Earlier this week Gord Montgomery had the chance to see in person the updates since our last visit earlier this year. Updates include an expanded metallurgical lab with more equipment, updated controls for another of the batch IQ furnaces, a completely rebuilt and modernized endothermic generator and a 1500 pound per hour mesh belt furnace line with polymer quenching which will be in production just a couple of months from now.
Almost undoubtedly all captive heat treat departments go through similar updates, expansions and upgrades on a regular basis but seldom do we get to see such a “catalogue” as can be seen in these photos.
In related news Allied has shared with “The Monty Heat Treat News” a number of photos of some of their recent additions which includes more batch IQ capacity and a third mesh belt furnace line. These will be upcoming.
“JANUARY 2023; In House Heat Treater Expands-Allied Locke Update; Last week we had an interesting item about a US firm by the name of Allied Locke in Dixon, IL expanding their in house heat treat department (the original story can by found at this link In House Heat Treater Continues to Expand Heat Treat Department | The Monty and also below). As it turns out what your read was only part of the story, we can now add these further details;
We will also issue a correction, it would appear that the company will have 3 mesh belt furnace lines as opposed to 4. All in all an extremely impressive investment.
”NOVEMBER 13th 2022. In House Heat Treater Continues to Expand Heat Treat Department; Headquartered in Dixon, Illinois, USA Allied Locke is a manufacturer of chain and chain products. Founded in 1965 as Allied Chains the company has grown and prospered over the years and now has five divisions: Agricultural Chain, Precision Roller Chain, Industrial Chain, Sprockets, and Environmental Products. The primary manufacturing facility (Plant 1) in Dixon, IL covers nearly 675,000 square feet. Home – Allied-Locke Industries (alliedlocke.com)
The firm has always considered heat treating to be a “core competency” and to that end they have continued to invest and expand their heat treat department, to the point that it is becoming one of the larger captive heat treaters in the US. Currently Allied has 6 batch IQ furnaces, each 36″ X 72″ X 36″, 3 Can Eng mesh belt furnace lines and related equipment including endothermic generators. As we speak a 4th Can Eng mesh belt line is being installed and plans include one more batch IQ line.
At the same time the company has recently installed what was described to us as an “amazing, new” metallurgical lab and is working towards CQI-9. So often heat treating is an afterthought in manufacturing firms and is relegated to that dark dirty area at the back of the plant. It makes our day at “The Monty Heat Treat News” to see that some companies rightfully understand the importance of heat treating-Allied Locke is certainly one of these.”
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“The Monty Heat Treat News” is proud to present our list of the 10 largest North American furnace builders as ranked by 2023 sales. Before we get to our list we would like to make some points about how we arrived at these rankings;
· It is important to note that this list only includes furnace suppliers who manufacturer in North America. This is an important distinction in that some well known brands in North America will not be included as they manufacture the majority of their products outside of North America. Examples include such well known brands as SECO/WARWICK, ECM, ALD, Nitrex and TAV.
· North America of course includes the USA, Mexico and Canada, both Canada and Mexico have one company each on this list.
· Our list included suppliers of both atmosphere and vacuum furnaces. Apples to oranges comparison? Perhaps because the atmosphere market is substantially larger than the vacuum market but having said that the largest builder by far is almost exclusively vacuum.
· Another distinction we should point out is that this list only includes firms who focus on the heat treat industry. Our list does not include suppliers who concentrate on other industries such as the steel industry or foundries.
· Sales for each of these companies includes new furnaces, spare parts, rebuilds and ancillary equipment.
· Sales figures came from a number of different sources. In the case of Ipsen it is a publicly traded firm so sales figures are relatively easy to come by. Solar Manufacturing is always very forthcoming with their sales figures, we thank Mr. Bill Jones, CEO for his openness. In most other cases we were given sales figures on the basis that they were not shared. Gasbarre, and McLaughlin two companies on our list have provided a rough idea of their sales in recent articles/Interviews.
· Each of these companies has sales of $20 million or over. Other companies which we considered and which would be on a list of the 20 largest include Vac Aero, Williams, CEC, Lindberg, Abbott, GM Enterprises (which is under the Nitrex banner) and Centorr Industries.
· All figures in USD
· We thank everybody who helped us on this project.
1) Ipsen USA, Rockford, Illinois. With 2023 sales of over $110 million USD vacuum furnace builder Ipsen USA had sales almost double that of the second largest furnace builder. Of this total 50% is new equipment and 50% aftermarket (parts, service, hot zones). Ipsen is based in Kleve, Germany which produces Ipsen’s line of atmosphere furnaces while Ipsen USA builds vacuum furnaces for the global market.
