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. If you are starting a one-person metal fabrication shop, you might be fine with a 3G MIG and stick certification. It's just as easy to get a first-rate piece of business as a second-rate one. The preliminary steps involved in starting a metal fabrication business are similar to other business startups. “With everything that has changed over the last six months, now everybody really is being able to focus more on cost,” Abfall said. It is just the nature of the business. 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. Expanding your shop may not be easy, but it’ll be well worthwhile for you and your employees committed to its growth. All Rights Reserved. A Metal Fabrication Shop. But the metal fabricating industry is not dominated by companies that take it easy. I have approximately 8 yrs fabrication experience. This is a business that relies heavily on innovation. It calls for sheet metal fabrication, product design expertise, as well as business contacts in the fast-growing niche of commercial touchscreen displays. Dan Davis is editor-in-chief of The FABRICATOR, the industry's most widely circulated metal fabricating and forming magazine, and its sister publications, STAMPING Journal, The Tube & Pipe Journal, and The Welder. Now a part can be put in the fixture, and it’s ready for the robot. We learned the importance of “partnering” early on. 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. He has written about U.S. manufacturing trends and issues for more than 20 years. A mistake made by many new business owners is attempting to do too much at one time. The rise of automationhas no doubt changed the nature of many industries including metal fabrication. 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. 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. Most companies in the metal fabrication business work primarily to fortify their organization’s strategy in a manner that can best help them make it through changes in the global economy. In order to be a smart metal fabrication services business … Metal fabrication business planning should always include contingency measures in the event unanticipated risks arise. Here is a sample business plan for starting an iron and metal fabrication company. An electric voltage is applied to the part, causing the paint emulsion to adhere to the part.). It is expected to grow at a rate of 3% annually, reaching USD $21.38 billion by 2024. This kind of consolidation helped Continental Steel’s Don Ascione grow his business in a way he didn’t plan for — but was able to recognize and capitalize on as a metal specialist with a world-class network. The fabricator couldn’t find enough workers, and retention was becoming more of an issue as some employees took advantage of the robust manufacturing economy in Wisconsin, finding other employment that may have offered more money or was closer to their homes. Megan R. Nichols. It had just completed a major expansion of its welding and fabricating areas at its main manufacturing facility in Kiel, Wis., in 2017 and boosted its laser cutting capacity with a major investment in cutting machines and a huge 15-tower, 200-shelf automated raw material storage and retrieval system, but it was still having trouble handling all of the new opportunities from its customers. 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. How fast was the company growing? $1,151,279. One of the first things he did was eliminate the requirement that every weldment has to be tack welded before being placed in the fixture. “All of this growth has been organic. Then the fabricator made a major shift in its work hours. If you hope to thrive, balance investments in skills with selecting emerging technologies and implementing flawless customer service. You probably already have an idea of what type of business you want to open and how you want to incorporate. A quick glance of the monitor can give machine operators an idea of how laser cutting is going. Preliminary Steps to Start a Metal Fabrication Business. 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. These include doors, windows, metal cabinets, railings, and metal garden tools among others. Heus added that the CO2 laser technology really makes sense for the material mix that Amerequip cuts on a regular basis. Fabrication shops could be employed by contractors, OEMs and VARs in … According to Fijek, Nu-Way has all of this, which will make this display business a key part of its growth strategy. And more would be needed. The company raised its starting wage to more than $15 per hour. Again, the goal is to have the right amount of purchased parts at the right time. We at SW plan to serve the metal fabrication market segment. They didn’t want as much free time,” Abfall said. These changes enable us to make sure we can meet the demand versus running into a wall and falling behind,” Heus said. 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! The key is to keep production going to meet demand, but not building too much. To fill up the talent pipeline, the fabricator is looking to strengthen its partnerships with local high schools and technical schools. After new ownership came in, the fabricator turned its focus to building products for OEMs and taking on more contract manufacturing work. The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. The cylinders are made at the company’s New Holstein, Wis., facility. In 2018 Amerequip Corp., a fabricator of custom equipment for the lawn, landscape, agricultural, and construction markets, was trying to keep up with a manufacturing economy that was red-hot. Inquire today about this profitable and growing steel fabrication business for sale! Amerequip is taking the same approach with its vendors, encouraging them to more actively manage their delivery of products. With the labor situation somewhat settled, attention is now being turned to optimizing the robotic welding effort. The end result is that