Accelerating Manufacturing Growth

Industry analysts expect overall growth in manufacturing to speed up in the second half of this year and grow even more in 2018.


https://businessfacilities.com/2017/04/accelerating-manufacturing-growth/
Industry analysts expect overall growth in manufacturing to speed up in the second half of this year and grow even more in 2018.
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Accelerating Manufacturing Growth

Industry analysts expect overall growth in manufacturing to speed up in the second half of this year and grow even more in 2018.

Accelerating Manufacturing Growth

By the BF Staff
From the March/April 2017 Issue

According to 2017-2018 projections from the Manufacturers Alliance for Productivity and Innovation (MAPI), overall growth in manufacturing should accelerate this year and grow even more in 2018, but this trend will benefit some sectors while others slow down.

Total machinery production will post growth of one percent in 2017 and three percent in 2018, MAPI projects. Commercial and service industry machinery equipment should consistently post moderate growth over the next three years.

Engine, turbine, and power transmission equipment is used for freight, natural gas transmission, marine engines, and electric power. MAPI forecasts that this sector will rebound from a decline in 2016 and post at least one percent growth in 2017 followed by a four percent jump in 2018.

Household appliance production should grow three percent in 2017 and two percent in 2018. Fabricated metals production will grow 1 percent in 2017 and two percent in 2018.

Industrial machinery is capital equipment for specific nonmetallic manufacturing industries such as woodworking, plastics, paper, textiles, printing, food products and semiconductors. MAPI projects that industrial machinery production will grow by two percent in 2017, and three percent in 2018.

The HVAC production forecast is for a 1% decline in 2016, 4% growth in 2017, and 4% gain in 2018.

The HVAC production forecast is for four percent growth in 2017 and a four percent gain in 2018. Pharmaceutical and medicine production increase by two percent 2017 and rise by three percent in 2018.

Mining and oil and gas field machinery production, which were clobbered by the energy sector decline early last year, should expand by at least 16 percent in 2018, MAPI projects.

ATTC MANUFACTURING: PREMIER AUTO PARTS SUPPLIER IN INDIANA

Over the past two decades advanced auto manufacturing has become a powerhouse industry in Southern Indiana. As one of the fastest growth sectors for the state’s economy, the industry shows no signs of slowing.

Accelerating Manufacturing Growth
Japanese-owned ATTC Manufacturing specializes in machined auto components, including brake drums and differential cases, which it supplies to automotive assembly plants in Indiana. (Photo: Hoosier Energy)

Among the dozens of massive auto manufacturing facilities dotting the landscape across the state is Japanese-owned ATTC Manufacturing, Inc. Specializing in machining brake drums, brake rotors, engine caps, steering knuckles, carriers and differential cases, the company ships more than 10 million parts to customers annually, including Toyota, Nissan, Honda, Subaru and GM.

ATTC Manufacturing is among a bevy of Japanese investments in Southern Indiana that have been key contributors to the auto-manufacturing boom. The Indiana Economic Development Corporation reports there are more than 260 Japanese business establishments in Indiana that employ more than 53,000 workers. Among all U.S. states, Indiana has the largest amount of Japanese investment per capita and is the only U.S. state that is home to three Japanese automotive original equipment manufacturer (OEM) companies.

ATTC Manufacturing is part of Japan-based Aisin Seiki, which employs more than 83,000 people across the world, including approximately 2,900 in Indiana at 10 companies including Aisin USA Manufacturing, Aisin Drivetrain in Crothersville, Aisin Chemical Indiana in Crothersville, ADVICS in Terre Haute, Aisin Logistics in Franklin, and INTAT Precision in Rushville.

Nestled along the Ohio River in Tell City in Perry County, ATTC Manufacturing opened in 2000 and has seen steady industry growth in the state mirrored in its own operations. It has seen three major expansions since its beginnings, adding 66,200 square feet in 2002, 55,170 square feet in 2005 and 71,577 square feet in 2006. The company also capitalizes on existing space to add new production lines with 70 new lines added during the past several years, including most recently nine new lines for Honda and two additional lines for Subaru. The expansive plant now encompasses 380,000 square feet situated on 35 acres.

