Category Archives: Manufacturing

Ohio Manufacturing Facts

Ohio is powered by manufacturing. Ohio manufacturing is responsible for almost 17% of Ohio’s Gross Domestic Product and contributes to the quality of life in Ohio by providing:

  • More than 600,000 jobs for Ohio workers
  • An annual payroll of more than $33 billion, the highest total annual wages of any non-government economic sector
  • More than $46 billion in products to more than 216 countries and territories
  • A safer environment through decreased emission and increased recycling

In 2009, about 10% of all Ohio workers were employed in manufacturing. Almost 50% of Ohio manufacturing firms employ fewer than 10 people, while 0.3% employs more than 1,000.

Manufacturing is the largest of the 20 sectors of Ohio’s economy with 16.7% of total output in 2010; durable goods were 9.8 percent and non-durable goods were 6.9 percent of output.

Ohio’s manufacturing sector produced $80.0 billion worth of goods in 2010, ranking it fifth in the nation after California, Texas, Illinois and North Carolina.

The average annual earnings of Ohio workers on manufacturing payrolls in 2010 were $53,281.

In the year 2011, Ohio was ranked first nationally in new site selections and the manufacturing was involved in 52% of the new site selections. Transportation equipment, fabricated metals, chemical and machinery manufacturers were the leading manufacturing investors in 2011.

In the year 2011, Ohio ranked third in manufacturing employment nationally, with 5.4% of manufacturing jobs nationwide. Ohio had 25,000 more manufacturing jobs in 2011 than in 2009. Also, 12.5% of Ohio nonfarm employees worked in manufacturing, compared to the national percent of nonfarm employees in manufacturing of 8.9%. In 2011, Ohio was the ninth largest exporting state and in the same year they exported $46.4B in goods to 216 countries and territories.

Ohio had 307,900 jobs linked to manufactured exports in 2009, 7.1% of Ohio’s private sector employment. U.S. manufactured-exports linked employment represented 4.8% of private sector employment.

Domestic versus Import

When companies are tasked with sourcing materials one big question always come up; Should we buy domestic or import? This post will help give a definitive answer to that question: Domestic.

Cost is always an important factor, but just as there is a difference in cost, there is a difference in quality. Although you may save money up front, it may not be least expensive in the long run. There is a chance that products ordered may be missing from the boat or the product may come in not meeting standards. If that’s the case, the product will need to be reworked, which adds to the cost and time in order to fix the issue.  Or there could again be the case of dock workers on strike. This strike negatively impacted the economy at whole and really damaged business that were importing products rather than buying them domestically.

Another issue is that when buying imported products, you are required to purchase a minimum; which is oftentimes an entire container load worth of material! What happens when you only need a fraction of that amount? You will have to order more of products you may not need just to fill the container. Then once you have ordered, the lead times may take up to 4-6 months before delivery. It is important to take into account the manufacturing process, as well as the extended shipping times.

After waiting all that time for your product, there is also the chance that the material is incorrect or defective. If you need to ship it back across the ocean, you will not be able to return and replace it immediately, adding more to your lead time and cost.

Domestic products keep this economy moving, it keeps jobs here, employs many Americans and it supports not only them but their families and communities.  Although you may save anywhere from 10%-35% on cost, you have to consider that the jobs that many other Americans are performing day in and day out, is ultimately affected as well.

We here at Keystone Threaded Products Company fully believe in buying and producing domestic, American made products, and supporting our economy and fellow citizens, while making sure our products are of the highest quality.

Keystone Threaded Products Company and the Effect of Lower Oil Prices

Last month global oil prices had fallen to significant new lows, leading to shockingly deleterious revenue shortfalls in many countries which rely on the exportation of energy for their economic well-being. Meanwhile, North American consumers have been enjoying substantial savings in the purchase of petroleum fuels for such needs as home heating or for the operation of motor vehicles, to name just a few of the areas where direct savings have materialized due to plummeting oil prices.

