Reviewing My Thoughts on a Hopeful Summer of Business


Earlier this year, before summer started I wrote a blog post about how the slower beginning to year was leaving us hopeful for a stronger summer to come. Well, now that summer is officially over and the verdict is in. Summer wasn’t so bad, but we had to work harder and be more creative than in years before.

The last few months have been busy for my father and I but we have learned that it is all relative when it comes to our business. The outside work that had kept us alive for years i.e. new construction furnace installations and air conditioning add-on’s and installs, have given way to more fabrication and searching for work that might be out of our niche. Because there are only two of us and the amount of fabrication work has increased, we feel busier than most of the other micro businesses in town working in our field. However, the money that is coming in is a bit lighter, is still paying the bills and keeping us functioning as a micro business but the stresses from month to month have increased.

We have had to do more searching and generating more business in different ways than we ever had before. For instance, we need to install gas piping when installing a new or retro-fit gas furnace, but we would not necessarily seek out a specific gas piping job. This year is different and we have taken some of those smaller type jobs to make up for the lack of new furnace and air conditioning installations. All of this has meant more focus on keeping costs in check and making sure that the jobs we take are worth our time and money. When business was booming we never had to worry about cash flows and if another job would be coming down the pike. The work was always there and we became more and more ignorant about running the business the right way.

Since the recession has started and looks to be here again, I have said and will continue to say that I have learned more about business in the last two or three years than in the first ten years of business. Never take for granted the good times because the rough times are always around the corner waiting to rear their ugly head. We as a micro business especially did not pay attention and we payed the price. Luckily, we are still around to learn from our mistakes and the ups and downs of the year are lessons to help us run a better business for ourselves and for our customers.

Visit Our Website at www.kesheetmetal.com

Photos of Some Recent Custom HVAC Fabrication

Here are a few photos of some recent fabrication that has left the shop. Business has been slower but not totally dead.

The first photo was an order for two 25 x 16 to 25 x 10 cold air boots (aka buffalo boots). These are as common as plenums and trunk duct when it comes to installing a forced air furnace. These are for a retro-fit change out in town.

The next photo is a basic plenum, customized with a flat top instead of a normal plenum style cap that would recess 1/2″ down inside the top of the box. The customer needed a flattened top for this particular installation.

The last photo is a small order of trunk duct and some small fittings.

Nothing fancy, just a few photos showing the kind of work we do on a daily basis. All of these items are custom made and are what keeps the shop moving along. We concentrate on the residential market consisting of smaller HVAC companies and homeowners with some work coming from very small commercial clients.

Check us out at : www.kesheetmetal.com
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Sheet Metal Prices Continue to Rise, Hurt Margins

Our input costs are quickly rising. The load of metal I received Friday afternoon was the highest metal has been in over three years and until oil and other commodities stop rising, I see no end. A 25% increase in our metal price since the end of the fourth quarter 2010 is a tough pill to swallow. This scenario is a killer for our business because
of how small we are and the type customers that we service. With business being steady to slow, the chances of just going out and getting more work is a fool’s errand at this point because it just isn’t there. Competition for jobs is tough and the bigger companies are cutting prices to keep their employees working and we just can’t compete in the bidding process. We live on the scraps from these bigger jobs and the less of them there are, the less scraps to go around.

A main advantage of being a giant corporation is that you can lock in costs when the opportunity presents itself and even hedge those positions if possible. This advantage is magnified in scenarios of rising input costs. This doesn’t mean that they are totally out of the woods when prices rise, but they definitely have a better chance of surviving than small businesses or micro businesses like ours.

As a micro business we can only afford to buy so much material at any given time, which can be challenging as it is. The most I may purchase in a given week is 40-60 sheets of metal, less when sales are slow. This is not near enough to lock in any type of pricing with supply houses who have order minimums and means that we are at the mercy of the current market. The fact is, we can only keep prices at certain levels for a small amount of time in these situations. These costs are passed on to the customer almost as soon as we see the prices start to tick upwards. As much as it hurts to do so and may hurt sales more, it’s the only thing a micro business like ours can do to stay alive.

We try to keep our customers as informed as we can in these situations and most are very accepting of why prices may be rising. All we can do at this point is track our costs closely and see where we can save some money and keep the customers costs down. However, without sheets of metal we have no business, so cutting costs elsewhere is a must and its what we will do if necessary. On the flip side and even more important, if we have no customers to buy that metal we have no business.

The next few months entering the summer cooling season should be interesting.

