The TPR interviewed Steve Fagerlie, Marketing Director at TEAM Industries, which is headquartered in Bagley, MN.  With in-house tool & die building and die casting capabilities, TEAM Industries is a leading engineering and custom manufacturing company that specializes in advanced drive-train solutions and other technologically-advanced products, primarily for the off-road, recreational motorsports and automotive industries. 

What is your company niche, and what does your company do that is notable, unique or different?

TEAM Industries, as a whole, is a vertically-integrated company that designs and manufactures a variety of drive train components, largely for the off-road industry.  A portion of our work is design-engineered product; typically, an OEM will have a vehicle and engine concept and come to us to get the power from the engine to the tires.  While TEAM does not manufacture tires or complete engines, we manufacture everything in between.  Additionally, we’re able to design those products from concept through manufacturing.   

Another portion of our business is contract manufacturing.  TEAM Industries started 30 years ago with make-to-print work and continues to manufacture a variety of components for diverse customers.   

Our die cast operation is a key part of TEAM’s vertical integration.   Frequently, die casting is the first capability that attracts customers to TEAM.  With respect to die casting, our niche is complex, technical die castings that have structural, pressure-tight, or other critical functions.  Most of our casting projects include complex machining, assembly, or other secondary operations.  We rarely do ashtrays or cookware.  Rather, it’s pressure-tight and similar types of complex die castings that we specialize in. 

When and how did you get into the industry, what attracted you to it?

Prior to having our own die casting shop, die castings and tooling were our biggest outside purchase.  It was also our biggest quality and scheduling headache and that’s why we decided to bring it in-house.  Our first parts were cast in 1995 and we now run 10 diecasting work centers ranging from 500 tons to 1600 tons (locking force).   

Our Baxter, MN, facility was established in 2002.  The purpose of that shop is to manufacture tools & dies, as well as to perform prototype and short-run machining.  The thinking there was that if we internalized our own tool making it would give us more flexibility and a quicker response time with some projects.  We have definitely improved lead times in tool making, and our customers are happy about that. 

Relate a notable "best time" for your company (can be more than one).

In 2004, our die casting operation obtained its ISO certification.  This culminated a period of organization and alignment of activities to satisfy the requirements of a more and more diverse customer base. 

A second notable change that is still ongoing is our effort to integrate machining and other secondary operations with our die casting plant.  This effort to close the loop on the casting finishing operations is  something that started several years ago,  Having a machining center side-by-side with the die casting operation has given us the ability to obtain instant feedback on casting quality, gets us closer to the advantages of single-piece flow, and makes us more responsive to customers' needs. 

Similarly, relate notable challenges that your company has overcome. 

On several occasions we have been able to help our customers convert components to die castings or combine the functions of multiple parts into one die cast component.  One such notable project involved a large ATV gear case that started in production in 1995 as a 30 lb lost foam casting.  (Lost foam is frequently used for large, heavy-walled structural castings.)  We converted this case to a die casting in 2000 that is still in production.  At the same time, we installed our first 1600-ton work center.   

A second recent success was another gear case project that started up last year.  In this case we were able to combine the function of two separate pieces into one large casting.  We were able to re-engineer the products, combining a CVT cover with half of the gear case all into one housing.  The casting provides a more rigid assembly and structural tie between the engine and transmission and saves our customer assembly time and money.  This massive die was also designed by our casting engineers.  

When you are working on projects with your customers, what aspects would you like them to better recognize?

We pride ourselves on the fact that we can offer services in virtually every stage of a product’s development.  Some of our customers are only familiar with one of our facilities or a few of our capabilities.  They may be unaware of our ability to take a concept from initial design all the way through to market.  We try to make our customers more aware of the diverse talent and experience of the people at all of our plants.

List newly acquired technology, machinery or key personnel (in last year). 

Most recently, in die casting, we have continued to add more and more CNC machining capabilities.  We’ve also added a central vacuum system for critical components requiring pressure-tight castings or structurally sound components.  Third, we also are continuing to develop squeeze cast processes for components that require enhanced mechanical properties.  This advanced casting process requires specialized techniques and tool design and results in nearly porosity-free, pressure-tight die castings that also can be heat-treated or welded. 

Has your company recently expanded?  Plans to expand or form partnerships/alliances?

 At the die cast shop we added about 30,000 square feet in 2004 and the plan is for a similar addition this coming year.  Five months ago we added our 10^th die casting machine (the third 1600-ton work center).  Another area for future growth here is in the high tonnage machines for manufacturing larger parts.  There are not many non-captive companies in North America that have the size and type of machinery that we have. 

In terms of alliances, we of course work with a number of local toolmakers besides our own shop, and we have sourced some dies from China.  We have two shops we’ve located there that are capable of turning out the quality tooling that we require.  We’ve had about 8 dies made over there so far and will probably source another 8-10 this year.  We’re also looking at India as a possible source in the future. 

