Annual Brochure 2015
Marmon overview Marmon Holdings, Inc., part of Berkshire Hathaway Inc., is a global, diversified industrial organization. Marmon comprises four autonomous companies consisting of 15 diverse, stand-alone business sectors, and about 185 independent manufacturing and service businesses. These four companies and their respective sectors are:
Marmon energy Services company — 2015 revenues $2.782 billion n
engineered Wire & cable Producing electrical and electronic wire and cable for energy-related markets as well as transit, aerospace, defense, communication, and other industrial applications.
uTlX company n
rail Products & Services and Intermodal containers
n
engineered Products Providing the transportation, energy, and other industries with products, services, and technologies including sulfur processing, steel tank heads and cylinders, bi-modal railcar movers, and wheels, axles, gears, and related products.
Serving the energy, chemical, petrochemical, agricultural, and transportation markets with products and services including railroad tank cars and intermodal tank containers. n
crane Services Supplying mobile cranes, operators, and lift engineering services primarily to the energy, mining, petrochemical, and construction markets.
Marmon engineered components company — 2015 revenues $1.961 billion n
Distribution Services
n
Providing specialty metal pipe, tubing, and beams, and related value-added services for a broad range of industries.
Tubing, Fittings & Wire Products
n
Supplying copper and aluminum tubing and fittings for markets including plumbing, HVAC, refrigeration, appliance, automotive, and construction; brass fittings and forgings for many commercial and industrial applications; and electrical building wire.
Industrial Products Providing products and components for a wide variety of industrial markets through three groups of businesses—fasteners and fastener coatings, metal components, and safety products.
Marmon Food, Beverage & Water Technologies company — 2015 revenues $1.168 billion n
Foodservice Technologies
n
Producing food preparation equipment primarily for quick-serve restaurants as well as other commercial and institutional environments.
Beverage Technologies
n
Supplying beverage dispensing and cooling equipment, and related products to brand owners and foodservice retailers.
Water Technologies Producing water treatment equipment for residential, commercial, and industrial applications.
Marmon retail & highway Technologies company — 2015 revenues $1.859 billion n
retail Science
n
Delivering retail marketing solutions to brands and retailers that are driven by shopper insights and include merchandising displays, in-store digital merchandising, retail environments, and marketing programs.
retail Store equipment
n
highway components Primarily supporting the heavy-duty highway transportation industry with vehicle components including fifth wheels and wheel-end products, and also serving the light-duty vehicle aftermarket with an array of products.
retail Products Supplying electrical products, plumbing tube, air compressors, and other products through the home center channel, as well as work gloves and socks sold at retail.
2
n
Supplying display fixtures, shopping carts, and related services for retail stores, as well as material handling carts and automation equipment for many industries. n
Trailer & Truck Products and Services Serving the heavy-duty highway transportation industry with flatbed, drop-deck, and other types of trailers, undercarriage products, truck modification services, and fenders and other spray suppression products.
Marmon is our kind of company. Warren Buffett, Chairman & CEO, Berkshire Hathaway Inc.
Marmon holdings, Inc. Selected Financial Data (U.S. GAAP Basis) 2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Revenues
$7,770
$7,982
$6,972
$7,163
$6,913
$5,963
$5,062
$6,919
$6,904
$6,933
$5,605
Operating Income*
$1,472
$1,407
$1,201
$1,163
$1,018
$855
$751
$977
$951
$884
$556
Operating Income %
18.9%
17.6%
17.2%
16.2%
14.7%
14.3%
14.8%
14.1%
13.8%
12.8%
9.9%
$12,388
$11,720
$10,614
$9,910
$9,027
$8,249
$7,755
$7,390
$8,079
$7,708
$7,758
$8,928
$8,217
$7,516
$6,854
$6,065
$5,393
$4,840
$4,311
$5,037
$4,486
$4,495
(dollars in millions)
Total Assets Shareholders’ Equity**
*Excludes interest income and interest expense **Excludes noncontrolling interests
G
end Markets (% of 2015 revenues)
JK H I
A Energy, Mining & Petrochemical 25%
A
B Construction & HVAC 19%
F
C Retail Stores & Restaurants 15% D Heavy-Duty Vehicles (OEM & Aftermarket) 11%
E
E Industrial 10%
By the numbers
F Transportation Providers 7% B
D
G Consumer 5%
n
Four companies comprising 15 business sectors
n
About 185 independent business units
n
Operations in more than 20 countries
n
More than 350 manufacturing, distribution, and service facilities
n
About 20,000 employees worldwide
n
Founded in 1953 by brothers Jay and Robert Pritzker
n
Berkshire Hathaway acquired Marmon in 2008
H Food & Agriculture 3% I Aerospace & Military 2%
C
J Construction & Agricultural Equipment 2% K Other 1%
C
Geographic Markets (% of 2015 revenues)
D
A North America 86%
B
B Europe 6% C Pacific Rim 6% D Other 2%
A
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Marmon review and outlook
Marmon’s successful performance continued in 2015 with record highs in both GAAP operating income and GAAP operating margin percentages. Our excellent managers, now entrenched in Marmon’s 80/20 business model, and dedicated employees worldwide achieved these results despite extremely challenging economic conditions. While the overall U.S. economic recovery continued for its seventh year in 2015, its impetus to Marmon’s growth remained tepid. We overcame significant and strengthening headwinds in several of our largest enduser markets—oil/gas, mining, agriculture, and others—and lackluster production in many industrial markets. Additionally, the U.S. dollar’s rise negatively affected the financial translation of Marmon’s non-U.S. entities, which account for 25 percent of our revenues. Our results were also heavily impacted by metals deflation (copper and steel primarily) and other lower commodity prices (e.g., iron ore, fertilizer, sulfur, coal, etc.). Finally, our highly important and successful North American railcar leasing and repair businesses had to deal with costly new federal regulations for tank cars. In short, it was a difficult year. While we expect most of these macro headwinds to continue in 2016, we will increasingly benefit from the contributions of two large recent Marmon acquisitions—IMI’s beverage and merchandising technologies businesses since early 2014, and GE’s railroad tank car leased fleet and railcar repair shops since late 2015. We are also now entering a more sophisticated phase of 80/20 business segmentation and management development by forming four even more autonomous Marmon Operating Companies (as listed on page 2) and a new Marmon Holdings Office of the Chairman, which will serve as a sounding board for the four Operating Company CEOs. These Operating Companies are organized along common enduser markets and/or products to better serve their customers with the innovation and competitiveness expected of a preferred supplier. It is amusing that many of the activist shareholders now in vogue advocate company segmentation as revolutionary. Marmon has been extensively segmenting its many businesses for nearly 15 years to sharpen focus and enhance growth under our 80/20 principles. Marmon’s four Operating Companies are totally stand-alone operations with very few resources and expenses that they do not control. Plus, they will be measured and incentivized based upon their individual results, not Marmon consolidated. This approach will significantly and positively affect each Operating Company’s shareholder Enterprise Value and management’s decision-making as it has for Marmon as a whole. Employing the same calculations Berkshire Hathaway used to acquire Marmon in 2008, Marmon/Berkshire Hathaway shareholder Enterprise Value has grown by 10.7 percent per year compounded during Berkshire’s eight years of Marmon ownership. In comparison, the S&P 500 Index during the same period has compounded by 4.2 percent per year measured without dividends. The fact that Marmon’s Enterprise Value growth is measured against a starting point of 2007, the last 4
