Peddinghaus Steel Fabricators' Review Fall 2008

FA B R I C AT O R S M A K I N G T O D AY ’ S S K Y L I N E P O S S I B L E

GARBE IRON WORKS

A COMPANY PROFILE ON

Process Minded Means Profit Margins

SCHUFF INTERNATIONAL, INC. Schuff International, Inc. (OTC: SHFK) and its family of steel companies, is the largest steel fabrication and erection company in the United States.

Offering integrated steel construction services from a single source, the 32-year old company is experiencing record growth with major projects in progress throughout the country.

Professional services include design-build, design-assist, engineering, BIM participation, 3D steel modeling/detailing, (L-R) Scott Schuff, President & CEO Schuff International; Ryan Schuff, President & CEO Schuff Steel; and Dave Schuff, fabrication, advanced field erection, joist and Chairman of the Board Schuff International. joist girder manufacturing, project management, and single-source steel management systems.

Major market segments include industrial, public works, bridges, health care, gaming and hospitality, convention centers, stadiums, mixed-use and retail, transportation, and international projects.

See full story on page 4

IN THIS ISSUE

Schuff International, Inc.

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An Interview With Robb Waldrep, Vice President

Partners of Peddinghaus

In today’s steel market fabricators need to control costs and rethink their processes to stay competitive.

For some this may be a call to action but for others it is territory already covered and solutions have been implemented.

(L-R) John, Terry and Ted Peshia; Garbe Iron Works; Aurora, Illinois.

See full story on page 20

NORTHERN WELDARC, LTD. The Power of Family You often read about family owned companies in our industry. In fact these private firms are a mainstay in the steel fabrication and construction industries. But have you ever experience a family atmosphere so profound that after just a few minutes, you felt like you were indeed part of the family — and part of the business? By the end of your visit with the folks at Northern Weldarc, you will understand that blood is thicker than water — and steel builds the future.

See full story on page 24

Oktoberfest Returns

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Peddinghaus Hosts Festivities in New Expanded Facilities

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Garbe Iron Works

(L-R) Zeljko Lepki, Gayle Saprunoff and Shane Saprunoff; Northern Weldarc; Sherwood Park, Alberta, Canada.

Northern Weldarc, Ltd.

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Then & Now

Getting To Know…

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Process Minded Means Profit Margins

Michael Sharp, Peddinghaus President

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STEEL FABRICATOR’S REVIEW

FALL 2008

Embrace Technology‚ Before it Squeezes YOU I have always thought that the term “embrace technology” has a rather odd connotation. Who wants to hug a new laptop computer or cuddle a microprocessor? But we all know the definition is to openly engage in using new technology — and welcome it into your life — and business. Today, it is a matter of financial survival.

Lyle Menke

Proud Past — Profitable Future As you all know, I am one of the many Peddinghaus “old timers”; in November I celebrate my 27th anniversary with the firm. During

This Steel Fabricators’ Review edition is filled with Peddinghaus’ Oktoberfest information. You will see pages dedicated to new technology: machine tools, software, electronic, plasma – but don’t become jaded. Through these printed pages – and by attending the Oktoberfest Open House –valuable informational technologies that will navigate your company through the unknown future can be easily obtained.

But as I use the term “Open House” I realize Oktoberfest has become much more than that.

With the wonderful cooperation and assistance of our industry partners, Oktoberfest has become a true “Global Industry Event”. We are truly grateful for the industry leaders in detailing/BIM software, tooling, nesting software, plasma cutting, MRP software and electronic technologies to join us for this event. Each of these firms brings a high level of technological expertise dedicated to the structural steel and heavy plate fabrication industries.

that time, I have witnessed many business cycles in the structural

Get a Crystal Ball… Better Yet, Learn from the Experts

steel market. Some ups and some downs — but one thing remains constant: the companies that embrace new technology are the ones that weather the storms and are PROFITABLE!

All of us at Peddinghaus are so pleased with the participation of our business partners at Oktoberfest because they share our enthusiasm for the future of the steel construction industry.

What is most gratifying to me is that these industry leaders — and Peddinghaus business partners, freely share their product knowledge with all attendees. Our partners realize that sharing technologies is an advantage for all of us who participate in the marketplace.

They unselfishly explain their vision of the future in their particular field of expertise from software to plasma to tooling to electronics. New technologies lead the way.

If you look at the “line up” of presentations for the Oktoberfest Seminar, you cannot help but be impressed with the message these industry leaders are bringing.

This is just a random sampling of what to expect from these industry leaders — and Peddinghaus business partners.

• Big Tonnages in Small Shop Spaces • Fabrication Technology – Use it Today, Plan for Tomorrow • Plate Nesting Software – Solutions the Reduce Scrap • Fabrication Information Management • BIM and Interoperability • Plasma Technology and the Structural Steel Market • Increasing Profitability for the Small and Medium Sized Fabricator

AISC Addresses Oktoberfest As an industry, we all battle alternative construction methods, and we share in the congratulations to the AISC for increasing market share over concrete on our behalf.

The past couple of years have seen significant enhancement.

That leads me to another great Oktoberfest presentation: AISC management people will present “A Futuristic View of the Market” at Peddinghaus. We thank them for their active participation, assistance, and guidance. We also thank John Cross, V.P. Marketing for the AISC who will not only speak at our seminar, but will also assist the local symphony in their performance on Wednesday night. Don’t miss it!.

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STEEL FABRICATOR’S REVIEW

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FROM THE CEO Fall is back!

As I am writing this article, Summer is fast coming to a close.

The kids are coming back from summer camp, and are getting ready to return to school. Vacations are winding down for many people, and it seems that everyone is getting back in the “swing of things”.

Anton Peddinghaus

Oktoberfest Countdown…

In Bradley, I know that things are definitely in “full swing”. Why? In the past issues, I have touched on the issue of Oktoberfest, and in Bradley and Andrews, SC the countdown has begun. As of this writing, we expect 1,500 to 2,000 guests to enter our doors for this Oktoberfest Global Industry Event.

As the CEO, I first of all want to thank our wonderful, loyal customers who consistently support us, and make these types of industry events possible.

I wish to also thank all Peddinghaus employees who have worked tirelessly to make Oktoberfest a success. When you attend, you will witness five (5) new products under power. These range from our new high speed plate machine and beam drill lines to new saw and angle processing to the Ring of Fire — bigger and better than ever! These newly developed prototype machines carry the next generation of Peddinghaus machine tool expertise for the industry.

As you know, we have moved into our new 45,000 square foot manufacturing facility, but much more has been growing in Bradley. We have completely renovated our offices — from Customer Service to Engineering to Accounting — everything is “spruced up” for our Oktoberfest guests.

I have to admit one thing about Oktoberfest though, when we started planning a few months ago, it seemed like a fairly simple task — now, I wake up at 1 a.m., “What was I thinking six months ago?”

Share Thoughts, Share Ideas, Share Jobs — at Oktoberfest I know your calendars are always full, but I urge you to take a couple of days from your day to day routine, and take an opportunity to look at the international “big picture” of structural steel construction.

Keep Your E-mails Coming I am deeply moved by the many e-mails that I have received from you in our industry concerning the editorial in our last issue. Though the market may be a bit uncertain at this time, many of you are taking the opportunity to truly examine your shop production methods.

At Oktoberfest you will have the opportunity to discuss our industry — from shop practice to market opportunities with some of the top fabricators in the world: MIDDLE EAST FABRICATORS

They have built the magnificent skyline of Dubai

CHINESE FABRICATORS

Who hasn't looked at the “Bird’s Nest Stadium” and wondered at the steel framework

UK FABRICATORS

Busily preparing for the 2012 London Olympics

USA FABRICATORS

Petro-chemical to stadiums to school construction: They all attend Oktoberfest!

Oktoberfest is the only world wide event totally dedicated to the structural steel and heavy plate fabrication markets. We focus on steel construction and the industry that we all serve.

Call Tami Day at 815. 937. 3800 ext. 210 or tami-day@peddinghaus.com for your room reservation, so you will have time to enjoy everything that Oktoberfest has to offer from machines to seminars to entertainment.

