Sister job shops carve niche the hard way

CINCINNATI Laser Cutting and its sister job shop Chattanooga Laser Cutting, seek the sort of demanding metal-cutting jobs that many larger companies are only too happy to let someone else do.

"Much of what we do is for customers who are unhappy with the results they have received elsewhere," said Eric Hill, a 36-year-old entrepreneur who founded and controls both CINCINNATI Laser Cutting and Chattanooga Laser Cutting. "We are problem-solvers."

That has meant that both companies are built on an aggressive approach to gain market-share by willingly accepting small runs or the types of jobs that other shops would prefer not to accept.

CINCINNATI Laser Cutting and Chattanooga Laser Cutting produce parts for satellites, transportation equipment, refrigeration equipment, ATMs, armored vehicles, street sweepers, recovery equipment, food service equipment, health equipment, the computer industry and more. They cut mostly carbon steel, stainless steel, and aluminum in thicknesses ranging from .001" shim stock up to ¾" plate steel, but they also process plastics, wood and even bulletproof Kevlar.

Hill attributes the two companies' confidence in tackling any job to the reliability of their laser cutting systems.

"I know that when I quote an order, I can deliver," Hill said. "My machines' dependability, reliability and versatility give me the confidence to price a job knowing that we will make great parts and ship them on time." The machines he depends on are from Cincinnati Incorporated.

Starting off fast

In developing plans to form the two companies, the niche Hill and his partners saw was prototyping and rapid turnarounds. "We knew that bigger companies do not want to fool with some of these types of jobs, but we knew we could do them well and efficiently and make money. Anyone can make money cutting 5,000 pieces of the same part. But, it is much more difficult making money cutting 50 pieces each of 100 different parts, with different materials. Our CINCINNATI lasers and press brakes enable us to do just that."

Chattanooga Laser Cutting began operations in September 1998. CINCINNATI Laser Cutting launched operations in April 1999. Both of the companies were profitable within their first year.

Major investments

Chattanooga Laser Cutting and CINCINNATI Laser Cutting were started from scratch with nothing but CINCINNATI equipment. Each company started with a CINCINNATI Laser Cutting System, a CINCINNATI Press Brake and a CINCINNATI Shear. "We already had a solid background with CINCINNATI equipment from previous experiences," Hill said, "so we had the learning curve beat."

Hill said he sees advantages in having equipment from one manufacturer. "I think it's better dealing with a single source," he said. "I know what to expect from CINCINNATI - quality, performance and service."

The installation of Chattanooga's first laser, a CINCINNATI model CL-7A was complete within a day. Even with Chattanooga's small initial workforce of four people, their experience and expertise gave them the confidence to bid a pretty difficult first job - laser cutting half-inch plate with each part having a dozen half-inch holes.

Chattanooga Laser bid against several established players and won the job. The part was manufactured for another steel fabricator that wanted a supplier to do it instead of themselves. "We ran at capacity for a full week on that job and our success with it established our reputation," Hill said. "For a three-month period we were running 24 hours a day, seven days a week, and our CL-7A did not miss a beat. The laser did a fantastic job right out of the gate."

"Our 2000-watt CL-7A laser is rated for ½" mild steel, but we have pushed the parameter wider," Hill said. "We can do 5/8" thick mild steel now and are learning to cut better every day."

Annihilating the backlog, fueling rapid growth

One laser, however, could not keep up with Chattanooga Laser Cutting's rapidly growing business. Sales volume doubled monthly for the first four months. Within a half-year after purchasing the CL-7A, the company bought a new CINCINNATI CL-707 laser.

Demand and Performance

CINCINNATI Laser Cutting, with employment approaching 30 people, currently runs two 10-hour shifts and has two CINCINNATI CL-707 lasers. Chattanooga Laser also runs two 10-hour shifts with 25 employees. Their CL-7A laser and their three CL-707 lasers are in operation over 85 percent of the time on average. About the only time the lasers are not in operation is for routine maintenance. "If our lasers don't run, we don't make money. It's that simple," Hill says.

"Our lasers can cut the same part within two thousands of an inch all day, every day," Hill said. "You know you can count on it every time. I'm going to be competitive because I can rely on these machines."

CINCINNATI Laser Cutting's newest CL-707 laser has a unique diffusion cooled resonator design, which produces a laser beam with exceptional mode quality, beam stability and full angle divergence of less than one milliradian. Its beam can be focused to a smaller, hotter spot than conventional resonators. This concentrated energy results in a cut with superior edge condition and a smaller heat-affected zone. "A good mode makes all the difference," Hill said. "But a nearly perfect mode can let you do things few other lasers can do."

Hill noted that with CINCINNATI machines, he is often able to get the order for nearly half the price of his competitors due to the CL-707's fast performance. "We did some research on a part for a customer formerly done by a competitor. We were able to cut the processing time nearly in half, from one half-hour to about 18 minutes.

"This was due to excellent processes on our part, and superior performance by CINCINATI," says Hill. "For example, our pallet change only takes us about 20 seconds on a CL-707. On some competitor machines, it takes one and one-half minutes. That may not sound like much, but for a big order it adds up."

Hill concludes that it all relates to the bottom line. "Finding ways to fully utilize our machines, and performing processes that save time and money, help us get customers and keep them. That is why I trust CINCINNATI."