Steel Fabricators Review V36-Winter2011

A PEDDINGHAUS PUBLICATION FOR FABRICATORS MAKING TODAY’S SKYLINE POSSIBLE

LEED Steel

Geerits

Kinsley Mfg.

LEEDing a Global Steel Fabrication Market PAGE 6

Fabrication Technology for the Future PAGE 8

Top to Bottom Construction Experts PAGE 10

Selvaggio Steel – Making Money In a Challenging Structural Fabrication Market

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HSFDB Plate Processing System

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NASCC 2011 Preview

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Peddinghaus 24 Hour Service – On Call. On Duty. All The Time

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Getting to Know Jim Sutliffe, Peddinghaus VP of Engineering

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Tax Incentives Explained

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VOLUME 36

WINTER 2011

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STEEL FABRICATORS’ REVIEW

WINTER 2011

How Have You Improved Your Company in the Past Year?

I had an opportunity to participate in an industry meeting in which many of the attendees were active participants in the steel industry. This group ranged from service centers to fabricators to manufacturers to steel mill personnel. Many topics were discussed including steel pricing, delivery, market trends, etc. looking forward into 2011.

One thought provoking question asked was, “How have you improved your company in the past 12 – 24 months?” A survey taken by the organization clearly revealed that most manufacturing companies in North America had made many capital investments in the past two years. These ranged from machine tools to computer/software systems – but the key point was that these investments had been made to stay competitive and be prepared for future business.

The key is investment in technology. We all know that new machines and processes are available that can directly influence your steel construction/fabrication business: Reduce Scrap and Control Labor costs.

Lyle Menke

A Platform that Shares Fab Shop Information: A global perspective is the goal of the STEEL FABRICATORS’ REVIEW magazine for each of our readers. We provide a forum that features the best in steel construction and fabrication shop practices in the world.

The most progressive and profitable shops in the world have invested in Peddinghaus, and are willing to share their thoughts and vision on how this investment is lowering the

It is apparent that many in our industry have already invested in the future – including your competitors – what about you?

Winter’s Worst Weather Can’t Stop Peddinghaus!

Dedication – It’s what every Peddinghaus employee provides our customers.

In the USA, every eye was watching a huge winter storm this week as it passed through 2/3 of the nation. Deep snowfall, high winds, zero visibility, impassable roads, bitter cold – all of Mother Nature’s worst – descended on Bradley, Illinois.

It seemed that Peddinghaus was the center of the storm.

However, in spite of all these adverse conditions, Peddinghaus was open for business. From customer service to parts to manufacturing, dedicated employees made it through the weather conditions to do their job.

In this issue, you will travel to Australia for

A good example of the poor driving conditions was that fact that Brian Blanchette, a Peddinghaus shop employee who resides in a rural area, was preparing to leave for work for his 6 a.m. shift. His 4 wheel drive truck became stuck in a huge snow drift in his yard. Undaunted, he went to his machine shop, and started his “big green tractor”.

a visit to LEED Steel (formerly Old Bull & Box);

Brian and his tractor made the 7 mile trip to Peddinghaus at 18 mph – but in time for the start of his shift.

then on to Belgium for one of Europe’s

This is an example of the dedication and commitment of a typical Peddinghaus employee – who knows we have deadlines to meet and that our customers depend on us. This type of enthusiasm is what literally “drives” Peddinghaus every day.

costs, and increasing their profitability.

most progressive fabricators, Geerits, and finally to the USA for Kinsley Manufacturing –

Experience a little Peddinghaus Enthusiasm – it’s contagious!

who provides a General Contractors’ view of structural fabrication.

SteelDay – AISC Success!

The second annual SteelDay, sponsored by the AISC, was another success. This special day is devoted to the promotion of structural steel members in the construction process throughout North America.

Peddinghaus is proud to play a part, not only by holding our own event in Bradley, IL, but also assisting many customers and industry members as well. Three events should be especially noted: 1. Peddinghaus celebrated SteelDay in Canada with the CISC (Canadian Institute of Structural Steel), Akhurst Machinery, and our customers Waiward Steel and M & D Drafting. Over 250 participants gathered in Edmonton, Alberta to learn more about the benefits of steel framed buildings and construction.

Steve Farrow leads a group tour at B & B Welding, Baltimore, MD.

2. B & B Welding, Baltimore, MD opened their doors to over 75 guests demonstrating their fabrication techniques using Peddinghaus new CNC equipment. B & B’s Dennis McCartney said, “this is a great event, and I am pleased to support the AISC.” Continued on page 18

WINTER 2011

STEEL FABRICATORS’ REVIEW

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FROM THE CEO A Happy New Year

to all of Peddinghaus Corporation’s customers, business partners, and industry friends. We hope that 2011 provides you with health, happiness, and a successful business year!

I have NEVER seen such an economy as this one!” First the Dollar is down and the Euro is up; then the Euro is down and the Dollar is up; nervous bankers are squeezing credit requirements; mix in some unemployment figures, and you get the picture… What a year 2010 was – I think I have more gray hair this year than ever!

Anton Peddinghaus

Want to Beat Your Competition and let the Government Pay For It? The year 2011 is looking up already!

The Power of One The “Power of One” is Peddinghaus Corporation’s theme and goal for 2011.

What do we mean by the “Power of One”?

Throughout 2011, you will experience how Peddinghaus maintains our position as Number One in our industry!

• Number One in Customer Support • Number One in Technology & Innovation • Number One Business Partner for our Industry • Number One for our employees and their families

2010 – What a Year!

As I reflect back on 2010, those of us in top management positions feel about the same… underappreciated and challenged! Any time that you tuned into the media, you were provided with plenty of information on the demands and challenges it takes to be an effective business leader. Here in the USA, we hear daily of old tax laws, new tax laws, labor laws, environmental laws, business ethics, healthcare proposals, healthcare counterproposals… you get the picture – it was endless. So how do you run your business in this turmoil?

I have found myself (at age 42, this year) consulting with my father for advice. His comment was very concise, “Son in my whole life,

If you are in the USA, the federal government has passed two significant pieces of legislation that directly benefit our business: The Jobs Act of 2010 and the Tax Relief Act. These bills not only extend existing Section 179 benefits, but also expand a Bonus Depreciation for new equipment purchased in 2011: • Section 179 benefits are now increased from $250,000 to $500,000 for capital equipment purchases, and can be deducted immediately from taxable income • Regardless of your profit/loss situation, an ADDITIONAL 100% bonus depreciation is also available if you purchase – and install – your new equipment by December 2011.

Write it off NOW! How do these numbers affect you? Think about how you are operating your fabrication shop now…

Don’t Believe Everything You Hear On the Street Is Peddinghaus Corporation “Old Technology”?

Many of our competitors like to spread this rumor thinking it gives them some type of edge.

But let’s examine a few FACTS. Advantage II Drill Line Facts: • Introduced May, 2010 at NASCC, Orlando, Florida • High Speed Carbide Drilling via Siemens “Smart Spindle” specific motors Exceptional speed and accuracy via Patented Roller Feed Measuring • Each of the 3 axes features 5 station automatic tool changers Ideal for tapping & countersinking of holes • Scribing/Marking on all 4 axes Perfect for layout identification • Fully CE and ISO approved n

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If you are still running 2 old drills, or run a double shift, or use two employees on a burn table, you are paying two operators to process your fabrication.

