Foundry Finds Ally in Valley Resource

By Brian Pedersen
May 13. 2013 8:00AM

Effort Foundry Inc. of Bath, a manufacturer that’s been in business for 40 years, marked its anniversary with an open house May 7 to showcase its newest expansion.

Photo by Brian Pedersen: Charlie Hamburg in his foundry

The event highlighted the growth the company has experienced over the years as a maker of steel castings for pumps, turbines and valves for many military and industrial applications. This growth may not have been possible, however, without the help of Manufacturers Resource Center.

The organization has helped Effort Foundry in many ways, said CEO Charlie Hamburg.

“It would be much harder to identify those areas of our organization that haven’t benefited from MRC’s help than those that have,” he said. “From ISO [International Organization for Standardization] certification, to lean manufacturing, to employee training, to software development, to succession planning, to employee benefits, to R&D [Research and Development] credits, and I could continue on.”

Collectively, Hamburg said, MRC’s help has contributed much to Effort’s success and to the jobs the company creates not only at the foundry but for its suppliers as well.

It is hard to imagine a more effective way for Pennsylvania to spend our tax dollars than to continue to support the manufacturing sector of the state’s economy through MRC,” Hamburg said.

91 EMPLOYEES
The steel castings industry took a tremendous downturn in the early 2000s, Hamburg said.

Now, however, the company is building its workforce and has 75 hourly associates plus 16 management/staff employees on the payroll.

Like most manufacturers however, the company has difficulty finding the right people who have a strong work ethic.

The production building cannot be air conditioned in the summer or heated in the winter because of the nature of the casting process, and as President William Easterly pointed out, “you can’t computerize the mold.”

But processes are getting faster and the new facility will reflect a cleaner, leaner operation.

Building on this momentum, Effort introduced its rapid prototyping process to allow projects to move from “model to metal in as little as two weeks.”

The process has been in place for almost 1 ½ years, and more than 20 castings have been produced using this rapid prototyping process, Easterly said.

150 CLIENTS
Creating impellers for pump companies is one area of business that has shown significant growth, Hamburg said.

With so many different types of castings to make, Effort has no shortage of orders to fill and creates products for about 150 companies per year.

Hamburg described the new expansion as an investment in the future.

The company recently bought two large 60-inch monitors. One monitor will go in the new building and the other in the old, Hamburg said.

The primary role of the monitors is to let personnel in both buildings know what stage of the process each job is in. It also will facilitate in setting up heat-treat loads and the processing of paperwork related to shipping and the dissemination of nondestructive testing reports to customers.

Fairly soon, customers will be able to access online the current status on each of their jobs, Hamburg said.

‘SERIOUSLY GETTING INTO MACHINING’
At the east end of the Chrisphalt Drive property, the new 9,000-square-foot building will serve as a dedicated space for machining, areas for heat treat, final blasting and nondestructive testing techniques.

With respect to the new conference room on the second floor in the new building, Hamburg said, “We see that as potentially a space that the company’s engineering staff could use when office/production space is added to the existing plant.”

“We’re probably going to buy a new lathe; we are seriously getting into machining,” he said.

One challenge facing the foundry is the lack of expected growth in the nuclear sector. Easterly said the company was geared to supply parts for nuclear reactors, but this declined after the Japan nuclear power plant disaster in March 2011.

Most of the foundry’s parts go to industrial applications for companies both large and small, including parts for Reading Bakery Systems, a manufacturer of bakery equipment, and U.S. Navy vessels.

“That market seems to have held its own; that’s maybe 10 percent of our market,” Easterly said. “There is some level of competition out there. It follows the economy, as it slows down; as it is now, pricing becomes an issue.”

Note: This is the ninth of 25 stories we’ll publish this year to highlight manufacturing companies in the Greater Lehigh Valley that have been helped by Manufacturers Resource Center, a nonprofit organization celebrating its 25th anniversary in 2013.

The post Foundry Finds Ally in Valley Resource appeared first on PA Made.

