Steel Fabricators Review V36-Winter2011

A PEDDINGHAUS PUBLICATION FOR FABRICATORS MAKING TODAY’S SKYLINE POSSIBLE

Selvaggio Steel – Making Money In a Challenging Structural Fabrication Market PAGE 12

HSFDB Plate Processing System PAGE 14

NASCC 2011 Preview PAGE 20

Peddinghaus 24 Hour Service – On Call. On Duty. All The Time PAGE 24

Getting to Know Jim Sutliffe, Peddinghaus VP of Engineering PAGE 26

Tax Incentives Explained PAGE 28

V O L U M E 3 6 | W I N T E R 2 0 1 1

Kinsley Mfg.

Top to BottomConstruction ExpertsPAGE 10

LEED Steel

LEEDing a Global SteelFabrication MarketPAGE 6

Geerits

Fabrication Technologyfor the FuturePAGE 8

A Platform that SharesFab Shop Information:A global perspective is the goal of the

STEEL FABRICATORS’ REVIEW magazine for

each of our readers. We provide a forum that

features the best in steel construction and

fabrication shop practices in the world.

The most progressive and profitable shops

in the world have invested in Peddinghaus,

and are willing to share their thoughts and

vision on how this investment is lowering the

costs, and increasing their profitability.

In this issue, you will travel to Australia for

a visit to LEED Steel (formerly Old Bull & Box);

then on to Belgium for one of Europe’s

most progressive fabricators, Geerits, and

finally to the USA for Kinsley Manufacturing –

who provides a General Contractors’ view of

structural fabrication.

2 STEEL FABRICATORS’ REVIEW WINTER 2011

Lyle Menke

Steve Farrow leads a group tour at B & B Welding, Baltimore, MD.

How Have You Improved Your Company in the Past Year?

I had an opportunity to participate in an industry meeting in which many of the attendees were active participants in the steel industry. This group ranged from service centers to fabricators to manufacturers to steel mill personnel. Many topics were discussed including steel pricing, delivery, market trends, etc. looking forward into 2011.

One thought provoking question asked was, “How have you improved your company in the past 12 – 24months?” A survey taken by the organization clearly revealed that most manufacturing companies in NorthAmerica had made many capital investments in the past two years. These ranged from machine tools to computer/software systems – but the key point was that these investments had been made to stay competitiveand be prepared for future business.

The key is investment in technology. We all know that new machines and processes are available that candirectly influence your steel construction/fabrication business: Reduce Scrap and Control Labor costs.

It is apparent that many in our industry have already invested in the future – including your competitors –what about you?

Winter’s Worst Weather Can’t Stop Peddinghaus!

Dedication – It’s what every Peddinghaus employeeprovides our customers.

In the USA, every eye was watching a huge winterstorm this week as it passed through 2/3 of thenation. Deep snowfall, high winds, zero visibility,impassable roads, bitter cold – all of MotherNature’s worst – descended on Bradley, Illinois. It seemed that Peddinghaus was the center of the storm.

However, in spite of all these adverse conditions,Peddinghaus was open for business. From customerservice to parts to manufacturing, dedicated employees made it through the weather conditions to dotheir job.

A good example of the poor driving conditions was that fact that Brian Blanchette, a Peddinghaus shopemployee who resides in a rural area, was preparing to leave for work for his 6 a.m. shift. His 4 wheeldrive truck became stuck in a huge snow drift in his yard. Undaunted, he went to his machine shop,and started his “big green tractor”.

Brian and his tractor made the 7 mile trip to Peddinghaus at 18 mph – but in time for the start of his shift.

This is an example of the dedication and commitment of a typical Peddinghaus employee – who knows we have deadlines to meet and that our customers depend on us. This type of enthusiasm is whatliterally “drives” Peddinghaus every day.

Experience a little Peddinghaus Enthusiasm – it’s contagious!

SteelDay – AISC Success!

The second annual SteelDay, sponsored by the AISC, was another success. This special day is devoted to the promotion of structural steel members in the construction process throughout North America.

Peddinghaus is proud to play a part, not only by holding our own event in Bradley, IL, but also assistingmany customers and industry members as well. Three events should be especially noted:1. Peddinghaus celebrated SteelDay in Canada with the CISC (Canadian Institute of Structural Steel),

Akhurst Machinery, and our customers Waiward Steel and M & D Drafting. Over 250 participants gatheredin Edmonton, Alberta to learn more about the benefits of steel framed buildings and construction.

2. B & B Welding, Baltimore, MD opened their doors to over 75 guests demonstrating their fabricationtechniques using Peddinghaus new CNC equipment. B & B’s Dennis McCartney said, “this is a greatevent, and I am pleased to support the AISC.”

Continued on page 18

The Power of OneThe “Power of One” is PeddinghausCorporation’s theme and goal for 2011. What do we mean by the “Power of One”?Throughout 2011, you will experience howPeddinghaus maintains our position as NumberOne in our industry!

• Number One in Customer Support• Number One in Technology & Innovation• Number One Business Partner for our

Industry• Number One for our employees and their

families

2010 – What a Year!As I reflect back on 2010, those of us in topmanagement positions feel about the same…underappreciated and challenged! Any time thatyou tuned into the media, you were providedwith plenty of information on the demands andchallenges it takes to be an effective businessleader. Here in the USA, we hear daily of old taxlaws, new tax laws, labor laws, environmentallaws, business ethics, healthcare proposals,healthcare counterproposals… you get the picture – it was endless. So how do you runyour business in this turmoil?

I have found myself (at age 42, this year) consulting with my father for advice. His com-ment was very concise, “Son in my whole life,

I have NEVER seen such an economy as thisone!” First the Dollar is down and the Euro isup; then the Euro is down and the Dollar is up;nervous bankers are squeezing credit require-ments; mix in some unemployment figures, andyou get the picture… What a year 2010 was – Ithink I have more gray hair this year than ever!

Want to Beat Your Competition and let the Government Pay For It?The year 2011 is looking up already!

If you are in the USA, the federal governmenthas passed two significant pieces of legislationthat directly benefit our business: The Jobs Actof 2010 and the Tax Relief Act. These bills notonly extend existing Section 179 benefits, butalso expand a Bonus Depreciation for newequipment purchased in 2011:

• Section 179 benefits are now increased from$250,000 to $500,000 for capital equipmentpurchases, and can be deducted immediatelyfrom taxable income

• Regardless of your profit/loss situation, anADDITIONAL 100% bonus depreciation isalso available if you purchase – and install –your new equipment by December 2011.Write it off NOW!

How do these numbers affect you? Think abouthow you are operating your fabrication shopnow…

If you are still running 2 old drills, or run adouble shift, or use two employees on a burntable, you are paying two operators to processyour fabrication.

Invest in a new Advantage II drill, and you canmeet your production requirements in one shiftwith one operator. That means you just savedthe salary of one of your old drill operators. Byusing the costs saved by only one operator, themachine is now paid off in 3 years! Talk to youraccountant, as this a fantastic deal that bringsnew technology to your shop at a fraction of thecost, thanks to Uncle Sam.

Talking about the “Power of One… theAdvantage II drill is the number one drill line inthe World today – and with one operator willprovide all your shop’s tonnage.

Don’t Believe Everything You Hear On the StreetIs Peddinghaus Corporation “Old Technology”?Many of our competitors like to spread thisrumor thinking it gives them some type of edge.But let’s examine a few FACTS.

