Best Practices for Managing Costs in Forges

February 25, 2014 / ,

In today’s competitive and unpredictable market, managers need to approach cost strategically. While several reports are forecasting a forging industry upswing in 2014, both in the U.S. and globally, many forges remain cautiously optimistic about the market and, as a result, are continuing to watch their costs.

According to the “2014 Business Outlook” from Forging Magazine about 41% of the forges the magazine polled said their capital spending totals will be “about the same” in 2014 as they were in 2013. Another 34.5% of forges indicated their spending total would increase in 2014, and 24% said that spending would decrease, according to the report. The annual business survey also revealed that most new investments would be financed without new debt, and about 12% of respondents said they were hoping to actually reduce their debt levels in 2014.

There are several ways today’s forges and other industrial metal-cutting companies are proactively approaching cost, whether that means cutting back on spending or improving efficiency. Below are a few best practices to consider:



Allocating Resources in Forges

January 25, 2014 / ,

Strategic allocation of resources is critical in today’s competitive marketplace. As customers continue to demand tighter tolerances and faster turnaround, operations managers need to be tactical with their existing assets while also knowing when it is time to make some upgrades. The challenge, of course, is making the right call by investing in the areas of your operation that will bring the best return.

While there is always an element of risk to any strategic decision, the following are a few best practices today’s managers should consider as they allocate resources in their operations:



Strategies for Meeting Customer Demands

December 5, 2013 / , ,

Like all segments of the industrial metal-cutting industry, forges must respond quickly to changes in the marketplace. This is even more so the case in recent years. While projections from the Forging Industry Association and IHS Global Insights expect the forging industry to pick up again in 2014, a few rough years have heightened competition not only among forges, but also with companies that offer alternatives to forged components. And that competition isn’t just within the U.S. According to a global industry report from ResearchMoz, an Albany, N.Y.-based market research firm, there has been an upward trend in the outsourcing of forged parts to low-cost countries.

This means that meeting customer demands for both speed and quality are essential, especially if you can’t compete on cost. The harsh reality is that today’s customers expect parts to be finished in half the time they took five years ago—with zero errors. The challenge for operations managers is finding strategies that balance excellence and efficiency, making sure that one doesn’t come at the cost of the other.

In some cases, this will require the use of advanced measurement tools and other technologies that optimize production. However, a white paper from the LENOX Institute of Technology suggests several other ways forging operations can ensure they are meeting deadlines and maintaining a high level of quality. Below are a few highlights from the paper, The Top 5 Operating Challenges for Forges that Cut and Process Metal:


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