FOREST CITY GEAR STORY

Measureable Results Begin with a 100 % Commitment to Investing

It all began in 1980 when Forest City Gear's Fred Young ignored his nervous stomach and purchased a Koepfer hobber at IMTS. The success of that initial higher technology machine opened the door and Young's eyes to the opportunities that come with increased productivity and quality.

The door was then open for the company's first CNC hobbing machine. Young was not convinced he needed such a wonderful device, but wine, gear machine salesmen and Herman Pfauter were more than he could resist. The benefits of that piece of sophisticated equipment put Forest City Gear on the road to high technology and its advantages (visit the Gleason showroom).

That started a run of measurable results beginning with a100% commitment to investing—investing in new equipment and technology and in his people. For the past 30 years, up to 40% of Forest City Gear's yearly gross sales has gone back into new equipment, technology and training. It's no wonder that the company is held in esteem as the gear shop with the most comprehensive capabilities in the U.S. and likely the world, having garnered a 2007 Top Ten Machine Shop rating by Penton Media's American Machinist magazine.

Young uses capital equipment acquisition as a strategic advantage and the payoff has been phenomenal, with gross profit margins exceeding 50% year after year. "Our customers have come to expect us to give them a higher level of quality than they specify and IMTS is the place we go to find, try and purchase the latest in gear cutting equipment and machining technology to do this," said Young.

In 2006, he brought more than 30 team members to IMTS to immerse them in the newest machines and processes and gain ideas to for increased efficiency and productivity. "If you want to stay ahead of the competition," said Young, "having the latest technology is the way to do it. Not only does it help you survive, it makes you thrive."

As a result of the 2006 IMTS research mission, Forest City Gear invested in a Sunnen SV-1005 vertical CNC honing machine. For bore-type gears, the company found automated honing provides tighter control of bore size, roundness, straightness, and finish. Forest City Gear customers noticed the difference in smoother, quieter, more efficient drives and as a result Forest City Gear is enjoying repeat business. "We always find ways to do more with less," noted Young. "The honing machine increased our productivity dramatically. On one gear we achieved a 50% speed increase along with higher accuracy."

IMTS 2006 was a natural extension of Forest City's success following earlier shows. At IMTS 2004, Young spent approximately $1 million on a KAPP gear and thread grinder that increased the company's O.D. grinding capacity by five inches, decreased I.D. capacity by over two inches and accommodated longer shafts than their older machines. And the new grinder uses the latest high precision CBN wheels that are increasingly demanded by customers today.

Another investment as a result of IMTS 2004 was the Drake GS: TE-LMCNC thread grinder that has allowed the company to offer thread grinding for very small parts and worms. "We constantly expand our manufacturing range to offer new capabilities," stated Young. "We don't wait for a customer to come to us with a job before we invest - we are always ready."

How a Small Shop Makes Big Investments

Young believes there are real economic advantages to equipment modernization. Forest City Gear experiments with various gear machine brands trying to identify the best machines for hobbing, shaping and gear grinding. Inspection equipment is used as an educational tool for setup technicians and operators to improve quality continually. Their machinery purchases are financed using cash flow, long term financing, trade-ins and extended payments.

"The question always is - how can you justify purchasing this expensive equipment when you struggle to get $45 per hour off your current machines?," said Young. "Three answers leap to mind. First, the new equipment is so much more efficient that $45 per hour can easily mean a 200-300% productivity increase on the new equipment - one new machine can replace three or four old ones. Second, new equipment allows us to solicit more complicated, higher margin jobs that few others can pursue. Third, we have proven that customers will pay a premium for quality delivered on time."

Forest City Gear trades in relatively new machinery (three to six years old) on brand new technology. Young has been successful helping finance new machines by running its own mini-gear school and showing potential used machine buyers how to cut gears. As a result other shops benefit from more current technology and realize the benefits of depreciation.

Forest City Gear's People Bring It All Full Circle

The company's investment in its people is as impressive as its equipment strategy. "Our objective is to have the best educated operators so the machines can be used to their fullest potential," said Young. He achieves this goal by using multiple resources.

Set-up engineers and technicians from the machine manufacturers are a constant source of education for Forest City Gear's operators. "These trainers spend their time in world-class shops around the globe, and we benefit from their sharing the experience of these benchmark manufacturers," he explained.

Young also sends his employees to gear schools in North America and abroad. They see how the machines are made and then learn how to get the greatest speed and quality from the machines. "There is no guessing about how these machines are intended to be used," Young continued. "We expose our people to the endless possibilities and they make the most of our investments. The result is a motivated, talented and dedicated workforce," he concluded.

Founded in 1955, Forest City Gear has grown from a two-person shop to almost 50 employees serving 1,000 customers. Specializing exclusively in high precision fine and medium pitch gear cutting and grinding, Forest City produces gears, splines, serrations, sprockets, ratchets, timing belt pulleys, worms and worm gears for a variety of industries, including aerospace, medical, automotive, computers, appliances, power tools and more. Forest City Gear has made gears for Spirit and Opportunity, NASA's two Mars rovers and is currently manufacturing for the rover's scheduled to leave for Mars in Fall, 2009.

Company Information

Forest City Gear Company
Roscoe, Illinois
815-623-2168 or 866-623-2168
www.fcgear.com

IMTS 2008 Exhibitors Mentioned in the Story

» Drake Manufacturing Services Co. - Booth B-7407, Abrasive Machining/Sawing/Finishing Pavilion, Hall B
» Gleason Corporation - Booth B-6902, Gear Generation Pavilion, Hall B
» KAPP Technologies - Booth B-6748, Abrasive/Sawing/Finishing Pavilion, Hall B
» Koepfer America, L.L.C. - Booth B-6907, Gear Generation Pavilion, Hall B
» Sunnen Products Company - Booth B-7200, Abrasive Machining/Sawing/Finishing Pavilion, Hall B