Invest in a new Advantage II drill, and you can meet your production requirements in one shift with one operator. That means you just saved the salary of one of your old drill operators. By using the costs saved by only one operator, the machine is now paid off in 3 years! Talk to your accountant, as this a fantastic deal that brings new technology to your shop at a fraction of the cost, thanks to Uncle Sam. Talking about the “Power of One… the Advantage II drill is the number one drill line in the World today – and with one operator will provide all your shop’s tonnage.

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Advantage II users have expressed to us their satisfaction: “Fast, faultless start up and easy for my operators to learn” “Speed is unbelievable” “We have run our Advantage II for over 6 months with no problems, and few questions – well engineered!”

Continued on page 5

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STEEL FABRICATORS’ REVIEW

WINTER 2011

In today’s world it only takes 1 strength to decide victory over defeat. There are many things that go into success but when everything comes down to black and white, win or lose, succeed or fail, 1 company, 1 powerful business partner can make all the difference in today’s marketplace.

PEDDINGHAUS CONTINUES TO BE THE 1 COMPANY TO TIP THE SCALES IN YOUR FAVOR FOR 2011 At Peddinghaus we strive to succeed in every area of our business so we can be that deciding factor that helps fabricators meet their goals. Our customers are businesses just like us, and we are proud to be the 1 company that proves time and time again to be the tipping point for their success, the competitive edge that helps them thrive in today’s business climate.

What exactly does Peddinghaus mean by The Power of 1?

The Power of 1 Industry Partner, 1 Resource for expert advice…

The Power of 1 Bigger, Faster, and Stronger Machine that reduces costs and increases throughput…

The Power of 1 Partnership between supplier and user, the strength of a trusted resource…

The Power of 1 Operator with today’s modern technology as his machine…

The Power of 1 Globalized Service Department… available when you need them, when it matters most…

The Power of 1 Team… that works together to achieve a common goal The Power of 1 Year… that can change the direction of your business and the global steel fabrication community In 2011 Peddinghaus will prove why the Power of 1 is your tool to reaching business objectives.

The Power of 1…

WINTER 2011

STEEL FABRICATORS’ REVIEW

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FROM THE CEO Continued from page 3 So if you are looking to drill 150 – 200 tons of structural steel in one 40 hour week of sections that are up to 1100 mm/44 inches wide, the Advantage II is the machine for you. We build multiple machines per month. Give us a call, and we would be proud to provide you with a copy of our users list.

HSFDB Plate Processor FACTS: The HSFDB is the most advanced plate line in the Peddinghaus product line! Granted, this basic design is not new, but the one operator/minimal scrap/one pass operation is the productive winner and makes it ahead of its time.

Take a look at what our engineers have done with this machine!

• Available in three models with capacities up to 1800mm/72 in; 2500mm/96 in; and 3200mm/126 inches wide.

• HSFDB processes up to 75mm/3 in plate, optional 100 mm/4 inch thickness is available.

• 8 station traveling tool changer provides high speed drilling, tapping, counter sinking, marking/scribing, and milling from a powerful 48 HP/36 kW spindle specific motor.

• Best high definition plasma auto-gas technology is employed with a HPR 260 or HPR 400.

The Power of One in 2011 Customers Come First at Peddinghaus: • • • •

24 hour call center assistance Web cam “on the spot” diagnostic help Remote diagnostics via the internet Over 60 global field service techs/20 call center techs

At Peddinghaus, we are dedicated to customer satisfaction. Ask our users, they provide our best testimonials. When you buy Peddinghaus, you buy the company, not just a machine.

Software Innovation Priority One: • New Adnexxus Software – the authoritative integration software for Tekla Users • New Pedditrack Software – keeping fabricator’s production “on track” We invested heavily in “human technology” with the development of our Advanced Software Team. This group has done an outstanding job in providing software technologies that exceed all industry expectations.

There is no antiquated technology here at Peddinghaus!

The Power of One at the NASCC 2011 in Pittsburgh Absolutely, Peddinghaus will have a strong presence in Pittsburgh! It is our tradition to provide our customers and industry partners with new equipment, new technologies, and a little entertainment along the way. As always we have a few surprises up our sleeve, but we won’t give it all away now.

But here are a few highlights: • New Equipment and Newer technologies right in our booth that are guaranteed to turn heads • Our Harley Fabricators’ Tour ride starts May 7 • Our big Wednesday night event is on schedule for May 11 I will tell you one thing, a couple of last year’s attendees advised me that “Blue” was not their favorite color, so we have declined the Blue Collar Comedy tour for this year’s event in Pittsburgh. But don’t worry, we always deliver!

Simply by using today’s modern software nesting packages in conjunction with the HSFDB, we have customers who are processing plate parts on the HSFDB with only 4 – 5% scrap! Talk about saving money – with the HSFDB, that is priority One!

Make Money with the HSFDB Plate Processor – NOW So, those customers who still use old burn tables, with two operators, and crane loading need to take a minute and check this out. Steel plate prices are going up; Labor costs are unpredictable, isn’t it time you checked out the productivity?

Our HSFDB customers tell us that they can process 1 – 2 tons of plate parts per hour with one operator! Stay tuned for more HSFDB info! The HSFDB truly gives meaning to the Power of One for plate processing throughout the world!

You know Peddinghaus… we always have something cooking, so keep an eye on www.peddinghaus.com for details in the coming days and weeks.

The Power of One Dwells in All of Us If your thing is drilling beams and profiles with a dated machine or fabricating plate with an old style burn table, seize the power to improve your business! New technology from Peddinghaus will reduce your scrap, increase your productivity – with less labor, and make you more competitive in today’s uncertain market.

Don’t just complain about your competitor’s low bid prices, make a Peddinghaus investment and discover the productivity the Power of One can deliver. There has never been a better time or a more powerful partner for your future success.

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STEEL FABRICATORS’ REVIEW

WINTER 2011

LEED STEEL

LEEDing a Global Steel Fabrication Market An Industry Leader is Born When LEED Steel opened its doors as “Old Bull and Box Engineering” in 1992 its founders, relied on their combined years of experience in the industry to serve the eastern seaboard of Australia as far north as Northern Queensland, and Perth. As business has evolved and markets have matured three major challenges to the Australian steel industry have only grown due to modern market complexities. #1 Competition is fierce Inexpensive off-shore steel fabrication creates heavy price competition in Australia. More than ever it's critical to keep costs at a minimum to compete. #2 Skilled manual labor is costly, and difficult to find Similar to other markets in the world, skilled labor is getting harder and harder to find. On top of having difficulties finding labor, health and safety regulations are constantly evolving in the work place adding additional cost considerations. #3 Lead times can make or break bid wars Keeping operating costs low is key, but sacrificing efficiency is not an option. It’s critical not to limit the kind of work you are able to bid on in today’s business world.

Partners Andrew Kaye and Adam Furst of LEED Steel pave the way for Australia’s fabricating future.

To some a name is just a label to place on an invoice or business card, but to others it defines the organization and its culture. LEED Steel (formerly Old Bull and Box Engineering) in Albury, Victoria – Australia, has made their name their mantra, a reminder of who they are and what they strive to be. Partners Adam Furst and Andrew Kaye have a vision for LEED Steel – to lead the industry with supreme quality, unparalleled technology, and unsurpassed innovation. Their desire to succeed is only matched by their passion for moving the industry forward with innovative designs and lean production processes.

