Canadian Plant

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Volume 70, No. 04 July/August 2011

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BLUE BOX BLOCKS

Atlas Block adds a recycled glass product to its production mix

Laura Vaughan, vice-president of Atlas Block, with a handful of Poraver. The fine-pored granulate is made from postconsumer recycled glass and used in the production of concrete mix.

PM 40069240

PHOTO: RODNEY DAW

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HIGHLIGHTS Remote face time with video collaboration How to support R&D with SR&ED Siemens goes solar in Burlington Grease: Handle with care Success in 8 easy lessons 11-08-04 3:41 PM

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11-08-04 12:29 PM

Editorial

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Clean energy fight gets dirty

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n Ontario, the Dalton McGuinty government’s cherished green energy plan is under attack as an election looms. Based on the premise that the province will attract investment to bolster its beleaguered manufacturing sector while addressing climate change concerns, the strategy revolves around a $7-billion deal with the Samsung Group. The Korean industrial conglomerate is guaranteed 10% of the electricity grid’s capacity for building four plants and helping to create thousands of jobs.

Oh, and wind and solar power generators get premium rates for 20 years.

Trouble is, the details of the Samsung deal, until recently, were under wraps. The promised jobs have been slow in coming and most of them appear to be of a temporary nature.

McGuinty and company also appear to be inept negotiators. Now that the veil has been lifted on this cosy arrangement, we learn the original agreement involved a government incentive worth $427 million. That’s close to half a billion dollars. So 10% of the grid capacity at preferential rates for 20 years isn’t enough of an incentive? Of course, they have since trimmed that down to a maximum of $110 million and Samsung is being encouraged to speed up development of its manufacturing plants.

Again, they need this incentive, why?

Tim Hudak, leader of the opposition and the Progressive Conservative party, wants to scrap the deal (that was not subject to a competitive bidding process), and the feedin tariff (FIT) program. Current prices for electricity range from 5.9 cents per kilowatthour to 10.7 cents at peak times. FIT prices range from 13.5 cents for wind power to as high as 80.2 cents for solar power. Renewable energy gets priority, so according to the deal, more cheaply produced surplus electricity will end up being exported elsewhere, subsidized by taxpayers.

Hudak is counting on taxpayers being all the more outraged that in addition to the stranded Ontario Hydro debt charge on their utilities bills, households and industrial users can look forward to even higher energy costs. The Liberals have advised stakeholders that green energy programs will be responsible for more than half of the expected 46% increase in electricity rates over the next five years.

The plan is supposed to create about 16,000 green energy jobs, which is a fanciful figure at best, since many of them will be tied to the construction of the various projects.

So far, only 600 full-time spots have been created and the four Samsung plants will amount to just 900 positions with another 500 related jobs.

Yet for all its considerable faults, the clean energy plan is of noble intent. It addresses climate change concerns, has the potential to boost manufacturing in the province and it is one step in the rebuilding of an electricity infrastructure that must meet the province’s growing needs. That’s going to mean higher energy bills for ratepayers, with or without clean energy.

Hudak’s promise to scrap the plan may get traction with voters, but he is naïve to think he can simply walk away, especially with Samsung claiming it has already invested $100 million in the province. His election rhetoric is creating uncertainty in Ontario’s manufacturing sector. One solar manufacturer has already powered down and there will be others among the major players who will postpone investments until an election winner is declared. He is also damaging the province’s credibility and reputation as a reliable place for international investors to spend their money. That’s the last thing Ontario’s manufacturers need, Mr. Hudak.

Indeed, if he is successful on Oct. 6, Hudak would be well advised to focus on improving the plan that is in place rather than creating a fiasco that will do little to solve Ontario’s costly energy issues.

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

Vol. 70, No. 04, July/August, 2011 Publisher: Tim Dimopoulos 416-510-5100 TDimopoulos@canadianmanufacturing.com Group Editorial Director: Lisa Wichmann 416-510-5101 LWichmann@canadianmanufacturing.com Editor: Joe Terrett 416-442-5600 ext. 3219 JTerrett@plant.ca Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 KSmith@plant.ca Junior Web Producer: Jessica Mirabelli 416-442-5600 ext. 3227 JMirabelli@canadianmanufacturing.com District Sales Managers: Amanda Bottomley 416-859-4527 ABottomley@canadianmanufacturing.com

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Catherine Martineau (Quebec) 416-510-6833 CMartineau@mmdonline.com 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 Market Production: Barb Vowles 416-442-5600 ext. 3222 vowlesb@bizinfogroup.ca Circulation Manager: Diane Rakoff 416-510-5216 DRakoff@bizinfogroup.ca Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton Canadian PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd.

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19

Features

>> SUSTAINABILITY

9 ALTERNATE MATERIALS Atlas Blocks adds a patented recycled glass mixture to its concrete products to build a sustainable future.

10 CLEAN TECH TurboSonic lands a $3.5-million deal; Two German projects for Wind Works; Day4 goes Dutch.

>> TRENDS

15 AUTOMOTIVE Profits are up in the auto industry despite global disruptions and a high-flying loonie.

ENERGY Energy executives are confident and primed to invest.

>> OPERATIONS

11 MAINTENANCE Maximize the effectiveness of your thixotropic lubricants.

ENERGY SAVINGS A chiller project saves Soniplastics $100,000.

12 MATERIALS HANDLING More walkie-stacker control; Stationary carts go mobile; RMT Robotics streamlines palletizing.

THINK LEAN Communicate effectively by being a visual manager.

13 SHOW TIME CMTS features what’s hot in machinery and equipment.

14 AUTOMATION Siemens Canada kicks off production of its solar SINVERT inverters in Burlington, Ont.

>> MANAGEMENT

16 LEADERSHIP Bad bosses: four categories of managers that under whelm employees.

MARKETING Take the longer view for sales.

17 STRATEGY Eight lessons that will bring you post-downturn success.

>> INNOVATION

19 INCENTIVES How the SR&ED program will support your R&D efforts.

WEIGHT REDUCTION Researchers are using process models to further lighten aluminium engine blocks.

>> TECHNOLOGY

20 PLANT INTELLIGENCE Librestream’s OnSight tackles complex manufacturing problems remotely.

ROBOTICS Robot orders jump thanks to the auto industry.

Departments

4 Industry View 7 PLANT Pulse 8 Labour Relations

15 Events 21 Product Showcase 22 Postscript

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 1-866-236-0608 (English) or 1-866-236-2125 (French).

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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 Canadian PLANT or BIG Magazines LP. Contents copyright© 2011 BIG Magazines LP, may not be reprinted without permission.

Canadian PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. Canadian 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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Canadian PLANT 3

11-08-04 3:50 PM

Departments

>> Industry View

>> Bulletins Allen Vanguard has landed a $7.5-million contract with the Canadian military to build 94 complete Med-Eng bomb suits for the Canadian Forces at its Pembroke, Ont. plant. The protective equipment manufacturer says the five-year contract will create 50 jobs in the area.

Hyduke Energy Services Inc. in Nisku, Alta. scored a $16.3-million contract to provide a US drilling contractor with a turnkey 1500HP AC electric drilling rig package. The company manufactures, repairs and sells oilfield equipment and supplies.

Cantronic Systems Inc., a Vancouver manufacturer of security technology, has won a $4.5 million contract to provide video security and protection systems in China’s Jiangsu province. The two-year project will begin in September.

Minera México, S.A. de C.V. will be applying wastewater recycling and chemical recovery technology from Vancouverbased BioteQ Environmental Technologies Inc. at its mining operations. BioteQ is providing process design and commissioning services as well as plant equipment on a process-fee basis, in return for a license to use BioteQ’s technology at several treatment plants. The technology recovers dissolved metals and removes sulphate from water. Minera México will handle the construction of the treatment plants.

ONTARIO SOLAR PANELS ENERGIZE NEWMARKET

NEW NA PIZZA HUB FOR LONDON

NEWMARKET, Ont.: The Town of Newmarket, Ont. and SunEdison are teaming up to deploy four municipal rooftop solar photovoltaic (PV) projects.

Four municipal facility rooftops will be leased to SunEdison, a global solar energy services provider and subsidiary of MEMC Electronic Materials Inc. SunEdison is installing the systems that will generate more Newmarket and SunEdison partner on rooftop solar panels to generate power and than 23 million kilowatt-hours revenue going to the Ontario municipality.

PHOTO: NEWMARKET of energy over 20 years. That’s enough power to light up 2,199 average homes for one year, while potentially offsetting 4.8 million kilograms (more than 1,000 cars) of carbon dioxide.

