Monday, June 28, 2010
Milwaukee millwork firm sees demand rebound
Lange Bros. Woodwork Co. Inc., a Milwaukee-based manufacturer of architectural woodwork, has seen orders rebounding since the start of the year; its orders have increased 66 percent in the first five months of 2010 compared to the same period last year. Work hours have risen 95 percent in the same time frame, both because of the increased demand and because Lange Bros. is performing some functions in house that it used to outsource.
“The types of jobs we have now have more of the stuff that we’re producing,” said Randolph Lange, who owns the company with his sister Lori Poull.
“We’re bidding twice as many jobs this year as we did last year. There are a lot of little jobs out there that people need done quickly.”
Lange Bros. operates two facilities – a 28,000 square foot wood mill in Milwaukee and a 24,000 facility that specializes in countertops and other surfaces in Beecher in the far northeastern portion of the state.
Although Lange Bros. was forced to make layoffs last year, it has brought all of them back. The company has hired 11 employees since the beginning of the year, putting its employment higher than it was last year, when it made layoffs, Poull said.
“We started bringing people back at the end of 2009,” she said.
Over the last few months, Lange Bros. has been asked to bid on more projects, and a rising number of larger projects, Lange said.
“We’ve seen some government bids – VA Hospitals and housing projects,” he said.
While the company has a six month backlog on orders, it is not planning to hire additional employees now.
“That could change with a phone call, if someone came in and we were looking at a tight deadline,” Lange said.
American Concrete Pipe completes flawless order for MMSD project
American Concrete Pipe Co., a subsidiary of Waukesha-based The Spancrete Group Inc., with manufacturing facilities in Milwaukee and Green Bay, recently completed a two and a half year project with the Metropolitan Milwaukee Sewerage District – during which the company delivered 1,692 pieces of concrete pipe with no rejections.
The sewage project required 84 inch wide pipes, with an average length of eight feet. All of the pieces were poured at ACP’s plants in Milwaukee and Green Bay, and were shipped to the job site in Milwaukee’s Menomonee Valley between South 6th and 27th streets.
Although ACP’s manufacturing process is known for its quality, the company was a bit surprised that there were no rejections during the MMSD project, said Kimberly Wacker, Spancrete’s director of marketing and business development.
“We’ve spent years honing our concrete pipe process – it’s a shocker when we get rejects,” she said. “This was still a surprise.”
Sewer projects require multiple inspections for every piece of pipe, both in the factory and when delivered to the job site.
“Working on a project where we don’t have to send pipe back, we’re never short on any individual day,” said Dick Schluge resident engineer with R.A. Smith, who worked on behalf of MMSD on the project. “With the project almost complete, it’s projected to finish three months ahead of schedule.”
Milwaukee’s MillerCoors brewery is making “green beer”
At 155 years, MillerCoors LLC’s Milwaukee brewery is the oldest in the company’s combined network of facilities.
From its 82-acre State Street campus with 76 buildings, the Milwaukee operation has brewed at or near record volumes during the past 18 months, making 6.8 million barrels of beer in 2008 and 8.2 million barrels in 2009. The brewery expects to generate more than 9 million barrels in 2010.
“Between May and August, we’re making about 900,000 barrels per month,” said Andrew Moschea, vice president of the Milwaukee brewery. “We’re quite busy now, as busy as we have been in the last 30 years.”
MillerCoors has more than 1,500 employees in Milwaukee, and more than 830 of those workers are directly involved in production at its Miller Valley brewery.
While the Milwaukee facility is producing at capacity levels for much of the year, the company’s executives also have found ways to dramatically reduce the facility’s use of electricity and water. The brewery reduced electricity usage by 12 percent in 2009 and forecasts another 11-percent reduction this year. Water usage per barrel of beer made dropped 8 percent in 2009 and should drop another 4 percent this year.
“February was the lowest water usage (per barrel) month for this brewery,” Moschea said. “And there is a lot of brewing going on here now. That bodes well for our future water use.”
Despite its age, the Milwaukee facility has created a model of efficiency and sustainability for the company’s other breweries, which are more modern.
