Financial Performance. Understand your customer's needs and develop products and services that meet those needs. Executive Summary ; Metal Fabricators™ is a welding and fabrication business with expertise in the production of a variety of building equipment and accessories. “With everything that has changed over the last six months, now everybody really is being able to focus more on cost,” Abfall said. The rise of automationhas no doubt changed the nature of many industries including metal fabrication. 1. After almost doubling the manufacturing square footage over the last four years, the company has achieved a comfortable production rhythm. Irrespective of the power or condition of your management, large-impact hazards can take a toll on any kind of business. Steel fabrication is a segment of the overall metal fabrication industry. He lives with his wife and two children in Crystal Lake, Ill. Sign up and be the first to know about the latest industry news, products, and events! However, it can sometimes be very challenging. Amerequip struggled to keep up with work, and if it were to continue its successful pattern of year-over-year growth, it needed to reduce employee turnover and straighten out some of its processes. Benefits & Drawbacks of a Structural Steel Fabricators Business Acquisition. They joined the company’s two hydraulic press brakes. Abfall said the company has been able to take out about $5 million worth of inventory. Enjoy full access to the digital edition of The Additive Report to learn how to use additive manufacturing technology to increase operational efficiency and improve the bottom line. Fudging the numbers is the equivalent of sabotaging your steel fabrication business's strategic interests. In the near term, Heus said the focus is on looking at automation that might be able to assist with parts sorting after skeletons are unloaded from the laser cutting bed. Marketing and Sales strategy We at SW totally understand that satisfied customers will aid our business by referring our company to other clients who need our services. That business model still exists today as it builds familiar items, such as backhoes, and newer products such as mower decks and snow blowers for skid steers. The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. The company was renamed Arps Corp. in 1952 and ultimately Amerequip in 1983, following an ownership change. In fact, according to data from the U.S. Bureau of Labor Statistics, the metal fabrication industry is projected to add 12,000 jobs to the sector over the next 10 years. “People want time, and it’s even more so now than it was 15 years ago. In my experience, people used to want more overtime. Around the same time the laser cutting system was being installed, the fabricator also upgraded its bending capabilities with two SafanDarley servo-electric E Brakes, one that is 40 tons and the other which is 120 tons. $1,151,279. Today the payoff is evident. Steel fabrication involves the building and making of structures with steel through cutting, bending, and assembling. Sheet thickness can run anywhere from 20 gauge to 1 inch, but a majority of the steel being processed through the laser system is 0.375 to 0.25 in. It added a weekend shift at the Kiel facility, something that Abfall said he had never done before. (A monorail runs the entire length of the system to insert and retrieve “cartridges” of raw material.) By then it had its original manufacturing facility in New Holstein and a newer facility in nearby Kiel. Green means the machines are doing their jobs. The company raised its starting wage to more than $15 per hour. It calls for sheet metal fabrication, product design expertise, as well as business contacts in the fast-growing niche of commercial touchscreen displays. Take the … For instance, if an assembly cell requires 100 parts per day, six totes with 25 parts in each might be staged nearby, providing the cell with a day and a half of product. Additionally, working with one weldment that is delivered to final assembly instead of having to laser-cut and weld the 11 pieces to create the same thing is always going to be helpful in streamlining assembly and meeting on-time delivery goals. Growing a fabrication business Graniterra relies on customer service and the best technology to continue steady expansion . The variety offered by metal fabrication businesses, brings a lot to the table when it comes to matching market supply and demand. And that goes for the metal fabricating companies looking to hire a salesperson or just looking to modernize their sales approach. Everyone at Amerequip has had a chance to catch their breath and even sit down for an interview with The FABRICATOR. That’s a pretty good place to be if you’re in the business of using thin metal strips, TTM May 2018 Revenue. Amerequip has 10 robotic welding cells. I need a partner to setup a welding & steel fabrication business. Know your customers is the basic rule for any or all business. This is a business that relies heavily on innovation. Please fill out this form and we will get in touch with you shortly. According to Fijek, Nu-Way has all of this, which will make this display business a key part of its growth strategy. The fabricator is growing because it has figured out what makes it special and how to maintain that with expansion and new blood entering the organization. After almost a year of back and forth and finally testing, a new casting will make its debut in a 2020 backhoe product. “But it’s really changed. However, human resources was posing a problem. Amerequip has the pretreatment bath; an e-coat tank; two paint-application booths with automated, reciprocating guns; and manual touchup areas for complex parts that didn’t receive complete paint coverage in the automated booths. 