Peddinghaus Steel Fabricators' Review Summer 2009

A PEDDINGHAUS PUBLICATION FOR FABRICATORS MAKING TODAY’S SKYLINE POSSIBLE V

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STEELFAB OF CHARLOTTE A True Testament to the Power of Partnerships

IN THIS ISSUE SteelFab of Charlotte A True Testament to the Power of Partnerships

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Ros Casares Turning the Key to Unlock the Future of Steel Supply

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Peddinghaus Spain S.A. Manufacturer of CNC Machine Tools and Material Handling Systems 8

Structural Steel Systems Ltd. Fully Remanufactured Peddinghaus Machines

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NASCC Recap Strengthening the Bonds that Hold our Industry Together

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Barone Steel Fabricators Legacy of Craftsmanship – Father to Sons

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Jose “Pepe” Cavazos Getting To Know Director of Latin American Operations

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AS Bond 003 – Quebec, Canada Distributor Spotlight

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South African Fab Shop Tour Mark Your Calendar for November 4, 2009

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ROS CASARES Turning the Key to Unlock the Future of Steel Supply Why is Ros Casares considered the Spanish leader in Steel Service Center and Structural Rafael Bedia knows the Steelwork/Fabrication?

Why do they set the pace value of providing superior in Industrial Distribution customer service. and Transportation Logistics? Because Grupo Ros Casares has become a vital link in the supply chain for modern companies who seek the services of a progressive organization dedicated to customer satisfaction. Ros Casares does it all – from supplying a cut to length steel profile to a complex fabricated member. No job is too big or too small for one of the most advanced steel suppliers in the Spain/Portugal peninsula.

See the full story on page 6

Riding the leading edge of steel fabrication together; Brian Schlenker, Russell Barngrover, Ron Sherrill and R. Glenn Sherrill Jr. know the secret to success – satisfied customers and quality craftsmanship.

“It has been said that a man is known by the company he keeps. And it is no more true than in business, where men are known by the companies they create and the clients they serve.” — This statement by J. Glenn Sherrill, founder of SteelFab Incorporated, is evident today at their Charlotte, North Carolina headquarters. 54 years since its inception SteelFab, Inc. continues to be a family owned and operated organization driven by customer satisfaction and powered by an incredibly talented group of individuals.

Now with six major locations across the United States and over 750 company-wide employees SteelFab has proven themselves to be one of the premier fabricators leading the steel construction industry today. The amount of growth that SteelFab has experienced since their humble beginnings as an ornamental handrail manufacturer is a true testament to the power of partnerships. Proud owners of 14 Peddinghaus machines at their Charlotte location alone, the SteelFab and Peddinghaus partnership has proven to be a winning combination.

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BARONE STEEL FABRICATORS Legacy of Craftsmanship – Father to Sons Located in the heart of New York City (the borough of Brooklyn) is a unique structural steel fabricator with deep family roots. Two brothers, Nick and Ralph Barone, guide the firm with enthusiasm – fed by the kindred spirit of a dedicated work ethic and commitment to quality. This devotion to steel was an inherited trait from their father, Vincent Barone, who was not only a fabricator, but a true metal craftsman.

Brothers Nick and Ralph Barone fabricate efficiently in the core of the Big Apple.

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STEEL FABRICATORS’ REVIEW

SUMMER 2009

Peddinghaus has Been Busy – For You! Yes, we read the newspapers and listen to the media about today’s economy. But Peddinghaus remains busy serving you and our industry! Here are only a few items we’ve been working on since the NASCC in Phoenix:

Lyle Menke

Hola – SFR now Multi-Lingual This issue of the Steel Fab Review marks a milestone for the publication! All future issues will be published in Spanish as well as the English language.

Our editorial staff is humbled by the global acceptance of this publication and we are in awe that our circulation has grown to over 15,000 worldwide.

Our readership is comprised of structural steel and heavy plate fabricators, steel service and stocking centers, general metal working shops and those firms doing business in the steel construction, bridge fabrication, agricultural, mining, railroad and related fabrication industries.

Machine Enhancements • BDL 1250/9D has “tapping” in each spindle for web and flange holes • HSFDB 2500 plate machines capable of HPR 400 amp hy-definition plasma cutting – superlative speed, cut quality and part marking Software Enhancements • Peddimat production tracking software • Check part productivity – or monitor any portion of machine production • Peddimat “Tool Wear” Counter for Peddinghaus drill lines – a great way to monitor tool life with today’s expensive tooling • Improved integration with industry softwares • User Meeting participation: FabTrol (May), Tekla (August) Design Data (September) AceCad (TBA) ISO certification 2001:9008 proving our International Quality Standards Enhanced customer service – Call Center open 15 hours per day

Thank you to our loyal readers and our advertisers.

We salute you!

Mark your calendars for Steel Day 2009 – September 18, 2009.

As noted in the last issue of the STEEL FABRICATORS’ REVIEW, the AISC is organizing an industry wide initiative to promote steel – the lifeblood of our industry.

What is Peddinghaus doing to assist this initiative?

Here’s just a glimpse of what Peddinghaus has planned: We will open our doors to the industry – especially Architects, General Contractors and Fabricators to visit our facility to see world class fabrication machine tools in action.

With our diverse product line, we will demonstrate hole creation in all its methods: • punched • drilled with twist drills • drilled with high speed carbide • holes created thermally with plasma We will host live demonstrations of material handling — beams, columns, tubing, angle, channel Band sawing demonstrations

Peddinghaus R & D – Leading Edge Technology Sure we are working on new machine designs and concepts! Jim Magnuson heads up our Engineering R & D department. Jim is a Peddinghaus “veteran” with over 30 years of Peddinghaus experience as a field service tech AND as our V.P. of Engineering.

Jim and his staff have been working on some great new designs that will totally revolutionize the way you fabricate steel. Interested? Give us a call, and arrange for a visit to Bradley – we’re only 90 minutes from Chicago’s airport. We’ll even pick you up!

Say Yes to NASCC We welcome your thoughts and ideas on topics and features that affect our industry. These are trying times for many involved in our market, so it is important for every industry partner to cooperate and communicate with peers.

Steel Day 2009

say

Another successful NASCC Conference was held April 1 – 4 in Phoenix, AZ. The world of steel construction converged on the new Phoenix Convention Center – consisting of over over 18,000 tons and fabricated by Schuff Steel.

What a perfect setting for such an important industry event!

