How Illinois manufacturers turn automation into a jobs engine

A decade ago, GAM Enterprises, Inc. opted for automation, and the company has since reaped the rewards, says Craig Van den Avont, GAM’s president.

The Mount Prospect, Ill.-based company, which manufactures gearboxes and other components for automation technology, has invested in machines that automate repetitive and mundane factory work. At up to $900,000 a piece, GAM’s advanced machines are more expensive than standard machines, Van den Avont says, but they also offer greater breadth and flexibility in the products they make.

Now, GAM’s operators no longer simply load and unload parts on an assembly line. Instead, they have been upskilled so they can set up, monitor and maintain the robots. Automation also has created engineering and programming positions, among others.

GAM has adopted the technology to the benefit of its employees, not at their expense, Van den Avont emphasizes.

“We’re using people for their highest skillset,” he says.

Automation as a jobs creator

Before implementing automation in 2015, GAM employed 14 people. Today, the company employs 50. And in the past five years, the company’s revenue has doubled.

“The bottom line is that automation creates jobs; it doesn’t destroy jobs,” Van den Avont says.

That’s echoed by Mauro Frangipani, North America operations director for Freudenberg Household Products, which makes household products and cleaning items. In the past three years, Freudenberg has increased the robots in its Aurora, Ill., plant by about tenfold and plans to add even more in the next few years.

According to Frangipani, Freudenberg’s automation has led to a more skilled and stable workforce. Prior to automating manufacturing lines such as plastic injection molding, Freudenberg’s workforce in its Aurora plant was split fairly evenly between permanent and temporary workers. Now, over three-quarters of the plant’s people are permanent.

Freudenberg’s Aurora plant used to rely heavily on manual processes to store, package and ship its products, most of which were made in other countries. But when the pandemic disrupted its supply chain, Freudenberg began automating the facility’s manufacturing and assembly processes, enabling the company to move more production to the U.S.

Before automation, 80% of the Aurora plant’s products were made abroad. Today, that figure is just 20%.

Thanks to automation, Freudenberg has achieved greater uniformity and quality in its products and has enjoyed a productivity boon, Frangipani says: “We doubled our local production, but we did not double our labor force.”

Automation as a continuous improvement enabler

For manufacturers, automation entails far more than robots. The technology also supports manufacturers in their continuous improvement efforts.

“As the company grows, we need faster, more efficient ways of doing things. We can’t always add people to a problem,” Van den Avont says.

By leveraging an automated solution that collects data on its robots and monitors their performance, GAM identifies better, more efficient ways to use the machines. As a result, GAM has reduced its machine setup time by 50%, doubled its machine utilization and nearly eliminated scrap.

For both GAM and Freudenberg, Illinois Manufacturing Excellence Center (IMEC) has been a critical partner in their continuous improvement evolutions. For instance, Freudenberg partnered with IMEC to train its people on using and maintaining its robots.

“The issue isn’t the technology. People are the most important guarantee to success,” Frangipani says. “So we’ve developed our people to become more skilled.”

For other small and midsize manufacturers eager to set off on their own continuous improvement journeys, Van den Avont offers this advice: “Just get started,” he says. “Start to measure, be honest about the results, and analyze the measurements. That will lead you to automation.”