Production Materials

Why STEM Is Vital to Creating Engineers of the Future

2014-03-05T09:16:00.000-08:00

From LEGO’s latest creations to National Engineering Week, it seems STEM education and the future of U.S. manufacturing is a big topic of discussion. Because we work on a regular basis with engineers, we understand the importance of these professionals and their role in the future, so we wanted to share our thoughts on the importance of STEM initiatives.

Science, technology, engineering, and mathematics are core principles in manufacturing, and engineering is the backbone of the whole product cycle. If America is going to continue to be strong in manufacturing, the process begins by getting younger people interested in these types of backgrounds.

In our business, the interaction with engineers begins when a customer requests a specific product or service, and once that customer communicates their need, it’s the engineer that has to take that concept and put it on a print that describes what is ultimately to be manufactured.

Companies we interact with that have engineers that are not only creative but are flexible in their thinking and have a clear understanding of the big picture are those that tend to be the most successful. Engineers help form the backbone of a dynamic company and industry, and we need to promote a strong belief in STEM education to ensure a successful future growth pattern.

Before you head over to our website to learn more about our business, check out the video below on the value of investing in STEM education:

How EDI, Automatic Payments Are Helping Manufacturing

2014-02-18T06:33:00.000-08:00

How EDI, Automatic Payments Are Helping Manufacturing

In our last blog, we discussed how we’ve noticed an uptick in the agricultural industry, and while that’s true, we also want to discuss another in processing orders and payment for goods and services we’ve seen: the integration of technology like electronic data interchange.

Through various mechanisms, we supply products for production and/or the aftermarket for our customers, and computer software has evolved to the point where some of our customers have converted to an automatic payment system—saving time and expense along the way.

Now, the day we ship a product, we head to a portal; upload the information about the shipment that we’re making and that information gets uploaded to the customers’ server. This aggregates information and triggers a system, where once the shipment is received and the barcode scanned is in, the transaction creates and internal invoice and subsequent payment through the banking system. At the end of the process, we get a wire transfer to our account or a paper check.

This streamlined process eliminates the action of mailing an invoice on our end. In some cases, our input of the shipment information triggers scheduled truck pick up. On the customer side, they realize savings due to a reduction of errors, a shortened cycle time and labor. Our customers are now converting their logistics management function to increased automation. EDI might eventually control the most—if not all—of the process from start to finish.

How is the Agricultural Industry Growing?

2014-01-06T06:30:00.000-08:00

One Google search for “agricultural industry” aggregates thousands of results. Some links relay users to different organizations while others try to define it as a whole. If you click on the “news” section of this search, you’re bound to bring up dozens of conflicting reports on how the industry is doing. It seems no one can agree on the current state (or future) of agriculture, but at Production Materials, part of our business revolves around supplying parts for this industry, so we can confidently say we’ve noticed an uptick in a few areas: aftermarket, consolidation, and parts rationalization.

The agricultural industry in the United States functions as an intricately weaved web. Take, for example, a family-owned farm, which in many cases, simply cannot shell out thousands of dollars for a new tractor if it breaks down—especially when fixing the machinery might be a more viable solution, including the ordering of small parts from a local dealer. Since Production Materials is part of the supply chain for repair depots, we’ve been able to track an increase in the parts resale aftermarket.

As the industry changes to accommodate shifts in demand and technology, the number of manufacturers actually is getting smaller through consolidation. However, in the past four years, the number of “Big” North American farm equipment dealers has grown from 151 to 184, according to Ag Equipment Intelligence. While some might worry about consolidation of the manufacturing base growth, downstream, in the supply chain, has improved distribution efficiency.

Much like consolidation, parts rationalization aims to lower costs by eliminative redundant parts and operations. In this instance, we’ve worked with engineers to restrategize and standardize parts, which means instead of purchasing three similar components, one common part may fulfill the need. This allows companies to purchase large orders of one part to take advantage of price/quantity breaks.

Want more information on how we may be able to assist with your particular needs? Please check out our website or request more information here.

Why American Made Means Something Again

2013-12-09T08:30:00.000-08:00

For decades, outsourcing has stripped the U.S. of its once-proud manufacturing tradition, eventually getting to the point that “Made in America” became synonymous with higher labor costs and declining quality. Yet, recently, it seems hope began replace despair—American manufacturing finds itself in the middle of a renewal in both perception and reality.

As with all economic trends, no one simple reason can lay claim for the resurgence of American manufacturing; however, two major reasons do standout in turning around decades of decay:

Quality

There is no better place to start than with product and service quality. Once again, people and companies around the globe recognize that American-made goods are of higher quality due to both our technology regulations and workforce. As incomes have grown across the globe—a perfect example being the tripling of China’s disposable income per capita since 2004—there has been a rise in the demand for higher quality goods. If you combine this with sometimes poorly made products and unsafe work conditions and total landed costs for overseas goods, you can see why there is a greater push for American-made products.

