11/3/2014 1:28:00 AM
HEADLINES
PERSPECTIVE: National Machinery Marking 140 Years
In 1889 – just 15 years after being founded in Cleveland, Ohio – National Machinery Company was described by the New York Daily as “a mammoth concern, enjoying the unique distinction of being the only establishment in the world capable of equipping a bolt and nut factory with machinery. They have correspondence and make sales all over the world.”
Six years after its founding in 1874, National Machinery moved 90 miles to the southwest from Cleveland to Tiffin, Ohio, where it has been ever since. The plant has expanded throughout its history.
Fastener+Fixing Magazine executive editor Phil Matten toured National Machinery in conjunction with the 140th anniversary and found two significant points in National’s history: “In 1900 Earl “E.R.” Frost, son of Meshech Frost, the local entrepreneur who helped bring National to Tiffin and later purchased the company, was asked to step in as the company’s general manager in order to turn around a then troubled business. More than a century later descendant Andrew Kalnow, stepped in to reclaim an again troubled business into family ownership,” Matten observed.
In 2002 company was renamed National Machinery LLC and became part of the NM Group of companies.
History does show: National Machinery holds more than 7,000 SKU’s in a Tiffin warehouse for servicing its machines.
Rebuilding of discontinued models presents challenges, but National “still finds a major demand for these services, which is testament to the durability and reliability of the machines we build,” CEO and owner Andrew Kalnow told Matten. “In many cases these customers are most likely investing significantly more than the original acquisition cost of the machine.”
Today National features new, advanced machining centers, grouped into production cells and supported by ready-to-use tooling. That allows programmed production throughout National’s two-shift six-day week.
In the main assembly hall are ranks of partially-assembled Formax machines, plus National’s smaller ball and roller headers. Dominating the hall is National’s new Formax XXV – in the final stages of assembly and crowned by a distinctive robotic arm that facilitates rapid change of individual die blocks. The Formax was launched at WireThis is the second 25mm cut off machine, launched at Wire Düsseldorf 2014.
Before being shipped every National machine is run on the company’s own wire stock and tooling to levels substantially beyond normal operating conditions.
National’s new Tooling Technology Center demonstrates how tooling design, development and manufacture has become a major service National provides its global customers, through its Met-MAX Innovations technology division.
Seven years ago National opened a plant in Suzhou, China, to produce the LeanFX model. Half of the machines are sold within China.
Two years ago National Machinery’s European operations moved to a custom-built service, rebuild and parts facility, still located in the historic city of Nürnberg.
National also has invested in online customer support capability, including service via online links direct to installed machines to achieve rapid response to customer queries. National Machinery’s Quick Calc E tooling software is now Cloud hosted for rapid, global access.
Kalnow emphasized the significance of the largest investment program in National’s history.
“National is about 75% complete in a three-year, US$21.5 million capital expenditure program at its main factory and world headquarters in Tiffin,” Kalnow explained to Fastener+Fixing. “This CapEx program is dedicated to manufacturing capacity expansion and modernization, facility upgrade, and office renovation. This amount does not include additional CapEx at National’s other facilities in Germany, China and Japan, which are part of its global reach to provide customers a worldwide network of service and support.”
Kalnow questions the name of National’s “Tooling Technology Center – “The truth is this is a generation away from the tool room of old and to continue to call it that is simply unrepresentative and unfair, both on the investment in technology that goes into it and the quality and application of the people within it. There is still a major skill set required of the people but as never before they are aided by advanced technologies, which ensure repeatability.”
In skill retention, the family company benefits “from not being a massive multinational,” Kalnow reflected.
“There is a philosophy that we are one big family in the company. That might sound a bit old-fashioned but if it resonates, and it most certainly does in Tiffin because it has a genuine foundation, then it contributes strongly to the overall performance of the business.”
With inevitable retirements, National is “very committed to bringing along younger people and ensuring the full complement of staffing we need,” Kalnow told Fastener+Fixing. National Machinery annually funds three engineering scholarships.
The Tooling Technology Center is an obvious beacon to attract young talent, Kalnow pointed out.
Employment challenges are different in China, with its high mobility. Family principles, however, have a positive effect, and the reward for National has been significantly lower “churn” than the typical 20% annually that plagues other firms operating in China.
“There are more family days and company outings than in our US or even Japanese facilities. We and the cafeteria quality of food is always close to the top of people’s list!”
Including those assembling for affiliate company, Cleaning Technologies Group, National now employs 125 people in Suzhou. The plant also produces so Mectron inspection machinery.
Kalnow told Fastener+Fixing he is more than satisfied with National’s growth in China – which began in 2006.
“We are very clear, from our own research, that some 60% of the world market value for our type of machinery is now in Asia – substantially more, of course, if one calculates on machine population – so having a strong manufacturing, service and support base in China is essential.”
At the time National faced a stark home market.
“North America was, at best dormant, and really one can say dead,” Kalnow said. “It remained that way until late 2009 when there was a cathartic upswing with the rescue of the North American automotive manufacturing sector and a greater consciousness of the necessity of effective regional supply chains.”
The North American market had been “so active for everyone in the 1990s, but then almost literally disappeared in the 2000s.”
National marked its 140th anniversary in September with tours – including one for retirees who served more than 25 years with National, for customers and suppliers, and a Sunday open house for the Tiffin community. There was a series of six technical seminars each day – including from affiliates – Mectron, Ransohoff (CTG) and DTI. Web: NationalMachinery.com
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