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Manufacturing Weekly

Monday, May 24, 2010

Charter Automotive to close fluid indicator manufacturing facility this summer

Charter Automotive will close its 100,000 square foot facility at 9201 W. Heather Ave. on Milwaukee’s northwest side in late July. At that time, 18 of the company’s employees will lose their jobs, another 11 workers will complete final inventory shipments and prepare the building for sale.

Charter Automotive’s headquarters and main manufacturing facility at 7850 N. 81st St. will remain open, a company spokesperson said. Most of the company’s approximate 100 employees work at its headquarters – the rest are employed at its small facilities in the United Kingdom and China.

“In the fall of 2008, our Heather Avenue plant employees were made aware that our company would be exiting the indicator and tube manufacturing business performed at that location,” said Peter Murray, vice president and general manager of Charter Automotive. “The move came as part of our parent company’s organization-wide workforce reduction in response to global economic conditions and declining market trends.”

Charter Automotive’s Heather Avenue facility has been for sale since 2008 and the company is still seeking a buyer for the building, a company spokesperson said.

Nashotah-based Dickten Masch Plastics LLC purchased selected machinery and hired a large number of former Charter Automotive workers in 2009 and earlier this year. The company now employs more than 60 former Charter Automotive workers – and Dickten Masch has been able to secure many of the company’s contracts in the indicator and tube manufacturing sector.

“We had a 20-year relationship (with Charter), a partnership and level of trust,” Steve Dyer, president and CEO of Dickten Masch told BizTimes previously. “We approached their customers and said this was an opportunity for a seamless transition for them.”

 

Reliable Plating Works awarded for sustainability practices

Reliable Plating Works, a Milwaukee nickel and chrome decorative plating firm, was recently recognized for its lean and sustainability efforts at the 2010 Manufacturing Extension Partnership National Conference in Orlando, Florida.

The company was honored for its Green Belt/Six Sigma training, which has resulted in an approximate $1 million in cost reductions over the last two years as well as reduced its emissions and hazardous waste. Much of Reliable’s training was proved by the Wisconsin Manufacturing Extension Partnership (WMEP). WMEP nominated Reliable for the award at the conference.

In its nomination letter, WMEP wrote:

“To Reliable Plating Works, Inc., green is not just a trend or an industry buzzword, it is a serious business strategy for any manufacturer interested in becoming more profitable, efficient, and environmentally responsible. Though the company has a long history of being a leader in recycling and zero discharge technology, it wanted to take lean and green to the next level.”

 

Baird analysts predict sluggish short term for Harley, but bright prospects in future

The sales outlook for Harley-Davidson motorcycles is likely to remain relative slow for the near term, according to a research report released by Robert W. Baird & Co. analysts on Friday.

Domestic dealers are expected to sell 44,000 to 46,000 motorcycles during the second quarter, a slight decrease from analysts’ previous prediction. While inventories at dealerships have fallen to reflect the lower demand, sales of used motorcycles have increased, the report states.

As seasonal demand has increased the appetite for bikes, inventories have fallen, which has helped increase average sales price. Because dealers are reporting thin inventories, the company’s production cuts appear to be working, the report states.

Harley’s long-term prospects remain bright, Baird analysts believe, because it still controls roughly half of the American motorcycle market.

“We remain bullish near $30 (per share), noting a compelling turnaround story, higher bike prices, bottoming retail trends, an inventory bullwhip as dealers replenish inventory and the potential to rethink HDFS (Harley-Davidson Financial Services),” the report states.

 

Wisconsin Manufacturing News

Johnson Controls seeks to acquire Visteon Corp.

Glendale-based Johnson Controls Inc. is seeking to acquire Visteon Corp. for $1.25 billion in cash.

Johnson Controls sent a letter to Visteon, expressing its interest in the acquisition, subject

to due diligence, the execution of a definitive agreement and the approval of its board of directors.

Visteon is based in Van Buren Township, Mich.

"We believe that Visteon's interiors and electronics businesses would be an excellent strategic fit with our Automotive Experience business," said Stephen Roell, chairman and chief executive officer of Johnson Controls. "This acquisition would significantly expand our automotive interior technologies and capabilities. It would provide global scale and complementary products to our automotive electronics offerings. Importantly, it would broaden and deepen our global automotive customer relationships."

Visteon interiors and electronics businesses are leaders in the fast-growing Chinese automotive interiors industry.

In China, both Visteon and Johnson Controls do business primarily through non-consolidated joint ventures. With the addition of Visteon's operations, Johnson Controls Automotive Experience consolidated and non-consolidated revenues in China could exceed an estimated $7 billion in 2011.

Visteon's major customers and Chinese joint venture partner support the transaction, according to Johnson Controls.

Johnson Controls initially contacted Visteon regarding its interest in the interiors and electronics businesses in January 2010.


Oshkosh Corp. lands another military contract

Oshkosh Corp. has received four more delivery orders valued at more than $234.8 million from the TACOM Life Cycle Management Command (LCMC) to supply more than 4,300 MRAP All-Terrain Vehicle (M-ATV) protection kits.