Costs

It would be naïve to think that the rebound in American manufacturing is simply a case of patriotism. Business is business, and profits are still king. A recent study from the consulting firm AlixPartners estimates that the cost of manufacturing in the U.S. will gain parity with those of outsourcing to China. When and if this does take place, the argument that it is cheaper to offshore will no longer be valid, thus boosting American manufacturing even more.

At Production Materials, we are excited about the return of manufacturing to America. We’ve specifically noticed evidence of companies not wanting to carry a lot of inventory, which means bulk shipping from overseas isn’t in their best interest; therefore, the cost can be offset by going to a local company, giving a boost to the American-made industry.

There is little question that the U.S. (and especially our home state of Illinois) has seen some rough times when it comes to manufacturing jobs, yet we are hoping that as the world’s demand for higher quality products rises and the cost of off-shoring equal out, our country can regain its role as a manufacturing leader.

Resourceful Organization, Parts Rationalization is an Important Part of Manufacturing

2013-11-12T06:41:00.000-08:00

As manufacturing transitions its way into a new age, an adjustment period is necessary. Those who have been in business for decades—much like Production Materials—are working on perfecting automation systems and keeping up with the latest trends. But for many businesses, re-evaluating the present is equally as important as looking forward, which is why parts rationalization is critical in the manufacturing industry.

It unstable economic times, especially, it’s often feasible to simplify purchasing inventory and production by looking for part commonality and consolidation. As part of our quotation process, we evaluate our customers’ specifications and offer a “standard” lower cost alternative. We also look through the customers’ portfolio of parts we sell them and make recommendations for possible consolidation.

Going a step further, we’ve noticed an increase of manufacturers aiming to create one solid templated product to embrace. Instead of creating hundreds of individual pieces and parts for a machine, one uniform product can fit all. This means one part can do the job of three separate components, and companies can order these in bulk rather than ordering the bits and pieces when needed.

It’s clear manufacturers are becoming more resourceful with their purchasing, and we’re happy to help out. For more information on our components, contract packaging and secondary operations, head over to our website.

Production Materials Celebrates U.S. Manufacturing in October and November

2013-10-21T06:40:00.001-07:00

October is Manufacturing Month in the United States. The designation is an opportunity for manufacturing companies to showcase their ties to local communities and how the jobs and products that they create are a value-add to the economy of their neighborhoods, states, and the country as a whole.

Then in November, the American Made Matters, organization will be celebrating and focusing attention on American Made products and services. AMM, is an organization dedicated to educating consumers on the importance of buying American-made products.

The group has declared November 19, 2013, the first annual American Made Matters® Day. The organization hopes that on that day, U.S. consumers will be encouraged to buy at least one American-made product to show their support for American manufacturing.

According to the National Association of Manufacturers, “In 2012, manufacturers contributed $1.87 trillion to the economy, up from $1.73 trillion in 2011. This was 11.9 percent of GDP. For every $1.00 spent in manufacturing, another $1.48 is added to the economy, the highest multiplier effect of any economic sector.”

NAM also states that, “Manufacturing supports an estimated 17.2 million jobs in the United States—about one in six private-sector jobs. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.”

In 2011, the average manufacturing worker in the United States earned $77,060 annually, including pay and benefits. The average worker in all industries earned $60,168.3.”

AMM has reported that “the Federal Trade Commission mandates that, in order to label a good as made in the U.S., all significant parts and processing that go into the product must be of U.S. origin. Additionally, the law requires that U.S. content must be disclosed on automobiles and textile, wool, and fur products.”

AMM has two criteria for member organizations to use its label on products:

50% of the product’s cost (labor, materials and overhead) must be incurred in the U.S.; and
Final assembly or transformation must take place in the U.S.

Production Materials is proud to be associated with the American Made Matters® organization. Many of the products we sell are made in the state of Illinois and are integral to other American products to perform the work and tasks necessary to keep the economy moving forward. One of our main sectors that we service is agriculture, which is also critical to a strong America. Join us in October to salute American manufacturing and then in November by buying American made products. Let’s all do our part to keep our country strong!

The Outdoor Power Equipment Market Is Growing

2013-05-29T09:30:00.000-07:00

Warm weather is the time for trimming hedges, cutting the grass, and pulling the weeds at home, but here at Production Materials, we’re thinking about outdoor power tools at the manufacturing and service parts level.

As providers of component solutions for this industry, we have a first-hand look at customers’ forecast, so we can see trends. The continued demand for lawn and garden equipment is evident—along with steady growth in the replacement parts segment as well.

In the next five years, the U.S. demand for this equipment is expected to rise an annual 4 percent, which could add up to $10.6 billion. After tracking a slight decline in demand from 2007 to 2012, we are encouraged to see these projected numbers.

As the economy and GDP accelerate, consumers will spend more money on upgrading older equipment. Increased recreational activities requires the upkeep of greens and fairways as well as parks and resorts, which means groundskeepers need state-of-the-art equipment to maintain these venues.