Speaking of entertainment, we have booked something for everyone to enjoy: classical music by the Kankakee Symphony on Wednesday; the unsurpassed Lou Holtz on “Vision for Success” on Thursday, the Pendragons — straight from Las Vegas to magicians, extraordinaire, and on Saturday, the BareNaked Ladies, a world renowned band for everyone to enjoy. Oh yeah, we may throw some fire works in along the way.

When was the last time, you enjoyed a personal venue with this type of entertainment? Does anybody remember Woodstock?

As stated many times, your shop layout is the most vital aspect of shop profitability, and Peddinghaus has added knowledgeable personnel, who know steel construction and fabrication. Not just hole drilling, but painting, welding, blast cleaning, etc. everything for the fabrication shop.

Make your dream of increased profitability a reality with improved methods and new technology. I know of two separate fabricators who took this path of making a shop investment now, and their return on investment was nine months.

Toast with a “Half Full Glass” at Oktoberfest You know me by now, I am the eternal optimist. I end my articles with the same comment about looking at the glass as always half-full. Please come to Oktoberfest and join me in a toast to the accomplishments of the greatest industry in the world - steel construction. I am proud that together we all make the world's skyline possible. Don't worry, after our toast, I'll fill your glass to the top!

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FALL 2008

SCHUFF INTERNATIONAL, INC.

An Interview with an Industry Leader

Schuff is responsible for shaping much of the Las Vegas skyline – and now has a state-of-the-art office complex there.

About Schuff International, Inc. Schuff International, Inc., which is headquartered in Phoenix, AZ, owns and operates eight steel fabrication plants and two steel joist manufacturing plants. Companies include Schuff Steel Company located in AZ, NV and CA; Schuff Steel-Midwest Division located in Overland Park, KS, Ottawa, KS, and Denver, CO; Schuff Steel-Gulf Coast, Inc., located in Houston, TX; Schuff Steel-Atlantic, Inc., located in Orlando, Fl, Albany, GA and Atlanta, GA; Schuff Steel Management CompanySouthwest, Inc., located in Gilbert, AZ; and Quincy Joist Company located in Quincy, FL and Buckeye, AZ. Schuff employs approximately 2,000 people throughout the country. For more information, visit www.schuff.com. The following is from an interview with Robb Waldrep, Vice President of Schuff International, Inc.

Company history: When was Schuff founded?

Schuff is a third generation operated company.

Dave Schuff and his teenage son Scott founded the company in their garage in 1976. Today the company has emerged as the largest steel fabrication and erection company in the United States.

Scott Schuff is president and CEO of Schuff International. Inc. and his son, Ryan Schuff, is president and CEO of Schuff Steel Company located in AZ, NV and CA. Dave Schuff is chairman of the board and still works daily at the company’s corporate headquarters in Arizona.

More detailed history from Robb Waldrep: Schuff Steel was founded in 1976 by Dave Schuff (father) and Scott Schuff (son). Initially, the company self-performed erection but subcontracted their steel fabrication. In 1985 they had the opportunity to acquire the Marathon Steel plant near downtown Phoenix, AZ and recognizing the opportunity, Dave and Scott bet the business and bought the Marathon facility.

Behind the capacity of this plant, they ventured into territories beyond Arizona, including Nevada and California. By living its credo of “We Make it Happen”, Schuff Steel was able to grow into the premier fabricator/erector in the Southwestern U.S. By 1995.

The Schuffs were fairly certain that they knew the recipe for success in the steel business, so they took a chance and acquired another competitor in Gilbert, AZ, nearly doubling their fabrication capacity. The results were fantastic, giving them confidence that they could effectively grow the business through strategic acquisitions. In 1998, Schuff Steel took the company to Wall Street, using the proceeds to acquire successful steel companies in Florida, Georgia, Texas, and California. The idea was to diversify geographically by buying quality companies throughout the sunbelt. This would help enable Schuff to weather swings in local economies in addition to strategically aligning the company to service the lower half of the continental U.S., an area that was projected to see continued growth.

One of the companies acquired in 1998 was Quincy Joist Company, a successful joist manufacturer in Quincy, FL. Immediately following their addition to the Schuff group, plans were set in motion to expand Quincy’s services to the west coast. In 1999, Quincy Joist opened a new plant facility in Buckeye, AZ to service the western U.S. Effectively managing all of these different companies posed some logistical challenges so in 2001, Schuff International was created to serve as the parent company for the Schuff group in order to oversee

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STEEL FABRICATOR’S REVIEW

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SCHUFF STEEL

LANDMARKS OF STEEL University of Phoenix Stadium corporate operations.

In 2001, Schuff Steel Management Company was created in an effort to better compete on smaller projects while still providing clients with the best service. Located in Gilbert, AZ, Schuff Steel Management Company manages steel projects with the proven Schuff tools and systems but operates without in-house fabrication or erection capacity, instead subcontracting this work to other qualified vendors.

President and CEO of Schuff International, Scott Schuff, always embraced technology as a necessity for success in the steel business, constantly looking for ways to make the company more efficient and more competitive.

Recognizing that construction was heading towards a design-build/design-assist delivery method, Scott determined that Schuff would need to become a leader in these methods and in 2003 he launched the Schuff Design Group.

This in-house team of engineers and designers focus on creating the most efficient steel designs possible by taking into consideration the project's specific requirements and construction plan. Led by Jay Allen, a nationally recognized structural engineer, the Schuff Design Group has become a huge success, helping general contractors and owners save millions of dollars over the past five years.

In 2005, Schuff International purchased the former Havens Steel plant in Ottawa, Kansas as a means to expand its reach into the Midwest.

In 2007, Schuff opened a new fabrication plant near Flagstaff, AZ to further expand capacity and service the CA market better, particularly Northern CA. In 2008, Schuff opened its second plant in Houston, TX to service the needs of the growing industrial/energy markets.

How has your market changed and how has the company evolved from its founding?

Schuff Steel Company originally started as a turnkey steel management company. As the steel market became more competitive, Dave and Scott Schuff realized the advantages of providing integrated steel construction services from a single source. Today Schuff offers clients design-build, design-assist, engineering, BIM Continued on page 6

This stadium is the home of the Arizona Cardinals and the 2008 Superbowl, Schuff spent years in the planning and fabrication of the steel roof and roll-out field. The entire project was modeled in XSteel which then provided the opportunity to take the CNC programming directly to the Peddinghaus equipment. In February, 2005 Schuff performed a record roof lift, 5,400 tons, the largest such lift in North America.

Invesco Field at Mile High, Denver, Colorado This stadium, completed in 2001, provided its own challenges to the Schuff team. As with many sporting venues, the traditions of the past could not be forgotten. In this case that meant that mock-up sections of the steel risers were required to make sure that the new field would create the same atmosphere for the fans.

Chase Field, Phoenix, Arizona Constructing the first retractable roof baseball stadium in the United States meant that there wasn’t a road map to follow. In addition, this field would be the first ballpark to feature natural grass in a retractable roof stadium. Building the trusses on the ground and lifting them into place was one of the many critical challenges overcome by the Schuff team. “One of the other challenges was that I had to drive by daily and drop off drawings”, says Scooter Esmeier, VP of Production for Schuff.

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SCHUFF INTERNATIONAL, INC. Continued from page 5 participation, 3D steel modeling/detailing, fabrication, advanced field erection, joist and joist girder manufacturing.

From a physical standpoint, Schuff expanded since its founding and now operates eight steel fabrication plants and two steel joist manufacturing plants. This geographical and market diversification has helped Schuff remain profitable even during economic down-turns over the years.

Another driving force behind Schuff’s evolution and ultimate success is our investment in advanced technology and our innovative approach. Schuff's use of technology has allowed the company to grow 40% without increasing staff. This is extremely important in an industry where the pool for skilled labor is shrinking. Without implementing our own proprietary software, other advanced technological systems and equipment such as Peddinghaus,

Schuff would not have been able to accomplish sustained growth, while remaining profitable.

the increased cost of energy are all critical issues facing the steel industry today.

