Hilliard Corporation Powers Elmira and the World

107-Year-Old Company Makes Parts and Differentials Used In The OPE Industry

There are a few important items one needs to know about the Hilliard Corp., a family-owned manufacturing company located at 100 W. Fourth St. and 1400-1700 College Ave. in Elmira.

The first is there is no longer anyone named Hilliard involved with the 107-year-old company. The founder William Hilliard left the business in 1912 -- seven years after he established the Hilliard Clutch & Machinery Co. in a small brick building near the Erie-Lackawanna railroad tracks on West Fourth Street. The company is now run by the third generation of the van den Blink family.

The patented front-end differentials the company now makes, which transfer power from a vehicle's drive shaft to its wheels, are found on every four-wheel-drive utility and all-terrain vehicle made by the Polaris Company of Minnesota. Hilliard-made differentials are also used on products made by Toro, Ariens, Briggs and Stratton and MTD. Its clutches are used in refrigeration units made by Thermo King, also of Minnesota.

And finally, Hilliard industrial filtration systems, designed to clean the fluids that lubricate factory machinery, are used on the power-generating turbines made by General Electric, Siemens and Dresser-Rand. The filters are also used on the specialized machinery used by natural gas transmission companies.

"Anytime you flick a light switch or turn on the gas, it usually involves our products," said Jon Williams, a Hilliard vice president and director of its Hilco filtration division. "Our stuff goes worldwide; it's shipped to 50 to 60 different countries."

An Array Of Products

Hilliard's product menu, which includes a diverse selection of clutches, brake systems and fluid contamination control systems, is a very long way from the single product the company made in its early days. From 1905 to 1925, Hilliard's bread and butter was a device called a disconnect clutch, used to start and stop production equipment in the early days of the machine tool industry.

But by the mid-1920s, factory machines were built with their own individual motors. They no longer needed Hilliard's clutches to connect them to the centralized motor-and-belt system used to power all of the machinery in a particular factory.

With its lone product now outdated, Hilliard was about to go belly-up until it ventured into a new manufacturing activity -- building oil reclamation systems for General Electric.

The systems removed particles and liquid contaminants from the lubricating fluids that ran through GE's power turbines, allowing the fluids to be reused many times over.

Hilliard engineers eventually began designing their own line of industrial filtration products, which were tested and built in-house by the company's metal fabricators and machinists. The product line now includes a variety of portable and fixed industrial filters, vent mist eliminators which remove oil mist from the air and machine tool coolant recyclers. It's also commonplace to see many Hilliard filtration units hooked up to the machine tools the company uses to make its products.

All Hilliard filtration products are grouped in its Hilco division and account for about half of the company's business. The other half comes from motion control products, which are all designed by the company's engineers and used in a variety of applications.

For example, Hilliard clutches are used to control the large ventilation fans that circulate the air in the Lincoln Tunnel. A reconditioned version of its disconnect clutch is used on the merry-go-round at Eldridge Park.

A Growing Business

The Hilliard Corp. still operates out of its original building on West Fourth Street. But its metal fabrication and machining shops have grown to incorporate the area bordered by West Fourth and West Fifth streets, the Erie-Lackawanna Railroad tracks and North Main Street.

The former Moore business form building, at West Fourth and Magee streets, is where Hilliard industrial clutches are assembled and where its research and development work takes place. The company has also built a new addition, across the parking lot from the original building, where its filter cartridges are manufactured.

In early 2004, Hilliard purchased the former Hardinge property at 1400-1700 College Ave., which now houses its drive-train operations.

"In the 1980s, Polaris came to us for help in designing a clutch," said Jan van den Blink, Hilliard's chairman and CEO. "We did the clutch for them and it was used in their front drive ATV. Now, we provide Polaris with all of their front-end differentials."

In all, said van den Blink, Hilliard now incorporates about 353,000 square feet of manufacturing space, more that 75,000 square feet of office space and about 76,000 square feet of storage space. The company employs about 600 people -- 400 at its main campus and 200 at the drive-train facility on College Avenue.

Close to 80 people have been hired over the past two years, said Executive Vice President Steven Chesebro, and there are between 60 and 65 skilled job classifications, including welders, engineers, shippers and machinists, within the company. But like many other local manufacturers, it's getting harder for the company to find qualified employees.

