[with diecasting], they will be given a lower unit price.” During a recent tour, Andy Stroh
pointed out an aluminum part the company was producing with cast-in steel inserts—an example of the type of complex, designed castings his com- pany believes is its niche. “We like value-added and complex
parts, such as military parts, which have tight tolerances, or the high- end aerospace market because it is low-volume with tight tolerances,” he said.
Gray Skies Clearing Up The tide may be turning for the
North American diecasters that have weathered the downsizing of the in- dustry and recent economic freeze. Many military programs matured to the point of production in January, according to Merritt, and orders
Stroh Precision specializes in complex die castings like this aluminum part that required a cast-in steel insert.
With Customers in Part Design
for a rugged tabled computer, which Twin City Die Castings converted from an aluminum hogout (Fig. B). Using simulation software, the diecaster found a way to produce the part in magne- sium to reduce weight while utilizing a cast-in aluminum insert to dissipate heat in the necessary areas. When the diecasting market took a
hit in 2009, Twin City Die Castings, like other shops, had to make adjustments to stay afl oat. “With a downturn, you are forced
to be more creative,” Olson said. “We have had to focus on cost and productivity. To a certain extent, you just have to react on the cost side. When things were slow, we had some shared work programs going to 32 hours a week. Or we changed shifts from three to two.” As the market heats up—the diecast-
ing industry is forecast to rebound 58% through 2013—Twin City Die Castings is hoping to return to peak production with ease. Even during the recent reces- sion, the diecaster did not slow down its capital reinvestment.
MODERN CASTING / September 2010 “We make sure we replace our old
casting equipment,” Olson said. “The oldest machine we have is 15 years old; the newest one is two months old. The equipment we buy is generally high end, which gives us some kind of advantage in making parts others can’t make or making more per hour.” The company also has established
a global presence by entering into a joint venture with an Asian diecaster. According to Olson, the Asian company produces parts for Asian markets rather than importing them back to the U.S. “Our customer base is really
comprised of companies with an international presence,” he said. “We’re fi nding that they prefer to deal with fewer suppliers overall and give a greater work load to the ones they have.” As for parts being made in low cost countries for import back to North America, Olson said he is starting to see some of those returning to U.S.-based diecasters as the price dif- ference becomes more competitive. “I spend a fair amount of time in Asia—making four trips this year so far,” he said. “Prices are defi nitely on the increase over there. You don’t hear as much about quality, but the gap is narrowing on price.”
MC
from other markets look lucrative, as well. “Since the fi rst of the year, I have
seen three of the four largest pro- grams I have ever seen in my life in terms of quantities per line item,” Merritt said. “The interesting thing is that none of the three came from Fortune 500 companies. It can be a skewed statistic, but the point is, there are jobs out there. I fi nd that part exciting.” Stroh Precision sees itself on
course to take advantage of the new orders and new markets that could be popping up soon. With its HUB- ZONE status, smaller and more eco- nomic footprint, streamlined management staff and
refocused business strategy, Andy Stroh is optimistic about the next few years. “I’m very pleased with how we’ve transitioned over the last six months,” he said. The diecaster’s new business own-
ers agree. “All in all, Stroh Precision has made a
signifi cant and important change,” one of the partners said. “It will be ready to double its volume in three years.” MC
Fig. B. Twin City Die Castings inserted an aluminum heat-sink (right) into a die cast magnesium housing (left).
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