“Excellence in thermal processing allows you to push the boundaries of what’s possible: whether it’s transforming space exploration, crafting better medical implants or developing more efficient cars and jet engines. Backed by more than 75 years of experience, our global team works in concert so that manufacturers and commercial heat treaters can innovate with confidence.” https://ipsenglobal.com/
2) AFC-Holcroft, Wixom, Michigan. We would suggest with little hesitation that AFC-Holcroft of Wixom, Michigan is the largest manufacturer of atmosphere heat treating furnaces in North America. Over the years the company has built just about every configuration of atmosphere furnace there is although they are best known for batch IQ furnaces and pushers. “AFC-Holcroft, L.L.C. is a leading manufacturer of industrial furnace systems used in the heat treatment of ferrous and non-ferrous metals. Building on the traditions of Holcroft & Company dating back to 1916, AFC-Holcroft services clients across the globe. AFC-Holcroft was created as an L.L.C. in 2000, then purchased by the AICHELIN Group in 2016.
AFC-Holcroft produces high quality thermal processing equipment used in the production of metal components, and provides related aftermarket service. Customers include both captive and commercial heat treaters who supply components to various industries such as automotive, heavy truck, industrial bearings and gears, railroad, fasteners, mining, aluminum heat treatment, and others.” https://afc-holcroft.com/
3) Surface Combustion, Maumee, Ohio. Surface Combustion in Ohio is probably the oldest company on our list with a history which stretches back over 100 years. Privately owned they have built just about every style of furnace out there but they are best known for their line of “Allcase” batch IQ furnaces of which the company has built literally 1,000’s making it the most common furnace in North America; “For over 100 years, Surface Combustion has been the leader in industrial heat treatment solutions. From our signature Allcase® Batch Integral Quench Furnace to tried and proven vacuum furnace options and customized engineered products, we are your source for all heat treat and thermal processing needs.
We work with all industries including agricultural, automotive, biomass, oil & gas, and powder metals and so many more. We are also an excellent resource for rebuild and retrofit services as well as maintenance and operation.” https://www.surfacecombustion.com/
4) Can Eng, Niagara, Falls, Ontario, Canada. Can Eng International in Niagara Falls, Ontario, Canada is our only Canadian furnace builder on this list. The company is best known for their mesh belt furnace lines and aluminum capabilities; “CAN-ENG Furnaces International Ltd. was established in 1964 and has grown to become a leading global designer and manufacturer of thermal processing equipment for ferrous and non-ferrous metals.
We focus on the development of high volume batch and continuous industrial furnace systems for challenging applications. Our rugged furnace designs have served commercial and captive heat treaters, stamping and fastener companies, automotive component producers, the iron and steel industries, aluminum foundries, agricultural, construction and appliance manufacturers for over 60 years and we have an international reputation for design innovation, quality workmanship and a dedication to service.” https://www.can-eng.com/
5) AVS Inc., Ayer, MA. AVS is a privately held company owned by Jake Krashan. “AVS is a manufacturer of custom, high-temperature vacuum and pressure furnace equipment for
customers worldwide. AVS is a vertically integrated manufacturing facility, with full capabilities including design and engineering, ASME code-certified welding, mechanical assembly, electrical design and assembly, controls programming, and complete functional testing. AVS has a main manufacturing facility in Massachusetts and a supplemental facility in New Hampshire with over 40,000 square feet of manufacturing space for systems up to 26 feet in height. Two 10-ton and two 20-ton overhead cranes, cooling water system, and 3000 amps on site allow AVS to completely build and full-temperature test every furnace before it leaves the facility.” https://avsinc.com/
6) Solar Manufacturing, Souderton, PA. We would consider Solar Manufacturing to be the second largest vacuum furnace builder on our list because of their laser focus on vacuum heat treating only. The firm is always very open on their sales figures and we quote; Solar Manufacturing Inc. sales for 2023 to the North America market were $24.5 million for 24 furnaces and major hot zone rebuilds. Sales were to the Aerospace, Medical, Commercial HT, and General Manufacturing, non automotive. All applications were vacuum heat treating furnaces, non atmospheric or flammable atmospheres like hydrogen, natural gas, and the like. Solar Mfg. is in a 40;000 square foot plant dedicated to our vacuum furnace mfg. business and has 56 full time employees. This means our sales per employee is $437,500. USD.
