FABRICATORS MAKING TODAY S SKYLINE POSSIBLE. Eckhard Schulz, GM of Stewart-Amos and Steve Farrow, Peddinghaus N.E.

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1 FABRICATORS MAKING TODAY S SKYLINE POSSIBLE STEWART-AMOS STEEL CO: First and Twenty to Go If you know football then you know that First and Twenty isn't a good spot to be in but Stewart-Amos discovered that it worked out pretty well for them. First Beam Done and Twenty Years To Go.. The football season was winding down in late January, when Eckhard Schultz, General Manager of Stewart- Amos Steel Co, Harrisburg, PA, asked Steve Farrow, Peddinghaus N.E. Regional Manager to stop by. Stewart-Amos Steel was a pioneer in early automation having installed a Peddinghaus TDK Drill line on April 16, Visits by the Peddinghaus Man were not uncommon, but today would be more than just a chat about the upcoming Super Bowl and how big was their backlog. Continued on page 2 VALLEY IRON: Going to the Next Level Noel Briscoe (left) and Jay Phillips, Operations Manager Eckhard Schulz, GM of Stewart-Amos and Steve Farrow, Peddinghaus N.E. Regional Manager It doesn t matter what business you are in or the industry you participate or even the profession that you involve yourself. There comes a time when you have to make a sound business decision. Do you take the risk and enlarge the business? Do you set your corporate goals higher? Do you take on the added overhead costs to hopefully reap a bigger reward? See full story on page 5 The Fab Shop of the Future at NASCC Will Technology Change your Fabrication Shop? Peddinghaus Corporation was asked to address this issue by the AISC. Mr. Michael L. Sharp, President of Peddinghaus Corporation will serve as Moderator, and has assembled a blue ribbon panel of participants: Mr. Roy S. Eaton, V P - Operations, Central Texas Iron Works Waco, TX Ms. Amy McCann V.P. Sales, FabTrol Inc Eugene, OR Mr. Doug Evans, V. P. Sales, Design Data Inc. Lincoln, NE Mr. John J. Holland, Executive V.P. Structural Steel Systems, Hinsdale, IL Mr. Dean Elkins, Senior General Manager Motoman Systems, West Carrollton, OH More on page 16 The Steel Market is UP! IN THIS ISSUE Stewart-Amos Steel Co. First and Twenty 2 ValleyIron Going to the Next Level 5 THE BEAST Peddinghaus new BDL 1250C Structural Drill DG Band Saw Speed Through Production at an Economical Price 10 BIM for Beginners by Doug Evans, VP Sales Design Data 12 Tour Structural Fab Shops Peddinghaus Style Why not mix business with pleasure? 14 NASCC The FUTURE is NOW for all Fabrication Shops 16

2 2 STEEL FABRICATOR S REVIEW SPRING 2007 STEWART-AMOS: First and Twenty Continued from page 1 Stewart-Amos Steel was formed in 1976 after buying the assets of Goetz Welding Co. Their original focus was building structures and support steel for the quarry industry. They gradually evolved into a structural steel fabricator with annual capacity of 6000 to 9000 tons. The Peddinghaus TDK processed its last beam for Stewart-Amos in February. A Simple But Dynamic Corporate Philosophy Eckhard believes that Stewart-Amos philosophy is simple: find out what customers need, and see that they get it! By reacting immediately to changes and problems, Stewart-Amos maintains a tradition of repeat business. Eckhard says, Our customers know that they can count on our word. Making a Move at the Right Time We had just booked the largest job in the history of our company, Eckhard advised, and we knew the clock had been ticking a long time on our existing Peddinghaus TDK Drill line. Having recently completed such notable jobs as an 1800-ton design/build wind turbine blade manufacturing facility in Ebensburg, PA, a 9100-ton State Office Building in downtown Harrisburg, and the ton addition to Penn State s Beaver Football Stadium, meant that this new project must have been quite substantial. As we began fabrication we are not sure we would be able to sleep knowing that the existing TDK Drill line had gotten so long in the tooth. Not that we were having any unusual problems, noted Ron Barrick, Plant Superintendent, We just couldn t afford any major down time with this project. The Decision to Upgrade to a New BDL 1250 Drill Was a NO BRAINER Mr. Schulz reminded Steve Farrow of Peddinghaus that Stewart-Amos had no room for expansion and therefore needed to maximize their productivity in the same, limited space. The only way to accomplish this goal was through automation. The 20 year old TDK Drill was still running well, but with its age, the upgraded features now available, and the increased speed of the BDL-1250, the decision to upgrade was a no brainer. Working as a team, Peddinghaus worked hard to deliver a new BDL Drill line in time for the new project but only just in time! Removal of the old drill and installation of the new model needed to be critical. Transition from the old to the new drill had to be smooth, on time and without any delay in getting beams processing again. Maintaining Production without a Hiccup The new technology would arrive just a week prior to the start of the new project. An order was placed and while the Drill line was being built and tested in Bradley Illinois, planning was already taking place in Harrisburg. Running the last beam on the 20 year old Peddinghaus TDK Drill.