Advantage II Drill Line Facts:

• Introduced May, 2010 at NASCC, Orlando, Florida

• High Speed Carbide Drilling via Siemens“Smart Spindle” specific motorsn Exceptional speed and accuracy via Patented

Roller Feed Measuring• Each of the 3 axes features 5 station automatic

tool changersn Ideal for tapping & countersinking of holes

• Scribing/Marking on all 4 axesn Perfect for layout identification

• Fully CE and ISO approved

Advantage II users have expressed to us their satisfaction:

“Fast, faultless start up and easy for my operators to learn”

“Speed is unbelievable”

“We have run our Advantage II for over 6 months withno problems, and few questions – well engineered!”

Continued on page 5

FROM THE CEO

Anton Peddinghaus

A Happy New Yearto all of Peddinghaus Corporation’s customers, business partners, and

industry friends. We hope that 2011 provides you with health, happiness,

and a successful business year!

w w w. s t e e l f a b r e v i e w . c o m

WINTER 2011 STEEL FABRICATORS’ REVIEW 3


At Peddinghaus we strive to succeed in every area of

our business so we can be that deciding factor that helps

fabricators meet their goals. Our customers are businesses

just like us, and we are proud to be the 1 company that

proves time and time again to be the tipping point for their

success, the competitive edge that helps them thrive in

today’s business climate.

What exactly does Peddinghaus mean by The Power of 1?

The Power of 1 Industry Partner, 1 Resourcefor expert advice…

The Power of 1 Bigger, Faster, and Stronger Machinethat reduces costs and increases throughput…

The Power of 1 Partnershipbetween supplier and user, the strength of a trusted resource…

The Power of 1 Operatorwith today’s modern technology as his machine…

The Power of 1 Globalized Service Department…available when you need them, when it matters most…

The Power of 1 Team…that works together to achieve a common goal

The Power of 1 Year…that can change the direction of your business and the global steel fabrication community

In 2011 Peddinghaus will prove why the Power of 1is your tool to reaching business objectives.

The Power of 1…

PEDDINGHAUS CONTINUES TO BE THE 1 COMPANYTO TIP THE SCALES IN YOUR FAVOR FOR 2011

In today’s world it only takes 1 strength to

decide victory over defeat. There are many

things that go into success but when

everything comes down to black and white,

win or lose, succeed or fail, 1 company,

1 powerful business partner can make

all the difference in today’s marketplace.


FROM THE CEOContinued from page 3

So if you are looking to drill 150 – 200 tons of structural steel in one 40 hour week of sections that are up to 1100 mm/44 inches wide, theAdvantage II is the machine for you. We build multiple machines permonth. Give us a call, and we would be proud to provide you with acopy of our users list.

HSFDB Plate Processor FACTS:The HSFDB is the most advanced plate line in the Peddinghaus productline! Granted, this basic design is not new, but the one operator/minimalscrap/one pass operation is the productive winner and makes it ahead of its time.

Take a look at what our engineers have done with this machine!

• Available in three models with capacities up to 1800mm/72 in;2500mm/96 in; and 3200mm/126 inches wide.

• HSFDB processes up to 75mm/3 in plate, optional 100 mm/4 inchthickness is available.

• 8 station traveling tool changer provides high speed drilling, tapping,counter sinking, marking/scribing, and milling from a powerful 48HP/36 kW spindle specific motor.

• Best high definition plasma auto-gas technology is employed with a HPR260 or HPR 400.

Simply by using today’s modern software nesting packages in conjunctionwith the HSFDB, we have customers who are processing plate parts on theHSFDB with only 4 – 5% scrap! Talk about saving money – with theHSFDB, that is priority One!

Make Money with the HSFDB Plate Processor – NOWSo, those customers who still use old burn tables, with two operators, andcrane loading need to take a minute and check this out. Steel plate pricesare going up; Labor costs are unpredictable, isn’t it time you checked outthe productivity?

Our HSFDB customers tell us that they can process 1 – 2 tons of plateparts per hour with one operator! Stay tuned for more HSFDB info! TheHSFDB truly gives meaning to the Power of One for plate processingthroughout the world!

The Power of One in 2011Customers Come First at Peddinghaus:

• 24 hour call center assistance• Web cam “on the spot” diagnostic help• Remote diagnostics via the internet• Over 60 global field service techs/20 call

center techs

At Peddinghaus, we are dedicated to customersatisfaction. Ask our users, they provide ourbest testimonials. When you buy Peddinghaus,you buy the company, not just a machine.

Software Innovation Priority One:

• New Adnexxus Software – the authoritative integration software for Tekla Users

• New Pedditrack Software – keeping fabricator’s production “on track”

We invested heavily in “human technology” with the development of our Advanced Software Team. This group has done an outstanding job in providing software technologies that exceed all industry expectations. There is no antiquated technology here at Peddinghaus!

The Power of One at the NASCC 2011 in PittsburghAbsolutely, Peddinghaus will have a strong presence in Pittsburgh! It is our tradition to provide our customers and industry partners with new equipment, new technologies, and a little entertainment along the way. As always we have a few surprises up our sleeve, but we won’t give it all away now.

But here are a few highlights:

• New Equipment and Newer technologies right in our booth that areguaranteed to turn heads

• Our Harley Fabricators’ Tour ride starts May 7• Our big Wednesday night event is on schedule for May 11

I will tell you one thing, a couple of last year’s attendees advised me that “Blue” was not their favorite color, so we have declined the Blue Collar Comedy tour for this year’s event in Pittsburgh. But don’t worry, we always deliver!

You know Peddinghaus… we always have something cooking, so keep an eye on www.peddinghaus.com for details in the coming days and weeks.

The Power of One Dwells in All of UsIf your thing is drilling beams and profiles with a dated machine or fabricating plate with an old style burn table, seize the power to improveyour business! New technology from Peddinghaus will reduce your scrap,increase your productivity – with less labor, and make you more competitivein today’s uncertain market.

Don’t just complain about your competitor’s low bid prices, make aPeddinghaus investment and discover the productivity the Power of Onecan deliver. There has never been a better time or a more powerful partnerfor your future success.



To some a name is just a label to place on an invoice or business card,

but to others it defines the organization and its culture. LEED Steel (formerly

Old Bull and Box Engineering) in Albury, Victoria – Australia, has made their name

their mantra, a reminder of who they are and what they strive to be. Partners

Adam Furst and Andrew Kaye have a vision for LEED Steel – to lead the industry

with supreme quality, unparalleled technology, and unsurpassed innovation. Their

desire to succeed is only matched by their passion for moving the industry forward

with innovative designs and lean production processes.

An Industry Leader is BornWhen LEED Steel opened its doors as “Old Bull and Box Engineering” in 1992 its founders, relied on their combined years of experience in theindustry to serve the eastern seaboard of Australia as far north as NorthernQueensland, and Perth. As business has evolved and markets have maturedthree major challenges to the Australian steel industry have only grown dueto modern market complexities.

#1 Competition is fierceInexpensive off-shore steel fabrication creates heavy price competition in Australia. More than ever it's critical to keep costs at a minimum to compete.

#2 Skilled manual labor is costly, and difficult to findSimilar to other markets in the world, skilled labor is getting harder and harder to find. On top of having difficulties finding labor, healthand safety regulations are constantly evolving in the work place addingadditional cost considerations.

#3 Lead times can make or break bid warsKeeping operating costs low is key, but sacrificing efficiency is not anoption. It’s critical not to limit the kind of work you are able to bid on intoday’s business world.