Peddinghaus wishes to thank Roger Ferch, President; Scott Melnick, Vice President, and especially Ms. Katey Preston, Director of Meetings and Conferences, for their continued dedication to the growth and progress of this conference. The high attendance in a difficult time speaks volumes for the quality of the programs.

Part identification marking via mechanical or thermal methods Plate nesting with thermal cutting via scrap saving common cut line and chain cutting methods

Travel and Learn with Peddinghaus Peddinghaus is also considered the “Unofficial Tour Guides of the Structural Fabrication Industry”.

We are happy to always sponsor tours of fabrication shops in geographic locations throughout the world.

For Steel Day 2009, we will provide the same courtesies.

Let us know your interest, and we will explore the opportunities!

Give us a call.

Network Now In challenging economic times, what is a common business direction? Some advise to “hunker down” and wait it out. Not very sound advice in our opinion. This is a time of OPPORTUNITY! An important business tenet is too always PARTNER UP! Talk to your industry peers, and get their opinion on local markets, industry trends and issues that affect your business. A small investment of your time could be a pivotal turning point for your business. So say “YES” to the future!

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FROM THE CEO Dear Customers and Friends,

I recently spent the July 4th weekend with my in-laws at their home near Lake Michigan in Indiana. As you may know, I was born in Germany, but I have to say that one of my very favorite holidays is the Fourth of July or American Independence Day. For three days, businesses in the USA come to a standstill…

For three days, businessmen forget all about the daily “opportunities” and “challenges” that we all face… (as you can conclude, I’m not a very good liar… business consumes most of our thoughts.)

Anton Peddinghaus

However, after spending time with my family, and sharing the experience of a fireworks presentation with my kids, my perspective began to change. Perhaps it was the expression of awe reflected in my kids’ eyes as they watched a skyrocket explode high in the night sky, but I felt the same feeling about business in the structural steel marketplace – it will soar again and business will only get better.

Perhaps this current economy is a good wake-up call for me and my Peddinghaus teammates.

It certainly brought all of us back to reality – very quickly!

Thanks for Visiting NASCC On the business side, the NASCC this past April in Phoenix was a different kind of success.

My compliments go again to the AISC – Roger Ferch, Scott Melnick, and Katey Preston for their hard work in preparation. The conference was very well attended, and our booth was very busy with visitors/guests and old friends renewing acquaintances. I was very pleased to see so many of you attended Peddinghaus’ Opening Day event that was held at Chase Field in downtown Phoenix. I was very pleased to meet many of our customers and I really enjoyed our lively discussions. This feedback is invaluable as Peddinghaus continually seeks to improve.

Say Yes to the Future – There will NEVER be a Better Time

Additionally, our clients in the Eastern North American time zone have the opportunity for an “earlier start” to keep them productive.

Here’s a service tip that I would like to pass on to all of you. Make sure your Peddinghaus machine is hooked up to a network cable. Also, invest in a simple web camera and interface with your system. These two simple additions will prove to be invaluable when it comes to efficiently diagnosing a problem or question and successfully resolving it.

Summer Reading

Serving You Better… the Peddinghaus Way Despite a tough economy, I am happy to report that we are closing in on a company goal set last year. We are a step closer to full 24/7 customer assistance call center. Our Call Center is now open from 2 am until 5 pm CST. This gives you now over 15 hours of customer service and parts assistance. I have already heard from our international customers how this helps them.

Even though we all get the feeling that the worst is over, I would like to share some information from a book that I truly enjoyed and found quite pertinent to today’s business climate. The book is entitled “How The Mighty Have Fallen”

by Jim Collins.

While reading this book, questions came to mind that I needed to ask myself.

“Was Peddinghaus on its way to taking too much risk?”

“Did we care enough for our core business?”

“Did Peddinghaus become somewhat over confident?”

“Was part of our success just ‘luck’?”

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Don’t be lulled into total inactivity if your business is off a little. This is the prime opportunity to examine your workshop. Take a critical look at material flow, beam handling and hidden overhead costs.

Consult with a Peddinghaus distributor or Regional Sales Manager. We have specialists in shop layout and performance that stand ready to assist you. An evaluation costs you nothing and we supply the engineering expertise. Just take a look at the SteelFab of Charlotte article in this issue.

We have all been advised to think “long term”.

There will never be a better time to invest in the future. Abundant business the past years provided profit for all of us. Government tax incentives are in place to assist your capital investment – now is the time!

Speaking of investment… now is a perfect time to invest in people. Many technical specialists are available for all positions including engineers, detailers and welders. The labor market is excellent now, so take advantage of it!

Enjoy the Summer! No matter your choice of beverage – fill it to the top! Remember… at Peddinghaus… the glass is always MORE than half full.

say

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STEEL FABRICATORS’ REVIEW

SUMMER 2009

STEELFAB OF CHARLOTTE

A True Testament to the Power of Partnerships Humble Beginnings In 1955 J. Glenn Sherrill opened SteelFab near the Charlotte International Airport specializing in furnishing and installing ornamental handrails as well as porch columns. His previous experience as part owner of another structural shop in Salisbury, NC gave him the confidence and knowledge needed to set out on his own. After acquiring the essentials – a portable engine welder, stake bed truck, 300 amp rectifier welder, pipe and bolt threader, a drill press and plenty of hand tools – SteelFab hired its first employee and opened the doors for business.

The two employees that made up SteelFab’s workforce operated out of an old barn while Blanche Sherrill (Glenn Sherrill’s wife) maintained all of the necessary bookkeeping. Over the course of the first fifteen years, the company evolved into fabricating small structural projects including stairs, handrails, and copious amounts of base plates for a local precast supplier. By 1970 revenues reached $600,000 per year. This early success was the company’s first major benchmark in the structural steel community.

A Family Business Is A Good Business In the years between 1970 and 1976 Glenn’s three sons, Phillip, Ron, and Don, entered the business. As with any young businessmen they were full of ideas, ambition and a contagious passion for success. Up until this point, connection materials were produced on an ironworker.

Wide flange and heavy sections of beams were thermally cut by hand and all holes were drilled manually using portable magnetic drills.

The energetic Sherrill brothers brought a new vigor to these processes and looked to automate.

The first introduction to automation was a beam punch line purchased in the early 1980s.

With this initial taste of CNC efficiency SteelFab started fabricating projects of over 1,000 tons for many of the local Charlotte contractors. Realizing that automation was a great way to expedite procedures and cut costs, SteelFab began to explore the future potential.