3 SPRING 2007 STEEL FABRICATOR S REVIEW 3 (L-R) Steve Farrow, Ron Barrick and Eckhard Schulz review Peddinghaus installation drawings for a smooth start-up at Stewart-Amos. A special meeting was held to discuss the removal of the Old TDK and installation of the new BDL 1250/9 line. Installation drawings, provided by Peddinghaus, showed both the old TDK foundation and the requirements for the new BDL. A heavy horseshoe shaped spacer was needed to raise the pass line, and could be fabricated in Stewart-Amos shop. The original thought was to exchange the Drill machines through the roof, but the Peddinghaus technical crew suggested that taking it through the wall would be faster and easier. Ron Barrick especially liked this because he would not have to put a hole in a roof that did not leak! The weight of the new BDL Drill line at 28,000 pounds presented another obstacle that was solved by hiring a local rigger. Everyone agreed that a perfect two minute drill would have to be executed to insure a win! Mother Nature Couldn t Stop Progress The following pictures show the complete story from the BDL 1250 construction in Bradley, Illinois. The BDL 1250 for Stewart-Amos departed the Bradley manufacturing plant in a record snowstorm on Thursday. It arrived in the same snowstorm (that headed east) on Friday. Steve Farrow stopped in two weeks later for the all important post game interview. Everything was running fine. There had been a brief stoppage of the drill coolant which was corrected with a phone call to the Peddinghaus service department. Al Sprandel, the main operator, was now very comfortable with the new Siemens Control. He had some initial apprehension because it looked kind of complicated in reality, it was not. He became very confident of the control unit, and liked all the capability it had especially trouble shooting. It starts with a mammoth frame Skilled Peddinghaus craftsmen assemble it. Then components are delivered for the BDL. Machine check-out and testing at Peddinghaus insures a smooth start-up at Stewart-Amos. Final paint it s almost ready. Ready to ship out in less than 3 weeks. Even Mother Nature couldn t stop progress. Continued on page 4

4 4 STEEL FABRICATOR S REVIEW SPRING 2007 STEWART-AMOS: First and Twenty Continued from page 3 Al had operated the old TDK for many years and was asked if this new line was faster. After careful thought he replied that it was easily 20% faster. It was especially fast on Jumbo beams and those with multiple hole sizes. Another feature that Al liked was the large coolant reservoirs. Removal of the old Drill was done over the weekend. Peddinghaus engineers designed the new foundation making rigging easy. The new BDL 1250 moved nicely into the same spot as the TDK Drill. Installation began on Monday morning. By Monday evening, the new BDL 1250 was in position. Peddinghaus Tech Bruce Hemphill (left) and Al Sprandel, operator. Al loading the first beam program into the control. Bruce assures everything is ready for first and twenty. The first hole Al watches the first beam run down the conveyor line Thursday morning. Everyone at Stewart-Amos was all smiles with full production on Friday. Eckhard probably described it best, I knew we had a winner after we processed the first beam. We were First beam down and 20 years to go! Now I know what it s like to be the winning coach in the Superbowl! he grinned.

