Meyer QuarterlySpring 2020

The State of Meyer’s BusinessMeyer 2020 and BeyondSpotlight: MT R&OEmployee ProfilesAnd More!

A publication by and for Meyer personnel.

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Meyer Tool The State of Our Business

We are experiencing very exciting times here at Meyer Tool. Our industry has had its challenges, but Meyer has weathered the storm. We have grown over 16% in sales approaching $300 million. The aerospace industry’s challenges have been led by the grounding of Boeing’s 737 Max fleet. Unfortunately, this has adversely affected several suppliers as well as Boeing. As a result, Airbus has taken over as the industry leader in single isle Aircraft with the A320 NEO. The engine options for the A320 consists of the Geared Turbo Fan (GTF) by Pratt and Whitney and the LEAP engine by General Electric. Both engines have had their share of challenges. However, both are far superior in technology as compared to engines of the past. The primary benefit is reduced full consumption. Meyer enjoys significant content on both programs across many of our sites.

On the military front, two very important programs to watch are the Joint Strike Fighter (JSF) and the F-18 Super Hornet. The engine offering for JSF is the F-135 engine from Pratt & Whitney (our largest customer). The Super Hornet is powered by the F-414, which is offered by General Electric (our 2nd largest customer). The F-135 engine demand continues to grow as projected. The demand for the F-414 is relatively stable where there is a large demand for spare parts. Ultimately, the Navy plans to replace the Super Hornet with their version of the JSF aircraft.

The Industrial Gas Turbine Market (IGT) remains stable. I’d like to point out a couple of developments regarding IGT. Due to the lack of growth in the market and the availability of square footage in Greenville, S.C., we made the decision to consolidate all IGT to MTG in the US. This allowed us to

make room for increased demand in the aviation sector. It also means that the majority of the work is close to the customer. This current volume has been secured with a long-term agreement (LTA).

Below is Meyer Tool’s historical revenue performance and forecast for 2020. As you can see, our outlook for 2020 is strong.

Our LocationsOne of our core principles has always been to provide the best possible service to our customers. We position ourselves to help them overcome capacity issues. We are also very adept at bringing a wealth of experience to assist with their technical challenges. It has always been

Doug LangPresident

Beau EastonDirector of Operations

Dan GodinVice President Business Development

Kevin SlatteryDirector of Strategic Planning

our strategy to be close to the customer. To that end, we created our first Shop N Shop in Middletown, New York with our largest customer several years ago. Since then we have created two Shop N Shops with suppliers of ours in two additional locations (Greenville & Kalisz, Poland). By adding our capabilities internally to reduce lead time, we’re ultimately doing an even better job of servicing our customer. Per the request of our customers, we have added several machines and have upgraded equipment to improve speed and flow at almost every site. We have also added additional capabilities in the areas of: Creep Feed Grinding, High Speed Milling and Turning, Laser Powder Welding, and Peen & Super Finishing. We push for these developments to remain vigilant in our desire to provide our customer with one solution for all of their needs.

Below you can see where all of our sites are located. We now have twelve satellite facilties with the addition of our Cox Plant II location.

In ClosingOur strategy of being the best at servicing the customer has, and will always be, the right one. Through this, we have developed outstanding relationships that have fostered our amazing growth. Our future is very bright. Thank you all for doing your part in making Meyer the trusted manufacturing partner for our customers.

Meyer Greenville

A320 - GTFJSF - F135

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Please provide a summary of your years of service at Meyer Tool.

I have worked for Meyer for almost three years. I have learned much about how the company works, trained in many positions, and have learned to produce quality parts consistently and effectively.

What do you like to do when you are not working?

I am a musician and I enjoy poetry. I love to exercise. Most of my time is spent raising my son as a single father.

Can you describe a favorite project that you’ve been a part of at Meyer Tool?

Becoming a part of the continuous improvement committee has allowed me to not only improve on my own productivity, but also find ways to increase overall production. We’ve also drastically reduced time wasted and other inefficiencies.

If you could witness any historical event, what would you want to see?

The ‘I Have A Dream’ speech by Dr. Martin Luther King Jr. I would love to have been there to witness that speech live and feel the energy.

Can you give me three bucket list items?

Paragliding / Becoming a published author / Doing something that changes the world

What is the best book you’ve ever read?

Where The Sidewalk Ends by Shel Silverstein

Do you have a personal motto? If so, what is it?

