Comments from the President ...


the investment casting user is su~stantial in m?st applications. First glance may indicate the captive foundry could produce at less cost. This could be wishful thinking because competition forces all com- mercial foundries to find means to reduce costs. The competitive pressures on a captive foundry are less urgent. Once the parent company makes its im'.e?t- ment in its own foundry it must support the fac1hty even when it may not' be economically desirable to do so.


During the last two years several investment cast- ing users have investigated setting up their own captive foundries. Careful analysis by these com- panies has forced most of them to give up the project. I would like to illustrate the prime difficul- ties which they found serious:


- lack of know-how - an ever-increasing, large capital investment - loss of competitive pressure on service, quality and prices


Applying parent company overhei:i~s usuall~ makes the captive foundries less competitive. Durmg slow business periods additional casting work may be sought from outside sources to keep the foundry operating efficiently. Outsiders are skeptical of plac- ing work with captive foundries.


- recognition that meeting all delivery schedules remains a problem.


Investment casting know-how is a valuable asset. It is a combination of a science and an art. Each year it is becoming more of a science as we develop more elaborate equipment, train more technical per- sonnel and apply more process controls. Developing know-how is expensive. Although a metallurgical product is manufactured, a deep knowledge of ce- ramics is required also. Men with managerial skills and know-how too are difficult to find to manage the captive foundry.


The first analysis for capital equipment may seem low. Even the industrial arts classes in our high schools can make investment castings. Actually a progressive investment casting foundry must make a large capital investment in order to produce parts of consistent good quality at competitive prices. This requires designing and building special-purpose equipment and buying specialized production equip- ment when available. The foundry, tool room, heat treatment, and laboratory equipment is expensive. As our customers tighten up on their quality stand- ards, the need for more equipment increases.


Pricing of investment castings seems high as com- pared to the per pound price basis used in the sand foundry industry. The cost of manufacture in our foundry industry is expensive, but the end saving to


Meeting production schedules is alwa)'.s a probl~m whether purchasing from the commercial foundnes or manufacturing for the parent company only. In either case sufficient backlog is desirable to make the most efficient use of any foundry. I would sug- gest talking and reviewing scheduling problems with the commercial foundries. It is usually possible to work out these problems on a mutually accept- able basis.


Casting prices may vary considerably from. foundry to foundry. This truly reflects our Amencan free competitive system. The lowest price may not be the most economical. Select only a few investment casters which have a proven record for


.... quality .... service z1S .. .. price


Deal with reputable investment foundries. Then, most of the problems with your casting applications are eliminated. Consult with your present or near- est Investment Casting Institute member foundry.


1 E G ./L<.I--""'""RAY


PRESIDENT INVESTMENT CASTING INSTITUTE


EDITOR'S NOTE:


This is the last column by Mr. Gray as President of ICI. As noted in the article on this page he has been succeeded by President-Elect Mr. Joseph Cadieux. However, this column had been written before the election and because of Mr. Gray's comments it was felt that readers would be interested in his observations.


J. H. CADIEUX ELECTED ICI PRESIDENT


J. H. Cadieux, President, Casting Engineers, has been elected President of the Investment Casting Institute. He succeeds Mr. R. E. Gray, Vice President of Gray-Syracuse, Incorpor- ated. Mr. Gray will serve as a member of the ICI Executive Committee in 1964.


In other elections, T. N. Thys, Vice-President, Precision Founders, Inc., was elected a Vice President of the ICI in charge of the management activities in 1964. L. R. Schwedes, President, Lawrence Laboratory, was elected Vice President - in charge of technical programs in 1964.


0. W. Hale, Vice-President, Independent Steel Casting Com- A pany, Incorporated, was elected Treasurer.


• 2


R. E. Gray, Vice-President, Gray-Syracuse, Incorporated, Im- mediate Past President of the Investment Casting Institute, is shown on the left with Mr. J. H. Cadieux, President, Cast- ing Engineers, ICl's new President.


The Affiliate Members of the Investment Casting Institute elected two members to the ICI Board of Directors. Alex Saunders, President, Alexander Saunders and Company, was elected First Vice President-Affiliate; and John Fritz, General


Manager, WaiMet Alloys Company, was elected Second Vice President-Affiliate.


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