The 1.17-megawatt project will be financed, deployed, monitored and maintained by SunEdison while Newmarket will earn revenue from the leased rooftops and energy sold to the Ontario Power Authority under the terms of Ontario’s FIT program (FIT).

SunEdison’s affiliate, MEMC Singapore, partnered with Flextronics, an electronic manufacturing services provider, to make the panels.

The company said solar PV panels used for the project along with other SunEdison deployments in Ontario will generate approximately 400 green jobs.

LONDON, Ont.: A food manufacturer is investing $50 million in a new production plant that will make London, Ont. the North American hub of its pizza operations.

Dr. Oetker Canada, a subsidiary of the German Oetker Group, a manufacturer of frozen pizzas, desserts and dry baking mixes, said the plant will bring 125 jobs to London and add another 300 to the area’s agricultural and food processing sectors.

London got a little help landing the plant from $7 million in funding provided by the Ontario government’s Rural Economic Development Program.

The new facility will be churning out 50 million frozen pizzas using more than 24 million pounds of ingredients from Ontario farmers and food processors.

CANOLA PLANT HITS 1M TONNES/YEAR WINNIPEG: After one year of operation, Richardson Oilseed Ltd.’s canola processing plant in Yorkton, Sask., combined with the output of the company’s Lethbridge, Alta. plant, has processed one million tonnes of canola.

Ten years ago, the company was processing 360,000 tonnes annually.

The $170-million, state-of-theart Yorkton plant can process up to 2,400 tonnes of seed to produce 1,000 tonnes of oil daily.

Earlier this year, Richardson announced a $15-million investment to enhance its packaging capabilities at the Lethbridge plant.

CASCADES INVESTS $83.6M IN NY MILL KINGSEY FALLS, Que.: Cascades Inc.’s Norampac division is building a $430-million containerboard mill in New York State.

Greenpac Mill LLC, a corporation created with the Caisse de dépôt et placement du Québec, Jamestown Container and one other industry partner, will construct the state-of-the-art mill on property located adjacent to an existing Norampac facility in Niagara Falls, NY. Cascades, a manufacturer of green packaging and tissue paper products based in Kingsey Falls, Que., will have a US$83.6-million (59.7%) equity stake in Greenpac, the Caisse a $28.3 million (20.2%) share, and Jamestown Container with an unidentified industry partner a $28.1 million (20.1%) share. The rest of the funding will come from $228.9 million in debt financing.

Cascades said Greenpac will manufacture a lightweight linerboard made with 100% recycled fibres on a single machine supplied by the Metso Group, one of the largest of its kind in North America with a 8.33-metre width.

Annual production capacity will be 540,000 tons.

Voith is providing the stock preparation equipment and anaerobic effluent treatment plant, while Siemens will provide the power and control technology.

Fibre supply will come from Cascades.

Construction of the mill will create 108 new jobs in NY.

$545M IN UPGRADES AT TOYOTA'S PLANTS CAMBRIDGE, Ont.: Toyota Canada is investing $545 million in upgrades at its assembly plants in Cambridge and Woodstock, Ont. Repayable contributions of $70.8 million each will come from the federal and Ontario governments.

Some of the money will be used to reduce emissions by converting Toyota’s base-coat paints at its Cambridge North plant from a solvent- to waterbased system.

Other upgrades include new machinery and equipment, employee training and lean projects.

TEMBEC INVESTS $6M IN SAWMILL MONTREAL: Tembec is investing $6-million, with $3.6 million coming from the province of Quebec, in its Béarn sawmill to reduce energy costs.

The mill, located in Quebec’s Abitibi-Témiscamingue region, will replace two existing 6,000-kilowatt boilers with a single 7,000-kilowatt unit that will provide adequate heating and energy to operate two kilns.

The Montreal company said eliminating 2.8 million litres of fuel used each year for heat will reduce the mill’s greenhouse gas emissions by 88%.

MELOCHE RAISES $6M TO MODERNIZE MONTREAL: The Meloche Group will be modernizing its aerospace metal fabrication operations and adding 60 new jobs with $6 million raised through the family owners and investment groups.

The Fonds de solidarité FTQ investment group is investing $3 million in the Salaberry-de-Valleyfield, Que.-based fabricator of metal parts for the aerospace industry to support its growth plans.

The other $3 million came from Fondaction CSN, the Fonds Aerofund II (managed by ACE Management) and the Meloche family, each contributing $1 million.

The company, which currently has 90 employees, said it will use the money to modernize equipment and increase production capacity at its Salaberry-deValleyfield and Bromont plants.

4 Canadian PLANT

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July/August 2011

11-08-08 2:08 PM

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Reliable and mainten

These coolers are prone to failure in dirty, industrial environments when dust and dirt clogs the filter.

• It takes almost a day to install • Vibration from machinery causes refrigerant leaks and component failures • Compressor life expectancy is typically 2.5 years of continuous operation • It requires a floor drain for the condensation • Average cost to replace a bad compressor is $750

These have serious limitations.

On hot summer days when the temperatures of the room and inside of the enclosure are about equal, there’s not enough difference for effective heat exchange.

• They fail when dust and dirt clogs the filter • The cooling capacity is limited due to ambient conditions

The “plastic box cooler” from a competitor uses an inaccurate mechanical thermostat that’s designed for liquids. This thermostat has a poor ability to react quickly to changes in air temperature. It costs up to

85% more to operate than EXAIR’s ETC Cabinet Cooler® System with the same SCFM rating and Btu/hr. output.

• Electronics can overheat before it turns on • It runs far longer than necessary before shutting off • Increased cycle time wastes compressed air

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11-08-04 12:28 PM

Departments

>> Industry View

Renewable resin passes production trial VANCOUVER: Lignol Energy Corp. and HA International LLC, a global producer of foundry resins, have successfully completed production trials of a lignin-based formula that eliminates the use of petrochemicals.

HA International and Vancouver-based Lignol, a developer of biofuels and renewable chemicals, used a chemical formulation made from biomass containing Lignol’s High Performance Lignin (HP-L) for the production of a foundry resin used to cure sand into a mould that creates a shape from molten metal.

Lignol’s modified, solventbased pre-treatment technology converts cellulose from biomass to ethanol, which produces the high-purity lignins.

The two companies report trials were conducted in the production of metal castings for ferrous and non-ferrous impellors used in a variety of pumping applications. They said the trial results met or exceeded the unidentified customer’s performance requirements and reduced smoke and odour during the pouring of the molten metal.

The companies are now negotiating a supply agreement to continue shipping the new resin formulation to HA International’s customer. The foundry resin producer based in Westmont, Ill., will also look at incorporating HP-L in its other formulations.

NAFTA beef filed over FIT

Experiencing some industrial-strength air conditioning in a climatic wind tunnel at UOIT are (L-R): John Milloy, Ontario minister of training, colleges and universities; Jim Flaherty, federal minister of finance; Kevin Williams, president and managing director, GM Canada; and Sandra Pupatello, Ontario minister of economic development and trade.

PHOTO: DURHAM COLLEGE

$99M auto R&D centre opens OSHAWA, Ont.: The General Motors of Canada Automotive Centre of Excellence (ACE) is now officially open for business.

The $99-million state-of-the-art test and R&D and training facility owned and operated by the University of Ontario Institute of Technology (UOIT) in Oshawa, Ont. kicked off its first day of operation June 13 simulating frigid January temperatures within its climatic wind tunnel.

Described by the university as one of the largest and “the first of its kind in the world,” the wind tunnel is built to blow up to 240 kilometres per hour and under temperatures ranging between -40 and 60 degrees C with humidity ranges from 5% to 95%.

Indeed, the five-storey, 16,300 square-metre facility has a full range of testing facilities that allow for climatic, durability and lifecycle testing, including a solar array that replicates the effects of sunlight and hydrogen capability for fuel cell development.

And lab space is available for rent to manufacturers, start-up companies and other researchers.

At full capacity the centre will employ 30 people.

NEB announces energy action plan CALGARY: The National Energy Board (NEB) is launching a plan to make working in the oil and natural gas sector safer,

Travel with PLANT and win $50 Enter your most interesting Off-Site photo

Joanne Ford, marketing assistant at NTN Bearing Corp. in Mississauga, Ont., catches some quality time with PLANT while vacationing in Malta, overlooking the beautiful Mediterranean Sea. When you go on a business trip or vacation, be sure to take a copy of PLANT with you. If you have a photo taken while reading your favourite manufacturing publication in a remote, interesting or exotic location and we use it, you’ll get $50. PLANT has traveled all over the world, visiting such exotic locales as China’s Great Wall, and Rome’s coliseum, it has been underwater and was taken on safari. Get snapping and become a PLANT celebrity! But be sure to use one of the current issues. This month will be the last time we use an Off-Site photo featuring an old-style cover.

