Restored Auburn Nebraska Plant Creating a Buzz as It Hits Its Stride

AUBURN, Nebraska — September 10 -- For a company that trains its workers to “Work like the tortoise, not the hare,” local employees at Ariens Co. sure make quick work of manufacturing outdoor chore equipment.

In the time it takes to mow the lawn in front of the company’s plant in the middle of town, about five riding lawn mowers roll off the production line inside — or one every 675 seconds.

“That’s from sheet metal to a product you can ride out on,” said Cliff Barley, director of operations for Ariens’ Auburn facility.

The Brillion, Wisconsin-based company purchased the plant and business from Auburn Consolidated Industries, which failed in 2007, and has hit a stride in the last year. Employment and production have returned to historically high levels while Ariens has worked to entrench itself among the greater Auburn community.

The company has manufactured and donated equipment for two disc golf courses in Nemaha County. Once a week, one of the plant’s manufacturing leaders leads a welding class in Falls City in an effort that is equal parts workforce development and civic stewardship.

And in late August, company officials announced a $25,000 donation to complete development and construction of a Nature Explore Classroom near the courthouse square downtown.

Auburn Mayor Scott Kudrna said the plant has always been “a stalwart of the local economy,” employing more than 200 people at its peak — but locals in this town of about 3,400 people have needed some convincing that Ariens would continue the tradition of the 88-year-old business.

When Auburn Consolidated closed briefly after going out of business in October 2007, it had about 125 employees. Ariens purchased it from financial stakeholders within a month of the closure, but it has taken time to restore the plant to its former status.

“Auburn Consolidated originally employed many more people than Ariens did and there was a lot of apprehension because we were dealing with a company that no one knew of,” the mayor said. “Families’ lives were shaken up by the closing and selling of the company.”

Fast-forward seven years and local employees are once again building outdoor power equipment. The zero-turn mowers are among the largest products being assembled and shipped out by workers here, and they’re also the newest.

Ariens officials in September 2013 relocated the product line to the largest manufacturing plant in Nemaha County from the company’s home base in Wisconsin.

Since then, employment at the local plant has grown about 30 percent to roughly 200 employees. Total production, meanwhile, has increased by more than 75 percent.

Now, the plant’s buzz around town has attracted employees both young and old.

At an April hiring fair, Barley said he recognized at least two former Future Business Leaders of America members from Auburn High School, where the company also has been engaged with teachers to help revamp the district’s vocational curriculum.

Kevin Raymond, the district superintendent, said improving how the school’s instructors prepare students for jobs is critical. That’s why it has also engaged with officials from the Nebraska Public Power District’s Cooper Nuclear Station — Nemaha County’s largest employer ahead of Ariens — as well as Magnolia Metal Corp. in Auburn.

“In the past three or four years, we’ve tried to build those connections within our community,” Raymond said. “Coming back here and making an impact in Nemaha County is now an option (for students) where maybe it wasn’t before.”

That option has been exercised by people who didn’t grow up in Auburn, as well.

Andy Whaley, a 44-year-old meatpacking industry veteran, moved back to the community about a year ago and had been commuting to Council Bluffs for a job at Tyson Foods Inc.

A newspaper ad for Ariens’ hiring fair in April enticed him to see what community members had been buzzing about. He was eventually hired as the plant’s night shift manufacturing leader.

“I remember starting in the meat business years ago, and that pride in what you’re doing on the floor was there,” Whaley said. “Here, every single person on the floor has that pride and it’s a standard.”

That pride extends beyond the walls of the plant’s manufacturing facility, thanks in part to both the plant’s legacy and its renewed commitment to the greater Nemaha County community.

The funds for the Nature Explore Classroom — a program of the Nebraska City-based Arbor Day Foundation and Lincoln-based Dimensions Educational Research Foundation — helped finalize a project that was years in the making.

The company has participated in local parades, and Ariens-built disc golf equipment was used to establish courses both in Auburn and at nearby Peru State College.

Bob Engles, a local real estate broker who was mayor of Auburn from 2002-10, said that kind of civic engagement reflects Ariens’ own legacy of family ownership dating to 1933.

“The talk of the town in 2007 was that someone would buy (the plant) for next to nothing and sell the equipment on a piecemeal basis and just leave us with an empty building,” Engles said. “Because Ariens is family-owned, decisions were very quickly made and we saw from an economic development standpoint that they wanted the building and the equipment and to maintain all the jobs they could.”

Even though the equipment Ariens manufactures is seasonal by nature — other lines include snow throwers, leaf blowers and stump grinders — the company’s philosophy aims for it to be anything but. It’s in the middle of an effort to maintain a fairly static level of inventory to buoy employment levels at what Barley calls a “sweet spot” of about 200.