5 SPRING 2007 STEEL FABRICATOR S REVIEW 5 VALLEY IRON: Going to the Next Level It boils down to this: You need to elevate your game to stay ahead of the competition. Valley Iron, Inc., Fresno, CA was founded in The current owners, Jim and Lee Anne Briscoe, took possession in 1983, and under their guidance, the company continued to thrive in the fertile San Joaquin Valley of California. The firm had seen steady growth, and the Briscoes needed to make that fateful decision that all entrepreneurs must eventually face. Do we buy that property and enlarge the business, or do we stay in our current position. It s not an easy decision for any organization and especially for a family firm, but there was one Valley Iron carries an extensive inventory of structural shapes. solid reason to expand. What s that magical reason? Pretty simple, stated the Briscoes, We wanted to take care of our customers. Thus, Valley Iron, made the investment of twenty acres of land nearby, and in the first quarter of 2005, moved their operation into a beautiful new steel distribution facility. The new facility is only a mile from their original location, but now consists of over 100,000 square feet of warehouse and office space. By the way, this new move gave them plenty of space for added processing capability. Computerized inventory automates the Valley Iron process. Processing Plate the Peddinghaus Way The Briscoes had a definite plan in place when making the expansion. The building construction included a new 12,000 square foot structure housed specifically for their machine tool prize possession a new Peddinghaus Powerhaus model FPDB 2500 Plate Processing Center. The Powerhaus FPDB 2500 combines multiple technologies into one machine, and combines multiple labor intensive tasks which are now performed by one, single operator. The machine can process plate up to 96" wide and up to 3" thick and any size in between. Holes can be punched with a hydraulic press, drilled with a high speed Siemens motor, thermal cut to any contour shape or length by Hy-Speed plasma or oxy-fuel, and a carbide part marking system to identify the part. The machine has a pass through design so plates up to 60 feet in length can be loaded, and the finished parts simply drop off the dump table at the end of the machine. Continued on page 6 Peddinghaus FPDB 2500 is already doing the job at Valley Iron.

6 6 STEEL FABRICATOR S REVIEW SPRING 2007 VALLEY IRON: Going to the Next Level Continued from page 5 Valley Iron s business has doubled since Invest Now or Sit on the Sideline Valley Iron, which grew to more than 65 employees over the last 20 years, is now ready to become a one-stop shop for steel work, according to Jim Briscoe. The company's business has doubled since 2003, which makes now the right time for the investment. Investing in the Peddinghaus Plate Processing Center is just another step to our growth possibilities, said Jim Briscoe. Nationwide, the growth in the steel industry distribution and construction has been solid. But for Valley Iron, the growth is due to customer demand. Briscoe cited that customer demand was the main reason for adding Plate Processing capability. What Used to Take Hours, Now Takes Seconds The Peddinghaus FPDB 2500 is fast and accurate it can process the largest plate part in minutes. This unique machine enables us to do things we could never do before, says Jim, In the past, we would have to take each step manually. But now this fantastic machine combines eight or 10 processes eliminating all the manual work. (L R) David Morales, FPDB 2500 operator, Steven Elliott, Programmer, Jay Phillips, Operations Manager visited Peddinghaus for training, and Anton Peddinghaus (back row). Adds, Steven Elliott, Programmer, Now, our customers can order exactly what they want; this is Peddinghaus latest model and the best technology available. Training at Peddinghaus Elliott and Jay Phillips, Operations Manager, and David Morales, FPDB Operator, all flew to Chicago for training at the Peddinghaus facility in nearby Bradley, IL. The group enjoyed their visit. Jay Phillips adds, The visit was very worthwhile. We learned a lot about machine programming and operation, but also excellent information on installation of the FPDB and processing plate more effectively and efficiently. Save Time, Space, and Money We installed the machine just inside our new building with the infeed conveyors in the yard. With a lot of our stock plate stored outside, we can easily load the machine with a fork truck and keep the machine operating. The FPDB is loaded easily with outside conveyors and convenient stock plate inventory. The FPDB delivery finished parts fast and accurate which means Valley Iron can better serve their customers.

7 SPRING 2007 STEEL FABRICATOR S REVIEW 7 Noel Briscoe (left) and Jay Phillips are all smiles when discussing the FPDB Plate Processor. I am amazed when I look at how much steel we can process in such a small machine footprint it is incredible, advises Jay. Take Care of Your Customers and They Will Take Care of You Making a big investment can cause a CEO or Corporate owner to lose many hours of sleep. But Valley Iron takes it in stride. The addition of processing will only increase their business. With a customer base that stretches from Stockton to Bakersfield and the Sierra Nevada Mountains to the Central California coast, Valley Iron is already established. Mix in their existing western regional business, and it's easy to see that Valley Iron is creating a recipe for success. The entire purpose of our expansion is to better meet the demands of our customers, states Jay Phillips, so we do everything we can to make their life a little easier. David Morales, the FPDB 2500 operator says with a smile, I m glad we have our Peddinghaus! A neat, precise installation, and with a top tier mezzanine it solves shop floor space issues. Contact Dial

8 8 STEEL FABRICATOR S REVIEW SPRING 2007 THE NEW BDL 1250C THE BEAST The Biggest, Fastest Structural Drill in the World! Take Your Business to the Next Level of Competitiveness! Take on those demanding jobs with tight deadlines! Considering that overseas project? Curious about a co-op job on a power plant? Thinking about that multi-story bid? Thanks to Peddinghaus' Engineers, you have a new weapon in your arsenal Put THE BEAST to work for you. Underside web marking expedites fit up and layout. A massive gear box and drive system provide pinpoint accuracy for any big application.