H.I.M - Honor / Integrity / Maturity I believe in living life with H.I.M

Curtis Gray - Employee Profile - Middletown, NY

Name something about yourself that people would be surprised by.

I was a licensed minister and school teacher for over ten years and I hold three degrees (culinary science, theology, and religious studies).

What do you find most challenging about working at Meyer Tool?

Knowing that I could be an asset to every shift but being limited to one; feeling I have so much more to offer and so much more to learn.

What do you find most rewarding about working at Meyer Tool?

Being able to push and challenge myself every day to perfect my craft and make a difference for the company and in the lives of my fellow employees.

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Meyer 2020 and Beyond

Meyer 2020 and BeyondModern manufacturing has reached a crossroads in America. The companies that will continue to grow and succeed are not the largest, fastest, most technical, most recognized, etc., but rather those that are willing to change and evolve with their customers and new technologies as they become available. Corporations who continue to address customer demands and new challenges by relying on previously successful strategies are being left behind. Continuing to carry on with business in a traditional manner will force customers to find new solutions within the supply chain.

2019 and 2020 have seen many significant changes to how Meyer Tool, Inc. manages production, addresses engineering and quality issues, and how customer service and sales teams manage their accounts and orders. There has been and will continue to be a significant investment in automation and research & development (R&D) for our core manufacturing processes.

We are investing heavily in the Industry 4.0 revolution, which, at its base, calls for the incorporation of the Internet of Things (IoT) into our manufacturing processes. CNC and Conventional machines alike are being linked into our Enterprise Resource Planning (ERP) / MPCS in order to evaluate our capacity, production schedules, efficiencies, maintenance and quality issues in real-time. Many of our facilities are undergoing 6S transformations which focus on improving safety, eliminating the eight types of waste or inefficiencies in manufacturing also known as “Muda”, and improving the overall organization of functional space within the facility. We are also putting

a heavy emphasis on preventative maintenance, often referred to as TPM, for critical equipment in order to gain additional “up-time” and stability for production. On-Time Delivery (OTD) of quality product means everything to our customers, and it’s the top driving factor in their evaluations of our performance.

These innovations are in line with Meyer’s strategy to remain relevant and competitive in this demanding and dynamic industry. Many of these changes will enable us to become more efficient. Others are based on customer requirements in order to remain in the supply chain. Customer and auditor feedback regarding the steps we’ve already taken towards this transformation has been phenomenal. This is evident not only from the comments through conversations and correspondence, but also through new business generated over this past year. Based on current orders Meyer is expected to grow another 10 to 15% throughout 2020.

Change is never easy, but adapting and evolving with the changing industrial climate is essential for Meyer’s continuing success. We are the top supplier in our niche for the production of “hot section” components for gas turbine engines. Our willingness to make difficult and significant changes will allow us to remain the number one supplier in this growing industry.

First and foremost, I’d like to thank everyone for the overwhelming support this past year since my cardiac/vascular event last March. I sincerely appreciate all of the prayers, cards, gifts, phone calls and visits I received from the Meyer Tool Family. Your support has been very much appreciated.

I would also like to recognize a group of individuals who are often overlooked during the day to day operation of the business. I want to thank our first responders who intervened in the situation swiftly and professionally, all the while demonstrating confidence in their training. They made sure I was going to the hospital within a matter of minutes. We take for granted that we have team members who sacrifice their time for this training, and walk into many situations with no idea what to expect. They are essential to keeping our team safe and as healthy as possible during times of crisis.

Thanks again to everyone for their support.

By Beau EastonDirector of Operations

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In the latter part of 2009, Meyer Tool, Inc. was presented with an opportunity to start a Repair and Overhaul division in Cincinnati. What began with two employees in January 2010 has since evolved into 17 employees across one shift.

MT R&O is a 145-repair station; the term Repair Station refers to a maintenance facility that has a certificate issued by the FAA under Title 14 of the Code of Federal Regulations (14 CFR) Part 145. MT R&O is engaged in the maintenance, inspection, and alteration of aircraft and aircraft products. Typically it takes up to 2 years to become a certified 145-repair station, however MT R&O was able to do this in 9 months! Around 98% of MT R&O’s workload is military hardware. This only requires a certification of conformance but is treated the same as an 8130-Return to Service for flight hardware, a requirement by the FAA.

MT R&O made their first shipment in February 2010 for $6000. Interestingly enough, their first job was for Meyer Tool, Inc. for 10 dilution hole repairs of bench, weld, and blend. MT R&O now has approximately 10 customers, ranging from multiple GE divisions (GE Strother - United States Air force, GE Warranty, Essig, and Reps Resource) to Pratt & Whitney.

