New Factory Flush with Hydropower: So That Happened

Editor’s note: Welcome to So That Happened, our editors’ takes on things going on in the manufacturing world that deserve some extra attention. This will appear regularly in the Member’s Only section of the site.

Data Center Growth Drives One Purchase, One Sale 

With so many manufacturing markets flat or down, companies are focusing their attention on the brightest spot in the economy—data centers that host the computing power needed to animate artificial intelligence systems (I, for one, welcome our new technological overlords).  

So, of course, we need to talk about a nearly 150-year-old air conditioning company and a steel tube manufacturer. 

Trane Technologies, a company that claims Ireland as its headquarters for tax reasons but is really a Wisconsin company dating back to 1885, this week purchased Florida-based Stellar Energy International data center business.  

“The data center ecosystem is growing rapidly and evolving toward more agile, sustainable solutions, which is where Stellar Energy excels with leading co-engineered, modular solutions and a proven business model,” said Karin De Bondt, chief strategy officer, Trane Technologies. 

While much of the manufacturing focus to support data centers has come from electronic equipment, electrical switches and semiconductors, cooling is a huge need for that sector. Most data centers run thousands of computers using graphic processing units (GPUs) from NVIDIA, not central processing units made by Intel or AMD. Originally designed to make computer games more lifelike, GPUs run hot. Just look at the power gaming rigs used by esports enthusiasts, and you’ll see more real estate dedicated to fans and liquid cooling systems than anything else.  

In a data center, tightly packed GPU-heavy computers could easily overheat, destroying the equipment and generating  a massive fire risk without high-tech cooling options. It’s just one way that old manufacturing technologies such as hydraulic pumps are finding new applications in the high-tech world. 

As to the sale, Atkore Inc. (No. 317 on the IndustyWeek U.S. 500), is selling its Tectron steel tube division with a mill in De Pere, Wisconsin, to Lock Joint Tube. The goal is to shed the portions of Atkore’s business that don’t support electrical products for data centers and other industries. 

Atkore President and CEO Bill Waltz says the Tectron sale follows “a review of strategic alternatives to enhance focus on our electrical infrastructure portfolio.” 

The buyer, Lock Joint Tube, supplies automakers, construction companies, furniture makers and other industries. 

—Robert Schoenberger

Lifting Up the Next Generation of Material Handling Professionals 

Mitsubishi Logisnext Americas has announced it is accepting applications for its 2026 Cat Lift Trucks Scholarship Program, which will award a Houston-area high school senior with $5,000 to pursue higher education related to the material handling business. 

“With education and forward-thinking at the core of progress in our industry, we’re proud to commemorate the 22nd anniversary of the Cat Lift Trucks Scholarship Program,” says Berry Mansfield, president of Mitsubishi Logisnext Americas. Since its launch, the program has awarded $150,000 in educational assistance to 29 students. 

The student must plan to enroll in an accredited college, university or technical school within the state of Texas. The Cat Lift Trucks Scholarship Committee will evaluate applications based on academics, leadership abilities, community involvement, three short essay prompts and financial need. 

Applications must be submitted by January 23. The top three finalists will be asked to take part in a phone interview with the scholarship committee. 

 “These young students will pioneer the way forward in our industry, further pushing the boundaries of the material handling, automation and fleet solutions landscape,” says Mansfield. 

—Anna Smith

Lead Times Are Leading to Good Things at ITT 

Is this the manufacturing equivalent of author Jim Butcher’s quote about not needing to be faster than the bear, just merely faster than the person next to you? 

The short-cycle industrial economy isn’t doing well and ITT Inc. CFO Emmanuel Caprais told the UBS Global Industrials and Transportation Conference on Dec. 2 that “we’re not seeing any signs of pickup, for sure.” But Caprais also confirmed to UBS analyst Amit Mehrotra that, despite that, the company is picking up market share with its $1.4 billion industrial process business, which makes pumps, valves and monitoring systems. 

