Castle Machine Works

By Kellie Underhill

The huge demand for workers in Alberta draws more and more Miramichiers each year, but one local business isn’t laying off people or sending workers to Alberta, they’re bringing the work back to New Brunswick to be completed by Miramichi workers here on the river.

“It has (Alberta’s industrial boom) opened the door for companies such as ourselves to offer their services for the overflow,” says David Allen, Production Manager of Castle Machine Works.

David says even in Alberta they are having a problem with workers leaving the cities to go into higher paying jobs in isolated northern locations, and there just aren’t enough workers to meet the demand.

“They’re in a real crunch,” he says. “We want to be part of the solution by picking up some of the overflow.”

A shortage of 100,000 workers in Alberta is predicted over the next 10 years, he adds.

“They’ve got so much work, they can’t do it,” David says.

Last spring Castle Machine Works was one of about 20 businesses from the Maritime Provinces that went to Alberta to meet with industry leaders and offer assistance. As a result of these meetings Castle Machine Works now does some work for companies in Alberta, but they don’t go west to do it—they bring the work back to Miramichi.

“It’s important to stress that it isn’t a matter of us stealing their work,” David says. “They can’t keep up. We’re helping them.” And in the process this longstanding family-run Miramichi enterprise is creating jobs for Miramichiers right here at home.

Castle Machine Works first opened in 1943 on Castle Street, hence the name. Gerard Arsenault was the founder and original owner. In the 1950’s the business relocated to Rogers Street. This area was called “The Wireless Field,” David recalls, because Marconi Radio was located there and during the First World War all the messages from Europe came through there.

David’s father, Bill, was a welder in 1948 and went to work for Arsenault at Castle Machine Works. In 1970, after Mr. Arsenault suffered a heart attack, Bill purchased the business and it’s been in his family ever since. Currently, four sons, including David, work there.

When the business first opened there were only four employees and now they employ 30.

“We’ve grown,” David says. “We’ve had six expansions of the building over the years. We added a sheet metal division. We hope to grow even more.”

Castle Machine Works offers a full staff of professional engineers, machinists, welders and fabricators. They have a complete precision Machine Shop, Welding and Fabrication Shop, as well as a Sheet Metal Shop. They specialize in stainless steel, aluminium, carbon steel, and galvanized steel. They carry a complete steel stock of sheets, plates, structural steel, mechanical tubing, bronze, steel shafting, chrome induction, hardened shafting, and more. With over 20,000 square feet of workspace they have a lot of special equipment including a horizontal boring machine, lathes, milling machines, a 400 ton press brake, a 90 ton iron worker and much more.

But what does this impressive line-up really mean?

“We do custom manufacturing, rather than specializing in one thing,” David says. “We work for the forestry industry, mines, mills, in peat moss and marine. We also do commercial work like for McDonald’s. Right down to the average person with a small job. We work for anybody.”

Most of their contracts are local from New Brunswick but they also have done work for companies in Nova Scotia, Prince Edward Island, and of course, Alberta.

To learn more about Castle Machine Works and to see a more detailed listing of their services and equipment, please visit their website at www.castlemachineworks.com.

Update April 2008

Since this story was first published last year, the UPM mill in Miramichi shut down. Castle Machine Works felt the loss of the mill immediately because they had been supplying materials to the operation on a daily basis.

“We’re doing a lot better than what we expected,” said David Allen. “Our goal is to bring in new customers while maintaining our traditional customers. Right now we need to recoup and grow at the same time.”

The company has aggressively been seeking new clients and partnerships. Last fall they conducted a survey and had a SWOT analysis done to evaluate the strengths, weaknesses, opportunities and threats involved in growing their business. From the SWOT analysis, they got enough information to justify doing a market research study and from that study they got enough information to justify hiring a marketing salesperson.

The marketing salesperson identified about 180 potential new clients for Castle Machine Works. Of those 180, 120 companies were identified to have medium to high potential. Those businesses were contacted for face to face meetings. Since last October Castle Machine Works has done work for 20 new clients.

“It’s good results,” David said. “It just goes to show what you can accomplish if you beat the bushes and apply yourself.”

Blue Note Mining is one of the clients they picked up through this process and in the past four months this has translated into more than $100,000 in sales for Castle Machine Works.

“We’re moving forward and we’re focused on the future,” David said.

Castle Machine Works has been positioning themselves in the marketplace for several upcoming projects like the Irving Refinery in Saint John, the Point Lepreau Generating Station refurbishment, PotashCorp’s expansion in Sussex, and much more.

“Whether it’s for projects in the Maritimes or working with companies doing work out in Alberta, we’re always interested in partnering with contractors and companies,” David said, adding that the traditionally conservative nature of the metalworking industry in New Brunswick has been changing in the past few years, at least in the northern part of the province, as companies realize they can land more contracts if they pool their resources and work together.

“We’re seeing a lot of opportunities.”