The Powerful HSFDB-2500 Plate Processor uses smart technologies that allow for safer work environments and higher efficiency compared to antiquated gantry style plate machines.

To satisfy demand and meet required lead times LEED Steel had previously found themselves adding staff, expanding space, and increasing overhead.

It was essential to go as far as renting and staffing an additional 1,500 square meters of space remotely to increase shop throughput. With over 45 employees in their shop LEED Steel was processing approximately 2,500 metric tons per year, and found themselves with too many people, too little space, and the need to increase profitability. It was evident to Adam and Andrew that it was time to explore automation.

LEEDing the Way in a Globalized Steel Fabrication Market It was at several internationally renowned exhibitions that Adam and Andrew met the group at Peddinghaus. After seeing the equipment running side by side with the competition, and visiting the headquarters in Bradley, IL - USA, LEED Steel made the decision to incorporate Peddinghaus into their production processes. The investment in a new High Speed FDB-2500 plate processor, PCD-1100 Beam Drill Line, DG-1100 Double Miter Band Saw, and an ABCM-1250 Automatic Coping System was well timed.

The PCD-1100 and DG-1100 drill/saw tandem system proves to be an easy to use model of efficiency.

Automated coping is important to OBB / LEED Steel when preparing profiles for complex welded connections commonly used in Australia.

WINTER 2011

STEEL FABRICATORS’ REVIEW

Meter by Meter and Inch by Inch shop floor space is utilized twice as effectively due to the compact layout of Peddinghaus machines.

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Streamlined production flow is facilitated by a robust Peddinghaus material handling system, eliminating dangerous crane movement throughout.

Their machine tool investment instantly helped them with each of the challenges they face as a global fabricator.

More Than Fast Equipment – Peddinghaus Offers Superior Service and Support All Over the Globe

#1 With Peddinghaus Equipment Old Bull and Box is more competitive than ever No longer needing to maintain their offsite facility, overhead was slashed.

All fabrication is now done in house at their plant in Albury, Victoria.

With capacity higher than ever LEED Steel expects to fabricate between 6,000 and 8,000 metric tons in the coming year, nearly two and a half to three and a quarter times previous production figures of 2,500 metric tons. It is with Peddinghaus equipment that they are now able to process steel faster while still minimizing overhead costs.

24 hour support combined with local field service has proven helpful for LEED Steel as they step into their first experience with automation.

Questions are answered quickly by the 24 hour computer and telephone support center, while remote assistance and diagnosis has proven to be tools that help the organization get acclimated with their new machine tool investments.

#2 Modern labor knows technology, and is safer with Peddinghaus machines By eliminating the human error from fabrication, parts are more accurate than ever, and today’s workforce easily learns the PC interface of Peddinghaus/Siemens controls. Also other shop floor operations are safer with the streamlined workflow of Peddinghaus material handling.

Common hazards associated with moving heavy materials manually throughout the shop are eliminated with their new, smart shop layout. #3 Tight lead times are no issue with Peddinghaus automation Speed is now a major part of LEED Steel’s business model. Previous lead times of 4 - 6 weeks have been slashed in half to 2 - 3 weeks with Peddinghaus equipment. When applying manual methods each employee represented 1 - 1.5 metric tons of fabricated steel per work week. Today 2.5 - 3 metric tons of fabricated steel can be attributed to 1 employee’s work week at LEED Steel. Now each employee can produce twice the metric tonnage per week!

“We once had a scenario where we contacted Peddinghaus in the morning per an issue with our Coper. That same day we had a service technician at our doorstep ready to help us get going with production as soon as possible.

Peddinghaus service has been readily available every step of the way.”

– Adam Furst

Bigger Projects, Faster Lead Times, Higher Quality – Welcome to LEED Steel Hand in hand with operation changes and a new business philosophy LEED Steel is no longer the same organization it once was, and there’s no telling what they will do next.

“With our new capacity, and ability to tackle larger jobs at shorter lead times our customers will be amazed at what our latest capabilities have come to be. We strive to be leaders in the global fabrication community. In the future automation and faster production will continue to be a key part of the services we offer customers. At LEED Steel we tackle bigger jobs, with shorter deadlines with no compromise in quality.”

– Andrew Kaye

BEFORE AND AFTER – MANUAL FABRICATION VS. PEDDINGHAUS AUTOMATION AT LEED STEEL PRODUCTION ASPECT

FABRICATED MANUALLY

FABRICATED WITH PEDDINGHAUS

DIFFERENCE

Annual Tonnage

2,500 Metric Tons Per Year Manually

6,000 - 8,000 Metric Tons Per Year with Peddinghaus

2.4 – 3.2 Times Higher Capacity

Average Lead Times

4 - 6 Weeks Manually

2 - 3 Weeks with Peddinghaus

Half the Required Lead Time

Tonnage Return Per Employee in Shop

1 - 1.5 Metric Tons Per Week Manually

2.5 - 3 Metric Tons per Week with Peddinghaus

Twice the Tonnage per Employee

Tonnage per Square Meter of Shop Space

.6 Metric Tons per Square Meter of

2 Metric Tons per Square Meter of Shop Space

Shop Space is Twice

Shop Space Manually

with Peddinghaus

as Effective

Capacity is higher, lead times are shorter, while employees and existing shop space produce more fabricated steel than ever before at LEED Steel with Peddinghaus equipment.

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STEEL FABRICATORS’ REVIEW

WINTER 2011

GEERITS

Fabrication Technology for the Future The small town of Bree, Belgium is home to Geerits, which for the last 20 years has developed a superior reputation as a leader in the construction assembly in industrial buildings and structures. Their customer base is not limited to Belgium, but includes clients in France, Holland, and Germany.

From a modest start in 1991 with only 5 employees, Geerits has grown into a superior steel fabricator and erector in Europe. How does a firm make such a leap in less than twenty (20) years?

The Peddinghaus DGP saw and BDL 1250 provide the backbone for structural fabrication at Geerits.

Why Buy Peddinghaus?

The response from Mr. Jos Geerits is direct.

“There are many reasons, of course, but the main points are as follows:”

“Invest in Technology;” says Mr. Jos Geerits, “It is the future.”

From the beginning, Geerits always investigated in superior methods to better serve their customers. Initially, they focused on structures for the agricultural and equine industries. However, as Geerits reputation for quality grew, they received contracts with larger firms. Soon they were fabricating projects for large buildings and structures in the industrial and commercial markets, as well as agriculture.

1. We knew of Peddinghaus from our industry colleagues and partners; all spoke highly of Peddinghaus equipment – that it was the best in the industry 2. We wanted quality, reliable machines that would last for a reasonable amount of time 3. Our jobs are fast paced, we needed equipment that is fast, flexible and can help us meet our deadlines 4. We wanted equipment that gives us the capacity to expand and grow. The Peddinghaus modular handling system meets those demands 5. The Peddinghaus technology is labor saving – we are able to do more with less – and that makes us competitive 6. Finally, we wanted a solid business partner that understood our industry, and was committed to customer service – we have a good partner and a good friend at Peddinghaus

Tomorrows’ Technology Today A lot of firms like to use the word “technology”.