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Fabrication of a Custom Access Door Frame: Day 1

Here is what I am working on this afternoon. A customer needs a door fabricated to fit on this pre-made 12″ round fitting. So, after a bit of drawing and thought, I came up with an idea for a frame that I can fabricate separately and bolt on. Today was the day to build the shell of the door frame and map out where to cut the hole on the pre-made 12″ round Y-fitting.

Here is the pre-made fitting that
I will attach a door frame and door. The frame will be 12″ wide by 14″ tall and will wrap around the back side of the fitting.

Below is the template that I have cut for the top and bottom side of the door frame. I have left 2″ of material  so that I can bend a 3/4″ flange that will run along the inside of the frame. This is so the door that I fabricate later will have something to sit against when closed.

By the magic of pictures, the flat template has been bent into what will become the top and bottom of my frame. I will need two total of these and two total of  what will be the sides of the frame. Those are just basic flat templates with the same bend and flanges. I made an executive decision and left those pictures out.

Below is the finished frame which I will attach to the pre-made 12″ Y-fitting that was shown above. This is only the frame, I will later need to make a door that will fit inside and sit on the 3/4″ flanges around the inside of the fitting. All of the fabrication was done with bends and Pittsburgh joints. We do not weld anything at our shop. (except for stick pins used for insulating duct)

Now that the frame is complete, I will place it on the pre-made fitting so I can get my measurements for cutting a hole in the 12″ Y-fitting. The hole on the fitting will end up being roughly 10″ wide by 12″ tall. See photo below.

Starting tomorrow I will cut the hole and start to attach the door frame to the 12″ round fitting. This actual job order doesn’t need to be completed for a few days, so I am working on it in between other orders that need to be finished first.

These are the types of projects that break up the monotony of fabricating stock duct fittings and trunk duct. I will have another post to show the next few steps in a few days.

Check us out at: www.kesheetmetal.com

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Fabrication of Custom Exhaust Hood For Screen Printing Shop

Even though duct work is our bread and butter and what the majority of my work day consists of. We often get projects that are along the same lines, but just different enough that some extra thought and attention is needed. Case and point, the project I had for the last few days has been to fabricate an exhaust hood for a drying machine inside a small screen printing shop. I won’t even pretend to know exactly what the machine does, the customer drew up what he wanted and I am making it to those specifications. Simple. Here’s some pics.

Below is the wide shot of the hood. The customer wanted a rectangular box with pieces angled inside that would deflect the air to the center 4″ collar.There are no welds, everything is done with the Pittsburgh machine, break, hammer and rivets.

This picture just gives a clearer view of the depth of the piece and a look at the collar in the center. The total dimensions were 62″ wide, 6″ deep and 12″ in height with a 4″ collar cut into the top middle.

Here is a shot looking inside at the angled pieces that will deflect the air toward the center of the hood.  It’s tough to see, but I also added a 1/4″ 90 degree lip around the bottom edge for some stability. Even though the hood is for a smaller application, the width of the hood will make it weaker in the middle and prone to bowing or popping. The angle will give it just enough strength to keep it stable when the machine is running and keep any noise to a minimum.

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End of The Week Pin Action

One of my most hated tasks in this business is insulating duct work. I know that it is a necessity for some applications and obviously, more work means a bigger invoice. However, it is one of the most tedious of the jobs that I have and can eat up hours quickly, leaving me little time for other work. I know that it comes with the territory though and for the first time this year I have a full day of pinning and insulating. Any business is good business.

Filter Rack Installation Inside a Plenum

This morning I am working on a custom cold air filter box. Basically a plenum with a filter rack riveted inside. I fabricated the plenum and just finished installing the filter rack. Here are a few basic before and after pictures.

 Here are a couple pictures of the finished plenum without the filter rack installed. As you can see, I have left a slot in the plenum ( 1 1/4″ wide ) where the filter will slide in and out.

Next I have to fabricate the 1″x1″x1″ channel pieces that will become the finished rack inside the plenum. The plenum is a basic 16″ x 24″, so I will need two 23 3/4″ rails for the long sides and one 15 3/4″ rail for the short side. Notice I have subtracted 1/4″ from each rail. That is so the rails fit easily inside the plenum without any unneeded force, while allowing for movement in the plenum for easy installation on the job site. I have also cut some 45 degree notches on the 15 3/4″ rail so that when the filter slides inside, it won’t get caught on a bent corner of metal.

All that is left to do is rivet the sections of rail inside the plenum and the rack is installed. I usually start by installing the 23 1/4″ sections first and then slide the 15 3/4″ section down inside the other two rails. Now the customer can pick it up and install it on the job site. I have used some basic filter material in the picture to show how the filter would slide inside the plenum. I would not suggest using this as a filter for a homeowner. Buy some high quality filters that will last.