Plant November/December 2012

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Volume 71, No. 08 November/December 2012

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Meet the real

BAT MAN Sam Holman fashions lumber for baseball’s heavy hitters

BUSINESS OUTLOOK 2013 Download at www.plant.ca See overview on page 20

HIGHLIGHTS Onshoring: Pros and cons for Canada Three tips for securing capital How fatigue affects production quality Gray Tools looks at the next 100 years Maximize your CMMS

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Editorial

Cashing in on the industrial renaissance

O

h the irony. China has emerged as a rapidly expanding, developing economy that is harvesting manufacturing jobs by the container-load from the “developed” world – specifically for this discourse, the US and Canada – because of the notion that North Americans want to pay less for their stuff.

Yet the tables appear to be turning ever so slightly in a westerly direction, which offers some hope for Canadian manufacturers.

Turns out most Chinese consumers prefer the “Made in USA” brand, according to a survey by the Boston Consulting Group (BCG), the folks who are tracking the reshoring phenomenon.

The results are surprising. More than 60% will pay more; nearly 50% prefer products of equivalent price and quality made in the US to those made in China; they will pay a premium of between 10% and 80% for the USA label; and more than half had chosen US-made products over less expensive Chinese goods at least once in the month before the survey.

Meanwhile, American consumers are rediscovering the Made in USA brand too.

Nearly 60% prefer homemade to Made in China. About two-thirds will open their wallets a little wider to pay a premium of 10% to 60% for 10 product categories from baby food and appliances to electronics and apparel. And at least 20% will pay a premium of more than 10%.

Quality stands out as a reason to prefer American-made, according to more than 80% of respondents in both camps.

Quality, transportation and other supply chain issues, and higher costs associated with growing wage levels in China, are also factors driving many companies to “reshore” their production to the US. BCG’s research shows that improved cost competitiveness compared with China and the advanced economies of Western Europe and Japan suggests higher US exports combined with reshored production from China could create up to 5 million new US manufacturing jobs by the end of the decade.

You’d think all this recharging in the US would be great news for Canada, but the early view is manufacturers here will not see a lot of investment in plants or production. They can expect about 10%, say the prognosticators, but they will also win business along the North American supply chain.

Thing is, Canadian companies need to amp up their game to compete with companies in the US, and that won’t be easy. The advantage of a 65-cent dollar is long gone, and escalating costs for must-haves such as energy are making life difficult for companies that are mostly small to medium size, especially those in Ontario.

The experts continue to call on Canadian companies to focus on advanced manufacturing, find niches, and innovate their way to growth, except there’s that troublesome productivity gap that must be dealt with.

PLANT’s 2013 Business Outlook survey shows manufacturers recognize lower productivity is an issue and are taking steps to address it. They’re finally investing in machinery and equipment, but at a lesser level than their counterparts in the US. And they hope to fill some of the gap through hiring and training. But they are sketchy on how they intend to grow their businesses. For example, very few respondents had a mergers and acquisition strategy, which means they are missing out on important opportunities to grow.

They list quality and service as their chief competitive advantages, while factors related to innovation are way down the list. The Americans are ahead on these and several of the others items listed in the survey. Canadian companies have much work to do if they are going to be part of the North American industrial renaissance.

Joe Terrett, Editor Comments? E-mail jterrett@plant.ca.

Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Vol. 71, No. 08, November/December, 2012 Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

12

COVER IMAGE: ALEXEI KINTERO

20

Features

>> OPERATIONS

12 CRAFTSMANSHIP Sam Holman is still applying the right balance of craftsmanship and technology to create one of baseball’s finest offensive weapons, the maple Sam Bat. 13 MAINTENANCE How to maximize your CMMS. 14 THINK LEAN Managing people effectively improves quality and productivity.

TECH TIP How to prevent shaft current bearing damage in large motors.

>> MANAGEMENT

15 FINANCING SME’s don’t often have an easy time securing financing for capital projects from banks. There are other options.

INSOLVENCY What to do when a supplier or customer sinks into financial trouble.

16 TRADE Russia is not for the faint of heart but there are opportunities for daring exporters.

LEADERSHIP Six basic steps will lead your plant to business success.

>> SUSTAINABILITY

17 MATERIALS Custom furniture manufacturer Louis Interiors is building its environmental credentials as it manages the plant’s carbon output.

GREEN MANUFACTURING How to align sustainability with business objectives and strategy.

>> INNOVATION

18 HEALTH & SAFETY AUTO 21 is researching the relationship between fatigue and quality issues in automotive production.

ALTERNATIVE POWER UBC has developed a wireless EV charger.

>> TRENDS

19 PRODUCTION Production is coming back to the US from China. So what’s in it for Canada?

20 2013 BUSINESS OUTLOOK Canadian manufacturers are confident about their prospects next year.

>> TECHNOLOGY

21 HAND TOOLS Gray Tools plans its next 100 years.

22 PRODUCT FOCUS Enclosures.

24 PRODUCTS AND EQUIPMENT What’s new in industrial products, machinery and equipment.

28 PLANTWARE Hardware and software for managing plant operations.

Departments

4 Industry View 8 Labour Relations 10 PLANT Pulse

29 Events 30 Postscript

PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. Tel: 416-442-5600, Fax: 416-510-5140 80 Valleybrook Dr., Toronto, ON M3B 2S9 PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: privacyofficer@businessinformationgroup.ca. Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information contact us at 1-800-387-0273.

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protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. No responsibility for the accuracy of these performance claims can be assumed on the part of PLANT or BIG Magazines LP. Contents copyright© 2012 BIG Magazines LP, may not be reprinted without permission.

PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices.

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PLANT 3

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Departments

>> Industry View

>> Bulletins

CSA Group, a global product certification and testing organization based in Toronto, has acquired Orb Optronix, an LED test and measurement products and engineering services company located in Kirkland, Wash.

CSA said the purchase (amount undisclosed) expands its lighting business globally.

NRB improves Washington’s bus service New ticketing building cuts boarding distance

CO2 Solutions Inc. has been granted a Canadian patent for capturing carbon dioxide using a biocatalyst, including the enzyme carbonic anhydrase. The Quebec company says the patent has potential for application in the Alberta oil sands.

Aerospace manufacturer Pratt & Whitney Canada based in Longueuil, Que. has signed a 10-year agreement to supply Viking Air Ltd. in Sidney, BC, a producer of de Havilland products, with PT6 engines (including the PT6A-34) for the Twin Otter aircraft.

The percentage of unfilled private sector jobs has increased slightly from 2.3% to 2.4% in the July-toSeptember period, according to data compiled by the Canadian Federation of Independent Business. It says Canada’s construction industry has the country’s highest vacancy rate at 3.7%.

Manufacturing is 2.1% and other sectors display current levels that are at or beyond their pre-recession highs.

Brayton Energy Canada Inc. in Gatineau, Que., which designs and develops ultra-compact heat exchangers, has scored $400,000 in repayable funding from the federal government to acquire state-ofthe-art equipment and launch production of a new product that uses a cold metal powder deposition process.

Titanium Corp. Inc. has been issued a “key” patent by the Canadian Patent Office relating to its Creating Value from Waste technology for the removal of bitumen from heavy mineral concentrates. The Edmontonbased company has developed technology to recover heavy minerals and bitumen contained in the waste tailings streams from oil sands mining operations near Fort McMurray, Alta.

Bombardier Transportation has won the 2013 German Design Award for its ZEFIRO 380 highspeed train, made in Germany and China. The high-capacity train took the transportation and public space category.

4 PLANT

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Cutting the ribbon outside NRB’s ticketing building are (L-R): John Porcari, deputy secretary, US Department of Transportation; Eleanor Norton, Congressional delegate; Myron Watkins, vice-president of Greyhound Lines Inc.; Beverley Swaim-Staley, president, Union Station Redevelopment Corp., and Congressman John Mica, chairman of the House Transportation Committee PHOTO: NRB

EPHRATA, Penn.: Greyhound and Peter Pan Bus Lines customers in Washington, DC no longer have to walk several blocks to board a bus after they buy tickets. NRB Inc., a Grimsby, Ont. manufacturer of modular buildings, constructed Union Station customers a ticketing station where they can purchase tickets, check luggage and board the bus in mere steps.

NRB says the structure was fabricated in four months, installed in a day and ready for action a few weeks later.

The steel and concrete building consists of six modular units and one 18-foot tall sign section. All modules were transported on low-boy tractor trailers overnight, off-loaded and set in

place the next day.

“There are many logistical considerations when taking a large modular building inside another facility – for example, there was only one-inch of room between the top of the modular units and the sprinkler piping [located in the ceiling of the bus terminal],” said Lee Bachman, NRB’s project manager.

The building houses two glass enclosed ticketing areas, a luggage storage area, and office. Interior finishes included ceramic tiled floors, quartz solid surface counters, and acoustic ceilings. The exterior is composed of formed metal panels in Greyhound Blue with storefront glazing for the check-in area.

Buy American would shut out Canadian suppliers Maunfacturers of iron and steel products will be hurt: CME OTTAWA: Buy American provisions before US Congress have potential to shut Canadian companies out of $115 billion in supplier opportunities for water infrastructure projects funded by the US government, according to Canadian Manufacturers & Exporters (CME).

“The legislation sets a dangerous precedent applying Buy American restrictions to current as well as future infrastructure funding,” said Jayson Myers.

The president and CEO of Canada’s largest trade and industry association added that legislation would definitely hurt Canadian manufacturers of iron and steel products used in water projects, and also hurt US communities by eliminating critical competitive products at a time when there’s high demand for US water infrastructure rebuilding.

“We are afraid the legislation will set a precedent for other sectors of federally funded in-

frastructure,” Myers said. “Protectionist measures that restrict Canadian market access to US infrastructure projects are already leading to demands for similar restrictions in Canada.”

The legislation will weaken manufacturing competitiveness on both sides of the Canada-US border, he adds.

The proposed restrictions on future water and wastewater projects funded by the US fed-

eral government would require all iron and steel – including equipment produced from those materials – to be Americanmade.

“We are going in the wrong direction with procurement restrictions at a time when neither country can afford it,” warned Myers. “We should instead be working together towards a joint content rule for procurement spending.”

Russel Metals acquires Apex Distribution for $225M TORONTO: Russel Metals Inc. has purchased oilfield supply company Apex Distribution Inc. in a $225 million deal.

Apex Distribution’s annual revenue for the fiscal year ending April 30 was more than $500 million. The acquisition was to close in November.

The company will continue to operate as a standalone unit led by Don White, its current president and CEO. Russel Metals sells steel and pipe to the construction and energy industries. Its energy tubular products operations distribute tubular products, line pipe, tubes, valves and fittings to the energy industry.

ProMetic extends Asian reach LAVAL, Que.: ProMetic Life Sciences Inc. has signed two strategic agreements with Shenzhen Hepalink Pharmaceutical Co. Ltd. in China to expand the Quebec biopharmaceutical company’s reach in the Asian market.

The $21 million agreement involves a research and development project based on ProMetic’s proprietary protein technologies and includes $11 million in fees and payments.

ProMetic said it will also receive further funding for product development in the fourth quarter of 2012 on behalf of Hepalink.

The joint R&D program provides Hepalink with proprietary bioprocesses it will use as part of its product expansion and diversification activities and lead to a long-term agreement for the exclusive manufacture and supply

by ProMetic of an affinity resin.

ProMetic’s Mimetic Ligand technology is used in the largescale purification of biologics, drug development, proteomics and the elimination of pathogens.

Hepalink is taking a 10% position in ProMetic with a $10 million equity injection that will go into the launch of the company’s GMP plasma facility in Laval, Que.

Gros-Morne wind farm now operational LONGUEUIL, Que.: Innergex Renewable Energy Inc. has begun commercial operation of Phase II of the Gros-Morne wind farm in Saint-Maxime-duMont-Louis and Sainte-Madeleine-de-la-Rivière-Madeleine, in the Gaspé Peninsula of Quebec.

The company, which owns a 38% interest and 50% management stake in Cartier Wind Energy, said the development program encompasses 589.5 megawatts of installed wind energy capacity.

Gros-Morne was awarded to Cartier Wind Energy under the 1,000 megawatt RFP announced

by Hydro-Quebec in 2004, which called for at least 60% of total investments to be made locally.

The Phase II development has 74 wind turbines for a total installed capacity of 111 megawatts, with an annual output of 341,135 MWh - enough to power more than 20,000 homes.

Innergex, a renewable power producer based in Longeuil, Que., expects revenues of approximately $9 million when the project is operational.

November/December 2012

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Industry View << Departments

New recycling plant handles 550,000 tonnes

Will focus on business customers to enhance recycling participation CAMBRIDGE, Ont.: A new 126,000 square-foot Waste Management of Canada plant will use a state-of-theart single steam recycling process to handle both industrial and municipal waste, while focusing on businesses.

The Cambridge, Ont. plant is now the largest licensed private-sector recycling facility in Ontario and will create up to 80 new jobs.

Ontario’s businesses have not had access to high-quality single-stream recycling services, resulting in a much lower waste diversion rate Waste Management hopes the single-stream facility will encourage more than residential sources. Waste Man- businesses to recycle.

PHOTO: WASTE MANAGEMENT OF CANADA agement says the new facility will make recycling more convenient and more cost-effective for businesses.

Thanks to the single-stream process, businesses no longer need to separate plastics, metals and papers before collection. Waste Management says the facility is expected to greatly improve recycling participation from businesses.

The plant is equipped with a paper magnet, optical sorter, electro-magnetic technology and various screen sorters, and accept more waste than traditional facilities and sort materials more precisely to enhance the amount recovered for reuse.

“This new, state-of-the-art, single-stream recycling facility is the first of its kind for Waste Management of Canada,” said Brad Muter, area vice-president for Eastern Canada.

Waste Management of Canada is a provider of waste management services. It employs more than 3,400 people at 116 locations in nine provinces, servicing more than 4.5 million residential customers, and 170,000 industrial and commercial customers.

The company operates 20 recycling facilities and 18 landfills in Canada.

Nokia Siemens, Ballard team on mobile power VANCOUVER: Nokia Siemens Networks is working with Ballard Power Systems Inc. to develop mobile power networks that will operate during power blackouts.

Japanese operator NTT DOCOMO has evaluated the Nokia Siemens Networks Flexi Multiradio base station with integrated fuel cell backup for potential commercial deployment.

The solution has been installed at a DOCOMO R&D Centre test site in Japan’s Yokosuka Research Park (YRP).

“Mobile networks can be vital when a natural disaster strikes, and power outages make other forms of communication difficult,” said Mark Donaldson, head of mobile broadband energy solutions at Nokia Siemens Networks.

A fuel cell converts the chemical energy from a fuel into electricity through a reaction with oxygen or another oxidizing agent, such as hydrogen. Hydrocarbons, such as natural gas and alcohols such as methanol, are sometimes used. Fuel cells are different from batteries because they need a constant source of fuel and oxygen to run, but they can produce electricity continually as long as these inputs are supplied.

The fuel cell weight and size are significantly less in comparison to existing lead acid batteries typically used in many base stations. The base station and fuel cell combination developed by Nokia Siemens and Ballard provides 4.5 kilowatts of power for approximately 40 hours on a single tank of fuel.

>> Feedback SPARkS FLy OVER ThE GLOBAL ADjUSTMENT I just finished reading your article titled “Sparks Fly in Ontario” (PLANT, October 2012) and I am grateful that you wrote about this issue.

