February 14^th of this year we had a news item about captive heat treater Apex Tool Group in Sumter, SC auctioning off their in house heat treatment department. We speculated on the value of the equipment, specifically an old Ajax Austemper line which we suggested was probably only worth scrap value-well we were off by $250.00 USD.

The auction has been completed and we can now tell you what the heat treat items sold for, in some cases prices were shockingly low. Granted the equipment was only in fair shape however it was all operational so we are puzzled as to why as an example a Surface washer would sell for only $25.00. Here is the summary (all prices in US funds).

• Surface Combustion 36x48x36” Batch IQ -$10,250
• Ajax Austemper Line – $250
• Surface Temper – $4000
• Other Tempers (Sunbeam, Lindberg) – $300 to $1300 
• Surface Washer 36x48x36” – $25
• Wheelabrators – $100 ea

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“McLaughlin Furnace Group is excited to welcome Controls Engineer Nelintun “Nay” Yeelin to the team. Nay has brought an exceptional amount of experience to the McLaughlin team including extensive heat treat knowledge from his previous positions. Nay will play a major roll in McLaughlin Furnace Group’s growth.”

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As a global provider of turnkey systems (nitriding, nitrocarburizing, vacuum), heat treatment services, as well as instrumentation and automation solutions, Nitrex is proud to announce that its facility in Querétaro, Mexico, has been awarded its heat treating Nadcap accreditation.

“We are extremely proud of our team in Querétaro, Mexico, for their invaluable contributions in achieving this significant quality system accreditation for the aerospace sector,” said Jason Orosz, president of Heat Treating Services (HTS) at Nitrex. “Nitrex has had a long history of developing processes and methods for exacting surface treatments. A Nadcap accreditation is the apex of this achievement in the aerospace sector. We are happy to push our knowledge and quality systems to our worldwide facilities.”

Mark K. Hemsath, vice president of Sales at Nitrex Heat Treating Services Americas, noted: “This is a major accomplishment for our Querétaro team. A Nadcap accreditation requires a rigorous commitment to all aspects of the quality system. Our team’s expertise is built on a foundation of continuous improvement, which will undoubtedly benefit our facility’s customers from all sectors, not just aerospace.”

Nitrex HTS has a global presence, with service centers in Mexico, China, Italy, Canada and the United States. In Querétaro, Mexico, the facility focuses on gas nitriding and nitrocarburizing, with new equipment being added in vacuum heat treatment for its aerospace customers.

Currently, Nadcap has approved the operations of the Nitrex HTS facilities in Franklin, Indiana, and in Querétaro, Mexico.

About Nitrex. NITREX (www.nitrex.com) is the only fully integrated global provider in the surface treatment market. The company was founded in 1984 in Montreal, Canada, and operates three business units – Nitrex Turnkey Systems (NTS), with turnkey nitriding, nitrocarburizing, and vacuum systems; Heat Treating Services (HTS), a worldwide network of commercial heat treating service centers; and UPC-Marathon, a leading provider of controls upgrade and automation solutions for heat treating and combustion.

With more than 450 employees and a market presence in over 55 countries, Nitrex serves its customers globally from 14 locations across the United States, Canada, Mexico, Brazil, Germany, Poland, Italy, France, China, Japan, and through a global network of representatives and licensees.

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Since 1999 “The Monty” has been publishing annually a list of the largest commercial heat treaters in North America based upon annual sales, our 2021 list can be found at https://themonty.com/articles/50-largest-north-american-commercial-heat-treats-2021-2/ This year readers will see we became much more ambitious and expanded the list to the 50 largest. In our 33rd spot we have Lake City Heat Treating, Warsaw, Indiana.

Lake City Heat Treating in Warsaw, Indiana is part of a very small select group in that for years the company has offered Hot Isostatic Pressing which only a handful of companies can say. With roughly 13 vacuum furnaces and 3 “Hip” Vessels the company focuses on the medical and aerospace industries. Major shareholder is Mr. Bill Davis. Lake City has made our news section several times over the years, each time when the company was making a new equipment investment.

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To this very interesting press release we can add this photo of Nitrex, Poland which we visited a few years ago. In this picture we see Gord Montgomery (The Monty Heat Treat News) on the left and the founder of Nitrex, Mr. Michael Korwin on the right.