Send photos with name, title, company, address and phone number to Off-Site, Canadian PLANT, Business Information Group, 80 Valleybrook Dr., Toronto, Ont., M3B 2S9. Sorry, we can’t return them. Digital photos should be 5x7 inches and 300 dpi. Send them to JTerrett@plant.ca.

6 Canadian PLANT

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and to hold companies more accountable for how they manage their operations, particularly when it comes to protecting the environment.

The independent federal energy sector regulator said its Action Plan on Safety and Environmental Protection is focusing on worker safety, integrity of installations, damage prevention, and emergency preparedness and response.

One of the NEB’s goals is to take more explicit actions on safety and environmental protection by improving performance measures. It will also make clearer management system requirements under the Onshore Pipeline Regulation, with the expectation management will take “a systematic approach” to manage and reduce risks.

The board will also clarify and formalize its approach to reports of unauthorized activities on rights-of-way and in safety zones, and improve public accessibility to information about NEB programs as well as the performance of regulated companies.

As part of the plan, the NEB is holding a pipeline and facility safety forum in September 2012 to collaborate with other regulators and industry participants to develop solutions.

DALLAS: Mesa Power Group LLC is taking legal action against the Canadian government for what it claims to be violations of the North American Free Trade Agreement (NAFTA) as it pursued 565 megawatts of wind energy projects in western Ontario.

The Dallas company, a developer of renewable energy projects in North America, has initiated the first step in a legal claim over Ontario’s Green Energy Act and Feed-In Tariff (FIT) program, citing “unanticipated and last-minute rule changes” to the Ontario Power Authority (OPA) process that allowed wind projects to move from one region to another and interconnect with long, high voltage transmission lines.

It also takes issue with the $7 billion Samsung deal that allows the South Korean industrial giant to build 2,500 megawatts of renewable energy generation.

Samsung gets about 20% of the transmission capacity in phase 1 of its agreement, and priority access to another 2,000 megawatts of transmission in subsequent phases of its contract.

“This clear favouritism disadvantaged Mesa, as well as other wind developers and clearly violates the spirit, goals and objectives of the North American Free Trade Agreement,” said Cole Robertson, a company executive.

Mesa Power said in its claim the Ontario government directed OPA to change the rules for awarding power purchase agreements under the FIT Program, set Canadian and Ontario buy local requirements and provided more favourable treatment to a non-NAFTA party “in like circumstances.”

Robertson said Mesa Power’s first two projects have completed their environmental studies, have a favourable position on the existing transmission infrastructure and can be in operation by the end of next year.

He said there’s also a firm agreement to purchase wind turbines from a leading manufacturer.

Mesa Power will file a formal NAFTA Notice of Arbitration after Oct. 3 that will begin an international arbitration process to review the Canadian government’s actions.

>> Careers Quantum Solar Power Corp. has added Steven Pleging (based in The Netherlands), a solar energy entrepreneur and owner of TeamSolar BV, to its board as chairman. Andras Pattantyus-Abraham, chief technology officer at Quantum, has also joined the board.

Vancouver-based Quantum is developing “Next Generation Device” photovoltaic technology.

Robert Okrzesik joins Lakeside Steel Inc., a Welland, Ont.-based manufacturer of oil country tubular goods, as vice-president, commercial. Based at the company’s US office in Houston, he’ll lead and direct all of Lakeside’s North American sales and marketing initiatives. Previously, he was vice-president, North America, OCTG and line pipe with Evraz Inc. Intelligrated, a Cincinnati-based automated material handling systems supplier, has appointed Chuck Harris vice-president of Midwest operations, distribution and fulfillment, which includes Ontario and Quebec.

Greg Leavens has joined NXT Energy Solutions Inc. as the vicepresident of finance and CFO. The Calgary-based company provides airborne detection services for the oil and gas industry. Leavens was CFO of Result Energy from 2003 to 2009, and then spent two years consulting.

The Ledcor Group in Vancouver has appointed the former president and CEO of TimberWest Forest Corp. to manage the company’s growing transportation and resource operations. Paul McElligott will be responsible for managing and growing the company’s tug boat, barge and aviation businesses, and wood fibre alternative energy initiatives.

Forestry company AbitibiBowater Inc. has appointed Jo-Ann Longworth CFO. She succeeds William Harvey, senior vice-president and CFO. He will serve as an advisor until March 2012. Longworth is currently a special advisor to president and CEO Richard Garneau.

Gurpreet Singh Sawhney has been appointed president of Strategic Oil & Gas Ltd. in Calgary. He was previously vice-president of strategic development.

July/August 2011

11-08-08 2:09 PM

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SOURCE: STATISTICS CANADA

J

J

2009

2010

M 2011

Manufacturing sales declined $360 million (0.8%) to $46 billion in May. The decline, reflecting a 2.4% drop on the non-durable goods side, was concentrated in the food, petroleum and coal product and chemical industries. Durable goods rose 0.8%. Statistics Canada reports lower sales in 11 of 21 industries, representing 71.9% of manufacturing.

FEWER EI BENEFICIARIES

number 850,000 800,000 750,000 700,000

SOURCE: STATISTICS CANADA

W

hile the debt ceiling theatrics played out in the US throughout July, Canadian manufacturing was having a pretty good month.

The RBC Canadian Manufacturing Purchasing Managers Index reports the pace of new order growth quickened from June, registering 53.1, up from 52.8. This represents 10 consecutive months of growth, according to the monthly survey of 400 industrial firms, conducted in association with financial information company Markit and the Purchasing Management Association of Canada. (The report is available at www.rbc.com/ newsroom/pmi.)

“The uptick in the New Orders Index that indicated a solid rate of expansion, coupled with improved business conditions across the country, bode well for Canada’s manufacturing sector overall,” said Paul Ferley, RBC’s assistant chief economist. “However, modest gains in production and the soaring loonie may offset some of the momentum in the sector as we move into the second half of the year.”

Outstanding work decreased during the month, but companies reported backlogs were depleted only slightly. Inputs rose and inventories accumulated for the third consecutive month, but about 24% of panellists reported longer delivery times.

Almost 18% of the firms hired additional staff and generally linked employment growth to larger new order volumes, but the rate of job creation was the slowest since last November.

Respondents cited significant price increases, particularly transportation, steel and plastics; however, price inflation eased to a seven-month low. Costs were

J 2008

650,000 600,000 550,000 500,000 450,000 400,000

J

J 2008

J

J

2009

2010

M 2011

The number of people collecting regular employment insurance benefits decreased by 18,100 (3.0%) to 577,300 in May. This represents the eighth consecutive monthly decline. The largest percentage declines were in Alberta, Ontario, Quebec and Manitoba. PEI was the only province with an increase (3.5%) in beneficiaries.

LEADING INDICATORS ADVANCE smoothed percentage change 1.6 1.2 0.8

SOURCE: STATISTICS CANADA

Business confidence rises in July

passed along to customers by raising factory gate prices.

The Canadian Federation of Independent Business (CFIB) also notes small and mid-sized businesses are feeling good about their prospects. And its Business Barometer suggests they aren’t too concerned about the debt issues plaguing Europe and the US. Their confidence rebounded in July, rising two points to 68.3 – about the same level it had been holding earlier in the year. Manufacturing registered 68.9 on the index, up from 66.9 in June “For the most part, it appears Canadian business owners are not seeing much turbulence from the sovereign debt uncertainties,” remarked Ted Mallett, vice-president and chief economist for CFIB. “Measures for new orders, inventories and overtime are up, compared to past months, and investment intentions have improved in all categories except vehicles.”

TD Economics noted confidence among Canadian SMEs had been dampened by the supply disruptions caused by the Japanese earthquake and rising energy prices.

“Looking ahead, we expect confidence among Canadian SMEs to hover around current levels affected by a number of limiting factors such the weaker-than-anticipated outlook for the US and world economies, as well as the elevated levels of Canadian household indebtedness,” said Shahrzad Mobasher Fard, a TD economist in an outlook bulletin.

CFIB reports short-term employment plans are positive, with 18% of SMEs saying they’ll add to full-time staff levels in the next three or four months. Only 10% expect to cut back.

“The result is that future pricing plans have come back below the 2% mark, which the Bank of Canada considers to be the fulcrum of its monetary policy levers,” concluded Mallett.

Current dollars 2002 constant dollars

0.4 0.0 -0.4

J J A S O N D J F MAMJ J A S O N D J F MAMJ 2009 2010 2011

The composite index followed up a 0.8% gain in May with a tepid 0.2% increase in June. Four of 10 components were down compared with none the month before. Most of the reversals occurred in manufacturing, and much of the trouble was in the auto sector following the disruption of the global supply chain following Japan’s tsunami disaster.