9 SPRING 2007 STEEL FABRICATOR S REVIEW 9 High speed drilling with 38 hp. Peddinghaus will make 2007 another benchmark year for the Steel Construction industry with the introduction of the NEW BDL 1250 nicknamed THE BEAST. Why did we name it that? Just look at the capacities and the machine capacity. You ll agree that it is the biggest, baddest drill line available in the world today. Columns or Fabricated Beams: No problem with 50x24" (1250x610mm) wide capacity Integrates with all Software: Powerful electronics package interfaces with all detailing and modeling software High Speed: 38HP (30Kw) high speed Siemens motors deliver unbelievable drilling speeds using today s sophisticated cutting tools Smart Spindle Technology: Superior technology designed for operator efficiency Full Beam Marking: Full identification with the Signoscript scribe system and underneath web marking of each beam. Siemens Electronics: Reliability, Serviceability service around the corner or around the world Decreased Maintenance: BEAST has a thoughtful design with many common parts as well as today s friendly electronics to keep your production on schedule. TYPE UNITS OF MEASURE BDL-1250/9C BDL-1250/3C MATERIAL PROCESSING SPECIFICATIONS Maximum section width inches (mm) 50 (1250) 50 (1250) Minimum section width inches (mm) 3 (75) 3 (75) Maximum section height inches (mm) 24 (610) 24 (610) Minimum length piece part inches (mm) 67 (1700) 67 (1700) Work piece weight max. pounds (kg) 43,800 (19867) 43,800 (19867) WEB AND FLANGE ASSEMBLY SPECIFICATIONS Maximum horizontal travel speed max. ft/min (m/min) 130 (39,6) 130 (39,6) Travel speed - web max. ft/min (m/min) 66 (20,1) 66 (20,1) Travel speed - flange max. ft/min (m/min) 66 (20,1) 66 (20,1) CONTROL INFORMATION Control type Siemens CNC Siemens CNC PHYSICAL MACHINE SIZE DATA Machine Dimensions approx. inches 124 x 95 x x 95 x 248 (Height x Width x Length) approx. (mm) (3150 x 2415 x 6300) (3150 x 2415 x 6300) Weight approx. pounds (kg) 28,000 28,000 DRILL SPINDLE SPECIFICATIONS Number of drill spindles 9 3 Drill spindles per axis 3 1 Power per spindle Hp (kw) Standard 38 (30) Standard 38 (30) Spindle travel inches (mm) 11-13/16 (300) 11-13/16 (300) Drill spindle rapid advance speed inches/min (mm/min) 240 (6096) 240 (6096) Variable feeds (individually for every spindle controlled by CNC) inches/min (mm/min) 1-12 (25-300) 1-12 (25-300) Speeds Controlled by CNC RPM Min.- Max Drill diameter * min - max inch (mm) 5/16 to 2 (8-51) 5/16 to 2 (8-51) * Drill Spindles have replaceable ends that must be specified when the machine is being built. Available in #4 Morse Taper or a Komet Style (#63 on Medium and Fast Spindles and #80 on the Slow Spindle). Signoscript identification carbide marking. A Peddinghaus standard for 14 years.

10 10 STEEL FABRICATOR S REVIEW SPRING 2007 SFR 1100 DG BAND SAW Tough New Miter Band Saw Speeds Through Production at an Economical Price! Today s Architectural Designs Demand Miter Speed and Accuracy! We ve been listening to you, Mr. Fabricator. The steel construction industry is seeing more and more challenging designs by today's architects. Also, Green Design means environmental friendly buildings with lots of angles, taper, slopes, and inclines. If you thought designs for schools, churches, and public buildings were unique before, just strap on for the future! With a 44" capacity, the DG 1100 is the fabricator s choice for steel construction.

