United Alloy ditches conventions—and business booms
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John McIntosh welds the edge of a 100 gallon fuel tank for a generator at United Alloy in Janesville.
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Maintenance worker Marty Hanthorn does a safety inspection of completed fuel tanks staged for painting at United Alloy in Janesville.
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Terri Roessler
JANESVILLE — What CEO Terri Roessler and her colleagues are doing at United Alloy in Janesville is considered heresy in the manufacturing world.
They’ve taken the gospel known as lean manufacturing and thrown it out the window.
And instead of being struck dead on their shop floor, they’re enjoying a 40 percent increase in sales, a 21,000-square-foot expansion and plans to increase the workforce by 32 people at an average wage of $18 per hour plus benefits.
United Alloy has 86 employees and manufactures diesel fuel tanks, generator frames and other heavy metal fabrications. Its customer list includes Caterpillar, Generac, Morgan Corp. and Cummins Power.
Business has been booming, in part, because of demand in the disaster recovery market.
“Ninety percent of our business is in power generation, and 100 percent of that is in backup and standby,” Roessler said. “Unfortunately, the disaster recovery market has exploded with all of the earthquakes, floods, tornadoes, etc.
“It’s sort of like being a funeral director: It’s unfortunate that these things happen, but it’s the service we provide.”
Responsiveness and timeliness are critical to serving the market, Roessler said, and that’s an area where United Alloy has sometimes lagged.
“I’m embarrassed to say that in November 2010 we had an on-time delivery rate of 42 percent,” she said. “The issue of time kept coming up with our customers.
“This November, I’m thrilled to say it’s up to 96 percent.”
How did United make such an incredible turnaround?
It eliminated the concept of lean manufacturing, which basically focuses on the elimination of waste and production costs that don’t immediately add value for customers.
Instead, United secured commitments from most of its major customers for future products.
“We’ve become part of their forecasting and visioning process,” Roessler said. “We’ve agreed to build the expansion, we’ve agreed to build the products and we’ve agreed to hold them until they need it.
“All we’ve asked for in return is their commitment to buy it. This goes against every aspect of lean manufacturing on the planet.”
United’s massive fuel tanks aren’t built and shipped in a day. They’re high-value, low volume products that take time to produce.
“In disaster recovery situations, our customers’ products are needed within minutes of the event,” she said.
United’s approach has allowed it to level out its workflow, which since April has been in production around the clock five days a week. The ebbs and flows of what typically has been a cyclical business are gone, as is costly overtime.
United’s expansion is expected to cost about $750,000. The city of Janesville is giving the company a $100,000 loan that will be forgiven if it hires 32 people in the next three years.
While United’s approach is novel, it wouldn’t be possible without the contractual buy-in from its customers
“I’ve been left holding the bag on handshakes, having to scrap $100,000 in inventory,” Roessler said. “It’s unfortunate that business has come to that, but ‘hope’ is no longer a management strategy.”
Nov 21, 2011 at 11:13 a.m.
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lol So after your 7 "short" years of working at a job a union fought for....were you allowed to go to school for 2 years completely free?
Nov 21, 2011 at 4:52 a.m.
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No. I was there for a short time and seen unions at their worst. Thank the Lord I now earn my money.
Nov 20, 2011 at 12:19 p.m.
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lol So if you worked at GM, doesn't that make you one of the fat lazy GM workers that made you go into the service because they gave you a headache?
Nov 19, 2011 at 3:39 p.m.
Nov 19, 2011 at 9:21 a.m.
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westorbust-The bulk of the work they do is for Generac.
Nov 19, 2011 at 7:58 a.m.
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I remember working for united alloy. I actually liked working there. but I was laid off so the son of an employee could have a job since school got out for summer...how nice huh.
Nov 19, 2011 at 7:45 a.m.
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You pubs crack me up. $100,000 of taxpayer money for 32 jobs in Janesville is good but a nationwide offer of taxpayer money to employ thousands to repair infrastructure is bad. Hypocrisy at its finest!
Nov 19, 2011 at 6:34 a.m.
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Corporate welfare !!!!!!! Shame on Teri Roessler for accepting $100,000.00 from the city of Janesville taxpayers, Shame on Janesville, for offering/giving it to them.
