven buildings on the campus.
"While we are not sure how much alternative energy these turbines will produce, we expect to have clear, consistent results within a year," said Johnson. "This pilot program will help provide useful information on ways we can develop more sustainable solutions for our campus."
The wind turbines are expected to be fully functioning by the end of the month. Once fully operational, the turbines will be connected to the company's electrical distribution system. The output they generate will power a small portion of the company's campus.
The company is hopeful that the outcome of the pilot program will demonstrate the number of computers, machines and other basic office resources that can be powered by renewable energy. Depending on the impact of the turbine's energy output, it is possible the company will extend the project to additional local S.C. Johnson facilities.
"We are thrilled to be using more renewable energy not just in our factories but in our office buildings. It is another way we are doing what's right for our communities and the environment around us," said Johnson.
American Renewable Power of Wisconsin was selected to install the Swift turbines designed by Cascade Engineering, Inc. in Michigan. Gateway Technical College’s Center for Advanced Technology and Innovation building is the only other facility in Racine that uses wind turbines to reduce energy use.
Regional transportation summit to focus on Zoo Interchange
BizTimes Milwaukee will co-present a seminar to assess “The Future of SE Wisconsin Transportation and Its Busiest Interchange” on Thursday, Feb. 4.
The event will take place from 7:30 to 9 a.m. at the Medical College of Wisconsin-Alumni Center, 8701 Watertown Plank Road, Wauwatosa.
The Zoo Interchange provides connections between Interstate 94, Interstate 894 and U.S. Highway 45 in western Milwaukee County near the Milwaukee County Zoo. Built in 1963, it is the busiest interchange in Wisconsin, with more than 350,000 vehicles using it daily.
The Wisconsin Department of Transportation (WisDOT) is scrambling to replace three interchange bridges and studying other possible changes to meet future needs.
The panelists who will discuss the future of the region’s transportation system and the Zoo Interchange will include:
- Kenneth Yunker, executive director, Southeastern Wisconsin Regional Planning Commission, and temporary staff to the Southeastern Regional Transit Authority.
- Craig Thompson, executive director, Transportation Development Assoc. of Wisconsin.
- Gretchen Schuldt, co-chair of Citizens Allied for Sane Highways, a coalition opposing freeway expansion in Milwaukee.
- Dan Devine, West Allis mayor and former Milwaukee Co. board member.
- A WisDOT representative (to be determined).
The event will be presented by WisPolitics.com and WisBusiness.com, media partners of BizTimes Milwaukee, in partnership with the Metropolitan Milwaukee Association of Commerce (MMAC) and the University of Wisconsin-Milwaukee. The event will be sponsored by the Wisconsin Transportation Development Association. For more information, visit http://www.wispolitics.com/index.iml?Article=181553.
Manitowoc Co. looks to amend senior debt
The Manitowoc Company, Inc. plans to refinance about $400 million in term loans under its senior secured credit facility to improve the balance and flexibility of its capital structure.
The company's debt-reduction efforts eliminated more than $560 million in senior secured debt through September 30, 2009. It is also disclosing that it has surpassed its targeted full-year 2009 debt reduction target of $450 million by approximately $20 million, bringing total debt reduction since the acquisition of Enodis plc to over $750 million.
Calendar
The UW-Madison Center for Quick Response Manufacturing will hold the seminar “How to Implement Quick Response Manufacturing” on Tuesday and Wednesday, Feb. 9-10 from 8 a.m. to 5 p.m. at the Double Tree Hotel, 525 W. Johnson St., Madison. The event will highlight the improvements that quick response manufacturing can have in sales, order entry, design engineering, manufacturing and supply management. Cost is $495 for QRM Center members, $895 for non-members. For information or to register, visit http://www.engr.wisc.edu/centers/cqrm/Events/How2QRMFeb10.htm
The Milwaukee Society of Plastics Engineers will present "What Designers and Engineers Need to Know When Considering Tool Steel Selection & Coating and Finishes for Ultimate Productivity" on Tuesday, Jan. 19 from 6 to 9:30 p.m. at the Sheraton Brookfield Hotel, 375 S. Moorland Rd., Brookfield. Cost is $30 for members, $35 for non-members. For information or to register, 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
- Society of Plastics Engineers - Greater Wisconsin
- 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.