I am the environmental supervisor at CompX Waterloo in Kitchener, Ont. and we can relate to Packaging Film’s story and how the Global Adjustment is seriously affecting business. I hope this issue gains more media attention before it’s to late for many manufacturing plants.

Hopefully we will see more articles on this topic in the near future. In case you were wondering, I did not shed a tear when Dalton McGunity resigned as Premier.

David Kroeker, Environmental Supervisor, CompX Waterloo Kitchener Ont.

GLOBAL ADjUSTMENT A LEThAL MEChANISM I read your editorial tilted ‘Sparks fly in Ontario. I was very pleased to see you discuss a topic, a cause so close to the survival of our business.

We tracked the growth of the Global Adjustment (previously called the Provincial Benefit) once it moved from a typical credit of much less than 1% to a debit of 2.5% in 2009. Today this portion of our bill has exceeded 50%. It’s on track to be a number that’s close to 20% of what we make. If you dial in the potential growth as cautioned by the Auditor General per your article this is a lethal mechanism for a high percentage of Ontario businesses, certainly ours.

We are a member of Excellence in Manufacturing Consortium (EMC). I have driven webinars on this topic. I have tabled it for discussion at meetings and information sessions where the reaction has been disbelief and/or outright rejection. It stuns me to tell you that many businesses are unaware they are paying this. I can’t say if this is ignorance, apathy or incompetence but we all need to collectively fight this thing.

We developed a multi-front action plan, one of which was to ask for political help. This was a strange direction for us. Our local MPP happened to be the PC Energy critic, Vic Fedeli. We presented our concerns, some analysis and left him to digest it over Xmas 2011. Fedeli invited me to Question Period so he could ask [energy minister] Chris Bentley to explain the logic of this system. [Bently] did not.

I actually held Bentley’s hand in mine and begged for 20 minutes of his time. He told me to write him a letter and left. I did write a letter, the response was not satisfying, I would call it a dismissal.

We need to recognize that the so-called ‘Green Energy’ veil being used to hide a revenue generation tool for the high cost Ontario power generators is simply full of holes.

John Spencer VP Operations, Fabrene Group, PGI Canada, North Bay, Ont. We’d like to hear from you. Send letters to jterrett@plant.ca with your name, address and phone number. Letters will be edited.

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Departments

>> Industry View

Companies collaborate on automotive bioplastics

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MINNEAPOLIS: Automotive parts supplier Faurecia has signed an exclusive industrial partnership agreement with Mitsubishi Chemical Corp. to co-develop a 100% bioplastic that will be used in automotive interiors.

Faurecia, a French company with 270 production sites, including an emissions control plant in Brampton and a seating plant in Bradford, Ont., will develop a full range of bioplastics in advance of Bioplastics will be used to make instrument panels. a “boom” that’s expected PHOTO: COLIN STEPHAN/FAURECIA between 2015 and 2020.

The Faurecia-Mitsubishi Chemical BioAmber, a French producer of biobased program will develop a polymer that will succinic acid, will supply the Faureciabe used in the production of automotive Mitsubishi Chemical partnership. The interior parts such as door panel trim strips, company is partnering with Mitsui & Co. to structural instrument panels and console build a global-scale manufacturing facility inserts, air ducts and door-panel inserts. in Sarnia, Ont., and they intend to build two Faurecia will hold exclusive rights to additional facilities in Thailand, plus one in automotive applications of the specific polyeither the US or Brazil. mers developed under the project, which The project will begin by modifying builds on several years of development Mitsubishi Chemical’s biomass-derived work carried out with BioAmber. poly-butylene succinate (PBS) so it can be BioAmber says it will have an initial produced from 100% bio sources. capacity of approximately 17,000 tonnes The three companies say environmental of bio-succinic acid and is expected to be constraints associated with vehicle weight operational in 2013. reduction and the regulations intended to Total capacity will be approximately increase the recyclability of materials (85% 34,000 tonnes of bio-succinic acid and in Europe by 2015) require an increase in 23,000 tonnes of bio-based 1,4 BDO. the use of materials derived from natural Faurecia’s North American headquarters resources, which will ultimately replace is in Troy, Mich. petroleum-based plastics.

E a p r u T a a a f

>> Careers Mitutoyo Canada Inc., a supplier of inspection and measurement instrumentation with offices in Toronto and Montreal, has promoted jay Summers from vicepresident to executive vice-president of Canadian operations. Peter Detmers, formerly a sales manager, is now vice-president of sales.

Jay Summers

Peter Detmers

jeff Morton has joined the Technology and Intellectual Property Practice groups of Clark Wilson LLP. The Vancouver-based law firm said Morton worked for several years as a lawyer and registered trademark agent for a leading national IP boutique.

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Michael Nobrega, president and CEO of OMERS in Toronto, the pension fund for Ontario municipal employees, has been appointed Chair of the Ontario Centres of ExJeff Morton Michael Nobrega cellence (OCE) board of directors. Nobrega has served on the board since 2007 and replaces outgoing board chair Sean Conway who had held the position since 2010. OCE helps drive commercialization of R&D in Ontario across key market sectors.

Ontario Graphite has expanded its leadership team. Michael Coscia joins the mining company as senior vice-president of sales and marketing. Most recently he was with SGL Carbon Technic. Ontario Graphite is re-commissioning operation of the Kearney Mine, the largest confirmed graphite mineral resource in North America and one of the largest individual deposits outside China and North Korea.

Graphite is now a key component of new energy applications, including lithium-ion batteries used in electric and hybrid electric cars.

Xebec Adsorption Inc. in Montreal, a provider of biogas upgrading, natural gas, field gas and hydrogen purification technology, has added Patrick Palerme to its board of directors. He’s the managing director and co-founder of Global Change Leaders, a consulting group of former GE Leaders.

Hydro One Inc., Ontario’s electrical power provider, has appointed Carmine Marcello president and CEO. Marcello replaces retiring Laura Formusa. Marcello has been a senior executive with more than 25 years of experience at the utility.

6 PLANT

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Departments

>> Labour Relations

The importance of pattern bargaining

By Ken Lewenza

T

he CAW recently reached and ratified new contracts with the Detroit Three automakers without a work stoppage. The new contract reflects the main priorities set out by the union before the talks began: resisting company demands for more concessions, despite their improving finances; finding a way to reward CAW members for the sacrifices they made to help the industry survive its 2009 crisis; and position Canadian operations – despite the overvalued Canadian

we establish core compensation standards in master “contracts, then ensure they apply across the industry… dollar – for future investments in plants and products.

The strategy worked well. Annual costof living bonuses protect the real value of wages without adding to fixed costs and the new-hire grow-in system rewards companies for new investments and new hiring without creating a permanent twotier system (like the one in the US).

CAW members recognized this was a good deal in tough times and decisively

”

ratified the contract. But the one feature of the 2012 negotiations I found most gratifying was our ability to preserve the principle of pattern bargaining, a tradition we have strengthened over several decades. We establish core compensation standards (wages, benefits, pensions, time off) in CAW master contracts, then ensure they apply across the industry.

After many years, the companies know our members believe strongly in the pat-

tern principle, and will act to defend it.

That’s not to say a company won’t try to break the pattern. General Motors tried in 1996, sparking a three-week work stoppage that ended with the pattern agreement initially reached with Chrysler being accepted.

Even this year there were ominous signals coming from the automakers that the industry’s recent crisis proved the “days of pattern bargaining were over.” Some government and media commentators also argued pattern bargaining was outdated, saying the time had come for the CAW to give up this long-fought principle.

To the contrary, it’s even more necessary to ensure compensation is on a level playing field. As companies grapple with the continuing financial fallout from the 2009 meltdown, we can’t let them offset financial problems elsewhere by taking it out on workers.

We reached the initial deal with Ford, a thoughtful, careful contract we knew could work for all companies, yet the others complained they couldn’t “afford” it, despite the significant savings offered on new hires.

Break the pattern GM and Chrysler knew they would face a historic confrontation if they tried to break the pattern so they quickly accepted it.

Even non-union automakers (Honda and Toyota) will closely follow the deal, not out of the goodness of their hearts, but because they are trying to prevent successful union drives at their own plants.

There are still many benefits of union membership Honda and Toyota workers miss, such as secure seniority rights, grievance powers and limits on temporary and contract workers. But when we get a raise, they get a raise, and that’s a good thing. It limits the degree to which the Detroit Three can use the non-union plants as a lever to drive down the wages of CAW members.

But we can’t take pattern bargaining for granted. The companies hate it and governments would be glad to see it disappear. Pattern bargaining only exists because retirees and current members have fought for it. We have to defend and maintain it for future generations.

The CAW is in the process of forming a new, stronger union with the Communications Energy and Paper union (CEP), which recognizes the value of pattern bargaining. Together we will spread its virtues to even more union members.

Ken Lewenza is the president of the Canadian Auto Workers Union, which represents 225,000 workers across the country in 17 different sectors of the economy. E-mail cawcomm@caw.ca.

Download Re-thinking Canada’s Auto Industry at www.rethinktheeconomy.ca.

Comments? E-mail jterrett@plant.ca.

8 PLANT

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November/December 2012

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Bleed Trim

Departments

>> Economy

Live

EXPORTS ON THE RISE $ billions of dollars, seasonally adjusted 45 Exports

43 41

SOURCE: STATISTICS CANADA

39 37 35 33

Imports

31

C

anada’s economy continues to grow at a steady pace, but it’s being led by above-average growth in Western Canada’s resource sector, according to BMO Economics’ Provincial Monitor report.

“The resource sector continues to fuel growth in Western Canada, and Alberta is expected to lead the country with 3.5% real GDP growth this year,” said Robert Kavcic, an economist with BMO Capital Markets.

In BC, the housing market has finally shown evidence of a real slowdown, while Central Canada continues to be affected by fiscal restraint, an above-parity loonie and sluggish US demand.

The Atlantic provinces are all expected to see growth below 2% this year, although Nova Scotia and Newfoundland & Labrador should bounce back in 2013.

The bank projects national growth of 2.2% in 2012, falling to 2% in 2013. Alberta will lead the country with 3.5% growth this year.

Profit outlook The outlook for profits is improving for one segment of the manufacturing sector but sagging for others, according to a Conference Board of Canada index for September.

The Ottawa think tank’s Leading Indicator of Industry Profitability rose by 0.2% to 103.2, only the third gain in the past 16 months bringing the overall index to its highest level in 11 months, but below where it was one year earlier.

The Conference Board said profit performance is in line with a stalling Canadian economy weighed down by the recession in much of Europe, a weak economic recovery in the US and slowing growth in China. However, there is “considerable variation” in performance among the various industries.

An improving US housing market and China’s appetite for wood has meant gains in five of the previous six months for wood products manufacturers. In July, the value of Canadian exports to all countries increased 20% from 2011 to $800 million. The Conference Board said exports to the US surged 41% compared with the same month last year.

Analyst Lin Ai wood said product prices have also increased, reaching their highest level since February 2007.

Tighter supplies because of the mountain pine beetle infestation in BC and provincial restrictions of annual allowable cuts in Ontario and Quebec should lead to even higher prices next year.

Agriculture and forestry, gas extraction, chemical manufacturing, computer and electronic product manufacturing, food and beverage stores, telecommunications and other financial services are below where they stood a year ago.

Ai notes gas extraction has been dealing with tough market conditions as competing US production increased for the seventh consecutive year in 2012 and North American demand remains soft. As a result, inventory levels are high and prices are weak.

Chemical manufacturing, Canada’s third largest exporter with 75% of its production destined for the US, has lost considerable ground recently. Ai said it’s index has declined in four of the past six months because of a slowing global economy. Sales have dropped 5% since April, while industry prices slipped 4%.

Exports of chemical products to the US have declined by 12% since April.

Ai suggested the decline is as result of more construction of chemical plants along the US Gulf Coast as companies take advantage of low natural gas prices.

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S

J 2007

J 2008

J 2009

J

J

2010

2011

S 2012

Canada’s merchandise exports rose 1.9% in September to $38 billion as prices increased 1.9%. Energy products led the overall gain, but imports were unchanged so Canada’s trade deficit with the world narrowed from $1.5 billion in August to $826 million in September.

NO EMPLOYMENT GROWTH

thousands 17,600 17,400 17,200

SOURCE: STATISTICS CANADA

Above average growth in the West

27

17,000 16,800 16,600

O J 2007

J 2008

J 2009

J 2010

J 2011

O 2012

Employment in October was unchanged from September and unemployment remained at 7.4%. Goods producing industries were down 0.5%, although manufacturing managed a 0.2% increase for the month.

Year over year, manufacturing employment is up 5.2%.

INVENTORIES RISE

$ billions 1 70

1. seasonally adjusted

68 66 64

SOURCE: STATISTICS CANADA

ECONOMIC DE VELOPMENTS AND TRENDS

20

62 60 58 56

S

J 2007

J 2008

J 2009

J 2010

J 2011

S 2012

Manufacturing sales were up 0.4% to 49.8 billion in September thanks to higher production in the aerospace industry and increased sales in primary metals. However, inventories also edged up 0.2% to $65.2 billion with machinery and food industries leading the advance.

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September represented the third monthly decline in wholesale sales (1.4%) in four months. The drop came mostly from Ontario (1.6%) and Quebec (1.7%), both in decline since the mid-point of the year. Manitoba was the only province to post an increase (2.7%).

10 PLANT

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12-11-27 10:10 AM

SOURCE: STATISTICS CANADA

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12-11-27 10:10 AM

Operations

>> Craftsmanship

The

real Bat Man still turning luMBer fOr MajOr league BaseBall stars

Quality over quantity works for this Ottawa manufacturer of maple bats.

By Matt POwell, assistant editOr

A

lot has changed since we looked in on the Original Maple Bat Corp. in 2003.

Founder Sam Holman catches us up by putting what’s happened at the maple baseball bat manufacturing plant in Ottawa modestly.

“Well, there’s a few more tons of sawdust,” quips Holman, about one of professional baseball’s favourite pieces of crafted lumber, the Sam Bat. No need to be humble.

The former carpenter for the National Arts Centre has turned the Sam Bat into one of the most desired bats in the world, changing an industry norm in a game that typically holds true to tradition that says the wood of choice is

ash. He now equips major leaguers with custom, handmade weapons of baseball glory, including home-run king Barry Bonds before he retired in 2007.

Closer to home, Toronto Blue Jays right-fielder Jose Bautista hit 50 home runs with a Sam Bat in 2010.

A 34-inch, 32-ounce MC1 also helped the Detroit Tigers’ Miguel Cabrera win the Triple Crown this year, and become the first player in 45 seasons to lead major league baseball’s American League batting average, home run race and runsbatted-in – a feat not accomplished since Boston’s Carl Yastrzemski did it in 1967.

It all started in 1996 when Holman fashioned his first bat cut from a maple railing ripped from the staircase in his house after a friend, and scout for the Colorado Rockies complained major leaguers needed something new.

“He told me there were just too many ash bats breaking,” says Holman. “They were looking for something more durable, something that lasted longer.”

The company produces 18,000 bats a year at a 10,000 square-foot facility outside Ottawa.

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That’s when Holman started sifting through files at the Canadian Patent Library, researching more than 200 US patents to uncover a solution. Ultimately, he fell upon some research about hardwood train bridges made from maple.

Record breaker “There really weren’t any ways to make those ash bats stronger,” says Holman. “I figured I’d give the maple bat a shot.”

Holman shared that first bat with Toronto Blue Jay great and friend Joe Carter, who loved it.

“You’re onto something here,” he told Holman.