Oshkosh Corp. will deliver more than 3,800 rocket-propelled grenade (RPG) protection kits, as well as more than 500 explosively formed penetrator (EFP) add-on armor kits and in-field service and parts. Work under the orders is expected to be completed in April 2011.

The company has now received awards to deliver more than 7,500 RPG protection kits and more than 1,300 EFP armor kits.

"The M-ATV gives Warfighters MRAP-level survivability, and these kits will provide further protection from threats on the battlefield," said Andy Hove, Oshkosh Corporation executive vice president and president, Defense. "We continue to support the U.S. Armed Forces with the complete spectrum of sustainment services for the M-ATV, including the more than 2,000 in theater."

To date, Oshkosh has received awards valued at more than $5 billion for 8,079 M-ATVs, upgrade kits, spare-parts kits and sustainment support. The vehicle is designed to deliver the survivability and off-road mobility needed for harsh environments, such as those found in Afghanistan.

 

Brady Corp. reports robust quarter

Milwaukee-based Brady Corp. reported that its fiscal third quarter net income rose 31.9 percent to $23.7 million, or 45 cents per share, from $18.0 million, or 34 cents per share, in the same period a year ago.

Brady’s quarterly sales grew 16.3 percent to $321.9 million from $276.7 million a year earlier.

“We are pleased to see organic sales growth return in all regions, as well as improvement in our profitability. While we remain cautious about the stability of the global economy, we continue to invest in our future with robust new product development and other organic growth programs to expand the breadth of our product offerings and increase our market share. We are also investing in initiatives to streamline our SG&A functions, similar to the lean activities and Brady Business Performance System that we have been using to drive improvements in the operations area," said Brady president and chief executive officer Frank Jaehnert.

“Additional third quarter highlights include the acquisition of Securimed, a direct marketer of first-aid supplies in France. And the generation of cash flow from operations of $50.0 million increased our cash position to $207.1 million at April 30, 2010. We also completed a EUR75 million debt offering on May 13, 2010. This, along with our untapped bank revolving line of credit, provides us with significant flexibility to take advantage of future growth opportunities," said Brady chief financial officer Thomas Felmer.


$70 million expansion planned for Waukesha Electric Systems plant

Charlotte, N.C.-based SPX Corp. announced that it is planning a $70 million expansion to the Waukesha Electric Systems headquarters and manufacturing facility at 400 S. Prairie Ave. in Waukesha.

Waukesha Electric Systems Inc. is a division of SPX’s industrial products and services segment.

The company plans to add 140,000 square feet of space to Waukesha Electric Systems’ 292,000-square-foot plant. Construction is expected to begin in the fall of this year and be completed by the fourth quarter of 2011.

The expansion is expected to eventually create 250 permanent jobs. Waukesha Electric Systems currently has more than 500 employees at the plant at 400 S. Prairie Ave. The expansion will result in 100 new permanent jobs by the fourth quarter of 2011 and the company plans to add an additional 150 permanent jobs “over several years,” said spokeswoman Jennifer Epstein.

Waukesha Electric is receiving numerous government subsidies for the expansion project. Wisconsin will provide $4 million in tax credits to Waukesha Electric for its expansion project. In January, Waukesha Power Systems received $12.45 million in tax credits from the federal government, as part of the economic stimulus package, to expand the Waukesha plant. In addition, the city of Waukesha plans to provide $9 million in tax incremental financing (TIF) for the expansion project. TIF funds are repaid to the government by tax revenue increases in the TIF district.

Waukesha Electric Systems builds power transformers that are used by utilities, independent power producers and independent transmission operators. SPX said the expansion project will extend the company’s ability to manufacture large, high-voltage power transformers.

SPX expects demand for large power transformers to increase because of their ability to transmit power generated at wind farms and solar power generation facilities to distant load centers. In addition, the company says the “high efficiency” of the large power transformers makes them a good option for replacing older, less efficient transformers.

“We are now taking steps to strategically expand Waukesha’s manufacturing capacity and increase its ability to produce large power units for the North American power grid,’ said SPX chairman, president and chief executive officer, Christopher Kearney.

“The expansion of our Waukesha, Wisconsin facility will enable us to offer the broadest array of power transformers of any domestic manufacturer in business today,” said Tom Brockley, president of Waukesha Power Systems.

 

Made in Milwaukee

Some of the biggest names in motorcycling, all-terrain vehicles, snowmobiles, construction and agricultural equipment and even bicycling are all known for speed and handling.

But their products all have something else in common – the need to stop.

That’s where Mequon-based HB Performance Systems comes in. The company makes braking and suspension systems used by industry leaders like Harley-Davidson Inc., Bombardier Recreational Products, Caterpillar, and high end European bicycle manufacturers such as Decathlon.

“We are a braking and suspension supplier in the non-automotive market,” said Rand McNally, president and CEO. “We make brakes for everything from the smallest zero turn radius lawnmower all the way up to large Caterpillar tractors, backhoes and sprayers.”