By Brian Pedersen
April 29. 2013 8:00 AM

Photo by Brian Pedersen/A worker from Insulation Corp. of America moves a block of expanded polystyrene.

Building a strong foundation with products that have thousands of uses, Insulation Corp. of America is poised to make a distinctive impact on the market.

The Allentown manufacturer creates expanded polystyrene foam, or EPS, an insulation product that looks similar to the Styrofoam it is commonly mistaken for.

The foam can be used in everything from surfboards to packaging, but what’s different is its “geofoam” capabilities for road embankments, infrastructure and construction projects, retaining wall backfills and bridge and deck fillers. The company creates material that many people do not even realize is there, yet provides immeasurable support.

Owned by sisters Cindy Masiko, president, and Sandy Posocco, ICA has a market that can vary throughout the years, but one of its consistently strongest products is geofoam, particularly for use in structurally unstable conditions, said Masiko, president.

Whenever road construction is underway, the company sells lots of blocks to fabricators, material that can be cut and shipped to any location from its Allentown warehouse.

The company ships its products along the Northeast from Virginia to Maine, as well as to Ohio and to some local businesses, Masiko said.

“We have our own fleet of trucks and our own drivers,” said Posocco, vice president of business development, noting that this is critical since their drivers know how to properly handle the products.

ICA was founded in 1981 by Thomas Higgins, whose daughters took ownership of the company over the past few years and count Manufacturers Resource Center as an essential resource in its growth and their transformation into leadership roles.

“Two years ago, I took the manufacturers leadership course that they offered; that itself was a phenomenal experience,” Masiko said. “It helped us plan strategies, gives you lots of other connections with other manufacturers. Believe it or not, manufacturing is growing.”

Masiko went through the Manufacturers Leadership Institute training at Lehigh University’s Iaccoca Institute and Posocco now is enrolled in the program. Part of the training allows participants to tour other manufacturers to see how they operate.

“We all have a common denominator and that’s labor,” Masiko said.

Finding skilled labor and people that actually want to work is a continuing challenge, they both said. Even finding workers who can read a tape measure or understand basic math is not easy.

“That sentiment is shared by many other manufacturers as well,” Masiko said.

Posocco said the company has many great, dedicated workers, but a strong work ethic is a component that’s hard to reproduce.

The company has about 35 employees and is fairly well-staffed at the plant but it expects business to pick up again as the spring construction season gets underway. ICA is looking to hire a salesperson and truck drivers, Masiko said, and the company may add another bay to the back of its Allentown facility to accommodate growth.

“I would say because the economy hasn’t recovered, our margins are smaller than they should be and competition is stiff,” Masiko said.

But since the company’s products are so versatile and can be found in everyone’s life, that market is just starting to grow in the U.S., Posocco said. Foam is much more stable than soil for road projects, she said.

The company’s foam product also can be placed beneath ice rinks, and the company recently completed its first ice rink project.

“We are hopeful that our foam will end up in the arena,” said Posocco, referring to the hockey arena under construction in Downtown Allentown.

ICA’s foam is in the Ocean Spray manufacturing/distribution site and the Bimbo Bakery site, both under construction in Breinigsville.

The EPS product is recyclable and can add points for Leadership in Energy and Environmental Design for any company that uses ICA’s products.

To further the company’s growth, ICA is finishing paperwork to get the company certified as a woman-owned business, which would help land more business, Posocco said.

MRC continues to prove helpful to ICA by keeping an eye out for available grant funding for manufacturers.

The company hired an intern last summer to help with developing ICA’s new look on its website and promotional materials, Posocco said. The intern is now a full-time staffer.

MRC knew about a grant that funded the intern position, she added.

“They definitely are a good resource for helping small businesses find funding for programs,” she said.

Note: This is the eighth of 25 stories we’ll publish this year to highlight manufacturing companies in the Greater Lehigh Valley that have been helped by Manufacturers Resource Center, a nonprofit organization celebrating its 25th anniversary in 2013

The post Manufacturer’s foam finds a home locally and beyond appeared first on PA Made.

