In this episode of MakingChips, we sit down with Charlie Hushek, President of Phoenix Heat Treating, whose family has been in the heat-Treating world for over a century. Charlie is a fifth-generation heat Treatinger—but his leadership story is anything but inherited. When he stepped into the business in 2020, he wasn't handed stability. He was handed a crisis.

Within a matter of months, Phoenix Heat Treating lost its NADCAP certification—twice—suffered major operational setbacks, faced COVID turmoil, and endured the tragic loss of their general manager. For a company where more than 70% of revenue is tied to regulated aerospace work, this wasn't a stumble. It was a free fall. And it forced Charlie into leadership far earlier—and far harder—than he expected.

But instead of shrinking from the challenge, Charlie transformed it into a total rebuild. He redesigned their QMS from the ground up, implemented true systems thinking, rewrote cultural standards, and introduced transparent, performance-driven practices that aligned every employee around shared values. The result? A thriving business, a revitalized culture, and a blueprint for how to rebuild a manufacturing company under extreme pressure.

In this raw and energizing conversation, Charlie shares how Phoenix Heat Treatinging went from chaos to clarity, how culture becomes a competitive advantage, and what it takes to lead a team through uncertainty, fear, and burnout—and come out stronger on the other side. If you're leading a shop through change, growth, or crisis, this episode is a masterclass.

Segments

(1:29) Charlie's fifth-generation family history and the Phoenix Heat Treating story
(2:19) The beginnings of Wesley Steel Treating and early industrial growth
(3:43) Check out SMW Autoblok's massive catalog of products
(5:15) Heat Treating as a long-standing, often overlooked "shadow industry"
(5:45) Phoenix Heat Treating's early years, the move to Arizona, and generational transitions
(7:34) Charlie's introduction to the business, working second shift, and learning operations
(8:53) Phoenix Heat Treating's modern operations: five shifts, fast turn times, and business units
(10:40) The importance of NADCAP certification and the challenges that come with losing it
(12:45) Climbing out of crisis, stabilizing the business, and confronting hard truths
(18:55) Internal emotions, team reactions, turnover, and the "burn the boats" mentality
(22:06) Rebuilding from 50 employees to 80 through culture, transparency, and momentum
(23:30) How primes issued waivers and partnered with Phoenix during the crisis
(25:17) Working with customers to maintain flow on critical aerospace and defense parts
(27:42) What's Your Method? 30-taper machines
(34:43) The honesty and transparency you'll experience working with Phoenix Heat Treating
(35:55) Building culture from the ground up and defining core values
(39:01) Using employee surveys to define core values: teamwork, positivity, detail, work ethic
(41:38) Embedding culture in hiring, onboarding, and daily expectations
(45:30) Profit sharing, pay transparency, and rewarding performance
(49:20) Applying the playbook to the newly purchased machine shop
(52:53) Incentivizing change and gaining buy-in through aligned rewards
(54:45) The importance of defining winning, alignment, and standards
(58:23) Why we created Hire MFG Leaders (and why you should use it)
(58:50) Charlie's "playbook," open-book management, and The Great Game of Business

Resources mentioned on this episode

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