Fast forward to the end of the 2001 season when San Francisco Giant’s

left-fielder broke the major league’s home-run record, smashing 73 baseballs into the stands at ballparks around the US. Each of those bombs were deployed with a Sam Bat made in Holman’s 290 square-foot garage.

That’s when the company, like a baseball off Bonds’ bat, really took off.

Nowadays, the Original Maple Bat Corp., headquartered about 40 minutes outside of Ottawa in Carleton Place, Ont., supplies not only the major leagues but also produces a retail line of bats and New Era 9FIFTY-branded hats.

The retail products are sold through an online store built into the company’s website.

And the Sam Bat is now the official

Sam Bats are still finished in a variety of paints and varnishes by hand.

November/December 2012

12-11-26 7:18 AM

>> Maintenance

Maximize your CMMS benefits

rules for managing data Sam Bats are made with maple dowels turned from seven to two pounds.

PHOTOS: ALEXEI KINTERO

bat of the six-team Australian Baseball League, a professional outfit in its third season.

Holman, 67, has taken a step back and handed the business end to husband-wife team Jim and Arlene Anderson, both chartered accountants who acquired the company’s majority stake in the spring of 2007. They’ve now got two facilities – one that houses the kiln that dries the prized maple, and the other where the bats are produced. The little company that could now employs 20 people.

“The whole business just went a little crazy and Sam was having a hard time keeping up with the demand – it’s amazing how many players wanted the bats,” says Arlene, president of the company.

“We couldn’t get the bats to everyone who wanted one.”

Anderson, who had worked with various companies producing wood products, had very little baseball knowledge.

She did, however, recognize the big names using Sam’s bats.

“We knew what Sam had built was something special, and we wanted to be a part of that,” she says.

Production is handled in a 10,000 square-foot plant that produces more than 18,000 bats a year – a big step up from Holman’s humble beginning in his tiny backyard garage.

Despite its rapid growth and growing reputation among major leaguers and baseball enthusiasts, the company is

sticking to its roots and has no desire to mass-produce. Even in 2012, when any number of fancy machines could do it for them, they still hand finish the bats in a variety of stains and varnishes, and rather than applying laser engraving, workers hand-stamp the company’s infamous bat logo on pro models.

The company uses the same production techniques Holman applied in the old garage – just on a somewhat larger scale. Anderson handpicks wood from a secret supplier in the Ottawa Valley, pieces of lumber no more than 2.75 inches in diameter and 42 inches in length.

Holman and Anderson are tight lipped about the cutting process, preferring to keep pesky competitors out of the loop, and guessing. He started out using a customized CNC lathe to cut the bats down to size (from seven pounds to two) and two more traditional lathes to complete sanding and finishing. He was able to customize the lathes to cut 250 model shapes without any extra set up, covering lengths from 26 to 36 inches, at half-inch increments.

Automated process Automation has helped cut production time from about 11.5 minutes to between five and seven, which is dependent on a number of factors including the size, length and wood density of each bat.

When Holman started turning bats, it took him about 20 minutes.

“The process we’re using now is definitely more automated, but it’s the cutting process we used when we started, it’s a just a touch faster these days,” says Anderson.

While the company invests about 15% of its revenues in R&D, Anderson says it’s usually to tinker with bat styles; custom jobs that include messing with weights, shapes, knob and handle sizes, and finishing processes.

“We’re constantly reviewing how we can make the bats better to improve the speed they can generate, the look, and the feel,” she says.

The company is even testing torrefied wood, a newer process that involves sucking the moisture out so it changes the maple’s colour.

In today’s business climate when prosperity and growth are typically dependent on how well a producer of goods handles advancements in technology, Sam Bats work because it’s all about Sam’s bats.

They’re made with the right mix of traditional craftsmanship and automation, which appeals to baseball enthusiasts (and home-run kings) who, unlike most of today’s hockey players, still like the “crack”of solid lumber when they score.

By steve gahBauer

O

ne subject that invariably comes up at nearly every maintenance conference is computerized maintenance management software (CMMs). the 9th reinventing Maintenance conference convened by federated Press in Mississauga, Ont. earlier this year was no exception. it’s a toss up how much good it does. richard Beer, president of trO Maintenance solutions in Mississauga provided a presentation on how to maximize the software’s effectiveness.

One of the issues users have with a CMMs is a lack of meaningful reports. the problem is usually ineffective data collection, inadequate processing and/or superficial analysis. a well-designed CMMs is a tool for: planning, resourcing and reporting of all maintenance activities; effective lifecycle management; and diligent tracking and recording of all expenditures. Properly applied it facilitates analyzing, planning and scheduling of activities, more proactive maintenance, and compliance to regulations, plus a historical record of all equipment. to do all this, the software must contain a labour module, provide objectives, history and nomenclature of each piece of equipment, track inventory and parts history, produce work requests and work orders, and provide estimates and procedures for planning and executing time-based preventive maintenance (PM). work orders develop equipment history. they should be categorized into wO for PM, breakdowns, blanket orders, standard work and special requests. here are Beer’s golden rules of data management: • consistent terminology • have a naming convention • use a coding structure (smart codes) • go from general to specific • determine child/parent relationship for data management • allow no special characters or acronyms to be used • include effective database sorting • beware of garbage in – garbage out • provide database back-up • identify resources to determine the value of data, ask yourself whether it’s collected effectively, consistently and reliably, sort out what is collected and scrub it before use, and decide how the technology will be used and how the information will be organized into meaningful ports. that way, a CMMs will be an effective tool for providing desired information and lead to improved maintenance management.

Steve Gahbauer is an engineer and Toronto-based freelance writer, the former engineering editor of PLANT and a regular contributing editor. E-mail gahbauer@rogers.com.

Comments? E-mail jterrett@plant.ca.

President Arlene Anderson (L) and founder Sam Holman tour the Sam Bat plant.

www.plant.ca

12-14-PLNT.indd 13

Comments? E-mail mpowell@plant.ca.

PLANT 13

12-11-26 7:18 AM

Operations

>> think lean

apply continuous improvement to employee behaviour and eliminate the wasted time that saps productivity.

By riChard Kunst

P

lant processes may be humming along efficiently but certain employee behaviours could be sapping productivity and quality. Your people are a valuable resource that will benefit from some continuous improvement of their own.

Many employees will tell you it’s acceptable to take one sick day per month off and there shouldn’t be any repercussions. This represents a 0.5% labour increase, not including the additional cost of managing the disturbance when the absence occurs and the impact it will have on other team members and production goals.

Many years ago a lean sensei taught there is a strong relationship between attendance, performance and quality. A poor attendee is a poor performer and a poor performer naturally generates poor quality. If you manage employees around performance issues it will take time to gather data only to be told by human resources that you have failed to provide proper training or guidance.

Many companies have stealth programs known only to management, yet the people on the ground know who the marginal team members are and quietly wonder why they aren’t dealt with.

Make attendance tracking visible.

Initially you need a matrix sheet indicating employee names along the “X” axis with the option of including employee pictures along the “Y” axis squares.

Colour-code the individual’s attendance record using the following: • Green = attended and stayed for full scheduled shift.

• Yellow = arrived late or left early without prior notification.

• Red = did not show for scheduled shift.

• Blue = approved absence.

Two critical elements are needed to support the initiative: an attendance policy and a weekly commitment to meet with casual absentees.

You may get a negative reaction at first, especially from the poor attendees, but this will pass.

Another attendance trick learned from the sensei involves greeting your workers as they arrive before a shift. Show up 15 minutes early and shake every employee’s hand, thanking each one for coming to work and tell the worker how you look forward to his or her personal contribution for the day. The sensei noted employees may like and respect you as the leader but will be less keen about a personal audience each morning. Chances are many of them will arrive more than 15 minutes before the shift starts.

It takes time to change a culture. Commit to the morning greeting every day for a few weeks before doing it on a more random basis.

Success from leading by example lies

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Managing

people

fOCus On details that Change the Culture

Eliminate inefficiences in the plant by engaging employees.

in the details. For example, during daily report-outs at one plant, managers were gathering garbage from the floor and placing it in local wastebaskets. This would occasionally add significant time to the report-outs. Soon local leaders were doing a quick scan and clean before managers arrived, a practice that became embedded in the plant culture.

Keeping the smoking area clean at another plant offers another example.

Smokers were not using the receptacles to butt out. Management decided to add more receptacles but the behaviour con-

tinued, so a sign was added. That didn’t change anything so the area was closed.

Leading by example Another company handled the same problem differently. A manager started the day by picking up spent cigarette butts and placing them in a receptacle as smokers tossed them on the ground. Other smokers asked him why he was doing this.

He told them he didn’t want to be one of those responsible for losing the smoking area because of butts on the ground.

Within three days the area was free of

>> tech tip

Shaft current bearing damage how to prevent it in large motors

C

PHOTO: THINKSTOCK

apacitive coupling and the resulting shaft voltages and currents exist in all induction machines. in smaller machines, there isn’t enough energy to discharge across bearing surfaces. however, in pulse-width modulated variable frequency drive applications, the high carrier frequency (pulses) and the resulting wave shapes induce a voltage and current into the shaft.

On smaller motors (under 100 hp) grounding the drive-end shaft will reduce the current to a manageable level. On larger motors (over 100 hp) you usually have to insulate the opposite drive-end and ground the drive-end with a brush to redirect and reduce shaft currents. this prevents the circulating currents from damaging the bearings in the driven equipment.

Bearing failure due to shaft currents may occur within minutes or

butts. No sign was needed, just someone showing leadership and humility.

Bank time is a useful tool for employee empowerment and controlling payroll costs. Many companies offer tentative working days, between Christmas and the New Year but those thinking of the employees’ best interests want an extended shutdown. Normally make-up days are scheduled in advance so there’s no interruption to employees’ pay.

When applying bank time, employees work overtime with the option of either getting compensation or banking up to 40 hours within a calendar year. They can withdraw banked hours according to company policy, such as half- or full-day allotments with seven days notice.

Banked time may also be used during slow periods to avoid layoffs.

If the vacation cycle starts in May and banked time is not consumed, one option is to pay employees and start the cycle again.

People are an important resource.

Leading them by example while being visible and creative about attendance issues and daily work behaviour will help eliminate inefficiencies that waste time and sap productivity.

Richard Kunst is president and CEO of Cambridge, Ont.-based Kunst Solutions Corp., which publishes the “Lean Thoughts” e-newsletter and helps companies become more agile, develop evolutionary management and implement lean solutions. Visit www. kunstsolutions.com. E-mail rkunst@ kunstartofsolutions.com.

Comments? E-mail jterrett@plant.ca.

months. the fault is very specific and will appear as fluting on the outer race and frosting on the inner race. in misaligned and belted applications, the fluting will be heaviest on the load side of the bearing. the shaft voltages and currents in many variable frequency drive applications will not reach high enough levels to rapidly degrade the bearings. there are usually several options for determining whether this is going to be an issue. One is to allow the motor to operate and fail, address the issue and install shaft brushes after the first failure. another is to install shaft brushes and insulated bearings on all variable frequency drive-operated machines. a third option is to have a service company test for shaft voltage. shaft voltages can’t be detected with a multimeter unless they are severe. instead, this requires an oscilloscope of 100 Mhz or greater (preferably 200 to 300 Mhz). values of 20 to 120-plus volts (common mode) peak-to-peak, and discharge patterns ranging from 6 to 80-plus volt peak, indicate there are issues that must be addressed.

Condensed from a Motordoc Newsletter by Dr. Howard W. Penrose, with permission.

November/December 2012

12-11-26 7:18 AM

Trade << Management

Taming the

RUSSIAN BEAR IT’S EXPORTING FOR THE COURAGEOUS Considered by many to be a pariah state characterized by risk and corruption, there is “huge potential” for foreign investors.

BY MARK DRAKE

W

riting about Russia in “The Tiger,” author John Vaillant summarized the late 1990s business scene: “….a whole new frontier has opened up, much of it on the black market. The line between politicians and mafia, and between legitimate business and crime, has blurred almost beyond recognition. This is the Wild East and business is booming.”

This descent into what Eric Reguly (The Globe and Mail) describes as “crony capitalism, theft, corruption, chicanery, boorish behaviour, violence and gangland hits” began when the Soviet Union broke up in the early 1990s.

Reguly wonders why any intelligent investor would put money into such a “pariah state.”

In more measured tones, Deloitte in its 86-page guide to doing business in Russia (www.deloitte.com/ru/insights/dbir) notes there’s “huge potential for foreign investors…especially in technology and innovation, [the] challenge [being] to determine whether the opportunities are attractive enough to outweigh the well known marketing and political uncertainties.”

And Export Development Canada describes it as having a “challenging environment” (www.edc.gc.ca).

With these caveats let us see what faces the international trader/investor.

Overall the economic situation could be described as “not bad.” This huge country with a population of more than 140 million has a GDP per capita of close to $13,000. Growth has slipped a tad from 4.5% to 3.7% (compare Canada at 2.6%), but inflation is set to fall from 8.4% to 7.7%. The economy, like Canada’s, is highly resource-dependent and relies heavily on export income from oil and gas, with overall results depending much on price levels. However, the importance of this sector highlights an area of great opportunity for Canada – particularly related to technology and services. The country is one of Canada’s 13 priority markets, and International Trade Minister Ed Fast recently headed a trade mission to St. Petersburg and Moscow with 30 Canadian business representatives in tow,

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representing areas of opportunity such as oil, gas and mining services, agriculture and food processing technology, aerospace and timber frame construction.

As Russia continues its modernize, it urgently needs foreign capital, technology and partnerships in these areas, and in transport, general infrastructure and ICT. Canada’s and Russia’s commercial relationship is nearly 100 years old, and last year bilateral trade was $2.8 billion, including $1.5 billion of Canadian exports – machinery, industrial equipment, aerospace products, meat and seafood and of course resource related services and equipment. Russia’s imminent accession to the World Trade Organization (WTO) should increase opportunities as tariffs fall and investor protection improves.

A Foreign Investment Protection Agreement (FIPA) is already in place but requires updating to provide “a genuinely transparent, predictable and stable investment climate [and] to inspire greater investor confidence.” Other Canada-Russia collaborative arrangements exist on agriculture, space, science and technology, and EDC has an agreement with Sberbank, Russia’s largest credit institution, to support the purchase of Cana-

Significant opportunities for the courageous investor.

dian goods and services. Foreign Direct Investment (FDI) by Canada remains relatively small at $725 million, which suggests there are significant opportunities for the courageous investor.

Tackling corruption Canada has a strategic marketing plan for Russia pulled together with input from business and industry, plus detailed reports on the construction and building materials sector, and on bio-energy, which are available under restricted access conditions at www.international. gc.ca. The site also notes construction and related opportunities around the Olympic Winter Games scheduled for Sochi in 2014.

>> Leadership

Get organized

Basic steps that lead to business success

BY CHRIS BART

I

t’s not easy for plant managers to stay abreast of the latest wisdom from all the “experts” while facing the many challenges of operating a manufacturing operation. Here are six basic steps that will lead to business success: • Know why your plant exists. Jack Welch, former CEO of GE, said that the secret of corporate survival is “to make products of the highest quality and offer them to customers at the lowest price while acting in an environmentally responsible and sensitive manner.” Serve your stakeholders: customers, employees and society.

• Focus on what’s really important. Prioritize the key items and tackle them one at a time. The temptation is to multi-task, but that often leads to many things started, few things completed.

• Don’t get distracted. You will likely encounter unexpected losses, elusive financial goals or senior management that is flummoxed by seemingly “insurmountable” problems. Keep your eye on the mission.

