Preparing your shop to meet new sheet metal component supply opportunities

A commitment to invest in domestic infrastructure represent plenty of opportunities for metal fabricating and forming shops. Getty Images

Recently I listened to President Biden talk about our national infrastructure. Putting politics, taxes, and costs aside, I saw opportunity for those of us involved in forming sheet metal. Infrastructure improvement offers sheet metal forming organizations a great opportunity to expand their businesses and make money doing so.

We all understand the need for safe and fuel-efficient transportation, uncontaminated drinking water, safe roads and bridges, and reliable energy generation. Rebuilding our infrastructure creates opportunities for companies that form welded steel tubes and components for bridge and architectural structures, construction equipment, energy equipment, transportation, and temporary offices and housing.

Companies that are prepared to form a variety of materials will best be able to support our national challenge and benefit from infrastructure efforts. Offering profitable and quality components in today’s changing environment is a deliberate effort. Doing so requires that you understand your strengths; improve on your weaknesses; and learn about the materials, technologies, and processes that support quality manufacturing.

Let’s look at some specific opportunities for sheet metal forming companies.

Automotive

Internal-combustion engine vehicles still will dominate the market over the near term. CAFE (corporate average fuel economy) standards still will require vehicle manufacturers to address the increasing weight of vehicles, and consumer demand for safety will require strength in materials.

This push for lighter, stronger components opens opportunities for the supply chain in advanced, high-strength steels (AHSS) and aluminum. The guidelines for third-generation AHSS will be released in the near future, and with its greater strength and ductility, demand will certainly increase. AHSS requires forming organizations to review their tooling requirements, along with welding and joining techniques and technologies.

Battery electric vehicles (BEVs) are heavy, and so are the battery packs that power them. If OEMs want to overcome resistance to BEVs, they will need to optimize driving range. And the best way to increase range is to decrease vehicle weight with lighter-weight components.

Power Generation

Probably the most visible aspect of green, modern power generation is the wind turbine. About 75% of wind turbines are made of steel, with some made of aluminum, and the blades are manufactured from composites. Composites present a problem because they aren’t cost-effective to recycle. Composite blades either end their lifecycle in landfills or are burned. Also, as turbines get larger, blade design becomes more challenging.

The industry is looking at more durable, greener materials. Steel has been used before in rotor blades, but its density was an issue. Newer steels can provide durability with less thickness than before, and they are recyclable.

Water Distribution

Congress just passed the Drinking Water and Wastewater Infrastructure Act to fund improvements to our water supply system. Most of the problem with lead in water is from soldered joints inside homes. However, our entire water distribution system is aging. The American Society of Civil Engineers has warned that increased water main breaks are wasting millions of gallons of clean drinking water and causing costly damages to areas surrounding the breaks.

Repairs to our water systems offers opportunities for suppliers of welded steel pipe, fittings, flanges, tanks, and valve components.

Construction Equipment

All this work requires equipment. From shovels to earth-moving equipment to temporary housing, suppliers will be needed to provide components to support construction and maintenance activities.

Meeting Industry Needs

If you are going to compete with other component suppliers, you must be trained, equipped, and prepared to fulfill customer demand. If you feel you aren’t there yet, here are a few things you can do to help ensure your success:

Set goals. Define realistic, manageable, and measurable goals for both your business results and the market you want to supply. This includes defining targets for revenue and profit margins, materials you choose to form, the services you want to provide, and production/quality goals.

Take inventory of yourself. Assess honestly your sheet metal capabilities and define what you currently do well. Document issues with quality and cost management. Identify the assets, processes, and controls you currently have in place. Understand what works reliably and what does not.

This also is your frontline employees’ chance to be honest with you about what changes you should make in management activities, production processes, materials, and maintenance. Listen to and understand their frustrations and challenges. Those problems bubble up to become production and business issues if not addressed.

Prepare. Once you understand your goals, capabilities, and limitations, you can build a plan to take advantage of what you do well and fix those activities you feel you should do better. Many of your improvements can probably be accomplished through focused training, adopting best practices, and better monitoring existing equipment.

Formed sheet metal components are necessary for many industries. Opportunities will continue to be abundant for suppliers that can form quality components profitably and reliably. As materials and technologies change rapidly, suppliers can be left behind and feel unprepared to accept new challenges. Now is a perfect time to upgrade your skills, evaluate your technology, and adopt effective measurements and processes.