Skana Aluminum bullish on future

"Initial indications are extremely positive … we have customers chasing us," Robert Gamba, president and chief operating officer, said Thursday.

Thomas Testwuide Sr. is the chairman and CEO of the new company that spent $7.1 million this spring to acquire the assets of Koenig & Vits, which had in May 2009 ceased production at the Mirro Drive plant.

He said his investment stemmed from Gamba's assurance that the 50-year-old facility "is a little jewel that can be operated profitably, if properly capitalized."

Currently, the plant is undergoing major maintenance and equipment testing as part of a re-commissioning process.

Gamba said he expects about 50 mill production, office and sales employees to be on the payroll by Sept. 1.

"Lead time is running 12 to 14 weeks with existing players," Gamba said of the nation's other aluminum mills delivery timetables. He expects Skana to have about a four-week turnaround.

But, first, Gamba said the plant needs to build up production capacity.

Gamba said the Manitowoc plant uses direct chill technology, such that the aluminum solidifies quickly and is of high quality for customers seeking to stamp a multitude of items.

The former chief strategic officer at Koenig & Vits said the Manitowoc mill's equipment is not unique, but is the "Rolls-Royce of technology."

Gamba's optimism is echoed by many respondents to an "Economic Snapshot" conducted by the Engage Business Program of the Economic Development Corporation of Manitowoc County.

"As 80 percent of a local economy's growth comes from existing local companies, it is vital their success is assured," said Diana Schultz, the EDC's director of business assistance.

She said volunteers from Lakeshore area private and public organizations meet with company officials to assess their wants and needs. The EDC and its partners follow-up.

"Secondary to building these relationships is data collected highlighting trends and issues in the Manitowoc County economy," Schultz said.

She said individual company information is kept confidential. Information is reported on an aggregated basis.

Manitowoc County companies surveyed between summer 2009 and spring 2010 represent about 3,600 employees with some $360 million in sales.

Among the survey findings were:

.58 percent of Manitowoc County companies projected sales growth up to 9 percent in the next 12 months, compared with 41 percent of northeast Wisconsin companies anticipating similar growth.

.In the next 12 months, 31 percent of county companies projected hiring employees.

.Manitowoc County employers are slightly more optimistic about the current business climate, and significantly more optimistic about the business climate five years from now than their regional counterparts.

.Specifically, 83 percent of Manitowoc County businesses believe the economy will be better in five years than now, compared with 69 percent of Northeastern Wisconsin businesses.

Schultz said business climate is an overall impression of the economy related to work force quality, work force availability, local government, local tax structure, state tax structure, workers compensation rates, economic development, recreational-cultural amenities, housing, K-12 education, four-year colleges-universities and technical colleges.

'Finally turned a corner

With the addition of 16,400 jobs between March and April 2010 — the largest monthly increase in employment in more than a decade — Wisconsin's economy may have finally turned a corner.

That is the perspective of COW — Center on Wisconsin Strategy, based at the University of Wisconsin-Madison.

COW's May "Job Watch" stated Wisconsin's job base still is 5.4 percent below pre-recession levels, but positive signs are fueling hope for economic recovery.

Since January, Wisconsin has gained 32,000 jobs. Manufacturing gained 3,300 jobs in April, following similar increases in the first three months of 2010.

The construction sector added 2,300 jobs between March and April, bringing the number of jobs gained since January to 7,200. However, construction jobs still are down 18 percent since the recession started in December 2007.