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INVEST TO BE BEST
Tall Order: This family-owned gear manufacturer strategically reinvests an average between 25 percent and 40 percent of annual revenue to keep business strong.

CEO Fred Young reinvests revenue to expand Forest City Gear's manufacturing capabilities and to maintain their reputation for staying on the leading edge of manufacturing technology.
FCG never waits until an order comes in to buy machines with enhanced capability. They already have it and have developed it, before they start exploring new opportunities - a real competitive advantage in a slow economy.
Young looks at a part coming off a Hofler Helix 400 SK gear grinder that uses a 20 mm dia CBN wheel for closer-to-shoulder tolerances on cluster gears.
Here Young checks out a piece on a Wenzel Gear Tec LH87 CMM with a rotary table to handle up to 900 mm diameter gears inspected and large bore to accommodate long shafts.

Forest City Gear was founded in Rockford, IL in 1955 by Evelyn and Stetler Young, parents of the current CEO, Fred Young. A classic family-run business, Fred operates Forest City Gear with his wife, Wendy, as well as their daughters and a son-in-law, who are all active in the business.

The company has invested over $6 million in the purchase of new capital equipment for the manufacture of gears, during the last 18 months. According to CEO Young, this reinvestment of revenue was made for a variety of reasons, primarily to expand the company's manufacturing capabilities and to maintain Forest City Gear's industry-wide reputation for staying on the leading edge of manufacturing technology.

"Our customers expect Forest City Gear to always lead the way in devising new production techniques to make better gears for them, at competitive cost and with superior service. That's a tall order, but it's one we welcome. Our track record speaks for itself in this area, as Forest City Gear has reinvested an average between 25 percent and 40 percent of our annual revenue for the last 30 years in the purchase of gearmaking machinery and ancillary equipment. In addition, we've made some major investments in green technology, over the last two years," Young also noted. 

He further explained the company's strategy in purchasing new, high-technology equipment at Forest City Gear. "We always buy high-end equipment, not only because it generally affords us higher quality, service and training from our suppliers, but also because we realize better performance, lower maintenance requirements, better trade-in value and more substantial depreciation allowances."

Young also commented that one impetus for these new purchases was the company's success in supplying many of the gears on the 2011 Mars Rover, a win achieved in part because of the previous investment in leading edge technology. "We never wait until we get an order to buy machines with enhanced capability. We already have it and have developed it, before we start exploring new opportunities. That's a real advantage for FCG."
Gene Fann, gear technology manager at Forest City Gear, joined Young in detailing these recent equipment purchases and the new capabilities that resulted from this substantial investment. These include:

• Gleason PSA 500 gear shaper with electronic helical guide to eliminate the need for helical lead guides; special face gear attachment (perhaps the only one in the U.S. currently) allows increased shaping capability, more prototype capability and shorter lead times, along with more accurate face gears, which in some instances can substitute for bevel gears.

• Gleason PSA 300 gear shaper with electronic helical guide and automatic column inclination, also accepting our face gear attachment.

• Fellows/Bourn & Koch MS450-125 CNC gear shapers with radial crowning and electronic helical guideless shaping.

THE FINAL FRONTIER

Space Cadet: Forest City Gear supplied many of the gears on the 2011 Mars Rover, a win achieved in part because of the company's previous investment in leading edge technology.

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Comments

Posted by Joe
(01/09/09 - 09:10 AM)
Nice article.



Posted by Bede Kortegast in Seattle, WA
(01/09/09 - 06:00 PM)
In a free market economy that we live in, the forward thinking that this company shows and actively implements is the only way to survive and prosper. Especially to weather this down economy.
A recognized problem that I believe many of us are finally admitting is that we have been living beyond our means. This includes machine shops owners that have invested in a new car, boat, bigger house etc. but not in their plant and equipment. When times are tough like they are now its to easy to point a finger at cheaper manufacturing from overseas, tight credit, labor costs etc. The brightest manufacturers among us will continue to invest and often more in these tight times as they so clearly stand out from their doom saying peers. Banks want to embrace them, the best and most productive employees want to work for them and the folks offshore cant compete as their ROI means they have to use old technology longer to turn a profit.