Peddinghaus’ engineering designs for machines in the steel construction industry have always been in the lead. From the strong, rugged frames to the precise positioning features to the 21st century electronics/software package, Peddinghaus is the leader. Let’s see why Geerits chose these machines.

The DGP 1250 band saw miters up to 60 degree to provide fast, accurate cutting for sophisticated building projects.

The Peddinghaus DGP 1270 band saw is a powerful, precise tool that delivers fast sawing times to exacting miter accuracies – perfect for a flexible production environment where project requirements (such as roof trusses) can change quickly.

Since unfinished profiles, delivered from vendors, seldom have a suitable initial cut, each work piece is given a perfect seam (trim) cut upon entering the system. For many fabricators, this is a slow process, but not for Geerits. Why? Because the Peddinghaus DGP 1270 employs the following advantages for band sawing: 1. A powerful 14.5 kW drive motor 2. A precise “Auto Feed” automated sawing system that maximizes the cutting 3. A 3 degree blade pitch that insures the blade is always sawing in the material (not in “air”) 4. A precision positioning system that miters up to 60 degrees right or left

Smart Spindle Technology is a Smart Machine Choice Geerits invested in the latest drill line technology from Peddinghaus the BDL 1250 with nine (9) spindles. The drill operates in perfect synchronized tandem with the DGP 1270 band saw.

Geerits utilizes the latest in blast cleaning technologies – but a key to profitability is minimizing handling beam profiles with a modern lift & carry material handling system.

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STEEL FABRICATORS’ REVIEW

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The PeddiBlast System provides a powerful solution for cleaning of all structural shapes and profiles.

and intelligent nesting software are the foundation of a rugged plate processor that is capable of meeting any plate connection part required

by Geerits.

The end result? Faster project completion for Geerits clients!

The “Drilling King” for structural shapes and profiles at Geerits is the Peddinghaus BDL 1250 with its rugged design and large capacity.

“Our Peddinghaus Equipment has Helped us Gain New Business” So says Mr. Jos Geerits; “Thanks to our forward thinking in combination with all the Peddinghaus equipment, we succeeded in convincing several customers to work with us.”

“Once they witnessed our production capability, they knew we could handle their project quickly and efficiently.”

Powerful tools maintain production – designed for years of service.

“It makes good sense to store beams on both sides of the conveyor,” says Mr. Geerits. “A versatile material handling system – with lift and carry beam handling – provides flexibility so we can process multiple projects on the Peddinghaus system.”

Old, standard frequency motors do not have these capabilities.

The BDL 1250 drill also maintains marking and part stamping capabilities. Even after painting, this data is clearly legible, and aids in fast steel erection at the job site.

“We are First with the Best in Plate Processing” The sawed beams enter the drill, and are automatically measured. Recognizing the proper program, the BDL 1250 begins drilling the required holes at high speed, without stopping for tool changes, due to the nine spindle design.

All three working axes can be deployed at the same time if required for fast processing.

Peddinghaus employs Siemens state-of-the-art electronics on all its equipment, including the BDL drill. Peddinghaus engineers developed a system called “Smart Spindle Technology” that contain actual drilling data from rpm to feed rates to hole break through.

In 2010, Geerits invested in a new Peddinghaus FPB 1800 CNC plate processing system. The handling of plate components has long been an issue for many fabricators. Buying from a vendor was expensive, and delivery was always an issue.

With the new FPB 1800, Geerits can control their own production. They can buy stock plate 1.8M x 32 mm thick up to 6M in length and process the entire piece without any additional material handling.

The technologies of multiple tool hole punching, plasma cutting, scribe marking,

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The speed and efficiency of the Peddinghaus machinery, and the PeddiBlast cleaning system has provided for the future of Geerits. They are capable of bidding on larger projects with the full confidence that any customer job requirement can be met.

“By investing in the technology of the future, we can provide for our clients today!” says Geerits.

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STEEL FABRICATORS’ REVIEW

WINTER 2011

KINSLEY MANUFACTURING – YORK, PA – USA

Fabricator, Erector, General Contractor – Top to Bottom Construction Expertise

The West Virginia Air National Guard C-5 Hanger was a 2,250 ton project with a 250 foot (76M) clear span to permit unrestricted airplane entry.

(l-r) Fred Herbst, Bobby Chenault, and Ryan Butler are moving Kinsley Manufacturing forward as a premier fabricator in the Northeast.

When economic times are demanding, bringing value to a project is imperative. Your bottom line bid number is magnified, scrutinized, and pulverized in today’s tough marketplace. How do you bring value to the bid table that sways the owner to choose your firm?

(above) The Millennium Science Complex at Penn State University required 4,200 fabricated tons with huge, complex fabrications; including one section that consisted of a 120 foot (36.5 M) cantilever carrying two elevated stories (below).

For Kinsley Manufacturing in York, PA, the answer is easy – strategize the bid work. Use your full resources of Design Build: design involvement to fabrication to rigging and erection. Examine the job in detail and then engineer, fabricate with an eye to fast erection. It’s a winning combination.

Using Peddinghaus equipment Kinsley Manufacturing in York, PA has found the perfect winning balance between quality and efficiency in their total solution approach to steel construction.

Not Your Normal Fab Shop – Steel Fabrication With A Big Picture Point of View If you aren’t already familiar with Kinsley Manufacturing, it’s time to get acquainted.

This family owned business is a perfect example of tradesman turned general contractor. When Robert A. Kinsley founded the organization in 1967 he may never have expected that one day the second generation of Kinsley craftsmen would manage one of the largest full-service construction management companies in the mid-Atlantic, USA region.

Having entered the steel construction business during the 1970s and 1980s Kinsley approaches erection and fabrication with a big picture point of view. Although efficiency and cost reduction are primary strengths of their fabrication business unit, accuracy is paramount for keeping costs down across the organization. When you find yourself acting as the sole fabricator, erector, and general contractor for a project, inaccuracies or missed shipments are no one's problem but your own. That’s why Kinsley relies on the industry’s most reliable and accurate structural automation from Peddinghaus. Whether processing bridges, military bases, schools, medical facilities, industrial complexes or retail units; Peddinghaus machines play a critical role in delivering parts efficiently and accurately time and time again.

Steel Erector Turned Fabricator – The “Bring It On” Approach to Steel Construction Never turning down a challenge Kinsley Manufacturing began offering structural steel services in the 1970s and 1980s, but there was one rigging job in particular that forever forged their position in the steel construction marketplace. Contracted by Harrisburg, PA fabrication firm (Stewart Amos) for a fast track job removing their TDK-1000 drill line, Kinsley recognized a unique growth opportunity in disguise.

WINTER 2011

STEEL FABRICATORS’ REVIEW

Two “senior fabrication fellows”: Fred Herbst of Kinsley and Steve Farrow of Peddinghaus, discuss the Peddinghaus TDK drill line – still running two shifts daily after over 25 years of service.

20 Year Old TDK Finds Another Home Stewart Amos had recently landed the largest fabrication job in the history of their company and felt it was time to upgrade equipment.

Their 20 year old Peddinghaus TDK-1000 drill line had never given them a reason to worry, but its age alone had prompted them to order a new BDL-1250/9B. As the contracted rigger to remove the drill, and having worked in the steel fabrication trade themselves, the group at Kinsley dared to ask the question – “What do you want to do with that drill when it’s out of here?” Stewart Amos stated they had no plans other than to sell their drill and Kinsley volunteered to take it off their hands – a wise decision that forever changed their business.