11 SPRING 2007 STEEL FABRICATOR S REVIEW 11 A rugged motor and gear box means fast, accurate band sawing. Miter up to 60 degrees right and left with precise confidence. Speed Sawing Increases Shop Floor to Floor Time by 20%! Peddinghaus Corporation, the acknowledged global leader in technology for structural steel and heavy plate processing is pleased to announce another stud to the thoroughbred stable of productive Peddinghaus band saws. The popular DGP miter band saws and model 510 series straight cut saws are the backbone of Speed Sawing Technology, introduced by Peddinghaus to the structural market in Speed Sawing technology has taught the industry that a fast, accurate saw running at full speed can INCREASE overall shop throughput by over 25%. What separates an economical Peddinghaus Band Saw from the rest of the miter saws on the market? Here are a few things to consider on why the new 1100 DG Structural Band Saw from Peddinghaus is a Great Buy: Full Miter Capacity: Machine Base stays stable while saw head pivots up to 60 degrees right and left Huge Width Capacity: With a big 44"wide x 20" high opening, 1100 has the balls to take on any sized job. Big/Tough Blade: Rugged 2 1/8 x.063" thick blade assures hours of accurate, fast cutting. Auto Mist Blade Cooling: Today s technology means no flood coolant mess no clean up, freezing, smell, environmental or hazardous spilling or run-off on the floor. Linear Guidance Design: Provides a stable, smooth running design for years of operation and trouble-free maintenance. The perfect fabrication cell for progressive fabricators a DG 1100 miter band saw and the PCD 1100 Advantage drill line. CUTTING CAPACITY AT 90 (inches) CUTTING CAPACITY AT 45 RIGHT (inches) CUTTING CAPACITY AT 45 LEFT (inches) CUTTING CAPACITY AT 60 RIGHT (inches) CUTTING CAPACITY AT 60 LEFT (inches) MAIN SYSTEM VOLTAGE 44 Wide x 20 High Opening W40 x 328 W36 x 300 W14 x 730 Plate 40 x 6 x 20 Structural Tube & Pipe 20 Channel C15 x 50/MC18 x 58 Solid Material 44 Wide All Angle Iron Sizes 30.7 Wide x 20 High Opening W30 x 148 W14 x 730 MC18 x 58 C15 x Wide x 20 High Opening W27 x 178 W14 x 730 MC18 x 58 C15 x Wide x 20 High Opening W21 x 93 W14 x 455 MC18 x 58 C15 x Wide x 15.7 High Opening W14 x 211 W12 x 252 MC13 x 50 C15 x v/3ph/60hz MAX. WEIGHT OF SECTION TO BE SAWED 18,000 lbs SAW BLADE FEED RATES Rapid Advance Feed (ipm) 0-5 (mpm) Infinitely Variable Feed Rate 0-20 (ipm) (mpm) BLADE SPEED (fpm) (mpm) BLADE SIZE x 2.13 x.063 (inches) 9300 x 54 x 1.6 (mm) BLADE MOTOR HYDRAULIC UNIT MOTOR HYDRAULIC OIL PASSLINE HEIGHT MAXIMUM REMNANT PIECE OVERALL MACHINE DIMENSIONS (Length, Width, Height) NET MACHINE WEIGHT 10.2 HP at 60hz (7.3 kw) 4 HP at 60hz (2.8 kw at 50hz) 55 US Gallons (208 Liters) 25 (inches) without mounting pads 630 (mm) 1.2 inches (30 mm) x 50 x 96.5 (inches) 4404 x 1272 x 2451 (mm) 11,105 lbs (5,037 kg)

12 12 STEEL FABRICATOR S REVIEW SPRING 2007 BIM for Beginners by Doug Evans VP Sales Design Data The latest fad in construction software industry is the concept of Building Information Modeling (BIM). A simple definition of this as it relates to steel fabricators is a single model that contains all the information about a project. The fact that repetitive creation and input of data already available drastically impacts the productivity of the entire steel construction industry has made this a hot topic. Actual building models fabricated by Central Texas Iron Works using Design Data model software. All processed on Peddinghaus equipment. BIM platforms are turning into a struggle between the architect and engineer as it relates to who controls the information within the building. The reason it is an issue to the manufacturing component of the industry is the fact that the BIM platforms are most valuable when they contain the lowest level of information, which is the manufacturing data. When an engineer, architect, fabricator or owner is trying to obtain information from a model to make a decision, we all know there is a insurmountable difference between a model that is kind of close to one that is exactly close. The only people that have exact information are those who actually build the structure, windows, piping and other trades within a building. The concept of BIM and today s ability to implement BIM within steel fabricators are drastically different. Fabricators do not really benefit from just having the ability to store and show the information. The big need is the ability to create, share and use the information that is already available in the project. It bears repeating that redundant entry has hampered the growth of the steel industry for decades. Fabricators have been implementing various forms of BIM for decades. Automated Steel Detailing systems would create data as a by-product of creating steel details. This data was then shared with production control systems, material-ordering systems and with shop equipment. This reuse of information gave those fabricators a productivity advantage at that time. A decade ago it became popular to download information from various engineering software products into detailing systems via neutral files. The next concept to evolve was that of a steel project database and CIS2 quickly became the hot industry topic. CIS2 allowed for various project partners to read and write data to a common database. The latest craze is IFC, basically it is the architect s version of CIS2. The IFC s purpose is exactly the same as CIS2, to act as a project database, only to encompass more data and the entire project. As fabricators prepare for the next generation of BIM, the one thing that is important is that the software they choose should allow for various imports and exports of data to these BIM platforms. The software they use should perform the task they need (ordering, detailing, inventory) well and allow for this data to be used by others up and down stream on the project. That is the only criteria that makes sense when buying software. BIM platform software will continue to include more structural data, GIS data along with additional life cycle data to be retained and used by owners. As we watch BIM unfold, it is not paramount for fabricators to purchase BIM platform software but it is important to have software that will communicate with project partners. A Manufacturer s data brings the power to the BIM models. Keep in mind fabricators need software to create data, increase productivity and help project partners not software that stores data and shows it. The technology in the steel industry will continue to advance and fabricators are in a strong position in the BIM world if they understand how to manage, use and share data.