SLOWDOWN IN VEHICLE SALES thousands of units 165 160 155 150 145 140 135 130 125 120 115 110 105 11 M J J 2008 2009 2010

SOURCE: STATISTICS CANADA

ECONOMIC DE VELOPMENTS AND TRENDS

FLAT MANUFACTURING SALES seasonally adjusted

$ billions 56 54 52 50 48 46 44 42 40 38 36 34 32 30 M

J

M 2011

Motor vehicle and sales declined 6.1% in May to 126,479 units, erasing gains made over the previous four months. North American-built passenger cars accounted for most of the decrease. But Scotia Economics has raised Q3 production to 18% above a year earlier. Preliminary June numbers indicate new motor sales increased by 10%.

www.plant.ca

Canadian PLANT 7

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11-08-08 2:09 PM

Departments

>> Labour Relations

Canada’s collective bargaining is broken

By Ken Lewenza

I

f any further evidence is needed to prove Canada’s federal industrial relations are in desperate need of repair, look no further than the recent labour dispute at Air Canada.

Negotiations took place over four months. Talks were fuelled by aggressive and ambitious company demands for significant cuts. At the same time, Canadian Auto Workers (CAW) members were determined to make long overdue gains after a decade of sacrifice.

legislation is a last resort when major economic “andBack-to-work social disruption is threatened... ” The negotiations were difficult, and made more so by external factors that were well beyond the union’s control.

For starters, Air Canada didn’t shy away from making plans to hire replacement workers (scabs) in the event of a work stoppage. Under the Canada Labour Code – the legislative text that governs federal labour relations – companies are within their rights to do so. Most employers don’t venture down this path. In fact,

hiring scabs is illegal in Quebec and BC. Replacement workers create animosity, often fuelling anger and violence on strike lines. Their employment also casts a chill over bargaining.

In light of this, it’s not surprising that the final hours of the Air Canada contract talks – often the most critical time in any negotiation – were bogged down.

Insincere discussions over outstanding issues prevented the two sides from get-

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ting closer to or reaching a deal, despite having positions that were not far apart.

With a company contingency plan already in place and scab workers scheduled to work, negotiations were destined to fail.

We were bargaining with a company that had no real sense of urgency.

Despite the constant efforts of labour unions and supporters to establish federal legislation that bans the use of replacement workers, the Harper government continues to turn a blind eye. It’s seemingly content to watch workers pitted against very large and well-resourced employers, who have got little to lose, in a senseless game of chicken.

As scabs filled in behind Air Canada customer service desks on the first day of a three-day strike, the company boldly reassured the public that it was “businessas-usual.” Yet, only hours after the strike began, Federal Labour Minister Lisa Raitt signalled the Harper government’s intent to legislate Air Canada employees back to work – despite the fact a final settlement was well within reach. In her words, the strike posed a threat to Canada’s economic recovery – frankly, a bogus claim.

Last resort Back-to-work legislation is a last resort when major economic and social disruption is threatened. In this case, the legislation was an ideologically driven, knee-jerk reaction to a situation under total control.

Workers were rightfully upset. Forcing them back to work and then imposing an arbitrated settlement not only fuels discontent, it undercuts collective bargaining and workplace democracy.

The Air Canada strike may not have happened if replacement workers were banned, and I have little doubt the Harper government’s absurd and heavyhanded back to work legislation will set a dangerous precedent for future interventions in federal negotiations.

Back to work legislation was passed once during each of the previous Harper minority governments (2007 and 2009).

Less than two months into a Harper majority government, we’ve seen it tabled twice in one week (the second was Canada Post) – and for the first time ever, it was imposed on airline workers.

The institution of collective bargaining must be strengthened and policies that create rather than diffuse conflict should be dismantled. But the Conservative government has served notice it won’t hesitate to attack workers: music to the ears of Canada’s corporate classes – those in the Prime Minister’s inner circle who have no interest in fixing what’s wrong with our broken system of labour relations.

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.

Comments? E-mail JTerrett@plant.ca.

8 Canadian PLANT

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July/August 2011

11-08-04 12:24 PM

Alternate Materials << Sustainability

Blue Box to

blocks

Recycled glass adds some green to concrete products

Atlas Block adapts a patented technology to its manufacturing process that produces building blocks for a more sustainable future.

By Noelle Stapinsky

E

ver wonder what happens to all those glass bottles and jars you drop in the blue bin for recycling?

About 80% of the glass containers get made into new glass bottles. So what happens to the other 20% that doesn’t meet container manufacturers’ specifications?

Atlas Block is using discarded glass to make innovative building materials. The family owned company, based in Victoria Harbour, Ont., manufactures concrete products such as blocks, retaining walls, patio slabs and brick veneers for industrial, commercial, institutional and residential markets. And it has come a long way since its humble beginning in 1949 when it operated out of a barn in Toronto’s west end, producing concrete blocks. In 1989, Atlas Block added a second facility in Brockville and, just a few years ago, built a state-of-theart 40,000-square-foot plant in Hillsdale, Ont. Company founder Don Gordon touts customer service as a big plus for the business. “But now one of our advantages is that we manufacture products that contain blue box materials.”

Using a product created from a patented German technology licensed to Poraver North America in Innisfil, Ont., Atlas Block has incorporated post consumer recycled (PCR) glass into all of its products, some containing up to 38%.

When raw glass is mixed with cement, it creates an alkali-silica reaction (ASR) causing the material to deteriorate. For this reason, the technology used to integrate PCR glass into concrete is top secret.

What Gordon would divulge is that Poraver takes recycled glass collected from across Ontario and grinds it into a fine consistency, similar to talcum powder. It then expands the fine granulate and coats it with metakaolin, which is a fine kaolin clay that mitigates the ASR reaction.

To add this new material to Atlas Block production, Gordon carefully reveals that the mix design had to be altered and the machinery adjusted “just a bit.”

The manufacturing process for concrete building materials is not all that complicated.

“We get aggregate from quarries – such as sand and

Poraver North America Inc. Dennert Poraver GmbH, based in Schlusselfeld, Barvaria in Germany, has acquired the assets of Poraver North America, a licensee of Dennert’s expanded glass aggregate technology and is combining the two production operations.

The Canadian Poraver business, a private equity consortium, licensed the Dennert technology in 2005 and commissioned the Innisfil, Ont. plant in 2007, just as the US construction industry dipped into recession. By 2010, Poraver had entered into the insolvency process and was looking for a buyer.

“As the global economy slowly comes out of recession, I am confident that construction product manufacturers will once again focus upon innovation and environmental issues, enabling us to repeat the success that we have had in Europe,” said Hans Veit Dennert, inventor of Poraver and owner of Dennert Poraver GmbH.

www.plant.ca

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Atlas Block vice-president Laura Vaughan holds PCR masonary blocks fresh off the line that incorporate up to 36% post-consumer recycled glass.

PHOTOS: RODNEY DAW

At the beginning of the process, ingredients go into the skip hoist.

limestone – that go into a saddle, then into a mixer and they’re combined with cement, sand and water. It’s then fed into a machine that vibrates and compresses it into a shape, which could be a paver, block or retaining wall,” explains Gordon.

Products are then compressed and put into a curing chamber that’s set at about 40 degrees C for 24 hours before they’re placed on palates for shipping.

But now with the new PCR material, Atlas Block is able to replace the sand and limestone with the glass alternative.

Gordon, accompanied by his daughter, Laura Vaughan, vice-president of the company, started investigating the use of alternate materials about five years ago when she joined the company.

They experimented with a number of products inhouse, such as Styrofoam, and conducted research with McMaster University in Hamilton.

The finger cart sends raw products into the kiln.

“We knew there were issues with glass,” says Gordon.

“But when Poraver opened its facility in Innisfil we saw it as an opportunity to investigate further to see if their glass product would work and it did.”

This year, Atlas Block plans to divert the equivalent of 2.5 million wine bottles using post-consumer glass from recycling and landfill, which is where coloured glass Continued on page 10

Canadian PLANT 9

11-08-08 2:10 PM

Sustainability

>> Alternate Materials

Green concrete

>> Clean Tech

Continued from page 9

$3.6M TurboSonic system for Uniboard

usually ends up because it can’t be reused to create another glass product.

When Vaughan decided to join the family business, it wasn’t an obvious decision at the time. She had gone to university to pursue a degree in music, but later decided she didn’t want to make a career of that, so she got her chartered accountant designation.