In the earlier part of the 1990s the partnership between SteelFab and Peddinghaus grew with the addition of their first 9 spindle drill line.

The ability to continue quoting larger projects and fabricating them in a much more efficient process with the automated drilling of heavy structural members was a continued catalyst for innovation. Over time as both companies have grown Peddinghaus and SteelFab’s relationship has continued to evolve at each of their six major shop locations with a list of Peddinghaus work horses that include:

SteelFab’s main office in Charlotte, North Carolina is home to powerful • 7 Coping Machines • 5 Angle Lines • 3 Beam Punch Lines • 4 Plate Duplicators • 3 Plate Processors • 11 Band Saws (including mitered, straight cut, and cold saws) • 7 Drill Lines And the latest addition to their machine shop...

• The BDL-1250/9D high speed carbide drill line

A Dedication To Efficiency SteelFab’s success is not only due to their superior levels of service and dedication to customer satisfaction – but a remarkable sense of efficiency throughout the company. Russell Barngrover, Vice President and Plant Manager is a seasoned steel fabrication veteran who came to SteelFab in Charlotte with a mission – to improve the

The Peddinghaus 823 Anglemaster is still a reliable workhorse even after more than a decade of service to SteelFab.

SteelFab copes with large projects with streamlined shopflow and superior technology like this ABCM-1250/3 coping machine.

The Peddinghaus F-1170 Fabripunch provides a powerful base for plate production.

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Working side-by-side, the Peddinghaus BDL-1250/9D and BDL-1250/9B are no strangers to the jumbo W14x730 columns required for many of SteelFab’s projects.

partnerships in productivity. existing shop and production methods, create the most effective use of space and to cut costs at every level of operations. Having joined SteelFab after the addition of the CNC equipment Russell was tasked with working around existing structures as well as incorporating much of the on-hand equipment.

“The first thing I noticed when I came to SteelFab was that all of the automation was INSIDE of the building! I wanted to move all of the machines outside that we could. You need to have your inside areas dedicated to welding, fit up, painting, etc. Now our copers, angle line,

The BDL-1250/9D and 9B are each paired with Peddinghaus 1250-510 band saws inside this shed. Material is stored on the cross transfer systems and fed from either side using Rollerfeed technology. beam lines, band saws, and cambering machine are all outside in a network of sheds paired with material handling. It just makes sense to do it that way, the Peddinghaus machines are designed for that.”

The fabrication shop in Charlotte is a tribute to much of what modern CNC equipment has to offer. Wide arrays of both new and old technologies are mixed together in a unique environment that creates an unprecedented level of shop flow. Having worked hand in hand with Peddinghaus' shop layout experts, Russell added buildings, poured new concrete foundations and retrofitted the existing facility to create the perfect fit for their shop workflow.

“Greg Carpenter, Peddinghaus System Engineer, was a tremendous help in the design of SteelFab’s current setup. When he visited and did the walkthrough with me here in Charlotte it was apparent that he was very knowledgeable. We have since removed a non-Peddinghaus system that consistently fell short of our standards and installed the new BDL-1250/9D high speed carbide drill line in its place.

We’re now drilling 5" (127 mm) flanges on W14x730 beams in about 39 seconds compared to 2 minutes with our previous drill.” — Russell Barngrover

How fast is the new machine? Russell’s observations reflect that of other BDL-1250/9D users, stating that he has seen as much as a 50% increase in production throughput.

With similar control technology, SteelFab operators are able to switch to any of the other Peddinghaus machines which increases productivity.

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SUMMER 2009

ROS CASARES

Turning the Key to Unlock the Future of Steel Supply Like many successful steel stocking and fabricating companies, Ros Casares started from a humble beginning. Mr. Francisco Ros Casares founded the firm in 1954 as a steel stocking center for the growing metal working markets in Spain. As the firm grew and

• Complete steel supply – an enormous inventory of structural shapes and sizes to draw upon. From profiles to angle iron to flat stock and plate • Complete fabrication ability of structural shapes – cutting, drilling, punching, shearing, blast cleaning and painting • Engineering expertise from project concept through final completion – supported by CAD detailing • Trucking/Transportation logistics to insure on-time deliveries to the job site

prospered, Arcelor Steel purchased a 50% interest in Grupo Ros Casares. However, under the steady management of the family founders, the company continued to flourish financially. With the thought that “a family business is the best business”, in 2001, the Ros Casares family bought back the 50% interest from Arcelor.

Why Peddinghaus Drill & Saw Lines?

Mr. Rafael Juan Bedia Cotarelo is the General Manager of the Ros Casares facility in Aviles. He commented on the history Peddinghaus drill and saw lines have with Ros Casares.

“The first Peddinghaus drill line was installed about fifteen (15) years ago at the Ros Casares facility near Vitoria, Spain. The machine was a Peddinghaus model TDK 1000/9 nine spindle drill line and served us

Mr. Roberto Gegunde, a programmer for Ros Casares, is capable of creating files from within the office and save them to a server where machine operators can easily access them without ever needing to leave the shop floor.

Family Business Prepared for Success With their target set for future growth and expansion Mr. Franciso Ros Casares, current President, and his two sons, Mr. Francisco Juan Ros Garcia and Mr. German Ros Garcia direct the company.

Ros Casares has positioned itself well in the steel construction, steel supply, and general metalworking market in the Iberian Peninsula. With multiple locations throughout Spain – and international divisions in France and Poland, the firm is poised for continued growth. By providing multiple services to the industry, Ros Casares has established itself as the logical source for steel resources for many customers in the region.

A Full Range Of Capabilities What makes Ros Casares such a dynamo in this area? Simple. It boasts a full range of ability making Ros Casares a unique supplier of all steel products needed for any type of project. From simple profiles to complicated sections, Ros Casares has the capability to complete the job. Here are just a few of the services Ros Casares offers customers:

very well over the years. We even moved it to another facility where it still operates today,” says Mr. Rafael Bedia.

“When we chose to expand, we consulted with Peddinghaus who worked very closely with us on all aspects of the purchase. From layout to installation on through the training, everything was explained in detail and handled very professionally.”

“In 2008, we incorporated two more Peddinghaus saw and drill lines into our facilities. We added these new lines featuring the Peddinghaus PCD 1100 multi-spindle drill and the DG 1100 miter band saw and couldn’t be more pleased with the results.”

