What a week! On Monday, at the summer meeting of the Casting Industry Suppliers Assn., I listened to two presentations on the challenges and difficulties of managing a metalcasting operation — one from the second-generation owner/operator of a foundry, the other from a general manager with several decades of experience in ferrous foundry operations.
They described the everyday dilemmas of owning and operating a metalcasting operation. Among their ongoing challenges is working to maintain equitable advantages with casting buyers and product/service suppliers, both of which groups have become considerably more consolidated in the past decade — leaving less latitude to metalcasting operations, which have not consolidated to nearly the same degree.
On Tuesday I gladly took the latter gentleman’s invitation to tour his plant — an impressive layout, busy, engaged with their customers, and operated by some equally impressive people. It’s too little to say that was the highlight of my week; it may have been the highlight of my month for all the insights I took away from there.
Wednesday I came back to earth, or actually back to the office, where I reentered the daily routine. This includes a tedious tide of messages, reminders, and pitches; a range of projects slowing down or coming apart; and a constant feeling that time is running short to complete something that should have been done already.
Late Wednesday I got a call from a sometime correspondent who’s not happy with me or my past decisions. He’s a consultant who arranges deals for owners seeking to sell their mid-sized manufacturing businesses, and he writes essays describing the logic and strategy of such deals. His writing ability is fine, and I have no quibble with his business. It’s just that I’m not sure FM&T is the place for that discussion. Or, rather, the message behind that discussion.
Metalcasting operations get bought and sold frequently. In recent weeks we’ve reported a range of plant sales: a ferrous foundry, a chain of aluminum diecasting plants, and a holding company adding another asset to its group. I think such news is worthy, but I’ve never felt generalized commentary on the necessity or strategy of selling assets is the right way to fill our pages. We have clearer obligations to our readers.
The consultant objects that readers have responded well to his presentations, but that’s not too persuasive to me. I’m sure that a lot of other readers find discussions of plant sales are unsettling and unwelcome. I’m quite sure, because they’ve told me so, that some readers think such reports are bad for their business.
I’m still unresolved on this point, and I’d welcome readers’ opinions on it. But, I agreed to read his draft article, which I did for the first time on Thursday. As of today, I haven’t made up my mind about whether to run it in FM&T.
I’m sure some of the foundry operators and suppliers I met this week face much more difficult decisions on an hourly basis. This is a difficult time to have executive and operating responsibilities in the metalcasting business: there is anxiety in the air because of wholesale organizational and financial upheavals, even as mid- and long-term economic trends suggest a very positive future for the industry. Should they respond to pressure to ease current anxieties? Or, should they continue to plan, build, and sacrifice for future gains?
It’s like that every day. Every week.