Successful companies should not be given handouts !
Nov 19, 2011 at 5:09 a.m.
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I really don't get some people. I lived and pretty much grew up here. I left here as a young adult and joined the military because I was so sick of the fat lazy GM employees that complained about everything at work and stomped their feet until they got what they wanted. How many family get togethers were all about GM and how the management was out to screw them. Sorry for my English but it was so childish it gave me a massive headache.
Now I see the same attitude by the public union supporters and workers. Stomp your feet until you get your way. I will cancel out one of your votes if there is a recall of a Gov. that is trying to balance a broke budget. Broke because of people like Doyle. I worked at Gm for 7 years. It took 4 years to get to full pay because the higher seniority "workers" gave that up in "contract" negotiations. So were lots of rightful grievances (tossed out by the union) to keep the worst workers. Gotta have them union dues. I see the same in teachers and state workers. Entitlement attitudes are sickening.
Today's work force is a performance based workforce. Wake up people. If United Alloy is employing people it is a good thing. Rock county is terrible for work. I have gone into the CNC field and all the work is definitely not here. Janesville should be happy to have any employers. No, you will not make $25 an hour for doing very little. I love my new career and am succeeding in a performance based workforce. And yes, I work when the Packers play. :P
Go Walker.
Nov 19, 2011 at 12:13 a.m.
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The heck with taxing people who have more than they need. Lets just sit back and hope for more natural disasters, which could potentially lead to more work for 2 area companies....Wisconsin economy solved!
Nov 18, 2011 at 9:29 p.m.
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Tommyboy, Wow. We should raid United Alloy because obviously the workers are being held against their will! Those evil capitalists! Stop the presses and grab the pitchforks its occupy Janesville time!
Nov 18, 2011 at 9:23 p.m.
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frusion wrote: "Also, I didn't see anywhere in the article that United Alloy accepted any government money to invest and grow."
Then you didn't read the article.
Nov 18, 2011 at 8:48 p.m.
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tommyboy1
Sorry if you didn't like it there, or got terminated, but obviously others have no problem working there.
Nov 18, 2011 at 8:19 p.m.
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I worked for United Alloy for several years, and I did not make $18.00 an hour. The vast majority of welders at Untied Alloy are making less the $16.00 an hour. Forklift drivers are making $10.00 an hour. I do not know where Terri Roessler is coming up with her numbers, but they are far from correct.
United Alloy has a very high turnover rate of it's employees. This is do to the lack of concern by Terri Roessler. Her mantality is "do it, or you do not have a job." The high pressures and long hours placed on the employees, leads to high stressed employees who are unsatisfied.
I find it sad that United Alloy does not care about the employees who make the company what it is. It is not one person (Terri Roessler), but a combination of everyone envolved with the daily operations of the company. It is shamefull that terri Roessler takes all the credit for what underpaid, unappreciated,and overworked employees do to make the company what it is.
I wish the Gazzette would interview the employees of United Alloy to see what their view of the compnay is.
Nov 18, 2011 at 7:58 p.m.
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taxandspend, you might have missed one or two? You didn't mention how unfair this is for the lazies that don't want to work. The hard workers at United Alloy are making them feel bad. Also, I didn't see anywhere in the article that United Alloy accepted any government money to invest and grow. What the heck?!?! This is down right anti-democratic for a company to grow with no government intervention! I hope they can sleep at night. SHAME on them. SHAME SHAME
Nov 18, 2011 at 5:56 p.m.
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Good for them. I don't think singling out one manufacturer that clearly, like Generac, is benefitting from an increase in disasters and crumbling infrastructure, as a shining example of why unions don't work.
Nov 18, 2011 at 5:49 p.m.
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A non union shop and 65% weld. Wow! Well done! I hope this company expands and continues to grow!
Nov 18, 2011 at 5:40 p.m.
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And NO union involvement. Hmmm.... me thinks they've got something here. Go figure!
Nov 18, 2011 at 5:26 p.m.
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Sounds like a good company, able to think a little outside of the box. I hope it works out for them in Janesville and the area.
Nov 18, 2011 at 4:43 p.m.
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Congrats to United Alloy employees, and also to their CEO!
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