“We bought the TDK-1000 drill for next to nothing, and it ended up being a dream machine for Kinsley Manufacturing. Parts were readily available and Peddinghaus service was second to none. Even though it was 20 years old it runs like new to this day.”

Kinsley’s steel fabrication business unit was thriving, and continually serviced their other extensions without fail. It wasn’t long as their business continued to grow that they were set on adding another Peddinghaus line to their production capacity.

“Our design build philosophy has always been our strength, and when our business units had

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“The Peddinghaus FDB 2500 plate processor, saved us over 500 man hours on one job alone,” says Fred Herbst.

expanded it was time to add to our capacity. We chose Peddinghaus after our experience with the first drill line because of the strength, compatibility, and user friendliness it offered. With the addition of 2 band saws – a miter DG 1100 and a 90 degree model 1250-510 – along with our latest drill line the BDL-1250/9B, our fabrication is more powerful than ever.”

“We have recently added two more machines to expedite our detail and connection work; The FDB 2500 plate system and the Anglemaster AFPS 643 for angle and flat plate connections.”

The FDB alone has saved us over 500 man hours on one job alone making a multiple hole connection.

With an impressive production capacity of 36,000 tons annually Kinsley Manufacturing is now capable of taking on fabrication projects outside of their organization, adding to their bottom line profitability. On jobs that their general contracting arm of the business does not play a part, the fabrication unit can still be involved due to their efficient cost saving practices.

“Our Peddinghaus machines never shut down.

Whether it’s our drills, angle line, or plate line, we run them night and day. If there is ever an issue we have the only 24 hour phone service line at our disposal. Receiving spare parts is never an issue with Peddinghaus. They are truly a first class business partner in today’s global business community.”

The material flow is handled by the BDL drill line operator as he processes beams into/out of the various work stations.

The Peddinghaus Anglemaster runs continually to provide all angle/flat stock connections for Kinsley.

Sophisticated Fabrication Is An Opportunity At Kinsley no job is too large or too small. Their Teamwork oriented business culture has quality, craftsmanship, and customer satisfaction engrained in each step of the construction process. This proves to be a recipe for success at Kinsley, for now and into the future.

The philosophy of the firm is simple: roll up your sleeves and get to work. “You don’t need a PhD to be a good business partner – but you do need to listen to your customers, evaluate their needs, and treat them fairly.”

That is how we treat our customers, and that is how Peddinghaus treats us. It is a formula for success that many firms should emulate in today’s market.

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STEEL FABRICATORS’ REVIEW

WINTER SPRING 2011 2010

SELVAGGIO STEEL

Making Money in a Challenging Structural Fabrication Market Selvaggio Steel was established in 1957 as a family business – and remains a family business today under the direction of brothers Mark and Tony Selvaggio. The firm has been an active structural and miscellaneous fabricator since its founding. With the current market levels of steel construction, we spoke to Mark and Tony about the main question that many fabricators must answer:

“In a Challenging Market, How Does a Structural Fabricator Make Money?”

In a nutshell, here is how their creativity – and a Peddinghaus FPB plate machine – helped them remain stable and create cash flow and profit for their company.

We will tell their story with two separate projects that they accepted. Comments from Mark and Tony Selvaggio are in italics.

Fabricating Plate Parts for Manufacturing: Background: Like many fabricators, Selvaggio was searching for work opportunities for their shop. They had a request from a manufacturer to process two separate plate part components – 1,000 of each part.

Mark & Tony Selvaggio know the key to profitability in difficult times is to be innovative in ways to use your existing shop tools – like the Peddinghaus FPB plate processor.

Time Line For a Fast Job that Exceeds the Customer’s Expectations: • The order was received at 2:30 p.m. on a Friday afternoon • Steel was ordered from the vendor for 7:00 a.m. Saturday ($300 delivery premium) • The parts were programmed and nested using Shop Data System’s PeddiNest software with chain cutting, nesting, and “edge start” technology • The operators were called in for Saturday and Sunday OT work (we hadn’t worked OT for months)

All of the plate detail for a U.S. Air Force building project was processed on the Peddinghaus FPB plate system.

“It was a manufacturer, and their tolerances were tight, but we thought – why not bid it?

We operate a Peddinghaus FPB 1500 plasma plate punch for all our plate detail, so it was the perfect machine.”

“With nothing to lose, I gave them a price per piece – they said that they would get back to me. I told them, they have my word that should any quality issues arise, I would address them personally… the purchasing agent gave us the order an hour later.”

(Editor’s Note: According to various steel industry sources, manufacturing has increased 3 - 4% in the USA and 2% in the UK in 2010).

“We have a small shop, and the FPB fits perfectly,” says Tony… note the mezzanine constructed with ancillary tools.

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Fabricators commonly experience scrap as low as 4 – 6% with Peddinghaus Edge Start and Common Cutline methods.

A nest of the parts produced for the job depicts how the Peddinghaus’ continuous processing utilizes stock (including small remnants) to make quality parts while reducing scrap to a small percentage. “That is how you make money,” says Mark Selvaggio.

FPB Production Job Facts:

Final Result? Orders for 25,000 More Selvaggio’s manufacturing customer was so pleased at the rapid response and the overall quality of each part component, that they purchased an additional 4,000 of each part.

That 2,000 part order soon multiplied until Selvaggio had processed over 25,000 parts – all on the Peddinghaus FPB.

Loading plate outdoors in a continuous one pass process was a key to processing 10 stock plates in one 8 hour shift.

• Plate loaded onto FPB at 7 am on Saturday In one 8 hour shift, 10 stock plates were processed n

PeddiNest software provides for “edge start” plasma processing of plate which virtually eliminates scrap.

• With full nesting including chain cutting, common cut line, and edge start technology, scrap ratio was about 5% • With the Peddinghaus design, they could rotate the trail end plate to produce more parts and reduce more scrap!

• Finished 2,000 plates Sunday at noon • Loaded and delivered to customer Monday a.m.

Edge Start technology enables the plate to be plasma cut from the outside edge of the plate enabling virtually no scrap – never a skeleton remnant!

“Were we concerned selling to a manufacturer?

A little, but we had confidence in our equipment, our software, and our craftsmanship. A small risk provided a big reward!”

Repairing Coal Hoppers: A local municipality approached Selvaggio about repairing an old coal hopper mechanism.

“It was an old hopper with hundreds of rivets attaching the hopper to the frame. Their engineer was uncertain how to repair. The Selvaggio team examined the hopper, and the taper of each of the four sections. We then examined the distance of the rivets, and came to a conclusion – we could oversize the part by one inch – punch a hole for each rivet head, then shear the plate leaving half holes on the edge, allowing two plates to meet at the rivet line.”

The Perfect Machine for the Job – Peddinghaus FPB Plate Processor • The FPB punched the “hundreds” of holes in the perfect slope required to match the existing rivets • The precision of the FPB plasma cutting action provided the exact miter/taper of each of the four sides of the hopper (some plasma “stitching” was used as well on the long parts) The client was so happy with our solution that he gave us order to repair two more hoppers, which we were happy to provide.