It wasn’t that long ago that we were seeing stable (and elevated) oil prices at about $110 per barrel. Since last June though, prices have been cut in half as new sources of North American energy have been exploited and as there has been less demand as a result of slowed or arrested economic growth in many parts of the world.

Despite the pain that is felt in some sectors, many economists believe that there are winners in a time of cheaper oil and they’re not just consumers. Though they estimate that the economic activity of oil companies and related businesses could slow by about $150 billion this year, they also note that in other areas of the economy an increase of around $400 billion is quite conceivable.  Just looking at the numbers it becomes clear that the good outweighs the bad (for now). This is all calculated to have a net effect that is twice the annual value of the payroll tax cuts that occurred in 2011 and 2012, both of which spurred sizeable boosts to consumer spending.

One company that certainly can benefit from lower oil prices is Keystone Threaded Products Company, a family owned and operated firm that has been manufacturing quality threaded parts since 1920. It takes energy for Keystone to manufacture their line of standard threaded products. Contact Keystone Threaded today to see how you can enjoy both product quality and the substantial cost savings from lower oil prices when you stock up on their top-notch threaded parts.

What is the skills gap, and how do we overcome it?

As American companies such as us here at Keystone Threaded Products Company, bring more manufacturing jobs back to America in the reshoring efforts, challenges have sprung up.  And as our economy is trying to recover from the 2008 recession, employment in the skills gap is shifting.  One of the major challenges have become the obvious in recent years is the skills gap, and small businesses are struggling to find employees whose skills match their industry needs.

What is the skills gap?

The skills gap is the space between the skills that are needed for daily manufacturing work, and the skills that exist in the current workforce.  This leads to skilled workers going on without jobs, and manufacturing jobs left unfilled.  The skills gap has an impact on small businesses, since they do not have the same resources as larger corporations to spend money on recruiting skilled workers.  This also has an impact on the economy as small businesses account for two thirds of new jobs.  Estimates place the number of jobs that are empty due to lack in skills gap at nearly half of a million jobs.

Why does the skills gap exist?

There are a number of reasons the skills gap has developed.  The growth in demand increases year in and year out, while the baby boomer generation, which is well-trained in manufacturing skills, continues to age and retire.  Another reason is that, while prospective workers are gaining skills, they aren’t the skills needed for necessary job functions – workers needed basic math and computer abilities.  Nowadays, corporations are investing more on capital and modernized machinery – where the skills of the trade are no longer needed, since modern CNC (Computer Numerical Control) machines can be programmed to produce a part.

How do we overcome the skills gap?

The best way to address the skills gap is for manufacturers to turn to the younger generation and demonstrate to them that manufacturing is no longer a dark, dirty segment of the economy.  It is now a technology-driven and is a fine alternative to a four-year college degree, with competitive wages and cleaner work environment, also with room to move up the ladder and become a shop manager.  As well as in the manufacturing industry every day is a new challenge, as products and manufacturing is constantly changing.  And the skills in the manufacturing industry are gained through experience, since some newer machines cannot perform the functions to produce complex machining. Manufacturing is an art form; the complexity cannot be done by machines alone, and need the skilled, human touch.

Many industries are doing this already, with manufacturers’ small and large working with local community and local schools to develop technical programs and educate students on the viability of a career in the manufacturing field. Many companies are also offering apprenticeships for those interesting in the field, but haven’t yet chosen a specialty as well as on-the-job training. This can help create a new generation of workers who can be part of the manufacturing sector for generations to come.  One of the biggest problems is retaining those workers that are trained, and being able to have them teach the younger generation their experiences.  Unfortunately with such competition for trained workers, they constantly have offers of work.

At Keystone Threaded Products Company, we see that filling the skills gap is necessary to the health and growth of the American manufacturing sector moving forward.  Closing this gap will help our economy grow and succeed, and set a foundation for decades to come.  If you are interested in helping to close this gap, get in touch with us or with our local resources including vocational schools and manufacturers alike that are looking for workers.

