From US commercial heat treater Hi TecMetal Group (HTG) we have this press release about a plant consolidation. Want to know how HTG compares in size to other North American commercial heat treaters? The most complete list in existence can be found at “https://themonty.com/project/
“To better serve our customers, HTG is reducing operating costs by consolidating two of our manufacturing plants. Our Brazing & Metal Treating Division, East 55th Street, Cleveland, OH is moving into our larger and more modern, Lakeland Blvd, Wickliffe, OH facility.
– Our objective is to increase efficiency without impacting customer service or process integrity.
– The equipment, people and processes will largely remain unchanged.
– Customers will be individually advised when the location change will affect their particular items.
Beginning in 2018, we developed a plan to consolidate these operations, maximize benefit, and minimize operational risk and cost by:
– Analyzing and comparing financial and operational impacts of consolidation into each of the locations
– Summarizing the economic impact of the consolidation
– Creating a detailed floor plan for the consolidated plant layout that minimized reconfiguration of existing operations
– Developing an implementation plan to support the physical move while mitigating potential risk that defined timelines and ownership for each activity
– Baselining the current performance of the two plants to understand production processes, current and projected volumes/mix, cost performance, capacity/utilization, labor, infrastructure, supporting capabilities, etc.
– Assessing risks and developing a proactive risk mitigation plan
Cole Coe, President, stated, “This consolidation is logical because both plants perform thermal treatment processes. This measure will enable us to take another step towards an optimized and cost-efficient group structure, enabling us to focus on areas where we can achieve a sustainable market position with innovative and leading processes. This will result in a better customer experience for current and future customers.”
Phase 1 Consolidation is completed, with the first of five continuous brazing furnaces moved and producing parts. The total consolidation is expected to be completed by November. 30th.”
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The VAB furnace on order is intended for vacuum brazing aluminum components. This furnace has one of the most innovative designs in Europe. Its unique design was based on detailed guidelines and the needs of the customer, which makes it a customized solution.
“We are always pleased with custom solutions, because they help us to grow, inspire and develop – both our company and our technologies. This project for sure was a challenge for the entire SECO/WARWICK team, as our partner’s assumptions in terms of the requirements for our furnace were really elevated. They were related to very complex and individual solutions in terms of automatic loading and transport of parts, along with a highly dynamic increase and precise control and uniformity of the temperature distribution”
– said Maciej Korecki, Vice-President, Business Segment Vacuum Heat Treatment Furnaces, SECO/WARWICK. What is characteristic of this solution is that it includes an extensive pumping system having an impressive capacity and delivering extremely high vacuum. The device is connected with a dedicated cooling station which significantly increases the performance of the system.
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Today we have a real treat for you as our host Mr. Carlos Torres talks pusher furnace vs batch IQ furnace with Mr. Fred Hamizadeh who is in charge of heat treatment for one of the largest in house heat treaters in the world, American Axle & Manufacturing (for a few more details about heat treating at AAM we would refer you to the brief article below which was posted to “The Monty Heat Treat News” in early 2020 shortly after a visit by “The Monty” team to the AAM facility in Guanajuato, Mexico). To find out where Fred ranks on our list of the “Most Influential People in the North American Heat Treating Industry in 2021” please follow this link; 40 Most Influential People in The North American Heat Treating Industry 2021 | The Monty
Pusher vs Batch | Fred Hamizadeh | THE HEAT TREAT PODCAST #34 – YouTube
“April 2020 Posting. American Axle & Manufacturing-Guanajuato Manufacturing Complex Mexico; Any list of the largest captive heat treaters in North America would have to include auto and truck component supplier American Axle & Manufacturing (https://themonty.com/articles/10-largest-north-american-captive-heat-treaters/) In terms of sales the company reported $6.53 Billion USD in 2019, in terms of the amount of heat treating we can’t even guess. We know AAM has large heat treating departments in a number of locations around the world including the US, Mexico and Poland but what that translates into in terms of number of furnaces is anybody’s guess (although one of our favorite heat treaters, who is also one of the most influential in North America, Fred Hamizadeh of AAM would certainly know https://themonty.com/articles/25-most-influential-people-in-the-north-american-heat-treating-industry/ )
This all takes us to the AAM Manufacturing Complex in Guanajuato, Mexico which we visited last week. The complex includes several different facilities and several different heat treat departments. We are very constrained in what we can say and photos were an absolute no-go but we can at least give a broad summary. What we saw were multiple large pusher furnaces, numerous batch IQ furnaces and generators with a couple of large mesh belts thrown in. The equipment ranges in age from older right on up to almost brand new and all of it is in immaculate shape with state of the art controls.”
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Cherry Valley, ILLINOIS (October 20, 2021) – During the Metal Treating Institute’s Fall Meeting, Ipsen along with several other vested organizations presented donations to support the MTI Educational Foundation, which provides scholarships for the next generation of heat treating industry professionals.