As the industry continues to evolve with more innovation in the equipment’s technology, we at Production Materials will be there to provide many of the components and the subsequent benefits for consumers and our customers.

Now or Never: Improving America Infrastructure

2013-05-01T12:30:00.000-07:00

After decades of neglect, America is finally paying some attention to our moldering infrastructure. This renewed interest couldn’t come at better time. The American Society of Civil Engineers (ASCE) puts out an infrastructure report card every four years and the U.S. scored a less-than-sterling D+ in the 2013 edition. So, what grade will we get in four years from now?

Recently we have been seeing a solid uptick in infrastructure work in a number of different industries, including one of the major sources of our business; the power industry. As the economy rebounds, and new sources of energy are discovered everyday, more money is going towards strengthening and rebuilding the aging energy infrastructure. We have seen a marked increase in the number of heavy-duty bolts, washers, and pins that we are providing to the energy sector.

Another trend is the rise in the number of warehouse and storage facilities that are either being refurbished or built. This has led to a boom in the need for building racking, which is another major source of business for Production Materials. Companies would not invest capital in new facilities unless they saw strong demand.

One of the benefits of providing parts to industries is that we get to see the economic trends early on. By the time a project is completed and makes the headlines, we have already known for months because these companies couldn’t even start building without the parts we supply.

As economy keeps heading in a positive direction, we are optimistic that infrastructure spending will keep pace. If you have a moment, we strongly suggest that you take a closer look at the ASCE’s 2013 Report Card for America’s Infrastructure. It is quite an eye opener!

Wind Power Turbines

2013-04-09T07:52:00.000-07:00

As it turns out, Apple, Inc., the second-largest company in the United States after Exxon Mobil, has a lot going on these days besides battling Samsung for smartphone supremacy, or rolling out Apple TV this coming summer. No, it seems evident that Apple is playing a much deeper, far more strategic game: even as its legal team dukes it out in court with Samsung, another wing of the company has quietly gone on to patent a type of wind-powered turbine that bears the same futuristic, forward-thinking hallmarks of Apple’s popular lines of desktops, laptops, tablets, and iPhones. According to the patent application, filed with the U.S. Patent and Trademark Office in June 2011, Apple’s wind turbines would be able to provide “on-demand generation of electricity from stored wind energy.” Unlike standard-issue wind turbines, Apple turbines would rotate so as to generate heat that could thence be stored in a “low-heat-capacity” fluid. Whenever a business or consumer needs to use energy, he or she could then tap into the collective stored energy of Apple’s wind turbines.

Apple, in short, is aiming to become a major player in the energy business – a wind-powered Exxon of sorts. How this will play out in the long-run is anyone’s guess, but it’s an interesting development to take notice of in terms of wind energy, just as the last-minute deal approved by both houses of Congress that includes a provision to extend tax credits for wind energy businesses for at least another fiscal year. Not only does this save some 37,000 wind industry jobs across America, but it also bodes well for the long-term future of the industry. Unlike “wind” itself, the “wind industry” will hardly be in passing.

We at Production Materials welcome these developments wholeheartedly, in the same way that we welcome the new opportunities being created for faster means of oil and gas exploration. Energy independence for the U.S. is critical in the long-term, by wind or by oil. Production Materials has the experience and resources to supply the wind energy industry with the necessary components for full-sail growth.

Already, PMI has supplied critical components for the wind energy industry. These components are in the form of heavy-duty, corrosion-resistant bolts that are built to withstand the vicissitudes of Mother Nature and tight tolerance assembly requirements.

We could do the same for your company in a heartbeat. If you’re in the wind energy sector, or are looking for a spot in what can only be a high-growth field of opportunity, contact us at Production Materials, Inc., and we will link you to the necessary nuts, bolts, and repair parts you need to keep the wind in your sails.

Speed and Reliability: the Cornerstones of the Competent JIT Supply Chain

2013-02-11T09:30:00.000-08:00

There’s a reason why books like Getting Things Done become instant best-sellers in America, and there’s likewise a reason why most 3G mobile users can’t wait for the day when they can upgrade to swifter 4G networks: we are a nation perpetually on the fast-track, and by fast we mean ASAP. In a business such as ours, that of providing parts and components for manufacturing applications of all different kinds, having a rapid, reliable critical lead time is an absolute, make-or-break must. Here’s the thing: a lot of companies focus on either speedy turnarounds, or possessing reliable inventory, but rarely are they able to focus on both. In order for a company like Production Materials to attract and retain clients, we simply can’t ignore either of two qualities, speed or inventory reliability. The reason we have performed so well in both these fields is our painstaking mastery of the modern principal of Just-in-Time (JIT) Delivery.

JIT Delivery is a process first developed in Japan where in-process inventory and carrying costs get reduced by means of Kanban, or “visual signals,” that let a manufacturer or supplier know when a particular component for an application has been completely delivered to its appropriate destination, and that it’s time for a new component to begin being produced and/or supplied. Consequently, warehouse space and costs get saved, and components get implemented into their applications in a much more streamlined fashion.

