From the Web: Diversifying; restructuring; growing; and wearing a Ferrari

A recent study by The Economic Development Council of Central Illinois concluded that metal machinery businesses in Central Illinois are vulnerable to market downturns because they don’t sell products to enough different clients—something fabricators worldwide know well.

A large majority of metal-based businesses in this area sell their products to earth-moving companies like Caterpillar and Komatsu. When the industry is doing well, so do its suppliers. And when it’s not doing well, suppliers suffer.

The study proposed that local manufacturers collectively hire a marketing person to connect metal producers with a variety of customers. It also identified other potential clients for local fabricators. It remains to be seen if area manufacturers could decide to pay money into a so-called manufacturing cooperative to boost business.

A North Dakota fabrication shop, Motts Roadmaster, is an example one that diversified. As its name indicates, a decade ago its primary task was fabricating and welding metals for asphalt paving equipment. The company now is contracted to fabricate and weld structural steel used on electrical substations that end up being used on oil rigs and at major substations throughout the country. It also makes cattle creep feeders.

The company recently moved to a new, better location, and its workers couldn’t be happier. “It was time to move,” said Jim Ferderer, an employee of 10 years, as he took a break from cutting metal pipe used as hitches for the creep feeders.

Talking about the shop’s workers, Manager Corey Johnson said, “Most of our guys have been here a long time. We’ve hired new people, and sometimes it gets kind of tough. People from out of state don’t really fall into where they understand what we’re doing very well.”

What happens when a community’s industrial base disappears? It becomes a bedroom community that provides workers for other locations, but it doesn’t have to stay that way.

At one time, Vinton, Iowa, was the sweet corn canning capital of the U.S. But over the years, the town has lost most of its industrial base that once comprised farm implement, meat processing, and radiator manufacturing plants.

Some industry survived by adopting new products and services.

Moore Manufacturing—a company that manufactured feeders, watering equipment, fence panels, and gates for livestock feedlots—began contract manufacturing and powder coating in 1985.

Ideal Industries, a diversified metal fabrication and finished business serving several industry sectors, is the successor to Moore. The company employs about 40 people

Patrick Lyons, president and CEO of Ideal Industries, said the company was fairly successful in moving away from farm equipment to making products for original equipment manufacturers.

“Eventually, it was necessary for Ideal Industries to restructure, which it did in the early 1990s,” Lyons said. “The company came out of that in pretty good shape” and moved to a smaller facility.

In 2002, the company constructed a 50,000-square-foot building. By 2007, it was 100 percent contract fabrication for other businesses, and has gone on to buy other businesses and expand.

In 2014, Ideal Industries launched Ideal Conveyance, an original equipment manufacturer of conveyors and bucket elevators.

Also growing is Nebraska-based Blazer Manufacturing, an athletic equipment manufacturer that has been flying under the radar for decades. Under new ownership, the company manufactures equipment such as hurdles, starting blocks, and pole vault standards. It also is the leading manufacturer of metal track spikes for shoes.

But there is also an industrial side to the business, which fabricates industrial storage tanks, fuel containment systems, and custom products for walk-in clients.

Co-owner Kirk Diers said that the combination of the athletic division and industrial division, which makes products for companies like Valmont and Cargill, makes for an interesting but effective business. “Even when the economy is down, we still do really well because one picks up for the other.”

Thanks to Crash by Minabea, you can be the proud owner and wearer of a Ferrari, Maserati, Lamborghini, or other European luxury car.

Company owner Christi Schimpke, who works her magic from her husband’s Los Angeles automobile collision body shop, makes unique jewelry items from damaged car pieces.

Ranging in price from $450 to $10,000, the pieces included such luxury cuffs as the Lamborghini made from a Lambo Gallardo with 14k gold metal bands ($1,000), White Maserati hematite stone, Black Maserati with rose cut black onyx, Gold Ferrari snakeskin with Kingman Mine turquoise, and her upcoming luxury line with diamonds, colored gemstones, and precious metals on exotic cars.

You can see some of the pieces here, and maybe, be inspired to create a more affordable line from less-exotic vehicles. Muscle car pieces might be a big seller!