Are you involved in any industry organizations or educational programs related to the trade?

We are active members of the North American Die Casting Association (NADCA) Chapter 16 in Minnesota.  We’ve had people get their certifications through NADCA’s Train the Trainer programs.  All of our die cast equipment is made by the Bueller Corp, where they also offer training on machine usage and maintenance.  Our design engineering group is a member of the Society of Automotive Engineers (SAE) and we attend several of their conferences.

What do you think about changes occurring in the industry due to globalization?  How has it affected the way you do business?

Globalization certainly has increased competition for us and has put quite a price squeeze on us in some categories of castings.  It’s caused us to spend more money on machinery so that we can focus on the larger, more complex castings to compete.  The smaller cast items will all end up overseas.  So we try to specialize on castings that require larger machines and then the very complex castings that require a lot of value-added secondary machining operations and similar services. 

On the other hand, finding tool making sources in China has been a benefit to us because we can take some costs out and reduce lead times by up to one- third.  The ability to beam over a model or complex die print is getting better all the time.  The competition from overseas is not going away.  You have to use them when it’s appropriate and, at the same time, compete against them.  Our initial moves to go to Asia were pretty much on our own, but subsequently we have had customers that almost demanded that we shopped tooling over there.  For example, we work with a number of Japanese OEMs in the ATV industry and they strongly suggest that we shop either in Eastern Europe or in Asia for tooling.

What will the industry look like in 3 to 5 years?

I think there is going to be fewer die casters in North America. There are about 180 firms now, but due to overseas competition they’re going to reduce in number.  More of the die casting work is going to go overseas.  Captive shops or those like ours that are part of a larger, integrated company will be able to survive, but the smaller, independent shops are going to have a more difficult time.  Similarly, on the tool & die end of things, we think tooling is going to move swiftly overseas and put a number of those shops out of business in this country.  The companies with short lead times and value-added services are the ones that are going to make it.  That’s the short-term vision.  In the long run, we have to recognize that China is quickly becoming a consuming nation and they will be looking for more products and services and that could create more opportunity for U.S. manufacturers. 

Additional background information:

Number of years in business:  39

Current total square footage :  approx. 900,000 

TEAM Industries - Detroit Lakes

• ISO 9001:2000 Certified
• Location: Detroit Lakes, MN
• Established: 1995
• Services Provided: Die Casting and Squeeze Casting.
• Internal Support Capabilities: Modern Quality Control Department

TEAM Industries – Baxter

• Location: Baxter, MN
• Established: 2002
• Services Provided: Short-Run, Prototype, Tooling and Service Parts
• Internal Support Capabilities: Modern Quality Control Department

Additional locations:  There are seven facilities total including the die cast tooling and casting facilities listed above.  Other facilities are as follows:

TEAM Industries – Cambridge

• ISO 9001:2000 and 14001 Certified

• Location: Cambridge, MN
• Established: 1967
• Services Provided: Turning, Milling, Thread and Spline Rolling, CNC Hobbing, Grinding, Assembly and Magnesium Machining.
• Internal Support Capabilities: Modern Quality Control Department, Material Lab
• Facility, Tool and Fixture design and build, Non-Destructive Testing (Magna Flux, Eddy Current, Ultra Sound)

TEAM Industries – Audubon

• ISO 9001:2000 Certified

• Location: Audubon, MN
• Established: 1983 
• Services Provided: Parallel axis and cross axis gearing, Turning, Milling, Broaching, CNC Hobbing, Gear shaving, Gear Honing, Spline Rolling and Assembly.
• Internal Support Capabilities: Carburizing Heat Treat Facility, Metallurgical Lab, Tool and Fixture Design and Build

 TEAM Industries – Bagley

• ISO 9001:2000 Certified
• Location: Bagley, MN
• Established: 1990

• Services Provided: ATV Transmissions, Forward/Reverse Snowmobile Transmissions, Assembly and Design Engineering with 35+ PRO-E Stations.

 TEAM Industries - Park Rapids

• ISO 9001:2000 Certified

• Location: Park Rapids, MN
• Established: 1994

• Services Provided: Turning, Milling, High-Volume Light Machining
• Internal Support Capabilities: Modern Quality Control Department

 TEAM Industries – Andrews

• Location: Andrews, NC
• Established: 2005

• Services Provided: Spiral Bevel Gear Cutting, CNC Milling, Turning, O/D Grinding, I/D Grinding, Broaching,
• Internal Support Capabilities: Carburizing Heat Treat, Chromating, Assembly, Metallurgical Lab, CMM, Blanchard Grinding, Shot Blast

 Website:  www.team-ind.com

 Types of tools built and/or run:  Large, complex die cast tooling and die castings

 Industries served:  Recreational vehicle industry, transportation, construction and agricultural industries.