Case in point: quite recently, a major international company (its focuses being mainly in automotive and electronics) needed electric components delivered to a job-site on the East Coast. Production Materials was asked to supply a certain and significant number of components and have them delivered within a rapid timeframe. Employing a JIT delivery strategy pre-set with the factory, we were able to receive the requisite components in such a way that the internal processing time for inspection and special packaging was invaluable. The customer received its components quickly and in exact order. Needless to say, our client saved both money and time in relying on our services.

To see how our JIT services can be utilized for your own company’s benefit, please contact us today at Production Materials, Inc.

The Re-Tooling (and Growth) of the North American Power Tools Market

2013-02-04T09:30:00.000-08:00

When the Housing Bubble caved in at the close of 2008, North America’s powerful construction industry took a hit harder than almost anyone else. As a direct consequence, sales of house construction equipment, including power tools, shrunk steadily. Suddenly, however, signs are starting to crop up that seem to prove the construction industry’s steady re-emergence in the U.S. While the outlook remains fairly conservative, there does seem to be a consensus that 2013 will prove to be a year of growth for housing and construction overall in America.

Furthermore, while the power tool industry in America took a bad hit from the real estate crisis, the blow was in part stymied by the fact that home improvement remained wildly popular during the course of the Great Recession. With American families no longer able to turn to construction companies to help build or retrofit their homes, Americans took it upon themselves to fix up their houses. Even as the construction industry stumbled and faltered for many dozens of months, the US power and hand tool market managed to grow back – and even expand. As it stands, the industry is forecasted to expand by 4.8% each year through at least 2016. By then, the overall value of the market should have buoyed up to something along the lines of $13.1 billion for the total year. Homeowners and garage hobbyists alike should be proud of the economic impact they’ve achieved.

Being that we at Production Materials supply essential parts and components for the construction tool industry, we are a proud of the newly revamped construction boom. We look forward to the challenges ahead, and to the eventual full recovery of the market.

The Need to Better Accommodate Automated Production Systems

2013-01-28T09:30:00.000-08:00

More and more in our daily business, we work with customers who make use of automated robotic equipment. Given the new demands being placed on American manufacturing, the resurgence in the need for domestic production capacity, and the shortage of well-trained American factory workers to fill the fill the hundreds of thousands of unfilled industrial sector jobs across this country; it’s a matter of necessity that companies remain globally competitive by integrating robotic systems to help make their goods. But what often gets left out of the discussion is the need for supply chains to accommodate the qualitative inspection and packaging services to highly automated manufacturers’ needs.

For example, a customer uses robotic assembly to put parts together to form a product. The fact that things are automated proves – in one sense at least – to be a double-edged sword. On the plus side, when the parts are per the company’s specifications, the products can be assembled rapidly, with little human intervention. On the down side, if even one or two parts don’t meet the exacting specifications of a given client’s component design, there can be huge delays in the production process, since the entire assembly or machining line usually shuts down.

At PMI, we welcome business with all kinds of manufacturers. But in order to better meet the needs of automated assembly customers, we’ve added electronic sorting to our array of secondary solutions. Vision systems scan for specific imperfections (excess burrs, overextended lengths, etc.) to separate the defective components from the workable parts. Once the sorting process is complete, we ship the parts back to our customer: defect-free, and ready for seamless integration into the automated production system.

Call us or contact us today if your company could use a helping hand in sorting out these types of automation issues.

More Opportunities for Domestic Manufacturers

2013-01-21T11:04:00.000-08:00

If we take an objective, eagle’s eye look at the manufacturing sector in America right now, what we see is – to put it politely – chaotic. While we are still (just barely) the world’s largest manufacturing center, we have rising industrial superpowers which compete directly with American manufacturing of all stripes. Indeed, many once-iconic North American industries have been outsourced in recent decades in favor of cheaper production methods available overseas. Whether it’s the powerful leather industries of countries like Vietnam, Ethiopia, or Colombia; or the massive steel and electronics manufacturing bases that help drive the economies of countries such as China, Taiwan, Germany, South Korea, or India; America has a lot of world-class competition on her hands – much of it of her own creation. And that list isn’t meant to be comprehensive; that’s just to name a few of the contestants.

Not only that, but these are lean economic times. While we’ve made headway in recovering from the Great Recession of 2007, it’s hardly the pretty picture any of us wants to see. We still have millions of skilled and unskilled workers unemployed, and that’s not an issue that can be swept under the rug by anyone, as far as we’re concerned.