“We keep our production level with total demand throughout the year. That stabilizes our workforce,” Barley said. “We don’t want to be that company that brings people in and whacks them up seasonally.”

Cole Epley         www.omaha.com

CPSC, Ariens Recalls Snow Throwers and Power Brushes

April 24, 2014

Recall Summary

Name of product:

Ariens and Sno-Tek Snow Throwers, Ariens and Gravely All-Season Power Brushes

Hazard:

A drive pulley can crack while in use and cause the auger/impeller or brush to continue to rotate after the clutch lever is disengaged. This poses amputation and laceration hazards to consumers.

Consumer Contact:

Ariens Company toll-free at (877) 740-7060 from 8 a.m. to 5 p.m. ET Monday through Friday or online at www.ariens.com click on “Recall Information” for more information.

Recall Details

Units

About 5,700

Description

This recall involves Ariens and Sno-Tek brand snow throwers and Ariens and Gravely brand power brushes. Ariens Compact and Compack Track Snow-Thro snow throwers included in the recall are orange and 22- to 24-inches wide. Sno-Tek model snow throwers included in the recall are black and 20- to 28-inches wide.

Power brushes included in the recall are Ariens and Gravely model PB-28 All Season Brush and Ariens 28-inch brush CE. The Ariens power brush was sold in orange and the Gravely in red. The snow throwers and power brushes have the Ariens, Sno-Tek or Gravely brand name printed on the product. For all recalled units, model and serial numbers are printed on a white label affixed to the lower rear of the product, near the wheel. Model and serial numbers included in the recall are:

Ariens Compact and Compact Track Sno-Thro

Models                        Serial Number Range

920013                        124912 - 125271

920014                        142966 - 143728

920021                        003089 - 006233

920022                        000531 - 000712

Ariens Sno-Tek

Models                        Serial Number Range

939401                        090112 - 090623

920402                        143967 - 146057

920403                        126501 - 127351

Ariens PB-28 All Season Brush and Ariens 28 CE Brush

Models                        Serial Number Range

921025                        040600 - 040660

921313                        040163 - 040174

Gravely PB-28 All Season Brush

Models                        Serial Number Range

921026                        040061 - 040079

Units with a black check mark on the model/serial number label are not included in the recall.

Incidents/Injuries

None reported.

Remedy

Consumers should immediately stop using the recalled snow throwers and brushes and contact Ariens Company for a free repair. Consumers should remember to never put their hands into the discharge chute.

Sold at

Home Depot stores and other authorized Ariens dealers nationwide from January 2014 to February 2014 for between $500 and $2,200.

Manufactured in

United States

Importer/Manufacturer

Ariens Company, of Brillion, Wisc.

Wisconsin Manufacturers Turn to Long-Term Temporary Employees

November 14 -- More manufacturers are gearing up to hire temporary employees, sometimes for jobs lasting many months, as they need the help but are reluctant to make permanent commitments.

Thursday, Ariens Co. said it was seeking 150 employees to build snow throwers and lawn-and-garden equipment in Brillion. Also, the company says it will hire another 150 people in January and February.

Some of the jobs could be temporary, but many new hires will stay on as year-round employees, said company spokeswoman Ann Stilp.

"The bigger challenge for us sometimes is our location," she said, since Brillion isn't a big town and residents also commute to work in Manitowoc, Appleton and Green Bay.

Recently, Harley-Davidson Inc. added 100 temporary jobs at its Menomonee Falls plant as the company prepares for the production of model-year 2014 motorcycles.

Harley says the employees have been hired for the work that runs from January until June at the powertrain operations on Pilgrim Road.

The company used staffing agencies and its website to recruit people for the jobs that pay roughly $16.75 to $23.30 an hour — similar to the pay scale at the York, Pa., motorcycle assembly plant that's seeking 400 temporary employees.

This summer, Harley completed its first year of seasonal surge production in York. That effort, also taking place at the company's other plants, is aimed at producing motorcycles closer to market demand, increasing manufacturing efficiencies and saving hundreds of millions of dollars in costs.

The company's plant in Tomahawk needs 60 more seasonal employees to work 10 months starting in January, said Harley-Davidson spokeswoman Maripat Blankenheim.

Wages at the Tomahawk plant are comparable with Menomonee Falls and the other plants, she said.

Some companies, such as outdoor power equipment makers, have long used surge production and seasonal hiring to build products close to demand and not carry excess inventory.

That's the case for Kohler Co., which hires seasonal employees to build engines in advance of the lawn-and-garden equipment season. In Waukesha, Generac Power Systems has used temporary hires to fill a glut of orders for generators after major power outages.

But more manufacturers are using the hiring strategy to fill year-round jobs while avoiding long-term commitments to employees, according to staffing agencies.