Schuff also has one of the most comprehensive design/build departments in the industry. When Schuff is involved in the preconstruction phase of a project, our design/build team has the potential to save our customers substantial amounts of money through value engineering and innovative construction techniques.

Utilizing our design/build services and lean delivery methods, we can also streamline the construction schedule.

A need to be more efficient and precise can help combat these issues.Technology and the movement toward 3D modeling is changing our business for the better. We are able to construct extremely complex projects in significantly shorter timeframes.

What do you think of the industry today?

And where will the industry have to go tomorrow?

The price of steel, economic fluctuations, unprecedented worldwide demand for steel and

All markets benefit from advanced technology and information sharing. There is an emphasis on green or LEED™ building, which will be able to expand more rapidly than past construction trends because of BIM and the other technological advancements.

Those companies who fail to adapt to technology will soon be left behind. There’s no such thing as standing still in this business. Steel companies are either adapting and moving forward or slowly becoming obsolete.

SCHUFF STEEL & PEDDINGHAUS — MAKING IT HAPPEN (Albany, Georgia facility – 102,000 square feet)

(Gilbert, Arizona facility – 145,000 square feet)

Chad Goss, Plant Manager at Albany Georgia, next to their new PCD 1100.

Rob Sampson, Plant Manager at Gilbert, Arizona, next to their FPB 1500/D.

(Flagstaff, Arizona facility – 132,000 square feet)

(Houston, Texas facility – 104,000 square feet)

Pat Denbo, Plant Manager at Flagstaff, Arizona standing on the bridge of their ABC-1250.

Eddie Gonzalez, Plant Manager at Houston Texas, next to their new BDL 1250-510 Band Saw.

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STEEL FABRICATOR’S REVIEW

What new technology or positive industry developments have you experienced recently?

Schuff has embraced technology to increase efficiencies throughout each stage of a project starting in the design phase. Using our own proprietary software, in addition to other leading products on the market, Schuff has built technically challenging projects that would have been too costly and time prohibitive to build just five years ago. A perfect example is a project we just completed, The Crystals at CityCenter, the largest privately financed project in the country. Without advanced software, specifically 3D modeling, this project would have been too expensive and time consuming to construct.

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SCHUFF STEEL

LANDMARKS OF STEEL The Palazzo What do you say about an almost 70,000-Ton project? Other than “wow”! Some of the notable trivia items are that the steel was fabricated all over the United States, All of the Schuff plants had their hands in the completion of this behemoth of a project. There were 13 acres of steel being covered, (yes, acres)! In that acreage there are over 50 stories above ground and 5 below with no available room on-site to store materials.

Schuff is also a leader in Building Information Modeling (BIM). Chris Fischer, Business Systems Development Manager for Schuff International Inc., is an expert on BIM and has been instrumental in developing a comprehensive program for Schuff. Additionally, Chris speaks at a number of organizations throughout the country on BIM topics.

In addition, Schuff has developed Schuff Steel Integrated Management System (SSIMS).

SSIMS is a proprietary system that utilizes 3D modeling along with our key business tools as a means to increase project efficiency through real-time reporting. Unique to SSIMS and Schuff is the company's ability to track every piece of steel used on a project starting with procurement, through fabrication to project completion. Every piece of steel is barcoded and tracked at each phase of the project. SSIMS has created more precision scheduling for project management teams and has freed up valuable time as it eliminates company-wide calls to Schuff's fabrication plants on the status of each project’s order.

Throughout the construction phase, SSIMS tools visually depict a 3D model that illustrates exactly where and what steel has been installed.

SSIMS enhances monitoring, scheduling and helps prioritize construction methods. It also helps the general contractor and others involved on a project visualize the cost and scheduling implications of design revisions. This gives the team the ability to make the best decisions for how to accommodate those revisions. By visually depicting a project and its development, everyone involved can view the project’s progress, in addition to challenges caused by outside factors.

At Schuff, we encourage and solicit innovation from all levels of the company. We dedicate teams throughout Schuff to research new concepts and ideas. We also encourage each of our Continued on page 12

Paris Las Vegas / Eiffel Tower Replica It can be a daunting task to replicate an icon of international fame. It is not likely to be repeated. In Las Vegas, of course, there are always the other considerations of how quickly you can get the task done. The fact that it could be an impossible to do in the first place is not an option in Las Vegas. A cross-section of the legs of the tower form a rhombus shape assembled on a curve, not exactly an everyday type of structure. Without the advanced 3D/BIM modeling tools of today, the entire structure was modeled using only Autocad. Without the 3D, imagine the difficulty of creating fixturing for the legs. Special tooling was devised to use with the Peddinghaus anglemaster to create the appearance of rivets with the modern technology of a TC bolt.

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FALL 2008

PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS

Fabrication Information Modeling and why it’s important for Building Information Modeling.

How can the often complex structural steelwork supply chain be organized to the benefit of all involved, enabling the necessary individual competitive advantages throughout contracting, while delivering complete project management facilities to the Engineering team? The answer lies in a very real and direct implementation of the long expounded BIM or Building Information Modeling concept.

It is clear that the immediate future lies in specialized industry de facto and best of breed databases that integrate as far as possible and inter-communicate across the entire supply chain. With this in mind and as a result of unique positioning and significant knowledge of the structural steel engineering, detailing and fabrication industries, AceCad has developed a complete single source solution from engineering design through detailing, fabrication and ultimately erection. This solution, which AceCad has called Fabrication Information Modeling, has been brought about through best of breed integration of StruCad, the Worlds leading 3D structural detailing system and StruM.I.S .NET, the ultimate fabrication management system for steelwork contractors.

Benefits specifically to the engineer include integration with leading analysis systems for instant CAD model import, coupled with advanced connection design to facilitate realization of cost effective connections rapidly, without multiple RFI and variations - to the mutual satisfaction of the architect, engineer and fabricator. With automatic fabrication and general arrangement drawing production, freeware model and drawing collaboration and CNC data generation, the project can be managed more effectively. This project management is taken a step further through production, as the data generated from the 3D model populates the management information system needed for multi project fabrication – the circumstances of most steelwork contractors. From estimating and tendering, through to purchasing and stock, nesting and routing, the system facilitates all the tasks of the steelwork contractor.

With bar coding, budgetary control and analysis, coupled with instant reporting, progress can be monitored from anywhere in the world over the internet. The entire production process can be tracked real time in the 3D model, such that an enquiry may be made of any component by any member of the project team and the exact status revealed. With integrated erection and phasing facilities, detailed planning of complex sites in combination with freeware model viewing tools enables complete assembly clarification.

Fabrication Information Modeling brings benefits across the supply chain to each function, while facilitating rapid detailing completion and the industries leading automatic drawing production. Together with efficiency and productivity advantages across the entire production process and complete project management and collaboration tools Fabrication Information Modeling is the off the shelf solution of the future – available now!

Come learn more about FIM at this year’s Oktoberfest where AceCad Software will be exhibiting and presenting!

Using BIM to Build Better Software While the Building Information Management (BIM) concept has been talked about in the industry for years, different industry organizations have distinctly different BIM definitions. Despite the lack of a universal definition, however, the main goal of BIM is the same: to reduce the loss of information as the project moves through each phase, from initial planning to facility operation.

A common BIM misperception is that true information sharing between project partners can be achieved by buying the right software. But BIM is not using a single software application in all facets of the project; at its core, BIM is a collaborative process that enables project partners to work together.

Bridging the Information Gap The advent of CIS/2 and IFCs have enhanced – or at least allowed for – communication between software, and SDNF, KISS and other material exports have helped stem the tide of information loss. But currently, true round tripping between software – eliminating any information loss – is not feasible. As data and models are exchanged between project partners, there is no way to keep the information as updates and changes are made to the model.

With six distinct stages on a project – planning, design, detailing, fabrication, construction and building use – the potential of information loss from one stage to the next is great. In its ideal form, BIM would be used to bridge the information gap by enabling all members on a project to add to a fully relational digital model without data loss.

Building with BIM: In an ideal BIM environment, the line between project phases – and project partners – blurs over time as knowledge grows. The end result is cost and time savings as projects are streamlined.