After spending a couple years working for an accounting firm and then an airport, she considered taking a job at a family owned, medium-sized manufacturing company in Hamilton.

Vaughan recalls, “I remember having dinner with my dad the night before the interview and he said, ‘You know, if you’re interested in making a move to a family owned medium-sized manufacturing company, I have another one you should think about.’”

“For whatever reason, it was never obvious to me before he pointed it out,” says Vaughan.

She oversees marketing, human resources and financing, as well as gradually taking on Gordon’s various roles. Her husband Mark is the vice-president of operations and Gordon’s time is freed up to focus on customer relations, plus his increased involvement with industry associations (he’s currently the president of the National Concrete and Masonry Association).

Together they’ve worked out an interesting succession plan. “I’ve frozen my shares for all capital appreciation to go to the next generation,” says Gordon. “And to transition myself out of operations, each year we look at jobs that I’m still doing and transfer them mostly to Laura.”

For Vaughan, this is an ideal situation. “I admit I was nervous mixing family with business, but we think a lot alike. And this has given me a chance to come in and make decisions, but have someone with 30 years experience to use as a sounding board and to work as a visionary to make sure we’re growing and moving in the right direction.”

WATERLOO, Ont.: TurboSonic Technologies Inc. will be providing a North Carolina particleboard manufacturer with its Catalytic Gas Treatment (CGT) technology to reduce volatile organic compound (VOC) emissions.

TurboSonic, a Waterloo, Ont.-based provider of clean air technologies, said the $3.6-million deal involves designing, supplying and installing a system for control of formaldehyde and methanol emissions at Uniboard’s particleboard production plant in Moncure, NC. The technology’s destructive capabilities, similar to thermal oxidization without using fossil fuels, eliminates greenhouse gas emissions and more than 90% of the compounds.

This will be the third TurboSonic installation at the Moncure plant.

It's all in the R&D And Gordon says this transition process has been really healthy for the company because it allows him to explore new opportunities.

“Exploring our work with Poraver took a lot of time and research,” says Vaughan. “When we go through a process like that, he now actually has the time to be in the plant and get into applying the mix design. It’s not that the guys on the floor don’t have the knowledge to do it, but they don’t have the birds-eye-view my dad has of what we want to accomplish.”

Most of Atlas Block’s research started within its three facilities. In terms of what they invest annually to R&D, Gordon says, “We don’t really track that. It’s mostly about taking up machine time and rededicating [it to researching new processes].”

The company has now had its concrete products with PCR material on the market for three years. Of course, it always takes awhile for innovative new products to gain acceptance. But what’s most interesting is that although environmentally conscious consumers are usually the early adapters for such new alternatives, Atlas Block’s industrial, commercial and institutional clients are leading their sales due to the incentive of achieving a Leadership in Energy and Environmental Design

Uses for recycled glass • Fibreglass • Countertops and flooring • Landscaping • Filtration • Fractionators • Reflective paint • Bricks • Concrete pavement • Aggregate and road use and parking lot Every tonne of waste glass made into new items saves 315 kg of CO2 from being released into the atmosphere from the manufacture of new glass.

10 Canadian PLANT

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Machine operator Wes Cotter oversees the wrapper at the end of the manufacturing process.

(LEED) certification, an internationally recognized green building program.

Being a green building product isn’t the only advantage to Atlas Block’s hybrid material. Since Poraver’s glass product isn’t really dense, the cement products are much lighter than conventional products and have an improved fire rating.

Today, Atlas Block employs about 120 people, which includes its sales force, manufacturing employees and yard staff for product retailing at all three of its locations.

One of the biggest challenges for this manufacturer, not unlike many across the country, is the volatility of the Canadian dollar. It used to export about 20% to the US, which has dropped to as low as 5% with the economic downturn.

“Transportation costs are a challenge. We sell to a market that has to have some understanding of what the cost could be,” says Gordon. “Right now the majority of our business is in Canada. Although we are seeing a slight increase in the US market, we won’t get back up to that 20% level, but it’s growing.”

With the new facility in Hillsdale outfitted with the latest manufacturing machinery from Tiger International, and now a master of PCR production, Atlas Block is focusing on what other materials (such as Styrofoam) the blue box will provide that can be used in premium, green building products.

Noelle Stapinsky is a Toronto-based business writer and editor, and former features editor of PLANT.

Two German projects for Wind Works OTTAWA: Wind Works Power Corp. has acquired two new wind projects in Germany.

The Ottawa-based renewable energy firm said the 15-megawatt Rock project located near Magdeburg in the eastern part of Germany is a 50:50 co-development partnership with a German developer.

The Raberg project is a 6-megawatt joint venture project located near Frankfurt. The company said construction will start in the fall of 2012.

Total investment for the combined 21 megawatts will be about US$50 million.

Day4 goes Dutch with solar tech VANCOUVER: Day4 Energy Inc. is supplying technology and equipment to a Dutch manufacturer of solar modules that’s upgrading its 25-megawatt production facility in Kerkrade.

Solar Modules Nederland’s products will be manufacturing Day4 DNA solar photovoltaic (PV) products under license.

Vancouver-based Day4, a global provider of solar technology, said the upgrades to the plant are to begin immediately with production starting in mid-July.

No financial details were provided.

The Day4 DNA PV cell does not require soldering and according to Day4, it virtually eliminates PV cell energy losses after module lamination.

Based on work-smart technology, the modules reduce the effects of shading on solar cell performance by incorporating independent operating segments. If one module is shaded, the other eight continue working.

Comments? E-mail JTerrett@plant.ca.

>> Green Manufacturing Benefits of CSR reporting

By Brett Wills

M

any companies are demanding suppliers report progress towards attaining greater sustainability. Meeting these expectations will help retain current customers while attracting new ones. Corporate social responsibility (CSR) reporting is also a great way to get buy-in and support from senior managers who must make public statements and commitments towards sustainability. In the process of developing a CSR report, your company will also take stock of current progress, have a means for showcasing these efforts to stakeholders and develop a structure and plan for moving forward.

Here are some tips for getting started: • Assessment. Ask a few simple questions. When looking at climate change, resource depletion and other sustainability trends, what is the impact on the company, environment, community and people? What risks and opportunities do they present?

• Develop a sustainability vision. What is the future desired state? For example, is neutrality the goal or to be regenerative and have a more positive impact?

• Organize for sustainability. The buck needs to stop somewhere. Develop a governance structure that places account-

ability and responsibility for sustainability at key levels within the organization. All departments play a role, including finance, human resources and operations.

• Establish metrics. Develop sustainability KPIs that will measure progress. Identify critical success factors and metrics. For example, KPIs may include a carbon or water footprint, employee turnover, volunteer hours or philanthropic contributions.

• What’s the current state? Measuring the sustainability KPIs will provide a clearer picture of where your company currently stands in relation to the sustainability vision. Where does the organization excel and where does it fall down?

• Visualize a future state. With a clear picture of the current state, develop goals and targets for each of the KPIs and lay out a plan for achieving them.

Looking for more guidance on CSR reporting? Check out the Global Reporting Initiative (GRI) www.globalreporting.org, the international gold standard for sustainability reporting that provides step-by-step guidance for developing a report.

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

Comments? E-mail JTerrett@plant.ca.

July/August 2011

11-08-08 2:10 PM

Maintenance << Operations

Maximize your

GreAse: A shOrT hisTOry

thixotropy tipS for the BeSt Care and handinG of GreaSe

By Steve GahBauer, ContriButinG editor

T

hixotropy is the ability of a grease to move from a semisolid state when at rest to a relatively fluid state when it is mechanically manipulated or placed under pressure, as it would in a gearbox or bearing application.

This is characteristic of greases, defined as solid or semifluid lubricants consisting of a thickening agent in a liquid lubricant. Additives imparting special properties may be included. A grease typically consists of 75% to 95% base fluid, 2% to 20% thickener and 3% to 25% additives. Base fluid, thickener and additives are interrelated and must be balanced for top performance.

Base fluids can be asphaltic, naphthenic, paraffinic, hydrocracked, synthetic or vegetable. The costs range from low for naphthenic to high for silicone base fluids, and performance characteristics vary.

Grease thickeners may be calcium, lithium, barium or aluminum complexes, benton, clay or silica, and polyurea.

Performance additives include antioxidants, antiwear, extreme pressure or metal deactivators, rust and corrosion inhibitors and tackiness additives. Not all of those are compatible, so pay attention to matching.

Greases provide surface coating for moving parts to prevent metal-to-metal contact so they must be water and corrosion resistant, provide shear and oxidation stability, and exhibit high-temperature stability and lowtemperature mobility.

Handling with care Be sure to store, handle and dispense grease properly.

