We are watching additive manufacturing closely. This is particularly true as the quality is improving and getting closer to that of machined gears. Another indicator we are watching within the additive manufacturing realm is the material certs of these powdered metals as they relate to those of billet or a forging.
Another trend we are watching through vendors and customers is gears that are produced on non-traditional gear machines—non-dedicated equipment such as multitasking mill turn equipment. As a manufacturer, we must look at leveraging that into our own processes to remain competitive.
Lastly, automation and cobots are both considerations, but as a job shop with low volume and high mix applications, these resources are limited for our scope. We are looking at the intuitive cobots. Implementing these into our workflow is something we’re getting creative about.
How are you navigating supply chain issues, materials, shipping, lead time challenges as we head into 2023? Are things getting better or worse post-pandemic in these areas?
Due to our customer base, we are large in part mandated to our customers’ restrictions and approved supplier lists. This restricts our ability to take control of our supply chain and vendor management to the extent we would like.
A few years ago, we made a conscious effort to exit from customer LTAs that had restrictive pricing pass-throughs and certain covenants. This has proven to be very fortuitous, as we have been able to pass through increased prices for materials and special processing to our customers.
Lead time is delicate and difficult with customers, oftentimes due to their own labor issues and shortages. We are as proactive as possible with our vendors regarding lead time, giving as much visibility as possible and providing POs to “get in line.” Of course, the most advantageous way to navigate these issues is by simply fostering good relationships and providing good communication with both our customers and our vendors.
Unfortunately, we would say that overall supply chain issues are not improving post pandemic. The supply chain is struggling as the volume ramps up post pandemic, with commercial aerospace the primary driver for us here at FCG. Scaling the supply chain back up has been cumbersome given the widespread shortage of human capital.
What is the state of your business regarding training and developing your skilled workforce internally and the state of finding skilled workers to join the organization?
For decades, FCG has felt that investment in our workforce is a central tenet to our success. Through COVID shutdowns, we were unable to focus the resources we historically have on training. Mid-2022, we reinvigorated our approach to this. Of course, we take advantage of AGMA continuing education classes, the Gleason Gear School, Helios Gear School, the National Tooling & Machining Apprenticeship Program, and many local training programs; however, we find that “growing our own” is typically better than trying to find skilled workers to bring in. Of course, this approach has a much longer lead time and investment cycle and is not a quick fix. FCG is forecasting some exciting growth over the next three years and staffing is our greatest threat to slowing that growth.