"Employers, especially Milwaukee-based manufacturing companies, seem to be favoring that because they're trying to get a handle on whether their growth will be sustained. Everybody is still in limbo about this economy. That's the bottom line," said Wendy Koppel, president and owner of Division 10 Personnel/AeroStaff, a Milwaukee staffing agency.

"Five years after the recession, this is the slowest recovery I have ever seen. One way employers are responding to this tentative feeling is they're opting for more long-term temporary employees," Koppel said.

Some companies use temporary hires as a way to try people out before they offer them permanent positions. It gives them more flexibility to fire someone if the job isn't working out or the work suddenly ends.

People hired for jobs that sometimes last only a few months should take the time they're with a company and get the inside track on permanent positions, said Jim Golembeski, executive director of the Bay Area Workforce Development Board in Green Bay.

"Even if you come in as a seasonal worker, companies are looking for people who stand out," he said.

A short stint at a manufacturing plant can be a way to sharpen your workplace skills and enhance your chances at getting permanent employment.

"One of the big problems with people who are out of work for a long time is their skills atrophy. It's a reason why many employers are reluctant to hire someone who has been unemployed for a couple of years," said Hank Cox, who recently retired from the National Association of Manufacturers in Arlington, Va., and is now a freelance writer on manufacturing issues.

"There's some good in it, and people adapt. But for most people, it can't be a good feeling to know their job is only for a few months. Overall, I think it's a negative trend that I hope doesn't become too prevalent," Cox said.

Rick Barrett                www.jsonline.com

Briggs CEO Opening Remarks During Recent Earnings Call

October 18, 2012 -- Todd Teske - Chairman, President & CEO

 

“Good morning everyone, and thank you for joining us today. As you saw this morning's earnings announcement first quarter consolidated net sales were $309 million, a decrease of $88 million or 22% from the same quarter last year. The adjusted net loss for the first quarter excluding the $5 million of pre0tax restructuring charges was $13.2 million or $0.28 per share. This adjusted net loss for the quarter is $8 million higher than the first quarter net loss last year of $5.2 million or $0.10 per diluted shares.

The increased loss in the quarter was essentially related to lower overall sales volumes and lower production volumes as we have made the necessary adjustments to lower production levels in order to control inventories. These lower sales and production volumes were partially offset by approximately $10 million of cost savings resulting from our restructuring efforts over the last year.

As we anticipated coming into this fiscal year, sales of lawn and garden equipment continue to be significantly impacted by drought conditions in many areas of the United States. For the 12 months ended in August, industry data show shipments of walks and rides decreased 3% and 1% respectively, bringing us to the lowest level of activity in this industry since 1983. For the quarter, industry data indicates walk mowers were down 8.5%. For July and August, rides were down 21.1%. The September ride numbers have not yet been released.

Channel participants have continue to monitor inventory levels carefully by reducing re-orders for the late summer and early fall in order to limit inventory carried in the next season. While we continue to believe that inventory levels in the channel are elevated compared to one-year ago, channel participants, including OEMs, retailers and dealers generally have been cautious to not add to inventory levels causing issues for next spring.

Macro economic concerns in Europe impacting consumer spending continued to impact our business in the first quarter as well. International shipments to customers for the European lawn and garden market decreased over 60% compared to the same quarter last year. Inventory levels in Europe continue to be elevated for this time of the year and channel participants remain cautious of our consumer spending and inventory commitments heading into the next spring selling season.

Shipments of snow throwers were also lower in the quarter compared to last year’s dealers and retailers had high levels of inventory left over from last year’s exceptionally mild winter; while not significant enough to offset the market declines in lawn and garden, there are some bright spots in the quarter. Portable and standby generator sales benefited from Hurricane Isaac; although, the total impact of Isaac for generators was not as significant of an event compared to Hurricane Irene last year. However, the outages this year continue to highlight the need for dependable backup electrical power causing our standby generator sales to increase nearly 20% in the quarter.

We continue to make progress on improving our market share of commercial engines, which are used in commercial lawn cutting, construction equipment and utility markets. We also continue to execute on our restructuring actions in new product development in order to increase the efficiency of our manufacturing operations and to introduce higher margin products. The actions we announced last year continue to be on budget and on schedule and are delivering the cost savings that we anticipated of $30 million to $35 million for the full fiscal 2013 year.

Lastly, we’ve had the opportunity to host over 400 of our Simplicity, Snapper and Ferris dealers over the past several weeks at dealer open houses, where we have showcased over 40 new product introductions to be launched at the dealers next spring. The reactions of our dealers have been extremely positive and our teams are excited to get these new products launched in the coming months.”

…Looking forward to the remainder of the fiscal year, we are reaffirming our fiscal year 2013 projections for net income to be in the range of $60 million to $75 million or $1.25 to $1.55 per diluted share prior to the impact of any share repurchase activity and cost related or announced restructuring programs in pension curtailment.