The company employs 580 people working two shifts up to seven days a week. Reliable power is one of the key factors to its successful operations. Located in Hoosier Energy territory, ATTC Manufacturing is serviced by Southern Indiana Power, one of the energy provider’s 18-member distribution cooperatives.

“Our power supply is absolutely crucial to our facility. At any given moment we can have over 500 machines running,” said ATTC Manufacturing Plant Manager Chad James. “A blip in our power supply can mean ruining parts that are in process, or worse yet, losing a machine, and could easily result in a cost of $20,000 to $30,000 due to a power problem.”

Southern Indiana Power, which supplies power to more than 8,500 homes and businesses, has worked with ATTC Manufacturing to ensure that a reliable power source is in place. In the past decade, Southern Indiana Power and Hoosier Energy invested over $1 million to build a dedicated substation for the plan—giving it fewer interruptions and more predictability for how energy demands are handled.

When the company opened it operated at a 500 kWh load, and has grown to become as Southern Indiana Power’s third-largest customer.

In addition to the substation, Hoosier Energy invested another $50,000 to install an underground distribution loop around the plant to further improve reliability. The loop allows Southern Indiana Power to quickly isolate any power issues and get the plant back online much faster.

“Because of their sheer size and need for constant service, we deemed this enhanced service absolutely necessary for ATTC,” said Steve Seibert, president and chief executive officer of Southern Indiana Power.

Southern Indiana Power works closely with customers like ATTC Manufacturing to proactively meet their needs and plan for the expansions and plant reconfigurations.

“We meet yearly to look at potential energy needs, knowing that infrastructure upgrades may need a six to eight month lead time. We also talk monthly to monitor usage and take advantage of the real-time data so that we can advise ATTC about efficiency, rebate programs and incentives and how we can improve load distribution,” said Seibert.

Real-time data monitoring coupled with rapid solutions and response time have become key to energy efficiency as the manufacturing landscape in the area has changed over the years. The area once known primarily for wood working factories with lower energy demands has evolved into expansive plants with high-tech machinery that have much greater demands for energy and consistent power.

James, who has been with ATTC Manufacturing for 10 years, has seen the Southern Indiana community respond to the influx of advanced auto manufacturing. From employees willing to make a transition to a new industry to utility providers, he sees the community network growing stronger.

“We are a Japanese company that strives for perfect execution of our operations and Southern Indiana Power has been a great partner in helping us achieve our mission,” said James. “I am always pleasantly surprised with how proactive they are. They have the quickest response time of any utility and are always armed with countermeasures to alleviate any issue we have.”

Seibert expects that the area will continue to evolve as advanced manufacturing and the associated supply chain for the industry expand. Southern Indiana Power is committed to be part of the changing landscape.

“At the end of the day we are here to assist our customers and make sure their needs are met,” added Seibert. “We have a vested interest in helping them do well, they are part of our community and their success means stability in jobs and growth for our area—ultimately we are all in this together our customers are our members, our owners.”

Hoosier Energy is a generation and transmission cooperative (G&T) with headquarters in Bloomington, IN. The G&T provides electric power and services to 18 electric distribution cooperatives in southern and central Indiana and southeastern Illinois. Hoosier Energy provides a full array of economic development and key account services to commercial and industrial facilities and the communities they call home. Hoosier Energy operates coal, natural gas and renewable energy power plants and delivers power through nearly 1,700 miles of transmission network.

PEORIA, AZ: THE SMART INVESTMENT

Every business needs starts with an address and more often people are making Peoria their home base for business. Peoria is known for its high quality of life, which is leading to new investment and development into the core districts of the City, however, it starts with a vision.

Currently, Peoria’s Economic Development Implementation Strategy (EDIS) provides the foundation for that vision by identifying targeted industries and investment zones, establishing a smart economic incentive policy and ultimately attracting new businesses to the community.