strong economic year before the most recent recession, makes it even more remarkable. During the last 10 years (see chart on page 3) Marmon’s consolidated GAAP revenues and operating income have grown on an annual compound basis equal to 3.3 percent and 10.2 percent, per year, respectively. GAAP margins of only 9.9 percent in 2005 advanced to 18.9 percent in 2015 and are budgeted to improve further in 2016. Our 80/20 business model demands continuously increasing margins even during recessionary periods. All of these measurements are on a complete GAAP basis with no pro forma adjustments. We focus on operating income versus earnings before interest, taxes, depreciation, and amortization (EBITDA) because, to quote Warren Buffett, “References to EBITDA make us shudder—does management think the tooth fairy pays for capital expenditures?” During the last five years, we have invested heavily for future growth with capital expenditures, leased asset fleet additions, and acquisitions totaling about $6.2 billion, all financed from within. In fact, Marmon’s net cash position (i.e., the amount by which cash exceeds all interest bearing debt) during the same five-year period actually improved by about $200 million even with those investments. Again, our 80/20 business model creates such favorable cash flow. This stands in stark contrast to many of our diversified industrial “peers”—we regularly benchmark with 12 of them—who have apparently decided to eschew investing in long-term growth in favor of stock buybacks and increased dividends. None of this success occurs without capable, hard-working employees. Fortunately, Marmon has thousands of such valued employees serving their customers every day. To these loyal customers, we say “thank you” for allowing us to demonstrate our capabilities and earn your trust. The following pages contain more specific overviews of each of Marmon’s four Operating Companies. As you will note, 80/20 segmentation applies not only to these four larger organizations, but also to their respective business sectors and units. This level of segmentation assures a closeness with our customers and an intense focus on meeting their needs. We think you will enjoy reading these highlights of Marmon’s continued success.
Frank S. Ptak Chairman & CEO, Marmon Holdings, Inc.
John J. Goody Vice Chairman, Marmon Holdings, Inc.
Kenneth P. Fischl Vice Chairman, Marmon Holdings, Inc.
Marmon energy Services company
end Markets (% of 2015 revenues) F GH
E D
A C
B A B C D E F G H
Energy & Mining 45% Petrochemical & Chemical 20% Industrial 11% Transportation Providers 9% Food & Agriculture 8% Aerospace & Military 3% Construction 2% Other 2%
Geographic Markets (% of 2015 revenues) C
D
B
A
A B C D
Our company’s 2015 results testify to the value of our ongoing commitment to building a sustainable 80/20 culture. With 45 percent of our revenues driven by major capital investment decisions in the global oil and gas and mining industries, 2015 was a difficult year for many of our customers as well as many of our business units. Yet, in total, we posted another record year, delivering a 5 percent increase in GAAP operating income over 2014. Driving this performance were gains in our Transportation Services & Engineered Products Sector, which more than offset declines in our Engineered Wire & Cable and Crane Services sectors. An important part of this current and future leasing growth platform was the third quarter asset purchase of just over 25,000 railroad tank cars from GE Railcar Services. Union Tank Car, our North American railcar company, is celebrating its 125th anniversary in 2016—quite a milestone. Over this span, marked by dramatic domestic economic transformations and multiple business cycles, both Union Tank Car (branded as UTLX) and its Canadian affiliate, Procor, have remarkably recorded profits every year of their existence. Regardless of current market conditions, the momentum of a 133,000-car fleet— which, coupled end to end, would stretch from Chicago to Havana, Cuba—takes time to decelerate and we will see continued, albeit slowing, growth in leasing past 2016. As the industry slows, demand for tank car storage and repair work will escalate. Segmentation of our railcar leasing, repair, and manufacturing businesses early last decade laid the groundwork for our repair business to take advantage of this phenomenon. The result of this focus has been continued year-on-year improvement in throughput of our fleet and substantial growth with third-party customers who, in 2015, accounted for more than 40 percent of Marmon’s total railcar repair revenues. Beyond the expected increase in repair demand, further capacity requirements will be placed across the industry as a result of new federal regulations aimed at reducing risks associated with hauling flammable liquids. These changes require the retrofit of existing DOT-111 tank cars as well as more
robust design and performance criteria for newly constructed tank cars assigned for flammable liquid service. We support the initiative and our repair business is well prepared to service and grow with its internal and external customers. In 2015, the build-out of a dedicated retrofit shop in Marion, Ohio, was completed and certified. At year’s end, we acquired the GE Railcar Repair Services business, expanding our full-service repair shop network and giving us the opportunity to explore the potential of other repair value niches beyond tank cars. UTLX and Procor Repair Services will be a major growth engine for years to come. The precipitous fall in capital spending within the world’s energy, mining, and metals sectors as well as the strengthening U.S. dollar negatively affect the core product and service offerings of our Engineered Wire & Cable and Crane Services sectors. In response, our highly-focused business units in these sectors have been working diligently to adjust costs and, in some cases, consolidate to be in line with reduced activity while simultaneously investing in people and assets to redefine and expand their competitive moats. In short, they are applying our 80/20 thinking process and positioning themselves to continue providing sustainable value to their customers. Despite strong headwinds in the majority of the markets served by our company, we are quite confident in our near and long-term ability to widen core moats and generate sustainable growth in both revenue and earnings. The core 80/20 tenets of decentralization and segmentation provide the foundation that empowers our dedicated, hard-working, and creative base of employees. Every day, the men and women of Marmon Energy Services Company make well-informed, intelligent decisions directly at the source of any problem or opportunity with the singular goal of providing tangible value to our customers.
Roger W. Shores President & CEO Marmon Energy Services Company
North America 86% Europe 3% Pacific Rim 8% Other 3%
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Marmon Energy Services Company
rail Products & Services Sector and Intermodal containers
U.S.-based Union Tank Car (UTLX), which is celebrating its 125th anniversary in 2016, and Canada-based Procor together constitute North America’s leading lessor, manufacturer, and maintainer of railroad tank cars. Their combined fleet of 133,000 railcars primarily serves the chemical, petrochemical, and agricultural industries. In addition to two UTLX manufacturing facilities in the U.S., the companies operate an extensive North American repair and maintenance network including on-site service at customer facilities.
Railserve is the largest provider of inplant rail services in North America. The company offers industrial switching of railcars, unloading and loading services, locomotive leasing, railcar inspection and, through its Ameritrack business unit, rail track construction, repair, and inspection services. The Railserve LEAF® (Lower Emissions and Fuel) gen-set locomotive is an efficient and environmentally-friendly locomotive for use in industrial rail yards.
union Tank car history Timeline
The first railroad tank car consists of wooden tubs mounted on a flat car to transport crude oil.
