IOWA LASER'S PURCHASING POWER  top

By Jim Mattson, Purchasing Manager

Hello Iowa Laser Customers and Friends. It is almost too hard to believe that we have nearly wrapped up the third quarter of 2010. I am not really sure where the time has gone, but I do know that this quarter has had its share of successes and opportunities. To all of our customers; thank you for helping make 2010 a great year so far. To Iowa Laser’s suppliers; thank you for all of the support you have provided us and our customers.  

I typically try to give some insight in to what I believe steel pricing is going to do next quarter. There has been a downward trend on material pricing for the last few months. There are a number of factors that influence this, but the main factors are scrap pricing and capacity. Scrap has been declining and the steel mills finally started to produce steel at something other than 50 percent capacity. This has had the effect of forcing steel pricing down. In my estimation we will see pricing head upwards as we start getting into the traditional manufacturing cycle (late third and fourth quarter). This pricing pattern is definitely not new, and it is something that we are actually becoming quite adept at handling. As always we will gather as much information as we can and provide our customers with the best information that can be used in decision making.

One other subject that I would like to address is 201 stainless steel. I have been doing some research on this type of stainless and it looks to be very promising as an alternative to 304 and 316 stainless steels. It has many of the same characteristics and benefits of 300 series stainless, but due to the lower percentage of nickel it is cheaper and offers a more stable pricing structure. The technology for 201 stainless has been around for some time, but it really appears to be gaining some traction in the manufacturing arena. Obviously pricing plays a large role in material changes. If you are a consumer of 304 or 316 stainless steels, I would encourage you to investigate the viability and availability of using 201 stainless steel, now or in the future.

AN ACTIVE SELLING POINT    top

By Joe Barber, Sales & Marketing Manager  

We’re more than half way through 2010 and we have been blessed with an abundance of work. As I’ve talked about in some of my previous articles, it looks like all areas of the economy have begun to recover and everyone seems to have need for fabricated metal goods. As many of you have experienced, our lead-times have been extended out as we try to accommodate everyone’s needs. I wanted to take this opportunity to share with everyone what actions are underway to return to the quick turnarounds that you have come to expect from Iowa Laser.

Throughout this summer, we have three machines being installed to help address our capacity needs and add to our existing capabilities. As I’m writing this article, our new Trumpf Tube 7000 is being used for the first production run. This is our second Trumpf tube laser and will allow us to process longer lengths of tubing with larger diameters. Additionally, we have a Trumpf 3040 sheet laser nearly assembled on the floor. This machine can process up to an 80” x 160” piece of material and doubles our capacity for handling materials in this size.

Lastly, Iowa Laser has made the leap into the world of plasma cutting. We have purchased an MG Messer 400 amp, high definition plasma cutting system with bevel cutting capabilities. The machine is being assembled on the floor with hopes to be operational in mid September. If you have existing, heavier plate items that you are purchasing from us and would entertain the idea of moving to a plasma cut product, please don’t hesitate to contact your inside sales representative for a quote. If you have plasma cut product being purchased elsewhere, contact us for a quote to measure our competitiveness.

It is our hope that with the addition of this machinery and an aggressive hiring campaign, we can address any capacity or delivery concerns that you may have. Our management staff will be dedicating time and resources into a strategic planning process that will provide us with direction for the coming years. Our ability to serve all of our customers, no matter what size, will be a main focus of that process and will be a driving force behind the decisions being made.

We recognize that without the loyalty of our customer base, we would not have the successes that we are experiencing today. We are aggressively working to protect that loyalty and provide each of you with the level of service that you need and deserve. Our management team welcomes your comments and feedback, so always feel free to contact me at joeb@iowalaser.com.

CAPABILITY UPDATE   top

With the addition of three new pieces of equipment on the floor this month, Iowa Laser is fulfilling it's commitment from earlier in the year to add capacity and reduce lead times. We've purchased and installed two new lasers (21 lasers on the floor!). First, a new Trumpf 4000W laser with a 6'x12' table doubles our capacity for larger sheets of material. Second, we're running the latest technology from Trumpf Equipment in a 3600W tube laser that extends tube processing capabilities from 6" round to 10" and 4" square to 7". Finally, our new Messer plasma cutting table is scheduled for first cut near the end of September. With cutting capabilities to 2" carbon steel and 1-1/2" stainless/aluminum, our goal is to help reduce your supply base by 1. Will you add us to your supplier list today?    

