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shOP | PROFILE LOFTech FINDING a SOLID PARTNER IN METAL SuPERMARKETS Few companies grew during the 2009 recession, but LOFTech, a prototype manufacturing company in Vadnais Heights, Minn., managed to grow by 50 percent. LOFTech recently expanded its capabilities to include the design and assembly of automated equipment. In addition to custom machining, the company now provides turnkey fabrication and automation for engineering firms, tool design groups and other companies. Founded in 2003, LOFTech started out with four owners and 2,100 square feet of rented space. Today it has 30 employees and owns a 15,000-squarefoot building. What’s more, the company has no sales staff. Dan Feser, president, attributes LOFTech’s growth to a simple business philosophy. “We’re known for doing what we say and saying what we do,” he said. “We started this business to give customers what they ask for—or to tell them upfront whether we can fit it into our schedules or whether it’s outside the realm of our expertise. More respect is gained from saying no, than from saying yes and not delivering.” With that approach, LOFTech has experienced significant growth and success. However, the company has learned some lessons along the way, including the importance of eliminating extra inventory and processes. In the beginning, LOFTech purchased large amounts of materials based on volume discounts and then stored the materials on its shelves. But that system ended up hurting, not helping, the company’s bottom line. To stay lean and Doug Knepper, vice president of Metal Supermarkets, shows an example of the materials LOFTech orders on a daily basis. Everything is cut to size and shipped to order. focus on what it does best, LOFTech decided to eliminate virtually all of its inventory and buy only what it needed. Now LOFTech purchases materials on a daily basis and receives everything cut to size and shipped to order. The majority of its materials come from Metal Supermarkets Corporation in Roseville, Minn. “We’ve found that other metal suppliers don’t carry the inventory that Metal Supermarkets does,” Feser said. “And most of them don’t have the ability to quote quickly and deliver on time.” In many cases, the quote is completed and the materials are delivered the same day, he said. That allows LOFTech to focus on its core capabilities, which are designing and machining, not chopping metal. “We’re not in the business of trying to find materials, bring them in and cut them ourselves,” Feser said. “That’s why we rely on Metal Supermarkets.” About Metal Supermarkets Metal Supermarkets is the largest supplier of small quantity metals worldwide. With more than 80 stores More respect is gained from saying no, than from saying yes and not delivering. - Dan Feser, president, LOFTech in five countries, it has established what it calls the “convenience stores” of the metal industry. In Minnesota, Metal Supermarkets has three locations: Roseville, Burnsville and Brooklyn Park, which just re-located from Maple Grove to a newer, much bigger building to accommodate existing and future growth. The new facility is just East of Highway169 on 93rd in Brooklyn Park, allowing for easier access. With a fleet of delivery vehicles, all three locations deliver to companies located in Minnesota. The Roseville location opened in 2001, and 6 years later, the Burnsville facility opened its doors. Brooklyn Park is its newest location, having opened in 2010. Each of the locations transfer and share inventory to ensure a wide selection of materials is available. Doug Knepper, vice president of Metal Supermarkets, said one of the things that sets his company apart is rapid delivery times. “We try to locate ourselves so we can get to people quickly,” he said. “In that way, we’re more nimble and can react faster than big companies that sell materials by the truckload. That’s key for today’s businesses.” Most orders, he said, are for sameday or next-day delivery. Metal Supermarkets carries more than 8,000 products, shapes and grades of materials, including aluminum, steel, stainless, brass and copper. In addition, the company has access to many specialty items through its extensive network of vendors in the United States. “We sell a little bit of everything,” Knepper said. “If you need three bars of aluminum, one bar of copper and 16 inches of stainless, we can bundle it all together and deliver it right away.” Customers of Metal Supermarkets range from one-person job shops to Fortune 500 companies that need metal for maintenance or R&D work. Unlike 24 | PRECISION MANUFACTURING May | June 201 PAID SUPPLEMENT
“What we’re seeing is more and more companies going to just-intime orders and buying only what they need. - Doug Knepper, vice president of Metal Supermarkets Corporation other distributors, Metal Supermarkets does not require customers to place a minimum order. “A lot of companies make the mistake of buying more than they need based on the price per pound,” Knepper said. “Sooner or later they realize they’re tying up thousands of dollars in inventory that they may or may not ever use. What we’re seeing is more and more companies going to just-in-time orders and buying only what they need. They might pay a little more per pound, but they save money in the long run by not having inventory sit on their shelves.” The Sky is the Limit Metal Supermarkets has metal on the moon. In 2009, NASA launched the LCROSS Mission rocket that included metal from Metal Supermarkets. The parts, which were manufactured by LOFTech and designed by Dr. Dave Landis of Aurora Design, were key to the success of NASA’s mission. In October of 2009, about 4 months after its launch, the NASA LCROSS payload jettisoned an SUVsized projectile at the moon at 5,600 miles per hour, creating a 40-mile debris cloud. Then the payload, which included the telescopes, solar viewers, and spectrometers, designed by Dr. Landis and manufactured by LOFTech from material supplied by Metal Supermarkets, flew through the cloud to analyze the debris. The mission was a success. NASA collected the data it needed and Metal Supermarkets, LOFTech and Aurora Design helped to write a little piece of history. Feser said LOFTech will continue to focus on what it does best and strengthen its niche in high-precision manufacturing. As long as the company stays focused, he expects continued growth and success. “Metal Supermarkets can help us produce something more quickly than others,” Feser said. “Knowing the resources we have and knowing our time and capabilities means we don’t get ourselves into a jam.” To that extent, Metal Supermarkets has proven to be a super market for metals. PM For more information about Metal Supermarkets Corporation, visit www.metalsupermarkets.com or contact Doug Knepper at dknepper@metalsupermarkets.com With more than 80 locations in five countries, including three in Minnesota, Metal Supermarkets has established itself as the “convenience stores” of the metal industry PAID SUPPLEMENT May | June 2010 PRECISION MANUFACTURING | 25
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Page 3 and 4: TABLE | OF CONTENTS May | June 2010
Page 5: Make the Right Moves Early in Your
Page 8 and 9: COVer | RAW MATERIALS STEEL USE ARO
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Page 12 and 13: shOP | PROFILE Kurt Workholding HuN
Page 14 and 15: Innovation and excellence create a
Page 16 and 17: MADE | IN MINNESOTA Bright (Solar)
Page 18 and 19: Industry Profile Iron range resourc
Page 20 and 21: Industry Profile Iron range resourc
Page 22 and 23: Competing on Value BREAkING THROUGH
Page 26: ManuFACTURERS’ | MARKETPLACE Tech
Page 29 and 30: MEMBER | DIRECTORY Lifetime Members
Page 31 and 32: MEMBER | DIRECTORY Ideal Aerosmith
Page 33 and 34: MEMBER | DIRECTORY St. Marys Univer
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