Prioritized Growth Strategy Brings New Life to Southwestern Illinois Manufacturer

After losing two of its largest customers to off-shoring in 2004, times only got tougher for Roesch, Inc., a leading manufacturer of component parts for OEMs in the HVAC, white goods, fireplace and barbeque industries. Continued downward pressure on sales, increased material costs and reduced shop-floor productivity had the 95-year-old company struggling to define its identity and its future. Enter IMEC.

Roesch’s relationship with IMEC began in the late 1990s with a successful ISO registration and continued over the years with a variety of quality, information technology and workforce training initiatives. So when IMEC approached Executive Vice President Debbie Voges-Schneider with a proposal to help the company create a prioritized strategy for growth, she was receptive.

New standard will put Illinois manufacturers on the path to Energy Efficiency

Utilizing the Plan-Do-Check-Act process for continual improvement, the International Standards Organization (ISO) has officially introduced the ISO 50001 standard for enabling organizations to reduce energy consumption.  As part of a pilot demonstration project at a large Illinois manufacturing company, IMEC specialists have been directly involved in developing and testing the new standard.

Deadline to Register to Rev C Standard is July 1, 2012

According to the International Aerospace Quality Group’s (IAQG) timeline, manufacturers currently certified to the AS9100 Rev B standard must upgrade to the Rev C requirements by July 1, 2012.  After this date, the current Rev B standard will no longer be recognized.  AS9100 Rev C (AS9100:2009) incorporates the ISO9001:2008 changes, expanding the scope to include Aviation, Space, and Defense as well as land and sea based systems.

Here are a few of the key changes required under AS9100 Rev C (AS9100:2009):

State Senator Heather Steans meets with
company leaders and IMEC officials; tours facility

From left to right: Mark Buckner-Tempel General Manager, Chicago ; Tim Taylor- Tempel President and COO; Senator Heather Steans; Tucker Kennedy-IMEC VP, Marketing and Communications; Harry Feldmann-Tempel VP, North American Operations 

Leaders from Tempel Steel Company recently hosted a briefing with State Senator Heather Steans to highlight the job-creating improvements the company has made with the help from the Illinois Manufacturing Extension Center (IMEC). Tim Taylor, President and Chief Operating Officer, told Steans that the 65-year-old manufacturing company has reduced operating costs and improved efficiency in the face of immense global competition. Productivity gains have enabled the company to reinvest in its Chicago facility and add workers at a time when other manufacturers were shedding employment.

Everyone knows story about the goose that lays golden eggs. I was reminded of this fable when news surfaced about a letter sent by Caterpillar’s CEO to Governor Quinn, expressing concern about the direction of the Illinois economy.

In recent years, much has been made of the growth of the service economy and the perceived decline in manufacturing. Pundits assert that our “geese” are now intangible things like knowledge, information, and innovation. While I am not denying the importance of these economic segments, are we confusing the eggs with the geese?

Alliance will enable small and mid-sized companies to create jobs and improve their global competitiveness

Illinois’ premiere full service manufacturing association is combining resources with the state’s manufacturing improvement experts to provide Chicago land companies with new tools, capabilities and services to increase productivity and grow.

Under a new alliance, members of the Tooling and Manufacturing Association (TMA) will have rapid access to implementation-training and consulting services provided by the Illinois Manufacturing Extension Center (IMEC). Part of a nationwide network of federally-funded non-profit organizations, IMEC was recently awarded a $2.5 million grant from the U.S. Department of Commerce’s Manufacturing Extension Partnership (MEP) program to serve the Chicago land market.   IMEC’s expansion to the region makes it Illinois’ exclusive provider of quality, efficiency, cost reduction, and growth services under the MEP umbrella.

Manufacturing leaders seeking to take advantage of expected increases in demand can get access to proven methods to increase productivity by participating in IMEC’s signature Continuous Improvement Series. This unique program, which trains company leaders on best practices on cost-containment and operating efficiency, starts January 28^th at Northern Illinois University’s Rockford Center.

“Rockford manufacturers are under intense pressure to produce smarter as a way to increase margins,” said Roger Shrum, an IMEC project specialist.  "One way they can differentiate in today’s price-competitive environment is to deliver at the lowest cost possible.  The techniques we will be transferring in the CI Series will give manufacturers the tools to be more flexible in meeting the demands of their customers.”

In December, IMEC co-sponsored a forum in Chicago that focused on strategies that are being undertaken by Illinois manufacturers to take advantage of emerging opportunities as the economy recovers.  It featured a panel of manufacturing leaders, Selim Bassoul, CEO of Middleby Corp.; James Bodman, CEO of Vienna Beef; Janice Christiansen, CEO of J.C. Schultz Enterprises Inc./The FlagSource; and Joseph James Slawek, CEO of FONA International.  The discussion was moderated by John Brandt, CEO and Founder of the MPI Group, which studies leadership in effective organizations. Brandt is an internationally recognized expert on manufacturing and technology and is former publisher and editor-in-chief of IndustryWeek magazine.

The group discussed plans for R &D and innovation, increasing inventory efficiencies in the supply chain, and hiring and training best in class workforces.  Each expressed optimism about the future, but talked about the tough choices that they and many other manufacturing leaders had to make to remain viable during the recession, including reducing employment, deferring maintenance on key equipment and delaying investments in improving operational effectiveness.   These manufacturers, however, are bucking the trend with their performance in the face of touch business conditions.  Some highlights:

...companies looking at products, markets, strategies to compete

For years, small and mid-sized manufacturers did not face the challenge of selling.  Business from multi-nationals was steady.  Credit markets were open.  Consumer spending was strong.  The worldwide economy insulated many U.S. companies from severe fluctuations in sales and revenue.

Today, foreign price competition and volatile business conditions have companies of all types re-examining their current business models.  Manufacturers who once stood apart simply by being more efficient are now scrambling to fill their sales pipelines, develop new products and services, and pursue customers in entirely new markets.   Differentiating from the competition, moving up the value chain, and collaborating with customers is the new recipe for success.

Let’s face it, there is no shortage of available options to stay informed about the latest trends in manufacturing.  Whether through trade publications, industry websites, e-newsletters, or any other electronic or print sources, information has never been more accessible to aid a leader in making important business decisions.