Health/Biomedical/Medical Device industry: Peoria is at the center of 6 major regional hospitals and borders the largest medical school in Arizona, Midwestern University. Peoria has a workforce skilled in healthcare professions; 19 percent of the Peoria workforce has education in healthcare-related fields. Recognizing its prime competitive potential for the devices industry, Peoria has created Arizona’s first bioscience incubator, called BioInspire. Similar to a typical business incubator, BioInspire offers first-class working space, technical business assistance and collaborative opportunities in bio-life science industries.

Advanced Business Services: Peoria has existing office sites, as well as established investment zones for future Class “A” office space development for premiere employers who want to take advantage of Peoria’s highly-educated population in business and management professions. Peoria residents are educated in occupations that exceed national norms, including engineering, computer and mathematics, finance, healthcare and health technicians.

Advanced Manufacturing: Given Peoria’s recent attraction of global and high-tech manufacturers, AVIAGE SYSTEMS (a Chinese-based company), Maxwell Technologies, Novembal (from Switzerland), and GEPACK (from Portugal), the market has tremendous potential to assist manufacturing companies worldwide looking to grow in a stable, talented Southwest U.S. corridor, with access to dozens of existing buildings and shovel-ready sites along highways and major arterials, as well as two mega-sites that are prime locations for corporate and industrial users.

Peoria’s investment zones provide a diverse array of market opportunities for any investor to take advantage of:

The Peoria Eighty-Three (P83) Entertainment District is the location of the Peoria Sports Complex, which is the home of the Seattle Mariners and San Diego Padres Spring Training and Player Development campus. The area boasts many quality restaurants, dinner theatre and other entertainment opportunities. An Urban Design Master Plan for the 570-acre District was adopted to enhance this strong community asset by increasing density, creating destination mixed-use opportunities, establishing a distinct identity, improving pedestrian connectivity and creating a sense of place. In the heart of the Entertainment District is a proposed redevelopment project called The Peoria Innovation Center, which will convert the 17-acre parking lot west of the Peoria Sports Complex into Class A office buildings, shopping, dining and a hotel with parking garages.

Peoria’s Old Town District has been the heart and soul of the City since its earliest days. The City has been focusing on proactive revitalization efforts to attract new businesses and people to the area. Peoria takes pride in the physical attributes and qualities that make a city unique, which is why the Old Town Area is an economic development investment zone as part of the EDIS. The City developed a Commercial Revitalization Program for businesses who are seeking funding support for exterior facade, parking lot, and other eligible improvements. The City will provide up to 50 percent reimbursement to private property owners for eligible improvements associated with properties located in the targeted area.

The Rovey Employment Park, located in southern Peoria, offers 328 acres of prime industrial real estate in an area that is well developed, with strong infrastructure and transportation corridors. This mega site sits along the BNSF rail line into Phoenix and is adjacent to the Peoria Industrial Park, the Butler Water Reclamation Facility and the SRP Agua Fria Electric Generating Station.

Vistancia Commercial Core, at the start of future growth in northern Peoria is 300+ acres of privately owned, commercially zoned land, that is fully entitled and shovel ready with build-to-suit options for business. The Vistancia Commercial Core is located at the center of the 7,100-acre master-planned community of Vistancia, offering an abundance of skilled labor and executive housing options.

Peoria is moving forward aggressively and strategically to grow its local economy to compete on a global scale. Our community is increasingly recognized for our high-knowledge and technically skilled workforce. Peoria is the smart choice. For more information, visit www.peoriaazsmart.com.

VARCO PRUDEN: SUSTAINING A TRADITION OF EXCELLENCE

For more than 60 years, business owners, facilities managers, real estate developers, and construction specifiers have relied on VP Buildings to provide effective and affordable building solutions.

Even the most experienced construction decision makers know that the process can be challenging. Issues such as:

  • coordinating schedules;
  • compliance with local building codes and covenants;
  • verifying that their new structure will meet their need for space and
  • ensuring their building will be sustainable and energy-efficient are all part of the construction process.

