How to get the Value of Steel Founders

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How to get the Value of Steel Founders Society
of AmericaMembership?

• SFSA
• 780 McArdle Drive Unit G
• Crystal Lake, IL 60014
• 815-455-8240
• www.sfsa.org

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SFSA

• Our society
• Not for profit trade association founded in 1902
• Membership limited to steel foundries and we are
  actively recruiting more members from the
  industry
• Goal is advance the steel casting industry
• Our members
• Are all steel casting producers
• Have a culture of collaboration and innovation
• Our industry
• 1M tons produced
• About 9M tons worldwide

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Members comments

• The technical papers presented at the SFSA TO
  Conference in Chicago have been invaluable. I
  think this is the most valuable part of our
  membership
• Our company recently began producing castings
  with much larger section sizes that we had made
  in the past. As in the past we contacted SFSA
  for help. They not only provided technical
  research information, they put us in contact with
  a network of other members with Heavy section
  expertise. With this help we made these casting
  with out a problem
• The SFSA Future Leaders Group benefits people
  like me- people who continue to see the amazing
  growth of this industry through innovation and
  technology

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Biggest Value of SFSA

• For members active in SFSA the biggest value is
  the ability to network with other members
• Benchmarking their current practices
• Sharing innovations and improvements
• Drawing on the library and expertise of the world
  experts in steel casting technology
• Gaining access to up to date business information
  
• Able to keep up with the state of the market
  steel casting practices.

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Steel Founders Society

• Mission To serve the steel casting industry in
  North America.
• Vision With the active support and leadership of
  a supermajority of eligible member plants , SFSA
  will be managing a diverse and relevant
  technology development program, developing new
  markets and applications, representing the
  industry nationally and internationally in
  regulatory and specification development,
  providing timely and useful business information,
  and providing state of the art training.

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Current Board of Directors

• John Workman (President)
• Martin Stap (Vice-President)
• David Anderson (Immediate Past- President)
• Dan Swartz (Director-at-Large)
• Billy T. Bobbitt (Southern Division)
• Tyrus Tenold (Western Division)
• Guillermo de Oyarzabel, (Director-at-large)
• Andy Fulton, (Director-at-large)
• Jack Lilley, (North Central Div)
• Al Kinnard, (Director-at-Large)
• Rich Beyersdorfer (Eastern Division)

• Eagle Alloy, Inc.
• American Centrifugal
• Vancouver Iron Steel
• Southern Alloy Corporation
• Spokane Industries
• Fimex S.A.
• ME Global Inc.
• MetalTek International
• Matrix Metals LLC
• The Sawbrook Steel Castings Company

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SFSA Membership
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SFSA Finances
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SFSA Goals

• Goal- Promote technology innovation
• Manage an effective industry led program of
  technology development
• Provide direct technical support to members as
  needed
• Goal- Develop and provide education and training
  on steel casting production and use
• Provide timely and clear descriptions of
  technology improvements
• Present training in troubleshooting and best
  practices to members and at SFSA meetings

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Member Tours

• Key SFSA values is organized tours of plants
• All members typically invited
• SFSA policy is that if you participate in touring
  a plant then the host should be allowed to visit
  your plant
• Product groups/divisions/ and committees meet at
  plants for about 6-10 tours per year
• Many members allow private tours for other members

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Product Groups

• Product groups meet once a year
• Formed to allow focused program on particular
  interests
• Groups include
• Heavy section
• High alloy
• Investment casting
• Centrifugal
• All members invited to participate

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Research Committees

• Carbon and Low Alloy
• Focus on process development
• Current research on improving NDE stds/ higher
  strength alloys/ better simulation modeling
• High Alloy
• Focus on alloy development
• Current research on super duplex/ super
  austenitic/ welding/ heat treatment
• All members can be on committees and direct work
  and interact with peers and researchers

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RD Programs

• Current programs
• American Metalcasting Consortium (DOD)
• Cast Metals Coalition (DOE)
• Specification (DOC)
• Building construction (NSF)
• 2.435M value

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Research Funding
Federal Diversified
SFSA
Sponsors
Federal
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NDE

• Quality ensured through
• Modeling
• Quantitative standards
• RR of methods
• Planned research
• Visual inspection technique
• Radiographic standard
• NDE standard based on part performance

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Research at Work
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Technical Meeting

• Annual TO includes updates on all research
  activities
• SFSA research review in summer for members to
  have update on research
• Technical updates given at most product group and
  divisional meetings

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Problem Solving

• SFSA Technical Service if you have a problem,
  we can have one of the SFSA researchers
  investigate the problem at no cost to you

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Specifications

• Specifications Committee meets twice a year at
  the ASTM A01.18 meeting
• All members should have a representative in ASTM
  to keep up to date/ get technical information on
  new alloys and requirements
• SFSA Spec Comm. Is involved in ASTM/
  ASME/ISO/API/NACE.