“We’ve been really working on lead times, working on delivering, improving our on-time delivery,” Caprais said. “We’re seeing a bunch of demand from customers that can’t get the product as fast with [others]. And so we’re able—even on the short cycle—to gain market share.” 

Blocking and tackling, folks. And running faster than your competitors. 

— Geert De Lombaerde

NASCAR Team Sticks to Racetracks, Exits Rocket Manufacturing 

Joe Gibbs Racing is leaving the rockets behind. The professional NASCAR team founded by Pro Football Hall of Fame coach Joe Gibbs has offloaded its manufacturing business—Joe Gibbs Manufacturing Solutions—to private equity firm Torque Capital Group.  

In announcing the acquisition, Torque said it would rebrand the company as JGA Space & Defense to “reflect its evolution from performance racing into a focused space and defense supplier.” 

As Joe Gibbs Manufacturing Solutions, the organization manufactured advanced specialty composites and assemblies for solid rocket motor propulsion systems, as well as precision machined components for aerospace, space, defense and certain racing applications. Joe Gibbs’ manufacturing arm turned its attention to aerospace and defense applications when NASCAR mandated several years ago that teams mostly use common parts and vendors, Torque told Axios.  

The rebranded company will focus on products for space exploration and the U.S. industrial base, including next-generation hypersonic rocket nozzles.  

Torque says JGA has obtained approximately 60,000 square feet of manufacturing space in Huntersville, North Carolina, and expects to start operations in its new location during the first quarter of 2026. Should anticipated demand warrant, JGA holds an option to double the footprint, according to the private equity firm.  

The announcement did not include a purchase price or indicate how many employees are impacted by the acquisition.  

Torque has a history of manufacturing investments. Its portfolio includes Cablecraft, a producer of motion control products; Netform, which manufactures highly engineered flow-formed and cold-formed components and assemblies for the automotive and truck markets; and Brake Parts Inc., a manufacturer of brake system products.  

—Jill Jusko

Upgrade Your Hardware with New Software 

Could having machines on the floor that can’t “talk” to your network and provide data cost you predictable losses year after year? 

Schneider Electric in late November released a report titled “Open vs. Closed: The $11.28m Question for Industrial Leaders,” about the annual recurring costs to manufacturers of dealing with legacy (closed) automation systems.  

The report argues that large companies can lose an average of $45.18 million, medium-sized companies can lose up to $11.28 million and cost small businesses up to 25% of revenues. 

The cause according to the report is manufacturers’ dependance on 10 or more platforms that in some cases, each of which requires different maintenance services and specialized support. Legacy machines, with their lack of connectivity, also defy predictive maintenance systems. 

The report concludes that manufacturers need to adopt open, software-defined automation to modernize legacy systems and decouple hardware from software. Services provided by Schneider Electric, of course. You can download the full report here. 

— Dennis Scimeca 

Commendable Commodes 

Ceramics manufacturing is an especially energy-intensive production process, requiring an abundance of high temperatures for the firing and drying processes. Duravit’s luxury-toilet factory in the port city of Matanie, Quebec, Canada, along the St. Lawrence River, aims to change that (and reading the press release, we are imagining/hoping that Duravit has a communications staffer whose sole job is to flush out unintentional toilet puns). 

The Canadian plant’s kilns will run almost entirely on renewable hydropower from local sources (Hydro-Quebec is one of the largest sources of hydropower in the world.) “Access to a deep-seas port and the use of clean, cost-effective energy were key reasons for choosing this location,” the company states.  

The plant currently has 120 employees, but once in full swirl by 2027, it will employ 240 people with a capacity for 450,000 toilets, sinks and other bathroom components. Duravit didn’t send any photos of the employee restrooms, but we’re hoping their aesthetics provide an added morale boost. 

Duravit, based in the Black Forest, Germany, city of Hornberg—named after Duravit’s founder, George Horn—dates back to 1817, but we don’t have to imagine what toilets were like then because in the early days the company made crockery (though perhaps that’s what some of the crockery was used for). Duravit began manufacturing toilets in the 1950s. 

—Laura Putre