For the Lou Ruvo Brain Institute in Las Vegas, Nevada – designed by architect Ronald Rosell of Gehry Partners – Connected Structural Group imported the layout into SDS/2 to use as an overlay as they worked on the model. This improved accuracy and reduced error by eliminating repetitive input.

Building BIM from the Ground Up Design Data pioneered the concept of importing and exporting data to and from other software products. Today, SDS/2 still provides more links for more data than any other CAD system in the steel industry. Yet it is more through partnerships, communication and coordination – and less about what software is being used – that interoperability can be achieved.

Design Data is applying that BIM approach to enhance software that further facilitates communication between all project partners.

Are you IN? That's the philosophy behind the Interoperability Network (IN), a Design Data-hosted event created to bring together major players in the structural steel industry. The objective of this development-driven forum is to discuss interoperability and develop new ideas between software developers that will further advance project collaboration.

IN will include booths that allow companies to speak directly to users, as well as collaboration tables that enable the attending companies to work together. The end result will be software that improves interoperability through all phases of a project.

Some of the companies who will be attending this year’s Interoperability Network include Peddinghaus, Autodesk, Controlled Automation, FabSuite, FabTrol, Shop Data Systems and Vernon Tool.

Learn More about BIM Design Data will be speaking about BIM at Peddinghaus’ Oktoberfest celebration on Thursday, September 25th at 4 p.m. and Saturday, September 27th at 11 a.m.

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STEEL FABRICATOR’S REVIEW

S OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS

Improving Speed and Efficiency in Steel Fabrication FabSuite is a steel fabrication management software program that can help you improve your speed and efficiency with regards to the every day challenges that you face as a steel fabricator.

FabSuite will help support you in the job/contract bidding process, job input, production and shipment, piece tracking, purchasing, inventory control, and job cost accounting processes that every steel fabricator faces on a project. Each program can be customized to your specific needs to make FabSuite more usable for more people. FabSuite delivers a smooth and continuous flow of information from a project's inception all the way through its final completion and job-costing.

Hypertherm Plasma — PAST — PRESENT — and Future! See it at OKTOBERFEST! Peddinghaus and Hypertherm have been in partnership for over a decade. Their engineering teams continually work together and develop plasma cutting solutions to keep customers competitive in the structural steel markets.

Plasma’s changed a lot over the years. Early plasma systems had issues with cut quality, consumable life, and reliability. But not any more. Today’s plasma is markedly different from the plasma of yesterday and for the most part, those differences are due to the efforts of one company: Hypertherm.

Many consider Hypertherm the world leader in plasma cutting technology. The company, which makes all its products right here in the United States, devotes more resources to plasma research and development that any other company. The number of advancements made

by Hypertherm during its 40 year history are too long to list – the company holds at least 75 patents-but it includes technology aimed at making plasma cutting better, faster, and less expensive for people. For Hypertherm, it all comes down to reliability and performance.

“We know the reliability and performance of our systems has a direct impact on the success of our customers,” said Hypertherm president Dick Couch. “If our systems aren’t the best they can be, our customers aren’t as profitable as they could or should be.”

The gold standard for mechanized plasma today is Hypertherm’s patented HyPerformance plasma. Hypertherm currently offer two models-the HPR130 and HPR260. HyPerformance plasma is different than conventional plasma in that it can cut the same thickness at faster speeds using less than half the power of a regular system. One of the most remarkable things about Hypertherm's HyPerformance plasma however is its cut quality. The edge angularity of metal cut with HyPerformance plasma is so good it meets ISO cut quality standards, the same standards used for laser cutting. Furthermore, the dross that forms on the underside of the cut is nearly nonexistent, so shops don’t have to spend a lot of time on secondary operations.

Hole quality is another area where the evolution of plasma is quite apparent. The ability to cut perfectly round holes with no lead-in divot and minimal tapering has long been a difficult achievement with plasma cutting systems. Not anymore. A coordinated effort between the part program, the CNC controller, the torch height control system and the plasma make it possible to cut perfect holes. By combining a little art and science, Hypertherm is able to cut very nice holes in steel plate.

Continued on page 10

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SUMMER2008

PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS Continued from page 8 the tool. Carbide is extremely brittle, so unwanted tool movement will cause insert breakage.

For comparison, Super Cobalt is 3-5 times tougher than carbide grades developed for ferrous alloys. Obviously, environmental conditions can have a great effect on the performance of carbide tools.

Hypertherm continues to invest in the future with projects that will further improve the capabilities of its plasma cutting systems. Engineers are working tirelessly on technology that will enable consumables to last even longer than today. Efforts are also focused on creating tighter cutting tolerances and improved beveling capability. Hypertherm also remains focused on making systems that can cut even faster thus reducing operating costs even more.

For users of these higher performance machines, AMEC offers the GEN3SYS® Drilling System. This unique high performance replaceable tip drill delivers 30-50% higher penetration rates versus other replaceable tipped products. GEN3SYS® inserts are AM200® coated for maximum heat resistance, allowing for increased tool life. These tools are made of C1 carbide, the most forgiving grade available. GEN3SYS® holders are available in 3, 5 and 7 times diameter lengths allowing the user to choose the right tool for the application. This unique holder also offers a cylindrical shank to minimize tool run out.

High reliability, near perfect cut quality, fast cutting speeds, and longer consumable life mean businesses can get more done in less time which ultimately means more money at the end of the day. Perhaps that explains why more of the world’s cutting tables come equipped with Hypertherm than any other brand.

Hypertherm representatives will be at the Peddinghaus Oktoberfest for the entire week.

Make sure you stop by their booth to see the latest HPR plasma technology.

As you can see, there are a lot of choices in the types of drills that are used in your beam and plate manufacturing. The correct drill matched with the correct machine will allow the user to maximize output while minimizing downtime and tool failures. You can talk to your Peddinghaus distributor, Engineering Representative, or AMEC for assistance in selecting the right tooling. Because the right tool can simplify the most challenging jobs.

Cutting Tool and Machine Developments Increase Production Over the past 3-5 years, there has been a revolution of sorts in the structural beam machining industry. New drill designs, coatings and the introduction of carbide to this industry have literally cut drilling time by over 50%. In order to do this successfully, the design of the machines has been enhanced to increase rigidity and spindle speed.

On the cutting tool front, the development of high performance replaceable tipped drills has allowed fabricators to maximize the throughput on their existing beam and plate drilling machines. Most of these tools are made from Super Cobalt, with TiAlN coating. Super Cobalt is a grade of high speed steel that offers good tool wear without sacrificing too much toughness. There is, however, a trade off between wear resistance and toughness. When wear resistance is increased, toughness goes down proportionately and visa versa. The TiAlN coating allows for better tool life in the mist coolant applications commonly found in this industry. TiAlN is the standard coating for the Super Cobalt substrate utilized in AMEC's T-A® Structural Steel Drilling System products.

With the recent introduction of higher performance beam and plate drilling machines, such as Peddinghaus' BDL line of machines, the structural fabricator can utilize carbide cutting tools. The advantage of carbide over high speed steel is the increase in wear and heat resistance that carbide offers.

Carbide allows the user to run 30-50% higher spindle speeds while increasing tool life of the drill insert.

In order to successfully use carbide, machine rigidity and tool run-out are of the utmost importance. As discussed earlier, the higher the wear resistance, the lower the toughness of

SigmaNEST is the leading CAD/CAM automatic nesting and NC programming software for profile cutting, punching, drilling, and combination machines. SigmaNEST offers packaged solutions tailored to particular manufacturing and business needs, as well as add-on functionality to automate many processes on the shop floor, including Solid CAD translators, inventory control, and work order tracking. In addition, SigmaNEST offers a DSTV file converter, as well as a custom designed post processor for Peddinghaus Plate Processors.

SigmaNEST is translated into many languages and supported locally around the world.

Visit SigmaTEK during the Peddinghaus Oktoberfest or go to www.sigmanest.com for more information.