John D. Rockefeller acquires most of the existing tank cars for exclusive use by Standard Oil.
1865
1873
6
Rockefeller has Union Tank Line incorporated.
The company’s name is changed to Union Tank Car Company.
UTLX tests fusion welding to produce sturdier tanks. Regulatory approvals would take 10 years.
1891
1919
1931
1869
1880
1911
1926
1949
Railcars with horizontal, cylindrical iron tanks are introduced.
Standard Oil’s tank car fleet is placed under the name Union Tank Line and restenciled “U.T.L.”
After the Standard Oil Trust breakup, Union Tank Line becomes a publicly-held corporation with a new reporting mark – UTLX. The “X” designates non-railroad ownership.
Products Tank Line (PTL) is established to lease cars to non-Standard Oil refiners.
UTLX begins assembling tank cars from sourced components.
EXSIF Worldwide is the world’s leading lessor of intermodal tank containers for the global transportation, distribution, and storage of bulk liquids, chemicals, and gases. The fleet of more than 45,000 containers includes a wide range of equipment types, specifications, and capacities.
Railserve’s safety innovations include the Railserve Emergency ACTion (REAct) transmitter, which attaches to crew members’ safety vests and enables them to remotely stop Railserve locomotives at the push of a button.
PTL’s Toronto-based affiliate is incorporated as a full-scale tank car leasing company.
Products Tank Line Canada, known informally as Procan, is renamed Procor.
UTLX opens the first assembly line-style tank car plant.
Marmon acquires TransUnion.
UTLX opens a new tank car factory in Alexandria, La., designed for high-volume, in-line production.
1952
1962
1969
1981
2006
1957
1968
1978
1995
2015
UTLX begins manufacturing its own tank cars.
TransUnion Corp. is created as the parent holding company of Union Tank Car, Procor, and diverse other businesses.
Mobile crews begin taking UTLX railcar repair services to cars in the field.
UTLX begins production in a second tank car plant in Sheldon, Texas.
UTLX acquires the railroad tank car fleet of GE Railcar Services as well as GE’s railcar repair services business.
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Marmon Energy Services Company
engineered Products Sector
Enersul provides customers globally with services, equipment, and technology for processing and distributing sulfur. In addition to operating sulfur forming and handling plants on behalf of customers worldwide, Enersul offers project management and after-sales service.
Penn Machine products include wheels, axles, gears, and wheelsets (pictured) for the mass rail transit market, traction gears and pinions for locomotive maintenance, and assorted gears for mining and other industrial uses.
Trackmobile® manufactures mobile railcar movers for in-plant and railyard switching and spotting. More than 10,000 Trackmobiles are in operation worldwide. Trackmobile options include the removable rotary broom (pictured), which provides a durable and effective means of quickly clearing debris from worksite roads and railways.
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Uni-Form Components provides customfabricated steel tank heads, cones, and cylinders used in the petrochemical, rail transportation, aerospace, hydrocarbon processing, and oil and gas industries. The company’s flanging machines can produce tank heads up to 300 inches in diameter and up to 3 inches thick.
Marmon Energy Services Company
crane Services Sector
From Canada to Australia, from the U.S. to India, Marmon Crane Services owns and operates more than 1,000 mobile cranes—one of the world’s largest such fleets—primarily serving the energy, natural resource, construction, and industrial markets. Marmon offers rapid deployment of a versatile crane fleet and skilled operators to safely and dependably execute carefully-engineered lifts. Its mobile fleet includes conventional truck and crawler cranes, hydraulic cranes, all-terrain and rough-terrain cranes, boom trucks, and related equipment.
Marmon’s array of lifting equipment includes self-propelled modular transporters capable of moving vessels weighing up to 1,600 tons. Marmon Crane Services also includes Freo Group, a leading crane company in Australia, and a joint venture, Astha Sterling Crane, in India.
Marmon’s global crane business originated in Western Canada with Sterling Crane, which has grown to serve customers throughout Canada and the U.S.
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Marmon Energy Services Company
engineered Wire & cable Sector
TE Wire & Cable’s patented AccuClave® system of autoclave thermocouple helps make commercial aviation safer and more efficient by enabling global aerospace companies to reliably test lighter weight, yet stronger materials used to produce aircraft parts. To guarantee structural integrity, composite parts need to undergo a pressure curing process, which requires a dependable temperature sensor. The AccuClave product line was created for demanding high temperature autoclave applications. AccuClave products are designed not to leak in a vacuum and to withstand up to 150 pounds of pressure in process temperatures of up to 500 degrees F, helping to ensure accurate and consistent production. They also may be reused multiple times and are easy to install and replace, lowering labor costs. The Energy Wire & Cable Group primarily serves electric utilities with ultra-dependable overhead and underground power distribution products. These include the Hendrix® aerial cable system from Marmon Utility, which consists of covered conductor supported by a high strength messenger in a compact triangular configuration. It has earned a reputation for withstanding the effects of ice, snow, and wind storms, downed tree branches, and even toppled utility poles.
Marmon offers a comprehensive line of Gardex® armored cables for oil and gas, mining, utility, and other markets where cable is exposed to extreme conditions. Products include Aetna medium voltage power cable and Dekoron hybrid fiber optic/ copper data and instrumentation cables that are bundled for demanding environments including oil refineries and other industrial process plants.
The High Performance Wire & Cable Group serves the aerospace, defense, communication, and other markets requiring exacting standards. The group’s highly engineered products are exemplified by Marmon Aerospace & Defense cables for mission-critical applications such as rocket launches.
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Marmon Energy Services Company Businesses
Wire & cable Sector
n engineered
energy Wire & cable Marmon Utility Hendrix Aerial Cable Systems Hendrix Underground Cable Systems Hendrix Molded Products Kerite Cable Services Kerite Pump Cable Kerite Power Cable Aetna Insulated Wire Teck Cable Products Industrial Products
The Specialty Wire & Cable Group supports the oil and gas, nuclear power, and transit markets with products designed for harsh environments. For example, RSCC Wire & Cable custom packages its Exane® power, control, and instrumentation cables for the top drive service loops used on drilling rigs and platforms.