“We purchased these systems because we understood the need to improve our overall beam productivity. An added bonus to the increased efficiency the Peddinghaus machines brought was the reduced fabrication costs by decreasing our man hours per ton.”

“Why Peddinghaus machines? Their technology is unsurpassed and their machines carry large capacities which suit our fabrication requirements perfectly. The drill and saw lines are fast, strong, and efficient. Absolutely the best there is.”

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The Market Demands – Ros Casares and Peddinghaus Deliver Mr. Rafael Bedia continues…

“At one time in Spain, welded connections were commonly used in the design and fabrication of steel structures. This required many man hours in the fabrication shop and drove up the cost for steel buildings. Now, the bolted connection has replaced the traditional welded connection and has received total acceptance here in our market. Steel buildings can now be fabricated and erected much quicker, leading to a competitive edge for our firm.”

“The Peddinghaus equipment fits this market demand here in Spain perfectly. The productivity and efficiency of the Peddinghaus machines has made us extremely competitive. Our delivery times have gotten even better and we are obtaining new jobs. With the help of the Peddinghaus lines, Ros Casares has been able to grow along with its customers.”

With 2 Peddinghaus DG-1100 band saw lines, Ros Casares expedites cutting processes with unrivaled speed and efficiency.

“Turn Key” Means Everything No matter the geographic location or the market, when a firm can provide a complete package at a competitive price – their chances of receiving the project order is extremely good.

Ros Casares has a 55 year history of providing the “complete package” to its customers in the steel building marketplace. Every structural component from flat sheet to plate to channel to angle iron to beams and profiles are available. Their multiple locations and engineering expertise increase the comfort level for their customers – or their “business partners” as they are referred to at Ros Casares.

Ros Casares operates their business by some basic business principles that remain timeless: • Team work • Responsibility • Sincere dialogue • Determination and resolution • Intelligent organization of the Project When you are developing a project, having a partner who operates by these beliefs is the foundation for success – no matter the size of your “key”!

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Peddinghaus Spain S.A. Service is important to Peddinghaus customers around the world – and Mr. Txema Garcia of Peddinghaus Spain assures they receive the very best care.

Peddinghaus Spain produces world class machine tools for the global market in this state of the art facility near Vitoria, Spain.

Peddinghaus Spain (PESA) was established in 1973 with a manufacturing facility located in Alava, Spain. With over 3600 square meters of floor space, the firm is mainly focused on manufacturing.

Located in one of the most industrial areas of the country, PESA is a direct response to the needs of machinery and equipment for the structural steel, steel construction, steel stocking/warehousing, and related metal working market.

Pesa is a total manufacturer of CNC machine tools and material handling systems. These systems are mainly installed in the European, African, and Asian markets in coordination with Peddinghaus drill lines, saw lines, plate machines and Anglemasters. The PESA Engineering department is specialized in the design and preparation of plant layouts and provides sound advice for optimizing fabrication shop work flow and processing. Each project is different and it is our goal that the customer has the best solution: using minimum interior shop space by placing conveyors and cross transfer systems outside the main shop building. This avoids the costly use of cranes, which increase fabrication costs.

The Peddinghaus material handling systems are modular, and a customer can “start small” with a minimum investment and grow the fabricating system’s capacity as the business flourishes.

Sofia Benguria (right), Managing Director of PESA, and Peddinghaus engineers meet with customers and help them design the perfect layout for their needs and budget.

An effective material handling layout is a priority for progressive steel fabrication facilities – this line was manufactured at Peddinghaus Spain.

Pesa provides trained service technicians who are responsible for installation, commissioning and training on these systems throughout the global market.

Sofia Benguria, Managing Director of Peddinghaus Spain

Juan Manuel Oliveira, Peddinghaus Regional Manager

Universal steelworkers are also manufactured at PESA and distributed internationally. A benchmark Peddinghaus product, the steel-workers maintain a strong, robust design which yields decades of productive use – even in the harshest climates.

Coming months: • We are organizing with ASCEM (Association for the Construction of Metal Structures, Barcelona) a fabricator tour of New York city in the month of October. A similar tour was made in China last year.

• Peddinghaus will also be in attendance as a sponsoring member at the Congress of the ECCS (European Convention for Constructional Steelwork) on September 16 – 18 in Barcelona.

We look forward to seeing all of our industry colleagues at this meeting.

Peddinghaus will work closely with ASCEM (Association for the Construction of Steel Structures) Barcelona for a fabricators tour highlighting steel construction in New York City.

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Spain & Portugal Get A Peddinghaus Team Fabrication Expert

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Peddinghaus Corporation Re-Certified to ISO 9001:2008 Peddinghaus Corporation has recently completed a comprehensive reassessment of our Quality Management System to the requirements of ISO 9001:2008.

Roland Jones is a structural steel fabrication expert with experience in all phases of structural work. From material handling, drilling, sawing and plate processing to blast cleaning and painting – Mr. Jones has done it all!

He will now lend his steel construction expertise to customers in Spain and Portugal by working closely with Mr. Juan Manuel Oliviera, Peddinghaus Sales Manager for the region.

A Production Expert Providing Bottom Line Results Mr. Jones has a wealth of experience in the design and build of fabrication facilities. He has designed many various systems focused on efficient material handling from yard to shop floor – and optimized numerous production lines from processing through fabrication and painting.

Roland can offer practical help and advice to Spanish and Portuguese clients on any issues relating to the removal of processes that cost money, but add no value to the end product. Improvements in these areas will help increase productivity, efficiency and your bottom line profits.

Mr. Roland Jones can be contacted any time through any Peddinghaus global location. Or, you can contact him directly via e-mail at roland@peddinghaus.co.uk, telephone + 34 945 46 5370 (Peddinghuas Espana in Vitoria) or mobile phone + 44 773 899 3680.

The reassessment activities were completed

by NQA-USA auditor Bob Kukla over the course of (3) four-day audits of the facilities in Bradley, Illinois, and Andrews, South Carolina, USA. This accomplishment embodies Bob Kukla (left) of NQA Quality Peddinghaus Corporation’s commitment Assurance congratulates Peddinghaus’ to quality. This revision of the ISO 9001 Adam Gromer (right) on achieving ISO standard was released in November of 2008 and we moved quickly to ensure that 9001:2008 certification status. all new requirements were satisfied within 6 months. Since registered organizations are not required to comply until November 2010, Peddinghaus Corporation is one of the first companies to achieve certification to the new revision.