• Blame yourself. When things are going wrong, it’s usually the other guy’s fault. Adopt a different tactic. Assume it’s at least partly your fault and join with your team in the pursuit of a solution.

• Communicate with your troops. The plant is on track but there are engagement problems among workers. Share the company’s goals, strategies and expectations with staff, and do so regularly.

• Lead by example. Plant managers who want the best performance must perform well themselves. Every act, conversation and decision is an opportunity to shape plant culture in a positive way.

Chris Bart is the author of A Tale of Two Employees and the Person who wanted to Lead them. He can be reached at www.corporatemissionsinc.com.

PHOTO: THINKSTOCK

The press has covered recent events in Moscow following job swaps at the top, and the evident dissatisfaction of the average Russian with the seemingly endemic levels of corruption. Prime Minister Dimitry Medvedev has made some effort to tackle low-level corruption, but much more remains to be done. In Transparency International’s corruption perception index Russia rates as 143 out of 182 countries, with a score of 2.4 (where 10 is good and one is highly corrupt). Canada is ninth with a score of 8.7 (www.transparency.org).

The World Bank’s “Ease of Doing Business” gives Russia 120 out of 183 in ranking (www.worldbank.org). The World Economic Forum (www.weforum.org) places Russia 66th out of 142 countries rated for international competitiveness.

Key improvements they would like to see include: strengthening the rule of law; better protection of property rights; and a more efficient judiciary. WEF notes the market is dominated by too few large firms and has inefficient restrictions on trade and foreign ownership.

For more information contact EDC for country and market overviews, reports

by KPMG (www.kpmg.com) for tax and legal structures, the Canadian Trade Commissioner Service (www.tradecommissioner.gc.ca) for market reports, and the European Bank for Reconstruction and Development (www.ebrd.com) for background on project finance in Russia, plus a report on general economic conditions.

Finally, prepare to tame the Russian bear with a travel and business advisory at www.voyage.gc.ca. And when in Moscow check whether the Cirque du Soleil – one of Canada’s most successful exports – is still playing at the Kremlin Palace Theatre.

Mark Drake is former president of Electrovert Ltd. and the Canadian Exporters’ Association. E-mail corsley@ videotron.ca.

Comments? E-mail jterrett@plant.ca.

PLANT 15

12-12-03 10:21 AM

Management

>> Financing

Growth strateGy

how aNd whErE to SEcurE thE capital you NEEd

Newer SMEs will find getting financing from banks challenging, but there are other options.

By StEphEN Shaw aNd GlENN FraSEr

A

cquiring the capital needed to grow is challenging for young manufacturing businesses. Small and midsize enterprises (SMEs) are likely to have working capital tied up in receivables and inventory leaving little free cash flow to invest in product development, information technology, facilities, equipment or acquisitions.

Take the owner of a four-year-old snack manufacturer who approached his bank about financing to update his plant. The banker told him the company’s security and track record was not sufficient to secure a loan.

Indeed, it’s difficult to secure affordable financing for organic growth or acquisitions until your business attains a certain size, longevity, or has sufficient collateral or cash flow. So what’s a manufacturer to do?

Go beyond your “go to” source. Owners tend to develop a relationship with a principal lender, typically a bank. Banks offer term loans ranging from a few months to several years for working capital requirements and purchases of equipment or facilities. However, securing a bank loan generally requires stable earnings and cash flow, plus significant tangible assets.

And when it comes to financial covenants, banks are strict about borrowers meeting requirements.

Alternative lenders offer a variety of financing arrangements that might be better suited to certain circumstances and goals.

Be open minded and consider these options: Asset-based lenders. Term loans and leasing arrangements are customized to the needs of each business. This type of financing is particularly helpful when you don’t have sufficient assets on your balance sheet but you want to invest in additional assets, such as equipment, to expand. While asset based lenders typically charge higher fees and interest rates (an extra 0.5% to 2%), they also offer more borrowing capacity because they take a security interest in real estate, equipment, inventory or accounts receivable. Moreover, asset-based lenders are more flexible about the ways borrowers intend to use the loan, plus the covenants are better suited to growing businesses.

Sub-debt lenders. Subordinated loans (also called junior debt) are backed by collateral but rank second to a company’s senior lenders. These lenders also customize loan strategies. This is helpful when you want to buy another company and there’s a gap between the purchase price and the financing currently in place, or when there are multiple expenses related to growing the company that needs to be funded.

These loans are less secure, so a sub-debt lender will expect a rate of return in the range of 10% to 25% with a maximum payback period of about three to five years. These lenders may require a return of interest plus additional compensation such as a participating right, a warrant or an option to acquire shares in the company. Some subordinated debt is convertible into equity should the borrower be unable to repay the loan

16 PLANT

15-16-PLNT.indd 16

or if the company’s prospects improve to the point that becoming an equity shareholder is appealing.

Tailor a financing strategy to specific needs and circumstances.

PHOTO: THINKSTOCK/ STOCKbyTe Private equity. It’s an option if you are planning ambitious, rapid growth the fair market value could be considerably higher. An and you’re prepared to exchange some ownership and appraisal could also be used to establish covenants with autonomy for capital and expertise. Private equity existing lenders to add financial capacity. investors support strategic growth with their capital and Have a financing assessment. A financing assessexperience. These lenders want to work with owners ment involves identifying management’s business who have clearly differentiated product/service lines, objectives and capital requirements, assessing the a solid customer base, a sound business plan and a operation and its credit profile, and developing a capital capable management team – along with good growth plan that matches relevant lending criteria. Financing potential within five years. advisors can connect a borrower with their own lending sources to secure optimal terms, rates and conditions.

If an assessment shows your company to be overexSecuring financing tended, there may also be an opportunity to right-size There are, in fact, thousands of lenders offering diverse the balance sheet by recapitalizing. funding alternatives. Here are three tips for securing Tomorrow is unpredictable. Be sure you have the appropriate, affordable financing: right structure in place to maintain financial strength as Make your business “lendable.” Certain features you grow your business for the future. make any business an attractive borrowing prospect for lenders. Continually strengthen your practical Stephen Shaw (stephen.shaw@mnp.ca) is the national business plan, your balance sheet and track record of and regional leader of MNP Corporate Finance Inc. profitability, pursue healthy financial practices, and (www.mnpcororatefinance.ca). Call (416) 596-1711. have a capable management team in place.

Glenn Fraser (glenn.fraser@mnp.ca) is the leader Secure an equipment appraisal. ManufacturMNP’s GTA region Food & Ag Processing practice ers and processors often have valuable balance (www.mnp.ca). Call (416) 596-1711. sheet assets that aren’t fully utilized. Perhaps you have equipment that’s several years old. While this may be Comments? E-mail jterrett@plant.ca. fully depreciated on the company’s financial statements,

3.

1.

2.

>> insolvency

When the chips are down

what to do when a supplier or customer runs into trouble

By Mark BorkowSki

E

ven the strongest companies will encounter a situation when customers or suppliers get into trouble. Jeffrey carhart, a partner with the law firm Miller thomson and an expert in corporate bankruptcy and insolvency, offers the following insights when someone else’s red ink threatens to stain your balance sheet: • Seek security. if a really important customer is in trouble, whenever possible obtain security in unpaid inventory or equipment. there are rules under personal property Security act legislation that allow a supplier to do so relatively easily and on the basis that it will “slot into first place” in terms of the specific inventory provided. although rare, it may be possible under the companies’ creditors arrangement act (ccaa) for the debtor to designate a supplier as being “critical” and that may pave the way to getting pre-filing accounts receivables paid.

• Stay on top of the situation. Most ccaa proceedings are based around a sale process rather than reorganization. the debtor may try to assign your supply contract without your consent or participation so be prepared to assert your rights. canada has a remedy that allows unpaid suppliers to try to recover what are called “30-day goods” in a receivership

or a bankruptcy situation – but not in a ccaa situation, and a number of picky requirements must be met.

• There are positives. Be alert to opportunities that involve acquiring a competitor or market share, but understand the process. you’ll be asked to buy the assets “as is/where is” and there won’t be long lists of representations and warranties; therefore, take out all of your concerns through the price in the agreement. usually the process is competitive. Make your offer look the best while not giving away something that’s critical for your protection.

• Exercise due diligence. if you take on employees, know exactly what is owing to them, and how those arrangements will be moved over to a new entity.

Manufacturers must deal with companies that are in financial trouble. Stay on top of the insolvency and bankruptcy process to avoid being hurt by it.

Mark Borkowski is president of Toronto-based Mercantile Mergers & Acquisitions Corp., which specializes in the sale of privately held companies. Visit mercantilemergersacquisitions. com. Jeffrey Carhart is a bankruptcy and insolvency partner at Miller Thomson in Toronto. Visit www.millerthomson.com.

Comments? E-mail jterrett@plant.ca.

November/December 2012

12-11-26 7:20 AM

Materials << Sustainability Louis Interiors is building its environmental credentials by carefully managing its carbon and waste output.

By ReBecca ReId

N

estled in an industrial park in northern Toronto is a small manufacturer of fine custom furniture.

On any given day, interior designers from around the world call on it to produce unique designs that will please wealthy patrons at destinations such as the Trump International Hotel in Toronto and the St. Regis in Mexico City.

It’s quite a feat for a company of 40 employees. Yet there’s more to the story at Louis Interiors Inc. Over the years, the family run business has diversified its offerings and customer base while building solid environmental programs.

Susie Muller, granddaughter of company president and founder Louis Muller, says the company has always tried to be environmentally friendly, initially by ensuring they generate as little waste as possible.

“We’re always searching out organizations that could reuse our waste.”

If any leftover fabric and off-cut wood can’t be used in the manufacturing process, it’s sent to a local manufacturer of puppets and crafts – along with the sawdust generated at the shop.

But it has really been the past four to five years that the company has made a move towards sustainable materials – a decision made by conscience not customer demand.

“Our thought is, if it’s environmentallyfriendly, economically feasible and doesn’t impact the quality of the furniture, why wouldn’t we do it?”

Furniture is hand-made using tradi-

Traditional and

green

MakInG custoM FuRnItuRe WItH sustaInaBLe MateRIaLs its export business suffered as result of the recession. Pre-recession, US customers accounted for 80% of the business with domestic clients making up most of the remaining 20%. Now customers are evenly split between Canada and the US with a smattering of clients worldwide.

Though the business has changed, the handcrafted approach to furniture making hasn’t. There are no conveyors, robots, or heavy machinery at the 20,000 square-foot plant, which certainly dials down the energy intensity.

Susie says using mass manufacturing processes would take them out of their market niche where they have built a solid reputation for providing handmade, high-quality, durable furniture.

Yet the company doesn’t completely eschew technology; it’s planning to purchase a CNC machine for the woodworking area.

Chairs made by Louis Interiors at the posh Turf Lounge in Toronto.

tional European methods Louis learned during his childhood in Hungary (she defines traditional European as “good looking and long lasting”).

As a boy, he was taught the family trade – tying rope – and as a young man, he took an interest in designing and

>> Green Manufacturing

Show how sustainability pays

align it with business objectives and cost savings

By BRett WILLs

M

any manufacturers are practicing sustainability in one form or another, but maximizing the benefits requires imbedding it in the business strategy. align sustainability with objectives and show how it will drive the business. Here are a few tips that will help you make the case: Stop talking about the environment. climate change, biodiversity depletion, human rights and community support are typically not at the top of the executive agenda. talk instead about margin protection, increased revenues, attracting employees and risk mitigation.

Measure and report what matters. When measuring and reporting the results of an initiative such as increased diversion rates from landfill, reduced energy use or carbon reduction, be sure to include the associated cost savings. achieving a 90% diversion rate, or 25% reduction in carbon will excite few people. achieving $100,000 or $1 million in cost savings by realizing the goal will get people’s attention.

Link every initiative with a business objective. this can be tricky. For example, implementing a volunteer program may be viewed as a “cost” because of lost productivity. turn it around by identifying the objective as reducing employee turnover or become a top 50 Best Managed company. show how offering a volunteer program actually attracts top talent and helps to retain employees by citing the hundreds of studies and reports clearly illustrating this fact, or surveying current employees.

Brett Wills is the director of the Green Enterprise Movement and a senior consultant with High Performance Solutions in Cambridge, Ont. E-mail bwills@hpsinc.ca.

Comments? E-mail jterrett@plant.ca.

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PHOTO: TURF LOUNGE

building his own furniture.

Louis and his wife emigrated to Canada in 1956. He put the skills he learned as a child in Hungary to use, at first taking up employment with an upholsterer. At the same time, he started working out of his garage, building and selling his own custom furniture.

Five years later, he opened his first store in Toronto’s Rosedale neighbourhood, and shortly after, moved to Yonge Street where he primarily sold breakfast nooks, a hot commodity at the time.

When their popularity waned, Louis already had a solid reputation and a cadre of dedicated fans. His customers weren’t necessarily wealthy, but “he priced his products very reasonably and his clients had an eye for quality,” she adds.

Thirty years ago, Louis’s son Bill took over day-to-day management of the business. As vice-president, he has branched the company out into the interior design industry.

“He wanted to do for hospitality what his father did for residential designers, which was to provide style and attention to detail, something he felt was lacking in the industry,” she explains.

With this new business model, Louis Interiors no longer partakes in furniture design – that’s left up to the interior designers. For the small amount of design work they do, the company uses two software suites: Rhinoceros 3D and AutoCad 2009.

According to figures posted by Industry Canada, the company achieves sales between $1 million and $4.9 million per year.

Like many Canadian manufacturers,

Series of workshops The factory floor is best described as a series of workshops and since energy use doesn’t have a huge impact on the company’s carbon footprint, green initiatives are focused around materials.

Soft maple certified by the Forestry Stewardship Council (FSC) provides the foundation for any piece of furniture – the frame. The company sources locally from forests in northern Quebec and Ontario, which decreases shipping and fuel costs, and intends to participate in a program to replace as many trees as they use each year.

Wood is dried by kiln, not with chemicals. Any medium-density fibreboard (MDF) is formaldehyde-free. Cutting, carving, gluing and lacquering are done in a woodworking area adjacent to the main factory floor.

“We use materials that are easy on the environment and have low toxicity levels. For example, water-based versus solvent-based lacquers are something we have tried, and try often to use on our products,” she explains.

However, there is one drawback to some water-based products: they can release more volatile organic compounds (VOCs), which Susie notes, can pose a health risk to staff.

Ultimately, being sustainable wasn’t a huge undertaking for Louis Interiors because many of the traditional furniture making methods Louis brought with him from Hungary were already easy on the environment.

For example, Italian twine, made from Continued on page 18

PLANT 17

12-11-27 9:52 AM

Innovation

>> Health and safety

Traditional methods Continued from page 17

hemp, is used to tie down the coils.

“Hemp is one of the faster growing biomasses known,” Susie says. “It’s environmentally friendly as it requires very few pesticides and no herbicides. It’s called a carbon-negative raw material.”

Jute webbing, used to provide support for the upholstery, is made from the skin of the Jute plant and is biodegradable.

On top of that, it’s strong.

Also made from Jute is Hessian fabric, more commonly known as burlap in North America. Louis Interiors uses heavier Hessians to cover springing and spring units.

A layer of 100% organically grown cotton felt is placed on top of the Hessian to prevent coils from poking into the foam.

Tying down the coils and attaching the support fabrics are carried out on the main factory floor, just outside the woodworking room, which the second stage of the manufacturing process.

Production

FATIgUe Upper body fatigue can affect strength and motor control.

takInG It out oF tHe WoRkPLace auto21 research investigates improving quality and reducing injury in the automotive workplace.