Marmon Engineered Wire & Cable companies have developed a series of high performance electronic cables that enhance fire safety for the public, industrial workers, and emergency responders in environments ranging from subway tunnels to high-rise office buildings. Designed and manufactured for the oil and gas, transit, and general industrial markets, these cables will survive direct exposure to 2,000-degree flames for up to two hours, ensuring that vital safety circuits, valves, and other critical systems continue to operate.
high Performance Wire & cable Cable USA Industrial Products Military Products Fine Wire Products Comtran Cable Data Communications Cable Premise Telephone Cable Security/Access Control Cable Harbour Industries Military Specification Products Aerospace Wiring Products Electronic Hook-up Wiring Aerospace Data Products (IFE) High Performance Coaxial Products Communications Products
uTlX company
Products & Services Sector
n rail
Union Tank Car Company UTLX Leasing UTLX Manufacturing McKenzie Valve & Machining UTLX Repair Shop Services UTLX Repair Field Services Procor Limited Procor Leasing Procor Repair Shop Services Procor Repair Field Services Railserve Railserve Switching and Transloading Railserve LEAF® Locomotive Ameritrack Intermodal containers EXSIF Worldwide EXSIF China EXSIF Russia Lindenau Full Tank Services GmbH n engineered
Sector
Products
Enersul Enersul Operations Enersul Technology
Harbour Industries (Canada) Industrial Wire & Cable Products Oil & Gas Products
Penn Machine Company Penn Transit Penn Locomotive
Dekoron Unitherm Oil & Gas Products Utility & Power Products
Trackmobile Trackmobile Manufacturing Trackmobile Aftermarket Parts
Marmon Aerospace & Defense Aerospace & Airframe Products U.S. Navy Shipboard Products
Uni-Form Components
TE Wire & Cable Composite Products OEM & Sensor Products Metallurgy Products Specialty Wire & cable RSCC Wire & Cable Exane Products Industrial & Flexible Cable Products Metal Clad Products Utility Products
n crane
Services Sector
Sterling Crane Canada Eastern Canada Central Canada Western Canada Oil Sands Sterling Crane U.S. Freo Group (Australia) Astha Sterling Crane (India)
Dekoron Wire & Cable Petrochemical Products Shale Gas Products Power Generation Products Industrial Products International & cable Services
2 hours
Gendon Polymer Services Insulating & Jacketing Compounds Rubber & Polymeric Products Owl Wire and Cable Radiant-RSCC Specialty Cable (India)
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Marmon engineered components company
end Markets (% of 2015 revenues)
E
F
G
H
D A
C
B
A B C D E F G H
Construction & HVAC 52% Industrial 19% Vehicle Manufacturers & Aftermarket 7% Construction & Agricultural Equipment 6% Aerospace & Military 4% Transportation Providers 3% Energy, Mining & Petrochemical 2% Other 7%
Geographic Markets (% of 2015 revenues) BC
A A North America 97% B Europe 2% C Pacific Rim 1%
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Marmon Engineered Components Company faced myriad challenges in 2015, but also achieved notable successes. The Distribution Services Sector was negatively affected by declining steel prices, short lead times from the domestic steel industry, and soft market conditions. However, refined segmentation of Marmon/Keystone’s North American operations is now allowing the business to better focus on high-potential opportunities and develop comprehensive plans—80/20 roadmaps—to meet the specific needs of key customers. On another positive note, Bushwick Metals has made excellent progress through the application of 80/20 principles and is displaying positive results serving a construction market that seems to be improving after a long slump. The Tubing, Fittings & Wire Products Sector introduced RLS® refrigeration press fittings, the first press-to-connect fittings engineered for high-pressure lines used in the air conditioning and refrigeration industries. The RLS fittings replace the time-consuming and demanding practice of manually brazing copper joints, thereby reducing installed cost, improving consistency, and significantly enhancing safety by eliminating the need for an open flame. In its inaugural year, the RLS business achieved positive revenue and profit, with much higher growth anticipated in the future. We have similar expectations for this sector as a whole as its businesses continue to innovate in heating, cooling, plumbing, and wire products. As these innovations come to fruition, the sector will continue to reduce its reliance on commodity products while directing its resources to products and markets with strong value potential. The Industrial Products Sector realized modest growth in 2015, a year in which the focus was on ensuring the sector had the right leadership, developing an innovation team, and further strengthening customer roadmaps to support future operating profit. Tucker Safety Products, which joined our Safety Products Group in 2014, performed in stellar fashion. Our challenge now is to substantially grow this fine protective wear business over the coming years. Another 2015 highlight came when Pan American Screw, part of our Construction
Fasteners Group, acquired Western Builders Supply. WBS provides a wide range of fastening solutions, sold under the Big Timber® brand, that are highly regarded in the construction industry. The WBS product line has added tremendous value to our product offering in addition to strengthening our position in the marketplace. The Industrial Products Sector is poised for a strong 2016 and significant future growth. The mantra of Marmon Engineered Components Company is “growth and innovation through sound leadership,” with 80/20 serving as the foundation for everything we do. One of our key goals is to become a major player in the transportation industry through product development, systems enhancement, and/or company acquisitions. We will continue to build a strong heating and cooling platform by proliferating the RLS press fittings into new markets. We also will focus on adjacent HVAC products, with our sights on potential launches into engineered thermal technology systems, solutions, and controls for automotive, heavy machinery, trains, and buses. At the same time, we will reinvent our plumbing products position, focusing on metal and non-metal fittings in the PEX/plastic market. We plan to expand the Safety Product Group’s platform through product innovation and adjacent product and/or market acquisitions, and to create dedicated manufacturing organizations for Marmon/Keystone and Bushwick to increase their market presence as processors of highvolume fabricated metal products. As we move forward in 2016 and beyond, I am proud of what our company has accomplished thus far, and excited about the future. Marmon Engineered Components Company is a strong organization with dedicated leaders and employees. Together, we will continue to build a strategic framework that will guide us to greater growth and profitability.
E.L. (Woody) Petchel President & CEO Marmon Engineered Components Company
Marmon Engineered Components Company
Distribution Services Sector
Marmon/Keystone is a leading wholesale distributor of specialty pipe, tubing, and related products in steel, aluminum, and alloys for a wide variety of industries and customers. The company’s North American network of metal service centers, which are established near customers, allow for more personal service and next-day delivery within a 150-mile radius on 98 percent of orders.
The Value Added Services segment of Marmon/Keystone supplies customers with finished or semi-finished parts rather than raw stock. This business offers more than 150 services such as machining, honing, drilling, threading, and fabrication.
Marmon/Keystone recently expanded its Value Added Services at its Atlanta and Los Angeles metal service centers by installing laser tube cutting machines. These machines can process steel, stainless steel, and aluminum round, square, rectangular, and oval profiles, and precisely produce tubular parts with slots, holes, and mitered ends. The machines also enable greater flexibility in part design than was possible using traditional hard tooling methods.
Future Metals serves the global aerospace industry with tubing, extrusions, bar, and sheet products made from stainless steel, aluminum, titanium, and nickel alloys.
Bushwick Metals supplies the structural fabrication, construction, and industrial markets with a broad line of products including steel beams.
Fabricated rebar for concrete reinforcement is vital to a building’s structural integrity and one of the first steel products required on site as the entire project schedule depends on timely pouring of the foundation. Traditional rebar fabrication is labor intensive and physically demanding work. Bushwick’s facility in Binghamton, N.Y., which provides cut and fabricated rebar, recently invested in new automated equipment to improve operating efficiency and employee safety. Capacity gains related to the new equipment have allowed Bushwick to meet more customers’ tight delivery deadlines and expand its project service area.
