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just quote on a price-per-pound basis, we consider all the factors. Tis tool allows us to know exactly where each job stands as it is produced.”


Profit Centers


Oil City’s rough casting business is not its only source of income. The company has machined on-site since the casting operation was founded. Today, the value-added service gives it an upper hand in sales and during quality inspections. “When you machine your own cast-


Both the in-house built heat treatment operation and Oil City’s machine shop are considered profit centers to ensure all castings make money.


“We are focused on our costs, quality and process control to ensure every casting is a success.”—Eric R. Meyers, president


ings, you see any possible defects first. Tis is a huge advantage,” Riley said. “We perform rough and finish machining. [To machine in-house], you need the most advanced machinery. You must be competitive and have the tools.” Currently, Oil City machines 10%


of its production in-house. In 2010, OCIW installed a new $750,000 ver- tical turning lathe capable of swing- ing 72 in., which again increased capacity in its machine shop. Tis was the fifth new machine tool since 2008. Another expansion is currently being planned for 2012. Oil City also expanded their in- house heat treatment by building two stress relief furnaces within the last three years. After soliciting quotes from outside vendors, the firm built the furnaces with in-house staff during the recession at a 30% reduced cost. Oil City treats its machine shop,


heat treat operation and in-house paint shop as individual profit centers. As with the casting business, the goal is to make sure no job is a loser. “We are focused on our costs,


quality and process control to ensure every casting is a success,” President Meyers Jr. said. Meyers Jr. believes this focus is at


the heart of his family’s company. Ac- cording to him, soon after the BP oil disaster occurred in the Gulf from April to June of 2010, the facility was hit with four quality audits in a month. Oil City came through without a scratch. “Every casting operation has its


Oil City machines 10% of its production in-house. 24 | MODERN CASTING August 2011


own unique problems to overcome,” Meyers said. “We were fortunate with this last recession. We were stable go- ing into it, which has allowed us to be strong coming out of it.”


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