“Solar Manufacturing is a privately held, U.S.-based company providing technologically advanced vacuum heat treating furnaces designed and built to be the most energy efficient, cost effective, and highest performance furnaces on the market. With decades of experience as its foundation, our team offers unmatched expertise in solving our customers’ most difficult heat treating problems. Together with our affiliate Solar Atmospheres, we continually develop new solutions to vacuum processing applications and improve the science of vacuum furnace technology.” https://solarmfg.com/
7) Gasbarre, St. Marys, PA. “Founded in 1973, Gasbarre Thermal Processing Systems is located in St. Marys, PA and has grown to have approximately 80 employees dedicated to serving the thermal processing industries worldwide. Gasbarre designs, manufactures, and services a full line of thermal processing equipment for virtually any process. Gasbarre’s offering includes continuous and batch atmosphere equipment, and continuous and batch vacuum furnace lines that serve a wide range of thermal processing applications and can be adapted to nearly any production process.
In 2023, Gasbarre moved into a state-of-the-art facility with 150,000 sqft of manufacturing space to support their continued growth. Gasbarre is dedicated to serving its customers by providing products and services that combine value and design flexibility through knowledge and understanding of their customer’s processes.” https://www.gasbarre.com/thermal-processing-systems/
8) McLaughlin Furnace Group, Avilla, IN. Quite possibly the fastest growing company on our list is McLaughlin Furnace Group and this is how they describe themselves; “McLaughlin Furnace Group is much more than the maintenance and repair shop it began as in 2007. In the beginning,
McLaughlin Services only offered complete furnace rebuilds, including structural fabrication, refractory, piping, rigging, mechanical assembly, electrical, and controls.
But it didn’t take long for the Avilla, Ind., company to branch out. Shortly after opening its doors, McLaughlin Services started fabrication of car-bottom, temper and atmosphere furnaces, and support equipment. Since then, this MTI Diamond Member has started supplying custom flow panels and piping as well as custom, easily expandable endothermic generators.” https://www.mclaughlinsvc.com/
9) Mattsa Furnace Company, San Luis Potosi, Mexico. Founded more than 25 years ago by Mr. Carlos Torres Mattsa in the only Mexico based furnace builder on our list. The company offers a very wide variety of heat treat furnaces which includes batch IQ furnaces, rotary hearths, mesh belts and roller hearths. Mattsa is the AFC-Holcroft licensee in Mexico and the relationship has been a long and prosperous one. Associated with Mattsa is commercial heat treater CRIO also located in Mexico. https://www.mattsa.com.mx/wp/en/home/
10) Rogers Engineering, Cambridge City, IN. Rounding out our list of the 10 Largest is privately owned Rogers Engineering in Cambridge City, Indiana While not as well known as many on the list their products will chiefly be found in captive heat treat operations; “ROGERS ENGINEERING is a world-wide leader in furnaces and other heat treatment related products and services. We supply equipment in the United States and 14 countries throughout the world, with a customer list consisting of the top companies in the world. Also offering, a full range of heat processing equipment ranging from batch through continuous and supporting atmosphere producing equipment. Rogers’s equipment is noted for its robust design, ease of maintenance, and low operating cost.” http://rogersengineering.net/
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The Monty Heat Treat News has worked closely with International Search Partners (a US search firm known for being the only recruiting firm in the world working exclusively in heat treating), for over 20 years. That relationship has blossomed into a regularly featured article, “Ask the Heat Treat Recruiter,” where ISP’s seasoned team answers questions about salaries, interviewing, negotiations, and a host of other topics related to recruiting and job searching for companies and/or individual employees.
Managing Recruiter, Josh Hale and Sr. Recruiter, Jessica Maier, address the most common question that comes up when talking to people in the industry:
What are the average salaries for a heat treater right now?
In the early post-pandemic days wages were rising incredibly fast and, while the upticks have slowed down a bit, salaries are continuing to go up to meet market demand for talent. It remains a “candidate’s market” and, whereas we previously saw “good” offers for new hires equate to roughly a 10-15% increase in salary, today’s workers are demanding (and getting) 20%+ to switch companies.
Recognizing these overall market conditions, here are some “back-of-envelope numbers” for the most common jobs within a commercial heat treat in 2024…
Furnace Operators – The bottom line is that every commercial heat treat is hurting for production hourly workers right now and those laborers have seen their wages increase with demand. As recently as a few years ago, operators were earning in the low teens to the low twenties, but those averages have risen to $25+/hr plus the availability for OT.