“Education is crucial to bridging the workforce gap in our niche industry,” said Ipsen USA President and CEO Patrick McKenna. “Investing in the future of heat treating is important not only to Ipsen, but to our customers who will rely on our expert support for decades to come.” The MTI Educational Foundation has granted 37 scholarships totaling $186,000 since 2017. This year they raised $45,000 at the Fall Meeting. One of the main goals of the foundation is to support education related to the advancement of the heat-treating profession and the adjacent industries it serves.
“The MTI Foundation is playing a key role in attracting the next generation of heat treaters by awarding scholarships and following up with the young people during their educational journey,” said MTI Educational Foundation Chair Buster Crossley. “As every industry is challenged to find labor, the Foundation is using its resources to connect graduates with career opportunities.” Scholarship recipients are students pursuing careers in engineering, metallurgy and industrial sciences.
“The scholarship helped me gain valuable connections and experience in heat treating that led to job opportunities while still enrolled at Penn State,” said past recipient Thomas Pease. “I believe the future of the industry is bright. I look forward to being part of the growth of the industry and am extremely thankful to be one of the recipients of this award.” During this three-day gathering, attendees also participated in sessions on various topics including labor market conditions and supply chain challenges.
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Each year, at their Fall Meeting, MTI recognizes the supplier within their membership who has exemplified the highest levels of support and service to MTI members and the Institute with their expertise, service and commitment to the mission and objectives of the Metal Treating Institute.
ATP has played an instrumental role in delivering their expertise as a supplier serving MTI members and heat treating industry. MTI Awards Chair, Jamie Jones stated at the Fall Meeting, “MTI has been able to serve the heat treating industry at the highest levels due to the support of suppliers members like Aerospace Testing & Pyrometry. The award was well deserved.”
The Metal Treating Institute, established in 1933, is an international non-profit trade association for the heat treating industry based in Hendersonville, TN with members in 40 states and 6 countries.”
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“The Monty Heat Treat News” has been lead to believe that a major North American auto parts supplier has just ordered a brand new vacuum nitrider from a German furnace manufacturer. The unit would be a big one with working dimensions of roughly 48″ X 48″ X 72″ (1200mm X 1200mm X 1800mm). The story goes on to say that delivery would be roughly 8 months, although deliveries these days can be “flexible” because of supply chain issues which is affecting every single manufacturer in the world these days. Again continuing on with this story, this would be the first of several units if things work out as they should. Vacuum nitriding by the way is a technology which is seeing significant growth in North America these days. We will keep you updated.
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It is with regret that we mention the passing of Mr. bob Friedl, founder of commercial heat treater Advanced Heat Treating in St. Marys, PA, USA.
Bob grew up in St. Marys and was a 1968 Graduate of St. Marys Area High School. He was also a 1970 graduate of the Educational Institute of Pittsburgh. He was a member of St. Mary Church of Swartwel, a Mission of St. Rapheal Church, in Eldred. An avid outdoorsman, Bob was a member of numerous local sportsmen’s and outdoor clubs including QDMA, NWTF and the NRA.
Bob had retired in 1996 as the owner of Advanced Heat Treating in St. Marys, PA a business he had proudly built from the ground up. In addition to his wife Christine at home, Bob is survived by his children Denise E. Friedl of Pittsburgh, Robert M. Friedl of Freeport, PA, Benjamin Jovenitti and his wife Renee of Johnsonburg, Lance Jovenitti and his wife Stephanie of Rockton and Thomas Jovenitti and his wife Kelly of Allison Park, PA and 6 grandchildren. He is also survived by brothers Wayne Friedl of St. Marys and Dennis Friedl and his wife Julie of St. Marys and several nieces and nephews.
He is predeceased by his parents.
A Mass of Christian Burial for Robert L. “Bob” Friedl will be conducted at Holy Rosary Church, Johnsonburg on Wednesday October 20, 2021 at 11 AM with Fr. David Wilson, Pastor of Holy Rosary Church and Fr. Tom Brown, Pastor of St. Rapheal Parish concelebrating. Interment will be in Holy Rosary Cemetery and will be private. Friends will be received at the Anthony F Ferragine Funeral Home and Cremation Services Chapel 401 Chestnut Street Johnsonburg, PA Tuesday from 6 to 8 PM. Due to the ongoing concerns over the COVID-19 virus, the family requests that anyone attending the viewing or funeral please wear a mask. Share your condolences at www.ferraginefuneralhome.com”
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The Industrial Heating Equipment Association (IHEA) economic reports always make for fascinating reading as a summary about manufacturing (and consequently heat treating) in North America.
Through the first part of this year the economy was booming at a most impressive rate. The consumer was enjoying the opportunity to resume their previous patterns and there was activity in almost every sector. At the same time there was that old adage – “be careful what you wish for, you just might get it.” All that expansion resulted in a surge in inflation the likes of which had not been seen in over two decades. The “real” rate has jumped to over 5.0% and the “core” rate has been over 3.0%. This inflation rise has created concern among consumers and investors but there has yet to be a dramatic reaction from the Federal Reserve. Therefore, the questions are how long does this inflation surge last and how bad does it get before calming down?