LVB.com News Article

April 25. 2013 11:00 AM

BY ERIC STEINKOPFF

Sikorsky Concrete Products of Palmerton was selected today as the Manufacturing Extension Partnership’s national “Manufacturer of the Week.”

“This is the MEP’s way of honoring manufacturers,” said Pat Felise, MEP spokeswoman. “They look to us to suggest what companies would be good candidates [from] 59 different MEP centers” nationwide.

The National Institute of Standards and Technology’s MEP works with small- and mid-sized U.S. manufacturers to help them create and retain jobs, increase profits and save time and money.

The MEP focuses on five critical areas of technology acceleration, supplier development, sustainability, workforce and continuous improvement.

According to Sikorsky founder Peter Sikorsky, the company’s orders to both residential and commercial markets had dropped because of the sagging economy and rising costs.

The consultants helped Sikorsky identify and market to strategic growth areas while cutting overhead costs by focusing on realistic short-term and long-term goals.

“Sikorsky Concrete is a provider of premium ready-mixed concrete products and solutions,” said Jack E. Pfunder, President and CEO of the Manufacturing Resource Center. “MRC helped Sikorsky launch their first website to improve their marketability, install a ground-mount photovoltaic solar system that pays for itself, develop new eco-friendly concrete mixtures using locally sourced materials and recycle water and waste beyond what’s required by law.”

The assistance is part of a U.S. Department of Commerce program that helps with innovation strategies to process improvements to green manufacturing, as well as partnering at the state and federal level with manufacturing programs to develop new customers, expand into new markets and create new products.

“He [Sikorsky] recognized that he needed help and reached out to us,” Felise said. “We especially liked the sustainability with the ‘green’ concrete.”

www.LVB.com

Journal Article

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By Brian Pedersen | LVB.com

www.LVB.com – link to article

The post Maker of Solar-Powered Products Sees Growth appeared first on PA Made.

By Brian Pedersen | LVB.com

April 15. 2013 8:00AM

Improvements that come fast are never simple.  As companies grow and become successful, the challenge comes in staying in the game, planning for long-term growth while making sure employees gain the skills and knowledge they need to succeed in an efficient manner.Enter Manufacturers Resource Center, which has shown its support for a wide range of companies in the region, including Follett Corp. in Forks Township.

“We put a high value in making sure everyone has a development plan,” said Steven Follett, president and chief executive officer of Follett. “I think the biggest thing we can do as a manufacturer is not to be complacent. Never take anything for granted.”

The company designs and manufacturers ice making and dispensing equipment, ice storage bins and refrigerators  for commercial and indusgtrial use and has been doing so since 1948.

Follett ships its products around the world, and major Valley clients include St. Luke’s, Wegmans and the Lehigh Valley IronPigs stadium at Coca Cola Park. Follett’s ice-making machines can also be found in the employee cafeterias of corporate clients that include IBM, AT&T and Goldman Sachs.

What the company has discovered over the years is that MRC has proved valuable for supporting the company’s growth through training and lean manufacturing techniques.

The MRC participated in some of the company’s “Kaizens” (improvement projects), which emphasize how to boost productivity by eliminating waste.

Follett said one of his employees completed the “black belt” certification process and followed that with a “lean masters” certification process coordinated through MRC. The black belt certification provides skills in measuring and minimizing defects and how to eliminate waste but improve quality.

The company also has hosted sessions sponsored by MRC when speakers such as Pascal Dennis, a nationally recognized expert, consulted with Follett and about 10-12 other manufacturers on lean manufacturing processes in a two-day seminar.

In addition, Follett participates in an MRC-sponsored Lean Manufacturing Consortium, comprised of 10-15 manufacturers in the Lehigh Valley. The group meets once a quarter to discuss best practices as they relate to the lean “journey.”