From its Mequon headquarters and main manufacturing facility, HB makes brakes for motorcycles, ATVs, utility vehicles, snowmobiles, construction and agricultural equipment, and related markets. The company also operates a 100,000-square-foot facility in Milwaukee where it makes bicycle spokes, wheels and rims.

Read more in the latest Made in MIlwaukee profile in BizTimes Milwaukee.

Dispatches From China

Watching Warren Buffett on CNBC try to give a clean slate to Goldman Sachs stirred a number of thoughts. First, I was surprised the “Sage of Omaha” was willing to spend his personal good will to try to help Goldman, but then again, his company has a $5 billion primary investment and options on another 5 billion shares, so maybe it makes economic sense.

Second, it brought to the forefront the question of what is good will and what is it worth.

Warren Buffett is a brand. He is generally well-regarded everywhere, and China is no exception. Goldman Sachs also is a brand that the Chinese used to hold in high esteem. We will see what the future holds.

Read more here.

Manufacturing People in the News

Bradley Corp. has named Richard G. Dykowski director of engineering. 

Dykowski will lead all aspects of Bradley’s product and project design and development. His diverse background as a professional engineer and attorney make him uniquely qualified for the position. 

Dykowski worked previously with Harley-Davidson Motor Company where he most recently served as principal engineer. 

“We believe Rick’s strong engineering and leadership background – combined with his legal experience – provides the perfect mix of technical and strategic management that will lead Bradley’s product innovation to the next phase of growth,” said Don Mullett, chairman of Bradley. 


MGS Mfg. Group, a provider of engineered manufacturing solutions for the plastics industry, is pleased to welcome Brad Bollech to its program management team.

He worked previously at Tech Mold in Tempe, Arizona, first as a lead toolmaker specializing in multiple mold programs, and later as manager of their R&D Division. There, he obtained a broad range of experience in product development, prototyping, and building high cavity production molds.

Bollech joins a skilled group of program managers where he will be involved in quoting, tool engineering, technical sales, and business development, with a strong focus on the medical market.

 

More Manufacturing News

Wisconsin companies receive awards for environmental stewardship

Nine Wisconsin companies have received the 2010 Business Friend of the Environment Awards for leadership in pollution prevention, environmental innovation, and environmental stewardship from the Wisconsin Environmental Working Group, an affiliate of the Wisconsin Manufacturers & Commerce.

"As Wisconsin businesses strive to excel in tough economic times, these winning companies have proven that you can protect the environment and run a strong business," said Scott Manley, director of the Wisconsin Environmental Working Group. "These winners demonstrate that protecting the environment is the right thing to do, and less waste means more profit."

The recipients of the awards include: Pollution Prevention - Madison Golf and Development Group LLC, Middleton; ERCO Worldwide (USA) Inc., Port Edwards; Frito-Lay Inc., Beloit; Environmental Innovation - Wisconsin Grocers Association Inc., Madison; Paragon Development Systems, Oconomowoc; Madison Gas and Electric Company, Madison; Environmental Stewardship - Northwoods Paper Converting Inc., Beaver Dam; Orion Energy Systems Inc., Manitowoc; and American Transmission Company, DePere.

A panel of judges representing industry, an environmental group, the Wisconsin Department of Natural Resources, and academia select the Business Friend of the Environment winners.


Quad/Graphics gains Canadian approval for acquisition

Sussex-based Quad/Graphics Inc. has received approval from Canadian regulators to acquire World Color Press Inc. of Montreal, Quebec.

The approval was granted under the Investment Canada Act for the previously announced acquisition.

The transaction remains subject to additional customary closing conditions. If all necessary approvals are obtained, the companies expect the acquisition to be completed early this summer.

The acquisition will enhance Quad/Graphics' position as a commercial printing leader in North America serving the magazine, catalog, retail insert, book, directory and direct mail product segments and enhance Quad/Graphics’ standing as one of the leading commercial printers in the world.

The expanded Quad/Graphics will have nearly 30,000 employees serving customers in the United States, Canada, Latin America and Europe. World Color Press and Quad/Graphics had aggregate unaudited revenues for the 12-month period ended Sept. 30, 2009, of $5.1 billion.

 

Calendar

The Milwaukee chapter of the Society of Plastics Engineers will hold its annual “Guest Night: Relationship Building, Meeting Old/New Friends” on Tuesday, May 25 from 5 to 9 p.m. at Discovery World at Pier Wisconsin, 500 N. Harbor Dr., Milwaukee. Cost is $39 per person. For information, visit http://www.milwaukeespe.org.


The seminar, “Fitness For Duty For Employers: A Legal and Medical Perspective” will be held on Wednesday, June 2 from 7:30 to 10:30 a.m. at the Doubletree Hotel Brookfield, 18155 W. Bluemound Rd., Brookfield
The seminar, presented by Sensia Healthcare and Michael Best & Friedrich LLC, will provide a medical and legal background on fitness for duty, address specific cases, and encourage the seminar attendees to raise their questions for discussion.
Cost is $25, to register, visit www.sensiahealthcare.com.

Manufacturing Resources


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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