2021 metal fabrication forecast: The road to recovery continues, Die Science: Finding the root cause of stamping failures, Ask the Stamping Expert: How to start using tool coatings, Engineering Angle: Draw bead restraining forces in sheet metal drawing operations, Stamping in an EV World: Gestamp’s innovative approaches to forming EV components, Aluminum Etc. (Amerequip President and CEO Mike VanderZanden told the Milwaukee Journal Sentinel in October 2018 that the company had turned away about $10 million in business because it couldn’t hire enough people.) Like many other metal fabricating operations, Amerequip would like to get more productivity out of its welding department. The fabricator also has a pretreatment system, installed in 2017, in which all parts are processed. If Amerequip wanted to keep growing, it had to make some changes. Professional Welding Workshop. The fabricator has 10 Lincoln Electric welding cells with FANUC robots. “Those companies that are promoting their business, following the sales plan, and keeping track of where they are, are growing,” he said. Red means laser cutting has come to a halt for some reason. He has written about U.S. manufacturing trends and issues for more than 20 years. Fabrication shops could be employed by contractors, OEMs and VARs in … Heus said the consistent and high-quality parts coming from the fabrication department help with this place-and-go approach to robotic welding. The bath allows Amerequip to cut with oxygen as the laser cutting assist gas instead of the more expensive nitrogen, which many other fabricators use to avoid the oxidized edges that come with oxygen-assisted laser cutting. $7,394,379. It has about 70 welders. Amerequip now employs 385 people, with 285 of those being hourly workers. The company had followed this approach for almost the last four years. The challenge was a culture of always trying to fulfill customers’ wishes. 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Until 1983 the manufacturer had mainly focused on its own line of products, which included medium-duty backhoes for compact utility tractors, front-end loaders, front and rear blades, and post hole diggers, which had been marketed through distributors and dealers. The acid bath removes the oxidized edges and slag from the laser-cut parts. Easily access valuable industry resources now with full access to the digital edition of The WELDER. With its capital equipment investments over the last couple of years, the company won’t have to worry about laser cutting or bending being its bottleneck. Our specific choice of target markets at SW is based on an in-depth understanding of our prospective customer’s needs.We believe that our skills and capabilities will allow us to very well compete and develop our reputation within our business area. As of 2018, Amerequip had six Mitsubishi CO2 laser cutting machines attached to a River automated material storage and retrieval system that keeps the equipment constantly supplied with sheets to be cut. Megan R. Nichols. Easily access valuable industry resources now with full access to the digital edition of The FABRICATOR. If yes, starting a welding business … Construction companies require steel in various shapes for their work which means that there is almost always a steady demand for a specialist in the steel fabrication business. Generating new business by growing your customer base is important to your business success. Holes and mating features are now machined into the casting, instead of laser cutting them early on, which allows for tighter tolerances and more accurate assembly. In this case, the business is more about fabricating and building products. Inquire today about this profitable and growing steel fabrication business for sale! Work continues to introduce more just-in-time programs with vendors, so more improvement in this area is likely. It enables the rotary … Abfall said that, in combination with finding nearby partner companies that can assist with fabricating, welding, and finishing tasks when job orders exceed capacity, stabilizing the employee turnover has proven beneficial in allowing the company to focus on internal improvements, which ultimately leads to more efficiency on the shop floor. Also offers custom fabrication of products as subcontractor on major regional projects as well as one-off design and fabrication of products as diverse as farm and ranch, Bar BQ, trailer applications and much more. Nov 26, 2019. Metal fabrication business planning should always include contingency measures in the event unanticipated risks arise. Expanding your shop may not be easy, but it’ll be well worthwhile for you and your employees committed to its growth. New online metal fabrication services business owners often find that running an online business is more labor-intensive than they expected. An overhead crane moves the raw stock from trucks at the nearby dock in the rear of the building to the loading point for material storage. In addition to the 71,000-square-foot welding shop expansion in 2014, Amerequip added an 83,000-sq.-ft. addition in 2016 to house its laser cutting and bending operations. But the metal fabricating industry is not dominated by companies that take it easy. This 15-tower, 200-shelf automated raw material storage and retrieval system supplies six CO2 laser cutting machines with a consistent flow of sheet metal. Another aspect of this process is to investigate more cost-efficient ways to fabricate parts for customers—even if the part is not being welded by Amerequip. Creating a First-Rate Steel Fabrication Company Business Plan It's virtually impossible for your steel fabrication business to succeed without an effective business plan. Change is a constant in the steel and metals industry and fabrication businesses need to be able to keep up or risk becoming obsolete. Continental Steel has established itself over the years as a company whose specialty is sourcing hard-to-find metals. Promote Your Drawing Service ; Does your company offer a Tekla drawing service, if yes, promoting it will help you to get an edge over your competition. And more would be needed. Here is a sample business plan for starting an iron and metal fabrication company. Once establishing your own metal fabrication shop, learning new ways to grow your business and introduce new clientele will be imperative to your success. There’s no guarantee that these and other improvements will get Amerequip to its goal of $150 million in sales by 2023, but all of these recent changes create a solid foundation from which to make a solid go of it. One of its current projects is looking at