Photo courtesy of Valley Iron

This combination is the right choice for machines that are more than 3-5 years old due to the spindle speeds used (commonly under 1000 RPM) and other environmental factors. Another option that is available to customers using these machines for holes greater than 5/16” deep would be AMEC's GEN2 T-A® Drill Insert with AM200® coating. This product allows longer tool life by offering unique geometry features that extend life, while improving hole quality. AM200® coating offers increased heat resistance over TiAlN, further extending life. Since these inserts are made of Super Cobalt, they also offer the toughness required to survive the harsh beam drilling environment.

SigmaNEST Software

Company History SigmaTEK Systems, LLC is headquartered in Cincinnati, Ohio - close to the heart of the US manufacturing industry. SigmaTEK also has facilities in Australia, China, India, Italy, Germany, Japan, Netherlands, Spain, and the UK, along with an extensive distributor network. SigmaTEK was founded by a group of manufacturing and engineering CAD/CAM experts with many years experience in the field of optimization and automation. The first SigmaNEST software package was installed in 1992. Since its formation, the company has experienced steady growth. Today, there are more than 6000 SigmaNEST customers worldwide. SigmaTEK is able to finance significant R & D investment out of its own resources and venture capital. The development staff includes a high proportion of graduate engineers with extensive experience in the industry. SigmaTEK has approximately 100 full time employees.

SigmaTEK Systems produces the highest quality software technology.

Oktoberfest Kevin Keane, OEM Technical Manager of SigmaTEK, will be presenting information at Oktoberfest on the cohesiveness of SigmaNEST for plate processing, in particular the Peddinghaus family of plate processors. SigmaNEST's easy-to-use interface takes advantage of the sophisticated features the Peddinghaus Plate Processer offers. Key topics include automation of the programming process, part and job tracking, as well as stock library utilization.

FALL 2008

STEEL FABRICATOR’S REVIEW

Photos courtesy of Valley Iron

S OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS PARTNERS OF PEDDINGHAUS

Peddinghaus customers who use SigmaNEST can see increased efficiency in material utilization (up to 10%) in combination with the job tracking functionality, faster creation of programs, superior cut path sequencing for faster machine operation, and a reduction in scrap through remnant tracking. SigmaNEST uses a modern SQL database that gives users the tools for powerful integration with ERP systems and MRP software.

Fabrication Technology: Use It Today, Plan for Tomorrow During the Peddinghaus Oktoberfest in September you'll learn how the automated exchange of CNC data between Tekla Structures and Peddinghaus machinery will improve your fabrication efficiency today and how new technology innovation will lift fabrication to a higher level in the near future. More and more fabricators use Peddinghaus machines as the backbone to their fabrication process and it is important to keep those machines fed with a constant stream of work. Tekla Structures accomplishes this by automatically creating CNC files from the 3D Steel Detailing Model and feeding directly to the Peddimat software and Peddinghaus machines. This reduces the need for personnel to program the CNC machines manually from 2D detail drawings and thus improves fabrication accuracy and expedites delivery schedules.

Many fabricators today, large and small, have taken advantage of the interoperability between the Tekla Structures 3D Models and the Peddinghaus machines. A few fabricators that span that broad range include: • Schuff Steel, Phoenix, AZ • Steel-Tech Industrial, Corona, CA

• Steel Fab, Charlotte, NC • Orsolini Welding and Fabricating, Chicago, IL

By working closely and sharing information, Peddinghaus and Tekla bring fabrication technology to a new level. This is accomplished by using the Tekla Open API (Application Programming Interface). Peddinghaus uses the Tekla Open API to extract sub part locations and marking information relative to the main part of a shipping assembly. This allows the fabricator not only to communicate drilling, coping, and cutting information to Peddinghaus machines (like the current industry standard DSTV does), but also sends fitting information, thus reducing the need to manually transfer sub part mark and location information from 2D drawings.

Come take a part in enhancing your fabrication process by visiting the Tekla Structures booth and attending our presentations at this year's Peddinghaus Oktoberfest.

You can visualize how the exchange process works today in a project from Schuff Steel, detailed by Action Steel Detailing. From a connected 3D Model, to Peddimat Software, to the Beam Coper on the shop floor, then verified dimensions with the 2D Drawing that came from the 3D model, and finally perfect fit-up at the jobsite.

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SCHUFF INTERNATIONAL, INC. Continued from page 7

SCHUFF STEEL & PEDDINGHAUS — MAKING IT HAPPEN (Phoenix, Arizona facility – 400,000 square feet)

divisions to take ownership for its company. As a large corporation, we need to retain a degree of standardization but realize that each division intimately knows and understands its geographical area. With that said, we are always open to different views on how to improve and grow further.

When did you purchase your first Peddinghaus machine?

Schuff Steel purchased Marathon Steel in 1985. Part of the purchase included a Peddinghaus machine that Marathon had purchased in the early 1980s. This machine excelled when increased productivity but consistent quality was paramount. Since then, Schuff has purchased many more Peddinghaus machines and they all have delivered just as the first one did.

How has purchasing Peddinghaus machines impacted your company?

According to Chris Fischer, Business Systems Development Manager for Schuff International Inc., Peddinghaus has allowed Schuff to increase the amount of steel fabricated while simultaneously decreasing the amount of rework because of the machine’s superior accuracy.

Rick Vogt, Plant Manager at Phoenix, Arizona, next to their FDB 2500.

(Orlando, Florida facility – 144,000 square feet)

The equipment has also helped Schuff grow with less skilled labor. This is extremely important in an industry where the pool of skilled workers is shrinking. In some cases, Peddinghaus equipment can perform the work of five to six men. Because skilled workers in our industry are extremely valuable, Schuff does not displace employees; we retrain them to perform other activities.

Technology and the superior Peddinghaus equipment have also improved project schedules. Equipment speeds up the fabrication process, which in turn, affects a project's completion date.

The ability to deliver projects in an accelerated timeframe is a tremendous competitive advantage in the construction industry.

Name one item about your company (or yourself) that most people are not aware?

Mike Hendrix, Plant Manager at Orlando, Florida, next to their BDL 1250 /3.

Most people are not aware that Schuff International, Inc. and its steel companies, is the largest steel fabrication and erection company in the United States, with 2007 revenues in excess of $730 million.

(Ottawa, Kansas facility – 154,000 square feet)

Unless a client, general contractor or engineer has worked with Schuff, many companies are not aware of our design/build capabilities and the cost savings our expertise brings to a project. Under the leadership of Jay Allen, executive vice president of sales and engineering, Schuff has one of the most comprehensive design/build capabilities in the country.

Innovation and progress have kept Schuff growing when others were in decline. Schuff continually strives for ways to improve the fabrication and erection process. Using equipment from Peddinghaus ensures that we can maintain a high quality product for our customers; we will never sacrifice quality for just quantity. Selecting a reliable equipment provider is crucial to the uptime of that equipment; after all, machines only make money when they are running. Schuff continually searches and selects software, hardware, and technology solutions that work together to create a path toward increased productivity and profitability for our company. These tools all enable Schuff to bring their steel expertise to the table, resulting in a better project for all involved.

FALL 2008

Steve Bones, Plant Manager at Ottawa, Kansas, next to their Anglemaster.

Hosted by

P E D D I N G H A U S C O R P O R AT I O N BRADLEY, ILLINOIS USA SEPTEMBER 24 — 27, 2008

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STEEL FABRICATOR’S REVIEW

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2

BDL 1250 D This new high-speed Structural Drill line puts the power in the right places.

We know structural steel, and we know drilling – we have put it all together in this benchmark machine!

Peddinghaus Corporation Bradley, Illinois September 24 thru 27, 2008 The Peddinghaus Oktoberfest provides the opportunity for you to network with structural steel fabrication leaders from around the world, including Europe, South America, Middle East, Africa, Asia and North America. Peddinghaus will display 25 machines under power; Drills, Saws, Anglemasters, Copers, Ironworkers, etc.

In addition, six new, cutting-edge machines will be introduced to the industry during the Oktoberfest festivities.

1

HSFDB 2500 This new 48 hp (36kW) high-speed Plate Processor with Rotary Tool Changer that travels with the spindle – powerful, fast, productive!