To satisfy demand and meet required lead times LEED Steel had previouslyfound themselves adding staff, expanding space, and increasing overhead. It was essential to go as far as renting and staffing an additional 1,500 squaremeters of space remotely to increase shop throughput. With over 45 employees in their shop LEED Steel was processing approximately 2,500 metric tons per year, and found themselves with too many people, too little space, and the need to increase profitability. It was evident toAdam and Andrew that it was time to explore automation.

LEEDing the Way in a Globalized Steel Fabrication MarketIt was at several internationally renowned exhibitions that Adam andAndrew met the group at Peddinghaus. After seeing the equipment runningside by side with the competition, and visiting the headquarters in Bradley,IL - USA, LEED Steel made the decision to incorporate Peddinghaus intotheir production processes. The investment in a new High Speed FDB-2500plate processor, PCD-1100 Beam Drill Line, DG-1100 Double Miter BandSaw, and an ABCM-1250 Automatic Coping System was well timed.

LEED STEEL

LEEDing a Global Steel Fabrication Market

Partners Andrew Kaye and Adam Furst of LEED Steel pave the way for Australia’s fabricating future.

The Powerful HSFDB-2500 Plate Processor uses smart technologiesthat allow for safer work environments and higher efficiency compared to antiquated gantry style plate machines.

The PCD-1100 and DG-1100 drill/saw tandem system proves to be aneasy to use model of efficiency.

Automated coping is important to OBB / LEED Steel when preparing profiles for complex welded connections commonly used in Australia.



Their machine tool investment instantly helped them with each of the challenges they face as a global fabricator.

#1 With Peddinghaus Equipment Old Bull and Box is more competitivethan everNo longer needing to maintain their offsite facility, overhead was slashed.All fabrication is now done in house at their plant in Albury, Victoria.With capacity higher than ever LEED Steel expects to fabricate between6,000 and 8,000 metric tons in the coming year, nearly two and a half tothree and a quarter times previous production figures of 2,500 metrictons. It is with Peddinghaus equipment that they are now able to processsteel faster while still minimizing overhead costs.

#2 Modern labor knows technology, and is safer with Peddinghaus machinesBy eliminating the human error from fabrication, parts are more accuratethan ever, and today’s workforce easily learns the PC interface ofPeddinghaus/Siemens controls. Also other shop floor operations are saferwith the streamlined workflow of Peddinghaus material handling.Common hazards associated with moving heavy materials manuallythroughout the shop are eliminated with their new, smart shop layout.

#3 Tight lead times are no issue with Peddinghaus automationSpeed is now a major part of LEED Steel’s business model. Previous lead times of 4 - 6 weeks have been slashed in half to 2 - 3 weeks withPeddinghaus equipment. When applying manual methods each employee represented 1 - 1.5 metric tons of fabricated steel per workweek. Today 2.5 - 3 metric tons of fabricated steel can be attributed to 1 employee’s work week at LEED Steel. Now each employee can produce twice the metric tonnage per week!

More Than Fast Equipment – Peddinghaus Offers Superior Service and Support All Over the Globe24 hour support combined with local field service has proven helpful for LEED Steel as they step into their first experience with automation.Questions are answered quickly by the 24 hour computer and telephonesupport center, while remote assistance and diagnosis has proven to be tools that help the organization get acclimated with their new machine tool investments.

“We once had a scenario where we contacted Peddinghaus in the morningper an issue with our Coper. That same day we had a service technician atour doorstep ready to help us get going with production as soon as possible.Peddinghaus service has been readily available every step of the way.”

– Adam Furst

Bigger Projects, Faster Lead Times, Higher Quality – Welcome toLEED SteelHand in hand with operation changes and a new business philosophyLEED Steel is no longer the same organization it once was, and there’sno telling what they will do next.

“With our new capacity, and ability to tackle larger jobs at shorter lead timesour customers will be amazed at what our latest capabilities have come tobe. We strive to be leaders in the global fabrication community. In the futureautomation and faster production will continue to be a key part of the services we offer customers. At LEED Steel we tackle bigger jobs, withshorter deadlines with no compromise in quality.”

– Andrew Kaye

BEFORE AND AFTER – MANUAL FABRICATION VS. PEDDINGHAUS AUTOMATION AT LEED STEELPRODUCTION ASPECT FABRICATED MANUALLY FABRICATED WITH PEDDINGHAUS DIFFERENCE

Annual Tonnage 2,500 Metric Tons Per Year Manually 6,000 - 8,000 Metric Tons Per Year with Peddinghaus 2.4 – 3.2 Times Higher Capacity

Average Lead Times 4 - 6 Weeks Manually 2 - 3 Weeks with Peddinghaus Half the Required Lead Time

Tonnage Return Per Employee in Shop 1 - 1.5 Metric Tons Per Week Manually 2.5 - 3 Metric Tons per Week with Peddinghaus Twice the Tonnage per Employee

Tonnage per Square Meter of Shop Space .6 Metric Tons per Square Meter of 2 Metric Tons per Square Meter of Shop Space Shop Space is Twice

Shop Space Manually with Peddinghaus as Effective

Capacity is higher, lead times are shorter, while employees and existing shop space produce more fabricated steel than ever before at LEED Steel with Peddinghaus equipment.

Meter by Meter and Inch by Inch shop floor space is utilized twice as effectively due to the compact layout of Peddinghaus machines.

Streamlined production flow is facilitated by a robust Peddinghaus material handling system, eliminating dangerous crane movement throughout.


“Invest in Technology;” says Mr. Jos Geerits, “Itis the future.”

From the beginning, Geerits always investigatedin superior methods to better serve their cus-tomers. Initially, they focused on structures forthe agricultural and equine industries. However,as Geerits reputation for quality grew, theyreceived contracts with larger firms. Soon theywere fabricating projects for large buildings andstructures in the industrial and commercial mar-kets, as well as agriculture.

Why Buy Peddinghaus?The response from Mr. Jos Geerits is direct.“There are many reasons, of course, but themain points are as follows:”

1. We knew of Peddinghaus from our industrycolleagues and partners; all spoke highly ofPeddinghaus equipment – that it was the bestin the industry

2. We wanted quality, reliable machines thatwould last for a reasonable amount of time

3. Our jobs are fast paced, we needed equipment that is fast, flexible and can helpus meet our deadlines

4. We wanted equipment that gives us thecapacity to expand and grow. ThePeddinghaus modular handling system meetsthose demands

5. The Peddinghaus technology is labor saving– we are able to do more with less – and thatmakes us competitive

6. Finally, we wanted a solid business partnerthat understood our industry, and was com-mitted to customer service – we have a goodpartner and a good friend at Peddinghaus

Tomorrows’ Technology TodayA lot of firms like to use the word “technology”.Peddinghaus’ engineering designs for machinesin the steel construction industry have alwaysbeen in the lead. From the strong, rugged framesto the precise positioning features to the 21stcentury electronics/software package,Peddinghaus is the leader. Let’s see why Geeritschose these machines.

The Peddinghaus DGP 1270 band saw is apowerful, precise tool that delivers fast sawingtimes to exacting miter accuracies – perfect for a flexible production environment whereproject requirements (such as roof trusses) canchange quickly.