13 SPRING 2007 STEEL FABRICATOR S REVIEW 13 Thermal Processing for the 21st Century Peddinghaus Model BRF 500 A CONCEPT CREATION we call the RING OF FIRE will be unveiled at NASCC Booth Make sure you stop by and visit us! You do not want to miss this machine IT S AMAZING! THE INDUSTRY WILL NEVER BE THE SAME!

14 14 STEEL FABRICATOR S REVIEW SPRING 2007 Tour Structural Fabrication Shops Peddinghaus Style Special Pre-NASCC Fab Shop Tour of Louisiana Fabricators Many of you have heard about the recent movie Wild Hogs, in which a group of buddies decide to take a little motorcycle trip. The movie details some of their adventures along the way. How about you take your bike out of winter storage, get it tuned up, and head to the great state of Louisiana in April? If you don t have a bike, don t worry, we know a great Harley dealer (Harley Davidson of Baton Rouge) who will be happy to rent you one for the trip. Want to Visit Brazil in the Springtime? We know you are going to the NASCC April 18 in New Orleans so why not mix some business with pleasure? Peddinghaus is sponsoring a motorcycle trip of three structural fabricators in Louisiana April 14 17, The group will start in Baton Rouge, and head out to visit three of the top fabricators in the Southeast: April 16 DISTRAN PRODUCTS Alexandria, LA April 17 (am) SOUTHLAND STEEL Greensburg, LA April 17 (pm) PAX, INC Gonzales, LA Come Tour With Peddinghaus Mixing Business with Pleasure was Never this Good! Are you interested in learning more about structural steel fabricators who produce high tonnages in limited shop space where the difference between profit and survival is critical? See how Brazilian fabricators use new technologies in a global economy. Does the thought of visiting Brazil in the Spring of their year appeal to your senses? How about the thought of visiting Rio de Janeiro and Sao Paulo? How about visiting a country where technology abounds? Ethanol has been powering their cars for decades, courtesy of sugar cane. Does networking with other professionals in steel construction sound like an intriguing proposition? Past attendees have improved their business position as a result of personal contacts made. If you answer yes to any of these questions, Peddinghaus provides the opportunity for you. Our group will depart from Chicago this Fall for ten days of education, networking, and entertainment. The evening of April 17, we will return the bikes to Harley Davidson of Baton Rouge. We will arrange transportation to the NASCC in New Orleans for you. We ve made it all easy for you! Just kick back and enjoy the wind in your face as your tour the Sportsman s Paradise state of Louisiana. To reserve your space or for further info, telephone Rachel Lanoue ext 217 or rachel-lanoue@peddinghaus.com, and she will be happy to sign you up. Join Peddinghaus for this wonderful experience. Lifetime friends and business associates are formed while sharing a drink in a local pub, or exchanging ideas over dinner. In the competitive world of steel construction, having a friend in the business makes a real difference between profit and loss.