On the other hand, 2012 saw a sea-change in the way a lot of American companies think about our nation’s capacity to build. Both major political parties made the revival of U.S. manufacturing (particularly small business manufacturing) a cornerstone of their respective platforms. And now the mainstream market seems to be following suit: American and Canadian companies are adjusting their inventory strategies to match leaner demand; and this, in turn, requires a more efficient supply chain. The larger production orders issuing out of China or Indonesia are being – in many instances – curtailed in favor of smaller, specialized orders produced by local shops right here in Illinois, Texas, or North Carolina. Also, with international freight charges being what they arethis creates an added incentive for American companies to “re-source” their manufacturing back to the States, since the higher wages in the U.S.A. may neutralize the costs of shipping, large inventories, and (possible) poor quality issues.

We may be beginning to experience the transition to a manufacturing revival in America. It’s a long road ahead of us, but it’s nice to see things looking up again. PMI is proud to be a part of this moment in history, by working with our customers to better match their supply with actual demand.

We Are a Fully RoHS-Compliant American Company

2012-11-21T08:35:00.001-08:00

Any North American company that wishes to be competitive in the early 21^st century would do well to adopt RoHS compliancy. Now… just what, exactly, is “RoHS”? Good question. It’s an acronym that stands for “Restriction of Hazardous Substances Directive”, a regulation adopted into law by the European Union in mid-2006. The resolution bans six “hazardous” substances in the manufacturing of various industrial products. More specifically, it bans the use of lead, mercury, cadmium, hexavalent chromium, ploybrominated biphenyls, and polybrominated diphenyl ether (the last two are flame retardant compounds that have a long history of application in plastics-making). Any company thinking about manufacturing and/or supplying products carrying these toxic substances – at least any company wishing to do business in the European Union, the world’s largest single consumer market – will have to think twice.

What are the sorts of electronic items that RoHS standards apply to specifically? The list runs the gamut from the low-tech to the cutting-edge. Lead-based or cadmium-based paints and pigments, power cords, USB cables, solders, printed circuit board finishes, metal parts, lamps, light-bulbs, and batteries of all different costs and performance levels are among the primary items cited for regulation. Being that much of our business at PMI comes from Europe and/or from North American companies doing extensive business with Europe, our company has rolled with the various restrictions in order to insure that safety comes above all else. We can supply both mainstream and customized components that meet most industry compliances from any angle. In today’s increasingly globalized supply chain network, where a single application can swap continents multiple times before it is completed, RoHS compliance is a wise – and potentially profitable – measure to adhere to.

When the Levee Didn’t Break: Preventative Planning for Hurricane Isaac

2012-10-22T06:00:00.000-07:00

Everyone who watched on TV as Hurricane Katrina devastated New Orleans will have these images forever seared in their memory: polluted water overflowing the banks of levees, aerial shots of flooded residential districts, desperate reports of hospitals operating on emergency generators – the list goes on and on. This summer, when Hurricane Isaac barreled its way into Louisiana, people were naturally worried that another disaster was in the making. Fortunately, this didn’t happen. The new $15B U.S. Army Corps of Engineers levee system, put into place post-Katrina, stood its ground. The levees didn’t break. New Orleans endured days of severe weather, but came out of them strong and intact.

It could have been a different story, of course. If emergency electrical generators hadn’t ensured that power and pumping stations stayed operational throughout the downpour and 80 mph winds, the waters could have done a lot more damage. A LOT more damage. Americans might have woken to a new natural disaster inflicted on a state that has already seen far too many.

Production Materials was part of the emergency effort to sustain New Orleans’ levee system during Hurricane Isaac. Time and again during the days-long storm, we delivered rush-job components for power generator sub-assemblies. Our timely delivery of components allowed for new generators to be built to meet the escalating demand. If we and other companies hadn’t put our collective shoulder to the wheel when it counted most, this might never have been the case…

Our fast turnaround time and our ability to stock critical components have proven their value yet again. We are proud to help out people in times of need: our work during Hurricane Isaac speaks for itself. Here’s hoping we never have to do it again.

Working to Help Build the Next Generation of Fuel-Efficient Tractors and Combines

2012-10-15T07:39:00.003-07:00

It is September already, which means that the bulk of America’s harvesting season is just about upon us. For some, the end of 2012 can’t come too soon. It’s been a rough ride this year for a lot of farmers and manufacturers who make their living off agriculture. As discussed in another blog, drought struck a slight majority of the nation’s counties – including many of its “breadbaskets” – causing irreparable harm to corn, wheat, and soy crops, along with many others.

But there’s a silver lining to the cloudlessness of 2012: namely, 2013. Tractor and combine harvester companies are re-tooling their platforms to reflect the new realities on the ground: the need for greater energy-efficiency and cost-cutting savings for farmers looking to buy their next agricultural vehicle. Gasoline certainly isn’t about to get any less expensive anytime soon, barring a miracle, which – coupled with lower profit margins than usual – has led to a demand from farmers for vehicles that perform all the tasks they’re already so good at – but with a higher ROI as far as long-term fuel savings.