Since unfinished profiles, delivered from vendors, seldom have a suitable initial cut, eachwork piece is given a perfect seam (trim) cutupon entering the system. For many fabricators,this is a slow process, but not for Geerits. Why?Because the Peddinghaus DGP 1270 employsthe following advantages for band sawing:

1. A powerful 14.5 kW drive motor 2. A precise “Auto Feed” automated sawing

system that maximizes the cutting3. A 3 degree blade pitch that insures the blade

is always sawing in the material (not in “air”)4. A precision positioning system that miters up

to 60 degrees right or left

Smart Spindle Technology is a Smart Machine ChoiceGeerits invested in the latest drill line technology from Peddinghaus the BDL 1250with nine (9) spindles. The drill operates in perfect synchronized tandem with the DGP 1270 band saw.

GEERITS

Fabrication Technology for the FutureThe small town of Bree, Belgium is home to Geerits, which for the last 20 years has developed a superior reputation as aleader in the construction assembly in industrial buildings and structures. Their customer base is not limited to Belgium,but includes clients in France, Holland, and Germany.

From a modest start in 1991 with only 5 employees, Geerits has grown into a superior steel fabricator and erector inEurope. How does a firm make such a leap in less than twenty (20) years?

Geerits utilizes the latest in blast cleaning technologies – but a keyto profitability is minimizing handling beam profiles with a modernlift & carry material handling system.

The Peddinghaus DGP saw and BDL 1250 provide the backbone forstructural fabrication at Geerits.

The DGP 1250 band saw miters up to 60 degree to provide fast,accurate cutting for sophisticated building projects.

SPRING 2010 STEEL FABRICATORS’ REVIEW 9WINTER 2011 STEEL FABRICATORS’ REVIEW 9

The sawed beams enter the drill, and areautomatically measured. Recognizing the properprogram, the BDL 1250 begins drilling therequired holes at high speed, without stoppingfor tool changes, due to the nine spindle design.All three working axes can be deployed at thesame time if required for fast processing.

Peddinghaus employs Siemens state-of-the-artelectronics on all its equipment, including theBDL drill. Peddinghaus engineers developed asystem called “Smart Spindle Technology” thatcontain actual drilling data from rpm to feedrates to hole break through.

Old, standard frequency motors do not havethese capabilities.

The BDL 1250 drill also maintains marking andpart stamping capabilities. Even after painting,this data is clearly legible, and aids in fast steelerection at the job site.

“We are First with the Best in Plate Processing”In 2010, Geerits invested in a new PeddinghausFPB 1800 CNC plate processing system. Thehandling of plate components has long been an issue for many fabricators. Buying from avendor was expensive, and delivery was alwaysan issue.

With the new FPB 1800, Geerits can controltheir own production. They can buy stock plate1.8M x 32 mm thick up to 6M in length andprocess the entire piece without any additionalmaterial handling.

The technologies of multiple tool hole punching, plasma cutting, scribe marking,

and intelligent nesting software are the founda-tion of a rugged plate processor that is capableof meeting any plate connection part requiredby Geerits.

The end result? Faster project completion forGeerits clients!

“Our Peddinghaus Equipment has Helpedus Gain New Business”So says Mr. Jos Geerits; “Thanks to our forward thinking in combination with all thePeddinghaus equipment, we succeeded in convincing several customers to work with us.”

“Once they witnessed our production capability,they knew we could handle their project quicklyand efficiently.”

The speed and efficiency of the Peddinghausmachinery, and the PeddiBlast cleaning systemhas provided for the future of Geerits. They are capable of bidding on larger projects withthe full confidence that any customer jobrequirement can be met.

“By investing in the technology of the future, wecan provide for our clients today!” says Geerits.

The “Drilling King” for structural shapes and profiles at Geerits is the Peddinghaus BDL 1250 with its rugged design and large capacity.

Powerful tools maintain production – designed for years of service. “It makes good sense to store beams on both sides of the conveyor,”says Mr. Geerits. “A versatile material handling system – with lift andcarry beam handling – provides flexibility so we can process multipleprojects on the Peddinghaus system.”

The PeddiBlast System provides a powerful solution for cleaning ofall structural shapes and profiles.



Not Your Normal Fab Shop – Steel Fabrication With A Big Picture Point of ViewIf you aren’t already familiar with KinsleyManufacturing, it’s time to get acquainted. This family owned business is a perfect exampleof tradesman turned general contractor. WhenRobert A. Kinsley founded the organization in 1967 he may never have expected that oneday the second generation of Kinsley craftsmenwould manage one of the largest full-serviceconstruction management companies in themid-Atlantic, USA region.

Having entered the steel construction businessduring the 1970s and 1980s Kinsley approacheserection and fabrication with a big picture pointof view. Although efficiency and cost reductionare primary strengths of their fabrication business unit, accuracy is paramount for keepingcosts down across the organization. When youfind yourself acting as the sole fabricator, erector,and general contractor for a project, inaccuraciesor missed shipments are no one's problem butyour own. That’s why Kinsley relies on theindustry’s most reliable and accurate structuralautomation from Peddinghaus. Whether processing bridges, military bases, schools, medical facilities, industrial complexes or retailunits; Peddinghaus machines play a critical rolein delivering parts efficiently and accurately timeand time again.

Steel Erector Turned Fabricator – The “Bring It On” Approach to Steel ConstructionNever turning down a challenge KinsleyManufacturing began offering structural steelservices in the 1970s and 1980s, but there wasone rigging job in particular that forever forgedtheir position in the steel construction market-place. Contracted by Harrisburg, PA fabricationfirm (Stewart Amos) for a fast track job remov-ing their TDK-1000 drill line, Kinsley recog-nized a unique growth opportunity in disguise.

KINSLEY MANUFACTURING – YORK, PA – USA

Fabricator, Erector, General Contractor – Top to Bottom Construction Expertise

When economic times are demanding, bringing value to a project is imperative. Your bottom line bid number

is magnified, scrutinized, and pulverized in today’s tough marketplace. How do you bring value to the bid

table that sways the owner to choose your firm?

For Kinsley Manufacturing in York, PA, the answer is easy – strategize the bid work. Use your full resources

of Design Build: design involvement to fabrication to rigging and erection. Examine the job in detail and then

engineer, fabricate with an eye to fast erection. It’s a winning combination.

Using Peddinghaus equipment Kinsley Manufacturing in York, PA has found the perfect winning balance

between quality and efficiency in their total solution approach to steel construction.

(l-r) Fred Herbst, Bobby Chenault, and Ryan Butler are moving Kinsley Manufacturing forward as a premier fabricator in the Northeast.

The West Virginia Air National Guard C-5 Hanger was a 2,250 tonproject with a 250 foot (76M) clear span to permit unrestrictedairplane entry.

(above) The Millennium Science Complex at Penn State Universityrequired 4,200 fabricated tons with huge, complex fabrications;including one section that consisted of a 120 foot (36.5 M) cantilever carrying two elevated stories (below).


20 Year Old TDK Finds Another HomeStewart Amos had recently landed the largestfabrication job in the history of their companyand felt it was time to upgrade equipment.Their 20 year old Peddinghaus TDK-1000 drillline had never given them a reason to worry, butits age alone had prompted them to order a newBDL-1250/9B.

As the contracted rigger to remove the drill, andhaving worked in the steel fabrication tradethemselves, the group at Kinsley dared to ask thequestion – “What do you want to do with thatdrill when it’s out of here?” Stewart Amos statedthey had no plans other than to sell their drilland Kinsley volunteered to take it off theirhands – a wise decision that forever changedtheir business.

