Over the past several years, American manufacturing has faced the challenge of a diminished pool of skilled labor. For many, this is a relatively new phenomenon that could not come at a worse time. As pressure from overseas competition has increased, better processes and a highly skilled workforce are key elements to success. For Dixie Iron Works of Alice, Texas, the shortage has been longstanding problem, as the company is located in a city that has never contained an overabundance of skilled labor.

Founded in 1933, Dixie has served the Texas oil industry through a variety of products and services for over 70 years. Since 1999, the company has specialized in the production of high-pressure plug valves and mobile well service pumps for oilfield applications. This focus has provided success and rapid growth, with the total number of employees rising from slightly over 100 to 160 in just a few years. Historically, Dixie was used to developing its own skilled labor, but never before had it required such a massive addition over such a short span. To meet the challenge, the company used the knowledge it had acquired over time to develop a comprehensive system for building a skilled labor pool from the ground up.

“For a long time, we’ve known that retention of workers was vital when operating in an area with a limited supply of skilled labor,” says Gerard Danos, president and owner of Dixie Iron Works. “We foster a family atmosphere and go out of our way to create a positive work environment for our employees. This recent spurt of growth, though, required the evolution of our methods for growing our labor force.”

When Mr. Danos talks about Dixie’s success in developing skilled labor, he inevitably mentions the company’s sophisticated hiring process, in-depth training courses and Mori Seiki machining centers.

“We start by identifying candidates that possess an aptitude for becoming a machinist,” says Mr. Danos. “We follow that up with a comprehensive approach to training, but it’s equally important that we have the most durable machines possible. When you’re dealing with new machinists, it’s a given that there will be programming mistakes from time to time. We need machines that can take a bit of a beating without losing accuracy or resulting in machine down time. We get that from Mori Seiki.”

Since very few potential employees have relevant experience in manufacturing, Dixie has established a unique approach to the hiring process. Interested applicants participate in an online test that provides indicators in such areas as work ethic and an ability to function in a team. Those that provide results matching Dixie’s business philosophy are then interviewed both by members of management and a foreman from the shop floor. Finally, applicants undergo a specialized online test to measure aptitude.

The aptitude test represents a significant achievement for Dixie. To create it, the company identified its top-performing machinists and then conducted in-depth analysis of the core traits that cause them to excel in their jobs. Baselines were then established for a wide variety of areas, such as math skills and geometric interpretation abilities. Dixie’s aptitude test measures an applicant’s core abilities in these areas without requiring any knowledge of machining. In effect, the test reveals those who have the potential to become excellent machinists.

Once an applicant has demonstrated an aptitude for the job and been hired, an immersive training process begins. During the first 90 days following his or her hire, the employee undergoes a wide variety of training in areas ranging from safety and quality to actually setting up, programming and running a machine. Instructional DVDs, written materials and online tests provide the employee with a wealth of information. Additionally, each new employee is paired with one of the shop’s top machinists who acts as mentor for the 90-day period, sharing practical knowledge and providing hands-on experience.

Despite the extensive screening and training procedures, Dixie still encounters an above average amount of crashes. To minimize the effects of this on its overall operations, Dixie invests in Mori Seiki machines.

“All of our operators perform their own setups,” explains Mr. Danos. “Since most have no previous experience in machining, it’s not atypical for a new employee to miss a decimal point or make some other type of mistake from time to time. We use Mori Seiki machines in the shop because their rugged construction allows them to take a beating without ruining the machines’ performance or accuracy.”

Even without the increased risk of operator error, Dixie would still be placing uncommonly high demands on its machines. The company works nearly exclusively with high carbon alloy steel, usually 4140 or 4340 grades. To boost productivity, Dixie typically runs machines with the spindle load as close to 100% as possible. Mori Seiki has proved a perfect fit for this rugged environment.

“The Mori machines have really delivered what we need from them,” says Mr. Danos. “We still have our first Mori Seiki machine, an SL-2 lathe, that was purchased in the early 80s. It’s still running two shifts a day and still meeting our quality standards.”

The choice of machinery has proved beneficial in other ways complementary to Dixie’s unique situation. With large portions of its workforce comprised of newly-trained machinists, some set-up times are not as efficient as if a seasoned operator was running the machine. While the Mori Seiki machines’ sturdiness guard against downtime resulting from error or harsh cutting conditions, they also provide a rigidity that boosts productivity. Dixie has found the latest generation of machines to be a significant step ahead of their predecessors in this regard.

Most recently, Dixie acquired a Mori Seiki NH8000 DCG^® horizontal machining center featuring DCG (Driven at the Center of Gravity) technology. The extra rigidity provided by the new technology has allowed much higher metal removal rates. A large pump component machined from a block of 4340 modified steel has experienced dramatic productivity increases, with the cycle time of one major process dropping from 4.5 hours to just 40 minutes.

Prior to the NH8000 DCG, Dixie had acquired an NL2500 turning center with live tooling. Due to the materials being cut, previous turning centers had lacked live tooling robust enough to adequately perform needed drilling operations. This caused several pump components to require 3 separate setups. With the ability to now complete an entire component in one setup, the shop has eliminated 67% of the setup time for these jobs.

“The design of the machines is what makes them so valuable to our operations,” said Mr. Danos. “It comes down to durability and rigidity. Durability minimizes our downtime and rigidity maximizes our productivity and accuracy. Mori Seiki is easily the best choice for our shop.”

When challenges arose, Dixie Iron Works met them through the combination of unique hiring and training programs and carefully selected machinery. By recognizing its own needs and acting innovatively to meet them, the company has succeeded both in the face of global competition and while faced with a shortage of labor. While this success may be an inspiration, Gerard Danos stresses that it is also within reach of the whole of American manufacturing.

“Currently, there are a lot of challenges facing manufacturers in the United States,” says Mr. Danos. “The most important thing for us all to remember is never stop learning and never stop improving. Our country has always succeeded because we grow stronger and smarter in the face of competition. Those same principles apply today. Live by them and you will succeed.”