The mixture of market realism and venture optimism can both be felt here at Production Materials, where we are heavily involved in supplying parts for the agriculture industry. We’re looking into ways of providing cost-savings to farm equipment manufacturers so that they have the necessary R & D funds to improve their overall performance efficiency. We’re helping companies reduce in number the varieties of metal and plastic nuts and bolts that go into making their machinery, thereby standardizing their production process and imparting it with maximum efficiency. In turn, we’ve seen major agricultural machine manufacturers bring their supply chains closer to home in order to scale back unforeseeable overseas costs. This, in turn, is definitely helping American manufacturing recover from its long decade of slump and outsourcing.

In short, it’s a mixed bag for a mixed year, with some parts of the economy hard-hit, and other sectors beginning to flourish for the first time in many years. Here’s to believing that 2013 will prove a beneficial year for all parties involved. Production Materials intends to play a key part in that!

Drought and the Agricultural Industry: How Production Materials Can Help

2012-09-04T13:40:00.002-07:00

As anyone who’s made it outdoors these past few months is likely aware of, this summer has proved a scorcher. In fact, the summer of 2012 is breaking record after record in terms of overall heat, producing the hottest summer in American history, or at least since weather has been kept track of on the national level. 55% of counties across the U.S. have been declared “natural disaster regions” by state and federal authorities. Crops are withering, cattle are being forced to adopt imported feed, and wildfires rage unchecked in many “hard-to-reach” corners of the country. In short, it’s looking to go down in the books as yet another, all-American, 21st century-style summer. Who knows what records remain to be broken?

Already economic forecasters indicate the price of cereals will go up in 2013 on account of the drought. For the average consumer, that means a higher price-tag on their breakfast cereal. But for those in the agricultural industry, it means a lot of belt-tightening needs to be performed. Like it or not, the weather is the weather, and every farmer since the days of the Fertile Crescent in Mesopotamia knows there are ways and means of keeping down the cost of drought on his or her livelihood.

One way that those in the farming sector are reducing their costs is by making due with tractors and combines they already possess, rather than purchasing new ones. At Production Materials, we’ve definitely noticed an uptick in the frequency of rush requirements in providing spare parts for tractor suppliers. That’s a strong indicator that farmers are investing in replacing individual broken-down parts. We’ve also noticed a faster need for replacement, which is in all likelihood an indication of how the soil is affecting the performance of the farming equipment.

We know it’s been a hot one for those in agriculture this year. But we at Production Materials are trying to do our share to help our farm implement suppliers fight the drought. If you need new parts for your tractor or combine, and you need them in a hurry, we are part of the team that will be there to help. That’s a promise from one Midwestern company to all others: we won’t let you down in good times, and certainly not in hard times.

Enough about Us for One Minute… Tell Us What You Are Working On

2012-08-20T09:30:00.000-07:00

First of all, we like to thank our readership, those who have been taking time to read our posts in the midst of a hard work-day. We hope you’ve found our posts helpful in letting you know more about our company, as well helping you out in your own business. That being said, a blog doesn’t have to be a one-sided conversation. We’d like to take a moment and just listen to you and hear what you have to say about what’s going on at your company.

For instance, what are the kinds of the products you find yourself building these days? As you know from our blog, we’ve been seeing increasing business for more specialized hardware. What sorts of industries have you been seeing a lot of work from? Do you have any particular projects challenging you in one way or another?

Obviously, we at PMI would like to help you out in getting the job done in a way that works best for both you and for your customer. Or maybe you’ve been running into challenges as far as managing your inventory. Well, Production Materials can certainly help you out with that; we’ve been running highly successful vendor management inventory systems for more than 20 years.

But we aren’t necessarily asking you just for the sake of business. We want to show people who’ve been taking the time to read this blog over the last year that we’re here to listen to you, and not just sit back and do all the talking ourselves. Who wants that?

Feel free to drop us a line on our blog, or if you’d prefer to email us in private, feel free to do so by contacting sales@productionmaterials.com.

We know we have a lot to say. But we’re all ears and ready to listen to what you have to say.

The Rise of Customization: It’s Coming to America Like We’ve Never Seen It Before

2012-08-13T08:47:00.000-07:00

We live in an age where – so long as the money is right – a customer has unprecedented levels of flexibility in their ability to personalize the product they buy. For a few dollars added on to your purchase, you can get an iPhone or iPad engraved with a customized message that says pretty much anything you want it to. For a few dollars extra, you can have that same iPhone delivered to your doorstep overnight. With the rise of fast-moving supply chains that can accommodate every whim of the consumer as never before, a corresponding inevitability occurs: the line between consumer and manufacturer gets slightly blurry. With so many consumers asking for “customized” or “personalized” product experiences, the consumer has begun gradually to play more and more of an active role in the physical process of production itself.

