Metal producers, fabricators tout growth by specialization

Fabricators in Southwest Washington are looking forward to a healthy forecast for the coming year amidst signs that business conditions are improving.

At Hi-Tech Metal Fab in Vancouver, Owner Timo Toristoja said that his company’s marine fabrication business has been growing during the past several years, whereas the structural fabrication side saw demand weaken with the broader economy.

Overall, Toristoja said he sees reason for optimism.

“I do see some increase in activity. We've put quite a bit of work on the books for the last few months, and we're booked out for a while now, which we haven't had in a few years. We're kind of seeing some light at the end of the tunnel,” he explained.

Read more: Metal producers, fabricators tout growth by specialization

Christensen Yacht fuels growth through lean manufacturing

With 135 new hires in the last 18 months, and plans to bring another 60 people on board by the end of the year, there’s no doubt that Christensen Shipyards Ltd. is one of the bright spots in Clark County’s economic landscape. Innovation and a commitment to lean manufacturing principles are driving that growth, according to Brad Given, Christensen’s director of continuous improvement.

Founded in 1983, the yacht maker ‘s facilities are situated on seven acres off Columbia Way in Vancouver, with 180,000 square feet of climate-controlled manufacturing space. In 2009, the company spun off Renewable Energy Composite Solutions (RECS), and as part of that process, worked with the Columbia River Economic Development Council (CREDC) and Impact Washington (see sidebar) to implement lean manufacturing processes at RECS.

“The lean ideas began to filter over to the yacht side, with great results,” said Given.

Christensen’s transition to lean was, in part, made possible by funding that the CREDC helped them obtain through state grants and the Southwest Washington Workforce Development Council.

“The CREDC was instrumental in helping us get the training we needed,” said Given.

Riding the lean tide

Although the demand for new yachts has begun to pick up – Christensen has seven projects currently under contract, ranging from 120 to 160 feet in length – the company is using lean manufacturing to decrease the cost of production without affecting the high quality the company is known for, as well to decrease the time it takes to build a new ship.

Given said the company worked with Impact Washington to develop a transformation plan that would transition the company’s processes from the conventional “top-down” manufacturing model to the lean model.

“Lean is very different from the conventional model,” said Given, “especially on the culture side.”

With lean manufacturing, explained Given, a company develops top-down strategies, but implements bottom-up problem solving.

“Who would know better how to improve a process than the person doing it?” he asked.

Given said the goal is to “create a company of problem solvers” instead of having just a few experts. The company’s cafeteria features an entire wall that presents lean manufacturing concepts and successes, and Christensen has recently launched a new continuous improvement program, with a goal of having one “kaizen” (improvement idea) per employee, per month.

“Christensen has taken the lean approach very seriously,” said Kristin Kautz, Impact Washington’s Southwest Washington representative. “They are a textbook case of understanding that it’s not a few events – you need to drive it into the culture.”

Lean processes, robust goals

Given said that Christensen has set aggressive goals for their lean manufacturing program: a 20-percent reduction in contract-to-delivery time and a 25-percent improvement in productivity. He said they had already reduced how long it takes to build a ship from 36 to about 28-30 months, with a mid-term goal of 24 months and an eventual goal of 12 months.

It takes innovation to achieve these goals. For example, said Given, when building a boat, most tools are powered by air and electricity. Historically, a boat in progress was a “spaghetti” of air and power lines, which presented tripping hazards, were constantly getting tangled or disconnected, and took hours to set up and dismantle.

Searching for an improvement idea (AKA the “kaizen”) that could fix this situation, Christensen integrated air and power into the ship’s hull, so that employees can simply plug a tool into a port wherever they are working. Given estimated that the new integrated air and power system saves 1,800 hours per boat of wasted time.

Besides continuous improvement and innovation, Given said another important component of Christensen’s transition to the lean manufacturing model has been “training in industry” – an organized, proven method of job instruction. With the rapid rate of hiring Christensen has been experiencing lately – as many as 10 new employees per month – Given said bringing new employees up to speed in as little time as possible is critical.

Lisa Nisenfeld, president of the CREDC, reported that Christensen president Joe Foggia stated at a recent lean manufacturing panel that the lean training his company received through Impact Washington was so valuable that every bank should require it before they grant a loan.

Raising all boats

Christensen believes their growth isn’t just good for Christensen. According to marketing department spokesperson Megan Farian, Christensen is the “only company in Clark County that gets an order for a $25 million product and 90 percent of that revenue stays in the local economy by way of wages and working with local suppliers.”

“This is a really exciting story for Clark County,” said Kautz.
“A company is able to grow again and add jobs.”

Manufacturing in 2012: A Year of recovery

For many of Southwest Washington’s local manufacturers, 2012 has been a year of slow recovery, following losses sustained during the height of the economic crisis. And while manufacturing jobs have yet to reach pre-2008 levels, new data shows measurable improvement in certain sectors.

According to early data from a study being undertaken by the Southwest Washington Development Council (SWWDC) as part of the Columbia-Willamette Workforce Collaborative, the Portland MSA lost approximately 12 percent of all manufacturing jobs since 2006, and 6 percent of manufacturing businesses. However, data shows Clark County fared better than any of its neighboring counties in terms of maintaining manufacturing establishments.

Specific economic sectors have fared much better than others, with chemical, food and fabricated metals manufacturers faring the best. Wood and paper products have performed the worst, with more than 30 percent job losses since 2006, according to the SWWDC study.

Read more: Manufacturing in 2012: A Year of recovery

Smarter packaging good for business, environment

Companies across the country are trying to get leaner, more efficient, and more environmentally responsible – and local packaging manufacturers are no different. As consumers, most of us might buy these businesses’ product in a store, use it, do our best to recycle the package, and not give it another thought. But in the effort to get more sustainable and more efficient, there’s a lot more behind that box, bag, or carton than we might think.

Read more: Smarter packaging good for business, environment