Peddinghaus Corporation established a Quality Management System in 2000 in order to assure that we continually evaluated and improved our processes with the aim of increasing customer satisfaction.

The auditor sited many areas of strong performance including our Customer Service Department’s training protocol for Field Service Technicians, our commitment to taking preventive action to preclude future problems and the recent certification of all Peddinghaus Corporation welders to AWS D1.1, “Structural Welding Code.”

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SUMMER 2009

STEELFAB OF CHARLOTTE Continued from page 5 “I remember when landing a 1,000 ton job was a big deal. Now we process 1,000 tons in a week! It’s amazing what our machines have done for our capabilities in meeting short deadlines and keeping costs down.”

— R. Glenn Sherrill Jr.

Clearer channels of communication have also opened new doors to the company. By utilizing a barcode system paired with portable computerized tablets, shop supervisors can scan a piece of material and receive the complete drawing and details without ever leaving the floor or calling for assistance.

“All of the new technology we have implemented has truly opened new doors for SteelFab. Last year all of SteelFab's shops combined fabricated over 100,000 tons of steel. That wouldn't have been possible without our Peddinghaus equipment.”

— R. Glenn Sherrill Jr.

Shop employees can scan profiles (above) using a barcode scanner and view complete drawings on a portable computerized tablet (below) – eliminating the need to track down a computer and search through an endless array of drawings.

Poised For Success – How SteelFab Is Staying Strong Now And Into The Future SteelFab is a company true to who they are – a humble group whose pride comes not from their own successes but from the satisfaction of their customers. After a look at where they have been the future is full of optimism at SteelFab. The fabrication shop in Charlotte is still busy and they are prepared for the next upturn in the world’s economy.

“SteelFab is a company dedicated to the customer and that's how we succeed. We truly value the relationships we have created with all of our customers. Our company thrives on repeat business and a high level of quality. I am proud to say that in our over 50 years of business we have not once been involved in any sort of litigation. It's just not in our nature.” — Ron Sherrill

The BDL-1250/9D operator at SteelFab can navigate the user friendly Siemens 840Di control with ease.

“We are very optimistic for the future of the Steel Fabrication Industry. Our philosophy is to look at the long term picture and not just the short term gains.

In our 50 plus years in business we have seen a lot of ups and downs - this isn't our first recession.

Eventually the market will boom again and when that happens SteelFab will be there to reap the benefits. Our partnership with Peddinghaus will play a powerful factor in this next generation of SteelFab’s success." — Ron Sherrill

The inside of the SteelFab shop is machine-free. All drills, copers, beamlines, saws and more are outside the building in small enclosures – creating valuable space for fit-up and welding.

Crane use is minimized with the implementation of a simple material transport system that runs on a set of tracks.

Employees utilize a control to move material throughout the shop without interrupting other processes.

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STEEL FABRICATORS’ REVIEW

SUMMER 2009

Peddinghaus Machines — FULLY REMANUFACTURE D TO THEIR ORIGINAL EXCELLENCE BY The Benefits Of A Full Rebuild

Peddinghaus trained and certified technicians perform a thorough inspection of all SSSL equipment to ensure that the quality of the finished product resembles a brand new Peddinghaus machine. A thorough inspection of all electrical, hydraulic, and mechanical components results in the remanufacture or replacement of aged parts.

Thinking of Buying a Machine Cheaply at Auction? Think Again — Look Out For the Hidden Costs!

USED VERSUS REMANUFACTURED DRILL LINE COST COMPARISON EXPENSE

REMANUFACTURED BY SSSL

AS-IS USED FROM AUCTION

Auction Fee Shipping Costs Rigging Costs Training Costs Warranty Customer Service

None Included FOB Factory Included Included in Price 1 yr Free Parts and Service Factory Direct – Warranty Covered Brand New Guaranteed

Up to 10% $5,000+ $6,000+ $7,000+ No Warranty – $15,000+ Factory Direct – Local or Off Shore?

Replacement = $40,000+ Rarely Without Service Visit - $5,000 Not Included - $1,500+ $15,000+ Unreliable, No Guarantee Est. $10,000 in Repairs Questionable

Electricals Operational

Software Upgraded – Up to Date Installation Included in Price Dependability Reliable Factory Guaranteed Results Future Resale Value Positive

SERVICES OFFERED Plant Layouts Electrical Schematics Machine Footprint

SSSL

AUCTION

Yes Yes Yes

NO NO NO

Yes Yes Yes Yes Yes Yes

NO NO NO NO NO NO

AVAILABLE MACHINE REQUIREMENTS Air Hydraulics KW Requirements Spare Parts List Operating Instructions Trouble Shooting Guide

SSSL Can Help • Machine trade-in value will save you money.

• Remanufacture your old machine or take in trade for an already remanufactured machine.

If you have any questions please call:

630. 244. 4909 www.ssslmachinery.com

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NASCC RECAP To our Industry Friends and Colleagues, On behalf of the entire staff and management of Peddinghaus Corporation, I would like to thank you for your participation in this year’s NASCC conference in Phoenix, AZ. It is remarkable that the 2009 NASCC Conference achieved such a good attendance, while other trade show venues have seen a marked decline the past year. This is a strong testament to the commitment and vision each attendee posseses in regards to the future growth of the steel construction industry.

The Peddinghaus 2009 Motorcycle Fabrication Tour 41 industry professionals joined the tour that traveled across the state of Arizona. As usual, Peddinghaus combined “business with pleasure”. The group visited four various sized structural fabrication shops during the tour.

A big Peddinghaus “thank you” goes to Schuff Steel, Bellemont and Phoenix; Agate Steel, Scottsdale; and TW Steel in Chandler, AZ for opening their doors to the group. It is always interesting for structural shop personnel to compare notes on the latest fabrication techniques.

Through the many networking and social events offered at this year’s conference, the bonds that hold our industry together continued to strengthen. Peddinghaus is pleased to have had the opportunity to bring industry members together to share in the camaraderie. By bringing colleagues together from all over the globe, Peddinghaus assisted in creating positive educational dialogue to chart the course for the bright future of our industry.

Thank you to those who visited Peddinghaus at any of our NASCC networking opportunities:

The tour also included visits to two of the most scenic locations in the world – beautiful “Red Rock” Sedona and the majestic Grand Canyon. Everyone in the group was awestruck by the magnificent splendor of the Grand Canyon – a true highlight of the trip.