3

Ring Of Fire A 360 degree Thermal Processor – bigger and better than ever. Precision is personified in this flexible unit designed for any structural steel application: beams, tubes, channel, angle, plate – the Ring of Fire does it all!

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STEEL FABRICATOR’S REVIEW

4

The Liberator If improved productivity and less man-hours-per-ton is your goal, this 5-axis, single-torch, oxy-fuel cutting machine is a can’t miss. It can cope and cut beams, profiles, channels, plates, tubes and angles — if you can draw it, the Liberator can cut it!

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6

800-600 A-3200 Band Saw If you do multiple sawing of any shape and need it cut fast and accurately, you’re not going to want to miss this machine. Just saying “fast” does not do it justice!

“ I am directly involved in equipment selection for Schuff International, and I am visiting Oktoberfest to see their latest machines — especially the new high speed drill line and plate machine with rotary tool changer.”

Scott “Scooter” Esmeier Schuff International Phoenix, AZ

5

“Peddinghaus always brings new

Towermaster APS 2063

machines to the marketplace, and

Angle Iron processing with six hole punching capability, part marking and single cut efficiency has never been so easy!

we are eager to see them demonstrated under power —Oktoberfest is a wonderful opportunity.”

Dennis Maddox (L) & DeWayne Deck Den Col Supply Denver, CO “I am planning on attending the Peddinghaus Oktoberfest as it is a true industry event that gathers global fabricators for networking and experiencing new technologies.”

Bob & Pat Killelea James Killelea & Co. Ltd. Rossendale, Lancashire UK

Stay all day and into the night!

World class entertainment including...

• Authentic Bavarian Oktoberfest Band – straight from Munich • Enjoy the classical music of the Kankakee Symphony • Hear the unsurpassed Lou Holtz on “Vision for Success” • Direct from Las Vegas, Magicians/Illusionist, the Pendragons • And Saturday night we wrap it up with the BareNaked Ladies world renowned band Enjoy breakfast, lunch and dinner in our new Oktoberfest facility.

Come for the technology... stay for the hospitality!“

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STEEL FABRICATOR’S REVIEW

SUMMERG 2008

Oktoberfest Prese

Fifteen industry leaders – and our partners – will exhibit each day of the Open House in a trade show environment to answer your questions, including:

SIEMENS Elk Grove Village, IL

DESIGN DATA (SDS/2) Lincoln, NE

SHOP DATA SYSTEMS Garland, Texas

FABSUITE LLC Williamsburg, VA

TEKLA Kennesaw, GA

FABTROL MRP Eugene, OR

OCEAN MACHINERY Ft. Lauderdale, FL

KENNAMETAL Latrobe, PA

GUTSCH & EXNER SOFTWARE Gottingen, Germany

SUMMER2008

STEEL FABRICATOR’S REVIEW

entation Schedule

PEDDINGHAUS TOOL DIVISION Bradley, IL

ALLIED MACHINE & ENGINEERING Dover, OH

AISC Chicago, IL

SIGMANEST Cincinnati, OH

ACE CAD Exton, PA

HYPERTHERM Hanover, NH

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STEEL FABRICATOR’S REVIEW

It has been nearly a decade since the last Oktoberfest occurred. In that time a lot has changed at Peddinghaus and we’re ready to show the world how Peddinghaus is changing the future of structural steel and heavy plate fabrication.

Labor saving capabilities help you answer the demands of today’s market and enhance your bottom line. This year’s Oktoberfest attendees will witness the unveling of 6 new machines designed and manufactured for just that purpose. These machines will build the skylines of tomorrow.

In addition, attendees can experience live demonstrations of the Peddinghaus machines below, which are currently serving the structural steel fabrication industry and building skylines all over the world today.

FPB 1800 Plate Processing System Exceptional CNC nesting software with the technologies of hydraulic punching for any shaped hole, contour thermal cutting and carbide part marking.

FALL 2008

BDL 1250 Beam Drill Line / DGP 1270 Bandsaw The BDL’s 9 spindle efficiency and exceptional drilling accuracy combines with the DGP’s fast paced and accurate miter cutting to minimize scrap and maximize tonnage.

Peddimax 110/140 Equipped with a precision machined slide which provides a true 90 degree approach to every work piece – punch, shear, or notch.

Peddicat Ironworker The powerful 50 ton Peddicat is a punching, notching, and shearing marvel with an integrated hydraulic power pack for flat and angle stock and a swing-away material stripper.

800 – 600 A 2000 Band Saw Designed to process all structural steel shapes for 90 degree cutting with the quickest, most efficient method in the world today.

Advantage PCD 1100 Structural Drill Line Powerful drill capacity with multi-spindle design all in a compact shop footprint.

DG 1100 Miter Band Saw Fast, accurate miter cutting to structural shapes and profiles from 90 degree cutting up to 30 degrees right and left.

ABCM 1250/3 Structural Burning System Combines patented Roller Feed accuracy with a multi-torch thermal cutting system providing an automated solution for complex structural burning and coping.

260 DG Bandsaw With a 10"x11" capacity and a 2HP motor, this small saw can be a useful tool in any fabrication facility and an unbeatable value.

Material Handling Cost-effective shop layouts centered around efficiently designed and manufactured material handling systems.

Come for the technology... stay for the hospitality!

Anglemaster AFPS 643 Combines the technologies of hydraulic punching and shearing with automated carbide part marking.

For more information contact Tami Day at 815-937-3800 (ext 210) or e-mail her at tami-day @ peddinghaus.com

Tower Master APS 2063 High speed solution for automated triple tool punching, shearing, and marking of angle iron.

PEDDINGHAUS CORPORATION 300 North Washington Avenue Bradley, Illinois 60915 Phone 1-815-937-3800 Fax 1-815-937-4003 www.peddinghaus.com

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GARBE IRON WORKS

Process Minded Means Profit Margins

Accuracy is no accident – Garbe Iron Works has what it takes for every step in the process.

“Some of the biggest problems come from pieces arriving late or fabricated inaccurately,” Ted Peshia says. “A fabricator never loses money faster than when they make costly mistakes in their fabricating which can be solved by accurate CNC machinery,” he adds.

(L-R) Terry Peshia, Don Cerny, Sam Haldiman and Bill Smith.

Project Organization Leads To Profitability A fabricator that lives by this mantra is Garbe Iron Works in Aurora, Illinois. Maintaining a reputation for accuracy and on-time delivery, Garbe Iron Works takes a different approach to industry challenges. Their experience in erection has taught both Terry and Ted Peshia what problems an erector can face. When approaching a project, they first look at their final goal – erection with ease centered around high accuracy in fabrication and project preparedness.

In 1964 Terry Peshia began his career in steel as an Ironworker at Garbe Iron Works.

While working his way through college he had aspirations to become a hospital administrator.

Terry got a taste of the steel industry and since then has never looked back. Now instead of working for hospitals, Terry builds them. Since his start in steel construction 44 years ago Terry has held titles that include: President of the American Institute of Steel Construction, President of the Central Fabricators Association, and currently CEO of Garbe Iron Works.

With Terry Peshia surrounded by a staff that includes talented individuals such as: President Sam Haldiman, VP of Production Bill Smith, VP of Technical Services Don Cerny and Terry’s two sons, John & Ted Peshia, Garbe Iron Works is now stronger than ever.

Founded in 1919 Garbe was originally owned and operated by Frank B. Garbe and in the seventies his son F. James Garbe took over operation. After nearly 90 years the Garbe family still owns the property and once a week Mr. Garbe enjoys visiting the shop that still proudly bears his name.

The Fastest Way for a Fabricator to Lose $10,000.00 HERE’S THE SCENARIO: Your beams have been drilled, coped, welded, painted and have finally arrived at the job site. All of your fabrication work is being lifted to an erector — perched high in the air on the steel, strapped to his safety harness and ready to start erecting. After much positioning and planning, shipping and lifting — your bolt holes don’t match up and have been drilled in the wrong place. What we have here is an expensive and time consuming situation in need of resolve which could have been easily prevented.