Mike Deckert, vice-president of FLO Components Ltd., an ISO 9001 certified automatic greasing systems specialist firm and leading supplier of lube solutions in Mississauga, Ont., has this advice: • Never assume that product in a drum is clean. Drums can become contaminated, depending on where and how they are stored. Always sample what’s in a new drum.

• Separation will occur when grease sits too long in a drum. Rotate your inventory.

• Storage temperature is critical. Cool is fine, too warm or very cold is usually detrimental. If stored outside, place a cover over the drum. When in use, replace bungs and covers. Tilt drums where possible and position cover ports horizontal to the tilt. If drums are stored on their sides, position cover ports horizontally.

• Movement of drums from point to point can be dangerous. Use a hand dolly or forklift with drum clamps.

• No smoking signs and fire extinguishers are a must in storage areas. Solvents should be in a separate room.

• If in cold weather the product requires heating, never use a torch. Use a band heater properly located around the drum and never heat above 20 degrees C. • The most common and recommended types of grease fittings and adapters for dispensing are NPT and “Zerk” units. There are also specialty fittings and vents and adapters.

• Grease guns can be manual, air-operated or electric.

www.plant.ca

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A "shot" is not a standard measurement of grease. The number of shots for a particular job will depend on the grease gun.

PHOTO: iSTOCKPHOTO

The critical issue is how to use them properly. How much is a shot? It depends on the type, the loading and the supplier. Going by “eight shots for this coupling and 10 shots for that bearing” is misleading and dangerous.

Much depends on the grease gun. General heavy duty guns have 33 strokes per one ounce of output at a maximum pressure of 7,000 psi. Heavy duty dual pressure guns deliver 18 strokes at low pressure (6,000 psi) and 33 strokes at high pressure (7,000 psi). High pressure models deliver 25 strokes, and volume models deliver nine strokes per one ounce output at 7,000 psi and 3,000 psi, respectively.

• Standardize grease guns and mark them properly. Most

the use of grease as a lubricant dates back to 1400 BC. the earliest greases were lime with vegetable oils or animal fats in the presence of water. the first petroleum-based greases began to surface in the late 1800s, and sodium, lithium and water-resistant aluminum complexes followed in the 20th century. inorganic thickeners made their appearance at about the same time.

grease guns have a three-way load: bulk filler, bulk suction and cartridge. For all of them, cleanliness is godliness.

• Grease gun lubrication should be performed while the machine is running. That assures better replacement throughout a bearing or gearbox and a lower temperature increase normally caused by relubrication.

• The use of air-operated pumps warrants some special considerations. Because of their high output, there is a risk of seal damage. Since these pumps can develop high pressures, only high-pressure hose and accessories should be used. A follower plate is recommended to prevent cavitation.

• Air-operated pump performance greatly depends on selected pump features, air supply, the type of grease used, operating temperature, the length and size of hose, and the number and size of fittings and swivels in the system.

• Drum cover and pump stem should always be properly sealed to prevent injuries, and drum change is a two-man job, unless a pump hoist is used.

• The amount of grease that will completely replenish the lubricant capacity of each point once every eight hours of operation is the volume that provides 0.002 inches of film. However, dirty, hot or corrosive environments require higher volumes.

• The relubrication interval depends on the application and operating environment, as well as on the need to purge to keep out dirt. Other factors that determine lubrication intervals are machine speed, operating temperature and the type of grease used. Harder grease holds better.

Grease quality, proper selection and performance characteristics are important. Understanding, care and diligence will ensure you get maximum benefits from your thixotropic lubricants.

Information for this article was provided at an educational workshop on grease organized by the Hamilton Section of the Society of Tribologists and Lubrication Engineers (STLE). Steve Gahbauer is an engineer and the former engineering editor of PLANT. E-mail gahbauer@rogers.com.

Comments? E-mail JTerrett@plant.ca.

>> energy Savings

ChiLLer PrOjeCT sAves $100,000

U

pgrading and increasing the capacity of Soniplastics inc.’s cooling system – its chiller and water towers – yielded sizable savings and profits, according to robert Laroche, the director of maintenance at the Boucherville, Que. plant.

“What made the business case for the project more appealing was the projected $100,000 in annual electrical savings, and sizable incentives from natural resources Canada and hydro-Québec,” says françois Lambert, the company’s director of finance.

Soniplastics produces polyvinyl chloride (pvC) window frames. the 14,400 square-metre facility operates 24 hours a day almost year-round, consuming about 32,000 gigajoules of electricity and 2,200 gigajoules of natural gas, so the annual energy costs before the retrofit were about $560,000. yves allard, the plant’s director, explains that the previous cooling system could not keep pace with increased production. the two water chillers had capacities of 225 and 125 tonnes, and the 125-tonne chiller could serve only 13 of the 21 plastic extruders. the $488,000 project (completed in June 2009) included the installation of a high-efficiency frictionless magnetic-bearing centrifugal compressor chiller with a capacity of 300 to 325 tonnes (the 225-tonne chiller is now a back-up unit); two 270-tonne water towers with a 15 hp variable-speed drive motor that produces 550 tonnes of cooling capacity in the summer; and two new variablespeed 40-hp pumps that move water between the chiller and the water towers. the cooling system is now automated and equipped with motorized valves using water for cooling from the water towers rather than the chiller, when outside temperatures fall below 15 to 18 degrees C. “this gives us not only free cooling, but also more flexibility, reliability and redundancy in the system,” says allard.

Laroche notes that the new automated system is quieter, more reliable and designed to optimize chiller operations. he adds, “the financial benefits are clear: there is no increase in the facility’s electricity use since the upgrade, despite a 20% increase in production. that equates to about $10,000 in savings per month, more than the anticipated annual savings in electricity for the project.”

Source: Natural Resources Canada case history

Canadian PLANT 11

11-08-04 2:56 PM

operations

>> Materials Handling

More wALkie-sTACkiNg CoNTroL Operators of electric walkie stackers will have more control over their movements with the PWT15 and PWT18 models from Mitsubishi Forklift Trucks.

The Houston manufacturer’s new 3,000-3,500 lb. trucks (pictured) are AC-powered with an electric power steering option for more precise control at any speed. These trucks should be used for applications involving repetitive stacking where travel distances are minimal, such as storage and staging areas, skid, cart or worktables.

Powering up using a key or optional keyless access pad saves battery life while an auto shutdown conserves run time. And an advanced regenerative braking system smoothes out directional changes while reducing

brake pad and component wear.

A special control function allows the operator to pinwheel with the handle in a vertical position while pressing the crawl speed button. And an emergency button stops, then reverses movement if the operator gets caught in close quarters. www.mit-lift.com

MobiLe sTATioNAry CArTs Creform Corp. has added mobility to stationary carts.

The Greer, SC manufacturer of material handling systems and products says the NSL model of its BSTNSI AGV Tugger drives under a stationary cart, extends a tow pin and moves it to a predetermined location. One unit can mobilize an entire fleet of carts or be part of a managed AGV system with traffic control.

The system covers up to 50 courses and 128 commands, each programmed by a PC or onboard touch screen. www.creform.com

sTreAMLiNe dAiry PALLeTiziNg RMT Robotics has developed a case and crate picking system that will help producers of dairy products streamline their operations.

The Grimsby, Ont. manufacturer of automated materials handling systems has reduced the footprint of standard modules that pick in exact customer sequences, and provide complete traceability.

With limitless layout options, the system operates in chill stores to -20 degrees C, and handles a variety of dairy products, including milk, cream, yogurts and cheese.

Using an advanced automated controls system, individual or multiple cases or crates are delivered in exactly the desired pallet-build sequence for automated mixed palletizing at the dock.

The system also provides precise information on the location of all products and isolates SKUs when there’s a problem or recall. www.rmtrobotics.com

>> Think Lean be A VisUAL MANAger

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• 100,000’s of options • Reconfigure accessories without tools

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he foundation of a successful lean enterprise includes “respect for people.” conveying that respect requires simple but effective and visible communication. But what you believe to be effective communication might not be working because the receiver interprets the message much differently than what was intended.

There are three distinct ways to communicate and digest information. Orators read a manual or assembly instructions from cover-to cover before taking action. Visual people like to be shown how to do a task. a touch “receptor” actually touches and experiences the elements of the process so it becomes programmed into his/her brain. a good standard Visual Work instruction (sVWi) will pretty much cover all three of the common communication modes.

Where to start? Most people relate to the visual or touch categories and if those fail, will resort to orator tools. start effective communication in your meeting rooms and cafeterias: make instructions simple, yet easily understood and positive. use pictures. They’re a universal language that everyone understands. if the creation of a sVWi requires more than one page, the assignment is too complex. simplify the content or break it down into more meaningful miniature tasks.