existing parts that are manually welded to determine which might be good candidates to move over to the automated welding cells. In the metal fabrication business, everyone would rather be busy than slow, but that doesn’t mean it’s easy. It is expected to grow at a rate of 3% annually, reaching USD $21.38 billion by 2024. After new ownership came in, the fabricator turned its focus to building products for OEMs and taking on more contract manufacturing work. The first way to quickly grow your business is by building a sales funnel. When it comes to the metal fabrication sector, the good news is that things are currently experiencing a growth spurt. Amerequip Corp., Kiel, Wis., wants to keep growing its business with a handful of key OEM customers. It had $55 million in sales revenue in 2016 and expects to reach $110 million in 2020. That way the shop floor is only producing parts that are destined to be used, nothing more and nothing less. Purchasing machines that are not yet cost-efficient or enlarging facilities … When other fabricators were cutting costs and postponing investments during the Great Recession, BTD Manufacturing, Detroit Lakes, Minn., was moving forward with plans to grow the business. A recent award-winning cast part is a good example of this type of cost-saving conversation. “We want to do more for less,” he said. It even builds complete end products, such as commercial mowers. Now Amerequip has morning and afternoon shifts that run 10 hours each, Monday through Thursday, and a weekend shift that comprises three 12-hour days, Friday to Sunday. Whether you are selling a physical product or a software-based service, knowing your target audience will definitely give you an upper hand. We at SW plan to serve the metal fabrication market segment. Right now the welding department is at about 50 to 60 percent utilization, according to Abfall. Heus added that the CO2 laser technology really makes sense for the material mix that Amerequip cuts on a regular basis. When a company is making end products, fabricating large assemblies, and preparing kits for major OEM customers, it has to have its assembly process down. It then flows through welding and finishing before arriving back in assembly. The absolute first thing you should do is create a metal fabrication business plan. The exercise is bearing some fruit after only a few months. A Quick Guide to Building a Successful Metal Fabricating Business. It’s evolved.”. “Within the last year, we have become more proactive versus reactive. Voice of the Customer – Know the Customers to Grow Your Metal Fabrication Business. Email * Phone * City * State * For this opportunity our client is asking for a little … 1. The press brakes are able to hold angle tolerances of 0.5 degree. MC Machinery Systems supplied the laser cutting machines and the material handling system. The end result is that the welding department is getting a lot better set of parts to join. Accuracy and an eye for detail count when writing a business plan. Then the fabricator made a major shift in its work hours. Here are some practical tips to help you grow your customer base. We learned the importance of “partnering” early on. It's foolish to make important metal fabrication services business decisions without carefully assessing the risks associated with each option. Since metal fabrication isn’t the usual run-of-the-mill kind of business that anyone with capital can start, it requires a thorough understanding of both the fundamentals of metal fabrication and business strategies. Another area of focus is perhaps creating one part load-off area instead of separate ones that dot the large assembly area. As robotics technology continues to improve, automation is one of the trends that businesses in the metal fabrication industry are set to embrace in the coming years. That accuracy, along with the precise cuts delivered by the laser, has allowed many parts to bypass the machine shop, which was not the case about three years ago. The finishing department, where parts move from welding, is another area where the operations team will be working to streamline product flow. The cylinders are made at the company’s New Holstein, Wis., facility. The tooling setups can be done quickly because of the Wila tooling design, and software that simulates the bend process in 3D helps the operator to see what is about to happen instead of having to visualize it on his own. I have approximately 8 yrs fabrication experience. These totes are at the heart of Amerequip’s approach to manufacturing flow. Again, the goal is to have the right amount of purchased parts at the right time. Enjoy full access to the digital edition of STAMPING Journal, which serves the metal stamping market with the latest technology advancements, best practices, and industry news. You can proceed using the following steps: Create a Business Plan: It is impossible for your metal fabrication unit to succeed without a business plan. All Rights Reserved. Employees that work the weekend shift get paid for 40 hours. To fill up the talent pipeline, the fabricator is looking to strengthen its partnerships with local high schools and technical schools. (E-coat, short for electrophoretic coating, is known for its corrosion-resistance abilities. Abfall said that the company has committed to doing a better job in internal posting of jobs and communicating about opportunities. With the labor situation somewhat settled, attention is now being turned to optimizing the robotic welding effort. It's just as easy to get a first-rate piece of business as a second-rate one. Be sure to highlight your turn around period and if the service is free to customers. Amerequip is taking the same approach with its vendors, encouraging them to more actively manage their delivery of products. To do that, it can’t afford to supply assemblies and end products that don’t meet customer expectations. It’s also giving thought to how might be the best way to stage product for shipping to customers. He has been with the publications since April 2002. System supplies six CO2 laser cutting has come to a halt for some reason length of the WELDER forth finally... 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