May 17, 2022

Investing in the Future

Newberry Tanks Announces New Innovative Manufacturing Facility

Despite the numerous obstacles presented over the last two years in the wake of the Covid pandemic—rising steel costs, supply chain disruptions, economic downturns—Newberry Tanks met every challenge head-on. And triumphed.

The pandemic aftermath wasn’t a holding pattern for Newberry but rather a season of intense growth. A time to redirect business models to an Entrepreneurial Operating System (EOS) to step out of working in the business to focus on the business. A time to implement the Tank Tracker three-call system to ensure on-time and reliable delivery. A time to create a Preferred Customer Program with on-demand, in-stock supply of tanks for participating customers.

These investments in the company netted significant gains in both revenue and customer focus.

In 2021, Newberry reported an increase in the number of tanks produced by 16% and there was a marked shift to larger orders with most companies buying 21-99 tanks yearly. Over the same time period, 100% of customers interviewed reported they were “very satisfied” with their experience and many of those advised Newberry to “keep doing what you’re doing.”

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New Memphis Facility

And for Newberry, to keep supplying quality products with excellent service and reliable delivery considering the ever-increasing demand, there was another needed investment: a cutting-edge new facility.

In March of 2022, Newberry announced the opening of its newest state-of-the-art tank manufacturing facility in Memphis, Tennessee. The 40,000 sq. ft. facility effectively doubles their manufacturing and storage capacity in Memphis.

This innovative facility revolutionizes Newberry’s manufacturing processes and showcases their quality commitment by:

Increasing Productivity

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Enhancing Paint Application

The new Memphis facility streamlines workflow on the production floor, and significantly increases throughput. While the old Memphis facility maxed out at 1,250 lube tanks, the new facility will ultimately triple production for Rectangular Lube Tanks while adding capacity to support up to six new workcells for cylindrical tanks.

Eliminating Stop-And-Go

“Stop-and-go” in manufacturing is the number one killer of lean practices. Minor stops on the production floor can end up in major losses: time losses, productivity losses, opportunity losses. And these losses wouldn’t be solely felt by Newberry. Quite often, they can lead to delays in order fulfillment, which can lead to lost revenue and lost opportunities for their customers.

Newberry’s new facility in Memphis is designed with a more streamlined workflow, from material handling, to production, to finishing and shipping, with significant reductions in stoppages.

High-quality paint jobs are about more than aesthetics when it comes to your steel tank. The true lifespan of your tank depends on it. Without an effectively-applied protective paint coating, welded steel tanks are susceptible to the destructive effects of corrosion. In essence, a steel tank is only as good as its coating system.

Controlled painting environments and innovative practices are necessary to ensure all surface preparations are completed and coatings are appropriately prepared and applied for maximum, sustained protection. Tanks are moved via an overhead tract system instead of forklifts through the finishing process. Painting is accomplished using cutting-edge paint application technology. Having access to a heated, controlled environment and cutting-edge technology in its new facility, Newberry Tanks can ensure its products are given the highest standards of quality control and finished in a timely and efficient manner to defend against the life-reducing effects of unchecked corrosion.

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New paint cell

Adding New Office Space

As operations grow, so do the needs for a full infrastructure of support functions. The new facility boasts a significant addition of office space to house Newberry’s HR, Logistics, Purchasing, and Engineering departments. These fully-functional, modern work environments favorably impact Newberry’s ability to attract and recruit top talent in this competitive job market as well as support the growing needs and demands of the industry.

Opening this new facility ensures that operations are more scalable as the business continues to grow. Newberry is positioning itself to expand production capabilities for future demand and exceptional on-time delivery.

As production capacity increases, the need for skilled welders and fabricators will be another paramount investment for the company. Newberry anticipates tripling its workforce in Memphis by the end of 2022. Its history of being “a best place to work” and its long-term partnerships in the Memphis community, should allow them to meet this goal.

“This is exciting growth for Newberry and an example of our long-standing commitment to the Memphis and West Memphis communities,” said Matt Kohnke, President and COO of Newberry Tanks.

Author: Newberry Tanks