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16 16 STEEL FABRICATOR S REVIEW SPRING 2007 THE FUTURE IS NOW FOR ALL FABRICATION SHOPS The NASCC conference is always the highlight of the year for participants in the steel construction industry. The conference has grown in scope to encompass new innovations in machine tool and software technologies, along with the consistently educational meetings and discussions. A conference recently added to this years' meeting agenda was specifically requested by the Executive Board to address an area largely overlooked in the past: Improving Fabrication Shop Productivity. A stunning report by the AISC analyzes the lack of productivity and efficiency that pervades our industry in comparison to others. Thus, the Board took the initiative to address this issue at the NASCC conference. EXHIBITS April 18 20, 2007 CONFERENCE April 18 21, 2007 Ernest N. Morial Convention Center NEW ORLEANS The Fab Shop of the Future at NASCC The conference topic is entitled Will Technology Change your Fabrication Shop? Peddinghaus Corporation was asked to address this issue by the AISC. Mr. Michael L. Sharp, President of Peddinghaus Corporation will serve as Moderator, and has assembled a blue ribbon panel of participants: Mr. Roy S. Eaton, V P - Operations, Central Texas Iron Works Waco, TX Ms. Amy McCann V.P. Sales, FabTrol Inc Eugene, OR Mr. Doug Evans, V. P. Sales, Design Data Inc. Lincoln, NE Mr. John J. Holland, Executive V.P. Structural Steel Systems, Hinsdale, IL Mr. Dean Elkins, Senior General Manager Motoman Systems, West Carrollton, OH You will be surprised to learn of some innovations that fabrication shops will soon be integrating into practice. It will have a profound impact on the entire steel construction industry. The conference is scheduled for Wednesday, April 18th 2007 from 3:30 5:00 pm in Room 389 of the Convention Center at NASCC. Visit Peddinghaus in Booth #1013

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18 18 STEEL FABRICATOR S REVIEW SPRING 2007 Market s UP Lyle Menke A heart-felt thank you to all my industry friends and colleagues for your greetings and warm wishes after my recent surgery. I was overwhelmed by your kind gestures. Take a word of advice don t postpone the doctor visit again, take that medical test he s been bugging you about, try to eat a little better, and walk around the shop more often. The shop walk is good exercise, plus you may find something interesting along the way! The recent AISC Quarterly Report for October, November, and December 2006, reveals another solid year of progress for the Steel Construction industry. This compilation depicts the market improvements throughout the United States, and its impact on our industry. According to John Cross, AISC VP of Marketing We believe that growth in building construction in our primary markets will generate 2% growth in demand during According to a forecast recently published by FMI, additional growth of 10% is to be expected in the non-building market segment, which has a disproportionately high impact on demand for structural steel. If the 10% forecast is correct and additional 3% to 4% growth in demand could be expected. All indicators for steel construction in 2007 are just as great. Many firms are investigating new products that will not only make fabrication easier, but make them more competitive and profitable as well. More Proof of a Hot Market The website of the American Institute of Architecture depicts another strong year for the steel construction industry. This is based on the Architects invoicing or billing index the ABI. Peter Lisnic, Vice President, Senior research Analyst at Robert W. Baird & Co. added, Continuing the momentum established in the fourth quarter of 2006, January's ABI clearly supports the outlook for healthy growth in nonresidential construction markets in The strength of the ABI readings could even portend market growth above current consensus expectations, which may bolster investor appetite for stocks with nonresidential exposure. One question from January s readings might be whether demand in the residential sector has indeed reached an inflection point. *Every January the AIA research department uses a formula form the Department of Commerce that re-estimates ABI (Architect Billing Index) data based on seasonal factors resulting in a recalibration of recent figures. There are many projects looming on the horizon are you prepared to get your share? Peddinghaus has developed three new machines, some of which you will read about in the pages of this issue. A new drill line, a new economical miter band saw, and a Concept Creation our model BRF 500 we call it the Ring of Fire. All will be unveiled at NASCC booth Make sure you stop by and visit us, you do not want to miss this machine it s amazing! This technology is designed for you as your business changes, we adapt. Please take a minute to give us your thoughts on the industry. info@peddinghaus.com phone or fax We love to hear from you! What s Up In the Next Steel Fabricators' Review Issue? 1. We take a look at an historic fabricator in Oklahoma Builders Steel. Learn how the Noble family grew their fabrication business. 2. Peddinghaus Customer Service an interview with John Schilling, Technical Manager after approaching 30 years in Peddinghaus Service Department 3. Buying Automation You know you need to upgrade your equipment, but what is the best place to start? We'll give you 10 guidelines to help along the way. Builders Steel recently completed a 15,000 square foot expansion to make room for a new Peddinghaus saw, BDL 1250/9 Drill and conveyor material handing equipment. Builders Steel now has 9 pieces of Peddinghaus equipment.