Natural materials At the third stage, in an adjacent area on the main factory floor, the foam is attached though there’s a separate room where it’s stored and cut.

By default, the company uses polyurethane foam for seating but customers have an option to use a soy-based foam called Koosh, manufactured by Torontobased Foamite, which is Louis Interiors’ main foam supplier.

Upholstery is the final layer. The upholsterer takes charge of this process, with employees at his disposal who stitch and cut fabric according to his direction.

Marlene Makowka has been working with Louis Interiors for about 20 years, and says the company’s use of sustainable, natural materials is definitely a sell for some of its clients. Makowka is a co-owner and founder of Toronto design firm Hefele-Makowka.

“People who are spending money for Canadian-made goods deserve to know they are getting products that are formaldehyde-free. They could find products that cost much less but suffer.”

Though semi-retired, Louis is still active at the company. He tours the plant every day to ensure things are running smoothly.

Although the business he started more than 60 years ago has come a long way from its humble breakfast nook beginnings, when it comes to its manufacturing processes, not much has changed.

Traditional is still a success, with global installations, a lean carbon footprint and solid quality all contributing to the niche furniture manufacturer’s competitive edge.

Rebecca Reid is a writer and editor with the Business Information Group and a regular contributor to CanadianManufacturing.com. E-mail rreid@ canadianmanufacturing.com.

Comments? E-mail jterrett@plant.

18 PLANT

17-18-PLNT.indd 18

PHOTO: THINKSTOCK/ DIGITAL VISION

By RIcHaRd WeLLs

F

atigue is complex and surprisingly little is known about it in modern production processes. We do know that links have been made to quality deficits and musculoskeletal disorders, both of which are significant concerns in the automotive sector.

Fatigue in the trunk, shoulders, hands and arms can have multiple negative effects on health and workplace performance by reducing strength and impairing motor control. It’s not hard to see how this could lead to product quality deficits.

Fatigue experienced over a long period

is believed to be a precursor to the development of work-related musculoskeletal disorders such as shoulder injuries or lower back pain.

The science and practice of ergonomics is sometimes thought to be only relevant to the prevention of musculoskeletal disorders, but developing methods and procedures for identifying fatigue in the workplace could greatly increase the impact of ergonomics.

A small number of studies point to the importance of fatigue in the workplace.

For example, a study in a Volvo assembly plant showed assemblies with a high ergonomic load resulted in 3.4 times more quality errors compared to assemblies with low loads. We also know that highly physical workloads have been linked to increased rates of musculoskeletal disorders. Fatigue, as a result of the high workload, may be a mechanism for these effects. If a worker has to exert

>> alternative Power

UBC develops wireless EV charger

Frequency 100 times lower than current technologies

A

team of university of British columbia (uBc) researchers have invented a wireless technology that charges electric vehicles (eV) and eliminates the constant plugging and unplugging when the vehicle is out of juice. “a significant concern for charging cars wirelessly has been the high power and high frequency electromagnetic fields and their unknown, potential health effects on humans,” says uBc physics professor Lorne Whitehead.

Whitehead and his team invented a completely different method operating at a frequency 100 times lower and with negligible exposed electric fields. their solution uses “remote magnetic gears” – a rotating base magnet driven by electricity from the grid, and a second located within the car – to eliminate the use of radio waves. the base gear remotely spins the in-car gear to generate the power required to charge the battery.

Four wireless charging stations have been installed at uBc’s Building operations parking lot and they service vehicles retrofitted with the new technology. tests show the system is more than 90% efficient compared to a cable charge. a full charge takes four hours and enables the vehicle to run through an eight-hour shift. “one of the major challenges of electric vehicles is the need to connect cords and sockets in often cramped conditions and in bad weather,” says david Woodson, managing director of uBc building operations. “the feedback from drivers has been overwhelmingly positive.” the magnetically driven charging system was originally designed for medical devices, but a larger system, supported by the nseRc Idea to Innovation Grant, was tested at uBc as part of the campus as a Living Laboratory initiative.

For more information, visit www.ubcwirelesscharging.ca. — Matt Powell

a high insertion force on a part, fatigue could reduce their strength and precision capabilities, resulting in misaligned parts or parts that were not fully inserted.

Fatigue may affect other aspects of performance too. Lower limb fatigue has been shown in experiments to be a risk factor for slip-induced falls.

Ergonomic assessment tools to assess the load on the body at specific points in time are well developed but it’s challenging to evaluate the effects of multiple tasks over a day. Local fatigue may be a relevant biomarker for cumulative exposure to repetitive or sustained work and it could, in theory, be documented by a variety of movement control, physiological and electrophysiological measurements.

But practical use of such measures is hampered by a lack of knowledge, despite numerous laboratory studies.

A project supported by the AUTO21 Network of Centres of Excellence is providing a better understanding of these issues. The project team includes specialists in biomechanics, ergonomics, industrial engineering and movement control.

Measuring fatigue In the first phase, a range of fatigue measurements that could be used in a workplace are tested. They include maximum hand grip strength, variability in the force of a constant hand grip, tremor and the ability to do pointing tasks with and without hand support, and ratings by the workers.

In the upcoming phase, companies will be invited to collaborate on the project.

Measurements in high demand jobs will be contrasted with low demand jobs.

Jobs will be selected based on: if at least one of the body regions raises concerns noted by walk-throughs; the company’s administrative data on injuries; consultation with management, workers and supervisors; and body discomfort diagrams. A detailed task analysis of each job will show a relationship between demanding job requirements.

In the project’s last phase, two sets of jobs will be selected with higher and lower rates of quality deficits and deficits traceable to a single workstation or operation. This will allow testing of the main hypothesis that operations with high quality deficits have one or more high demand tasks and workers show evidence of fatigue.

The ultimate goal is to show a relationship between the results of task analysis, measures of fatigue and quality deficits not related to supplier quality or parts.

This knowledge will lead to better assessment of existing conditions and better designs, thus maximizing quality and performance while minimizing the negative effects of fatigue and the longer-term development of musculoskeletal disorders.

Richard Wells is a professor in the Department of Kinesiology at the University of Waterloo and an AUTO21 project leader. For more information please visit www.auto21.ca.

Comments? E-mail jterrett@plant.

November/December 2012

12-11-27 9:52 AM

Production << Trends About 25% of the 200,000 US manufacturing jobs created in 2011 are the result of onshoring.

PHOTO: THINKSTOCK

Production and jobs are returning to North America but benefits to Canada will be limited.

BY MAtt Powell, AssistANt editor

O

nshoring, reshoring, inshoring, backshoring: all terms coined to describe a phenomenon that’s bringing US manufacturing jobs back from places such as China where lowcost advantages are quickly diminishing.

Whatever one chooses to call it – let’s settle on “onshoring” – is giving manufacturers a much needed lift as rising wages in emerging markets, a high-value renmbini and volatile transportation costs make China a less attractive place to run lower-cost production.

Offshoring – the process of substituting foreign factors of production for domestic ones to produce goods and services abroad and then import them – is slowing down. According to a report

by TD economist Michael Dolga, Offshoring, Onshoring and the rebirth of American manufacturing, an upswing in onshoring activity accounts for about 25% of the 200,000 US manufacturing jobs created since 2011.

The report goes on to say rising capital-intensity across the manufacturing sector is also gradually eroding the benefits of producing goods abroad.

It’s happening for a number of reasons. More companies are embracing the domestic benefits in the US thanks to factors such as intellectual property protection, tighter supply chains, mass customization and an abundance of natural gas that’s lowering energy costs.

“The manufacturing sector is ripe for revival as changing global conditions, domestic advantages and productivity gains are making North American manufacturing more attractive, which will hinge on increasing competitive advantage in key

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19-20v1PLNT.indd 19

OnshOring: Production

reTurNs whAt’s iN it for CANAdA?

industries,” writes Dolga.

Another report by the Boston Consulting Group, Made in America again: why manufacturing will return to the US, suggests American manufacturing is headed for a renaissance.

By as early as 2015, it will become more cost effective to make goods in the US, the report says, estimating up to 30% of the goods imported from China will shift production to America. That would reduce the US unemployment rate by 2% and lower the nonoil-related merchandise deficit by up to 35%.

So what does this all mean for Canada?

Nigel Southway, chair of the Toronto chapter at the Society of Manufacturing Engineers (SME), says onshoring benefits for Canada aren’t rosy, but he’s not waving the white flag. Prosperity will depend on getting the government to support manufacturing and address the over-valued dollar “If you’re a business owner with a plant in the US and one here, where are you going to move production? It’s probably not here,” he says. “The dollar is a huge problem for some people.”

Southway also heads SME’s Take Back Manufacturing (TBM) initiative, a campaign launched in mid-2011 to help manufacturers rebalance what’s made

offshore and what’s made here.

The plan is to raise awareness and prepare for the return of jobs, while getting governments involved to work on tax, trade and education policies that enhance manufacturing competitiveness. TBM is also working to ensure manufacturer’s have the resources they need to improve technology development, productivity and innovation, and to create a stronger career development infrastructure.

“I’m not giving up, but the government needs to realize that manufacturing’s important. If it did, it would look at some way to offset the dollar for Canadian manufacturers,” he says.

Skills needed to grow Southway says the focus should be on being more competitive with the US because onshoring will boost demand for goods.

“It’s scary that we’re not even focusing on the US, that we’re looking outside the US to compete. But if you can’t compete with the US, how can you compete?” he says.

A 65 cent loonie wouldn’t help.

Southway is concerned manufacturing has been hollowed out so much in the last decade we wouldn’t have the skills needed to compete.

“We’ve trapped ourselves with a lack of skills because people have redeployed themselves,” he says.

Indeed, the jobs coming back aren’t what they used to be. The work will be more capital intensive. Companies that produce low-value goods, such as apparel and textiles, will stay away, while computers, electronics, machinery and fabricated metals are most likely to return. Those sectors, along with plastics and rubber products, mean an additional $100 billion in US output.

That’s where Canada has an advantage, says Martin Lavoie, director of manufacturing policy at Canadian Manufacturers and Exporters (CME). Canada is on a path towards a more advanced manufacturing, but continuing down that path will depend on productivity boosts through investments in innovation and technology.

“Boosting productivity means boosting investments in machinery, equipment and ICT, and we’re far behind the US in that respect,” he says. “If there’s a shift in the economics of Canadian manufacturing, it has to be in productivity, and that may require less focus on job creation.”

But jobs have stabilized, he adds, and those in manufacturing now represent about 10% of Canadian employment.

The government also needs to step in and do a better job creating incentives for manufacturers to boost investment intentions as well, he says. With efforts to attract manufacturers in US states such as Pennsylvania, Tennessee and Virginia ramping up, Lavoie says the government needs to rethink its incentive strategy and boost R&D grants instead of cutting budgets for innovation.

Harry Moser, president of the Chicago-based Reshoring Initiative (www. reshorenow.org), an industry-led endeavour to bring manufacturing jobs back to the US, says to understand why onshoring is happening, you have to go back to why offshoring happened in the first place.

“The overwhelming reason to go offshore was wage rates, which translated into lower purchase prices for goods brought in,” he says.

Wiggling around regulatory roadblocks was a lot easier and cheaper in China, and it simply made sense to do business in a market home to more than 1.3 billion people where population growth is about 7% a year.

“If you were a big company, you had to be there. You’d build a factory there and keep it busy by sending stuff back to the US and Canada until demand in China caught up,” he says.

The Reshoring Initiative is encouraging companies to use its free Total Cost Estimator (TCO) calculator to approximate the costs of doing business abroad versus at home. Moser says most companies make sourcing decisions based on price alone, which amounts to up to a 30% miscalculation of actual offshoring costs. The calculator accounts all relevant factors (29 in all) to determine total cost of ownership Continued on page 20

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12-11-26 7:35 AM

Trends

>> Business outlook

Boosting manufacturing

The biggest challenge for manufacturers in 2013 will be to increase sales and cut costs.

PHOTO: THINKSTOCK

Continued from page 19

including overhead, corporate strategy and external and internal business costs.

Although onshoring is giving a wobbly manufacturing sector a boost, Dolga estimates the US has recouped about 500,000 jobs, compared to the 5 million lost since 2000. Canadian manufacturing jobs suffered a similar fate, down more than 320,000 between 2004 and 2008.

But wage rates in China are growing 18% per year thanks to a combo of wage increases and currency appreciation, says Moser. This is helping to close China’s cost advantage gap – a welcome advantage for both US and Canadian companies who are dealing with currencies exchanging near parity.

Wage rates are rising In 2000, average wages in China were roughly one-fortieth of what a US worker is paid. Dolga’s report says wage inflation has averaged 12.8% since – more than triple the pace in the US. And Chinese wages are expected to rise to about one-tenth of the US equivalent this year.

At that rate, and should Chinese wage rates continue to climb at a 20% clip in coming years, the gap will close to within 15% of US wages by 2015.

This is also thanks to struggling labour productivity growth, which hasn’t kept pace with rapidly increasing pay, causing Chinese unit labour costs to double between 2001 and 2011.

Moser, who has advised the Obama administration about onshoring, says Canada will enjoy about 10% of US onshoring activities, but most of the opportunities will go to Mexico.

“Canada is at a bit of a disadvantage when it comes to labour costs, but so is the US in that respect. It’s not so much about getting the US companies to put new factories in Canada, it’s about getting Canadian companies to come back too so the US firms can decide whether or not to source from them,” says Moser.

Southway agrees Mexico will get much of the benefit, but that doesn’t mean there aren’t opportunities.

“Mexico is going to the biggest opportunity for teaming up. If you’re manufacturing in Canada and you’re struggling with costs and looking for a trade offset, it’s probably a Mexican facility,” he says.

Diana Petramala, an economist at TD Economics in Toronto, says Canada will find onshoring benefits in supply chains.

“There’s a lot of two-way trade in the production process between Canada and the US, we’ll benefit from supplying those facilities that are ramping up production,” she says.

But Canadian manufacturers will have to get serious about closing their productivity gap with US competitors; otherwise they risk being spectators rather than beneficiaries of this industrial resurgence.

Comments? E-mail mpowell@plant.ca.

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plants (29% to 33%) and acquire companies or lines of business (22% to 28%), which suggests there’s confidence sales will grow.

Only 20% see their pricing as a plus, 64% cite quality, service (60%), flexibility (52%) and the ability to engineer and customize (51%) as competitive advantages. Further down the line are leaner manufacturing (38%), a skilled workforce (34%) and innovation/R&D (30%).

Fifty-seven per cent of respondents identify their biggest challenges as increasing sales, followed by controlling and reducing costs (48%).

Canada’s historically poor productivity growth is also a challenge for 39% of the companies and a surprising 90% say improving it is a major issue, although they intend to address it primarily through training (66%) and to a lesser extent technology (45%). Finding the skilled workers to train is a concern for 39%.

Also of concern is the economy (31%) and being competitive (32%).

The value of the Canadian dollar will be a pain over the next three years for 28% of the companies and a concern for 49% of those who agree it’s making it harder for them to sell to export markets. Only 22% see the loonie’s high value as a positive. Forty-one per cent of them have a formal strategy for managing the dollar, most (46%) are doing so by dealing in US funds, finding a niche (38%) and diversifying markets (35%).

Canadian manufacturers continue to sell close to home. Biggest markets are in Canada (66.4%) and the US (25.1%) but they also have a growing interest in Mexico, China and South and Central America.