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Peddinghaus’ Superb Networking Event: “Opening Day to a New Era of Fabrication”

Peddinghaus Booth 101 It was the place to be to witness cutting edge technology in action!

Peddinghaus was pleased to host approximately 1,000 industry professionals for a very special networking event staged at the spectacular home of Major League Baseball’s Arizona Diamondbacks – Chase Field in downtown Phoenix. As the Gold Sponsor for the NASCC, Peddinghaus took this opportunity to expand industry networking to a new level of interaction.

Peddinghaus was pleased to welcome attendees from all parts of the steel construction industry including fabricators, detailers, general contractors, software engineers, programmers, erectors, AISC members, steel suppliers, galvanizers, and welding professionals.

The evening’s entertainment truly provided something for everyone: • Schuff Steel’s own Project Manager, Jim Madden with his band “Redneck Revolution” • Country music sensation, Whitney Duncan, who thrilled the crowd

Dedicated to technology, Peddinghaus exhibited three new machines at this year’s NASCC – designed for all facets of structural steel fabrication. The lineup included: • The industry’s first true carbide drill line – the BDL-1250/9D • The pinnacle of plate processing – the High Speed HSFDB-2500 • The revolutionary thermal processing system – Ring of Fire – the one machine that truly “does it all”

Join Us in Orlando in 2010!

Thank you once again to those who joined us in Phoenix for another great North American Steel Construction Conference. It is our sincere wish for you to join us at next year’s Conference in Orlando, Florida, and see what we come up with for 2010!

• MLB’s Hall of Fame baseball pitcher, Jim Palmer, with his message of teamwork and perseverance • Great cuisine and enjoyable baseball related games for active participants • An awe-inspiring Grand Finale that left everyone in the stadium buzzing

Lyle Menke VP of Marketing Peddinghaus Corporation

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Barone Steel Fabricators

Legacy of Craftsmanship – Father to Sons Where Were You When the Lights Went Out? The date was July 13, 1977. The time was about 9:30 pm, when a series of events plunged New York City into total darkness. A succession of lightning strikes, compounded by equipment malfunction, literally turned off the lights in New York City. This was the largest power outage ever experienced in such a concentrated area, and it was not a time for the faint of heart.

How did this Blackout affect Barone Steel? Well, Vincent Barone was a miscellaneous fabricator specializing in decorative and ornamental iron gates and fences. The affect of the Blackout proved to be a real boost for his business. Many retailers were seeking security roll-up gates for their businesses and properties not only for decoration but also for protection. Barone Steel Fabricators was on its way with firm financial footing and a reputation for customer satisfaction with superb craftsmanship.

Barone is no stranger to working by moonlight – day or night Barone gets it done.

Barone’s Next Generation: Structural Fabricators Let’s jump ahead to 1993, and the next era of Barone Steel Fabricators. Two energetic young fabricators finally get the opportunity to exhibit their craftsmanship at their first real “paid” fabrication job. Ironically, it turns out that their old Brooklyn High alma mater – Xaverian High School – needed a new decorative fence for the perimeter of their property.

Within months, their first true structural fabrication job – 50 tons for the First Yeshiva Temple in Borough Park, Brooklyn – was completed. The Barone brothers were on the job, and the rest is history.

You Belong in the City…

Fabricating structural steel in the heart of New York City is no easy task. It doesn’t make it any easier when your business growth forces you to consistently seek more shop fabrication space.

Nick and Ralph Barone have moved their fabrication facility FOUR (4) times! They started out with a 2,000 square foot shop; then doubled to 4,000 square feet; then upgraded to 10,000 square feet; finally their present location has over 22,000 square feet of shop space. They are currently in the process of negotiating the

The small shop space at Barone requires machines that pack a powerful punch in a small footprint. purchase of the building next door, which will add another 15,000 square feet – totaling 37,000 square feet of fabrication shop capacity.

All of it within Brooklyn – to continue providing superior customer service to their customer base as well as to maintain their loyal shop employees.

NASCC Conference Provides Basis for Decision Makers As Barone’s business grew, Nick and Ralph knew they needed to make a decision about the future of the firm. As AISC members, Nick traveled to some of the NASCC conferences

(Seattle, Long Beach, and Baltimore) to learn more about the industry and the advantages of machine automation.

Nick was convinced it was time to replace the “M & M’s” (Measuring tape and Magnetic drills) with structural automated equipment.

“We were able to move some of our shop employees off the mag drills into fabrication jobs that were much more productive,” said Nick.

“It opened our eyes to the possibilities – and profitability; we knew then it was the way to go,” added Ralph.

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Barone Accepts Automation Challenge BARONE STEEL FABRICATORS Barone_Image4.tif Continued from page 16 The Barone brothers accepted the challenge of automation with the purchase of a Peddinghaus Anglemaster in 2005 and a Fabripunch F1170 plate processor in 2006.

“It opened our eyes”…

Business grew steadily for Barone, but the brothers knew they were only scratching the surface of their fabrication potential. Then opportunity came knocking.

Ari, the PCD-1100 and DG-1100 operator, started as a painter and material handler but has made an easy transition to machine tool operator with the help of Peddinghaus Technology.

Energy Efficient Peddinghaus Drill Empowers Low Cost Loan “In 2006, the State of New York, “Empire Zone”, was offering low cost loans for small business growth; in a program called NYSERDA,” advised Nick, “this program was based upon energy saving initiatives for business that were environmentally sound. But you had to prove the energy savings”.

The Anglemaster purchased in 2005 was Barone's first taste of true CNC accuracy.

“We investigated purchasing an automated drill line from Peddinghaus – the model PCD 1100 multi-spindle with a material handling system”.

duction, the Peddinghaus guys made a quick recommendation – you need a band saw to complete your drill line. The obvious question was “why?” – we have a good system flow now.

“Examine your throughput, and calculate how much you spend on cutting of sections – then evaluate the value of scrap, remnants, etc that can be utilized with a little more planning…” was the comment.

“We did exactly as Peddinghaus suggested,” advised Ralph, “and we invested in a Peddinghaus DG 1100 band saw that we paid off in about 8 months – a pretty good return on investment.”

“We asked Peddinghaus for assistance, and their Engineers jumped in to help! They showed us many ways that the PCD saved energy – and money for us.

