Fabricating a new future in Michigan

The economy of many Rust Belt states has undergone quite a transformation over recent years. These states that were so closely tied to manufacturing have had to deal with the effects of globalization. Michigan is no exception.



Michigan reportedly has lost about 170,000 manufacturing jobs since 2000. The state"s unemployment rate is among the
nation"s highest, with the seasonally unadjusted August rate for the Detroit metro area at 7.9 percent. The numbers
don"t lie, but they don"t tell the whole story either.


BLM Group USA, a supplier of tube fabrication equipment to metal fabricators, wanted to promote the other side of the story at the grand opening of its North American headquarters,
customer support center, and training facility in Wixom, Mich., Sept. 24. The company invited three of its metal
fabricating customers to share their success stories:

• Geoff Miller, Grand Rapids Chair Co., Grand Rapids, Mich.


• Ken Koster, Laser Dynamics Inc., Allendale, Mich.


• Michael G. Rickabaugh, Livonia Tool & Laser Litchfield, Mich.

Started in the mid-1990s, Grand Rapids Chair originally began as a manufacturer and seller of components to the
furniture companies of west Michigan, but the near collapse of the furniture industry in the late 1990s changed that
approach. The company decided to begin fabricating its own line of metal furniture and develop its own distribution
network targeting the hospitality industry and institutions.



The shift in business has worked out positively for the company as it has posted 50 percent growth in sales between
2000 and 2007. The company employs 66 in a metal fabricating facility and a wooden-products manufacturing
facility.



Miller credits a Dynam tube bender from BLM with changing the dynamics of its shop floor. Grand Rapids Chair has
significantly reduced work-in-process because tubular shapes can be fabricated quickly with the use of stored
software programs. Small changes in furniture are not big deals because of the CAD software. Tooling costs are not
an issue because one set of bending tools can accommodate many parts.



In one instance, Miller recalled how his company changed a chair design during a design review in two hours the night before the review.



It"s the ability to meet the customer"s demand when he wants it and how he wants it, Miller said.



Koster of Laser Dynamics has a similar story to Grand Rapids Chair"s. He and two other partners started the business in 2000 with a 1,500-W Mazak laser cutting machine with automated load and unload capability to support furniture manufacturers in the same area. Of course, the recession soon hit, and the company began looking for any work it could get.



That pursuit of different customers has since paid off. The company has added two more 2-D laser cutting machines, two BLM Adige tube laser cutters, and a robotic weld cell. It also is expanding its 28,000-square-foot location by 20,000 square feet. Grand Rapids Chair happens to be one of its customers.



[The lasers] have given us a competitive edge over other job shops, Koster said. The biggest problem we have is
getting product away from the thing.



Livonia Tool & Laser is a 65-year-old manufacturer that started out as a trailer manufacturer, became a high-volume
stamper, and is now a job shop that also has product lines targeted at the material handling market. It made its first jump into laser cutting in 2000 because the metal products customers demanded called for that cutting
technology. In addition, the jobs increasingly called for volumes of 10 to 100, instead of 1,000 to 10,000.



Today the company, with its seven 2-D laser cutting machines, one BLM Adige laser tube cutter, and a new waterjet, aims to turn around job orders in days. Rickabaugh, the grandson of the company founder, estimated that 60 percent of the orders are shipped out the same day. The quick turnaround has enabled the company to experience double-digit percentage increases in sales over the last five years.



These Michigan fabricators are enjoying success, but they also have concerns. One major issue is finding skilled
workers, which doesn"t seem possible given recent layoffs within the manufacturing ranks in Michigan.



For example, Laser Dynamics bought a bar-fed lathe with a single chuck and ran a classified ad in the local paper to
find an experienced operator. Koster said the company received only two e-mails about the position.



It seems with the economic state of Grand Rapids you wouldn"t have that problem, Miller commented.



That"s just going to be another challenge for these up-and-coming Michigan companies to overcome.