Montreal, CANADA, February 23, 2022 – Nitrex, a global provider of fully integrated surface treatment solutions, has announced the completion of its Poland plant expansion. This expansion will allow the company to not only double its current European production capacity for both its Nitrex Turnkey Solutions, including gas nitriding furnaces, and UPC Marathon software and controls products line, but also manufacture its new advanced vacuum heat-treating systems (formerly marketed under the G-M Enterprises name). This expansion comes in addition to the existing vacuum furnaces assembly capacity in the United States. In this sense, Nitrex remains strongly committed to the US market.

“When we set out to grow the vacuum furnace business with G-M Enterprises and bring these value-engineered solutions to the rest of the world, we knew that we had to scale internationally,” says Jean-Francois Cloutier, Nitrex CEO. “We saw an outstanding growth opportunity to build that potential even further, using our newly expanded manufacturing base in Poland to tap into the European market. This aligns with our vision to deliver to our customers turnkey solutions globally, with agility and efficiency, all while maintaining high quality standards,” continues Cloutier.

Nitrex Vacuum Furnaces is a leading and world-renowned technological supplier, servicing customers in sectors such as aerospace, automotive, defense, medical, industrial, and 3D printing and metal injection moulding.

About Nitrex. NITREX is the lead provider of fully integrated surface treatment solutions and technologies globally. The company was founded in 1984 in Montreal, Canada and operates three business units – Nitrex Turnkey Systems (NTS) a leader of turnkey nitriding, nitrocarburizing, and vacuum heat treat systems; Heat Treating Services (HTS) a worldwide network of commercial heat-treating service centers; and UPC, a leading provider of controls upgrade and automation solutions for surface treatment and combustion. NITREX serves its customers globally from 16 locations across the United States, Canada, Mexico, Brazil, Germany, Poland, Italy, France and China, and sells in over 60 countries through a global network of representatives and licensees.

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Industrial Heating Equipment Association (IHEA) always does a very good job with their regular Executive Economic Update & Analysis summaries and their January 2022 report is no exception. In it IHEA brings up the 3 main issues facing the industry this year, Inflation, Supply Chain and Labor. 

January 2022

It seems to be the economic equivalent of “lions, tigers and bears – oh my!” It is “inflation, supply chain and labor – oh my!” These have been the top concerns for several months now and that situation is unlikely to change soon. The good news is that there is a good chance that at least two of these issues will become less threatening as the year progresses. We can start with the outlook in regard to inflation. The headlines from the last few weeks have been near hysterical levels and there have been plenty of doomsayers that have made wild assertions regarding the imminent arrival of hyperinflation or stagnation. It is probably a good time to take a breath and calm down a little.

The inflation rate has indeed hit highs not seen in three or four decades – 7.5% at the last assessment. It is important to note that this is the only inflation we have seen in that period and it is important to understand why we are seeing it now. For the better part of the last four decades the US was able to essentially export inflation. This is what globalization was all about. If one was facing higher labor costs and higher production costs the easiest response was to either produce or source overseas where the costs were dramatically lower. Over the last few years, the appeal of globalization has faded somewhat as the costs have risen in these overseas markets at the same time that companies have started to shift back to the US to deal with the supply chain chaos. Then there are the usual culprits when it comes to the inflation issue – everything from higher commodity prices to the additional costs imposed by the supply chain breakdown and the higher costs of labor.

The three primary drivers of inflation include commodity costs, the cost of labor and the presence of too much money in the system. The money supply issue was a major factor last year as there was a significantly larger pool of savings than usually exists. The stimulus effort dumped the equivalent of the Japanese GDP into the hands of consumers at the very same time they were cut off from the places they generally spent their money. That cash just sat there for the bulk of the year and fed inflation. Today the majority of that cash has been drained from the system and that leaves the costs of commodities and wages. The price of commodities will always be volatile and will rise and fall with demand and production. Right now, the producers are still behind demand but will catch up in the months to come. Wages are the biggest threat now as once these labor costs rise, they do not easily come down.