• Sheet laser cutting (material on hand):  2 weeks
• Tube laser cutting:  3 weeks or less    
• Custom laser cutting:  2-3 weeks
• 5-axis laser cutting:  3 weeks or less
• Laser welding:  3 weeks
• Secondary operations (forming, machining, welding):  3-6 weeks depending on project

THE ANALYTICS OF QUALITY     top

By John Lamos, Quality Manager

Just like a proud dad, I would like to introduce you to the most recent addition to the Quality Lab. We recently purchased a Virtek Laser QC to automate inspection processes at Iowa Laser. The system is a laser projector that is mounted over a scanning table that captures 500 data points per second as it scans a 2d part. The Laser QC is accurate to +- 0.002, and can inspect a 2D part with multiple holes and configurations in a few short minutes compared to manual inspections requiring 2 to 10 minutes or more depending on part geometry. Thickness of the part can range from 0.002” – 8.000” and formed parts can be checked as long as the formed leg is 8.000” or less. The Virtek laser QC will also print out a dimensioned inspection report or can easily send the inspection data to manufacturing engineering if reverse engineering is required.   

Another very unique feature of the Virtek Laser QC is its ability to check oversized parts, as long as there is a feature that can be carried from one scan to the next. The only thing inhibiting part size is the room itself.    

Please stop in for a demonstration if you are in the neighborhood.  

PRESIDENT'S STATE OF LASER   top

By Mark Baldwin, CEO

If you read the last newsletter, you are aware that I am reprising my role as President of Iowa Laser, following Sean Abbas’ departure. Many of you have only known Iowa Laser under Sean’s presidency, so I hope that change won’t be too startling. Unfortunately for me, the change has been very startling. Over the 10 years that Sean was president, Iowa Laser grew significantly, with more than a 50% increase in sales and workforce, and a doubling of our factory space. Add to that the complexity of doing business in an entirely new century – yes, my role as president was during the last century – I would compare my return to trying to drink out of a fire hydrant.   

In the last century, we didn’t have fully robotic lasers, state of the art fabrication equipment, a 24/7 production operation, and an ISO certified quality system. We did try to focus on our customers, and thankfully that has not changed.

In addition, we have not changed the staff. As in most situations, the one in charge is only as good as the people he teams with. And in this case, Sean did a fantastic job of teaming with great people. So, although “getting a drink” now involves getting very wet, the team is here to ensure your needs and expectations continue to be met.    

So, as I return to the day-to-day operations of Iowa Laser, my hope is that you’ll continue to see us as a company that pays attention to your needs. And, if you hear me reminisce of the “good old days,” remind me that the best days are still ahead of us.    

ON THE ROAD AGAIN  top

By Matt Miller, Outside Sales   

Unless you’ve been under a large rock for the last few years, you’ve been privy to seeing a complete realignment of U.S. manufacturing. From inventory to sales levels and strategic planning to month-to-month risk assessments, past trends and assumptions are under revision until a future date.  

I’ve heard positive stories of supplier-customer relationships where a full-stocking of the shelves has proven beneficial and others where suppliers are on a new reality show called “Negotiator” that although difficult (and seems to fly in the face of service-based manufacturing), often brings more respect to the relationship. If not, you’re probably better off for it.  

Not that BP needs more bad press, but recently suppliers of spill boom, the vinyl protective sheaths used in oil containment, have reported BP is refusing shipment and payment for millions of dollars of unused product, leaving the suppliers with immense debt, layoffs and delayed payment to creditors. 

Granted, the oil spill was a ‘global crisis’ and my guess is the suppliers will inevitably be paid, if not by the Golden Rule then by BP’s public relations department. But the long term ramifications for these suppliers - in employee livelihood and even their credit rating - will go unnoticed or uncorrected for a period of time, in the end a disheartening result of poor decision making. On the surface it appears the companies accepted risk without verification, assuming contract terms via email for the “good of the deed.” They assumed a fair give-and-take and were given a refresher course on risk management.  

It’s being reported a few companies held their ground on production or required stronger terms before ramping up and walked away unscathed. It takes a tremendous amount of confidence to be willing to pass on a large contract because your terms aren’t met, especially these days. But if you do, nothing will come between you and your company’s goals. If you don’t, if you lose yourself for any reason - be it the dollar signs, the good deed or your customer’s crisis – you may find yourself forced to have dreaded layoff conversations or worse, close the doors. If your company is anything like ours, making decisions that preserve our employee livelihood is job #1.  

Many of us learned this lesson in 2008 or before. After much toil and travail, today’s news on the local street supports this. The variables of success are more clearly defined: march in unison with resolute fiscal responsibility, redefine labor and equipment rates, adjust staffing levels and build realistic growth plans. Don’t stray. I hope seeing the flashback of BP suppliers reiterates you’ve made the most of the last few years. Kudos to you and yours.  

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