Pittsburgh Post-Gazette

BARGING AHEAD

Firm adapts to cope with sinking demand

- By Len Boselovic

Brownsvill­e Marine’s “aha” moment came last summer, the time of year when the barge maker’s customers decide how many new river-going vessels they will order for the coming year.

After the company built 190 barges in 2015 and 120 last year, customers said they only wanted about 60 in 2017, according to Ted Stilgenbau­er, vice president of operations.

He traced the sharp decline to a slump in one of the company’s biggest markets: coal producers who use rivers to barge their product to electric power plants. Coal accounted for 30 percent of electricit­y generated last year, down from nearly 49 percent in 2007, according to the U.S. Energy Informatio­n Administra­tion. Cheap, abundant natural gas caused that decline.

Responding to the oversupply of coal barges, barge owners converted coal-carrying barges into covered vessels that can carry corn and other agricultur­al commoditie­s. That led to a surplus of barges in that market — despite a record corn crop and near-record soy bean crop last year, Mr. Stilgenbau­er said.

Brownsvill­e Marine responded by slashing its workforce from a peak of 425 to about 200 currently.

But the company is also taking more proactive measures by adapting its barge-making prowess to other markets that require the same kinds of skills, including infrastruc­ture and heavy constructi­on. To reflect the new business plan, the company changed its name to Heartland Fabricatio­n. Mr. Stilgenbau­er said Heartland’s target markets include fabricatin­g girders and other structural steel components for bridges and highways; pursuing projects involving the U.S. Army Corps of Engineers as well as constructi­on, energy and equipment companies; and applying coats of primer on structural steel used by fabricator­s.

Those services involve bending, cutting, welding and painting steel, processes Mr. Stilgenbau­er said Heartland must master to

make a 200-foot-by-35-footby-14-foot barge.

“The core backbone of what we can do here is marine and structures, large structures,” Mr. Stilgenbau­er said.

He said the company has received industry certificat­ions to produce bridge components. Certificat­ions for building fabricatio­n, painting and other processes should be obtained by the end of the year, Mr. Stilgenbau­er said.

Heartland Fabricatio­n is owned by Columbia, Ill.based Heartland Cos., a privately owned holding company whose other interests include operating fleets of barges and rail cars, and commercial real estate.

Barges have been built on the 43-acre Brownsvill­e site since the 1940s — first by Hillman Barge, then by a succession of owners who ran into problems. They included Wilhelm & Kruse, which fabricated steel beams and columns for PNC Park and Heinz Field at the plant and then shipped them by barge down the Monongahel­a River to the North Shore constructi­on sites.

Heartland bought the site in 2005 and began making barges the following year.

The new business model was made possible by $25 million the company spent in 2012 to revitalize the plant. The project included adding a rail spur and purchasing plasma torches used to cut steel plate, as well as a press that bends steel.

“We’re going to continue to invest in the facility,” Mr. Stilgenbau­er said.

He expects barge demand will rebound in the next two years. When it does, Heartland plans to limit output to 120 barges a year so that it can strengthen the new businesses it is pursuing.

 ?? Haley Nelson/Post-Gazette ?? Welders monitor a machine at Heartland Fabricatio­n, formerly known as Brownsvill­e Marine, in Brownsvill­e. With the decline of coal, the company is no longer focusing solely on building barges but is fabricatin­g other products and providing services for...
Haley Nelson/Post-Gazette Welders monitor a machine at Heartland Fabricatio­n, formerly known as Brownsvill­e Marine, in Brownsvill­e. With the decline of coal, the company is no longer focusing solely on building barges but is fabricatin­g other products and providing services for...
 ?? Haley Nelson/Post-Gazette ?? Welders suit up for work at Heartland Fabricatio­n, formerly known as Brownsvill­e Marine in Brownsvill­e.
Haley Nelson/Post-Gazette Welders suit up for work at Heartland Fabricatio­n, formerly known as Brownsvill­e Marine in Brownsvill­e.

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