Forecast: CAuTIOus

but COnFiDEnT

MANUfACtUrers Are PriMed for BUsiNess Growth senior executives representing companies from across Canada reveal their thoughts on challenges, their operations and the future in PlANt’s 2013 Business outlook survey.

BY Joe terrett, editor

T

here is a lot of scary business in the world today. Europe is tying itself up in knots trying to avoid a euro zone meltdown and wriggle out of its debt mess, there’s escalating turmoil in the Middle East while the US teeters at the edge of a fiscal cliff, threatening recession should political forces fumble and send the country tumbling into the void.

Sure, there are the traditional concerns about a high-value dollar that’s messing up their exports, escalating costs, overseas competition, troublesome American protectionism and poor productivity. But going into to the next year, Canadian companies are confident about their prospects, according to PLANT’s 2013 Business Outlook survey.

Of the senior executives polled, 61% expect orders to increase, 59% are looking at sales dollar values to rise, while 46% bank on higher profits and 37% anticipate higher pricing.

Most (65%) of their companies are small and medium enterprises (SMEs), 83% of them privately owned, and 63% of those firms are family owned. Just 26% identified themselves as subsidiaries of a multinational company. Annual revenues for the entire group will average $66.1 million this year and they’re forecasting revenues of $68.6 million next year.

These results are virtually the same as those cited in last year’s survey and are in line with other surveys, such as the bi-yearly management issues survey conducted by Canadian Manufacturers & Exporters (CME), which shows a positive outlook over the next three years, and KPMG’s survey released earlier this year, which found that 85% of companies are optimistic about their business outlook for the next two years. That compares to 75% of global manufacturers.

The PLANT survey conducted by Bramm Research and in partnership with Grant Thornton LLP, a Canadian accounting and advisory firm, has a margin of error of +/- 4.5% 18 times out of 20.

It shows a significant jump in the percentage of companies that intend to hire over the next three years (from 43% in 2011 to 54%), add new lines of business (33% to 39%), expand their

Ramping up investments Most companies are also looking for new business in the next one to five years at home (40%) and in the US (41%), but they intend to sell in Brazil (16%), Central/South America (16%), Mexico (15%), China (15%) and India (12%).

The Conference Board of Canada has predicted steady growth of 2.3% this year and 2.8% next year. Manufacturers must be reading the tea leaves because survey respondents are ramping up investments. They’re planning to spend more than $1.2 million in 2013, an increase of almost 40% over 2012.

Seventy-eight per cent of them are investing in machinery and equipment, which is the top priority for 39%. Training, technology and R&D are also priorities over the next three years.

Financing capital projects doesn’t appear to be an issue, with 78% confident they’ll find the money. They’re still pursuing traditional financing avenues such as banks and their own revenues, while 25% are taking advantage of government programs.

Most companies intend to drive growth by developing new supplier relationships (45%), creating strategic alliances, joint ventures and partnerships (35%) and entering new markets (30%). But 60% don’t have an acquisition strategy.

Innovation is a top priority for only 30% and almost half the respondents are planning R&D investments by the end of 2013, but the number slips to 43% through 2015.

Although manufacturers are confident about the next year, there is an underlying message in the results: they must be more strategic about growth, put more effort into venturing to markets beyond North America and tackle their productivity issues. And they’ll need to rely on more than quality and service as the key competitive advantages that will advance their businesses.

Download the survey results and a roundtable discussion about the findings featuring panellists from Canada’s manufacturing sector at www.plant.ca.

Comments? E-mail jterrett@plant.ca.

November/December 2012

12-11-26 7:35 AM

Hand Tools << technology

put your toolS away!

W

hen faced with critical equipment downtime on the plant production line, maintenance pros must rely on their tools to get the job done. That’s why it’s important to store them properly. Here are some storage tips from Gray Tools: • Match your storage strategy with the application. A toolbox that’s only 16 inches deep won’t cut it for the professional user.

• Consider the steel gauge of the toolbox itself, because the heavier the toolbox, the thicker the steel gauge.

• Look at slide capacity. Poor slides mean drawers won’t open easily when heavily loaded.

• You need locks and security, as well as safety latches for movement from place to place. And that toolbox won’t go anywhere without the right casters.

• Personal ownership is a good way to cut down on theft. Owners are less likely to leave tools laying around.

(L) Gary Nuttall, president of Gray Tools Canada Inc., and Frank Dominguez, director of marketing.

100

PHOTO: ROBERT ROBERTSON

gray tools’ next years GROWING ITS MADE IN CANADA INDUSTRIAL TOOL BRAND The Canadian manufacturer of hand tools for industrial users is starting its second century by developing its business in new markets.

BY ROBERT ROBERTSON

N

ot many Canadian manufacturers owned by the same family can say they’ve been in business for 100 years, but Gray Tools Canada Inc. reached that milestone, celebrating its

www.plant.ca

21-23-PLNTv1.indd 21

centenary on Sept. 12 as the country’s only manufacturer of hand tools.

The Brampton, Ont.-based company, having made and sold more than 200 million tools, has come a long way since it opened for business at its original Toronto location in 1912 as the Gray Manufacturing and Machine Co. Ltd. The Gray family had been the proprietors for three generations, but the company will be looking at its next 100 years under new leadership. Alex Gray sold the company in May to president Gary Nuttall and director of marketing Frank Dominguez. Gray will remain with the company as chairman.

“This is an exciting year for Gray Tools and its customers. It was important to me that the company continue to be privately owned and maintain close personal relationships with customers,” says Gray.

Nuttall and Dominguez intend to continue the tradition.

“Now that we have purchased the company, many people ask us what we’re going to do differently. The answer, quite truthfully, is nothing,” says Nuttall. “If it was a good business decision, then Alex allowed us to operate the way things should be run. The change ensures continuity within the company.”

The company employs 60 people and operates a 105,000 square-foot plant, warehouse and office facility in Brampton, plus a third-party warehouse in Edmonton to produce more than 5,500 SKUs that include master sets, hand sockets and accessories, and combination wrenches.

Nuttall joined Gray Tools in 2004 as the company’s controller; Dominguez in 2003 as marketing manager. Both helped Gray Tools aggressively seek new business opportunities, despite the last recession, and this includes a much-anticipated boost to global sales.

“We had the benefit of having an ownership that had been around for 100 years. Recessions didn’t scare them, and we saw this as a window to expand our business market share,” Nuttall explains.

About eight years ago, the company recognized the need for a line of quality tools for occasional, yet demanding projects. That led to the development and

>> Supply Lines

Wheelabrator’s new WG Plus de Mexico plant in Monterrey.

PHOTO: WHEELABRATOR

doubleS meXiCan CapaCity The Wheelabrator Group opened a new 34,000 square-foot manufacturing and aftermarket parts and service facility in Mexico.

The company, part of the Norican Group with a plant in Burlington, Ont., manufactures surface preparation systems.

The WG Plus de Mexico plant in Monterrey doubles Wheelabrator’s existing Mexican capacity and will contribute to satisfying demand from “all the Americas.”

SiCk addS offiCe SpaCe Canada’s “positive” economic conditions and stronger sensor sales have prompted SICK Ltd. to move into a larger office in Richmond, Hill, Ont. The Minneapolis-based manufacturer of sensors, safety systems, machine vision, and automatic identification said Canadian demand from automotive production, flight baggage logistics, postal distribution and oil sands production is behind the expansion.

eft aCQuired for $37m Nederman has added to its air filtration capabilities with the acquisition of Environmental Filtration Technologies (EFT).

The Swedish-based company paid $37 million for EFT, which had revenues last year of $125 million.

EFT, based in Charlotte, NC, has subsidiaries in Australia, Germany and France.

Its brands include Mikropul, Pneumafil, Menardi, LCI and Filtex.

Nederman’s Canadian operations are based in Mississauga, Ont.

hart board addS yokogawa Yokogawa Electric Corp. has joined the board of the HART Communication Foundation, which provides global support for its communication protocol.

The manufacturer of test, measurement, instrumentation, process control and information products is a supplier of HARTenabled devices and control systems.

It joins ABB, Emerson Process Measurement, Endress+Hauser, Honeywell and Siemens on the organization’s board.

Yokogawa’s Canadian operations are based in Calgary.

Continued on page 22

plant 21

12-11-29 7:31 AM

Cien

exporting beckons Continued from page 21

launch of the company’s more affordable Dynamic tool brand during the deepest part of the recession in 2009.

Export opportunities are also beckoning from around the world. “We’re now looking at every market,” says Nuttall, noting Canada as being recognized for highquality manufacturing. This, he believes, gives the company a competitive advantage.

That’s kind of ironic considering hand tools have been commoditized by lower-wage countries such as China, making it unlikely manufacturers in higher-cost jurisdictions, and particularly a small market such as Canada, will earn a living actually making their tools at home.

But Gray Tools isn’t competing with retailers such as Home Hardware. Its customers are professional end-users in heavy duty industries such as oil and gas, mining and forestry, as well as some light industry and trades, who are served through close to 2,000 pointof-sale distributors across Canada. And the company makes specialized tools.

When competing against foreign-made products destined for sale in Canada, Nuttall says manufacturing close to home has its benefits.

“They [Asia] like to sell container loads at a time – not 100 or 10 pieces. This is difficult to do in the Canadian marketplace unless you’re in the retail segment,” says Nuttall. “Canada is a small country, which makes it difficult to get work with these order sizes.”

Enclosures Variety from Standard elementS Create complex control desks from standard parts with the Series 2000 modular console system from Hammond Manufacturing.

RAL7035 light grey or stainless steel units stack in multiple combinations to provide equipment support and display functions where they’re required.

Series 2000 Standard widths include: 24 in. (600 mm), 36 in. (900 mm), 48 in. console range (1,200 mm) and 60 in. (1,800 mm).

The base unit comes with either single or dual access; the desk unit with internal access via a lift-up sloping surface; and the turret unit has an angled front face with front/rear access. A stand-alone console unit with an integral sloping top is also available.

Hammond, a global manufacturer of high-performance manufacturing equipment based in Guelph, Ont., says external options such as plinths, footrests or window doors can be added once the basic structure has been designed.

Accessories include electrical mounting panels, 19-in. mounting rails, DIN mounting rails swing frames, cable entries and gas struts.

RAL7035 light grey units meet NEMA Type 3R, 4 and 12 standards, and are rated to IP66, so they can be installed on shop floors and in control rooms. Stainless steel versions meet NEMA 4X for various hose-down or corrosive environments. www.hammfg.com www.plantmagazine.ca/rsc/ 1

Simplify with a free-Standing SyStem Rittal System Ltd.’s SE8 enclosure sets keep it simple.

The freestanding system is fully compatible with the TS 8 top enclosure system for a variety of configurations.

Typical uses are compact machinery and equipment, power distribution and automation systems, which can

Tighter grip in Canada Gray Tools doesn’t balk at a small order. Nuttall says they’ll ship one screwdriver, even if means losing money on the sale. “You wouldn’t be able to do this in Asia,” he says, pointing out that offshore sourcing also involves long lead and delivery times throughout the supply chain.

Dominguez says the company has gained a tighter grip on the Canadian marketplace with the retrenching of US hand tool competitors, while global customers consider its tools to be a good sourcing option. “[Global customers] seek to differentiate and are looking for brands they can’t currently find in their own marketplaces.”

The company has made “significant” investments to upgrade manufacturing automation and technology, although the principals aren’t sharing details.

But they are keen to tout the company’s focus on customer service, something they claim some manufacturers lose sight of, which eventually has an unpleasant impact on the bottom line.

“We have nine sales representatives on the road. They visit distributors and end-users across the country,” says Dominguez. “Some of our distributor partners have relationships with Gray Tools that date back 50 years.”

They have to be quality distributors, being on the front line as Gray Tools’ points of contact with customers.

Good pre- and post-purchase support is as important as having product in stock.

Nuttall believes having a committed value proposition that’s based on service is one of the reasons the company has solidified customer loyalty over the years. “We have generational end-users of Gray Tools products.

Someone’s father or grandfather had the same tool. Lots of mechanics have used the tools all their lives.”

Nuttall and Dominguez intend to extend that legacy into the company’s second century and to new export markets.

Robert Robertson is a business writer and editor based in Mississauga, Ont. E-mail robertrobertson@rogers.com.

22 plant

21-23-PLNTv1.indd 22

Compatible with the TS 8 system.

be accommodated in a single enclosure.

The company based in Mississauga, Ont. and part of the global operations of Rittal GmbH & Co. KG, describes the SE8’s body as two side panels and a roof made from one piece of sheet steel. The rear panel is screwed on for easy access. Cable entry works on the integrated base frame as it does the TS 8 bayed system. Doors and the base/plinth are fully compatible.

System accessories are also easily incorporated into the SE 8.

Larger-width single enclosures can be used instead of two to three bayed enclosures. Automatic potential equalization of the body with the rear panel and gland plates also reduces costs.

Special contact elements pushed into the surface coating during assembly establish a secure electrical connection and eliminate the need for separate earth straps.

The enclosure comes in heights of 1,600, 1,800 and 2,000 mm, depths of 400, 500 and 600 mm, and widths of 600 to 1,800 mm. www.rittal.ca www.plantmagazine.ca/rsc/ 2

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1/24/12 2012 10:40 AM November/December

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10:40 AM

Product Focus << technology polyCarbonate CheCkS CorroSion Hoffman Type 4X hinged-cover polycarbonate enclosures with stainless steel latches from Pentair Technical Products provide non-metallic protection in harsh environments.

They’re made with a durable, light gray polycarbonate, integrated moulded hinges that secure cover attachment and stainless steel hinge pins for chemical and corrosion resistance.

A drip shield at the top and bottom of the enclosure body protects the gasket area from dust and water ingress when installed in either left or right hand hinge applications.

For harsh environments.

A moulded-in padlocking feature provides wire tie and lockout capabilities that allows operators to open the well-sealed cover easily.

The enclosures are UL 508A listed for industrial control enclosures use and IP66/UL Type 4X rated for use in corrosive environments and demanding applications.

Pentair Technical Products, a Minneapolis-based business unit of Pentair Inc., is a supplier of protection and cooling products for electrical and electronic systems. www.hoffmanonline.com

ONE SOURCE. ONE SYSTEM. ONE SOLUTION. INDUSTRIAL HOSE AND INSTA-LOCK™ COUPLINGS

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CoolS data CentreS, SaVeS energy

Lowers power consumption.

power consumption. The design of the heat exchanger ensures there is an ideal cold air temperature in front of the servers.

Naissus, a Toronto-based designer and manufacturer of high thermal density products and infrastructure systems for data centres, notes the low temperature difference between chilled water and cooling air maximizes free cooling periods to significantly improve performance of the chilled water plant. www.naissusthermal.com

The NTMS30 Rack from Naissus Thermal Management Solutions saves energy as it cools data centre servers.

The liquid cooled, closed loop cabinet places the air to water heat exchanger, fans (on the back door) and servers in one cabinet, creating the shortest possible air path to ensure fans consume the least amount of power.

Air inside the cabinet is separated into cold and warm sections to prevent warm air recirculation. This also minimizes airflow rate and reduces

www.plantmagazine.ca/rsc/ 4

Schroff’s NOVASTAR 19-in. aluminum cabinets accommodate virtually any configuration for rack-mounted electronics and instruments.

Standard models cover two distinct caseloads: Slim Line and Heavy Duty, to support loads between of 200 and 400 kg. The platform is also available in heights from 16U to 47U and comes in a range of sizes.

Assembly is tool-free with a quick-connect fastening system, multiple mounting options and design features for custom configurations.