PCD 1100 Energy Saver for Barone “We got a loan at 1% interest from NYSERDA!!

Do you know why? The investigation proved that the PCD was an energy saver for our shop:

The F-1170 Fabripunch is the perfect fit for shops where floor space is limited.

1. The three spindle design enabled multiple holes to be drilled simultaneously 2. The Signoscript marking system saved time and power 3. The compact design saved shop floor space 4. Simply, more fabrication work could be done in a shorter amount of time – saving energy – electricity, gas, etc. – while increasing efficiency The PCD 1100 multi-spindle drill line was installed in October 2007, and has performed exceptionally well. “The drill line expanded our productivity – and is what truly enabled us to grow as a company”, explained Nick.

Miter Saw ‘Completes’ the System About 6 months after the PCD drill installation, Barone invited the Peddinghaus team for a visit to their facility “next time you are in New York…”

All beams – large or small – are no problem for the effectiveness of the PCD-1100 multi-spindle drill line.

Peddinghaus stopped in to visit and surveyed the PCD installation. In evaluating their pro-

With roller feed technology, multiple beams can be loaded and processed in a single pass without the operator needing to leave the control and reload the machine.

New Yorkers Tell It Like It Is! Like true New Yorkers Nick and Ralph will tell you directly – and EXACTLY – their opinion, and what is on their mind. Here are their responses to a few questions.

How has purchasing Peddinghaus technology helped your firm?

“It has not just helped Barone Steel – it has changed our lives!”

“Right now, we feel we can bid any job. Peddinghaus equipment has opened up new markets for Barone Steel.”

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BARONE STEEL FABRICATORS Continued from page 20

The Hotel Le Blue in Brooklyn – yet another Barone project.

This beam had a camber so extreme that they doubted it could be done. But a call to Peddinghaus service showed the way that made it happen.

“A few years ago, if someone came to us with a 50 ton job... it would seem like building Yankee Stadium to us – now we can process a 50 ton job over a weekend!”

“If we didn’t have the Peddinghaus PCD/DG system with the plate machine and Anglemaster, we would need minimum 30 more shop people…”

Is your Peddinghaus PCD/DG saw drill line hard to operate?

“Our drill line operator was formerly a painter! The Siemens control is easy to understand and the machines run like a dream.”

The Barone brothers with their machine operator Ariosto Cruz.

“We love the automation in our shop because the equipment is so accurate and fast; it is a real labor saver for our shop guys. They are happy because it decreases chance of injury.”

How is Peddinghaus service?

“Outstanding! The guys in their call center are excellent!”

“One time we had a severe camber problem with a big column from the mill – a W30x391 that was bowed pretty badly – it almost looked like a half-moon… We called the Peddinghaus service guys, and they instructed us how to adjust the conveyor drives so the rollers could 'free wheel'. The PCD drives took over, and we quickly ran the column with over 60 holes, and it was perfect! All holes, their proper dimensions and all in the right place!”

Plenty of Power for the Future Many times in the STEEL FABRICATORS’ REVIEW, we write about family businesses that thrive in the structural steel fabricating industry.

Firms that have passed from generation to generation; firms with every family member involved; firms with fathers/sons actively involved – you name it.

What makes Barone Steel unique? Two brothers – Ralph and Nick Barone – work tirelessly side by side in operating the business. They work together like “hand in glove”.

What does that mean? Well, not many siblings share the same office for fifteen (15) years. And not many truly enjoy each other’s company.

“We inherited our work ethic from our parents; we each have our own strengths and weaknesses, and we tend to complement each other that way.

Though we are brothers, we never travel the same path.”

How is your market today – Summer of 2009?

“The greatest pleasure for us is to see how every job comes together. Our greatest thrill is to visit a job site and watch it all come together during erection – unbelievable!”

“Obviously it could be better – but we are not complaining. We have work – a nice backlog, and we have just received some additional jobs.

Not high tonnage work, but projects that we can be profitable on.”

Vincent Barone would be very proud of the accomplishment of his family business – no more blackouts – only bright skies and plenty of power!

“Those guys know their stuff!”

“With our Peddinghaus equipment, we are confident bidding on any sized job,” says Ralph Barone.

“Bidding on bigger projects like the one above was once just a dream. But with our Peddinghaus equipment, they have become a reality,” says Nick Barone.

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Copyright © 2009 Design Data, Inc. All rights reserved.

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GETTING TO KNOW…

Jose “Pepe” Cavazos Director of Latin American Operations

What brought you to the Steel Fabrication/machine tool industry?

My education is in mechanical engineering, and my first job out of the university was at a company that processed steel products for highway construction. When highways were designed our company manufactured parts that were critical in the structure of the highway, as well as the guard rails, and signs. They also made many parts for bridges that were made out of tubing and steel plate and different types of sheet metal.

My job there was in maintenance and project management. If we added a new product or new machine I was in charge of the installation and operation of the equipment, and it’s use for production. Eventually my company made the move into the tower fabrication industry which is very lucrative if you can meet the tight deadlines. Our company bought Peddinghaus equipment for creating these towers and substations.

I got to know the Peddinghaus people because of their machines, and after being with that company for about 6 years I decided to go into another plant that was involved with the automotive industry. When I left the company, a Peddinghaus distributor told Peddinghaus Corporate that I had left. Since they needed a service technician in the Latin American market and that I was no longer with the partner company, they offered me a position as a field service technician.

What roles have you played since joining the Peddinghaus family of employees?

First I was a service technician, but then after a while they had decided I would be a service technician and sell machines at the same time.

Shop tours of various facilities, led by Mr. Cavazos, help educate the industry on latest production techniques to increase productivity.

So for some time I was installing and servicing the machines that I was selling. When business picked up in Latin America we opened our own office, hired more service technicians and office personnel. At that point I became Director of Latin American Operations. Today we have 4 service technicians, a salesman, an office manager, myself, and 10 dealers throughout Latin America. We have truly grown into a company that caters to the Latin American market.

What change have you seen in Peddinghaus since you began?

Years ago before I started with Peddinghaus, it seemed like more of an American company that seldom ventured beyond those borders. Today Peddinghaus has truly grown into a global company and it is evident by the service centers, manufacturing plants, and offices all over the globe. Latin America is just one example.

We have also become a very service oriented company. We do not just want to sell a machine, we sell a promise that we will do whatever we can for our customers to get the most value out of their investment.