"So we stay close to Corning Community College and (the Pennsylvania College of Technology) to develop a pipeline," Chesebro said.

Made From Scratch

In an era when many manufacturers assemble components provided by outside suppliers and sell the finished product, Hilliard designs and makes almost all of the components for its products from scratch. The exception is the external housings for the company's clutches, which are cast by an outside vendor but based on Hilliard's designs.

Otherwise, the raw material -- carbon steel, stainless steel and engineered paper for the filter cartridges -- comes into Hilliard's West Fourth Street campus, where it is cut, rolled, bent and welded into its final shapes. The company has recently purchased machinery that allows it to handle parts of its manufacturing processes that were completed by outside companies.

Hilliard is also in the midst of installing a second robotic assembly line at the College Avenue facility that will increase the efficiency and capacity of its Polaris product production. The project's targeted completion date is March.

"Doing as much as we can ourselves allows us to keep our costs down and give us a higher measure of quality control," said van den Blink. "We can design, test and build our own products and there aren't many manufacturers left who can do that."

  www.stargazette.com    

GE Capital Offers New Quarterly Research Paper on OPE Equipment Industry

HOFFMAN ESTATES, Ill., Feb 27, 2012 -- GE Capital, Americas has launched a new quarterly Industry Research Update for the lawn, golf and turf equipment industries in advance of two important industry events, the Outdoor Power Equipment and Engine Service Association (OPEESA) Annual Meeting taking place Feb. 26-29 in Phoenix, and the Golf Industry Show (GIS) taking place Feb. 29-March 1 in Las Vegas.

GE Capital will be actively participating at both events. Additionally, OPEESA attendees are invited to hear Micki Turner, a human resources director with GE Capital, speak about ownership succession planning on Monday, Feb. 27, 10:15 AM-noon. That will be followed by a panel discussion with industry leaders.

The initial research report shows that the outlook for these industries is increasingly positive. "From a macro point of view, general economic and consumer indicators are steadily improving, though from weak levels," said Serena Tse, a senior vice president and industry research manager with GE Capital. "Due to the mild winter weather in the Northeast, inventory turns have accelerated and financing volume is growing."

The full Lawn, Golf & Turf Equipment Industry Research Update is available here: 

http://www.gelending.com/CDF/DealerExclusiveNewsletter_02-20/docs/Golf_Turf_Update_1Q12.pdf            

         

GE Capital, Americas provides inventory and retail financing that allows lawn, golf and turf dealers to stock, market and sell a wide variety of equipment and related products from manufacturers. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. In addition, GE Capital's turn-key financing program helps get equipment into consumers' hands and offers dealers robust online account management tools.

New Format For GIE+EXPO And HNA Means New Travel Dates For All

GIE+EXPO (the Green Industry and Equipment Expo) is providing a day – Wednesday, October 24, 2012 – exclusively for dealers, retailers and distributors at this year’s tradeshow to meet one-on-one with exhibitors and preview the products featured at GIE+EXPO and Hardscape North America (HNA).

Exhibitors are being encouraged to “RE-Think Dealer Meetings.” Show planners are offering several incentives for suppliers to schedule their annual product introductions in Louisville during the days leading up to the show. Warren Sellers,

Show Director, said meeting rooms at the Kentucky Exposition Center will be available to exhibitors Monday through Wednesday, leading up to the show opening on Wednesday afternoon at 3:00 p.m. The only charge for the rooms will be discounted food and beverage fees and possible re-set fees.

There will also be opportunities for private product demonstrations outside the Kentucky Exposition Center (KEC) on Wednesday, and exhibitors will be able to offer hotel blocks for their dealers.

During a reception for dealers, retailers and distributors on the trade show floor Wednesday evening, October 24, exhibitors will have the option of hosting special events in their booths. On Thursday and Friday, October 25 and 26, GIE+EXPO and the Outdoor Demo Area will be open to all industry participants.

Sellers pointed out that dealers and exhibitors have requested exclusive time on the exhibit floor to talk about agreements and product pricing. In addition, exhibitors have requested access to meeting rooms while customers are in Louisville.

HNA, which will co-locate again with GIE+EXPO, will have the same schedule with distributors admitted on Wednesday and contractors included on Thursday and Friday.

