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.
“A healthy manufacturing sector can help put this state back on the road to economic recovery,” said Taylor. “We talked to Senator Steans about the importance of giving companies like ours all of the resources available to enable us to compete and grow jobs in Illinois. Investing in organizations like IMEC is one way to do that.”
General Manager Mark Buckner described how IMEC’s team is helping Tempel to reduce the time it takes to set up machines to run new orders, which has enabled the company to increase daily output and grow sales. The non-profit IMEC provides Illinois manufacturers with hands on technical assistance in areas such as process optimization, quality, safety, and operational excellence. The organization recently expanded services into the Chicago area. IMEC receives funding from the U.S. Department of Commerce to reach out to manufacturers throughout the state. However, state matching funds are required in order to access the federal grants.
“We know that state resources are limited,” said Tucker Kennedy, IMEC Vice President. “Our message to Senator Steans and the other members of the legislature is to provide resources to those programs that have proven effective in helping manufacturers to innovate, develop new capabilities, and compete globally. Failure to adequately support manufacturing will risk further weakening the state’s financial health.”
Kennedy shared data showing that IMEC annually generates more than $100 million in verified benefits in manufacturing cost savings, sales, investments, and employment. These benefits, in turn, result in more than $250 million in state and local economic impacts, including more than a four dollar increase in state and local tax revenues for every dollar the state provides to IMEC.
Steans, recently named Chair of one of the Senate Appropriations Committees, represents the 7th district, made up of the Chicago neighborhoods of Andersonville, Bowmanville, Buena Park, Edgewater, Lincoln Square, Ravenswood, Rogers Park, and Uptown.
"Tempel Steel provides excellent products and services and with the help of the Illinois Manufacturing Extension Center, continues to improve their productivity,” said Steans. “I look forward to working with my colleagues to both strengthen IMEC's ability to provide assistance to other manufacturers throughout the State and lower Workers Compensation and other costs for Illinois employers, enabling Tempel Steel and other Illinois businesses to flourish and create job growth.”
Tempel President Taylor also shared the company’s concerns about the recent corporate tax increase, and the high costs of worker’s compensation in Illinois. “There are many advantages to being headquartered in this state,” said Taylor, noting Chicago’s market access and worker productivity. “But the worker’s comp environment puts us at a significant competitive disadvantage.” Steans indicated that she expects the General Assembly to take action this spring on legislation that will help lower costs for Illinois employers.
Following the meeting, Buckner provided a tour of the 22-acre Tempel facility for Steans and Kennedy.
IMEC was established in 1996 with the goal of improving the productivity and competitiveness of Illinois’ small and mid-sized manufacturing firms. A non-profit economic development organization, IMEC is funded in part by the National Institute of Standards and Technology/ Manufacturing Extension Partnership, the Illinois Department of Commerce and Economic Opportunity, and through fees paid by Illinois manufacturers for IMEC’s services. IMEC has 13 offices statewide and 35 full-time manufacturing improvement specialists.
Tempel is the world's leading independent manufacturer of precision magnetic steel laminations for the automotive, motor, generator, transformer, and lighting industries.
Tempel is committed to excellence in precision engineering, material sourcing, metallurgical analysis, prototyping and product design, tool and die services, manufacturing technologies, value-added processes, and cost-effective custom solutions. With manufacturing operations in five countries and established footprints in strategic locations around the world, Tempel provides global industry leadership for strategic partnerships and a single source for finished components.