Read more in the latest edition of BizTimes Milwaukee.
Wisconsin Manufacturing News
Shareholders approve Quad/Grapics purchase of Worldcolor
The shareholders of Quad/Grapics and Worldcolor approved Quad/Graphics’ purchase of Worldcolor late last week, clearing one of the last hurdles to the planned.
The companies await a decision from the Québec Superior Court (Commercial Division) today and other closing conditions. A hearing in respect of the final order approving the arrangement is scheduled to take place later today. If the acquisition is approved, it is expected to be completed on July 2.
Once Quad/Grapics completes its acquisition of Worldcolor, it will become a publicly traded company on the New York Stock Exchange.
Magnetek again falls below NYSE listing standards
Menomonee Falls-based Magnetek Inc. was recently notified by the New York Stock Exchange that it is below the continued listing standards of the NYSE, because the company's average market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported shareholders' equity was less than $50 million.
In November of 2008, the company was notified that it was not in compliance with the continued listing standards of the NYSE. The company regained compliance with the listing standards as of May.
Magnetek now has 45 days to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the listing standards within 18 months. If the NYSE does not accept the company’s plan, it could be delisted from the stock exchange.
Diversey to eliminate 120 jobs in Racine area
Sturtevant-based Diversey Inc., a manufacturer of commercial cleaning, sanitation and hygiene products, plans to reduce its Racine-area workforce by about 120 positions, including all positions in its Racine manufacturing plant. The company currently has 85 production workers in Racine.
It will also reduce its administrative staff in Sturtevant by 35.
The production jobs will be lost over the next two years as Diversey shifts production to plants in Watertown and London, Ontario, said John Matthews, senior vice president of corporate affairs.
The company will make its products using capacity at its two remaining production plants as well as contract manufacturers. Diversey’s Racine plant is located inside S.C. Johnson’s Waxdale facility.
The private equity firm Clayton, Dubilier & Rice bought a 46 percent stake in Diversey last fall for about $477 million. The Johnson family retains a roughly 50 percent stake in the company.
At the time of the purchase, Diversey announced plans to build a new production facility within its distribution center in Sturtevant. After engineering work and a study of federal building codes, those plans were found to be too expensive, Matthews said.
“We never intended to build a stand alone facility,” he said. “Now that we cannot (build inside our Sturtevant distribution center), what makes the most sense is to use our existing capacity at our own plants and among contract manufacturers in the area.”
Diversey does not yet have agreements with any contract manufacturers to make its products, Matthews said. The company made its announcement as early as possible to tell its employees about the two year transition period.
“We are working to provide as many employment opportunities as possible, either in Watertown or within contract manufacturing operations,” Matthews said. “We announced this to our employees and publicly before we had all of the details worked out. We’re making every effort to keep as much volume in Wisconsin and as close to Sturtevant, where we have our distribution center.”
Made in Milwaukee
Most people that live in the Milwaukee area are probably very familiar with the products made at Ball Corp.’s Milwaukee facility. However, most people probably have no idea what is being produced at the company’s factory on the far northwest side.
Broomfield, Colo.-based Ball Corp. makes two lines of products at its Milwaukee facility, using very similar production techniques – aluminum cans used by breweries for canned beer, and steel cans used for canned foods, baby formula and some pharmaceutical products.
The Milwaukee plant produces about 1.3 billion cans per year – or roughly eight million cans per day. Production is evenly split between aluminum and steel cans. Each line makes about 4-million cans per day.
Roughly 90 percent of the demand for the Milwaukee plant’s aluminum cans is from the Milwaukee MillerCoors brewery. The rest is from smaller regional breweries that use cans, such as City Brewing Co. in La Crosse and Coldspring Brewery in Cold Spring, Minn.
Read more in the latest Made in Milwaukee column in BizTimes Milwaukee.
Dispatches From China
On April 13, China’s State Council issued new guidelines for foreign investment in China. The new rules were reported in People’s Daily as well as the other official news organs of the Chinese government.