Classes for all Attendees Start prior to Tradeshow Opening

This year dealers can provide their technicians with Power Pro Certification training at GIE+EXPO through the Equipment & Engine Training Council (EETC) and the North American Equipment Dealers Association (NAEDA). The 1.5-hour classes, which will be offered three times each on Wednesday, will cost only $30 each and will cover Basics in Electrical Diagnostics, Basics in Two-Stroke Engine Diagnostics and Basics in EFI Systems.

The Dealer Resource Pavilion will be open Wednesday through Friday offering products, advice and techniques to generate high performance. In the Pavilion, owners and managers can take classes offered by dealership-management guru Bob Clements. Tentatively, the subjects of these free classes include “Keys to Improving Technician Efficiency,” “Pricing and Flat Rating Service Work,” “Strategies for Improving Parts Profitability,” “Branding and Marketing Your Dealership,” “Developing a Successful Business Plan” and “Negotiating and Closing the Sale.”

The Interlocking Concrete Pavement Institute (ICPI), which sponsors HNA, will offer their HNA Distributor Program on Wednesday at KEC so hardscape distributors can participate in Dealer Day.

Although the trade show floor will be open Wednesday exclusively for dealers, distributors and retailers, others in the industry will have a variety of educational opportunities available that day in hotels in downtown Louisville. 

The Professional Landcare Network (PLANET) and Interlocking Concrete Pavement Institute (ICPI) will begin their Green Industry Conference (GIC) at the Louisville Marriott Downtown on Wednesday and continue it at KEC on Thursday and Friday. Their GIE+EXPO Workshops are being expanded this year to eight sessions on Thursday and Friday at KEC. 

The Professional Grounds Management Society (PGMS) will open the annual School of Grounds Management at the Galt House on Wednesday and continue through Saturday at KEC. 

ICPI will offer hardscape installer and technician training at the Hyatt Regency on Tuesday and Wednesday. Details of the education programs will be available in the coming weeks on each of the appropriate sponsors’ websites.

GIE+EXPO – the 9th largest tradeshow in America – is sponsored by the Outdoor Power Equipment Institute (OPEI), PLANET and PGMS. HNA is sponsored by ICPI and endorsed by the Brick Industry Association and National Concrete Masonry Association.

Online registration for GIE+EXPO will be open in early March. For more information about GIE+EXPO 2012 and HNA 2012, go to www.gie-expo.com          

Dealer/Retailer/Distributor Schedule  (Tentative as of 2/13/12)

Kentucky Expo Center

Monday – Tuesday, October 22-23

Meeting rooms available for exhibitors’ dealer meetings (Check with your suppliers.)

Wednesday, October 24 – Dealer Day

Until 3:00 p.m.: Meeting rooms available for exhibitors’ dealer meetings

8:00 a.m. - 2:30 p.m.: Classes for dealers and technicians

9:00 a.m. – 7:00 p.m.: Dealer Resource Pavilion open

3:00-7:00 p.m.: Exhibits open to dealers/retailers/distributors

5:00-7:00 p.m.: Floor reception for dealers/retailers/distributors and exhibitors

HNA Distributor Program. Schedule to be announced.

Thursday, October 25

9:00 a.m. – 5:00 p.m.: Indoor exhibits and Outdoor Demonstration Area open to all attendees.

Friday, October 26

9:00 a.m. – 5:00 p.m.: Indoor exhibits open to all attendees.

9:00 a.m. – 4:00 p.m.: Outdoor Demonstration Area open to all attendees.

Lackluster Winter Puts Pinch on Seasonal Sales

February 22 -- Most people are delighted about the unseasonably mild temperatures that might result in the warmest winter on record for the state (MA), but there is also a down side.

Stores that stocked up with snow throwers, rock salt, snow shovels, roof rakes and other winter inventory, expecting a repeat of last year's brutal season, still have a lot of those items.

“We have all that … way too much,” said Greg Stevens, manager of Robinson's Hardware in Hudson. Most of the big-ticket items, including about 35 snow throwers that currently range in price from $900 to $3,000, are expected to be discounted by March 1, he said. The rock salt and other less expensive items will be stored in a trailer for next winter.

Michael J. Klem, owner of the 64-year-old Klem's in Spencer, said that although a lot of winter inventory is still in the store, the winter sales season got a big boost from the freak Halloween storm, when 60 snow throwers were sold in two days. Some items left will be stored for next season. But coats, pants and some other winter clothing will have to be donated to the Salvation Army, he said.