Have individuals or teams go through the exercise of creating a sVWi where confusion, misunderstanding or conflict is occurring about role responsibility or accountability. sVWis are not created for operations but rather as an auditing tool for management to insure standard work practices are being followed. call it your “current best practice.” This will psychologically empower your people to seek improvements and constantly enhance the process.

Everyone should be empowered to suggest new best practices, so simplify the creation of a new work instruction.

Richard Kunst is president and CEO of Kunst Solutions Corp., which publishes the “Lean Thoughts” e-newsletter. E-mail rkunst@kunstartofsolutions.com.

Comments? e-mail JTerrett@plant.ca.

www.rousseaumetal.com 12 Canadian PLANT

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July/August 2011

11-08-04 2:28 PM

PLANT STAFF REPORT

M

anufacturing in Canada has had a rough ride the past couple of years, and not just because of the fallout from the worldwide recession. Increasingly aggressive global competition, escalating costs, environmental issues and a Canadian dollar that has passed the US greenback in value represent a convergence of conditions that are challenging, indeed, when it comes to making a buck.

Not surprisingly, industrial trade shows have been feeling the pinch, especially through the downturn. The number of exhibitors slid as did attendance.

Today, the page is turning. Manufacturers are more confident about their prospects, despite ongoing competitive challenges, and this optimism is reflected in the growth this year of the Canadian Manufacturing Technology Show 2011 (CMTS), which runs from Oct. 17-20 at the Direct Energy Centre in Toronto.

The Society of Manufacturing Engineers (SME), the show’s producer, has expanded the event and the focus is on elevating the attendee experience with live equipment demonstrations, more than 600 exhibitors, an exclusive industry keynote speaker, interactive panel discussions and educational sessions, plus more opportunities to network.

“We did a cross-Canada survey of CMTS delegates and there’s more optimism out there, which we’re seeing on the show floor,” says Nick Samain, SME’s event manager in Toronto.

Nearly 60% of the respondents plan to invest more in manufacturing equipment this year compared to what they spent in 2010, and approximately 30% are prepared to invest the same amount of money year over year.

Sixty per cent are exploring areas for diversification, with 62% planning to upgrade their machining and equipment as part of that strategy. Other areas earmarked for upgrading or diversification are design and engineering (45%), processing equipment (38%), quality (38%) and materials (35%).

Of the 75% planning to invest in manufacturing equipment this year, budgets will range from $1 million and more (10.5%); $250,000 to $999,999 (16.3%); $50,000 to $249,999 (25.4%); and under $50,000 (21.8%).

Two-thirds of respondents say trade shows play a role in their purchasing strategies; 81.3% use them to see equipment in action; 70.3% want to learn about new applications; 72.5% are looking for new products; and 52.7% attend to meet with technical staff.

Close to half of the respondents cite “keeping production costs under control” and “improving workforce productivity” as their most pressing challenges, while 22% reported difficulty keeping up with industry trends.

SME is dealing with this latter point by being more interactive prior to the show using several online channels. Manufacturers can keep up with show developments on an enhanced CMTS website, and SME is helping them keep up with industry

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13-PLT04.indd 13

?

Investing in

technology

CMTS 2011 FEATuRES whAT’S hOT iN ThE wORLd OF MANuFACTuRiNg

Show Time << Operations AutoLine Detroit and American Driver.

Sessions throughout the four-day event will cover cost control and productivity, energy costs, workplace productivity, laser cutting, machining technology and trends, design, manufacturing in the automotive, additive and medical sectors, and there will be an automotive summit.

To add some fun to the mix, Samain says 10 iPADS will be given away during the registration period and to broaden the show’s appeal beyond the Greater Toronto Area (GTA), registrants are being offered packages for hotel stays, shuttle to and from the show and entertainment in the evenings.

Conditions are ideal for manufacturers planning to invest in equipment and technology. Canadian companies can make use of the two-year tax write-off for their purchases, a measure that was extended in the federal government’s 2011 budget, and although the Canadian dollar is high, it means more bang for their purchasing dollars.

With manufacturers’ confidence and prospects improving, CMTS 2011 will provide buyers with an opportunity to experience under one roof the range of new machines, equipment and advanced technology that will be central to their ongoing business success.

Nearly 60% of manufacturers polled by SME intend to invest more in manufacturing equipment this year.

PHOTO: STOCK

trends through its newsletter, a twitter feed, and engagement through LinkedIn, Facebook and You Tube. You can check out the options by visiting http://cmts.ca.

“We want to be more than a show location,” says Samain. “We want to create a community and interact with each other before the event rather than having just one-way communication.”

So far, SME’s efforts are paying off.

Samain reports brisk business with exhibitors. Some of the big players who have been absent are returning and there are new ones. He’s also predicting 10,000 visitors this year, a 20% increase over last year.

International flavour India will have a significant presence at the show. The Indian Energy and Economic Development (IEED) agency is the biggest exhibitor with a pavilion and about 150 companies that will demonstrate their capabilities in IT, biotechnology, pharmaceuticals, mining (including oil and natural gas), machine tools and automation technologies. The delegation will also be hosting high-level events with Canadian and Indian consulate representatives and delegates.

The show’s international flavour will be further enhanced with a pavilion from Italy and its 12 to 15 exhibitors, and look for a contingent from Japan.

A key component of this year’s CMTS is the education segment. SME has secured some dynamic keynote speakers, starting with hard-core entrepreneur and TV personality Kevin O’Leary, a business pundit on CBC’s The Lang and O’Leary report, and a panel member on both the Dragon’s Den and Shark Tank shows. Samain has also confirmed John McElroy, a US automotive journalist and host of TV’s

Comments? E-mail JTerrett@plant.ca.

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11-08-04 3:14 PM

Operations

>> Automation

Siemens Canada has invested $3 million in plant upgrades and is adding 50 new jobs as it takes advantage of the opportunities offered by Ontario’s renewable energy market.

By JOe TerreTT, ediTOr

S

iemens Canada is now producing SINVERT solar inverters for Ontario’s clean energy market, which the company says should lead to 50 new skilled jobs.

The global electrical engineering and electronics manufacturer hosted media, company executives and local government officials on June 21 for the official production launch of the inverters that convert the direct current (DC) gathered from photovoltaic modules into AC power for Ontario’s electricity grid.

Siemens has invested $3 million in design, testing equipment and plant upgrades to accommodate the new production line that, in fact, has already shipped its first units to solar farms in Ontario. “Our two decades of experience in drives manufacturing enabled us to ramp up production successfully over the last months,” said Anthony Bezina, plant manager at the Siemens Industry Automation and Drives Technologies division facility.

The plant, which currently employs 85 people, has the capacity to produce about 250 megawatts of output, enough to power up to 32,000 homes.

Inverters range in size from 350 kilowatts to 1,400 kilowatts and are assembled on a lean production line that runs through four cells where wiring and harnessing are mounted in enclosures; control electronics are installed; the units are tested under full load; and then set up in HVAC-equipped stations (40 x 8 x 9.6 ft.) that withstand temperature extremes of between -40 to 70 degrees C. The “e-house,” built to withstand Canada’s salty, dusty, high-low temperature environments, is then ready for shipping to a solar installation where it’s a matter of “plug and play.”

The SINVERT inverters work as a master-slave configuration with up to four of them optimizing the energy yield to the solar PV generating facility. Siemens

Plant manager Anthony Bezina (right) demonstrates to Brad Duguid, Ontario’s energy minister, the assembly process of the SINVERT photovoltaic inverters manufactured in Burlington. PHOTO: SIEMENS

Siemens goes

solar

SinverT inverTer prOduCTiOn lAunCheS in BurlingTOn says whatever the weather conditions, the inverters operate close to a maximum efficiency from as low as 3% to 4% nominal power. In such a case, instead of four inverters operating separately, one operates with the load of four.

The system is built for efficiency. Each unit saves up to 43% of the operating time.

A rotating master distributes the working load evenly and each morning the unit

PM MOTOrS Add 1,200 hP Baldor electric Co. has expanded its rpM AC permanent magnet motor line to 1,200 hp.

The Fort Smith, Ark.-based manufacturer of motors, drives, mechanical power transmission products and generators says its pM rotor technology improves efficiency that translates into increased power density and synchronous (non-slip) RPM AC motor. speed performance.

The motor, available in neMA and ieC (112, 132, 160, 180 and 280) frame sizes, provide continuous constant torque from zero to base speed for use with closed loop pM AC drives.

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14 Canadian PLANT

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with the lowest operating hours starts first, while standby units save their time.