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The coal hopper retrofit was a good project for the FPB; with an innovative design that can process stock plate at any shape/ length/contour; hundreds of holes could be punched, and the tapered plates could be cut at the required angle to retrofit to the existing hopper. “It’s the right tool for the job,” says Tony Selvaggio.

Be Creative – and Use Peddinghaus Mark and Tony Selvaggio will tell you they are fabricators, and structural steel construction is a core business. But when that business is not available, you develop skills to approach other market areas, and grow your firm. The standard old slogan is “Necessity is the Mother of Invention” – it was great the Necessity also had the tenacity of the Selvaggio team and the Invention of a super tool – the Peddinghaus plate processing system. info@ selvaggiosteel.com www.selvaggiosteel.com

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STEEL FABRICATORS’ REVIEW

WINTER 2011

HSFDB PLATE PROCESSING SYSTEM A

I

H

G

B

C F D

E

HSFDB SERIES MATERIAL CAPACITIES MATERIAL SPECIFICATIONS Max Plate Thickness Optional Max Plate Thickness Min Plate Thickness Max Plate Width* Min Plate Width Max Stock Weight** Spindle Power Max Spindle Speed *Available in 1800/2500/3200 – 72"/96"/126" widths **Max length dependent on weight

INCH 3” 4" 1/4” 96” 6” 19,800 lbs 48HP 2250 RPM

METRIC 75mm 100mm 6mm 2500mm 150mm 9000 kg 36 kW 2250 RPM

A 8 STATION ROTARY TRAVELING TOOL CHANGER • Capable of holding up to 8 tools for drilling, tapping, countersinking, milling or scribe marking.

• Machine programmable for up to 24 tool sizes without modifying program settings.

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B CARBIDE SCRIBING/MARKING SYSTEM • An available scribing tool is placed into the automatic tool changer and selected upon program command.

• The HSFDB is capable of scribing any character or shape in multiple orientations and depths.

STEEL FABRICATORS’ REVIEW

E OXY/PLASMA CUTTING • High Speed Plasma: An efficient 260 or 400 amp high speed plasma system is available for exceptional cutting speed and quality finish.

• Oxy Fuel Cutting System: The economic alternative to plasma cutting. Offers total thickness versatility.

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H THROUGH THE TOOL MINIMUM QUANTITY LUBRICATION SYSTEM • Ecologically friendly minimum quantity lubrication.

• This vegetable oil based lubricant can utilize as little as 5% solution to 95% air when drilling.

• Parts come off the machine nearly dry and ready for secondary operations.

C AUTOMATED TOOL HEIGHT MEASURING • Automatically measures tool length before putting into operation.

• By mechanically probing for tool length before operation, the HSFDB assures optimal functionality.

D PLENUM CHAMBER & EASY UNLOADER • Standard automatic dump table mechanism.

• Parts up to 1,000 pounds / 453kg can be unloaded with ease.

• Copper lined plenum chamber is integrated for easy removal and containment of machine byproduct.

• Further parts handling options available.

F AUTOMATED MATERIAL DIMENSIONING • Plate edge dimensions are detected by Peddinghaus’ state-of-the-art laser probe system.

• Plate thickness is determined by a transducer that is mechanically linked to the plate roller.

G SIEMENS 840 Di CONTROL

I POWERFUL SIEMENS SPINDLE MOTORS

• Places the user in a familiar PC environment.

• Parts available for 10 Years after the discontinuation of the control panel model.

• High Speed 48 HP / 36 kW Siemens intelligent spindle motors.

• Break-neck spindle speeds of up to 2250 RPM.

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WINTER 2011

HSFDB PLATE PROCESSING

All New Conveyor Options for Peddinghaus Plate Processors These units provide for a productive and safe environment for the machine operator.

SIDE UNLOADING SYSTEM

The Safe, Labor Saving, and Smart Method to Handle Plate Parts

Step 1: Drops Finished Parts

Peddinghaus is pleased to introduce a new side discharge parts unloading system for your Peddinghaus plate system. The new side discharge conveying system is a heavy duty 965 mm/38 inch wide hinged steel belt unit with a 30 degree incline which delivers the parts to an ergonomic operator height of 865mm/34 inch.

The new heavy duty side unloading parts conveyor is designed to withstand an impact weight of up to 800 lbs (360 kg) and transfer materials up to 1,500 lbs (680 kg) of total weight.

Machine operators and material handlers both praise the new Peddinghaus parts unloading conveyor, “The parts are delivered to me with holes drilled, tapped, counter sunk, and ready for the next operation – all I do is watch them drop on to my table!”

Step 2: Conveys Finished Parts to Operator

“My job is so easy now – we used to have an old fashioned burn table which I had to climb on to dig out parts, with a crow bar and a magnet. Those days are over with the Peddinghaus system!”

STEEL TRACK FRONT UNLOADING SYSTEM (Option 2): Peddinghaus’ Steel Track Front Unloader allows for completed parts to drop from the machine table onto a conveyer system and into a tray at the front of the machine. The container provides easy transportation to the shipping area or work station. Parts up to 600 mm x 2500 mm (24" x 96") (maximum transferrable weight 680 kgs /1,500 lbs) can be unloaded with ease. This system contains one 3048mm x 2185mm (10' 0" x 7' 0") conveyer system driven by a hydraulic pump that can be operated independently of the machine.

Step 3: Ready for Secondary Operation

Step 4: Safe, Smart, Labor Saving Parts Removal

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STEEL FABRICATORS’ REVIEW

Heavy Duty Options for Oversized Plate Peddinghaus now offers an optional oversize drilling package for fabricators who require drilled holes in plate 1-9/16 inch (40mm) and thicker. When it comes to plate productivity Peddinghaus has pioneered some of the industries’ leading innovations. Peddinghaus’ unique approach to plate production which combines ground-breaking material handling methods and efficient production concepts now has been enhanced for the production of oversized plate components.

Extensive R & D testing is the foundation of engineering at Peddinghaus’ corporate headquarters in Bradley, Ilinois. Recently the HSFDB plate processor was tested processing 3 Inch (75mm) thick plate and drilling 2.75 Inch (70mm) holes repeatedly in an effort to enhance tool longevity. It was found that with enhanced engineering techniques, the Peddinghaus High Speed FDB-2500 was able to achieve a tool life twice that of the tool manufacturers’ published benchmark. In some tests nearly 400 holes were drilled without the need to replace an insert!

Peddinghaus’ secret to maximum tool life in oversized plate applications is an optional oversized hole drilling package that allows for high air volumes and MQL mist lubrication that is applied directly to the drilling surface. Using their very own “PeddiCool” brand of vegetable oil based MQL lubrication; Peddinghaus has once again proved that flood coolant is a thing of the past.

“For fabricators who need to drill massive holes in thick plate, we have found a solution that isn’t an offline drilling station and doesn't require the flood coolant mess. Whether you are running heavy plates for monopoles, high-rises, or specialty manufacturing applications the HSFDB-2500 is the all-in-one solution for your production.”