Mr. Klem and other hardware store owners interviewed said they have never experienced such a mild winter with so little snow.

“I should complain. I should rather have bad weather for business. But I absolutely enjoy it. This is absolutely wonderful,” he said. “Customers are all looking for garden stuff, lawn fertilizer and seeds. They're all excited. They're ready to go. I hope we don't get disappointed.”

“This is a crazy season. It looks like we're not in New England. It's more like we're in California,” said Anwar Afrede, owner of County Line True Value in Brimfield. “We have shovels and rock salt left. We'll save it for next year. Next year we are looking for a normal season.”

Steve Gauvin, owner of Gauvin Supply Co. in South Grafton, said about a third of his inventory of snow throwers is still in the store. He has sold as many as 250 in a season. He said he will have to hold on to them for next season.

“It's just been absolutely horrible. We're affected by Mother Nature as much as the farmer is. It hurts,” he said. “We've had winters with very few snowstorms and we've survived them. But this is no snow at all. It is not good. And people's general attitude right now is even if it does snow, they're going to chance doing without. Winter is basically over as far as the snow business.”

Some of the large big-box stores such as Home Depot, and large chains, including Rhode Island-based Ocean State Job Lot, which sells closed-out items, are in better shape to deal with low sales of winter inventory.

Ocean State Job Lot, with 104 stores in New England and New York, began selling new winter products, including generators and snow throwers, this past year.

David W. Sarlitto, director of marketing, said that depending on the size of a store, leftover winter inventory is either stored at the store or sent back to the company's distribution warehouse in North Kingstown, R.I.

“A lot of our inventory continues to sell even outside the winter season … in the shoulder season, because the pricing is so good. Unlike a lot of other retailers, our pricing is pretty much rock bottom,” Mr. Sarlitto said. “Right now sales are good. But I'm hard-pressed to see when winter was supposed to begin. It certainly looks like it's over before it was supposed to begin. We've had some snow in northern New England. But compared to years past where we've had much more colder weather, snow has been less.”

Jennifer King, a spokesman for Atlanta-based Home Depot, said it will be interesting to see how much longer stores hang onto winter inventory because they are beginning to bring in spring items.

The interesting thing is that customers have been taking advantage of the warm weather to buy products to do inside and outside projects they would not normally do this time of year. Some of the projects include roofing, fencing, guttering, flooring, lighting and bathrooms.

Thomas Pechinis, manager of Jerry's Hardware in Worcester, said prices on remaining winter inventory are as low as they have been in a couple of years.

“I don't sell snowblowers, but we have plenty of shovels, ice melt and rock salt. Anyone who needs any of that stuff I'd be happy to sell it to them,” he said. “It's a little more challenging this year. But it is what it is. Overall business is OK, but not on seasonal stuff and we depend on seasonal stuff a lot.”

Donald Satterfield, president of Crandall Hicks in Westboro, the only authorized sales agent in New England for Ariens and Gravely, worldwide manufacturers of snowblowers and other lawn and garden equipment, said the extremely mild winter is having an unsettling effect.

He said the last winter's inventory shortage led to factories producing a lot more equipment this year and dealers ordering a lot.

Because of the October snowstorm, dealers did very well with saws, generators and snowblowers until mid-December, when things started to slow up because there wasn't the normal amount of snow anywhere in the world.

Since then, Europe has had colder weather and a lot of snow. But because of the continued lack of snow in New England, sales of equipment and repairs of snow plows and snow throwers have literally dried up for dealers, he said.

“Unfortunately, it's causing a severe cash shortage for many of them,” Mr. Satterfield said. “The landscaper, who generally takes advantage of plowing, sanding and snow removal, he's the same customer who would come in and buy equipment in the springtime. Dealers now are concerned their cash flow is going to be strained. No one knows what the spring is going to be like.”

Dick Gaumond, owner of Dick's True Value Hardware in Southbridge, said that in addition to the lack of business from the sale and repairs of winter inventory, the mild winter means hardware stores are not selling any plumbing to repair frozen water pipes.

“The one thing you can't predict is what Mother Nature is going to do,” he said.

 Elaine Thompson        www.telegram.com