We at Production Materials couldn’t be happier about this industry trend, since customization and personalization have always been (apart from quality itself) our special focus. For example, we are truly excited about the new 2013 Dodge Dart from Chrysler Group LLC, a car that offers “five different basic styles, 12 different exterior colors and up to 14 different interior color schemes, including ‘black and ruby red’ and ‘diesel gray and citrus.’ Buyers will pick from up to seven different wheel choices and can get a dashboard they can personalize to either show digital performance data, or virtual analog gauges.” The total number of potential combinations of Dodge Dart that can be produced is estimated to be over 100,000.

To live in the “Global Village” means to exist in the Global Market. Gone is the mass-produced mentality of Henry Ford and his Model T. The future belongs to the artisans and specialists. It will increasingly become the role of companies like PMI to aid consumers in making smart personal choices as far as buying the “right fit” of product for them, whether that’s a car or a computer. Companies like ours with a history of personalizing and tailor-making the consumer experience will be at a marked advantage over companies who’ve only ever known the way of the assembly line.

The Ins and Outs of Insourcing and Outsourcing

2012-06-25T14:26:00.004-07:00

There was a time not long ago when it seemed that every factory in the United States was doggedly determined to set itself up anew in China. After all, the price of labor was astronomically cheap; there were no OSHA requirements. As a result, our manufacturing sector took a monumental hit from which it is still recovering. That being said, there’s good news to all this: while not all of the factory jobs that powered this nation in the 50s – 70s are ever coming back, a lot of them have already returned, or been “insourced,” as the terminology goes.

Part of the reasoning behind this decision of American companies to insource manufacturing jobs back to the States is because of the shorter, more cost-effective “lots” involved. It’s beginning to make better sense for “higher-end” lots to be sourced locally – say, an order of 500 units where the overall material and workmanship quality is higher, and the shipping costs remain astronomically lower. In the meantime, if a cheap product requires a larger production run with less costly materials (say 10,000), then it makes good sense to outsource the lot to an overseas company where the overall labor costs match the larger, less customized volume required.

The fact is that at PMI, we’re masters at both insourcing and outsourcing, certainly when it comes to reducing a client’s costs while still maintaining the quality of product. Recently, we were bidding with a competitor for a contract with an agricultural client. The client originally wanted their product to be made from grade-5 steel – something both our company and our competitor were able to deliver on – but that particular material proved too costly. This might have been the end of it for some companies. But instead, we sorted through our supply chain, taking a look at other materials that would cost less and still provide the necessary workmanship required. We found a supplier who could provide us with SAE 1541 steel, a cheaper material and one that would still meet all client specifications. Once we discovered that loophole solution, the rest was easy: the client ordered from us, and we provided them with exactly what they needed.

Navigating the ins and outs of insourcing and outsourcing is never an easy proposition in today’s marketplace. It requires experience, savvy intuitions, and a long-time list of connections. At PMI, we bring all of these to the fore when going to bat for any given customer of ours.

How PMI Helped Save an Industry on the Brink of Disaster

2012-06-06T16:58:00.002-07:00

It’s not like we’ll ever go around wearing superhero capes here at our company, nor will we ever take principal credit for keeping the American RV industry from the edge of bankruptcy. But it has to be said, and accurately so, that when the Great Recession hit our shores in 2008, we played our part in making sure things stayed afloat. The Great Recession sent shockwaves rippling through every sector of the country. One of those regions most impacted was the already hard-pressed Midwestern Rust Belt, which had lost hundreds of thousands of manufacturing jobs due to outsourcing and automation throughout the first years of the decade. In the course of a few years, Midwestern cities had eroded noticeably. Huge sections of Detroit lay abandoned to the weeds and spray-paint. And small, one-industry towns across Michigan, Indiana, Ohio, and western Pennsylvania went up for sale seemingly overnight once their factories shut down.

One industry powerfully affected by the downturn was the RV industry. With the widespread devaluation of real estate across America, it suddenly didn’t seem like a great idea to go out and buy an RV, especially when one’s home was up for foreclosure. The RV industry – much of it based in South-Central Michigan as well as Elkhart and South Bend, Indiana – turned to PMI to help keep its costs down. Since we’d already provided considerable numbers of parts for the RV industry, it was only natural for them to look to us for some leeway during hard times.

When times got tough, we didn’t let them down. Our company went into overdrive in making sure that our loyal customers were provided for in hard times as well as boom times. We cut the costs of our parts and services, and strategized many hours of the day to insure that a down-on-its-luck industry would rise to its feet again.

The RV industry is already making a comeback. Sales and rentals are up across the board, profits are being made, and RV industry towns that hovered on the brink of vacancy are finding new ways for life to go on. It’s not as though we bailed out the Big Three or anything, but from our standpoint, we’re glad to say that when the going got tough, we didn’t flag or fail our trusted clientele.

Our Vendor Management Program – an Update

2012-05-15T09:30:00.000-07:00

Sometimes a blog entry requires its sequel. People don’t like to leave things hanging in mid-air; they want to know conclusively how a particular initiative, job, or market is now progressing. People want status updates.