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Customer Expectations

• How do you ensure that your customers do not
  order a product that cannot be made?
• Negotiate specifications that make sense ASTM
• Negotiate specifications that make sense ISO
• Work with your customer MTI
• Send your people to the ASTM meetings and join
  the SFSA Specifications Committee

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SFSA Goal

• Find and disseminate business information
  critical to the success of steel foundries
• Provide the opportunities to network and develop
  contact throughout our industry
• Gather and analyze information of market trends,
  industry capacity and best practices

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Management Meetings

• Management Meeting -Spring
• Timely Business information
• Job Shop Lean/ ITAR
• Economic report/ Benchmarking/Credit monitoring
• SFSA Annual Meeting -Fall
• Networking retreat
• Meet and network with industry leaders
• Yearly forecast/ business roundtable
• Policy and technical updates

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Meetings

• Annual Technical and Operating Conference in
  Chicago in December
• Only conference devoted to steel foundry
  technology/ over half the papers from members
• State of the market/technology papers
• Networking with operations/technical staff
• Divisional meeting
• Four a year in different areas of NA
• All members can participate
• Normally include a plant tour

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Surveys

• Short surveys proposed by members
• Limited to a single topic and 5 questions
• All responses sent to respondents
• Past areas safety glasses, Capex plans,
  surcharges/military work/ EAF dust/ energy
• Long surveys for benchmarks
• Capacity/ performance benchmarking
• SFSA Trend cards
• Provides most current and accurate picture of
  market activity

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Financial Performance
Median Steel Foundries Other Foundries
Inventory Turns Cost/Inventory 7 (4 AGMA) 12 (typical 6)
Average Days of Receivables 35 (48.6 AGMA) 40
Value Added Per dollar of labor and capital 1.44 1.38
Per dollar of machinery 2.02 1.50
Per square foot of production 96 96
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Costs as a percent of shipments
Type of Production Materials Labor Energy Cap-ex Gross Profit
Foundries 48 28 5.0 3.7 17.6
Forging 56 22 2.3 2.9 17.3
Machining 39 35 1.6 4.1 18.8
Fabrication 48 25 1.7 2.6 21.0
Steel products from purchased steel 64 13 2.5 2.0 18.8
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Future Leaders Group

• SFSA members commonly have large demographic gap
  of 20 years between senior staff and new leaders
• Future Leaders is to develop younger staff/
  develop their peer group network/ tour plants and
  talk to industry leaders/ integrate into the
  committee structure of SFSA
• All members are able to add staff to the group.

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Marketing Committee

• Any member can join
• Meets three times a year
• Allows complementary plants to collaborate
• Prepares annual forecast
• Identifies new market potentials
• Develops sales force with network of contacts and
  knowledge of steel foundry marketing and sales
  practices

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Industry Forecast
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SFSA Schumo Foundation

• Bob Schumo an SFSA past president helped setup a
  foundation for the future of our industry,
  current funding is 180,000
• We select two interns hired by members each year.
  The interns complete a project at the member
  company and report at the TO
• We award each student a 5,000 scholarship
• All members can apply to hire an intern and
  participate

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SFSA Goals

• Develop new market applications for steel
  castings.
• Develop and encourage new products made using
  steel casting technology
• To promote, provide technical, design, and
  specification support for new applications in new
  industries.

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Identifying Opportunities

• Part Search Database
• Defensecastingtoolkit.com/partsearch.htm
• Online source that assists foundries to
• Quickly identify casting NSNs
• Associate prospect list with DIBBS user account
• Determine anticipated demand

• Leverages CAST-IT, DSCR DSCC databases
• 7,000 casting NSNs
• Routinely updated

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Wind

• 100 ductile iron
• .70/pound
• 30 tons castings/MW
• 2008 8,000 MW installed
• 2011 16,000 MW planned
• 20 by 2030
• 1.5 MW to 3-5 MW (larger castings)
• Advantages of steel castings
• Weldable
• Stiffness
• Higher properties
• UI RD proposal

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Building Construction SC3

• Steel Castings Construction Consortium SC3
• Organized by SFSA for market development
• Works with AISC to get castings in steel
  buildings
• Successfully developed standard for their code
• Displays at their trade show. NASCC

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Building Construction

• Seismic building construction code now contains
  Appendix A for steel castings
• API SC2 offshore cast node standard completed
• September 18th was Steel Day

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SFSA Goals

• Advocate for the industry in the development of
  regulations and public policies.
• Communicate cost effective compliance strategies
  for regulatory compliance
• Advocate for the industry
• Promote the safety and health of workers in the
  steel foundry

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HR/Safety

• HR/Safety Committee meets two times a year
• SFSA makes safety awards to members with
  exceptional records
• Committee has roundtable discussion focusing on a
  current topic.
• All members invited to participate
• "one foundry has dramatically improved their
  Safety record and save six figures annually as a
  result of benchmarking best practices with other
  members."

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HR and Safety

• Regulations and Working Practices are changing
  all the time. The only way to stay up to date is
  to stay up to date on the requirements.
• Foundries are at the top of the OSHA Hit List.
  The most concerted pressure is in the area of
  Record Keeping and Arc Flash
• Join the Safety Committee for up to date
  information and networking.

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SFSA Advocacy

• SFSA works with AFS to advocate for the steel
  casting industry
• EPA
• Worked on the MACT standard
• Alerted members on the GHG reporting
• OSHA
• Working on combustible dust
• Alerted industry on hex-chrome

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Thanks!Questions?
Raymond Monroe 815-455-8240 monroe_at_sfsa.org