There are many sectors puzzling over the path of inflation, but none seems to have been as sensitive as manufacturing as most of those commodity hikes have been felt here. Throughout the year the Fed has insisted the inflation rate is transitory. They assume the pace will slow and the rates will fall back to levels more familiar and the reason they make this assertion is that much of the inflation has been created by commodity prices. It has been obvious that these prices have been soaring all year – lumber was at an all[1]time high in mid-summer, steel has been up dramatically and so was copper and aluminum. These hikes corresponded with similar spikes in the price of oil. The good news is that these price hikes were a response to a demand-driven shortage as opposed to a “real” shortage.
Now that assumption has been challenged as we are now in the midst of a real energy crisis. The 500% hike in natural gas prices in Europe have cascaded through the US and the world in general. The per barrel price is now above $80 and could head higher. The shortage that creates the most difficulty is the one where there is simply not enough capacity to meet the need. A demand-driven shortage means that suppliers and producers have been taken somewhat by surprise by the demand and are struggling to keep pace. The point is that they can catch up with that demand and will.
The Fed assumed that once suppliers geared up the prices would start to fall and indeed that was the case with lumber and lately with steel as well. There is no expectation that prices will tumble back to those abnormally low levels in 2020 but they will likely be back to 2019 levels by the end of the year. The Fed has asserted consistently that this is transitory and by that they mean this is driven by demand shortages and when the suppliers catch up the end of the inflation threat will be near. If the recovery had been proceeding as it seemed to be through the early part of the summer the expectations regarding the supplier recovery would be clearer than they are now. That recovery has been thrown into question by the return of the virus threat.
This will extend that shortage situation and will leave prices high. On the other hand, the demand could utterly collapse as it did in 2020 and inflation would grind to a halt as nobody would be in a position to buy anything. Not since 2020 has there been this level of uncertainty and confusion. The Federal Reserve has not yet suggested they intend to do anything substantial to address inflation (such as hike interest rates). They have started to reduce their support for the economy – a tapering of their activity in the bond market. This will not have much of an impact on inflation at this point. The other motivators for inflation have been wage hikes and a surplus of money in the system. Thus far the wage hikes have not pushed inflation much. There has been consistent wage inflation in areas where skilled workers are in short supply but generally the workforce has not been in a position to leverage.
The money supply issue has been a concern as it was estimated there was close to $5 trillion in excess savings around the world earlier this year. That amount has declined by over half as people spent during the summer but it is still an overhang. The presence of excess cash and cheap access to loans means that people and businesses can ignore inflated prices to some degree. At the end of the day all people want to know is how high inflated prices will go and how long with that inflation last. A concise answer is near impossible to give but the best estimates hold that inflation that was supposed to reach its peak this year may keep surging into the remainder of the year and into 2022.
Opening Index Analysis IHEA’s Executive Economic Summary New Automobile & Light Truck Sales New Automobile & Light Truck Sales The frustration is shared by both the automobile producers and the potential buyers. Millions of vehicles are clogging up parking lots all over the country as they wait for the computer chips needed to complete the manufacturing process. Dozens of auto assembly plants have been idled waiting for the parts and assemblies that have been in short supply for months and there is not much change on the horizon. Demand for these vehicles remains high as consumers have the money and are now worried about future inflation but the supply chain crisis limits everybody. When does this all end and what impact will that have on sales?
The best estimates are that supply chains will start to turn towards normal no earlier than second quarter of next year. The vehicle dealers have pre-sold millions so the first allocations will be snapped up quickly. The expectation is that when the parts do show up and production resumes there will be a quick surplus situation until the consumer has time to react and start buying again. The average age of a vehicle in the US is now well over twelve years and that is the highest level seen in history. There is pent up demand and once the vehicles are available there will be plenty of eager buyers unless the inflation issues build to the point that people lack the cash to pay for vehicles when the average price is over $41,000
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In Miamisburg, Ohio, USA we see that a company by the name of Precision Impacts will be adding heat aluminum heat treat capacity; “Precision Impacts, a subsidiary of Gayston Corp., will add a new production line to its Miamisburg operations and add 41 new jobs. The company, an aluminum fabrication, finishing and assembly manufacturer, specializes in aluminum products for a variety of industries including the Department of Defense, Medical Devices, Industrial Gases and Sporting Goods. JobsOhio provided a $250,000 grant to support the company’s expansion at 721 Richard St., where it has 180,000-square-foot facility on approximately 11 acres. “This expansion required a substantial investment in equipment, infrastructure and building systems,” Andrew Sheldrick, Precision Impacts chief operating officer, said in a statement. “The support from JobsOhio allows us to move quickly to expand our production to accommodate this new contract and keep that work in Ohio.”
The $1.7 million expansion will allow Precision Impacts to produce a seamless aluminum cylinder that customers can use at home to fill balloons with helium. The cylinder will be fully manufactured in Miamisburg to include fabrication, heat treatment, machining, assembly, testing, filling, finishing and packaging. The product will ship ready for the retail shelf and it will be sold at large retail outlets across the country.”
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