The Peddinghaus FPB-1800 gives Garbe the cutting edge when processing plates of all shapes and sizes.

Peddinghaus and Garbe Iron Works: Industry Partners Garbe Iron Works is proud of their tonnage capability in a small shop space. All of the materials start outside utilizing Peddinghaus’ patented Rollerfeed technology. The Midwestern elements pose no threat to operation whether it is sunny or snowy the job always gets done with Peddinghaus.

“The drill line sets the tone for the shop,” states Ted Peshia. Their Peddinghaus BDL-1250 has proven to be the strongest and most accurate drill line in today's market. Utilizing today's laser measurement technology to ensure that no erector gets disappointed by inaccurate hole drilling Garbe Ironworks saves themselves from the extremely costly side effects of misplaced fabrication. Angles and fittings depend on the beam holes and if these holes are in the wrong place all detailing effort goes out the window.

For over forty years Peddinghaus and Garbe Iron have been working together to create fast and accurate fabrication. The equipment in Garbe’s shop includes: A Peddinghaus Anglemaster AFPS 623 Angle Line, a Peddinghaus FPB-1800 Plasma and Plate processing system, a BPL 1000/5 Beam Punch Line, a DG-1100 Bandsaw, and a cutting edge Peddinghaus BDL-1250/C drill line – the predecessor to the all new BDL-1250/D drill line.

Continued on page 24

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STEEL FABRICATOR’S REVIEW

FALL 2008

GARBE IRON WORKS Continued from page 22

“The Drill sets the tone for the shop.” – Ted Peshia

Running two lines into the shop from outside also gives Garbe Iron Works the ability to respond to any job requirement without compromising short lead times. The efficient material handling helps Garbe Iron move their materials with ease. Once material has been painted and fabricated they employ a unique straddle carrier that condenses timely truck loading into a mere ten minutes.

Running a BDL in tandem with an 1100 DG Band Saw gives Garbe the capability to run continuously without a need for a crane.

As Terry Peshia turns over Garbe Iron Works to the next generation of management he remains active in the steel industry. His place as chairman for the American Institute of Steel Construction is solidified as he plays an active role in the organization. He continues to

If you were to ask Terry how he remembers his first piece of Peddinghaus equipment he may ask you to have a look for yourself. The original machine they purchased in the early ’70s is still in operation today – a testament to the durability of Peddinghaus equipment.

An Eye on the Future The best way Garbe Iron Works has prepared for the future is by taking part in the ever evolving technology our industry has had to offer. A customer of the very first drafting and detailing software, Garbe continues to find new ways to sharpen their competitive edge in today’s market.

Utilizing a unique straddle carrier, Garbe has the ability to load trucks with finished steel components in a mere 10 minutes. network with people engaged in steel construction and having never missed a Peddinghaus Oktoberfest Terry doesn’t plan to start now. He plans on attending this upcoming September and looks forward to learning more about what kinds of technology Peddinghaus will be bringing to the table and meet fabricators from all

over the globe. After all — this business is made up of partners... sharing a drink leads to sharing a job. Networking with fabricators is a great way to build relationships that will continue to pay dividends in the future.

One man can run both the angle and plate lines at the same time.

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STEEL FABRICATOR’S REVIEW

FALL 2008

Northern Weldarc, Ltd.

The Power of Family Allen and Shirley Holtz originated Northern Weldarc Ltd. in Edmonton, Alberta October 8, 1971 with two employees. The main work at that time consisted of oilfield buildings and equipment repair for construction companies. Their first shop was 40x100 ft with an office in the shop.

Gayle –Allen and Shirley’s daughter – fondly recalls time in the shop helping her Dad, and assisting her Mom in the office. As in any family business, everyone pitches in to help.

The Family that Works Together…

Like any enterprise, family companies experience tough economic times too.

The difference is they weather the storm together, as a family. As many of us recall, 1981 was a tough economic year, but led to a newfound market for Northern Weldarc — structural steel fabrication.

Shayne Saprunoff started in 1986 as a laborer, and then a journeyman structural fitter. This shop experience proved vital, as he turned his knowledge into estimating various projects. When Allen was sidelined with medical issues, Shayne stepped in as General Manager to continue the growth of the firm.

Most of the original employees remain with the company, with many celebrating multi-year anniversaries of employment. By the way, these employees never feared that a machine would replace them – they had faith in the Saprunoffs and their own ability to grow the company – as a team and as a family.

Akhurst Machinery & Peddinghaus — Extended Members of the “Family” When Shayne and Gayle Saprunoff were evaluating equipment for their structural shop, they sought experience from a familiar source: George McCarthy of Akhurst Machinery.

Akhurst is the local machine tool distributor in Edmonton, and George is well versed in structural steel fabrication.

“We knew George for many years, and appreciated his expertise and honest candor in our discussions”, says Gayle, “but it was still a big jump – a real leap of faith for both Shayne and me.”

“George never ‘over sold’ us on a piece of equipment, and we used his guidance to buy the system best suited to bring Northern Weldarc into the CNC methods of structural steel fabrication,” comments Shayne.

George McCarthy

Peddinghaus PCD Drill and Saw Line — the Perfect Fit

The family business continued to thrive, and in the Fall of 2000, NWL purchased 2.57 acres in Sherwood Park, Alberta, Canada – just east of Edmonton. They started building their new facility with over 25,000 square feet and ready to attack the vibrant structural steel market.

After examining all the competitive machines, Northern Weldarc chose the Peddinghaus PCD 1100 drill with accompanying 1250-510 band saw.

Albert Leong is the operator for the Peddinghaus FDB 2500 plate processing system and appreciates the productivity when processing base plates, gussets, splice or any detail connection in minutes.

The Peddinghaus drill/saw system consists of a PCD 1100 and 1250-510 band saw. With Rogelio Demana at the controls, Northern Weldarc is operating under a “just in time” production mode which saves inventory dollars and meets fast track projects.

Continued on page 28

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ONE CHANGE LEADS TO 1,000 OTHERS.

Only SDS/2 lets you make them simultaneously.

Even the smallest adjustment to a structure can send detailers scrambling to recalculate hundreds, if not thousands, of connections. With the connection intelligence of SDS/2, every time you make one change, the system automatically identifies every affected connection throughout the structure. Even the fabrication drawings and reports are automatically updated. SDS/2’s connection intelligence improves productivity and accuracy, delivering a great return on your software investment. Contact Design Data today for more information.

www.sds2.com Copyright © 2008 Design Data, Inc. All rights reserved.

800.443.0782

402.441.4000

e-mail: info@sds2.com

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FALL 2008

NORTHERN WELD ARC Continued from page 26

A material handling system – complete with cross transfers – completed the purchase. The System was installed in September 2006, and the impact was immediate.

According to Shayne Saprunoff, not any “baloney” here, only facts that made the difference for Northern Weldarc: • In 3 months, Northern Weldarc increased overall production by 35% • They paid off their system investment – including machines – in 12 months • They easily process 400 tons per month, and pick/chose “profitable” jobs • Their goal is to process 500+ tons per month with the same number of people • 35 shop employees on a two shift basis

Processing Plate — FDB 2500 Makes Sense for Any Size Fabricator With tonnage growing continually, Shayne had a decision to make – how can he keep up with his plate connections? Suppliers provided delayed shipments which impeded production, and meeting deadlines. Here is where the Saprunoffs made another “leap of faith”. They purchased a new Peddinghaus FDB 2500 High Speed plate processing system.

“It’s simple really,” advises Shayne, “I can buy plate when I need it, and monitor my fabrication shop accordingly.”

“Never again do I have to adjust my fit up and weld schedule because a supplier didn’t commit to a shipment date. The new Peddinghaus FDB 2500 was installed in January, 2008, and is running well.”

Peddinghaus Roller Feed technology has the ability to withstand the harsh Canadian elements with no stop in production.