Since then, businesses have been trying to decipher the new policy, which is long on general goals and short on the specific procedures to achieve them.
The consensus seems to be that China is taking a quality-over-quantity approach in the major cities, which emphasizes attracting foreign direct investment in higher-margin businesses and discouraging those enterprises with significant environmental footprints.
In the poorer and less developed western regions, China is now giving local governments the direction and ability to attract labor-intensive, lower-margin business, apparently in the hopes that the energy which propelled the major costal cities will serve as a development model for these unknown cities.
Read more here.
More Manufacturing News
A.O. Smith factory in Tennessee resumes production after flooding
Milwaukee-based A.O. Smith Corp. said its largest water heater facility in Ashland City, Tenn. is up and running faster than expected since the flooding of the Cumberland River in early May.
While the facility was down, A.O. Smith shifted residential water heater production to its other North American operations.
The company said today that residential water heater backlogs to return to their normal lead times in early July.
"I am very proud of the teams that are executing a remarkably quick recovery to this natural disaster," said Paul Jones, chairman and chief executive officer. "Bringing a flooded plant back on line is an extraordinarily complicated process, not to mention the complexities of simultaneously relocating production to our other plants. To accomplish this feat in such a short period of time is a testament to our commitment to customers, all of whom have been supportive during this difficult time.”
Generac providing backup power to Village of Eagle
Following heavy rains and flooding last week, Waukesha-based Generac Power Systems Inc. supplied backup power to the Village of Eagle Fire Station and assisted the Eagle Public Works Department to provide temporary power to local homes and businesses.
The village was hit the hardest by severe storms which included tornados that swept through southeastern Wisconsin last week. Several homes in Eagle were destroyed or severely damaged.
“Our plant in Eagle gives us local roots in the community and many Generac employees live in this area,” said Aaron Jagdfeld, Generac president and CEO. “I was especially concerned watching the storm unfold and am relieved no one has been hurt. Generac is grateful we are able to help the residents while they are without power and will continue to do whatever we can until power is restored.”
Gov. Jim Doyle declared a state of emergency for Waukesha County last week.
Federal grant will help displaced Wisconsin auto workers
The University of Wisconsin-Whitewater will receive a federal grant of $5.9 million to retrain displaced auto workers in southeastern Wisconsin and north-central Illinois.
U.S. Commerce Secretary Gary Locke announced the Economic Development Administration (EDA) grant for UW-Whitewater to administer the Auto Adjustment Entrepreneurial Support Initiative.
The grant will benefit Rock County, where General Motors Corp. shut down its assembly plant last year, and Kenosha County, where Chrysler is expected to close its engine plant this fall.
"Collaborating across state lines to maximize regional resources in new and innovative ways will help create jobs in this economically-distressed region," Locke said. "This EDA grant will create jobs by supporting a seamless network of regional services and incubator facilities that will accelerate innovation and entrepreneurship, particularly in emerging green technologies and global commerce, and by providing training in high-skill, high-wage industries."
“Secretary Locke and the U.S. Economic Development Administration have been stalwart supporters of America's auto communities around the country. As the members of the President’s Auto Council heard on our trip to Kenosha and Janesville last week, funding for job creation and business development is the highest priority need. This grant represents a significant investment in these two communities, as well as others in the area dealing with job losses at the regions’ GM and Chrysler plants or at auto suppliers. Helping to support entrepreneurs across this region represents another important step in the Administration’s efforts to promote recovery and help auto workers and their families," said Ed Montgomery, executive director of the White House Council on Automotive Communities and Workers.
Calendar
The Milwaukee chapter of the Society of Plastics Engineers will hold its annual golf outing on Monday, July 12 with a shotgun start at 9:45 a.m. at the Mequon Country Club, 12400 North Ville Du Parc Dr., Mequon. For information, call Pete Kambouris at (262) 786-4521 or email spe@wi-engraving.com.
Manufacturing Resources
Manufacturer Associations
- Association of Equipment Manufacturers
- The Association for High Technology Distribution
- 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
- Tool, Die and Machining Association of 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.