EXPANSION PLANS

While MRC has been helpful mainly with training and promoting lean manufacturing initiatives, the organization also has supported Follett in the company’s efforts to identify partners it could use for various projects related to improvements in information systems and data management.

It’s the continued emphasis on improvement which has appeared to serve Follett well as it marks another expansion of its facility later this month.

The company is adding 25,000 square feet to its existing warehouse and manufacturing space and is planning to break ground on the project by the end of April. Follett said Alvin H. Butz Inc. of Allentown is doing the construction and Spillman Farmer Architects of Bethlehem is the architect, the same firm that did the work for several previous expansions.

“We’ve had a lot of growth in the past three years,” Follett said. “We have ideas about new product development.”

ADDING EMPLOYEES

The company built a plant in Gdansk, Poland, that nearly doubled in size with a 20,000-square foot addition. As its international business continues to grow, the plant will continue to service its European customers with delivery and cost, Follett said.

Follett is also adding employees to its workforce. Overall, it will have close to 400 employees worldwide by the end of the year with more than 300 employees in the U.S. The company hired nearly 90 employees over the past three years in the U.S. Worldwide, including its manufacturing facility in Poland, the company hired about 120 employees.

While the company has seen a lot of growth, Follett said, it takes time to integrate new employees and counts the MRC as a strong resource to support them in this goal.

“Overall, I think it’s nice to have the resource there if you want to network with them or engage in some training,” said Follett.

EMPLOYEES HAVE A STAKE

As one of the owners, Follett said 20 percent of the company is owned by the employees and there are some shareholders.

“All of our growth has been organic,” he said, noting that there have not been any mergers or acquisitions in the company’s history.

With a central location in the Valley in close proximity to shipping points and a strong workforce to pull from, the company plans for future growth while meeting the demands of intense, growing foreign competition and the challenges of integrating and cross-training new employees, Follett said.

The company does all metal assembly and fabrication in the manufacturing and warehouse space in the Forks site and strives to recycle as many of its materials as possible.

Not only are the equipment and processes now more efficient, but the company also strengthened its efforts at reducing the amount of bottled water in the environment.

“We push very hard to get people to not buy bottled water,” said Follett.

Note: This is the seventh of 25 stories we’ll publish this year to highlight manufacturing companies in the Greater Lehigh Valley that have been helped by Manufacturers Resource Center, a nonprofit organization celebrating its 25th anniversary in 2013.

Link to article at LVB.com

The post Ice Equipment Maker Eyes Innovative Growth appeared first on PA Made.

By Brian PedersenApril 15. 2013 8:00AM

Improvements that come fast are never simple.  As companies grow and become successful, the challenge comes in staying in the game, planning for long-term growth while making sure employees gain the skills and knowledge they need to succeed in an efficient manner.Enter Manufacturers Resource Center, which has shown its support for a wide range of companies in the region, including Follett Corp. in Forks Township.

“We put a high value in making sure everyone has a development plan,” said Steven Follett, president and chief executive officer of Follett. “I think the biggest thing we can do as a manufacturer is not to be complacent. Never take anything for granted.”

The company designs and manufacturers ice making and dispensing equipment, ice storage bins and refrigerators  for commercial and indusgtrial use and has been doing so since 1948.

Follett ships its products around the world, and major Valley clients include St. Luke’s, Wegmans and the Lehigh Valley IronPigs stadium at Coca Cola Park. Follett’s ice-making machines can also be found in the employee cafeterias of corporate clients that include IBM, AT&T and Goldman Sachs.

What the company has discovered over the years is that MRC has proved valuable for supporting the company’s growth through training and lean manufacturing techniques.

The MRC participated in some of the company’s “Kaizens” (improvement projects), which emphasize how to boost productivity by eliminating waste.

Follett said one of his employees completed the “black belt” certification process and followed that with a “lean masters” certification process coordinated through MRC. The black belt certification provides skills in measuring and minimizing defects and how to eliminate waste but improve quality.

