One Call, 57 Solutions: How the Metals Hub is Creating New Opportunities for Local Manufacturers

On May 18th, Elliott Benitez, a Chicago area entrepreneur with a proven household appliance visited the Metals Hub booth at the Design 2 Parts show in Schaumburg, IL. Mr. Benitez had walked the show floor with a sample of his product on a cart. He was searching for someone who could help bring the manufacturing of his product, the Nuni Taco Toaster, back to the United States from China. After an extensive discussion with the Hub’s field director, it was made clear to the entrepreneur that nearly all of the parts required for his toaster could be made in the Southland by members of the Metals Hub. Arrangements were made for further discussions.

The Metals Hub is a one-of-a-kind venture. In 2021 the Southland Development Authority (SDA) and Cook County started a quiet initiate to explore the potential of creating a network of metal manufacturers in South Cook County. A positive response from dozens of one-on-one meetings and telephone calls with manufacturing executives led Cook County President Toni Preckwinkle to launch the Metals Hub on June 17th , 2022. The Hub’s product is the combined capabilities of 57 individual metal and equipment manufacturers companies. That product includes 61 different process capabilities: 23 machining, 26 fabrication, 6 finishing, and 6 miscellaneous processes. (See sample)

With this “product,” the Hub team knew immediately what Nuni components could be produced by Hub participants. Three (3) business days after the initial meeting, the entrepreneur was on a personal tour set up and hosted by the Hub to meet metal manufacturing executives and tour facilities where his components could be fabricated. The full story is yet to unfold, but the opportunity is clear: a call for help at a trade show could lead to new business opportunities for 8 or more metal manufacturers with the required capabilities to become suppliers for a national product. This is an opportunity that could not have happened without the Hub bringing together an original equipment manufacturer and Southland metal manufacturers. The Hub’s competitive advantage is simple: One call – 57 potential solutions!

Opportunity Notices and Referrals

The Metals Hub officially opened for business on June 17 th , 2022 to begin the formation of a network of equipment and metal manufacturers in the Southland. The goal, stabilize and retain metal companies and grow the metals employment base.
As a start-up, while touring individual metals companies to “inventory” the Hub’s product, each individual company’s capabilities, the Hub team focused on identifying what employers needed and identifying other Southland companies that could fill that need locally to avoid the work and payment from leaving Cook County. These simple referrals are a form of export substitution. When a service is performed locally by another manufacturer, those dollars are kept in Cook County to circulate through other businesses adding to the local economy. According to the National Manufacturer’s Association*, every $1 spent in manufacturing provides a total impact equal to $2.60 for the overall economy. During the first year, 13 internal business input needs were identified and another 14 new
business opportunities originating outside the Southland were identified. These 27 business opportunities were distributed to 28
different manufacturers. Most had the opportunity to consider more than one of these business opportunities. Unfortunately, many leads do not mature into real projects for various reasons. But these introductions could still create a future buyer/supplier relationship. Others leads from trade shows and direct marketing are still evolving and more work will be required to create
opportunities.

These opportunities have produced only few successes. Early successes – new business secured – have been limited because of the triple-challenges of: 1) the Covid-19 lockdown, 2) a skilled worker shortage or manufacturers, and 3) the pent-up demand (orders to rebuild inventory) brought about by the Covid-19 lockdown have soaked up the much of the capacity of metal manufacturers, and 4) the Hub is at avery early stage of development with more work needed to prepare for and set-up some lead
generation like missions and the website. None the less, the opportunity is clear. And, with the easing of the Covid-19 order backlog, businesses will be able to take on new supply relationships identified by the Hub.

* Facts About Manufacturing | NAM

Hub Events

The Metals Hub is a one-of-a-kind venture. In 2021 the Southland Development Authority (SDA) and Cook County started a quiet initiate to explore the potential of creating a network of metal manufacturers in South Cook County. A positive response from dozens of one-on-one meetings and telephone calls with manufacturing executives led Cook County President Toni Preckwinkle to launch
the Metals Hub on June 17 th , 2022. The Metals Hub is the first business development focused working group in the Southland. While many business and even manufacturing groups are present, each has a defined role and appeals to different executives for different reasons, like workforce solutions. This gap in the entrepreneurial support landscape meant it was difficult for company executives to meet one another and learn about their mutual business services. The Hub is working to close this gap by organizing manufacturer only social events and business development trade missions. At the very first Founders meeting Henry Peterson, Machining Systems met Nancy Wilson, Morrison Container Handling Solutions. Morrison is an original equipment manufacturer in the Southland. In January 2022, Morrison contacted the Hub asking for referrals to companies that could provide machining services for some parts. The Hub provided names and contact information for 5 Hub members including Machining Systems. Morrison selected Machining Systems to do the work. At the Hub After Hours event in March, Ryan Marks, UESCO and Henry Peterson,
Machining Systems met for the first time. As a follow-up to the meeting, UESCO reached out to Machining Systems to secure some needed work. Machining Systems won the work solving a problem for UESCO and creating a new supply relationship for Machining
Systems.

In September, Ed Freimuth, Versitility Tool had a company booth at the Design 2 Parts show in Schaumburg, in September. The Hub field team stopped at the Versitility booth to say hi and invited Ed to stop by the Hub booth to see the Hub’s parts display which
included Versitility parts. Later in the afternoon when Freimuth arrived at the Hub’s booth, he was introduced to Manny Arevalo, Camco by one of the Hub team who happened to be working in the booth. Camco parts were also included in the Hub display. As Freimuth and Arevalo discussed the Camco parts, Freimuth mentioned an open request for proposal he wanted to respond that required a double tapped screw. He asked Arevalo if he would be interested in being part of the proposal for the project
and Arevalo agreed. By hosting manufacturer only events, the Hub provides partners the chance to meet with peers and
discover new buy/supply relationships which can keep work in the Southland allowing the money to
continue to circulate locally providing an economic impact of $2.60 for every $1 of manufacturing
service kept in Cook County.