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Marmon Engineered Components Company
Tubing, Fittings & Wire Products Sector
First, RLS® Press Fittings introduced pressto-connect copper fittings engineered for high-pressure refrigeration lines used in the air conditioning and refrigeration industries. Now, RLS has expanded its technology platform to offer the first press-to-connect system for high-pressure aluminum refrigeration joints. The patented RLS fittings eliminate the need to manually braze aluminum or copper joints, a difficult and time-consuming process. Benefits include reduced installation time, lower total installed costs, greater consistency, and significantly improved safety by eliminating the need for an open flame. Using RLS press tools, a typical RLS connection—aluminum or copper—can be made in less than 25 seconds, without a heat source, on-site tube preparation, or sealant.
Cerro Flow Products produces linesets for heating and air-conditioning installations.
Copper tube from Cerro Flow Products is used in a wide variety of industrial markets, as well as residential and commercial plumbing.
Penn Aluminum produces drawn aluminum tubing and extruded aluminum shapes for the construction, automotive, appliance, medical, and other markets.
Cerro Wire focuses on the needs of electrical contractors with products such as True Sequential Footage™ wire (above right), sequentially-printed cable that provides accurate wire length with each cut, and color-coded wires packaged onto the same reel (above left).
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Cerro Wire manufactures copper electrical wire for interior wiring in residential, commercial, and industrial buildings. The company’s products are sold to contractors through wholesale electrical distributors.
Anderson Copper and Brass supplies brass fittings and forgings for commercial and industrial applications. Cerro EMS produces non-ferrous forgings (not pictured), both as-forged and machined, using conventional as well as fully automated equipment for a wide range of industries.
Marmon Engineered Components Company
Industrial Products Sector
Robertson, Atlas Bolt & Screw, and Pan American Screw serve the construction, industrial, and other markets with a wide variety of fasteners. Among its products, Pan American offers the patented Mantis® deck clip system, which creates a fastener-free decking surface. The hidden clips securely attach decking boards to the joists, leaving the tops untouched and free of any hardware.
Marmon’s Construction Fasteners Group expanded in 2015 with the acquisition of Western Builders Supply (WBS), which distributes a full line of construction fasteners to lumberyards, home centers, and farm and ranch supply businesses in the North Central and Rocky Mountain states. WBS specializes in star drive construction screws, lag bolts, and specialty structural fasteners widely recognized in the construction industry and sold under the Big Timber® brand.
Nylok’s patented fastener coatings are used for the self-locking, self-sealing, and protection of fastener threads. Primary markets include the global automotive and aerospace industries.
Cerro Fabricated Products supplies custom-machined aluminum and brass forgings to the construction, energy, recreation, and other industries.
IMPulse NC supplies overhead electrification equipment for mass transit systems. Recent innovations include a quick-lock cantilever system whose structural capabilities meet customer requirements for performance, ease of installation, and a visually appealing end product. The patented system (pictured in Toronto) features an internal pipe design that reduces product weight while still supporting the loads required of today’s infrastructure designs. A special outside groove allows for easy on-site adjustment, saving the customer time and money.
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Marmon Engineered Components Company Businesses
Marmon Engineered Components Company
Industrial Products Sector — continued
n Distribution
Wells Lamont Industrial manufactures and markets gloves and other personal protective equipment for industrial markets. The company provides cutresistant (pictured), heat-resistant, and other specialty gloves for many work environments and applications.
Services Sector
Marmon/Keystone Marmon/Keystone-Value Added Services Marmon/Keystone Canada Marmon/Keystone Mexico M/K Express Bushwick Metals Bushwick-AZCO Steel Future Metals Aircraft MRO Services
Fittings & Wire Products Sector
n Tubing,
Anderson Copper and Brass High Speed Forgings PEX & Copper Plumbing Fittings
Koehler-Bright Star provides specialized portable lighting equipment including flashlights, high-intensity spotlights, battery-powered cap lamps, batteries, and charging equipment used in environments such as mining, public safety, fire, utility, and industrial safety.
Cerro E.M.S. Brass Specialty Products Bailey Products Cerro Flow Products Plumbing/HVAC Products Industrial Products Linesets RLS Press Fittings Penn Aluminum International Level Wound Coil Bench & Profile Cerro Wire Eastern U.S. Division Western U.S. Division n Industrial
Products Sector
Fasteners & Fastener coatings Atlas Bolt & Screw Company Atlas Bolt & Screw (Shenzhen)
Tucker Safety Products designs and produces gloves and other protective apparel for commercial and institutional food preparation markets including restaurant kitchens, grocery stores, schools, hospitals, hotels, and catering services. Its products include BurnGuard® gloves, mitts, aprons, hot pads, sleeves, and other accessories as well as KutGlove™ cut-resistant gloves.
Pan American Screw Western Builders Supply Robertson Robertson (Jiaxing) Nylok Automotive Aerospace/Distribution Licensing Metal components Cerro Fabricated Products IMPulse NC Safety Products Koehler-Bright Star Wells Lamont Industrial (U.S.) Jomac (Canada) Procoves (Europe) Tucker Safety Products (U.S.)