How Near-Shoring Can Help Create More Jobs

Keystone TP NearshoringRecently there’s been a near-shoring movement that’s been creating a lot of hype in the supply chain world all thanks to a substantial boost from consumers. Near-shoring is when businesses are transferred from a nearby country to another, allowing both to benefit from the geographic, economic, cultural and political links. New initiatives are being introduced to the US, including the Million Jobs Project an ABC World News series on Made in America and Wal-Mart’s “Buy American” campaign and commitment. The intent is to source an additional $50 billion in products from US manufacturers.

Near-shoring is an important concept because, according to the ABC World News website, 60% of everything US consumers purchase is manufactured overseas. If consumers were to buy just 5% more on made in the USA goods, over one million additional jobs would be created here in the US. In order to alleviate this issue, some large manufacturing chains have already brought a decent portion of manufacturing back to the US due to the rising costs of outsourcing as well as the need to improve service by bringing them closer to consumers.

More and more companies are getting on board with near-shoring in an effort to reduce costs and inventories. Near-shoring is increasingly becoming a viable and effective business option for both emerging and long-existing companies. It not only helps save money by creating more US jobs, it also reduces physical and political risks, proving just how beneficial it’ll be for companies to consider this growing initiative.

The Future of the Heat Exchanger Market

precision-roll-threaded-bars-heat_largeHeat exchangers are essential pieces of equipment that transfer heat from one medium to another. They have become a key part in the chemical & petrochemical industries, power generation, pharmaceuticals, refrigeration, HVAC, pulp paper industry, food 7 beverage processing and oil & gas industries. However their biggest use is in the chemical industry.

The industry has grown a lot in the last few years alone, and it’s expected to grow at even faster pace within the next several years. One key reason for the growth has been advancements in technology of the heat exchangers. Areas like, China are currently experiencing the high heat exchanger demand. The global growth is largely thanks to an increase in industrial growth for these growing economies. The heat exchanger markets in other countries such as India and Japan are expected to grow exponentially as well as they produce heat exchangers domestically or source them from other countries. Other major countries in the heat exchanger market include the U.S., Italy, Germany, Sweden and Saudi Arabia.

 

The market has been classified on the basis of construction, temperature range and fluid type. Additionally, it’s been identified by the various types of heat exchangers. The major ones include shell & tube, plate & frame, air-cooled and more. By 2018, the market is expected to be even larger than it is now, as it’s predicted that it will mainly be driven by growing demand for heat exchangers in the Asia-Pacific region. 

How Important is a “Made in the USA” Product?

Keystone TP Made in the USAAt Keystone Threaded Products, we manufacture and use products that are made in the USA. When it comes to consumers, however, just how important is it when purchasing a product that that product is made and manufactured in the US? At our company, we do a lot of our business in nuclear and defense fields, which requires made in the USA products. With these vendors come the commitment to preserving US jobs and providing products that are solely created in our country. Knowing this, should more manufacturers be working with vendors that sell made in the USA products? The answer is, of course, subjective, as it depends on each company’s, and consumer’s, individual needs in terms of what they look for in a product.

Products made in the USA range from a multitude of industries, everything from media to manufacturing and so much more. Many of them are thriving companies that do business all across the world. The US manufacturing industry has, in fact, seen noticeable gains in recent years. Since January 2010, the US has added over 520,000 manufacturing jobs and counting.

A key component that drives US manufacturing as well as aids in the circulation of made in the USA products is the spending power from the Chinese markets. Input from the global economy allows our nation’s economy to grow, and by focusing on strengthening our many products and industries, the US economy and manufacturing industry will only continue to see promising gains in the future.