Industrial applications include laboratory test and analysis equipment, and OEM test and measurement.

Schroff is a global business unit of Pentair Technical Products in Minneapolis, Minn. that makes electronics packaging. www.pentair.com

The GOODYEAR (and Winged Foot Design) trademark is used by Veyance Technologies, Inc. under license from The Goodyear Tire & Rubber Company.

Goodyear Engineered Products are manufactured and sourced exclusively by Veyance Technologies, Inc. or its affiliates. ©2012 Veyance Technologies, Inc. All Rights Reserved.

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Simplify and strengthen structures. Creform unique 42mm pipe is 2-1/2 times stronger than standard 28mm pipe so structures can be built in less time using less material. Build wide-span, heavy-duty, high-capacity structures as simple, open designs using less bracing and joints. And structure possibilities are virtually limitless because 42mm/28mm transition joints give you access to all of Creform’s 700-plus 28mm components and accessories.

Let Creform show you how to hold more using our 42mm pipe and joint system.

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cIeN PumPs

Better valve performance.

ImProve wATer fLow Neptune Chemical Pump Co.’s Series 7000 mechanically actuated metering pumps eliminate the use of contour plates on the liquid side of the diaphragm and improve flow in water and wastewater applications with a straight-through valve and head design.

The North Wales, Pa. pump manufacturer pegs the maximum capacity of the self-priming pumps at up to 300 gph (1,135 L/h), 150 psi.

PZ Series pumps cover various product applications at flow rates from .01 to 20 gph. They operate on a manual control that produces speed ranging from 15 to 300 strokes per minute. A variety of liquid-end materials are available.

Tthe EZE-CLEAN valve cartridges used in Series 500 hydraulically actuated metering pumps can be removed without disturbing the piping. The pumps are manually adjusted from 10% to 100% of capacity via micrometer dial flow or controlled automatically by electric stroke positioners, or by motor speed controls.

Capacity is to 80 gph (302 l/h) simplex and 160 gph (605 l/h) duplex at pressures

09 FLIR Complete Solutions e60 CIEN Feb12:8.125x10.875

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up to 3,000 psi (210 kg/cm). www.psgdover.com www.plantmagazine.ca/rsc/ 6

Lower chemical use.

HANdLes HArsH cHemIcALs Watson-Marlow’s 620 pumps for sodium hypochlorite combine power and control for wastewater applications.

The off-gassing feature prevents

vapour lock while maintaining +/- 0.1% accuracy in hypo metering, which contributes to lower chemical use.

High flow rates at pumphead speeds don’t compromise tube life, which extends performance and delivers up to 50% more flow with a control ratio of million:1.

The pump handles harsh chemicals in water and wastewater treatment, including sodium hypochlorite, ferric chloride, sodium bisulfate, aluminum, fluoride, carbon and lime slurries, polymers, aqueous ammonia, potassium permanganate and caustic slurries.

There are no valves or seals to clog, so it requires minimal maintenance.

Watson-Marlow Pump Group has US operations in Wilmington, Mass. www.wmpg.com. www.plantmagazine.ca/rsc/ 7

Page 1

Uses less electricity.

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eco-frIeNdLy Power for wATerjeTs The 30-hp ECO-JET waterjet from Jet Edge Inc. delivers more eco-friendly pumping. It consumes up to 40% less electricity than a 50-hp pump thanks to its direct-drive design.

The pump produces up to 1 gpm of 55KSI ultra-high pressure water for precision cutting, cleaning and surface preparation. Running on a 0.015-in. waterjet orifice, it powers most manufacturers’ cutting systems and tools.

Jet Edge is a pump manufacturer based in St. Michael, Minn. www.jetedge.com www.plantmagazine.ca/rsc/ 8

mOTION CONTROL

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Zero-max torque limiters protect drive trains, gearboxes and generators from excessive peak loads and minimize the risk of breakdowns.

The company, a supplier of motion control products based in Plymouth, minn., says the torque limiters come with a factory preset torque, maximum bore sizes up to 5-1/2 in. or 140 mm with or without keyway, and they operate in temperature ranges from -40 to +80 degrees C. www.zero-max.com www.plantmagazine.ca/rsc/ 9

24 PLANT

November/December 2012

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New Carr LockTM System Provides Fast Fixturing The new Carr LockTM System from Carr Lane allows accurately locating and clamping at the same time, with just the twist of a hex wrench, for mounting quick-change tooling on a subplate.

The new system consists of a clamp, a liner bushing and a receiver bushing. Carr Lock offers complete interchangeability with all components of the mounting

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Av a i l a b l e from stock, Carr Lock can be ordered alone or in kits combined with mounting plates.

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The new Carr LockTM system consists of a clamp, a liner bushing and a receiver bushing, and can be ordered alone or in kits combined with mounting plates.

Carr Lane’s Complete Line TINY VISETM EDGE CLAMPS

Get strong clamping action in a mini size, with patented Tiny Vise edge clamps from Carr Lane. Ideal for fixturing small parts, the unique clamps grip the side of a workpiece to keep the top clear for machining. Available in a wide range of sizes, in regular, double edge and v jaw versions, for clamping round workpieces.NG. Carr Lane Mfg. Co., www.carrlane.com.

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CIEN VISION OPTICS EASE PART CHANGES Cognex’s In-Sight 7010 vision system completes tasks where standard Inspects hard-to-reach places. vision systems may not be cost effective and vision sensor capabilities are too limited.

The system is self-contained and includes autofocus optics with integrated lighting in a compact IP67-rated industrial housing.

The vision library is simple and focuses on tools most frequently used in straightforward vision applications. A built-in autofocus capability available in five lens options matches working distance and field of view requirements for situations that require regular part changes or hard-to-reach spaces where manual focus adjustment is difficult.

Cognex, based in Natick, Mass., manufactures vision systems and sensors for manufacturing automation applications. www.cognex.com www.plantmagazine.ca/rsc/ 10

CAMERA EASES TRICKY INSPECTIONS

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RIDGID’s micro CA-25 handheld camera makes tricky inspections, such as peeking into cracked heat exchangers or stuffy dryer vents, easier thanks to a 17-mm aluminum camera head and onehanded pistol grip.

The camera is permanently attached to a fixed 3-ft. cable and slides into tight spaces behind walls and ceilings, inside mechanical devices, and in plumbing fixtures. Images are transmitted to the device’s 2.4 in. colour (480 x 234 resolution) LCD display that provides a 180-degree digital rotation.

Four adjustable, ultra-bright LEDs are built into the camera head.

Slides into tight places.

JOBS GROWTH PROSPERITY

The lightweight device (1.3 lb.) comes with a television output and 3-ft. RCA cable for video transmissions to larger displays.

RIDGID is a manufacturer of handheld tools based in Elyria, Ohio. www.ridgid.com www.plantmagazine.ca/rsc/ 11

AIR SYSTEMS

Match air demand.

COMPRESSED AIR THAT SAVES ENERGY Save energy using compressed air with Sullair Corp.’s 230-V VSD S-energy lubricated rotary screw air compressors.

Variable speed drive models 1100e, 1500e, 1800e, 1800, 2200, 3000P, 3700 and 4500 range from 15 to 60 hp, with capacities from 46.4 to 222 cfm and pressures ranging from 100 to 175 psig.

The compressors vary the speed of the drive motor to match rising and falling air demand. When the system operates at less than 100% load, the compressor consumes less electricity.

Sullair is a compressor manufacturer based in Michigan City, Ind. www.sullair.com www.plantmagazine.ca/rsc/ 12

LIGHTING STACKLIGHTS ARE EXPLOSION PROOF Patlite’s AR-070 and AR-078 LED explosion-proof stacklight towers are ideal for Zone 2 (flammable) and Zone 22 (dust) environments. They’re rated to IP65 without alarm/ flashing, and IP54.

The manufacturer of network systems based in Torrance, IP65/IP54 Calif. recommends the tower’s rated. glass fibre-reinforced polyester base, 1.5 m cable and a sealed cable exit for user-adjustable alarms up to 85 db (AR-070) and 90 db (AR-078) in gaseous and dusty environments. They’re wall or

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26 PLANT

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November/December 2012

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Products and Equipment << Technology direct mounted, and can be stacked five high in red, amber, green, blue and clear configurations.

AR-070 models are 40 mm in diameter and have an optional 1/2 in. NPT. AR-078 models are 60 mm in diameter and have an optional 3/4 in. NPT. LED modules are interchangeable to eliminate rewiring. www.patlite.com

meets the UL94 Class V0 flammability requirements.

HARTING Canada is based in St. Laurent, Que. www.harting.ca

simple [F(x)=Ax)] formula.

Sunnen Products is a manufacturer of bore sizing and finishing equipment based in St. Louis, Mo. www.sunnen.com

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JUDGES TOLERANCES, HOLDS DATA

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Leak-free connections.

analytical applications. The company has Canadian support operations in Brockville, Ont. www.vici.com www.plantmagazine.ca/rsc/ 15

Cuts energy by 80%.

FLOOD-LIGHT PRODUCES SUPER WHITE-LIGHT Say “let there be light” and Lind Equipment’s 108W LE990 portable fluorescent flood obliges with energy efficient white illumination.

The light has a rugged plastic housing with rubber gasketing and a strong polycarbonate lens for use in food plants where the use of glass is prohibited. At 8,250 lumens, it produces approximately the same light output as a 500 W quartz halogen, but uses only 20% of the energy.

Lind Equipment is a manufacturer of portable power and light products based in Markham, Ont. www.lindequipment.net

CONNECTORS HANDLE TOUGH CONDITIONS HARTING has broadened its range of Han-Eco connectors with improved housings.

They come in four Han-Eco sizes with one or two cable inlets. M32 cable fittings for sizes 6B and 10B and M40 for sizes 16B and 24B are supplied.

Fibreglassreinforced plastic.

MEASUREMENT

Sunnen Products now includes electronic indicators with 6-digit LCD readouts, 11 mm character height and three large buttons to ease operation of its dial bore gauges.

The gauges check bore sizes from .054 in. (1.37 mm) to 12 in. (300 mm) and bore lengths up to 24 in. (600 mm), and set upper/lower tolerance limits for GO/±NG judgments, which are displayed in full-size characters.

Standard analogue indicatorequipped gauges read out in tenths (0.002 mm), but models with 0.010 mm read outs are also available.

They’re accurate to Checks bore sizes ±0.00012 in. (±0.003 mm) up to 24 in. with 0.00005 in. (0.001 mm) resolution, perform scaling calculations, judge tolerance, hold data and perform general comparison measurements.

Internal calculations are possible using a

SCALE HANDLES TOUGH WEIGHING JOBS The Alliance RoughDeck floor scale from Rice Lake is built to withstand tough industrial and commercial applications such as weighing scrap metal.

It’s constructed with 6-in. steel channel frames welded to tread plate decks for optimum rigidity and minimum deflection under severe loading from forklifts and pallet jacks.

A fully interactive, easy to read indicator is encased in a rugged all stainless steel NAMA 4X/IP66 enclosure, making the unit tough enough for industrial applications.

Alliance Scale Inc., a value-adding distributor of industrial and commercial scales based in Canton, Ma., says accuracy is factory calibrated to 0.01% FS and be configured for imperial or metric measurement.

Indicators provide three-stage digital filtering, drive eight 350 Ohm load cells, and have two communications ports.

Capacities are from 1,000 to 30,000 lb. www.alliancescale.com www.plantmagazine.ca/rsc/ 19

www.plantmagazine.ca/rsc/ 14

CONNECTORS & FITTINGS FITTINGS HANDLE EXTREME PRESSURES VICI Valco’s 360 µm high-pressure fittings directly connect 360 micron OD fused silica, PEEK, stainless, or electroformed nickel tubing without liners.

Their compact size and fine 2-56 threads create a sealed connection at pressures in excess of 20,000 psi.

They come with a PEEK nut that includes a glass-filled ferrule and a stainless nut with a 316 SS ferrule. Both snap into place to make one-piece, but rotate without twisting the tube as the nut is tightened.

VICI Valco, based in Houston, manufactures components and equipment for

The robust but lighter housings are made from fibreglass-reinforced plastic, making them highly resistant to harsh environments.

The manufacturer of connector technologies based in Espelkamp, Germany says the Han-Eco is configurable with a number of Han-Modular modules to carry power, signals or data. An optional protective earth (PE) module holds the ground connector, and all metal parts are fully connected to the ground conductor to prevent accidents.

The housing is useful for machines and systems with Class II protective insulation. When the connector is closed and locked, it provides IP65 protection and

DATA COLLECTION COMBINE SENSOR OUTPUTS IN REAL TIME Boost time alignment of motion and data acquisition functions with Aerotech’s 3U data acquisition Sensor Fusion.

It accepts up to four different SF cards. Data collection is synchronized across all cards and data doesn’t have to be aligned after it’s collected.

5 Mhz collection rates.

Data collection, configuration, and analysis are done using the A3200’s set of software tools, so no additional software is required.

Setup, data recording, and playback are done through .NET, C, LabVIEW, MATLAB, or Aerotech’s AeroBasic programming language. All inputs and outputs are managed graphically through an I/O Manager utility that’s part of the motion composer in the software suite.

Managing data acquisition directly from the same library or interface used to program motion control lessens the time spent managing separate environments. Data is graphed once it’s collected and exported to other data manipulation packages.

Aerotech is a manufacturer of control technologies based in Pittsburgh, Pa. www.aerotech.com

(732)-460-9500

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PLANT 27

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CIEN ENERGY

Powered by 4SIGHT.

CAPTURE HVLS WAREHOUSE FAN SAVINGS Serco’s iFAN system powered by 4SIGHT provides facilities the option of networking their high volume low speed warehouse fans and controlling them from a centralized location for energy and other savings.

The system accommodates up to 30 networked warehouse fans per configuration, and in many cases additional fans can be included depending on the application.

The fans are networked to a 23-in. touch screen computer, complete with custom graphics representing the facility’s exact fan layout. This screen allows administrators to control fans individually, by zone and for the entire facility.

Fans are monitored and controlled by time and temperature settings, or temperature variance. The system also displays a variety of tailored performance metrics for individual fans, a particular zone or the entire facility that can be archived and viewed later for trend analysis.

Serco, based in Carrollton, Tex., is a supplier of specialty hydraulic dock levellers, safety products and programmable control systems. www.sercocompany.com www.plantmagazine.ca/rsc/ 20

SAFETY DETECT CONTAMINANTS WITH TOUCHLESS X-RAY The EZx 465 Touchless X-ray system from Thermo Fisher Scientific Inc. extends safety

protection to lightweight food products.

Heavy lead or no-lead curtains frequently prevent lightweight products such as metalized snack bags from being conveyed through the x-ray chamber, resulting in production line jams and downtime.

The EZx 465 eliminates shielding curtains, while complying with all global safety standards. It conveys the product through the inspection chamber via a series of small slopes and an aperture with reduced height ensures x-ray scatter does not escape from the inlet or outlet areas of the system. The conveyor belt is also slightly tacky to keep products in place during the slight upward and downward slopes.

The system is available with a 400 mm wide belt and handles products 65 mm in height. Maximum belt speed is 100 metres per minute.

No production jams.

Thermo Scientific EZx contaminant detection systems provide the most cost-effective solution for locating foreign objects (metal, glass, stone, plastic, bone, etc.) commonly found in packaged food production environments. The systems are also differentiated by how they enable set-up and testing within minutes using the QuickLearn graphical interface, and an x-ray source and detector that eliminates blind spots in the inspection tunnel.

