Peerless Manufacturing: Moving Faster
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By Fernie Tiflis   
Thursday, 23 October 2008
smc Peerless Manufacturing, Dallas
Dallas-based Peerless Manufacturing serves the energy industry around the world.




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Peerless Manufacturing has been an innovator from the very beginning, when its founder, Donald Sillers Sr., established the company as a manufacturer of natural gas odorizers after first inventing the device in 1933. Since then, the 75-year-old Dallas-based company’s innovation in the natural gas market continues to distinguish it from the competition.
   
“Peerless has a good balance in the energy industry,” notes Jon Segelhorst, vice president of pressure products. “We manufacture [products that] dry and filter the gas flowing through pipelines, and we also have environmental systems that remove NOx [nitrogen oxide]. We have a wide range of products, applications and innovations. We like trying new things.”
   
No two final separation products are alike at Peerless, Segelhorst adds. “Everything we do is custom-made for particular process conditions,” he states. “While each final product may be unique, the technology we use to perform the separation is mature. Our innovation comes through in how we size the components and mix and match the different separation technologies to arrive at the most cost-effective, yet best-performing solution.
   
“The separation technology is well developed but we’re always trying to expand its capability. We use advanced CFD [computational fluid dynamics] modeling and computational investigation coupled with extensive testing in our wind tunnel to try and unlock further performance advantages.
   
For the natural gas market, Peerless introduced the Ultra Filter-Separator two years ago, that features increased surface area of the particulate filters and liquid extractors but in a smaller vessel diameter, Segelhorst explains. “It gives equal performance of a larger package in a smaller, more cost-effective solution,” he states.
   
There’s quite a bit of research on the environmental side of the business, as well. The company’s most recent innovations include a new patented reagent injection system. The system improves the distribution of fluid into an open space, which allows for more efficient mixing, lower capital costs, and more access for retrofit projects Segelhorst says.
   
In addition to the separation equipment Peerless designs, engineers and manufactures that is used in “cleaning and conditioning gases and liquids as they move through a piping system,” the company explains that it also uses similar technology to remove liquid from steam in nuclear plant applications and saltwater aerosols from the combustion intake air of shipboard gas turbine and diesel engines.

Growing through Acquisition
As the demand for natural gas increases, Peerless Manufacturing is positioned for continuous growth. “The tremendous growth for natural gas is the main driver of our separation business,” Segelhorst states. “Construction of new natural gas pipelines coming out of Colorado, east Texas and the Appalachians – those have been the biggest market trends for us.”
   
To adapt, Peerless acquired New York-based Nitram Energy Inc. last April. The $65 million acquisition included all assets of Nitram, including Burgess-Manning Inc., a manufacturer of custom-designed gas/liquid and gas/solid separators, pulsation dampeners and silencers; Bos-Hatten, a manufacturer of custom-designed shell and tube heat exchangers; and Alco Products, a manufacturer of hairpin-style specialty heat exchangers.
   
“We are interested in growing and Nitram fits that – growing through acquisition,” Segelhorst stresses. “[Nitram] is a good complement to the Peerless business.”
   
Nitram’s acquisition also increased Peerless’ manufacturing capacity. With the addition of Nitram’s Wichita Falls and Cisco, Texas, facilities, Peerless now has four manufacturing sites.

Meeting Industry Challenges
Its business is growing, but Peerless must continue to make on-time deliveries. “Keeping up with the demands [is tough],” Segelhorst says. “With the increase in the number of gas pipelines being installed to feed the growing demands for natural gas worldwide, timely delivery in the face of capacity constraints is always a challenge. We’re using lean manufacturing and 5S programs as part of an intense focus to boost the productivity of our plants to increase on-time delivery and overall customer satisfaction.”
   
In addition, Peerless is constantly dealing with increasing material prices and labor constraints, Segelhorst states.
   
“We have to balance our exposure, find as many suppliers as we can, and buy materials as early as possible,” he continues. “Defining our scope, design and material needs as early as possible [helps us] minimize the effect of price hikes, which are happening almost daily.”
   
To contend with skilled labor shortages, Peerless finds potential employees through trade schools and community colleges and provides them with code-welding training. Peerless also uses an aggressive recruitment system of radio, print and Internet ads along with an employee referral program.  Additionally, it offers incentive bonuses for process improvement to aid in retention.

A ‘Faster-Operating’ Firm
Segelhorst is certain about Peerless’ future. “One thing is for sure – [Peerless] is going to be bigger,” he says. “With the energy industry as it is today, you’ll see a more aggressive, leaner and a more efficient Peerless.
   
“We want to move faster in new markets and [introduce] new technology not only in refinements, but also in separation and environmental technology that we haven’t marketed before.”
 
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