By Avanti Engineering
Avanti Engineering 2018 Recap and 2019 Outlook
Avanti has been busy virtually all year maintaining schedules by working overtime and hiring where possible. The market for skilled labor is tight and there’s not a lot of availability. Companies are hanging on to their employees due to the shortage of these positions. Avanti continues to work tirelessly to do whatever possible to hire and train the needed positions to increase out output both during 1st shift and second shifts. If you know of anyone with some skill on screw machines or CNC lathes including swiss please visit our Career Opportunities to complete an application or contact our H.R. department.
Avanti is looking at another record-breaking sales year surpassing last year 2017. Automotive Hydraulics, Electronics, Lawn & Garden are leading the way with most other industries also performing well. New part launches are now in full production and backlogs are robust. We continue to see extended lead times in most all areas of production with our CNC swiss machines leading the charge. Lead times of yesterday are no longer the case. It is not uncommon to see 10 to 12 weeks depending on equipment needed. Please get your orders in as soon as possible. Avanti will evaluate all orders at time of PO for best possible lead time.
Key Performance Indicators of 2018
- Approximately a 6% increase over last years posted sales of $16.5MM
- 2018 Sales will be the best in Avanti’s 46-year history
- 103% of our 2018 Sales Goal of $17MM
- Avanti will end 2018 with over 14 New Customers
- Avanti will end 2018 with over 89 New Jobs
As we started the year with uncertainty surrounding the proposed tariffs on steel and aluminum, we stood committed to manufacturing the same quality product our customers have come to expect. We focused our attention to the aspects of business we could control.
• New Equipment/Services- Avanti continues to upgrade our equipment where applicable. Avanti now has some in-house high-speed vision sorting capability. This has helped reduce the lead time from previous subcontracted services.
• Additional swiss style CNC lathes have been purchased and recently gone into operation for smaller diameter applications.
• Upgraded ERP software system has been implemented and proving better communication between Management, & production/ sales/customer service as well as updated & integrated estimating system which has built in efficiencies to reduce redundancy while improving quote turnaround and reliability.
• Additional multi spindle Davenports were purchased and in operation mainly to reduce timely setups of repeating work & not so much to run additional equipment. Operators and setup personnel are few and far between making it difficult to increase capacity. The reduction in setup time will no doubt be a positive for minimizing downtime and optimizing production while increasing department efficiency.
• Additional Acme & New Britain multi’s are in progress to replace some older machines
• CNC Multi spindle is also in discussion and may be coming next year. This will certainly help produce many more complex parts quicker and open up capacity for other existing machines for additional output. Stay tuned for this announcement
Tarriffs Impact to Manufacturing
Steel was the big change this year. 12L14 had the most impact due to its raw metal including lead additive being produced in Europe domestic mills would only cold draw the base metal to size including straightness. Average increase was about .12/lb. Copper and brass came down some from its close to all time high which gave some relief the second half of 2018. Remember all applicable metal Avanti purchases is purchased from domestic mills & is price in effect meaning it fluctuates with market demands & we typically do not lock in contracts with the mill. This poses some threat with increasing prices but also relief when material decreases. We appreciate all our customers support with regards to fluctuating market conditions
At this time, I have no reason to believe that Avanti cannot match or better 2018 sales in 2019. It will all depend on our capacity and if the economy continues to be robust. We will continue to be an aggressive sales department in 2019, yet still selective on the type of work we pursue and the partnerships we seek to establish.
Avanti Engineering would like to wish you a very Merry Christmas & Happy New Year. We realize you have many options when it comes to outsourced machined parts and everyone here appreciates your business, friendship and support. We look forward to improving all areas of our business and supporting our customers with the very best quality & customer service available.