“We bought the TDK-1000 drill for next tonothing, and it ended up being a dreammachine for Kinsley Manufacturing. Parts werereadily available and Peddinghaus service wassecond to none. Even though it was 20 years oldit runs like new to this day.”

Kinsley’s steel fabrication business unit wasthriving, and continually serviced their otherextensions without fail. It wasn’t long as theirbusiness continued to grow that they wereset on adding another Peddinghaus line to their production capacity.

“Our design build philosophy has always beenour strength, and when our business units had

expanded it was time to add to our capacity. Wechose Peddinghaus after our experience with thefirst drill line because of the strength, compati-bility, and user friendliness it offered. With theaddition of 2 band saws – a miter DG 1100 anda 90 degree model 1250-510 – along with ourlatest drill line the BDL-1250/9B, our fabrica-tion is more powerful than ever.”

“We have recently added two more machines toexpedite our detail and connection work; TheFDB 2500 plate system and the AnglemasterAFPS 643 for angle and flat plate connections.”The FDB alone has saved us over 500 manhours on one job alone making a multiple holeconnection.

With an impressive production capacity of36,000 tons annually Kinsley Manufacturing isnow capable of taking on fabrication projects out-side of their organization, adding to their bottomline profitability. On jobs that their general con-tracting arm of the business does not play a part,the fabrication unit can still be involved due totheir efficient cost saving practices.

“Our Peddinghaus machines never shut down.

Whether it’s our drills, angle line, or plate line,

we run them night and day. If there is ever an

issue we have the only 24 hour phone service line

at our disposal. Receiving spare parts is never an

issue with Peddinghaus. They are truly a first

class business partner in today’s global business

community.”

Sophisticated Fabrication Is An OpportunityAt Kinsley no job is too large or too small. TheirTeamwork oriented business culture has quality,craftsmanship, and customer satisfactionengrained in each step of the constructionprocess. This proves to be a recipe for success atKinsley, for now and into the future.

The philosophy of the firm is simple: roll upyour sleeves and get to work. “You don’t need a PhD to be a good business partner – but you do need to listen to your customers, evaluate their needs, and treat them fairly.” That is how we treat our customers, and that ishow Peddinghaus treats us. It is a formula forsuccess that many firms should emulate intoday’s market.

Two “senior fabrication fellows”: Fred Herbst of Kinsley and Steve Farrow of Peddinghaus, discuss the Peddinghaus TDK drill line – still runningtwo shifts daily after over 25 years of service.

“The Peddinghaus FDB 2500 plate processor, saved us over 500 manhours on one job alone,” says Fred Herbst.

The material flow is handled by the BDL drill line operator as heprocesses beams into/out of the various work stations.

The Peddinghaus Anglemaster runs continually to provide allangle/flat stock connections for Kinsley.


12 STEEL FABRICATORS’ REVIEW SPRING 201012 STEEL FABRICATORS’ REVIEW WINTER 2011

Selvaggio Steel was established in 1957 as a family

business – and remains a family business today

under the direction of brothers Mark and Tony

Selvaggio. The firm has been an active structural and

miscellaneous fabricator since its founding. With the

current market levels of steel construction, we spoke

to Mark and Tony about the main question that many

fabricators must answer:

“In a Challenging Market, How

Does a Structural Fabricator

Make Money?”

In a nutshell, here is how their creativity – and a

Peddinghaus FPB plate machine – helped them

remain stable and create cash flow and profit for

their company.

We will tell their story with two separate projects

that they accepted. Comments from Mark and Tony

Selvaggio are in italics.

Fabricating Plate Parts for Manufacturing:Background: Like many fabricators, Selvaggiowas searching for work opportunities for theirshop. They had a request from a manufacturerto process two separate plate part components –1,000 of each part.

“It was a manufacturer, and their toleranceswere tight, but we thought – why not bid it? We operate a Peddinghaus FPB 1500 plasmaplate punch for all our plate detail, so it was the perfect machine.”

“With nothing to lose, I gave them a price perpiece – they said that they would get back to me. I told them, they have my word that shouldany quality issues arise, I would address thempersonally… the purchasing agent gave us theorder an hour later.”

(Editor’s Note: According to various steel industry sources, manufacturing has increased 3 - 4% in the USA and 2% in the UK in 2010).

Time Line For a Fast Job that Exceeds theCustomer’s Expectations:• The order was received at 2:30 p.m. on a

Friday afternoon• Steel was ordered from the vendor for 7:00

a.m. Saturday ($300 delivery premium)• The parts were programmed and nested

using Shop Data System’s PeddiNest softwarewith chain cutting, nesting, and “edge start”technology

• The operators were called in for Saturday andSunday OT work (we hadn’t worked OT formonths)

SELVAGGIO STEEL

Making Money in a Challenging Structural Fabrication Market

Mark & Tony Selvaggio know the key to profitability in difficult times is to be innovative in ways to use your existing shop tools – like thePeddinghaus FPB plate processor.

All of the plate detail for a U.S. Air Force building project wasprocessed on the Peddinghaus FPB plate system.

“We have a small shop, and the FPB fits perfectly,” says Tony… note the mezzanine constructed with ancillary tools.


FPB Production Job Facts:

• Plate loaded onto FPB at 7 am on Saturdayn In one 8 hour shift, 10 stock plates were

processed

• With full nesting including chain cutting,common cut line, and edge start technology,scrap ratio was about 5%

• With the Peddinghaus design, they couldrotate the trail end plate to produce moreparts and reduce more scrap!

• Finished 2,000 plates Sunday at noon• Loaded and delivered to customer Monday a.m.

Edge Start technology enables the plate to beplasma cut from the outside edge of the plateenabling virtually no scrap – never a skeletonremnant!

Final Result? Orders for 25,000 MoreSelvaggio’s manufacturing customer was sopleased at the rapid response and the overallquality of each part component, that they purchased an additional 4,000 of each part.That 2,000 part order soon multiplied untilSelvaggio had processed over 25,000 parts – all on the Peddinghaus FPB.

“Were we concerned selling to a manufacturer? A little, but we had confidence in our equipment,our software, and our craftsmanship. A smallrisk provided a big reward!”

Repairing Coal Hoppers:A local municipality approached Selvaggio aboutrepairing an old coal hopper mechanism.

“It was an old hopper with hundreds of rivets attaching the hopper to the frame. Their engineerwas uncertain how to repair. The Selvaggio teamexamined the hopper, and the taper of each of thefour sections. We then examined the distance of the rivets, and came to a conclusion – we couldoversize the part by one inch – punch a hole foreach rivet head, then shear the plate leaving halfholes on the edge, allowing two plates to meet atthe rivet line.”

The Perfect Machine for the Job –Peddinghaus FPB Plate Processor• The FPB punched the “hundreds” of holes

in the perfect slope required to match theexisting rivets

• The precision of the FPB plasma cuttingaction provided the exact miter/taper of eachof the four sides of the hopper (some plasma“stitching” was used as well on the long parts)

The client was so happy with our solution thathe gave us order to repair two more hoppers,which we were happy to provide.

Be Creative – and Use PeddinghausMark and Tony Selvaggio will tell you they arefabricators, and structural steel construction is acore business. But when that business is notavailable, you develop skills to approach othermarket areas, and grow your firm. The standardold slogan is “Necessity is the Mother ofInvention” – it was great the Necessity also hadthe tenacity of the Selvaggio team and theInvention of a super tool – the Peddinghausplate processing system.

i n f o @ s e l v a g g i o s t e e l . c o m

w w w . s e l v a g g i o s t e e l . c o m

PeddiNest software provides for “edge start” plasma processing ofplate which virtually eliminates scrap.


