JWF Industries is investing up to $3 million or more on major capital improvements to its equipment and facilities on Iron Street, downtown Johnstown.

One part of that upgrade, a $1.1 million metal-cutting laser, has been in use for nearly three weeks. It can make precision cuts through metal plates of varying thickness, slicing through 1/2-inch thick steel armor plating with ease.

“This moves our technological capabilities up to the next level,” said John Polacek, chief operating officer of JWF Defense, a subsidiary of JWFI. “This allows us to compete with some of the bigger operations around the country and keep more of the production chain in house.”

The new laser improves efficiencies in a number of ways.

Production speed is improved by making fabrications more quickly than can be done by machining. The machine also immediately provides feedback to accounting for billing purposes as well as updating inventory status to ensure the supply chain is operating optimally.

It saves labor hours, as well.

Aside from programming the specifications of the fabricating, the machine can hold tens of thousands of pounds of plating for a job and rarely needs to be reloaded.

And the machine can operate around the clock without a break.

“Some people look at automation like this as an attempt to replace labor,” said Jim Griffith, president of JWFI.

“We look at it like we’re protecting the jobs we have while creating greater efficiencies that allow us to create more jobs by being able to bring in more business.”

And JWF is preparing itself to handle more work by creating more capacity. The company is giving the former Bethlehem Steel 8-inch mill a complete makeover with the end result being the company’s new manufacturing technology center.

The new center will represent an investment of about $2 million to renovate the former warehouse. The company is able to find new use for the building thanks to its improved just-in-time inventory practices.

Plans for the building began in the fall and preparatory work began in January. The 80,000-square-foot facility is expected to be fully functional within a few months.

The manufacturing technology center largely will cater to commercial work while the main building on Iron Street will almost exclusively be reserved for defense work.

“You don’t want to co-mingle your defense and commercial work,” Polacek said.

“By separating the two, it makes it much easier to pass audits. When you segregate the defense parts, you can show the government that you do have control over what you’re producing for them.”

The new facility will include heated floors, heat exchangers, two new 20-ton cranes, four 5-ton cranes, renovated locker rooms and offices as well as drop ceilings and air curtain doors that open and shut on their own when vehicles approach.

One new addition will be a CMM laser tracker, which uses laser technology to provide the most accurate measurements of products to ensure they meet customer specs. Another benefit will be tracks laid into the floor that work stations can be bolted to so they can be moved throughout the shop with ease, allowing for better space management.

The company may also outfit the facility with a robotic welder on a 60-foot track, allowing it to move from job to job or handle extra-long welds without moving materials.

Joe Boyle, vice president of operations for JWFI, said the facility could improve efficiency as much as 40 percent.

“The materials will arrive just as the guys are ready to go on the next project,” Boyle said.

“Plus, the tracked robot will account for the biggest gain in efficiency.”

Growth on the company’s defense side is one of the key reasons for the major investment. But the company’s need for additional capacity isn’t limited to anticipated defense growth.

“We’re expecting 10 to 15 percent growth on the commercial side this year,” Griffith said.

“While we’re experiencing big growth on the defense end, a lot of people would be pretty happy with 10 to 15 percent gains every year.”