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Marmon Food, Beverage & Water Technologies company
end Markets (% of 2015 revenues) D
E
C
A B
A B C D E
Retail Stores & Restaurants 57% Consumer 24% Energy, Mining & Petrochemical 9% Industrial 7% Other 3%
Geographic Markets (% of 2015 revenues) D C
B A
A B C D
North America 67% Europe 14% Pacific Rim 14% Other 5%
Each of the business sectors that make up our new Marmon Food, Beverage & Water Technologies Company made important advancements during the past year and, as a group, achieved a record high in GAAP operating margin percentage. These accomplishments are due to excellent 80/20 work by all of our businesses, especially in the Beverage Technologies Sector, which has successfully adopted and applied Marmon’s 80/20 business model since joining us via acquisition at the beginning of 2014. GAAP revenues were negatively affected by an unfavorable currency translation as well as declining energy and commodity prices that curtailed industrial projects served by our Water Technologies Sector. However, Marmon’s decentralized structure enabled our businesses to quickly adjust to changing market conditions and aggressively pursue their growth plans. Each of our sectors is sharply focused on its major end markets, serving customers with superior technology, continuous innovation, and an expanding presence in key regions. For example, in 2015 we fully integrated Filtrex, our recently-acquired drinking water technologies business in India, a business that is instrumental to our strategy to further penetrate high-potential geographies while also boosting our technology portfolio. Our Foodservice Technologies Sector launched several product lines that significantly enhance food durability and taste, benefitting both the restaurant industry and the dining public. This sector has also introduced important innovations that both make food preparation safer for restaurant employees, and equipment easier and faster to clean, vital concerns to the restaurant industry worldwide. Sector management has further segmented the businesses to align resources with the best growth opportunities, including an increased concentration on the high-potential Asian market. Our Beverage Technologies Sector created the most significant and advanced digital platform in its market and further developed its strategic portfolio of dairy and beer product lines, solving key industry challenges related to energy conservation and food transportability. Following extensive segmentation, 2015 was the sector’s first full year with a largely new management team in place. I am extremely proud of these
leaders, who have done a phenomenal job of embracing 80/20 principles and using Marmon’s 80/20 toolbox to focus on key customers. This sector exceeded expectations in Asia with a proactive approach to the local market, where both current and long-term growth prospects are tremendous. Our Water Technologies Sector faced significant headwinds, particularly in its industrial water treatment businesses, which were adversely affected by low oil prices and the resulting softness related to new project launches in the energy field. However, continuous innovation in our residential water treatment businesses, and a focus on aftermarket initiatives, helped to offset the slump in energy-related markets. We reshaped our industrial water group to cope with the new reality in industrial markets, and will bolster investments in the residential and commercial areas to sustain and accelerate the great pipeline of innovations we have built over the years. The sector has performed exceptionally well with its geographic expansion strategy, penetrating both India and China with residential water and air filtration products. Marmon innovations are significantly addressing the effects of the critical air pollution problem in urban areas of these countries. Our outlook for 2016 remains positive as industry economic trends mostly point in the right direction for our businesses, with the exception of oil markets, which remain a drag on our industrial water group. Our businesses are executing their growth strategies with several exciting innovation projects that will launch during the year, and with more to come as they continue to increase investment in research and development. All of our sectors will leverage our decentralized structure, the first principle of Marmon’s 80/20 business model, to stay close to their customers and ahead of the competition. Thanks to the exceptional people who form the core of our new company, I am excited about the future and confident we will achieve our goals this year and in the years to come. Fabrizio Valentini President & CEO Marmon Food, Beverage & Water Technologies Company 17
Marmon Food, Beverage & Water Technologies Company
Foodservice Technologies Sector
Prince Castle designs and produces food preparation equipment for the world’s leading quick-serve and casual-dining restaurants as well as other commercial and institutional markets. Equipment includes contact grills, hot food holding cabinets, high-speed contact toasters, steamers, timers, and related products.
Saber King is a modular foodcutting system that saves labor, improves safety, and maximizes space by allowing users to efficiently slice all types of produce on a single device. Interchangeable blade cartridges can slice, dice, and chop, for example, a full head of lettuce or four tomatoes at a time.
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Silver King provides refrigerated food holding cabinets and preparation tables, freezers, and other commercial products including milk and cream dispensers.
Marmon Food, Beverage & Water Technologies Company
Beverage Technologies Sector
The Refresh Pro unit from Cornelius can dispense up to 20 beverage brands with more than 3,000 unique drinks available when combined with four of the eight on-board flavor shots. The touch screen that controls the unit also plays marketing content linked to the beverage choice.
Cornelius serves global brand owners and foodservice retailers with a broad line of dispensing and cooling equipment for soft drinks, beer, ice, juice, tea, and frozen beverages.
Under-counter coolers from Cornelius recirculate the beverages to keep them cold upon serving.
Cornelius provides a variety of still and sparkling water dispensers with either integral or remote water carbonators, and built-in filtration systems.
Trade Fixtures manufactures merchandising displays, bins, and dispensing systems for the bulk foods sections of supermarkets and foodservice retailers worldwide.
Display Technologies supplies pointof-purchase equipment and develops in-store merchandising solutions for clients in the global foodservice and beverage markets. For example, the company’s Visi-Slide™ on-shelf management system is the industry standard for single-serve beverage organizers. Angled shelves use gravity to keep product at the front of the cooler.
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Marmon Food, Beverage & Water Technologies Company
Water Technologies Sector
EcoWater is among the world’s leading producers of residential water softeners and related equipment. Products are sold under the EcoWater name through an international dealer network as well as under licensed brands available at leading retailers. EcoWater’s Wi-Fi Softener with HydroLink Plus® technology makes it possible for a homeowner to remotely monitor and manage water use, and the system alerts users when softener salt is needed or when potential issues are detected.
removing lead and other contaminants KX Technologies produces residential drinking water filtration systems to remove lead, other heavy metals, industrial pollutants, chemicals, pharmaceuticals, and chlorine taste and odor. KX incorporates the latest in extruded carbon block technology as well as its patented Fibrillated Adsorbent Cellulose Technology (FACT®) media to remove contaminants and improve the safety, taste, and smell of drinking water in homes worldwide. KX’s portfolio includes a range of products to fit consumers’ budgets, safety concerns, and where they want to filter including whole home systems, under-sink systems, countertop drinking water products, and refrigerator filters.
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Building on its EcoPure® brand of residential drinking water filtration products for Asian markets, Kunshan EcoWater has introduced air purifiers for the home. Incorporating patented filtration technologies, the purifiers meet an important need in metropolitan areas where air pollution is a dire problem. EcoPure products are available in China through EcoWater dealers, department and appliance stores, and online channels.
Marmon Food, Beverage & Water Technologies Company Businesses
n Foodservice
Sector
Technologies
Prince Castle Prince Castle China Saber King Silver King Catequip & Cat’Serv Epuro n Beverage
Technologies Sector
Cornelius Cornelius Americas Cornelius Asia-Pacific Cornelius Europe-Middle East 3Wire Group Display Technologies Trade Fixtures n Water
Ecodyne Limited provides industrial water treatment systems for markets including power generation, oil and gas, and chemical.
Graver Technologies produces industrial water filters to remove trace contaminants and purify process water and other fluids and gases.
Technologies Sector
north America retail Water Products EcoWater Systems North America Retail Products KX Technologies Retail Products north America Professional Products ecoWater europe ecoWater Asia Kunshan EcoWater Marmon Product Development Center (Singapore)
Amarillo Gear serves the air-cooled steam condenser market with parallel shaft gearboxes that are typically used in the power generation, chemical, and process cooling industries. In conjunction with a motor and fan, the gearbox provides airflow for cooling.
residential Water Filtration Products KX Technologies Filtration Products KX Technologies Research & Development Filtrex Technologies (India) Aqua Works (India) Industrial Filtration Graver Technologies Adsorbents Graver Technologies Utilities Graver Technologies Industrial Filter Graver Technologies Liquid Filter
Amarillo Gear manufactures right angle fan drives for cooling towers found in power plants and petrochemical facilities, and industrial pump drives (pictured) used in applications including fire protection, municipal water, and flood control systems.
Industrial Water Ecodyne Equipment Ecodyne Aftermarket Graver Water Systems Equipment Graver Water Systems Aftermarket Industrial heat exchangers Ecodyne Heat Exchangers Equipment Ecodyne Heat Exchangers Aftermarket Ecodyne UET Heat Exchangers Equipment Ecodyne UET Heat Exchangers Aftermarket
Ecodyne Heat Exchangers produces modular, standardized air-cooled heat exchangers for industrial applications.
