More Manufacturers Bringing Heat Treat In-House?

Over the past few years the team at “The Monty Heat Treat News”has noticed a slow but steady trend amongst European manufacturers to bring more of their heat treatment requirements in house, this pereception was reinforceed during a recent visit by “Gord Montgomery” to several European captive heat treaters.
 
This “perception” led to a conversation with “Mr. Marco Baretti” of vacuum furnace builder “TAV” who wholeheartedly agreed that this was a growing trend-the result is this article.
 
Could this be a growing trend in North America also? Certainly many (although not all) of the reasons that Marco suggests are leading European companies down this road are applicable to North America also.
 
This brings up another point also-if more manufacturers are bringing vacuum heat treatment in house does this apply to atmosphere heat treating also? Initial indications would not suggest this for a few reasons. As an example, Vacuum heat treating is clean, very repeatable and has a relatively small footprint, this is not the case for a batch IQ (Sealed Quench for our European readers) furnace. “The Monty” will stay on top of this interesting trend and provide updates and examples as they come up.
 

“In the heart of Europe’s industrial landscape, a quiet revolution is underway. Small and medium-sized enterprises (SMEs), known for their agility and specialized production, are increasingly opting to internalize their heat treatment processes, specifically through the adoption of vacuum furnaces. This decision, often defying conventional cost-effectiveness analyses, highlights a strategic shift driven by unique operational needs and bolstered by supportive European Union initiatives.

 
Historically, heat treatment, a crucial process for enhancing the mechanical properties of metals, was outsourced to specialized service providers. However, for many European SMEs, particularly those dealing with high-value components requiring precise control and short lead times, this model presented significant challenges.
 
The Peculiar Needs of European SMEs:
 
· Short Lead Times: In today’s fast-paced manufacturing environment, delays can be costly. Outsourcing heat treatment often introduces unpredictable lead times, disrupting production schedules and impacting customer satisfaction. SMEs, especially those operating in niche sectors like aerospace, medical devices, or high-performance automotive, cannot afford such delays.
 
· High Quality and Precision: Vacuum furnaces offer superior control over temperature, atmosphere, and cooling rates, resulting in exceptionally high-quality heat treatment. This is critical for components requiring precise metallurgical properties and minimal surface contamination. SMEs producing intricate parts with stringent quality requirements find in-house vacuum heat treatment a compelling solution.
 
· Confidentiality and Intellectual Property: Outsourcing sensitive manufacturing processes raises concerns about intellectual property protection. Internalizing heat treatment allows SMEs to maintain control over their proprietary processes and designs, safeguarding their competitive edge.
 
· Flexibility and Customization: SMEs often deal with diverse product lines and varying production volumes. Having an in-house vacuum furnace provides the flexibility to adapt to changing production needs and customize heat treatment processes to specific requirements.
 
The Role of European Union Incentives: The European Union, recognizing the strategic importance of advanced manufacturing capabilities, has introduced various initiatives to support SMEs in adopting innovative technologies. These incentives, including grants, subsidies, and tax breaks, have significantly lowered the financial barriers associated with investing in vacuum furnaces.
 
· Reduced Capital Expenditure: EU funding programs can offset a substantial portion of the initial investment in vacuum furnace equipment, making it more accessible to SMEs with limited budgets.
 
· Enhanced Competitiveness: By supporting the adoption of advanced manufacturing technologies, the EU aims to strengthen the competitiveness of European SMEs in the global market.
 
· Sustainability and Energy Efficiency: Modern vacuum furnaces are designed with energy efficiency in mind, aligning with the EU’s sustainability goals. Some incentives are specifically geared towards promoting energy-efficient technologies. Furthermore, vacuum furnace processes generate no direct carbon or CO2 emissions.
 

Typical In House Heat Treat Department

The Economic Reality: While the upfront cost of a vacuum furnace can be substantial, the long-term benefits often outweigh the initial investment. Without the EU incentives, many of those investments would have been economically unsound.

 
· Reduced Logistics Costs: Internalizing heat treatment eliminates the costs associated with transporting parts to and from external service providers.
 
· Minimized Rework and Scrap Rates: The precise control offered by vacuum furnaces reduces the likelihood of defects, minimizing rework and scrap rates.
 
· Increased Production Efficiency: Shorter lead times and improved process control translate to increased production efficiency and faster time-to-market.
 
· Long term control of quality: By having the process internal, the company can have full control over the quality.
 
The Future of In-House Heat Treatment: The trend of European SMEs internalizing vacuum heat treatment is expected to continue as technological advancements make these systems even more efficient and affordable. As the demand for high-quality, customized components grows, in-house vacuum furnaces will play an increasingly vital role in maintaining the competitive edge of European SMEs. The support provided by the European Union is a key catalyst, accelerating the adoption of this strategic manufacturing capability and contributing to the long-term prosperity of the European industrial sector.
 
The Role of TAV; Further underscoring the importance of accessible vacuum heat treatment technology, TAV plays a proactive role in supporting businesses transitioning to or optimizing their in-house capabilities. Recognizing the challenges that companies face when adopting new technologies, TAV has invested in an internal R&D Lab. This state-of-the-art facility is now equipped with a comprehensive array of four vacuum furnaces, each with distinct sizes and process parameters. This diverse capability allows us to directly assist both existing and new customers across a wide range of applications. From collaborative development and seamless transfer of novel heat treatment technologies to the meticulous fine-tuning of their existing processes, TAV’s R&D Lab serves as a valuable resource. By providing this support, TAV actively contributes to minimizing the inherent risks and significant costs traditionally associated with the adoption of new vacuum heat treatment technologies, empowering businesses to embrace this strategic manufacturing advantage with greater confidence.
 
Furthermore, considering the cost of employing a metallurgist or process engineer alongside the direct cost of internal R&D, the financial burden of supporting and developing new technologies can become prohibitive for many companies. By offering its expertise and extensive R&D capabilities, TAV enables the growth of new technology within these companies at an affordable price.”
 
Sincerely Mr. Marco Baretti, Sales Area Manager, TAV VACUUM FURNACES SPA, [email protected]
 
Did you like this article? Click here to subscribe to The Monty.
 
View our recent magazines and podcasts by clicking the following link. https://themonty.com/magazine/
“Gord Montgomery, Marco Baretti”