Field Service Engineer – For the entirety of ISP’s existence (25+ years), FSEs have been one of the most in-demand and difficult to recruit for and hire positions. As such, they are well compensated with most good field techs taking home well over $100k when factoring OT and per diems. The most recent hires that we’ve made in this area have been starting in the $33-40/hr range.
Maintenance – The demand for in-house maintenance has boomed over the past 2-3 years and wages for these professionals along with it… these days expect to pay $40 or more per hour for a seasoned maintenance mechanic and upwards of $125-150k+/yr for a strong manager with preventative maintenance and supervisory responsibilities.
Quality Engineers/Managers and Metallurgists – There can be a lot of variation for base salaries between plant metallurgists, lab metallurgists and those who specialize in quality, but as with all positions in heat treat, the supply-demand ratio has led to an increase in pay, with current salary ranges from $70-$125k and above depending on the level of experience and technical expertise required.
Design Engineers (mechanical and electrical) – Engineering and design is another job function that has seen a large increase in need since the pandemic. OEMs can expect to pay degreed mechanical engineers with experience near or above $100k and experienced PLC programmers or EEs are earning $125-150k. Some companies have found success hiring recent grads and offering training programs, which can of course be more affordable with starting salaries for engineers closer to $60-70kish.
Sales Engineers – Business development deserves special attention because of the variable nature of commission-based compensation; however, a good salesperson is worth their weight in gold and market rates for their talents reflect that fact with base salaries rising to the low $100ks for someone with experience in the industry, who can easily take home $150-175k+/yr with incentives. Typically, technical salespeople working for furnace manufacturers will earn more than commercial heat treat BDMs who are usually compensated at the lower end of that range.
Plant Managers/GMs – It’s difficult to give a reasonable range for managers because many factors come into play, such as size of company, number of employees, location, etc., but also at the top of the pyramid titles can be somewhat nebulous and a “Plant Manager” at one company might be more akin to a “GM” at another. Trends for leadership roles have been to include more variable compensation in the form of bonuses, commissions, or even a path to equity. As with all roles within the heat treat industry, there is more need for companies to hire managers, supervisors, and executives, than there is qualified talent. As such, compensation and incentives have been instituted to lure more people to the industry.
If a position you work in or are thinking about hiring for wasn’t mentioned, or you would like to discuss specifics, please feel free to reach out to Josh or Jessica via LI or at the contact info below. Also, let us know your other questions for future editions of “Ask the Heat Treat Recruiter!”
Josh Hale has collaborated with companies to identify, engage, and hire top performers as a professional “headhunter” where he’s focused exclusively on the heat treat industry as part of International Search Partners since acquiring the firm in 2015. He works closely with Jessica Maier to support the practice, and, together, they’ve helped dozens of companies and hundreds of candidates find the match within the industry, including roles for engineering, sales, quality, metallurgy, management, and more. For additional information email [email protected] or call 619-465-9621.
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Nick will be tasked to lead the further development of Solar Manufacturing’s energy efficient hot zones, vacuum vessels, high pressure gas quenching systems, and vacuum pumping systems. Nick was a Program Manager in his last position and led a team of design engineers who were focused on the development of specialty battery technologies for space and defense applications.
Bob Wilson, VP of Engineering stated, “Nick will be an excellent addition to our design team from his rich, multi-disciplinary industrial experience of the past 10 years. He will work alongside me for the next couple of years as I prepare for eventual retirement. The company will be well-positioned to continue its excellent reputation as an industry leader of robust vacuum furnace designs.”
Solar Manufacturing designs and manufactures a wide variety of vacuum heat treating, sintering, and brazing furnaces. They also offer replacement hot zones, spare parts, and professional service. To learn more about Solar Manufacturing visit us at solarmfg.com or call 267-384-5040.
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Derek Dennis, President of Solar Atmospheres of California, states, “We are very fortunate to introduce Chris into the Solar Family of companies. As a highly disciplined business leader, Chris has the experience and knowledge to lead the Solar San Diego team through the new acquisition and establish a solid foot hold in the Southern California heat treat and brazing market. I enthusiastically welcome Chris to the Solar team and look forward to working with him in the growth of the Solar San Diego operation. Truly exciting times for Solar Atmospheres!” For more information about the Solar Atmospheres of San Diego facility, visit solaratm.com, or contact Chris directly at 619-593-3636 ext. 1933, or [email protected].”
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