Industrial Gears Amarillo Gear Amarillo Gear Service Astha Amarillo Gear (India) Amarillo Wind Machine
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Marmon retail & highway Technologies company
end Markets (% of 2015 revenues) E F D A
C
B A B C D E F
Heavy-Duty Vehicles (OEM & Aftermarket) 37% Retail Stores and Restaurants 26% Construction and HVAC 18% Transportation Providers 12% Consumer 5% Other 2%
Geographic Markets (% of 2015 revenues) B
CD
A A B C D
22
North America 88% Europe 8% Pacific Rim 3% Other 1%
The successful application of Marmon’s 80/20 business model drove our continued growth in earnings in 2015. Our Highway Technologies Sector, a well-oiled 80/20 machine, proved again that decentralized, niche-focused, innovation-driven businesses are a recipe for success. Meanwhile, our various Retail Technologies sectors each responded to a very dynamic global retail marketplace by applying 80/20 principles throughout their businesses. As a result, they are better positioned in the marketplace for the future. As our name indicates, the newly-formed Marmon Retail & Highway Technologies Company brings these two market-based business groups together under common Marmon management. Autonomy and decentralization will only increase under this structure as we further focus the Retail and Highway businesses into product/market niches. Our business groupings, each led by market experts, will be better prepared than ever to quickly respond to end-market needs. As 80/20 dictates, we will apply the appropriate resources, talent, and strategy based on the growth potential we see today and in the future. Momentum from 2014 carried through to 2015 in the Highway Technologies Sector, producing a sixth straight record year. A seventh record year is targeted, but it will be a fight to achieve. Oil and gas pricing and Class 8 truck volume declines weighed heavily on various businesses within the sector in the second half of 2015, and those negative impacts have continued into the start of 2016. Despite these challenges, we continue to deliver growth through new innovative niche products, a strong automotive aftermarket, and increased bid activity in the military market. Reflecting both its growth and its ongoing commitment to segmentation, Highway Technologies now has been divided into two sectors—Highway Components and Trailer & Truck Products and Services. The past year was an important one for our Retail Science and Retail Store Equipment Sectors as we adapted to the dynamic retail environment. Instead of trying to predict the direction of retail—a daunting task,
at best—we have rearranged, restructured, and refocused our businesses to be variable in cost, lighter in footprint, market centered, and more commercially adept, allowing us to respond quickly to the varying initiatives of retailers and brands alike. Gone are the days of massive new store builds. Our strategy requires products and services that reduce costs for our customers and help them increase sales. Thanks to team efforts, we are poised to increase our involvement in the grocery, cosmetics, and automotive retail markets, all designated growth platforms for us. No discussion of 2015 is complete without mentioning the impact of low commodity prices and the strong dollar. Repercussions of each were strongly felt within our Retail Products Sector. Falling copper prices have greatly affected revenues as these reductions are passed through the highly competitive retail wire and tube divisions. Competitive pressures continue from China as the yuan is devalued, impeding some of our “Made in the U.S.A.” initiatives and prompting some retailers to source products directly from China. Innovation is the weapon of choice to battle these forces, and it is being applied with vigor within our Wells Lamont Retail and Campbell Hausfeld businesses. Product and business model innovation is a critical part of our plan. Our progress is a tribute to our market and product experts and their tireless application of the 80/20 themes of focus and innovation. The true key to our 80/20 business model are these hard-working men and women who understand their customers and markets better than anyone else in the industries we serve. Success is measured by a dedicated and energized workforce delivering customerpleasing products while yielding strong returns to our shareholders. We look forward to 2016 and beyond with optimism. Mark A. Carrier President & CEO Marmon Retail & Highway Technologies Company
Marmon Retail & Highway Technologies Company
highway components Sector
Brakes work better and last longer at cooler temperatures. Webb Wheel Products, which manufactures brake drums, rotors, and hubs for heavy and medium-duty trucks and trailers, focuses on heat transfer efficiency. Webb’s Vortex® brake drums with CRT ™ (Cool Running Technology) last up to 25 percent longer even in the toughest class 6, 7 and 8 truck and trailer applications. Webb Wheel’s LifeShield™ provides an invisible protective layer across the entire rotor surface to fight corrosion and provide greater wear resistance.
Fontaine fifth wheels are used to safely and efficiently couple trucks and tractors. With Fontaine’s CleanConnect™ technology, the fifth wheel no longer requires grease to lubricate between the top plate surface and the trailer coupling plate, eliminating the associated labor costs, materials, and downtime.
Webb Wheel now offers a complete line of automatic slack adjusters designed to optimize braking performance and component life. Webb uses the proven clearance-sensing design for its standard automatic slack adjusters and a patented design for its self-setting adjusters. Specific brake adjuster models are available for line haul truck and trailer, severe duty, transit, and motor coach applications for OEMs and the aftermarket.
TSE Brakes produces air brake actuators and undercarriage brake service parts for heavy-duty vehicles. Products include the UltraLife actuator with Visi-Chek™, a patented brake stroke indicator that allows drivers and maintenance personnel to easily and quickly see whether a vehicle’s brake stroke meets regulatory standards. If the indicator shows any green, the system is functioning properly, but if only red is visible, further inspection is required. The indicator is designed to be read in low light conditions where the brake chambers are located.
Marmon’s Automotive Aftermarket Group supplies specialty engine and suspension parts for the automotive aftermarket, serving the largest national retailers and auto repair specialists in the U.S. and Mexico. Products include Perfection clutches, fuel pumps, mass air flow sensors, brake hydraulics, and related components.
A recent acquisition expanded the Automotive Aftermarket Group’s product portfolio to include engine and transmission mounts, now offered under the Marmon Ride Control brand.
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Marmon Retail & Highway Technologies Company
Trailer & Truck Products and Services Sector
Fontaine manufactures heavy-duty flatbed and drop-deck trailers, including the top-selling aluminum and steel Infinity™ model, and specialpurpose trailers such as the all-steel Velocity™ model designed specifically for the poultry industry. Features of the Velocity include a lower center of gravity and wider deck for even greater stability, and front and rear bulkheads.
Fontaine Modification adapts heavy and medium-duty trucks for a wide range of applications for customers including manufacturers, dealers, and fleets. For example, Fontaine supports waste management companies and municipalities by providing sit-down, dual-drive modifications on many commercial truck models. Street sweeping, road striping, and refuse collection vehicles all require dualdriving stations to operate efficiently.
Fontaine Spray Suppression provides fenders and other spray suppression products under the Hogebuilt (pictured), Fleetline, and Nu-Line brands.
Sisu Axles supplies heavy-duty axle sets to commercial truck and specialty vehicle manufacturers worldwide. The tridem axle combination (pictured) features a special construction that allows equal torque distribution on all axles. The front axle is a drive-steered axle and the two rear axles are driven-rigid axles.
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Marmon-Herrington provides axles, transfer cases, and other severe-duty drivetrain products such as this extreme heavy-duty front drive axle for use in vocational all-wheel drive applications.