Varco Pruden Buildings, with our dedicated team of trained engineers and building experts is your best resource for making sure your building meets your expectations and your budget. VP Buildings’ reputation for excellence was earned through pioneering system construction advancements such as:

  • custom-concept design,
  • optimal steel engineering
  • manufacturing excellence.

Today, VP Buildings is the proven technology leader in the building systems industry. With VP Command®, our proprietary estimating and design program, you can explore building options to create a facility that is exactly what your company needs and expects.

Meeting building needs for projects such as: industrial manufacturing plants, corporate offices, upscale retail and public facilities (including schools, arenas, and hangars) are typical of the types of facilities currently utilizing a VP Building.

Varco Pruden is able to meet the variety of building needs with our unmatched line of systems options. VP structural options include: solid web and open web framing systems capable of clear-spanning over 300’. Incorporating sophisticated structural elements with our hybrid and heavy structure design capability, VP can provide structures in excess of 100’ tall and capable of handling industrial crane loads of 100 tons or greater.

To complement our framing options, VP offers metal roofing products that provide architectural appearance, low maintenance and long-term weathertight warranted performance. VP Roof Systems feature “cool” paint colors and are designed to work with a selection of insulation systems providing energy-efficient performance.

VP also offers wall panel choices to give owners the look and performance they require on their buildings. VP systems are capable of working with non-metal wall systems, including glass, wood or masonry options.

VP is committed to meeting the highest industry standards for engineering and manufacturing. VP products are manufactured in plants that have been inspected and certified to meet International Accreditation Service (IAS) AC-472 requirements. VP is a founding member of the MBMA (Metal Building Manufacturers Association), the group that establishes standards in our industry for product excellence.

With the increasing market demand for green and sustainable construction, VP is a proud member of the United States Green Building Council (USGBC) and the Cool Roof Rating Council (CRRC). VP products use recycled content steel, low VOC products and cool paint formulations as part of our continued pursuit of excellence.

To ensure that our customers receive the best service possible, VP works through a network of local, independent authorized Builders. The VP Builder network utilizes our proprietary engineering and design software, VP Command®. Varco Pruden also provides extensive product training and technical field support to assist in proper product selection and on-site installation. Your VP Builder works with our in-house team of trained detailers, licensed engineers and skilled project managers to provide a building designed, engineered and detailed to meet your exact requirements.

Varco Pruden Buildings is part of a worldwide family of companies owned by BlueScope Steel. Based in Australia, BlueScope’s businesses include: steel production, building and construction resources, and more than 100 manufacturing operations in 17 countries on five continents. The BlueScope Steel family includes the largest steel building provider in the world, BlueScope Buildings North America.

Headquartered in Memphis, TN, VP Buildings has six regional service locations with multiple manufacturing facilities supporting a network of more than 1,000 builders throughout North America and the world.

Our Builders and their customers realize the value of VP’s 60 years of experience. Our commitment to safety, quality products and constant improvement has built our reputation as a trusted resource for steel building systems.

During VP’s 60 years of providing building solutions for virtually every commercial and industrial application, we have built a reputation as a trusted advisor for our customers. Varco Pruden pioneered “custom concept,” a unique approach that meets the owner’s exact building requirements—not limited by standard sizes and shapes.

Fortune 500 companies and industry specifiers recognize Varco Pruden’s leadership and innovation. With our proprietary software, VP Command, VP builders utilize the most advanced design and engineering system available. Our commitment to technology and product excellence delivers measurable benefits including:

  • Lower initial cost when compared to alternative construction methods
  • Faster occupancy and a faster return on your building investment through quicker delivery and build schedules
  • Lower life-cycle cost of ownership with minimum required maintenance
  • High-efficiency insulation alternatives to reduce energy costs
  • Optimized steel design using proprietary software
  • Materials and finishes to help achieve sustainable construction goals
  • A wide selection of framing, coverings and finish options to achieve the desired aesthetics and interior space requirements

Varco Pruden Buildings should be your first choice for steel system construction. To learn more about our products, services and tradition of excellence, talk with your local VP Builder today or visit us online at www.vp.com.

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