The supply chain has been broken for the last two years and is only slowly recovering. There have been traditional issues as well as unique problems. The major factor has been that demand has outstripped the capacity to meet that demand. The recovery in 2021 was far more aggressive than anyone had expected and producers were unprepared. They are starting to gain ground and by mid-year they are expected to have caught up with the majority of current consumer demand. The primary issue now is China. The shipping congestion is at the origin ports rather than at the destinations in the US. Production has been severely affected by the pandemic and the Chinese “zero tolerance” approach. It is assumed the Chinese will gain control of this production sooner rather than later and the latest data shows they are starting to return to normal.

This leaves the stickiest part of the inflation issue and the most consistent challenge manufacturers have faced over the last few decades. Labor has been at the top of the list of worries for a variety of reasons. There has been a skill shortage for years, too many retirements of key workers and now there is the surge in wage demands. Skilled workers have more leverage than they have ever had and the number one means by which companies are expanding their workforce is by poaching from one another. That tactic means paying people more and paying existing workers more so they will not be poached. Labor costs soared by over 5.0% last year and these costs are heading in the same direction in 2022.

New Automobile & Light Truck Sales

The situation simply does not get much better for the automotive sector. The shortages of chips and other parts continue to interfere with production and that will likely continue for months to come. The shortages are affecting the entire upstream and downstream systems as the suppliers to the OEMs are as short of parts as the assemblers. The reactions to this supply chain fiasco have been consistent but it will take time to correct. There are chip manufacturing facilities in development in the US but it will be months before that production makes a dent. The makers overseas are racing to catch up but demand continues to overwhelm capacity and the issue of transportation still inhibits. There are millions of parts and assemblies that have been produced but are now stuck in transit. The crux of the issue is now in the producer nations as opposed to the destination nations. China has been hampered as far as output is concerned and that same issue has been affecting other suppliers in Asia. The best guess at this stage is that production levels will improve by mid-year at the earliest.

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Since 1999 “The Monty” has been publishing annually a list of the largest commercial heat treaters in North America based upon annual sales, our 2021 list can be found at https://themonty.com/articles/50-largest-north-american-commercial-heat-treats-2021-2/ This year readers will see we became much more ambitious and expanded the list to the 50 largest. In our 34th spot we have Byron Products, Fairfield, Ohio.

Founded in 1982 by Mark Byron in a 1 car garage, Mark has grown Byron into a very significant player in the Thermal Processing Industry in North America. The NADCAP approved company offers brazing, heat treating, welding and coatings all with a strong emphasis on the aerospace industry. The company operates out of 2 facilities in Ohio.

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Since are incorporation in 1969 WG Montgomery Ltd., (The Monty Heat Treat News) has accumulated 1000’s of photos of various captive and commercial heat treaters around the world. Today we are reaching into our archives to find one of the most memorable locations we have been lucky enough to visit, Gruppo T.T.N. in Northern Italy (the notes below date back to 2019 when “The Monty Heat Treat News” team had the chance to visit, our summary is below). While there are many things about Gruppo T.T.N. that stick in our minds far and away the most remarkable was the pit nitrider installation shown in these photos. The sheer size of the furnaces and the size of the pit required was truly impressive, why the pit is actually larger than the one at the old Bodycote, Melrose Park, Illinois facility.

“January 2019; Gruppo T.T.N./Italy. Last week we had the chance to visit commercial heat treater Gruppo T.T.N., at their headquarters in Nerviano, Italy which proved to be a rather interesting experience. The family owned group consists of 9 locations, all in northern Italy with a total of 500 employees-now 9 plants and 500 employees would rank the company as one of the largest commercial heat treaters in Europe and even the world for that matter.  As far as we can tell there are no processes the company does not have-Induction, Vacuum, Salt, Gas & Plasma Nitriding, annealing, Quench & Temper, Vacuum Carburizing-there is literally not a process we can think of that the company does not have. The only common denominator would appear to be that the company focuses mainly on large parts, however since they also have belt furnaces even this statement is not entirely true. In the lobby there is a rather interesting photo and certificate dating back about 15 years. The certificate of achievement is from Boeing and emphasizes the company’s contributions to the Nasa Space missions when they heat treated components for fuel tanks for rockets, a contribution which required a Boeing team to be on site for 6 months. Mr. Pirovano who founded the company back in 1978 and who is still very active turned out to be a very friendly and open fellow who allowed us to take photos of the entire plant-some of the results of which you can see below and are far more interesting than our scribblings.”