The coal hopper retrofit was a good project for the FPB; with aninnovative design that can process stock plate at any shape/length/contour; hundreds of holes could be punched, and thetapered plates could be cut at the required angle to retrofit to theexisting hopper. “It’s the right tool for the job,” says Tony Selvaggio.

Loading plate outdoors in a continuous one pass process was a keyto processing 10 stock plates in one 8 hour shift.

Fabricators commonly experience scrap as low as 4 – 6% withPeddinghaus Edge Start and Common Cutline methods.

A nest of the parts produced for the job depicts how the Peddinghaus’ continuous processing utilizes stock (including small remnants) to makequality parts while reducing scrap to a small percentage. “That is how you make money,” says Mark Selvaggio.


HSFDB SERIES MATERIAL CAPACITIESMATERIAL SPECIFICATIONS INCH METRICMax Plate Thickness 3” 75mmOptional Max Plate Thickness 4" 100mmMin Plate Thickness 1/4” 6mmMax Plate Width* 96” 2500mmMin Plate Width 6” 150mmMax Stock Weight** 19,800 lbs 9000 kgSpindle Power 48HP 36 kWMax Spindle Speed 2250 RPM 2250 RPM

*Available in 1800/2500/3200 – 72"/96"/126" widths

**Max length dependent on weight

HSFDB PLATE PROCESSING SYSTEM

C

D

G

E

F

H

I

A

B

A 8 STATION ROTARY TRAVELING TOOLCHANGER

• Capable of holding up to 8 tools for drilling, tapping,countersinking, milling or scribe marking.

• Machine programmable for up to 24 tool sizes withoutmodifying program settings.



B CARBIDE SCRIBING/MARKING SYSTEM• An available scribing tool is placed into the automatic

tool changer and selected upon program command.• The HSFDB is capable of scribing any character or

shape in multiple orientations and depths.

C AUTOMATED TOOL HEIGHT MEASURING• Automatically measures tool length before putting

into operation. • By mechanically probing for tool length before

operation, the HSFDB assures optimal functionality.

D PLENUM CHAMBER & EASY UNLOADER• Standard automatic dump table mechanism.• Parts up to 1,000 pounds / 453kg can be unloaded

with ease. • Copper lined plenum chamber is integrated for easy

removal and containment of machine byproduct.• Further parts handling options available.

E OXY/PLASMA CUTTING• High Speed Plasma: An efficient 260 or 400 amp high

speed plasma system is available for exceptional cuttingspeed and quality finish.

• Oxy Fuel Cutting System: The economic alternative toplasma cutting. Offers total thickness versatility.

F AUTOMATED MATERIAL DIMENSIONING• Plate edge dimensions are detected by Peddinghaus’

state-of-the-art laser probe system.• Plate thickness is determined by a transducer that is

mechanically linked to the plate roller.

G SIEMENS 840 Di CONTROL• Places the user in a familiar PC environment.• Parts available for 10 Years after the discontinuation

of the control panel model.

H THROUGH THE TOOL MINIMUM QUANTITYLUBRICATION SYSTEM

• Ecologically friendly minimum quantity lubrication.• This vegetable oil based lubricant can utilize as little as

5% solution to 95% air when drilling. • Parts come off the machine nearly dry and ready for

secondary operations.

I POWERFUL SIEMENS SPINDLE MOTORS• High Speed 48 HP / 36 kW Siemens intelligent spindle

motors. • Break-neck spindle speeds of up to 2250 RPM.



These units provide for a productive and safe environment for the machine operator.

SIDE UNLOADING SYSTEMPeddinghaus is pleased to introduce a new side discharge parts unloading system for your Peddinghaus plate system. The new side discharge conveying system is a heavy duty 965 mm/38 inch wide hinged steel belt unit with a 30 degree incline which delivers the parts to an ergonomic operator height of 865mm/34 inch.

The new heavy duty side unloading parts conveyor is designed to withstand an impact weight of up to800 lbs (360 kg) and transfer materials up to 1,500 lbs (680 kg) of total weight.

Machine operators and material handlers both praise the new Peddinghaus parts unloading conveyor,“The parts are delivered to me with holes drilled, tapped, counter sunk, and ready for the next operation– all I do is watch them drop on to my table!”

“My job is so easy now – we used to have an old fashioned burn table which I had to climb on to dig out parts, with a crow bar and a magnet. Those days are over with the Peddinghaus system!”

STEEL TRACK FRONT UNLOADING SYSTEM (Option 2):Peddinghaus’ Steel Track Front Unloader allows for completed parts to drop from the machine tableonto a conveyer system and into a tray at the front of the machine. The container provides easy transportation to the shipping area or work station. Parts up to 600 mm x 2500 mm (24" x 96") (maximum transferrable weight 680 kgs /1,500 lbs) can be unloaded withease. This system contains one 3048mm x 2185mm (10' 0" x 7' 0")conveyer system driven by a hydraulic pump that can be operated

independently of the machine.

The Safe, Labor Saving, and Smart Methodto Handle Plate Parts

HSFDB PLATE PROCESSING

All New Conveyor Options for Peddinghaus Plate Processors

Step 1: Drops Finished Parts

Step 2: Conveys Finished Parts to Operator

Step 3: Ready for Secondary Operation

Step 4: Safe, Smart, Labor Saving Parts Removal

SPRING 2010 STEEL FABRICATORS’ REVIEW 17WINTER 2011 STEEL FABRICATORS’ REVIEW 17


Peddinghaus now offers an optional oversize drilling package for fabricatorswho require drilled holes in plate 1-9/16 inch (40mm) and thicker. When itcomes to plate productivity Peddinghaus has pioneered some of the industries’leading innovations. Peddinghaus’ unique approach to plate production which combines ground-breaking material handling methods and efficient production concepts now has been enhanced for the production of oversizedplate components.

Extensive R & D testing is the foundation of engineering at Peddinghaus’ corporate headquarters in Bradley, Ilinois. Recently the HSFDB plate processorwas tested processing 3 Inch (75mm) thick plate and drilling 2.75 Inch(70mm) holes repeatedly in an effort to enhance tool longevity. It was foundthat with enhanced engineering techniques, the Peddinghaus High Speed FDB-2500 was able to achieve a tool life twice that of the tool manufacturers’published benchmark. In some tests nearly 400 holes were drilled without theneed to replace an insert!

Peddinghaus’ secret to maximum tool life in oversized plate applications is an optional oversized holedrilling package that allows for high air volumes and MQL mist lubrication that is applied directly tothe drilling surface. Using their very own “PeddiCool” brand of vegetable oil based MQL lubrication;Peddinghaus has once again proved that flood coolant is a thing of the past.

“For fabricators who need to drill massive holes in thick plate, we have found a solution that isn’t anoffline drilling station and doesn't require the flood coolant mess. Whether you are running heavy platesfor monopoles, high-rises, or specialty manufacturing applications the HSFDB-2500 is the all-in-onesolution for your production.”

Heavy Duty Options for Oversized Plate

Powerful Plate Drilling for High Tensile SteelHARDOX 500 PLATE DRILLINGHigh tensile strength plate such as Hardox 500 steel proves to be the stock ofchoice for a wide variety of manufacturing applications. Whether you are fabricating parts for crushers, sieves, conveyors, buckets, or any other item thatis required to be wear resistant, this ultra durable plate product proves to bemore than effective. Although the impressive Brinnell Hardness of 500 HBWand a tensile strength of 220 ksi (1517 MPa) make this material perfect forrugged applications, it has presented challenges for fabricators looking to cut,drill, and process this durable material. Not anymore!