Powerful Plate Drilling for High Tensile Steel HARDOX 500 PLATE DRILLING High tensile strength plate such as Hardox 500 steel proves to be the stock of choice for a wide variety of manufacturing applications. Whether you are fabricating parts for crushers, sieves, conveyors, buckets, or any other item that is required to be wear resistant, this ultra durable plate product proves to be more than effective. Although the impressive Brinnell Hardness of 500 HBW and a tensile strength of 220 ksi (1517 MPa) make this material perfect for rugged applications, it has presented challenges for fabricators looking to cut, drill, and process this durable material. Not anymore!

The Peddinghaus HSFDB plate processor was put to the test and produced superior results when processing continuous production of Hardox 500 plate.

Peddinghaus’ secret to drilling high tensile steel is the robust design and superior precision spindle technology of the HSFDB plate drilling, tapping, countersinking and thermal cutting center.

By applying a powerful 48 HP (36 kW) Siemens smart spindle motor and precision linear feedback system, the HSFDB effortlessly drilled of over 100 holes through 1" (25mm) thick Hardox 500 without the need to change or index a carbide insert. Unlike common burn table systems that utilize chemical based flood coolant systems the HSFDB was able to provide superior tool life with the application of an eco-friendly minimum quantity lubrication system. This means more parts, less mess.

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WINTER 2011

LYLE MENKE Continued from page 2

Peddinghaus: FMA’s Longest Standing Member – 40 Years Strong Peddinghaus Corporation was honored at the recent FabTech International Exhibition in Atlanta as the sole remaining charter member of the Fabricators & Manufacturers Association, FMA, of Rockford, Illinois.

Peddinghaus remains the ONLY company still in operation that signed up with the FMA in 1970. In addition to being feted in Atlanta, Peddinghaus is also featured in the January, 2011 edition of THE FABRICATOR magazine.

It is interesting that Peddinghaus also exhibited in the initial FabTech Exhibition and has maintained a reputation for participating in this show throughout the years.

“Many companies have started and stopped in the steel fabrication industry in 40 years but Peddinghaus has remained a thriving entity through this period in our history.”

NASCC – Pittsburgh: We’re Cooking Up a Great Event!

The Steel City and the NASCC – that is a basic recipe for success!

Add in a large portion of new Peddinghaus machine tool technology, plenty of fresh, new software, pour in some Peddinghaus wit & style, and you have all the ingredients for an outstanding educational and entertaining event!

Booth 402 will be the hot spot to whet your appetite for hot new technology! Our engineers have created three exciting new products that will satisfy your craving for new productivity – and that means profit for you.

Monitor www.peddinghaus.com for NASCC event info as it happens.

The NASCC in Pittsburgh could prove to be the pivotal decision time for your firm.

Remember, your business partner is Peddinghaus Corporation – the Power of One will be on display in Pittsburgh!

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NASCC 2011 PREVIEW

Peddinghaus Will Leave Their Mark on the 2011 NASCC! Explore “The Steel State” with Peddinghaus

Experience The 2011 Fabricators’ Motorcycle Tour – PENNSYLVANIA

on the 2011 NASCC Motorcycle Tour, and witness how fabricators in Pennsylvania use innovative technology to compete in today’s global marketplace.

Join Peddinghaus for first class dining, first class technology, and first class camaraderie on our annual two wheeled expedition leading up to the NASCC in Pittsburgh.

This year’s tour combines a little bit of education and American heritage with stops at destinations that include: • The Harley Davidson York, PA Assembly Plant See how an American Icon is manufactured at the largest Harley Davidson Assembly plant in the USA! • Visit at Kinsely Steel in York, PA A fabricator with an eye for total construction efficiency, learn how this fabricating division of a large organization plans for each step of the construction process.

• Experience the Gettysburg Battlefield Investigate the history of this famous Battlefield which helped mark the turning point of the American Civil war.

• Visit Sippel Steel in Ambridge, PA Discover how Peddinghaus drills, saws, angle lines, and material handling put production at a whole new level.

VISIT US AT

• Visit Stewart Amos in Harrisburg, PA Take a tour of this first class facility and ask how when they needed a drill for their largest job ever, how Peddinghaus made it happen!

• Tour the Amish Country of Lancaster County See Pennsylvania Dutch country at its finest, from the seat of a motorcycle with good friends!

For details visit

NASCC2011.PEDDINGHAUS.COM AT THE 2011 NASCC

Continued on page 22

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STEEL FABRICATORS’ REVIEW

NASCC 2011

Experience World Class Technology at the NASCC!

Continued from page 20

Nobody does the NASCC like Peddinghaus! This year will be no different with groundbreaking technology released yet again at this world class steel construction exhibition. There’s simply no show like it in the world!

WINTER 2011

At Phoenix in 2009 the industry marveled when Peddinghaus released the world’s fastest carbide drill – The BDL-1250/9D, most powerful plate processor – The HSFDB-2500, and The Versatile Ring of Fire Thermal Processor.

At Orlando in 2010 the game had changed with the introduction of the Advantage 2 Carbide Drill Line – a record breaking achievement, The DG-1250 Miter Band Saw – the Industry’s fastest Sawing Technology, and the AFCPS-833 Revolution Anglemaster – the answer to detail efficiency and versatility.

Pittsburgh in 2011 will be no different – Peddinghaus continues to deliver technology that pushes the industry to a whole new level. Expect to see form Peddinghaus technology and innovation that is the first of its kind the world over.

For more information on the 2011 NASCC in Pittsburgh, PA – USA visit www.aisc.org for details!

2011 Networking Event – Enjoy a First Class Evening with Other Industry Professionals Your source for expertise and purveyor of entertainment – Peddinghaus never disappoints its industry partners at the NASCC! This year will be no different! You may recall Peddinghaus’ past events that included headlining entertainment such as Bill Engvall, Jim Palmer, and Ron White. Don’t miss out on this year’s entertainer whose world class talent is second to none.

For details visit

NASCC2011.PEDDINGHAUS.COM

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24 HOUR SERVICE

ON CALL. ON DUTY. ALL THE TIME. All this means faster customer service,

24 HOUR CUSTOMER SUPPORT

more accurate diagnosis and

Our state-of-the-art Service Center continues to grow in order to serve you even better – and is now available to you 24 hours a day!

most importantly, LESS DOWNTIME for you!

We serve you all the time.

• 60+ trained traveling field service technicians for on site assistance • 20+ knowledgeable telephone technicians – with a collective 70+ years of Peddinghaus field experience • Complete training facility for operators and programmers With Siemens control technology, our service technicians based in Bradley, Ilinois, can assist with fault finding on your machine by simply “logging on”. Our technicians can view your machine in operation from our Service Center and make any correction on the fly – this keeps you running.

TRAINING Peddinghaus is the industry leader in customer service backed by more experienced telephone and field technicians than anyone else in the industry. Classroom and on-site training assures customers have the knowledge to ensure fast machine start-up and quicker return on investment.

REMOTE DIAGNOSTICS The powerful multi-axis Siemens control unit provides fully operational CNC control functionality with an integrated, user-friendly PC platform. This efficient control system provides remote diagnostic capability which brings the expertise of the Peddinghaus service staff directly to your machine.

