An Arnold Publication- Serving the Western Metalworking Industry Since 1981
Making It in High-Tech Country
A Livermore, CA Job Shop Learns to Survive and Succeed on the Edge of High-Tech Country.
Story and photos by C. H. Bush, editor
Altamont operates the Doosan QL-300H turning center with a robotic autoloader that automatically loads blanks and unloads finished parts (foreground). The company’s two Doosan DNM 500 VMCs are shown in the background. Also shown here are foreman Bill Burdick (left) and welding lead Rick Johnson discussing a job that requires both welding and milling.
Livermore, CA is probably best known as the home of the Lawrence Livermore National Laboratory, which describes itself as “a premier research and development institution for science and technology applied to national security.” And premier it is, because since its founding in 1952 by the University of California, the lab has garnered no less than 118 prestigious R&D Awards for the most innovative ideas of the year.
Livermore is also home to the United States Department of Energy National Laboratories and Technology Centers, established to advance science and help promote the economic and defensive national interests of the U.S. Most of the DOE national laboratories are research and development centers federally funded, but managed, operated and staffed by private corporations and universities. The bottom line, however, is that Livermore, CA is home to lot of big brains.
So why would a busy machining job shop choose such a prestigious place to set up its business?
“Well, we moved here originally for two reasons,” says Rick Stivers, Altamont Manufacturing’s cofounder and sole owner. “First, because a lot of our employees lived in and around Livermore, and we wanted to cut down on their commutes. The second reason was that we liked the quality of life in the Livermore area. Our lease in Hayward was winding down, so I and my dad, who was my partner at the time, made the decision to move.”
Laser marking a biotech component
Bad Time to Move
There was only one problem. Stivers and his father moved in 2000 just when the dot.com tech bubble was about to pop.
“We leased a 25,000 square-foot facility,” says Stivers, “because we were ramping up to handle high production demanded by our customers. Unfortunately, just when we were ready to go, our customers started to wind down. We found ourselves really struggling to make ends meet. We had that huge facility and a killer overhead.”
Stivers and his father did what most smart businessmen do in situations like that. They went to the landlord and negotiated.
“The guy was great,” Stivers says. “He let us out of the big lease, and we leased a smaller 8,000 square-foot facility in nearby, which is where we are now.”
In 2010, Stiver’s dad decided to hang it up and retire.”
“Dad was a machinist his entire life,” Stivers explains. “He sold the company to me, took mom and their dog Corky, and they’re all out roaming the country having a good time in their RV. I learned a lot of important business lessons from those tough times.”
By the time his father retired, Stivers says he was ready to take over the business.
“I started out my career as a tech writer,” Stivers says. “When my dad struck out on his own around 1990, I, along with my brother and sister, did what we could to help out. I discovered I like the business. ” he says, “When dad offered me a job. I took it. What he didn’t mention was that there would be little or no pay for the first six months. Talk about baptism by fire. I learned the equipment, the business and a lot about my dad. It was great training.”
Rick Stivers (r) and foreman Bill Burdick discuss how to approach a new job for one of Altamont’s two Doosan DNM500 VMCs
Fresh Start
Altamont Manufacturing, Inc. thrived after downsizing.
“We were still a job shop,” Stivers says, “but we had new insights and a more conservative approach to growth. I’ve been working hard to get top-of-the-line customers who will be dependable for us as long as we’re dependable for them.”
In the 8 years since his fresh start, Stivers has come a long way toward achieving his goal of obtaining good customers.
“Today most of our customers are in high-tech fields,” he says, “which makes sense, considering our location. We produce parts for marine satellite systems, high-tech giants like Lawrence Livermore Labs and Tinsley, the people who repaired the Hubble Telescope and are building the mirrors for the new James Webb telescope. We still do some aerospace work, we make alternative fuel systems for the automotive aftermarket, and we have customers in the semiconductor industry.”
Stivers says one of the main lessons he learned from the dot.com bubble was to diversify his customer base.
“I was determined to diversify as much as possible,” he explains. “As a result, we acquired a small hydraulic manifold design company, so about 5% of our work now is building hydraulic manifolds for things like oil rigs and Disney rides. We produce parts for the solar industry, and one of our fastest growing markets the biotech industry.”
Biotech department leads Jessica Huber (l) and Ben Cannon discussing an orbital welding procedure needed for a biotech project.
Diversified Capability
One reason Stivers has been able to broaden his customer base, is because he diversified his equipment to include milling, turning, laser marking and, Mig, Tig and orbital welding.
“Different equipment and skills mean different capabilities, he says. “Those are all standalone services, but a customer can buy them individually or in combination, eliminating the need to move parts around. If a customer wants us to fabricate and assembly parts for them, we can do that, too. Over the past two or three years, a lot of our growth has come from the biotech industry, which requires special skills and equipment to do.
“The parts we make for biotech require tubular assemblies that are orbitally welded and highly polished,” he explains. “To meet the cleanliness requirements, why we set up a separate area in the shop. Biotech has become a significant portion of our business.”
Ben Cannon sets up an ARC orbital welder to make a perfect weld on tubing used for one of Altamont’s biotech customers. Tubing is inserted in both sides of the welder, locked down, and the machine makes a perfect weld.
Equipping for Diversity
By 2010 Altamont’s equipment was ready for an upgrade.
“When we were ready to upgrade our systems, I turned to Jim Selway from CNC Solutions, Inc. for recommendations,” Stivers says. “Dad and I had worked with Jim since 1991, and Jim had always given us great service and solid recommendations, so it was only natural to go to him again. Jim took a look at our needs and suggested we upgrade to Doosan machines and Daewoo, which had been bought out by Doosan. I looked at his recommendations and was very impressed with the beefiness and solidity of the equipment. What I needed at this stage in my company’s life was high-quality machining equipment for the lowest price possible. I believe the Doosans deliver that. Their reliability has been outstanding.”
A Doosan Shop
In addition to three 4 mills, Stivers now operates a Daewoo 12L turning center, a Daewoo Puma 200 with an 8” chuck, 2 Doosan DNM500 VMCs with 12,000-rpm spindles, 30-tool high-speed ATCs, and a Doosan QL-300H turning center with twin 10” spindles and a robotic gantry loader.
“Those machines give us outstanding productivity,” Stivers says. “Even so, we’re busy enough to need two shifts to meet our customer demands. We will continue to upgrade our equipment to meet whatever comes along, but we’ll do so in a smart way. We’re very optimistic about the future.”
Stivers should be optimistic. He started Altamont 8 years ago with 3 employees. Today he has 20 skilled people divided between CNC, welding and biotech departments.
“Learning business is a little like learning to play a musical instrument,” he says. “It takes practice. We moved up here to Livermore, almost at the worst time possible. But now I’m very pleased to say, ‘We’re making it!”