The Peddinghaus HSFDB plate processor was put to the test and produced superiorresults when processing continuous production of Hardox 500 plate.Peddinghaus’ secret to drilling high tensile steel is the robust design and superior precision spindle technology of the HSFDB plate drilling, tapping,countersinking and thermal cutting center.

By applying a powerful 48 HP (36 kW) Siemens smart spindle motor and precision linear feedback system, the HSFDB effortlessly drilled of over 100 holes through 1" (25mm) thick Hardox 500 withoutthe need to change or index a carbide insert. Unlike common burn table systems that utilize chemicalbased flood coolant systems the HSFDB was able to provide superior tool life with the application of an eco-friendly minimum quantity lubrication system. This means more parts, less mess.


LYLE MENKEContinued from page 2

Peddinghaus: FMA’s Longest Standing Member – 40 Years Strong

Peddinghaus Corporation was honored at the recent FabTech InternationalExhibition in Atlanta as the sole remaining charter member of theFabricators & Manufacturers Association, FMA, of Rockford, Illinois.

Peddinghaus remains the ONLY company still in operation that signed up with the FMA in 1970. In addition to being feted in Atlanta,Peddinghaus is also featured in the January, 2011 edition of THE FABRICATOR magazine.

It is interesting that Peddinghaus also exhibited in the initial FabTechExhibition and has maintained a reputation for participating in this show throughout the years.

“Many companies have started and stopped in the steel fabrication industry in 40 years but Peddinghaus has remained a thriving entity through this period in our history.”

NASCC – Pittsburgh: We’re Cooking Up a Great Event!

The Steel City and the NASCC – that is a basic recipe for success! Add in a large portion of new Peddinghaus machine tool technology, plenty of fresh, new software, pour in some Peddinghaus wit & style, and you have all the ingredients for an outstanding educational and entertaining event!

Booth 402 will be the hot spot to whet your appetite for hot new technology! Our engineers have created three exciting new products that will satisfy your craving for new productivity – and that means profitfor you.

Monitor www.peddinghaus.com for NASCC event info as it happens. The NASCC in Pittsburgh could prove to be the pivotal decision time for your firm.

Remember, your business partner is Peddinghaus Corporation – the Power of One will be on display in Pittsburgh!




Experience The 2011 Fabricators’ Motorcycle Tour – PENNSYLVANIA

This year’s tour combines a little bit of education and American heritage with stops at destinations that include:

• The Harley Davidson York, PA Assembly Plant See how an American Icon is manufactured at the largestHarley Davidson Assembly plant in the USA!

• Visit at Kinsely Steel in York, PA A fabricator with an eye for total construction efficiency, learn how thisfabricating division of a large organization plans for each step of the construction process.

• Experience the Gettysburg Battlefield Investigate the history of this famous Battlefield which helped markthe turning point of the American Civil war.

• Visit Sippel Steel in Ambridge, PA Discover how Peddinghaus drills, saws, angle lines, and material handling put production at a whole new level.

• Visit Stewart Amos in Harrisburg, PA Take a tour of this first class facility and ask how when they neededa drill for their largest job ever, how Peddinghaus made it happen!

• Tour the Amish Country of Lancaster County See Pennsylvania Dutch country at its finest, from the seat ofa motorcycle with good friends!

Continued on page 22

NASCC 2011 PREVIEW

Peddinghaus Will Leave Their Mark on the 2011 NASCC!Explore “The Steel State” with Peddinghaus

on the 2011 NASCC Motorcycle Tour,

and witness how fabricators in

Pennsylvania use innovative technology

to compete in today’s global marketplace.

Join Peddinghaus for first class dining,

first class technology,

and first class camaraderie on our

annual two wheeled expedition

leading up to the NASCC in Pittsburgh.

VISIT US AT

AT THE 2011 NASCC

For details visit NASCC2011.PEDDINGHAUS.COM




Experience World Class Technology at the NASCC!Nobody does the NASCC like Peddinghaus! This year will be no different withgroundbreaking technology released yet again at this world class steel constructionexhibition. There’s simply no show like it in the world!

At Phoenix in 2009 the industry marveled when Peddinghaus released the world’s fastest carbide drill – The BDL-1250/9D, most powerful plate processor –The HSFDB-2500, and The Versatile Ring of Fire Thermal Processor.

At Orlando in 2010 the game had changed with the introduction of the Advantage 2 Carbide Drill Line – a record breaking achievement, The DG-1250 Miter Band Saw – the Industry’s fastest Sawing Technology, and the AFCPS-833 Revolution Anglemaster – the answer todetail efficiency and versatility.

Pittsburgh in 2011 will be no different – Peddinghaus continues to deliver technology that pushes theindustry to a whole new level. Expect to see form Peddinghaus technology and innovation that is thefirst of its kind the world over.

For more information on the 2011 NASCC in Pittsburgh, PA – USA visit www.aisc.org for details!

2011 Networking Event – Enjoy a First Class Evening with Other Industry ProfessionalsYour source for expertise and purveyor of entertainment – Peddinghaus never disappoints its industrypartners at the NASCC! This year will be no different! You may recall Peddinghaus’ past events thatincluded headlining entertainment such as Bill Engvall, Jim Palmer, and Ron White. Don’t miss out onthis year’s entertainer whose world class talent is second to none.

NASCC 2011 Continued from page 20

For details visit NASCC2011.PEDDINGHAUS.COM




24 HOUR CUSTOMER SUPPORTOur state-of-the-art Service Center continues to grow in order to serve you even better – and is now available to you 24 hours a day!

• 60+ trained traveling field service technicians for on site assistance• 20+ knowledgeable telephone technicians – with a collective 70+ years

of Peddinghaus field experience• Complete training facility for operators and programmers

With Siemens control technology, our service technicians based in Bradley, Ilinois, can assist with faultfinding on your machine by simply “logging on”. Our technicians can view your machine in operationfrom our Service Center and make any correction on the fly – this keeps you running.

TRAININGPeddinghaus is the industry leader in customer service backed by more experienced telephone and fieldtechnicians than anyone else in the industry. Classroom and on-site training assures customers have theknowledge to ensure fast machine start-up and quicker return on investment.

REMOTE DIAGNOSTICSThe powerful multi-axis Siemens control unit provides fully operational CNC control functionalitywith an integrated, user-friendly PC platform. This efficient control system provides remote diagnosticcapability which brings the expertise of the Peddinghaus service staff directly to your machine.

NEW - LIVE WEBCAM SUPPORTIn addition, our webcam troubleshooting capabilities assists our technicians in Bradley, Ilinois, USA to better serve you by:

• Remotely viewing live video footage for easier diagnosis of problems• Recording of video of machine problem areas in hi-definition• Live screen captures• Easy remote web diagnostics software• Retrieve and send for analysis

24 HOUR SERVICE

ON CALL. ON DUTY. ALL THE TIME.All this means faster customer service,

more accurate diagnosis and

most importantly, LESS DOWNTIME for you!

We serve you all the time.



As a technology company the innovation and quality of

Peddinghaus equipment is a direct result of the skilled

employees within the organization. Peddinghaus’

headquarters in Bradley, Illinois is one of three global

manufacturing locations, and houses the engineering

departments in charge of developing Plate Machines,

Drill Lines, Burning Equipment, Specialized Material

Handling Systems and Research & Development.