NEW - LIVE WEBCAM SUPPORT In addition, our webcam troubleshooting capabilities assists our technicians in Bradley, Ilinois, USA to better serve you by: • Remotely viewing live video footage for easier diagnosis of problems • Recording of video of machine problem areas in hi-definition • Live screen captures • Easy remote web diagnostics software • Retrieve and send for analysis

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GETTING TO KNOW…

Jim Sutliffe VP of Engineering As a technology company the innovation and quality of Peddinghaus equipment is a direct result of the skilled employees within the organization. Peddinghaus’ headquarters in Bradley, Illinois is one of three global manufacturing locations, and houses the engineering departments in charge of developing Plate Machines, Drill Lines, Burning Equipment, Specialized Material Handling Systems and Research & Development.

Spearheading these initiatives is Jim Sutliffe, VP of Engineering.

STEEL FABRICATORS’ REVIEW

Can you tell readers a little bit more about how Peddinghaus’ engineering department is structured?

Can you give us a hint at some of the latest items Peddinghaus’ engineering department is currently exploring?

We have 21 engineers split between our different machine groups and quality initiatives.

There are several mechanical engineering groups with leaders over the Drill, Plate and Burn applications. We also have independent Electrical, Controls, and Software engineering departments.

The burn group has a fantastic machine which will be unveiled at NASCC in Pittsburgh, PA USA. Let’s just say it helps fabricators exploit all the information in their building models to improve accuracy and information transfer.

Also, the international market deals with some big profiles – plate is rolled in excess of 3 meters.

Peddinghaus has some great ideas to respond to the need for bigger, wider, heavier, plate applications. Lastly, the drill group is starting to get creative with how we handle materials. I don’t want to ruin any surprises, but if you come to Bradley or visit us at a show in the near future I would love to tell you more about it in person!

We recently added a Continuous Improvement Department to work closely with manufacturing and customer service. I call the Continuous Improvement process “closing the loop”. It means getting feedback to our design engineers so we are always improving our designs. It means developing metrics so we can measure how we’re doing with our customers. This is a new initiative for Peddinghaus and we are already seeing benefits from our efforts.

Also, being an international company we work regularly with our Global counterparts. Most recently the PCD-1100/3C Advantage 2 was a joint development with our engineers in Gevelsberg, Germany. People fabricate steel differently in the UK from people in Germany from people in Australia from people here in the United States. All of Peddinghaus equipment is designed from a global perspective, with feedback coming from every corner of the world.

Jim, can you tell us a bit about your engineering background in automation and machine design?

Since joining the Peddinghaus engineering department how have you seen fabrication technology evolve?

After graduating from the University of Illinois, I was immediately immersed within the automation industry. At my first job I worked for FANUC Robotics as an Installation Engineer doing programming, field service work, and machine assembly. It was a fantastic experience and a great opportunity for me right out of school. I wound up in Project Management for some key accounts at FANUC which later prompted a career move to Johnson Controls.

With fabrication technology the only thing that is constant is the need for change. As a result Peddinghaus technology evolves faster every year. What has changed the most in the last 2-3 years is the economy and the desire for both efficiency and accessible information.

What benefits Peddinghaus greatly in these areas is the flexibility in our Siemens controls and electronics. People desire instant information and the ability to gather it from anywhere in the world. With some of the products you will see in the near future it will be clear that Peddinghaus is moving in the right direction and staying on the cutting edge of the industry.

While at Johnson Controls, I was no longer working on exclusively robotic automation.

I worked as a Corporate Engineer, a Plant Resident Engineer, a Continuous Improvement and Quality Manager, and then as a Process Engineering Manager. I had been a supplier, a Corporate Engineer and a Plant Engineer so I got to see all sides of the relationship an organization has with their machine manufacturer.

All of these experiences benefit me, and our customers today in my role at Peddinghaus.

I have been with Peddinghaus now for just over 3 years now and truly enjoy the industry we serve and customers we work with.

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What do you see as the future of Peddinghaus software – do you have anything in the works you can tip us off about?

We’re starting to do some great things with software. Adnexxus, our Tekla data extractor, is a great new advancement for us. I can see how it will bring a great deal of productivity to our customers whether it is extracting information from the model for scribing or just avoiding the hassle of an extra convert to a common file type such as DSTV. I think you’ll see this area expand over the next 6 to 12 months as we continue to build on the Adnexxus engine.

We also are working with FabTrol and FabSuite so that our newest product, PeddiTrack, updates our customers’ software with real-time production data. The demand for information is there.

We’re responding by providing that information and helping our customers make better decisions about their production process.

Jim Sutliffe (second from left) meets daily with the Continuous Improvement Engineers, Customer Service, and Spare Parts Management team to ensure progressive designs for future machines.

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VOLUME 36

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STEEL FABRICATORS’ REVIEW Washington and Grove Street Bradley, IL 60915 815. 937. 3800 www.steelfabreview.com

PRSRT STD U.S. POSTAGE

PAID PERMIT NO. 157 Joliet, IL

POWERFUL TAX INCENTIVES IN THE USA – USE THEM BEFORE THEY'RE GONE! THE USA'S100% BONUS DEPRECIATION TAX INCENTIVE EXPLAINED…

There has never been a more affordable time to buy a new machine in the

What If I Do Not Expect Taxable Profit This Year?

United States of America.

CARRYBACK tax deductions for an income tax refund

Interest rates are at all time lows and tax incentives are the most powerful they have ever been in the history of the USA. The federal government is making it easier than ever to invest in equipment

For some structural fabricators previous years yielded profits, but also higher tax expenditures. Using the CARRYBACK method, taxes can be refunded from previous years where taxes were paid, assisting you now in today’s complex marketplace. For every dollar of taxes paid in the last 2 years – you are eligible to receive a 100% refund using the CARRYBACK method of tax deductions.

for the year 2011. No matter your size or profit projections for the coming year; you are eligible to benefit from the current tax laws.

What Do We Mean by 100% Bonus Depreciation?

Traditionally when a machine is purchased fabricators are able to write off the value of the machine over several years (conventionally 7-10) as an expense. Every time this machine "depreciation" expense is written off, it reduces taxable income. By reducing taxable income, you reduce the amount of money that is multiplied by your tax rate percentage, therefore reducing the taxes you pay!

How Does 100% Bonus Depreciation Work?

As opposed to depreciating machine cost over a set amount of time, fabricators are now able to fully depreciate the entire machine cost in a single year – 2011, from their taxable income. This 100% deduction in 2011 saves you on taxes NOW, instead of over the normal depreciation time span set by the IRS. This means big tax savings today! Depending on your tax situation, you may expect to save an average of 35% from a machine purchase - this means if a system costs $450,000 – you could save $157,500 from your taxes in 2011! A net cost of $292,500 for that machine tool investment!

Don’t wait! Machines must be installed no later than 12/31/2011!!!!

CARRYFORWARD tax deduction for future tax savings There may be scenarios where fabricators did not have a considerable amount of taxable income in recent time.

Using the 100% Bonus Depreciation law, the value of a machine can be carried forward as far as 20 years from 2011, and deducted from future taxable income. This means an organization will not need to pay taxes until all CARRYFORWARD tax credits are utilized!

What Do I Do Now? Feel free to contact your Peddinghaus Regional Manager to receive a firsthand demonstration on how powerful this new tax incentive can apply to a new machine investment. Each of our USA Regional Managers has been fully trained to explain to you the key benefits of this new tax law in detail.

Peddinghaus Corporation recommends before making any financial decisions using these laws that you contact a trusted tax professional. For more information on 100% Bonus Depreciation and current financing options available to your organization please contact sales@peddinghaus.com.