Several months ago, we were given approval to expand a vendor management program for a major company in the grooming industry. At that point, we’d just established our reputation with the company, having performed well in Phase One, where we kept in stock four significant parts for their production cells. Anytime they needed a certain new number of parts for their factory, we supplied them with a bin rotation system. Meanwhile, we tracked the number and types of parts we handled. We did our job so well that the company decided to let us handle even more of its “inventory supermarket”, assigning us with storing, tracking, and providing 15 additional parts.

As time goes by, our client has grown ever more attuned to the advantages offered by our part management services. We started out handling the specific parts of a specific robotic cell, but now they’re adding on new facets to the program never originally conceived of. The quality of our services have been such that the grooming company has recently decided to add electrical wire parts, rubber components, and plastic items to the list of resources we manage for them. Our computerized inventory management and timely delivery have served our client well, adding significantly to their overall profit.

We’ve begun preliminary fact-finding with other companies to implement our “inventory supermarket” program with. As the year ticks along, more vendors seem to be climbing onboard. I guess they know a good thing when they see it.

Chicago’s Hospital Building Boom Presents Fresh Opportunities for Industry

2012-05-09T15:30:00.000-07:00

Across the Windy City and its outlying suburbs, a massive building boom is underway. New hospitals, university hospitals, and medical centers are sprouting up to meet the demands of an aging Baby Boomer population. Rush University Medical Center recently put the finishing touches on a $654 million hospital. The Children’s Memorial Hospital is replacing its aging Lincoln Park facility with a state-of-the-art $855 million behemoth in Streeterville. Not to be outdone, the University of Chicago’s Medical Center has opened a new $700 million hospital campus on Chicago’s South Side. The demand for medical care has never been so lucrative, and the construction of new floor-space for the medical industry is at an absolute premium, with billions more dollars expected to be spent in the Greater Chicago Metropolitan Area alone.

Being that we are an Illinois company, we are following these “building boom for Baby Boomer” developments with more than a passing interest. As a supplier of anchoring systems, special high-strength bolts and nuts, and corrosion-resistant coatings, we are aptly suited to support this demand. As Illinois steps further into the new millennium and new healthcare construction continues its rise, we anticipate pulling our fair share of the weight in helping Chicago’s medical centers answer the challenge of meeting the largest care costs ever seen in United States history.

The “P” in Our Initials Could Equally Stand for “Problem-Solving”

2012-04-11T09:30:00.000-07:00

At PMI, we know a thing or two about fielding highly specific, technical questions from our customer base. When we learn of a client who is having trouble with a particular product, not only do we try to come up with the right corrective solution, but we also present the solution using the most cost-effective means we know how.

An example of this occurred quite recently. Previously, we had supplied special screws to a client of ours. The screws were used to assemble commercial hose-reels that would in turn be placed on spray-trucks. These trucks would then drive across miles and miles of uneven farmland, spraying crops with chemical or water solution.

Everything looked good on paper. We supplied the screws per the specifications our customer had indicated in their blueprint. Yet something wasn’t entirely right. When the spray-trucks would advance across jaunty terrain, the screws in the hose-reels would rattle, and even sometimes come loose. Fearing that they might be looking at replacing an entire hose-reel system, our client came back to us, hoping for a possible solution.

Straightaway, we examined the screw samples our customer had presented us with. We quickly realized the client wouldn’t have to pay an exorbitant amount of money in order to redesign their entire hose-reel system. Instead, the only thing that needed doing was to provide a way for the very same screws not to come loose. To that end, we put thread-locking patch onto each screw, and sent them back to the client. After putting the screws through a vibration test, their engineers could attest that the screws would no longer come loose in the various applications.

This might be one of the reasons the same clients keep coming back to us for repeat jobs. It’s not just what we produce or assemble for them. It’s the reasoned, carefully-assessed solutions we provide.

More Flexible Options for Small- to Mid-Sized Businesses

2012-03-16T08:31:00.000-07:00

Since we’ve established our presence online, we’ve noticed a number of interesting trends as far as our new customer base. Not only have we observed how the web has improved our ability to reach out to and supply the needs of businesses operating further away from us than ever before, but we’ve also increased our exposure to a growing number of small- to mid-sized businesses that want to work with us. Since many of these businesses don’t necessarily have the same commercial capital as some of our larger customers, we’ve decided to make our company’s services more accessible and affordable, by offering the option of making their purchases via credit card.

Additionally, we’ve decided to expand our sales force this April. We will be adding an experienced person in our industry, a consummate professional with business contacts domestically and overseas. With this new member of our staff, we’ll enhance our ability to provide a wider range of product and service requests (both interstate and overseas). We’ll be able to offer more options to better fit our customers’ changing needs for simpler, all the while retaining our capacity to take on the traditional tough assignments we’ve always taken on. Our exposure to both domestic and international supply opportunities will be greatly increased.

With these new resources in place, we continue to expand our ability to help our customers build their businesses through lower costs, shorter delivery times, and consistently excellent service and quality.