windadmin posted on August 22, 2010 13:40
Dowding president: Manufacturing has future
Jeff Metts • President of Dowding Machining LCC
and Astraeus Wind Power LCC • August 22, 2010
Astraeus Wind Power
Type of business: Advanced manufacture ofequipment to machine cast components and construct carbon fiber components.
Background: Jeff Metts is president of Dowding Machining LLC and Astraeus Wind Power LLC.
History (When the company was formed and other items people might find interesting):
Astraeus is an off shoot of Dowding Industries, a manufacturing company in Eaton Rapids. Dowding has many core competencies such as fabricating, stamping and also machining. We had made an investment into the energy arena particularly very large machining just as the economy turned upside down. Companies are always in the process of improvement or in some cases when conditions demand, actually re-invent themselves. This quickly became one of those times, the story is interesting. We had invested over $9 million into a building and equipment to machine very large castings for the wind industry. We felt we could be competitive in this arena especially since the equipment we purchased gave us a slight advantage in the current market. As we took delivery of our newly built facility and our state of the art machines (around September of 2008), the wind industry began to exit the U.S. back to Europe and China where they could either find companies with many years of experience or very cheap prices.
Our facility sat like a ship at sea with no engine. This has a tendency to either elevate your creativity and marketing skills or stress your relationship with your bank. We decided we would charge rather than wilt. February 3, I sat up in bed with an idea for a new machine process that would insure that the production of the now departed components returning to the United States and hopefully Michigan for production. Problem was this process did not exist at the time of my early morning revelation. Consequently we contacted MAG, the nation’s largest machine tool builder, and presented our idea and asked them to help us revolutionize the wind industry worldwide.
I asked if the machine I had envisioned could actually be built, after a lot of discussion and computer analysis we decided that it could not only be built but it would indeed capture the marketplace for delivery of these components to the industry. We would cut the machine time from 30 hours to just over 4. In today’s manufacturing world this is phenomenal improvement. We felt no one in the world had the capability to compete with this process. We just needed to find the millions of dollars it would take to build this machine. After a very short conversation with our bank and being asked to take a drug test for even making the call, we decided to see if we could get any help from the government in the form of loans or possibly grants.
The next morning I went into my office and asked my sales manager if it is possible to call a Senator. He told me it seemed reasonable and he would get me the numbers of both Senator Levin and Senator Stabenow. When I called I told the person answering the phone I wanted to create hundreds of well paying jobs in Michigan, but I needed some help getting started. Surprisingly, I was able to meet with both Senator Stabenow and Senator Levin. Senator Levin actually came to the plant and wanted to better understand our process and capability.
Our idea had expanded by then to include other machines along the same lines of efficiency, but more importantly we were introduced to machines that built airframe wings and fuselage components for many military and civilian planes using Carbon Fiber technology. We decided to design a machine that would build wind turbine blades using this future technology. Now we were embarking on real material advances, machines that could create geometric shapes using carbon fiber -- stronger, lighter, much higher quality and actually smarter material than ever before. We could now impregnate this material with fiber optics and have "Smart Material.” This could not only change the way turbine blades are made but could make the leap to automotive, defense and infrastructure. This could be as revolutionary as when plastics entered the marketplace, except that this material could actually talk back to you. We could see stresses placed on these blades in real time reporting, predictable maintenance would be a simple reality and the list goes on.
After meeting with Dept. of Energy, Senators, Congressman, people at the White House, and testifying in front of Senate committee on energy, our idea was beginning to resonate. These were truly great inventions that could not only put Michigan on the map as the world leader in wind energy parts manufacturing. Michigan could lead the world in introducing Carbon Fiber as the material of the future.
We met with Skip Pruss at the state energy department and introduced our plan. Skip immediately took us to the Governor’s office. Governor Granholm believed in this vision and saw the long term positive impacts this could have on this state, not only in energy but in the future of material science advancements with carbon fiber applications.
We are now building two machines, one for the machining of the large components and another for carbon fiber applications for turbine blades. Since this announcement the interest in carbon fiber for many projects from boat manufacturing to automotive applications has sky rocketed. We also have a foundry co-locating to Eaton Rapids from Finland. This will be the first foundry built in the U.S. in the last 40 years and will produce castings 20% less cost than their counterparts in China. We will on-shore over 600 jobs, taking these jobs back from China. This employment number could double with the other component manufactures looking to locate close the foundry. , this is amazing progress, for not only Michigan but the United States.
Michigan has a tremendous opportunity to diversify into other industries and actually export these products around the world. This is what the power of ideas can create.
Size (Sales or number of employees or something that gives people a sense of the scale):
Dowding employs 140 people, Astraeus will begin hiring in July of next year when the machinery is delivered.
What’s the best advice you can offer entrepreneurs?
Fear only has the power you decide to give it, and, as you implement ideas the anxious feelings never go away
How important is a mentor, a coach or trusted advisor to your venture?
I have always had great mentors at all stages of my life. I could not imagine growing without them, but, I always brought my own motivation and vision
Did you develop a business plan? How did that work out?
I would love to sound real smart here, fact is I am just your run of the mill guy, so this is the real answer. This project very quickly took on a life of its own and the plan has evolved alongside.
How do you set priorities for your business?
This is easy, being a family owned business we try and make decisions that will create permanent good jobs for our employees, enhance the community and keep us profitable.
Tell us about the financial challenges, particularly capital, expenses and cash flow.
We see small signs of improvement; capital is not flowing very well yet, at least for small business. Aand as you know well, understanding and controlling costs are always paramount to success. If you are not a good money person, hire the very best you can find. There is a lot of great resume's out there, make sure your choice has actually been hands on and directly involved in successful decisions.
How do you attract the talent you need to be successful? Discuss team work as it applies to your business. Has it been difficult to delegate?
I don't have a problem delegating. Most of the people I hire are better at their job than I will ever be. It is getting more difficult to find great talent. Engineering and manufacturing skills are not seen as a future job path as they once were in Michigan. That is not the truth. People I talk with are always looking for great engineering help and exceptional talent in the labor force. It is not easy to find leaders and problem solvers. When you find them, trust them, and give them the ability to lead and occasionally fail.
How do you find customers who are willing to pay for your product or service?
Seriously, hard work, passion and drive, coupled with, a real understanding that you will deliver the best solution available. And the realization that you will never stop striving to improve.
How do you achieve balance between your business and personal interests?
I don't know if you can achieve balance. Usually you are forcing personal time into your life
What has being an entrepreneur taught you about yourself?
Now that is a book if I ever heard one. I guess that you don't have to be the smartest person around, just motivated and willing to work. A person of passion is very hard to stop.
Do you have an exit strategy?
Not really. We talk about ideas from time to time, but we are a family business and want to keep things together for the people who have given so much. We have employees that have been here for their entire working life.
What is missing in the region that can help you be more successful.
Vision, motivation and education on how to truly articulate an idea.