Farmville Manufacturing

EPIC Level II

Pitt County Industry of the Year

Press Release

• Farmville, NC (February 21, 2012) — Mestek, Inc. has been selected as Pitt County’s Industry of the Year for 2011-12. Each year the Pitt County Development Commission (PCDC) solicits nominations from Pitt County citizens to recognize a manufacturer or distributor that has been an outstanding member of the community.

• “Mestek has been a valued corporate citizen in our community since 1974. There are very few companies here or anywhere in the country which have that kind of longevity and community commitment,” says Wanda Yuhas, PCDC executive director. “We are thankful for their many investments here and for employing so many of our citizens. They are a fine addition to a long line of extremely fine Industries of the Year.”

Continuous Improvement Initiatives

Workforce stabilization through aggressive cross-training/resource sharing across departmental lines

5S discipline sustained throughout the factory Emphasis on “standard work” plant-wide Continued partnership with Pitt Community

College to provide effective employee training Manufactured related returns & allowances

under .25 of 1 percent Visual inventory control systems become the norm Daily start-up and Value Stream meetings

Unit Heater Packing Kaizen

Part Protection Kaizen

On-Time Shipping - 98.3%

Jan Feb Mar April May June July Aug Sept Oct Nov Dec Year80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

2009

2010

2011

2012

% Shipped on Time Jan Feb Mar April May June July Aug Sept Oct Nov Dec Year

2009 90.3% 98.2% 98.8% 99.5% 99.0% 99.8% 99.9% 99.2% 99.4% 99.4% 98.8% 98.6% 97.8%2010 98.7% 98.2% 97.3% 98.0% 98.1% 97.5% 96.8% 98.8% 99.2% 99.0% 99.0% 95.5% 97.9%2011 97.0% 97.8% 99.0% 99.0% 97.8% 98.2% 98.4% 99.2% 98.1% 98.2% 99.2% 98.0% 98.3%2012 98.5% 97.5% 99.0% 98.6% 99.4% 96.8% 95.6% 97.9% 99.2% 98.5% 98.3%

Direct Labor 2012

2011 2010 2009 2008

Net Sales $27,717,578 $28,890,278 $26,816,345 $22,327,103 $30,108,866

Total Labor $3,740,511

$4,150,941 $4,052,672 $3,368,839 $4,520,799

% of Sales 13.49%

14.37% 15.11% 15.08% 15.01%Period Ending October

Manufacturing BudgetPeriod Ending October

2012 2011 2010 2009 2008

Total Budget 4,381,650 4,493,000 $4,645,810 $5,142,650 $5,350,000

Actual 3,778,225 4,100,211 4,150,999 4,254,741 5,330,631

Difference -603,425 -393,789 -494,811 -887,909 -19,369

End of an Era – Clamshell Unit Heater Phase Out – 3rd Quarter, 2013

Farmville X1 Team

2013 Fixed Asset ExpendituresMachinery & EquipmentRotary Screw Compressor - $15,000 (one worn unit)Hydraulic power unit for Tubular expansion - $6,000Electrical service for bldg. 7 - $15,000Rooftop X1 Integration - $5,000 Shear Stacker $10,000 (estimate)2 ea. Electric tape machines - $1,800Tools & DiesMisc Tubular tooling $22,000 (hard tooling)Tubular expansion in bldg. 7.(tools/fixtures) – $8,000GG Burner Die punches and die buttons - $10,000ComputersReplace 12 computers @ 700 each = $8,400 (many aging computers)Printers, etc. $1,000Software $5,000Building/Leasehold ImprovementsTruck Door Shelters/Pads 6@$2,000 $12,000Sprinkler System Repairs/Movement/Inspections and upgrades to Meet requirements - $7,500 OSHA EquipmentPropylene Manifold (Vertical Steam brazing station) – $2,500

2012 Personnel Needs

Factory-Based Engineer• Improve Communication Between Manufacturing & Westfield• Focus on New Product Development• Quick Solutions to Factory and Field Technical Issues• Assist with streamlining and maintaining the integrity of the

ECR/ECN process• Check drawings for accuracy and completeness• Evaluate designs for potential cost savings through the use

of alternate materials or labor practices• Test finished products for quality purposes and recommend

changes to product specifications as necessary