the welding department is getting a lot better set of parts to join. In my experience, people used to want more overtime. To begin fabrication works business, you need fabrication skills and equipment to cut, bend and assemble aluminum metal. Amerequip had made significant investments—$25 million alone in capital equipment from 2012 to 2017—to stay on top of all these new opportunities. Although fiber laser technology is not part of the mix right now, Abfall said that they are keeping an eye on it if the need is there for further expansion of the laser cutting system. The clutch plate is an essential item in the automobile industry. In the past two years alone, the company has made great strides to upgrade … First Name * Last Name * Company/Employer. Please fill out this form and we will get in touch with you shortly. TTM May 2018 SDE. Heus said Amerequip has been fortunate in creating an environment where manufacturing activity is now linked closely to real demand, not unrealistic production schedules or the personal desires of machine operators. The company offers apprenticeships, so that students can attend classes at the technical school while simultaneously learning on the job—and getting paid for it. It's foolish to make important metal fabrication services business decisions without carefully assessing the risks associated with each option. Today the payoff is evident. I need a partner to setup a welding & steel fabrication business. “People want time, and it’s even more so now than it was 15 years ago. Employees that work the weekend shift get paid for 40 hours. 2135 Point Blvd., Elgin, IL 60123 (815) 399-8700. $7,394,379. Steel fabrication is a segment of the overall metal fabrication industry. This “pull” demand, instead of “push” demand in which the fabricating and welding department just produce parts and send them to the finishing and assembly departments even if they may not really be ready for them, is symbolized by pallets and totes found throughout the assembly area. Be sure to highlight your turn around period and if the service is free to customers. The variety offered by metal fabrication businesses, brings a lot to the table when it comes to matching market supply and demand. That way the shop floor is only producing parts that are destined to be used, nothing more and nothing less. Amerequip worked with Neenah Foundry, Neenah, Wis., starting in April 2018. 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. After almost a year of back and forth and finally testing, a new casting will make its debut in a 2020 backhoe product. The system can supply material to nine lasers and be expanded to 18 towers and 250 shelves to accommodate 12 laser cutting machines. The company began life as the Farm Specialty Manufacturing Co., founded in 1920 by Bruno F. Arps of New Holstein, Wis. Before coming to The FABRICATOR he has covered appliance manufacturing, the finishing industry, and manufacturing and business software development. Working through the local technical schools’ welding boot camps, a person can become trained to take on basic welding tasks, which comes with the opportunity to make $3 an hour more than other roles in the facility. Know your customers is the basic rule for any or all business. Here are some practical tips to help you grow your customer base. The challenge was a culture of always trying to fulfill customers’ wishes. The quest to find quality workers is ongoing, but a lot of the churn has settled for the time being. Work continues to introduce more just-in-time programs with vendors, so more improvement in this area is likely. Another area of focus is perhaps creating one part load-off area instead of separate ones that dot the large assembly area. Meanwhile, everyone is working to find the best and most cost-effective ways to build parts and end products for customers. In 2012, 125 people worked for Amerequip; by mid-2017 that number had grown to 300. 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. However, it can sometimes be very challenging. It is a fact that you cannot successfully run any business in the United States without the proper documentations. 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. When Amerequip was looking at rising volumes for an 11-piece steel swing frame that was used on a compact utility tractor backhoe attachment, it realized that it might be more cost-effective to have it cast instead of fabricated. It’s also giving thought to how might be the best way to stage product for shipping to customers. 2010s: Were the 2010s the Golden Age of metal fabricating? The finishing department, where parts move from welding, is another area where the operations team will be working to streamline product flow. It’s evolved.”. … Demand for metal fabrications is forecast for impressive growth in several markets during the coming years. Don’t Rush to Expand. Once establishing your own metal fabrication shop, learning new ways to grow your business and introduce new clientele will be imperative to your success. Amerequip Corp., Kiel, Wis., wants to keep growing its business with a handful of key OEM customers. Fabrication works businesses deal with using various metals such as iron, steel, and even aluminum for the creation of doors, windows, staircases, roofing structures, and other items for homes, office complexes, etc. Degree/Diploma in Welding, Fabrication and Metal Work; List of Legal Documents You Need to Run a Welding and Fabrication Company . 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. “This will be a $25 million-plus business,” he said. (E-coat, short for electrophoretic coating, is known for its corrosion-resistance abilities. Steel Fabrication Business. Amerequip’s history dates back almost 100 years. Easily access valuable industry resources now with full access to the digital edition of The WELDER. Heus is charged with finding ways to improve that. “We want to do more for less,” he said. 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