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On a regular basis “The Monty Heat Treat News” features articles from Josh Hale of International Search Partners about what those in the heat treatment industry can expect to get paid-past articles can be found at What Do Those in the Commercial Heat Treat Industry Get Paid? | The Monty and OEM’s (Furnace and Oven Manufacturers) Salary Guide | The Monty In his unique position as part of the largest organization in North America recruiting individuals into the heat treat industry Josh’s knowledge about salaries is second to none. With all the turmoil in the labor market these days we reached out to Josh for an update about how salary expectations and hourly labor rates had changed in the past year.

The result are these very knowledgeable thoughts, read on.

Heat Treat Salary Analysis 2022 (written for the Monty)

ISP’s Heat Treat Salary Guides have historically been updated every few years, but even though the latest versions were just published during Summer 2021, A LOT has changed in just the past few months.

Record high inflation, “the Great Resignation,” lingering COVID-19 concerns and a surge in early retirements are just a few of the factors causing a shift to an extremely employee-driven hiring market that has spurred across-the-board wage increases.

What follows is a brief snapshot of how salaries have changed for the most common job titles for a commercial heat treat or furnace OEM between July 2021 and February 2022:

Furnace Operators – Every commercial heat treat is hurting production hourly workers right now. Whereas operators have seen their rates increase from the low teens to the low twenties over the past few years, averages have risen to $25+/hr with availability for OT in the past few months.

Field Service Engineer – The demand for FSEs is such right now that an experienced service engineer willing to travel extensively can truly have their pick of offers. Pre-pandemic compensation for these road warriors as solid in the mid-$30’s per hour and up to $100kish with OT, but nowadays strong techs can demand and get upwards of $40-45+/hr (especially for those with strong PLC skills). This is a great field to enter for young people looking to start their career as the need for quality candidates is showing no sign of slowing down.

Maintenance – One reason why FSE comp has risen so much so quickly is because of the allure of becoming an onsite maintenance mechanic or manager with less travel. These positions have seen offers for employment go from an average of $30/hr to closer to $40/hr, with those experienced folks who are willing to take supervisory responsibilities or undesirable shifts garnering upwards of $50+/hr.

Quality Engineer/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 ranges shifting from $65-110k up to $70-$125k and above.

Engineers – OEMs hiring engineers are needing to pay salaries with an uptick of 15-25% over the past 6ish months, with electrical engineers, and especially PLC and controls programmers, tending to be able to demand the highest wages (more than mechanical designers). These technical professionals are averaging $65-75k or more with 0-3 years of experience and up to the mid-$100ks for extensive industry experience or niche expertise.

Sales Engineers – Unlike most other job functions, base salaries for those in sales has been relatively stable, with more “normal” cost-of-living and inflation adjustments. However, in this hot market, many of the best performers are hitting record commissions and bonuses, so, to attract new talent, companies are offering more perks and non-salary comp like work-from-home, car allowance and extra PTO.

Plant Managers and GMs – Most of the increased demand for new hires has been more at the hands-on level and less so for management. Therefore, the top of the pyramid has seen less of marked increase than some of the other roles, but still factoring inflation and general rising of all wages, PMs and GMs have seen 10-20% bumps in overall comp thus far this year versus last.

As companies struggle to compete for talent during these unprecedented times, rising salaries are being used as the “carrot” to lure new employees and retain existing ones. To stay relevant, owners and managers need to re-evaluate their comp plans and budgets to see where an appropriate investment can be made. Remember, turnover is costly, as is losing out a potential strong hire to the competition.

Workers should consider this an opportune time to either ask for a raise or consider making a career move. Either way, it’s always a good idea to track one’s accomplishments and keep an updated resume on hand. While the overall market may be hot, it is the top performers with a proved track record who deserve to and will be rewarded.

This salary information has been culled together based on data International Search Partners (www.internationalsearchpartners.net) has collected from over 20 years of providing search and placement solutions exclusively to the heat treat industry. There are many variables to consider, and things shift rapidly under current market conditions, but this guide provides a solid, accurate baseline of information and is meant to be used as a reference point for employers and employees alike.

For specific salary questions, or to inquire about more about recruiting services, please contact Josh Hale at [email protected] or 619-828-1040.

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