MT R&O performs simple to very complicated repairs and some are exclusive to us. For example, the “Spool” repair was partially developed by MT R&O’s VP, Gary Loveless. MT R&O was the only vendor approved to do this repair and has therefore given a few of our employees the chance to travel all over the world, including to Papa New Guinea, France, India, China and Australia!

MT R&O’s general process consists of parts being received into inspection and reviewed for repair. Existing repairs are recommended and in some cases, if suitable repair procedures do not exist, they are written and submitted. Special processing consists of localized heat treat, machining and welding, and spark erosion grinding (SEG).

In 2010, MT R&O’s yearly sales were $384,000 and has since increased to an estimated $5.2 million in 2019. This growth in sales is thanks to all the employees of MT R&O. Moving forward, MT R&O’s challenges will be developing new processes while staying competitive, and finding qualified machinists to run the manual machines. Despite these challenges, cross-training has allowed for a nonstop smooth flow of incoming and outgoing hardware. With the continued hard work of its employees and leadership team, MT R&O foresees expanding 25% within the next 5 years.

Meyer Tool Repair and Overhaul By Rose Lawless

Accountable - General Manager

By Gary LovelessVice President

Years of Service

Try to find the 5 differences between these two photos. Good Luck!

35Jerry TylerJohn MoehlmanJulie HegerGerald EasleyDavid CooperRobert PlackeWilliam HibbardTony Colley

40Ronald Smith Larry Cooper Kenneth Knight

30Kenneth OsieJason GagnonMichael HaggardGeorge CintDennis SparksJames AlvarezJohn Powers

25Stuart RodonisDavid LangRuth ClarkGwena BlackabyBrian FeltsShelly LawlessMichael Rowland

WE ARE APPROACHING THE AIRPORT. CO-PILOT, HAVE ALL PASSENGERS FASTENED THEIR SEAT BELTS?

YEP

If you have questions or comments about the Meyer Quarterly newsletter, please contact Scott Haemmerle at (513) 623-8344 or scott.haemmerle@meyertool.com.

Violeta Roman - Employee Profile - Montreal, QC

Please provide a summary of your years of service / different jobs including current job at Meyer Tool. I started working at Meyer Canada 16 years ago on July I8, 2003 initially as an airflow inspector, followed by Quality Engineering within two years, and continued until my current role as Quality Manager. Given that I work at one of our satellite divisions, I had the chance to work in Quality Control, Quality Assurance, Continuous Improvement, and Training throughout this time. All of these roles and experiences helped to prepare me for my current position as Quality Manager.

What do you like to do when you are not working?

I love to spend time with my family, to read, to watch movies and to play sports (tennis and hockey are the two sports I love the most). I have two personal trainers J one of whom is my husband who loves to go cycling on beautiful forest trails and my son helps me push my limits at the gym. Can you describe a favorite project that you’ve been a part of at Meyer Tool?

One of my favorite projects has been Meyer Canada’s UTC Supplier Gold Certification. We started the journey in 2011 and through hard work and perseverance as a team; we finally achieved our goal in 2017. There was a big learning curve to adapting to the certification’s demands and continues to be in order to maintain the Supplier Gold standards.

If you could witness any historical event, what would you want to see?

The first thought I had was that I would love to see flying cars (ipso facto, some parts in those engines would most probably be machined by us J). However, thinking it over, I would love to see the major advancements needed in the medical sciences such as a cure for cancer, which has devastated too many people’s lives.

Can you give us three bucket list items?

Go to the Brazilian Samba ParadeDo paragliding or hang glidingLearn how to meditate

What is the best book you’ve ever read?

Tough question…Gone with the wind, The Count of Monte Cristo, The Odyssey…and many others come to mind. I would not be able to say which my favorite is.

Do you have a personal motto?

A strong will can move mountains.

Name something about yourself that people would be surprised by.

I don’t know much about cars, yet, it’s something I really enjoy.

What do you find most challenging about working at Meyer Tool?

One of the most challenging tasks is to keep our customers happy, both internal and external. Given that the quality of our work is what directly impacts their happiness, it can be a difficult yet fulfilling challenge to manage the quality of the work we offer.

What do you find most rewarding about working at Meyer Tool?

One of the most rewarding parts of working at Meyer Tool is the opportunity to continuously improve our product and processes for a variety of work scopes and the different aspects of our business.

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