Spearheading these initiatives is Jim Sutliffe, VP of

Engineering.

Jim, can you tell us a bit about your engineering background in automation andmachine design?

After graduating from the University of Illinois,I was immediately immersed within the automation industry. At my first job I workedfor FANUC Robotics as an Installation Engineerdoing programming, field service work, andmachine assembly. It was a fantastic experienceand a great opportunity for me right out ofschool. I wound up in Project Management forsome key accounts at FANUC which laterprompted a career move to Johnson Controls.

While at Johnson Controls, I was no longerworking on exclusively robotic automation. I worked as a Corporate Engineer, a PlantResident Engineer, a Continuous Improvementand Quality Manager, and then as a ProcessEngineering Manager. I had been a supplier, aCorporate Engineer and a Plant Engineer so Igot to see all sides of the relationship an organi-zation has with their machine manufacturer.

All of these experiences benefit me, and our customers today in my role at Peddinghaus. I have been with Peddinghaus now for just over3 years now and truly enjoy the industry weserve and customers we work with.

Can you tell readers a little bit more abouthow Peddinghaus’ engineering department is structured?

We have 21 engineers split between our different machine groups and quality initiatives.There are several mechanical engineering groups with leaders over the Drill, Plate and Burnapplications. We also have independentElectrical, Controls, and Software engineeringdepartments.

We recently added a Continuous ImprovementDepartment to work closely with manufacturingand customer service. I call the ContinuousImprovement process “closing the loop”. Itmeans getting feedback to our design engineersso we are always improving our designs. Itmeans developing metrics so we can measurehow we’re doing with our customers. This is anew initiative for Peddinghaus and we arealready seeing benefits from our efforts.

Also, being an international company we workregularly with our Global counterparts. Mostrecently the PCD-1100/3C Advantage 2 was a joint development with our engineers inGevelsberg, Germany. People fabricate steel differently in the UK from people in Germanyfrom people in Australia from people here in theUnited States. All of Peddinghaus equipment isdesigned from a global perspective, with feed-back coming from every corner of the world.

Since joining the Peddinghaus engineeringdepartment how have you seen fabricationtechnology evolve?

With fabrication technology the only thing that is constant is the need for change. As aresult Peddinghaus technology evolves fasterevery year. What has changed the most in thelast 2-3 years is the economy and the desire forboth efficiency and accessible information. What benefits Peddinghaus greatly in these areasis the flexibility in our Siemens controls andelectronics. People desire instant informationand the ability to gather it from anywhere in the world. With some of the products you willsee in the near future it will be clear thatPeddinghaus is moving in the right directionand staying on the cutting edge of the industry.

Can you give us a hint at some of the latestitems Peddinghaus’ engineering department iscurrently exploring?

The burn group has a fantastic machine whichwill be unveiled at NASCC in Pittsburgh, PA -USA. Let’s just say it helps fabricators exploit all the information in their building models toimprove accuracy and information transfer. Also, the international market deals with somebig profiles – plate is rolled in excess of 3 meters.Peddinghaus has some great ideas to respond tothe need for bigger, wider, heavier, plate applica-tions. Lastly, the drill group is starting to get creative with how we handle materials. I don’twant to ruin any surprises, but if you come toBradley or visit us at a show in the near future Iwould love to tell you more about it in person!

What do you see as the future of Peddinghaussoftware – do you have anything in the worksyou can tip us off about?

We’re starting to do some great things with software. Adnexxus, our Tekla data extractor, is a great new advancement for us. I can see how it will bring a great deal of productivity to our customers whether it is extracting informationfrom the model for scribing or just avoiding the hassle of an extra convert to a common filetype such as DSTV. I think you’ll see this areaexpand over the next 6 to 12 months as we continue to build on the Adnexxus engine.

We also are working with FabTrol and FabSuiteso that our newest product, PeddiTrack, updatesour customers’ software with real-time produc-tion data. The demand for information is there.We’re responding by providing that informationand helping our customers make better decisionsabout their production process.


GETTING TO KNOW…

Jim SutliffeVP of Engineering

Jim Sutliffe (second from left) meets daily with the Continuous Improvement Engineers, Customer Service, and Spare Parts Management team toensure progressive designs for future machines.



VOLUME 36 STEEL FABRICATORS’ REVIEW WINTER 2011

STEEL FABRICATORS’ REVIEWWashington and Grove StreetBradley, IL 60915815. 937. 3800www.steelfabreview.com

PRSRT STDU.S. POSTAGE

PAIDPERMIT NO. 157

Joliet, IL

POWERFUL TAX INCENTIVES IN THE USA – USE THEM BEFORE THEY'RE GONE!

THE USA'S100% BONUSDEPRECIATION TAX INCENTIVE EXPLAINED…

There has never been a more affordable

time to buy a new machine in the

United States of America.

Interest rates are at all time lows and

tax incentives are the most powerful they

have ever been in the history of the USA.

The federal government is making it

easier than ever to invest in equipment

for the year 2011. No matter your size

or profit projections for the coming year;

you are eligible to benefit from the

current tax laws.

What Do We Mean by 100% Bonus Depreciation?Traditionally when a machine is purchased fabricators areable to write off the value of the machine over severalyears (conventionally 7-10) as an expense. Every time thismachine "depreciation" expense is written off, it reducestaxable income. By reducing taxable income, you reducethe amount of money that is multiplied by your tax ratepercentage, therefore reducing the taxes you pay!

How Does 100% Bonus Depreciation Work?As opposed to depreciating machine cost over a setamount of time, fabricators are now able to fully depreciate the entire machine cost in a single year – 2011,from their taxable income. This 100% deduction in 2011saves you on taxes NOW, instead of over the normal depreciation time span set by the IRS. This means big tax savings today! Depending on your tax situation, youmay expect to save an average of 35% from a machinepurchase - this means if a system costs $450,000 – youcould save $157,500 from your taxes in 2011! A net cost of $292,500 for that machine tool investment!

Don’t wait! Machines must be installed no later than 12/31/2011!!!!

What If I Do Not Expect Taxable Profit This Year?CARRYBACK tax deductions for an income tax refund

For some structural fabricators previous years yielded profits, but also higher tax expenditures. Using the CARRYBACK method, taxes can be refunded from previousyears where taxes were paid, assisting you now in today’scomplex marketplace. For every dollar of taxes paid in thelast 2 years – you are eligible to receive a 100% refundusing the CARRYBACK method of tax deductions.

CARRYFORWARD tax deduction for future tax savings

There may be scenarios where fabricators did not have aconsiderable amount of taxable income in recent time.Using the 100% Bonus Depreciation law, the value of amachine can be carried forward as far as 20 years from2011, and deducted from future taxable income. Thismeans an organization will not need to pay taxes until allCARRYFORWARD tax credits are utilized!

What Do I Do Now? Feel free to contact your Peddinghaus Regional Manager to receive a firsthand demonstration on how powerful this new tax incentive can apply to a new machine investment. Each of our USA Regional Managers has beenfully trained to explain to you the key benefits of this new tax law in detail.

Peddinghaus Corporation recommends

before making any financial decisions using

these laws that you contact a trusted tax

professional. For more information on

100% Bonus Depreciation and current

financing options available to your organization

please contact [email protected].

Documents

Steel Fabricators Review V36-Winter2011