Thermo Scientific makes inspection equipment in Minneapolis. www.thermoscientific.com/productinspection www.plantmagazine.ca/rsc/ 21

THE RIGHT ENCLOSURE AT THE RIGHT TIME Excelerate gives you three ways to get the broadest range of enclosure solutions on your terms and at the speed you need to make every project a success.

STANDARD ENCLOSURES—Access more than 12,000 standard products immediately available through our extensive distribution network.

>> Plantware PLCs DELIVER EMBEDDED MOTION Rockwell Automation’s Allen-Bradley Micro850 and enhanced Micro830 PLCs for machine builders provide embedded motion capabilities for up to three axes of motion, allowing them to support a wide range of applications.

The Micro850 for OEMs is equipped with the Three axes. same form factor, plug-in support, instruction/ data size and motion capabilities as the 24-pt and 48-pt Micro830 controllers, but with ethernet and expansion I/O. The EtherNet/IP protocol with CIP Symbolic support is used for simplified PanelView Component HMI connectivity. Tags created while configuring the HMI screens easily reference the variable names in the Micro800 program.

With support for up to five plug-ins, OEMs can customize the functionality of the controller with additional I/O, special functions, and serial ports without increasing the size of the controller. If higher-performance analogue I/O is required, the controller supports up to four 2085 expansion modules, including high-density digital and high-accuracy analogue for 132 digital points.

OEMs uses intuitive motion function blocks, including Home, Move Velocity, Move Absolute, and Move Relative to make single-axis moves easy. Where precise positioning is required at high speeds, the Touch Probe function block has special hardware to achieve exact-position registration.

A single programming software called the Connected Components Workbench simplifies the installation, configuration, connectivity and maintenance of machine devices, including Micro800 controllers, Allen-Bradley PowerFlex AC drives and PanelView Component graphic terminals.

Rockwell Automation, based in Milwaukee, is a manufacturer of automation technology. www.ab.com www.plantmagazine.ca/rsc/ 22

UPDATE YOUR FIELDLOGGER Download free FieldLogger firmware (v. 1.20) and configuration software (v. 1.30) from CAS DataLoggers at www.fieldlogger.net or Novus Automation at www.novusautomation.com.

The auxiliary RS485 interface (HMIs) can be configured and used as a generic slave Modbus-RTU interface, and Modbus Configurator functionality has been improved with optimized TCP speeds.

The updates have also created the ‘Accumulation’ function for the virtual channels, which adds the channel value to the amount at each time interval (configurable). A ‘Variation’ function for the virtual channels returns the difference of the channel value at each time interval (also configurable). In case users select a digital channel, the countings will be returned instead.

An alarm option has been added to preset/zero counters and/or accumulators. Other new features include an option to use the value read from a remote channel as “signed” or “unsigned,” and the command-line download via Modbus-TCP now has an option to select the port and time out for the connection.

CAS Dataloggers, a Chesterland, Ohio distributor of dataloggers, said several known issues have been resolved, including one that could corrupt the configuration when read from slow paths such as GPRS or satellite links.

FieldLogger response for the SNMP protocol is greatly improved, since it had some limitations when reading grouped variables (OIDs).

CRC removal from the Modbus-TCP packet when coming from a Modbus-RTU slave (gateway function) caused a few problems in the gateway behaviour when used by SuperView, but has been addressed.

The previous 16-channel limit when selecting the table option for viewing downloaded data has been removed.

FTP download file creation, exporting large numbers of channels, and remote channel functionality have also been improved. www.dataloggerinc.com www.plantmagazine.ca/rsc/ 23

DESIGN YOUR STANDARD—Modify a standard enclosure to satisfy unique project requirements.

ENGINEERED SOLUTIONS—Customize a solution to meet more complex project needs.

To learn more about Excelerate call 800-827-3291 or visit www.hoffmanonline.com/excelerate 28 PLANT

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Versatile data acquisition.

November/December 2012

12-11-29 2:05 PM

Industrial Literature Reviews CIEN dUST COLLECTORS FULL LINE LITERATURE gUIdE This impressive guide outlines dozens of N.R. Murphy dust collectors, installations, capacities, styles and models. A must for any reference library.

N.R. Murphy Limited has been in business over 65 years and has thousands of satisfied customers. “Dust Collectors are all we do; so get it done right the first time.

Just Ask the Experts.” www. nrmurphy.com N.R. Murphy Ltd. www.plantmagazine.ca/rsc/ 123

CANAdIAN dISTRIbUTOR WANTEd FOR IMAdA FORCE ANd TORQUE INSTRUMENTS Products include: mechanical and digital force gauges, manual and motorized test stands, special attachments, digital torque screwdrivers, wrenches, testers and calibrators, hardness testers for rubber and plastic, LED stroboscopes and handheld tachometer. www.imada.com Imada Force and Torque Instruments www.plantmagazine.ca/rsc/ 124

MOST POPULAR VACUUM CUPS Vi-Cas Manufacturing’s new 16-page, full colour brochure details the company’s most popular vacuum cups.

In addition to dimensional information (including lip diameter, height and mounting holes), the new literature shows photos of each cup to guarantee accuracy. Vacuum cups and accessories are used extensively in all types of packaging and labeling operations. www.vi-cas.com Vi-Cas Manufacturing www.plantmagazine.ca/rsc/ 125

POWERFUL STATIC ELIMINATORS EXAIR’s Super Ion Air Knife™ removes static electricity up to 20 feet away from webs, sheet stock and plastic surfaces where dust, tearing, jamming or hazardous shocks are a problem. Other styles include Ion Air Cannon, Ion Air Gun, Ion Air Jet, Ionizing Bars and Ionizing Point. Applications include web cleaning, pre-paint blowoff, bag opening and neutralizing plastic parts. www.exair.com/16/176.htm EXAIR Corporation www.plantmagazine.ca/rsc/126

VARIAbELE SPEEd, QUIET ANd EFFICIENT THE H50 ALGONQUIN Variable Speed Air Compressor by DV Systems is fully engineered from the ground up as a quiet, efficient and reliable package integrating variable speed technology throughout the entire unit. www.dvsystems.ca DV Systems www.plantmagazine.ca/rsc/ 127

ThE dOMESTIC SOURCE FOR TIMINg bELTS ANd PULLEyS

The Works 2013 Acklands Grainger Jan. 16-17, Calgary Special annual trade show for Acklands Grainger customers in Canada.

Visit www.acklandsgrainger.com.

Automate 2013 Association for Advancing Automation Jan. 21-24, Chicago Presented by the Association for Advancing Automation and its trade associations, the Robotic Industries Association, AIA, the global association for vision and imaging, and the Motion Control Association. A showcase of automation technologies. Visit http://automate2013.com.

SMART Prosperity Now CME Feb. 14, Mississauga, Ont. Canadian Manufacturers & Exporters (CME) presents the latest in its SMART Prosperity Now program information sessions. Visit http://www.cme-mec.ca, Upcoming Events.

www.plant.ca

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Hannay Reels provides thousands of standard models, unmatched custom design, and manufacturing capabilities for virtually limitless applications, including pneumatic, hydraulic, and power tools; and machinery, welding and water hoses. www.hannay.com Hannay Reels www.plantmagazine.ca/rsc/ 129

NEW EXPANdEd LINE OF TANK CLEANINg EQUIPMENT Additions to the TankJet® line from Spraying Systems Co. include several high-impact tank cleaners for removal of stubborn residues, motorized units that provide a targeted directional spray and compact nozzles for cleaning small containers. Request Catalogue 15 for complete details on dozens of solutions for tanks up to 100 ft. (30 m) in diameter. www.tankjet.com Spraying Systems Co. www.plantmagazine.ca/rsc/ 130

RAISINg ThE bARS

BRECOflex CO., L.L.C. has new “B216” made-to-order and stock pulleysthat meetmore precise machining standards for superior product quality. Finished precision pulleys made-to-specification and stock pulleys come with pilot bores. Available with normal backlash, reduced backlash “SE” or zero backlash “0” tooth gap design. www.brecoflex.com BRECOflex www.plantmagazine.ca/rsc/ 128

>> Events

hANNAy REELS OFFERS COMPLETE hOSE REEL CATALOgUE

Wireless Solutions’ affordable powerful ‘industrial strength’ cell phone booster systems ‘Raise Your Bars’ from 1 ‘bar’ to FULL ‘bars’. The system is specifically designed for warehouses, factories, logistic/ distribution centres, etc. Cell coverage of this industrial KIT is 60,000 sq. ft. for Bell, Rogers, Telus, Wind, & Mobilicity. www.wireless-solutions.ca Wireless Solutions www.plantmagazine.ca/rsc/ 131

Index of Advertisers Plant Visit: Black & McDonald Ltd. Innovation Insights/CME Feb. 21, Vancouver Learn about: how Black & McDonald in Vancouver designs and manufactures refrigeration systems. Presented by Innovations Insights and Canadian Manufacturers & Exporters (CME). Visit http://www.tvp-ii.org/ en/events.

Lean Transformation Summit 2013 Lean Enterprise Institute March 13-14, Orlando Lean strategies and tactics from different perspectives. Visit http://www.lean.org, then go to Education.

Reliable Plant Conference 2013 Noria Corp.

April 16-18, Columbus, Ohio An annual conference and exhibition for machinery lubrication, oil analysis and reliability professionals presented by Noria Corp. Visit http://www.conference.reliableplant.com/Next.

For more dates visit www.plant.ca, Events, Canadian PLANT Manufacturing Events.

RS#

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132 .................................. AME .............................................................. 30 101 .................................. Brady .............................................................. 5 121 .................................. Breco-Flex ..................................................... 27 109,117 ........................... Carr lane .................................................. 10/25 107 .................................. Cdn Linen ........................................................ 9 113 .................................. Creform ......................................................... 23 105 .................................. Exair ................................................................ 7 120 .................................. Federal Development ...................................... 26 116 .................................. FLIR .............................................................. 24 115 .................................. Goodyear ....................................................... 23 103 .................................. Gorbel ............................................................. 6 119 .................................. Hammond ...................................................... 26 133 .................................. IPEX ............................................................. IBC 112 .................................. ITM ............................................................... 23 108 .................................. Kunst............................................................. 10 104 .................................. Lapp................................................................ 6 111 .................................. LPS ............................................................... 22 102 .................................. MasterBond ..................................................... 5 100 .................................. MHIA ............................................................ IFC 110 .................................. OPA ............................................................... 11 122 .................................. Pentair .......................................................... 28 134-136 ........................... Spraying Systems .........................................OBC 118 .................................. Vac-U-max ..................................................... 26 114 .................................. Vi-Cas ........................................................... 23

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ad indus

Departments

>> Postscript

Be prepared for emerging markets

BY JOCK FINLAYSON

A

also classified as emerging economies, along with Turkey and the Middle East (except Israel).

Emerging markets currently account for 45% of world consumption – a proportion that continues to grow – and they have driven the lion’s share of global economic growth for the past decade. By 2030, more than 60% of total worldwide spending will occur in these countries.

ametoronto.org

t a time of slowing global growth and considerable uncertainty about the economy, it’s easy to lose sight of longer-term trends that are re-defining world markets. The most far-reaching trend is the rise of emerging economies.

They include all of Africa and Latin America, and Asia apart from Japan, Singapore, South Korea, Australia and New Zealand. Most of the states that comprised the former Soviet Union are

Emerging markets currently account for 45% of world “consumption – a proportion that continues to edge higher…

”

China, India and some other economies have lost momentum in this year, but over the medium-term they will continue to outpace the advanced economies in top-line growth. Most western countries are saddled with excessive private and public sector debt after the 20-year credit binge preceding 2008-09’s financial crisis. As the US, Japan and much of Europe address their debts, the de-leveraging process, coupled with

government fiscal austerity, will weigh on their future economic growth rates.

In contrast, most emerging economies are less reliant on debt to sustain private consumption and pay for public services.

Many rich economies are also grappling with aging populations and slower expansion of their workforces. Since labour input is a principal ingredient in GDP growth, this too, promises to dampen economic dynamism and limit gains in living standards throughout much of the West. Although some emerging economies are also aging, the process is less advanced in the developing world, and most have more attractive demographic profiles than the West. The spectre of increasingly unaffordable “welfare states” is a phenomenon known mainly in mature industrial countries; it’s not yet an issue in the emerging world, with the exception of Russia, although as they grow richer, more developing economies will boost spending on social programs.

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Another important trend spurring growth is urbanization. A recent study from the McKinsey Global Institute observes that the world is witnessing a dramatic transformation, “as the populations of cities in emerging markets expand and see their incomes rise as never before, producing massive geopolitical shifts and a wave of new consumers whose spending power will change the way the world shops and invests.”

According to McKinsey’s number crunchers, 600 urban centres generate three fifths of global output. In the future, many more of these big cities will come from emerging markets. By 2025, 99 new cities will join the top 600, all from emerging markets, while a like number of developed world cities will drop off the list. McKinsey estimates that urbanization in China is happening at 100 times the scale and 10 times Britain’s pace, the first western nation to do so.

The net result is developing countries moving up in overall economic size and market clout. Citibank lists the world’s 10 largest economies. In 2010 four of the top 10 economies were from the emerging world; by 2030 six of the top 10 – and four of the leading six – will be emerging economies, with China overtaking the US to occupy first place.

The relative and absolute rise of emerging markets is the defining characteristic of our age. We need to pay close attention to the shifting patterns of global economic influence to ensure Canada is positioned to benefit from this historic development.

Jock Finlayson is executive vice-president of the Business Council of British Columbia. This column is distributed

by Troy Media in Calgary. Visit www. troymedia.com.

With many thanks to our Patron/Cornerstone Sponsors and Collaborating Partners

Comments? E-mail jterrett@plant.ca. www.plantmagazine.ca/rsc/ 132

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30 PLANT

November/December 2012

12-11-26 12:04 PM

ad industrial tabloid_Layout 1 23/07/2012 3:49 PM Page 1

Why swim with all the other fish?

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AutomAtic Nozzles Provide uNmAtched PrecisioN Choose from the industry’s largest selection of air- and electrically-actuated air atomizing nozzles with features like variable sprays, clean-out/shut-off needles, cycle speeds from 180 to 10,000 cycles per minute and more. spray.com/automatics

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AutoJet model 1550 modulAr sPrAy system oPtimizes Nozzle PerformANce, iNcreAses efficieNcy This self-contained system can automate manual spray operations in minutes. It offers complete control of nozzles and eliminates drips, poor coverage and overspray. spray.com/1550

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more sPrAy coNtrol oPtioNs to imProve QuAlity ANd miNimize WAste When more than basic spray control is needed, we have many other options. Choose from controllers that activate electrically-actuated nozzles and maximize cycle speeds, monitor pre-set variables and more. For even more advanced control, choose the AutoJet Model 2250 Modular Spray System which monitors and automatically adjusts spray variables when operating conditions change. spray.com/spraycontrol

A flooring manufacturer spraying pigment on boards was halting production once an hour due to plugged nozzles. When nozzles clogged, spray performance deteriorated and boards had to be scrapped.

An AutoJet® Modular Spray System and an automatic spray nozzle solved the problem.

The spray controller triggers the nozzle to spray when the conveyor is in motion and an object sensor detects a floor board. The automatic spray nozzle is equipped with a clean-out needle to prevent plugging.

The results: • Downtime reduced by 87% • Scrap reduced by 50% • Constant monitoring of the system has been eliminated – workers have been reassigned to other tasks • Total savings per year: $36,000 Learn more about this application and dozens more at spray.com/results

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