We continue to be cautious with respect to the magnitude and pace of the economic recovery both here in the US and abroad, both the level of sustained consumer confidence and the ongoing impact if any of the drought conditions in the US. We are projecting net sales to be in a range of $1.95 billion to $2.15 billion which takes into consideration lower sales of approximately $100 million due to exiting the sale of lawn and garden products to national retailers and lower sales of snow throwers in the current year due to adequate inventory in the channel going into this fall.

On a more encouraging note, housing fundamentals continue to improve which is projected to have a positive impact on future [mode] of sales. Our fiscal year 2013 forecast contemplates the US lawn and garden market being higher by 4% to 6%, assuming the current drought conditions do not persist in the next season. We are currently in discussions with all of our key customers regarding product lineups for the 2013 spring and summer selling season, and we should have a better idea of placement at our fiscal 2013 second quarter conference call.

Consolidated operating margins are forecasted to be in the range of 5.1% to 5.6%. The improved operating margins include the benefit of over $30 million of savings as a result of our restructuring activities announced in fiscal year 2012. Offsetting these savings is higher pension expense in fiscal year 2013 of approximately $12 million caused by lower discount rates used to value the liabilities of the plant.

We expect the remaining restructuring savings and the incremental pension expense to be incurred ratably over the remainder of fiscal year 2013. While we do not provide guidance with respect to our quarters, I believe it is important to emphasize a few factors that will negatively impact our fiscal second quarter as compared to last year.

First, second quarter fiscal year 2012, included significant generators shipments due to power outages occurring during the period. We do not include such storm activity in our outlook. Second, we have announced that we will take additional days off in our McDonough plant, control inventories and the tool to plant for the new product introductions that we mentioned earlier. This will negatively impact our production rates and fixed cost absorption.

And third, many channel participants are being cautious with building inventories ahead of the season. Accordingly, we will be closely monitoring our productions to maintain reasonable levels of inventory. Therefore, we believe there will be some shift in orders and productions from the second quarter into the third quarter and from the third quarter into the fourth quarter.

Having said this; all of this factors are included in our outlook for the full fiscal year. From cash flow standpoints, cash flows are estimated to be higher in fiscal 2013 due a higher earnings and additional cash generator from net working capital reductions of approximately $80 million to a $100 million primarily related inventory reductions partially offset by required contributions of approximately $30 million to our pension plan.

Lastly, we anticipate that capital expenditures in fiscal 2013 will be in the range of $50 million to $60 million.”

Manufacturing Rebounds in September

October 16 -- Ariens Co. in Brillion is looking for more workers to help it meet seasonal demands for snow removal equipment.

 

Diane Bluel, human resources manager at Ariens, said Monday the company has between 70 and 80 part- and full-time openings. Available jobs include low-skilled assembly positions to those requiring more skills including machinists, fabricators and welders.

“It’s for our seasonal ramp up,” Bluel said of the company’s job fair. The company, which as about 1,200 workers between its two Brillion plants, also held a job fair in the spring to fill seasonal positions at that time.

What’s happening at Ariens Co. reflects rebounding manufacturing activity nationally. The Institute for Supply Management’s September Index showed U.S. manufacturing grew for the first time in four months, buoyed by a jump in new orders and more jobs.

The increase is a hopeful sign that the economy may be improving after a weak stretch. The institute, a trade group of purchasing managers, said Monday that its index of factory activity rose to 51.5. That’s up from 49.6 in August.

The reading “will boost hopes that some of the recent slowdown in economic growth was just a summer phenomenon,” Paul Dales, an economist at Capital Economics, said in a note to clients.

Not all manufacturing sectors are reporting robust activity.

John Daggett, a spokesman for Oshkosh Corp., a maker of military vehicles and parent company of fire apparatus manufacturer Pierce Manufacturing, said the firm has felt the impact of government spending cuts.

“Municipal spending and tax revenues are still down,” he said. “As we all know, defense business is driven by contracts and future defense budgets are reduced.”

In the manufacturing survey, a measure of new orders jumped to 52.3, the highest reading since May. That suggests production will increase in the coming months.

And a gauge of employment rose, a sign that manufacturers may report a gain in jobs when September’s employment report is released Friday. Manufacturers shed workers in August.

Manufacturers also said they are facing rising costs for corn, fuel and several other commodities.

The improvement at U.S. factories comes even as growth is slowing overseas. Europe’s financial crisis has pushed many countries in the region into recession. Growth in emerging nations such as China and India has slowed.

China’s manufacturing sector shrank in September, according to a survey by a Chinese trade group. But its measure of factory activity rose for the first time in four months, to 49.8, from 49.2.

The U.S. economy grew at an annual rate of just 1.3 percent in the April-June quarter, down from a 2 percent growth rate in the January-March quarter.

 www.postcrescent.com

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