How can you describe the Latin American fabricator when compared to others you have seen in your time at Peddinghaus?

In the Latin American market we are not strangers to a fluctuating economy. We have seen the market go up and down many times in recent decades. Fabricators have learned to adapt to these fluctuations by investing in the modular systems Peddinghaus offers. They usually want to start with a minimal investment pay it off in one job. With Peddinghaus you can start with a drill, and then add a saw, then an angle line, then a coper and a plate machine. These machines can all work together, or independently.

You can plan your growth with small investments – one at a time. Many of the applications include infrastructure, oil industry, mining, high rise buildings, sea ports, bridges, electrical transmission towers, substations, etc.

In what ways do you see fabricators adapting to today’s market conditions using technology?

In today’s market due to the amount of bidding and the level of work available you see fabricators bidding projects, then once they win the bids they have to sometimes double their capacity in a very short amount of time to accommodate the job. The only way to have capacity for these projects is through technology.

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JOSE “PEPE” CAVAZOS Continued from page 24

Can you describe the Peddinghaus Latin American Operations and the people you have working with you there?

We have more than 250 installations in this area and to service these installations we have a powerful workforce of field service technicians stationed in Brazil and México. Our technicians Tarcisio Furlan and Marco Castro service the area of South America while Victor Reyes covers Mexico, Central America and the north part of South America. Manuel Salinas is our service coordinator who creates the schedules for the technicians, gives phone assistance, and takes care of customer emergencies.

We service more than 95% of machine technical issues over the the phone and internet but for the other 5%, we have a technician within a designated radius of the installations in order to make sure that someone is always available if a customer needs it. Due to the high volume

of machine shipments to the region and the importance of correctly and quickly shipping parts to Latin America, we also created a position for exports and logistics, this position is covered by Iza Rosas.

Can you elaborate on your early days as a Peddinghaus Service technician? One of your earlier trips took you to North Dakota in the dead of winter to fix an Anglemaster, how did you like your first experience of the Midwestern winter?

When I first started at Peddinghaus I was in Brazil during the middle of the summer (middle of the winter in North America). The weather could not be better in the city of Bello Horizonte where I was. I was talking to my boss John Schilling and asking him how the weather was in Chicago – that specific day, it was about -5°C (about 22°F). I had made a big mistake making fun of it and saying how wonderful the weather was in Brazil at that time.

Latin America’s Peddinghaus Service Technicians

Victor Reyes

SUMMER 2009

Tarcisio Furlan

Marco Castro

Iza Rosas serves as office manager and logistics coordinator in the Peddinghaus office in Monterrey, Mexico.

Manuel Salinas coordinates the schedules of the powerful service workforce placed within the region as well as handles service calls and customer emergencies.

Next year in January, I was sent to North Dakota to do a big installation which took me over three weeks. The temperature was -30°C (about -22°F). The only winter clothes I had was for temperature of 0°C (32°F) because Monterrey does not typically get much colder than that. When I called my boss to complain about it, he just reminded me how good Brazil was the year before. I learned my first important lesson in this kind of job. If you find paradise, do not make fun about other places and keep it for yourself!

Distributor Spotlight

AS BOND 003 – QUEBEC, CANADA Quebec holds a very special place within the steel construction industry. A short drive through this province of Canada will prove to any bystander that this is steel country. This unique concentration of steel fabricators combined with a deep respect for the French language and culture requires a machine tool manufacturer that offers

Mr. Sylvain Boucher, owner, AS Bond 003.

a concentrated and specialized service level.

Peddinghaus’ local distributor Agent Sylver Bond 003 - owned and operated by industry expert Sylvain Boucher – is Quebec’s connection to the Peddinghaus family of employees. The bilingual organization maintains two skilled service technicians dedicated specifically to the province of Quebec. Both have been trained at Peddinghaus’ in Bradley, Illinois and the Andrews, South Carolina locations with special training directly from Hypertherm for machines that utilize thermal cutting. Their years of expertise offer Quebec's fabricators an unmatched level of service and industry knowledge.

Located strategically in Victoriaville, QC, Sylver Bond is in the heart of the province – able to serve the northern, southern, eastern, and western parts needs within a 2 hour drive. “We currently keep an inventory of over 100,000 parts at our office in Victoriaville for our customers. It is what we would expect if we were the customer – parts and service when we need it."

Sylvain speaks with pride about the level of service he is able to offer his customers – “I am glad to say that our customers receive the service and commitment from Peddinghaus that they deserve. Peddinghaus really focuses on protecting their customers’ investments and AS Bond shares that feeling. A machine doesn’t make money when it’s not working – that’s why people trust Peddinghaus.”

For more information on AS Bond 003, Inc. please visit www.asbond003.com or call 819-357-6897.

Mr. Jimmy Paquette, Quebec service technician.

SUMMER 2009

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

SUMMER 2009

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PERMIT NO. 157 Joliet, IL

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SOUTH AFRICAN FAB SHOP TOUR

As Only Peddinghaus Can Peddinghaus has always served as the unofficial “Tour Guides to the World of Structural Steel Fabrication”. We have sponsored tours to the Middle East, UK, Ireland and Latin America internationally and all the geographic regions within the USA and Canada.

These tours serve to educate fabricators and industry members on new techniques and innovation in structural steel fabrication. Peddinghaus always enjoys a little sightseeing along the way and has developed its own eclectic style for mixing business with pleasure along the way.

In November, we will again sponsor a world class tour to the “most beautiful country at the end of the world” – exotic South Africa.

The group will depart from Frankfurt airport to Johannesburg on November 4, 2009 and return on November 11.

Here is a Brief Itinerary: November 4 November 5 November 6 November 7 November 8 November 9 November 10

November 10

Frankfurt to Johannesburg (night flight) Visit Tubular Holdings & Genrec Visit Konti Industries and Cosira; Travel to Pilanesberg Lodge, a renowned game reserve Early morning visit to a wild game reserve – some time to relax, visit and take in the sites Visit historic Pilanesberg (afternoon flight) Visit steel fabricator Scott Steel & Transcape Sightseeing: Visit natural wonder “Table Mountain”; includes wine tasting, city tour – with a late night departure to Frankfurt Arrival in Frankfurt

Actual travel rates & fees will be charged for the trip.

For further trip details, Contact tami-day @ peddinghaus.com or Ms. Brigitte Steudtner b.steudtner @ peddinghaus-pfp.de

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