The company also has hosted sessions sponsored by MRC when speakers such as Pascal Dennis, a nationally recognized expert, consulted with Follett and about 10-12 other manufacturers on lean manufacturing processes in a two-day seminar.

In addition, Follett participates in an MRC-sponsored Lean Manufacturing Consortium, comprised of 10-15 manufacturers in the Lehigh Valley. The group meets once a quarter to discuss best practices as they relate to the lean “journey.”

EXPANSION PLANS

While MRC has been helpful mainly with training and promoting lean manufacturing initiatives, the organization also has supported Follett in the company’s efforts to identify partners it could use for various projects related to improvements in information systems and data management.

It’s the continued emphasis on improvement which has appeared to serve Follett well as it marks another expansion of its facility later this month.

The company is adding 25,000 square feet to its existing warehouse and manufacturing space and is planning to break ground on the project by the end of April. Follett said Alvin H. Butz Inc. of Allentown is doing the construction and Spillman Farmer Architects of Bethlehem is the architect, the same firm that did the work for several previous expansions.

“We’ve had a lot of growth in the past three years,” Follett said. “We have ideas about new product development.”

ADDING EMPLOYEES

The company built a plant in Gdansk, Poland, that nearly doubled in size with a 20,000-square foot addition. As its international business continues to grow, the plant will continue to service its European customers with delivery and cost, Follett said.

Follett is also adding employees to its workforce. Overall, it will have close to 400 employees worldwide by the end of the year with more than 300 employees in the U.S. The company hired nearly 90 employees over the past three years in the U.S. Worldwide, including its manufacturing facility in Poland, the company hired about 120 employees.

While the company has seen a lot of growth, Follett said, it takes time to integrate new employees and counts the MRC as a strong resource to support them in this goal.

“Overall, I think it’s nice to have the resource there if you want to network with them or engage in some training,” said Follett.

EMPLOYEES HAVE A STAKE

As one of the owners, Follett said 20 percent of the company is owned by the employees and there are some shareholders.

“All of our growth has been organic,” he said, noting that there have not been any mergers or acquisitions in the company’s history.

With a central location in the Valley in close proximity to shipping points and a strong workforce to pull from, the company plans for future growth while meeting the demands of intense, growing foreign competition and the challenges of integrating and cross-training new employees, Follett said.

The company does all metal assembly and fabrication in the manufacturing and warehouse space in the Forks site and strives to recycle as many of its materials as possible.

Not only are the equipment and processes now more efficient, but the company also strengthened its efforts at reducing the amount of bottled water in the environment.

“We push very hard to get people to not buy bottled water,” said Follett.

Note: This is the seventh of 25 stories we’ll publish this year to highlight manufacturing companies in the Greater Lehigh Valley that have been helped by Manufacturers Resource Center, a nonprofit organization celebrating its 25th anniversary in 2013.

LVB.com

The post Follett Corp Eyes Innovative Growth appeared first on PA Made.

Economic Outlook Survey – Spring 2013

Business Owners’ Outlook Weakens for Hiring in the Aftermath of U.S. Government Actions

Pennsylvania Outlook – Spring 2013

Detailed National and Regional Findings

Key Findings:
The survey, which gauges the mood and sentiment of small and medium size business owners, found that as more owners report weak sales as their top challenge, only one in seven business owners are planning to hire in the next six months. Only two in five business owners think the federal government could take any actions that would positively influence their hiring plans.

• Only 48 percent of business owners expect their sales to increase in the next six months, similar to last fall (46 percent), but lower than a year ago (59 percent).
• Profits are expected to increase for 37 percent of respondents, down slightly from last fall (38 percent) and a year ago (43 percent).
• Only 15 percent plan to add new employees, lower than 23 percent last fall and a year ago (28 percent).

Fiscal Cliff Deal Expected to Hurt Business Finances:
Just under half (44 percent) expect the American Tax Payer Relief Act to have a negative impact on their business.

Sincerely,

PNC Business Banking

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