Brake drum maker moving in

KIC Group’s contract with Rockford Automated Machining will bring 40 jobs.

By Sean F. Driscoll

BusinessRockford.com

A Washington-based brake drum manufacturer is relocating some of its machining work from China to Rockford, echoing a trend that’s becoming more common in North American factories.

The KIC Group is contracting with a new local company, Rockford Automated Machining, to make raw brake drum casings once manufactured in China. Rockford Automated Machining, created by the owners of FAC Consolidated Industries, will employ about 40 people at its 840 Airport Drive location.

John Schneider, vice president of sales for KIC, said multiple factors have eroded the Asian competitive advantage — increased ocean freight charges, the rising price of raw iron ore and the strengthening of the Chinese currency against the U.S. dollar.

“KIC made the strategic decision about a year ago to diversify our supply base,” he said. “Being a contract manufacturer has enabled us to move fairly quickly.”

KIC contracted some business to Mexico in 2007 and started conversations with FAC after a cold call to the office in February. Schneider, who once worked for the Gunite Corp.’s parent company, was familiar with Rockford and knew the now-defunct Cherry Valley Tools did the kind of work they needed. FAC had purchased the Cherry Valley Tools building and its assets, and eventually won the contract with KIC.

Julie DeRousch, a sales and marketing official with FAC, said some production is under way at the facility now. The machining line is still being readied for full-scale work, which should start within a month.

Janyce Fadden, president of the Rockford Area Economic Development Council, said Rockford Automated Machining’s size fits in well with Rockford’s landscape. Of the 1,000 manufacturers in town, 750 of them have 50 or fewer employees.

“It’s a big deal,” she said. “Bringing in 40 jobs is an outstanding addition.”

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.