Marmon Retail & Highway Technologies Company
retail Science Sector
The Retail Science Sector uses its Computer Aided Virtual Environment (CAVE) to develop retail merchandising solutions for global brands and retailers. The technology allows retailers to experience, test, and refine designs, and see exactly what their customers will see—without the cost of expensive prototyping.
DCI-Artform creates marketing programs and products for a variety of retail settings including digital displays for automobile showrooms.
The CAVE facilitates the design of retail environments by enabling clients to immediately view options such as colors and finishes using a pop-up menu.
DCI-Artform focuses on the transportation, cosmetics, grocery, and consumer electronics markets. The business specializes in retail environments, merchandising displays, digital merchandising, marketing programs, and security solutions.
DCI-Artform’s security solutions protect the merchandise while also enhancing the brand image.
Commercial Zone Products designs and manufactures site furnishings for retail and convenience stores, service stations, restaurants, and hotels. Products include recycling and waste containers, cigarette disposal receptacles, and more.
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Marmon Retail & Highway Technologies Company
retail Store equipment Sector
Unarco is North America’s leading designer and manufacturer of shopping carts for retail stores. The company produces both metal and plastic carts.
Unarco’s Tight-Nest™ shopping carts save valuable retail space by fitting closer together, without sacrificing any basket capacity. The design also lowers freight cost. Unarco is now applying the same principles to larger model carts.
Unarco refurbishes metal shopping carts and returns them to service, providing both cost and environmental benefits. Many carts also can be retrofitted to include the latest design features.
Marmon businesses in North America, Europe, and Asia provide a wide variety of merchandising solutions to grocery and other leading retailers. For example, Retail Space Solutions designed its SpaceDriver® display system to improve merchandising aesthetics, reduce in-store labor, and help shoppers easily locate product on the shelf, ultimately driving sales. SpaceDriver’s patent-pending push system works with an array of merchandise categories including boxed items, jars, cans, and frozen and refrigerated foods. The system also features a controlled movement pusher that gently front-faces stacked, lightweight, and fragile items. SpaceDriver adjusts vertically in half-inch and one-inch increments to maximize selling space.
retail Products Sector
Cerro Retail Products serves do-ityourself consumers with electrical and plumbing products sold through home improvement stores and other retail outlets. Products include Flexzilla® Pro premium extension cord, a kink-free, high-visibility power cord, engineered to remain flexible even in cold weather. The lighted indicator end, glow-in-the-dark stripe, and grounded plug enhance safety.
Campbell Hausfeld manufactures air compressors (pictured), tire inflators, paint sprayers, pressure washers, and related products sold through home improvement centers and other retail stores.
Data communications cable manufactured by Comtran is sold through the retail channel.
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Marmon Retail & Highway Technologies Company Businesses
n highway
Sector
components
Automotive Aftermarket Perfection Brands
Cannon Equipment designs and produces material handling carts and related equipment used by diverse industries and institutions for storage, stocking, security, work-in-process, and distribution applications.
National Brands Retail Brands Perfection Mexico Marmon Ride Control Products Fifth Wheels Fontaine Fifth Wheel OEM Fontaine Fifth Wheel Aftermarket Fontaine Fifth Wheel Europe Wheel end Products Webb Wheel Aftermarket
Cannon also produces automation equipment used in the dairy, bakery, and other industries. Products include palletizers, cart washers, and the new WhisperPak dairy case packer. This equipment is designed to handle both corrugated cases and traditional plastic milk crates, reducing the need for multiple units. In addition, it has significantly fewer moving parts, reducing potential for injuries, lowering maintenance costs, and increasing production efficiencies.
Webb Wheel OEM Trailer Webb Wheel OEM Specialty Truck Webb Wheel Slack Adjusters TSE Brakes
& Truck Products and Services Sector
n Trailer
Transportation equipment Fontaine Platform Trailers Fontaine Heavy Haul
n retail
Science Sector
DCI-Artform North America DCI-Artform Europe Commercial Zone Products L.A. Darling Company Sloane Streater
Store equipment Sector
n retail
Eden (United Kingdom) Eden Europe (Czech Republic) Leader Metal Industry (Asia) Commercial/Industrial Products Retail Fixture Products Retail Space Solutions Store Opening Solutions Cannon Equipment Unarco Industries Unarco Industries China n retail
Products Sector
Campbell Hausfeld Cerro Retail Products Wells Lamont Retail
Fontaine Intermodal Fontaine Military Products Fontaine PartSource Fontaine Select Fontaine Floor Technologies commercial Truck
Wells Lamont Retail supplies many styles of work, garden, and general purpose gloves, and work socks sold in more than 15,000 home improvement, hardware, and other retail stores across the U.S.
Fontaine Modification Fontaine Spray Suppression Triangle Suspension Systems Severe Duty undercarriage Marmon-Herrington Sisu Axles Sisu Aftermarket Sisu OEM
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Marmon’s heritage of Innovation-Driven excellence The 100th running of the Indianapolis 500 automobile race in 2016 recalls Marmon’s ties to Ray Harroun and the Marmon Wasp he drove to victory in the first Indy 500 in 1911. (The race was not held in the years of U.S. involvement in the two world wars.) Mr. Harroun is best known for the 6 hours, 42 minutes, and 8 seconds it took to win that first race, at an average speed of 74.6 mph. However, while the Marmon Wasp made him famous, it did not make the man. Rather, the man made the car. A part-time racer, Mr. Harroun was foremost an engineer for the Marmon Motor Car Company (1902-1933), an early producer of fine passenger cars. He designed the six-cylinder Wasp, so named for its yellow and black color scheme, from stock Marmon engine components. Unlike most racecars of the period, the Wasp was built with a smoothly-cowled cockpit and a long pointed tail to reduce air drag. Mr. Harroun also came up with another innovation—a little item called a rear view mirror. He was the first driver to race without a riding mechanic to watch for cars from behind. Only 29 years old at the time of his victory, Mr. Harroun soon retired from competitive
© 2016 Marmon Holdings, Inc.
racing. However, he was far from finished with any other aspect of his career or life. He showed his staying power by taking a 50th anniversary lap in the Wasp at the Indy 500 in 1961. About the same time, the organization today known as Marmon Holdings comprised a dozen businesses, but lacked a name for the growing group. One of those businesses was Marmon-Herrington, a manufacturer of axles and other heavy-duty drivetrain products that had been cofounded in the early 1930s by Walter Marmon, president of the old Marmon Motor Car Company. The Marmon name was adopted in 1964 to connote excellence in innovation, engineering, and performance. Today, innovation is an essential part of Marmon’s 80/20 business model. Emphasizing practical innovations that our customers need and value, Marmon businesses invest in first-class technical expertise, well-equipped research and development labs, and rapid prototyping capabilities. Most important, however, are the inventors who provide the critical creative thrust for progress. The best companies have the best people. We think Ray Harroun would agree.
181 West Madison Street, 26th Floor chicago, Illinois 60602-4510 Phone 312-372-9500 Fax 312-845-5305 www.marmon.com
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