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22 22 STEEL FABRICATOR S REVIEW SPRING 2007 Anton Peddinghaus In the past issues of the Steel Fabricators Review, I ve given you insight into Peddinghaus Corporation: our growing pains, our new product developments, our commitment to customer service, and our perspective on the industry. As Peddinghaus fiscal year ends March 31, I want to share something else with you. Something very unique and unusual for a privately owned family company: I am going to share some financial, personnel, and corporate data with you our readers and industry partners. Why? Because it is important for our industry colleagues to know they have a reliable source in the market. Peddinghaus remains a consistent provider who has been in business for 104 years and continues to THRIVE in the International Market. It s a Global Market: Our Exports Prove It You often hear from our European based competitors of their strength on the continent of Europe. In our year end financials, I am very pleased to report that 50% of Peddinghaus shipments go to the export side. As we all know, Peddinghaus is not the cheapest manufacturer of machine tools in the market. But many European fabricators are sick and tired of supposed bargain deals that end up costing them money. A quality product delivers years of productivity, with a dedicated service group standing ready with parts and technical advice. Many rivals talk a great game, but tend to disappear in the second half when the game is truly on the line. Our success in the overseas market clearly reveals the industry thoughts on Peddinghaus it s a wise investment, with good people backing them up. The Power of Peddinghaus is in its People I ve often spoken of our great employees. In many organizations, the people in the trenches get overlooked in the success of a company. At Peddinghaus, we truly understand how vital each employee is to our success. It is most gratifying to learn of the daily contributions, ideas, and suggestions from our people from our welders to our engineers everyone contributes to our success. And we have been successful, and in the wonderful position to add great new employees to our staff in both Bradley, IL and Andrews, SC. In fact, here s a departmental breakdown of new Peddinghaus employees in the past 12 months: DEPARTMENT ONE YEAR AGO TODAY CUSTOMER SERVICE ENGINEERING MANUFACTURING SALES ACCOUNTING 4 7 It seems like everyday, the media tells us of employee layoffs and jobs moving overseas. Peddinghaus is proud to employ over 100 new people in the past 12 months! Continued on page 24 Our new state-of-the-art customer service center is designed for you.

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24 24 STEEL FABRICATOR S REVIEW SPRING 2007 ANTON PEDDINGHAUS Continued from page 22 Our Engineers Listen to Our Customers In today s structural marketplace, architects are designing newer, more interesting structures. Structural fabricators need efficient machine tools to process these demanding fabrications in faster, economical methods. We ve been listening to our customers, and providing some help. I m very proud that in the past months, our Engineering and Manufacturing Groups have brought these new products to the market: New PCD 1100 multi spindle drilling machine the Advantage Speed Sawing Band Saws for both 90 degree and miter cutting New plasma plate processing lines featuring high speed drilling, tapping, counter-sinking AND high definition plasma cutting New Anglemaster machines featuring drilling and punching In this issue of the Steel Fabricators Review, you will learn of three new products that we are introducing to the market at the NASCC in New Orleans: 1. Our new BDL 1250 C High Speed Structural Drill The BEAST. Why call it the Beast? While being built, our guys looked at it and said, Man that machine is a real BEAST. It is typical Peddinghaus design BIG, STRONG, and FAST and electronically integrated with any BIM or Software design system. 2. Our brand new Concept Creation The Ring of Fire. The design essence of this machine has the capability of turning the entire industry on its head. Can t say too much more but it is definitely worth a look. Simply put, this thermal cutting genius is the future of structural fabrication in the world today. Any shape, any size, any fabrication one machine does it all. 3. With more designs requiring mitered beams for roof trusses and joists, we are introducing a new model DG 1100 Band Saw. This is a great band saw that is moderately priced to fit the budget of any sized fabricator. It is not a toy either, with capacity up to 44x20" at 90 plus 30x20" at 45 and 21x20" at 60 degree miter. Thank You, Mr. Customer, Thank You Thanks to our wonderful customers and partners, Peddinghaus secured an 8% net profit on sales of $85M this past year. I can tell you that I m not very popular with my fellow family members. The profit is not distributed to the shareholders we reinvest it all in the business! Peddinghaus is in it for the long term just like your company. THE BEAST model BDL 1250 is the industry benchmark for high speed drilling of all structural sections. There were many rumors about Peddinghaus four years ago, but these financials reveal the true story we are stronger and better than ever. It is very apparent that the industry prefers our business concept: Develop long term partnerships with your employees, your customers, and your vendors. Treat everyone with the respect they deserve, and your business relationships tend to flourish. I m looking forward to seeing you in New Orleans! If you can t make it, stop by Bradley for a visit. Give us a call, and we ll pick you up at the airport. We love visitors and the opportunity to talk shop. VOLUME 22 NEWS FOR THE STRUCTURAL STEEL & PLATE FABRICATOR STEEL FABRICATOR S REVIEW Washington and Grove Street Bradley, IL PRSRT STD U.S. POSTAGE PAID PERMIT NO. 157 Joliet, IL