Cash Flow — the Biggest Boost Peddinghaus Brought to Northern Weldarc It all adds up for Gayle and Shayne Saprunoff and their Peddinghaus investment: • Decreased Inventory Levels = Just in Time Fabrication • Fast Reaction to Job Changes = Controlling Shop Costs • Accuracy in all phases of Fabrication = Faster Invoicing • Faster Invoicing = Faster Payment Northern Weldarc now specializes in the oil and gas, pulp and paper, and petro chemical industries. They are committed to the highest standard of workmanship, customer satisfaction and above all, the health and safety of all employees, customers and contractors.

They continue to strive to manufacture the highest standard of quality products possible and are committed to constantly improving their products, services and training to meet their customer’s requirements.

Even in Edmonton’s harsh winters, material handling systems outside operate efficiently and save valuable shop space for more sophisticated fabrications that increase profits.

How does Shirley Holtz, the founder of Northern Weldarc, feel about the business today?

“The kids are doing a pretty good job,” says Shirley, “but I need to check on them every now and then to make sure they are OK…” Sound familiar? It’s just like family – the reassuring feeling that Mom is there to show her approval – and make sure it’s going OK. At Northern Weldarc, Mom is right – they are doing fine.

Shirley Holtz, Founder

FALL 2008

STEEL FABRICATOR’S REVIEW

HOLEMAKING

Presenting Kennametal's TM

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VISIT OUR OKTOBERFEST BOOTH!

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Call 800.446.7738, visit www.kennametal.com, or contact your local authorized Kennametal distributor.

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©2008 Kennametal Inc., Latrobe, PA l All rights reserved. l A07-266

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GETTING TO KNOW‌

Michael Sharp Peddinghaus President

STEEL FABRICATOR’S REVIEW

My day to day contact with Peddinghaus in those days was John Holland. I spent many days driving John around the Mid-West visiting fabricators. It was during this time that I began to truly learn about the structural steel fabrication industry, and the more I learned and the more people I met convinced me that I wanted to focus my career in this industry.

The rest of the story is that John got a promotion and he hired me as his replacement.

SFR: What different kinds of roles have you played in your career?

MS: In my 30+ years working in the machine tool industry I have had the opportunity to explore many aspects of the business. I began in sales and must admit it is my passion but along the way I have worked as a quality control inspector for a farm equipment manufacturer, service technician for a band saw manufacturer, represented three outstanding distributors, and of course worked for Peddinghaus.

My 18 years with Peddinghaus has also provided its own variety of opportunities and challenges.

I was hired as a regional manager, became the plate division product manager, General Manager, and currently, President.

SFR: How did you first come to Peddinghaus?

MS: I was working as a machine tool salesman for a distributor in the Mid-West selling equipment manufactured by a number of well known manufacturers. One of the lines that I represented was Peddinghaus Corporation. I had worked with various individuals associated with Peddinghaus over the years and always found them to be professional and knowledgeable. I also had become acquainted with the quality of Peddinghaus equipment and service.

FALL 2008

SFR: What brought you to fabrication?

MS: The fabrication industry is driven by individuals who are honest, hard working, and enjoyable to be around. Over the years I had the opportunity to work with many different types of companies and individuals; none better then the people associated with the fabrication industry. In many cases it truly is a familylike industry.

Michael explains to visitors the dynamic growth of Peddinghaus Customer Service.

SFR: What kinds of change have you seen in Peddinghaus since you began?

MS: The first time I ever visited the Peddinghaus factory in Bradley, Illinois was on a sales trip with Mr. Fred Havens of Havens Steel in Kansas City.

At that time the Peddinghaus facility in Bradley was a very small part of the Peddinghaus global operation. The TDK 1000 drill lines were produced in Germany and sent to Bradley for electrics and hydraulics to be added.

Since that first visit I have seen many changes at Peddinghaus; increased employment opportunities for the community; new and exciting technical advancements in equipment; larger and more productive manufacturing facilities; and tremendous increases in our customer support group. These are but some of the changes I have seen since I began working directly for Peddinghaus.

Equally important to me are the things that have not changed at Peddinghaus since I first became associated with the company. An amazing number of individuals I met on my very first visit are still employed at Peddinghaus.

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MICHAEL SHARP Continued from page 30

This gives the company a rock solid core group of employees who are able to pass on our corporate culture to our many new employees.

The philosophy of building solid machines and providing excellent customer service is still the same today as it was many years ago.

SFR: How can you describe the trends you’ve seen in the industry lately?

MS: The structural steel industry, as well as many other manufacturing industries must adapt to this era of changing skilled labor availability. There have been many articles written on this subject but the fact is that the number of individuals who understand and appreciate the opportunities that our industry offers them is shrinking. This is a major influence on the manufacturing world and is forcing many fabricators to rethink the way they run their operations. As always with change, some will adapt and some will not.

SFR: In what ways do you see fabricators adapting to the ever increasing competition in today’s market?

MS: The fabricators who are adapting to the changes in the market place are taking advantage of all of the opportunities available to them.

Over the years I have seen the overall physical size of structural shops shrink, the number of fitters and welders per shop shrink, and the amount of automation dramatically increase.

The tremendous growth and acceptance of BIM software, production control software, and advancements is detailing software coupled with the dramatic increase in automation are all working together to keep the industry leaders ahead of the competition.

SFR: How do you feel about Peddinghaus’ expansion in recent time will help our customers stay competitive?

(L-R) John Holland, Steve Farrow and Michael Sharp – Oktoberfest 1992.

SFR: What kinds of innovations is Peddinghaus offering that will help fabricators adapt?

MS: Peddinghaus is constantly networking with our customers and business partners to provide worthwhile innovations to the industry. In general I would say that the Peddinghaus machines are becoming faster, more versatile, and easier to maintain than any of our previous models.

MS: The recent expansions at Peddinghaus are the result of our global customers desires to be more competitive. Our physical expansion allows us to build more machines per month providing our customers with shorter delivery times. These physical expansions allow Peddinghaus to build our own machines more productively thus keeping cost as low as possible.

The greatest expansion at Peddinghaus in terms of man power has been in our customer support group. When I first arrived at Peddinghaus our service department consisted of five individual, all operating out of Bradley. Today that number is eighty-one operating in a global environment.

We will continue to expand as long as our customers want us to.

SFR: In your opinion what do you see as the future of fabrication?

MS: In my opinion we are seeing the future of fabrication unfold before our eyes. It certainly has become a global market and I don't see that trend slowing down. The cost of our raw materials for production will continue to be driven by ever increasing world demand. The simple fact that world demand for steel is increasing implies that there are opportunities out there for savvy fabricators who are able to see and take advantage of them. The future of structural steel fabrication, long term, looks full of opportunities.

In his career, Michael has seen many changes in technology, including BIM modeling software.

Peddinghaus Customer Service department has grown exponentially under Michael’s guidance.

SFR: Any plans on giving up fabrication for the wild west any time soon?

MS: While it is not true that I am a cowboy, in spite of what people might say, it is true that I have been an avid horseback rider and around cattle all my life... and hope to always be.

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The High Speed FDB 2500

The BDL 1250-D

The Ring of Fire

• High Speed Drilling, Taping, Countersinking,

• High speed carbide drill line

• A true “All in One” machine

Part Marking and Thermal Cutting • 8 tool changer travels with spindle • Drills 2250 RPM • Processes plate 3" (75 mm) Thick x 96" (2500 mm) Wide x 20' (6 meters) Long

• Patent pending Smart Spindle II Technology

• Utilizes thermal cutting in a sweeping

• Drills 1800 RPM with Siemens spindle

400° motion • Cuts, bevels, splits, and creates AISC approved bolt holes with ease • Go from fabricating columns to detail parts— ON ONE MACHINE IN A SINGLE PASS

Tel: 815. 937. 3800

specific motor • Cutting edge non-contact laser measurement system • Peddi-Cool eco-friendly tool lube Fax: 815. 937. 4003

300 N. Washington Ave. • Bradley, Illinois 60915

VOLUME 28 STEEL FABRICATOR’S REVIEW Washington and Grove Street Bradley, IL 60915

NEWS FOR THE STRUCTURAL STEEL & PLATE FABRICATOR

www.peddinghaus.com PRSRT STD U.S. POSTAGE

PAID PERMIT NO. 157 Joliet, IL