Blanket Orders vs. Single Purchase

Keystone Threaded logo

We’ve been working with our customers to ensure on-time delivery while offering the best possible price. By examining the annual usage of our roll threaded products, we can provide a selling price based on that usage, along with secure material pricing and stock releases that will enable us to deliver as needed.

When balancing administrative costs against the need for quick and consistent deliveries of goods or services, blanket purchase orders provide a welcome advantage to a small business owner. If properly executed, a blanket purchase order can save both the buyer and seller a considerable amount of time and money.

Although the mechanics of a blanket purchase can vary, the theory behind them is always the same. The goal is to create a standing purchase order with predetermined terms and conditions that will save administrative time for buyers and sellers who wish to do an extended amount of business together over a period of time and within certain limits. The main components are a period of performance and some type of limitation on quantity or dollar amounts used.

We’ve saved customer money and eliminated the downtime due to a surge in business and the lack of necessary parts and components to keep production moving. We are happy to review your requirements and submit a proposal that will meet your needs.

Threaded Bars in Heat Exchangers

Keystone Threaded Products

At Keystone Threaded Products, we manufacture quality roll threaded products, and we use our threaded bars in heat exchangers. We specialize in the production of roll threaded products including acme threaded bars, precision acme components such as acme round nuts, acme cylinder nuts and mounting flanges. We work with a variety of metals, including various grades of carbon steel, alloy steel, heat treated metals and stainless steel. We also work with bronze, aluminum brass, titanium, alloys and exotics.

When it comes to selecting the right heat exchanger, the process consists of a trade-off between the overall heat transfer measurements, which affect the pump head on the HVAC system. It also influences other factors including the pressure drop and surface area.

Generally, low pressure drop increases the surface area of the heat exchanger, which will then increase the unit’s initial cost. The key to choosing the proper heat exchanger is to find the smallest model with the same type of plate corrugation capable of handling the flow during both the summer and winter.

The next step in choosing the right heat exchanger is to simulate it with the largest surface area and plate corrugation type. This can be done by selecting the unit with the temperatures and flow profiles of the other season to obtain the duty value required for the season. The best solution is achieved when temperature, flow and pressure drop are all within the acceptable limits. Be sure to keep all of this in mind when looking for a heat exchanger so that it’ll last in the long run.

Getting Young Americans Excited About Manufacturing

traditionIt’s becoming well known throughout the manufacturing industry that there’s a skilled labor shortage, and that it’s projected to get worse. From machinists to metal workers, there are jobs out there, but not enough qualified people to fill them.

Manufacturing Day, which recently took place on October 4, sought to open up manufacturers’ doors and showcase the true value in American manufacturing, and the potential careers in it provide. With over 800 participating manufacturers and thousands of students and educators having experienced it, it was considered a great success.

However, we can’t stop at Manufacturing Day—we have to keep the conversation going, and continue encouraging students and young people to consider careers in the industry. A recent survey “found that 52% of teenagers 13 to 17 years old had little or no interest in a manufacturing career and another 21% were ambivalent.”* Furthermore, a “second survey found that many American adults no longer work with their hands, either for pleasure in their hobbies or to make repairs around the home,” meaning kids don’t have parents and relatives who can encourage them to do so.

So what’s to be done? While this is, indeed, a challenge, all hope is not lost. We as a country need to get together and encourage our children to study STEM subjects—science, technology, engineering, and math—and realize the importance of this. We need to show them that manufacturing is exciting, as is creating something tangible that so many people rely on. We need to show them that those computers they love can be used to create technologically advanced products.

After all, manufacturing is not what it used to be, and it’s important to get that message out there. It’s not a dirty job, nor is it menial. Today’s manufacturing requires skills, brains, and training. It also can be pretty cool—after all, nowadays, highly-technical robots are involved.

Manufacturing Day was a great first step, but it’s important to keep that going and consistently show young Americans how and why manufacturing careers are a great choice.

 

*Source: https://www.asme.org/career-education/articles/early-career-engineers/students-opting-out-of-br-manufacturing-trades