PV-WinCC open architecure software operates the system, providing visualization and control. According to the Siemens specs, the software is based on Windows 2000/XP and shows current states, messages, measured data and delivers reports. Data is organized and saved every second in a Microsoft SQL Server 2005 Archive and can be pulled up to provide documented evidence of conformity.

Siemens’ 3,900 square-metre Burlington plant has 10 people currently working on the inverters but the company expects to create 50 skilled jobs in business development, engineering and production to support the product.

Joris Myny, Siemens Canada’s vicepresident of the Industry Automation and Drive Technologies division, said the manufacturing of PV inverters in Ontario allows Siemens’ customers investing in commercial and large ground mount applications to meet the “minimum required

domestic content level” set by the Ontario government’s feed-in-tariff (FIT) program.

Brad Duguid, Ontario’s Liberal energy minister, on hand at the event to tout Ontario’s long-term energy plan, took the opportunity to fire pre-election shots across Progressive Conservative leader Tim Hudak’s bow, criticizing the opposition leader’s vow to end the FIT program, and rip up what he called a “shady” $7 billion deal with Samsung to manufacture components in the province. Karlheinz Kaul, CEO of the systems engineering business unit of the Siemens Industry Automation division in Germany, made a point of thanking the Ontario government for its commitment to clean energy and stressed the importance of a “stable” market for business investment.

“Governments jumping in and out creates a lot of confusion and that’s not sustainable,” he said.

Like other renewable energy companies, Siemens has been investing in Ontario’s clean energy market based on the stability offered by the FIT program. It announced in December that its Tillsonburg, Ont. plant will invest $20 million and create up to 300 jobs to make wind turbine blades.

Ontario’s Liberal government says its clean energy economy has so far attracted more than $20 billion in investment and created more than 13,000 jobs.

Whether the job growth continues and companies like Siemens invest any more time and money in Ontario’s renewable energy market will depend on how voters see the issue when they go to the polls in October.

Comments? E-mail JTerrett@plant.ca.

July/August 2011

11-08-04 2:59 PM

Automotive << Trends

US demand drives vehicle sales Profits Are uP desPite globAl disruPtions And A strong dollAr

G

lobal forces continue to impact the Canadian automotive industry, which could lead to rising prices for consumers but business is looking good for vehicle and parts manufacturers, according to a Conference Board of Canada report.

Canada’s Motor Vehicle Manufacturing Industry-Spring 2011 outlook predicts profits of almost $1 billion this year, an increase from $114 million in 2010. Revenues were up by 29% last year, and will rise another 8% this year.

The Ottawa-based think tank said after cost slashing during the recession, automotive manufacturers’ expenditures will rise slower than revenues, leading to improved profits driven by recovery in US light vehicle sales.

About 84% of Canadian-assembled vehicles go to the US, and sales there are on pace to exceed 13 million units this year, but there’s room for growth with normal market conditions of 16 million units per year.

The earthquake and tsunami in Japan hit Canadian Toyota and Honda plants particularly hard. In the second quarter, Toyota slashed production by 56% and Honda by 31% because of difficulties getting parts.

The Conference Board expects produc-

tion to increase by 11.8%, down from 15% in the Autumn 2010 forecast. But the production slowdown will be temporary and supply should return to more normal levels later this year.

For consumers, one likely effect of the Japanese earthquake is higher prices, as Toyota and Honda attempt to conserve their vehicle inventories. The report said Detroit automakers might gain additional market share as a result of the disruptions.

Growing demand and cost restructuring led the parts industry to a $255-million profit last year, the first profitable year for the industry since 2007. Strong gains in production in the second half of the year will lead to a profit of about $455 million in 2011.

However, the Conference Board warns that because of the strong dollar, profit margins will remain below their pre-recession levels through the forecast period.

Global car sales were up 5% in the first half of the year, despite sovereign debt problems in Western Europe, vehicle shortages from Japanese automakers, and increased consumer caution due to near triple-digit oil prices and higher financial market volatility since April, reports Scotiabank Economics in its June

First of the 2011 Chevrolet Camaros rolling off the assembly line at General Motors’ Oshawa, Ont. plant.

PHOTO: GM

Global Auto Report.

“We expect a further acceleration in the second half of 2011, as product shortages wane, and the pace of job creation in emerging markets remains solid,” said Carlos Gomes, senior economist and auto industry specialist for Scotia Economics. “Job growth in developing nations exceeds 3% year-over-year – nearly five times the tepid growth in Western Europe and North America.”

He said rising global industrial orders – currently advancing at the fastest pace since February – also point to stronger activity in the second half of 2011.

>> energy

Energy execs primed for investment globAl industry oPtimistic About 2011

P

ositive business conditions in Canada are giving oil and gas companies the confidence to invest this year, although rising inflationary pressures could crimp their plans, says an Ernst & Young report.

Of the 1,000 worldwide company executives polled by the global consulting firm, 75% said they are more optimistic about prospects in 2011.

“With political unrest in the Middle East putting pressure on companies to develop energy sources in new regions, and economic growth amplifying global demand, it’s no surprise that the vast majority of oil and gas companies are on the prowl for new growth opportunities,” said Kevan Holroyd, executive director in Ernst & Young’s Oil & Gas Transaction Advisory Services group.

A Suncor Energy natural gas plant.

PHOTO: SUNCOR Canadian companies are in a prime position to capitalize on growth opportunities thanks to the stable • 33% believe that access to finance is not a problem. financial, regulatory and political environment, he said. “This Companies are keeping an eye on rising cost pressures, cutcombined with our proximity to the US market and our track ting costs, implementing operational efficiencies and improving record for attracting foreign investment from Asia has created cash flow before making long-term plans. an environment that’s ripe for robust transaction activity.”

Ernst & Young notes joint ventures, partnering and strategic Here are some highlights from the report: alliances, particularly with foreign companies, are becoming • Of the 83% of executives pursing growth, 46% are looking at increasingly common in Canada as companies look to share mergers and acquisitions this year, up 15% from 2010. development costs, pool resources, mitigate risk and support • 37% intend to grow organically by adding projects and greater collaboration. An example is Progress Energy’s $1.1 properties. billion partnership with Petronas, Malaysia’s national oil com• 23% expect financing will be readily available for major pany, in the Montney shale gas assets in BC. acquisitions and/or capital projects.

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The report says US car sales moderated to less than an annualized 12 million units in recent months, but they’ll strengthen by September. Japanese automakers will launch major sales campaigns once their inventories climb to a more normal 60 days of supply, up from 47 days at the end of June.

Passenger vehicle sales in Canada advanced 3% year-to-year in the first half of 2011, but Scotiabank is calling for an increase to 1.59 million units, in line with the average of the past decade. US volumes will be at least 20% below the decade average of 16.4 million.

>> events Contract Manufacturing Purchasing Fair CTMA/NTMA Sept. 7-8, Chicago the canadian tooling and machining Association and the national tooling & machining Association (ntmA) host this opportunity for canadian tool shops to network with buyers. Visit http://ctma.ca.

MainTrain Edmonton 2011 PEMAC Sept. 19-21, Edmonton the western maintenance, reliability and asset management conference hosted by the Plant engineering and maintenance Association of canada (PemAc). learn global best practices. Visit www.pemac.org.

Canadian Manufacturing Technology Show 2011 SME Oct. 17- 20, Toronto cmts (the canadian manufacturing technology show) features live demonstrations of the latest machine tools, automation technologies and production methods.

Presented by the society of manufacturing engineers (sme). Visit http://cmts.ca.

Canadian Waste & Recycling Expo Messe Frankfurt Nov. 9-10, Montreal for waste and recycling professionals. includes the canadian Waste sector symposium. Visit www.cwre.ca.

Canadian PLANT 15

11-08-04 2:29 PM

Management

>> Leadership

>> Marketing

Horrible bosses defined FOUR CATEGORIES OF BAD MANAGERS

B

ad bosses are easy to spot in pop culture: Mr. Slate, Fred Flintstone’s short-tempered boss at the quarry; Montgomery Burns, Homer Simpson’s cruel task-master; the bumbling Michael Scott from The Office and most recently Jennifer Aniston’s sexual harasser, Dr. Julia Harris in the movie Horrible Bosses.

Captivate Network, a US company that manages content feeds to elevator TV screens across the continent, surveyed more than 670 North American workers on their experience with bad bosses and came up with four classifications of terrible head honchos. See yourself or your boss on this list?

• Time is money boss. Likely in the engineering department. Makes employees feel like they’re squeezed and must focus only on what impacts the bottom line. Relies on staff far too much and overloads them accordingly.

• Workaholic boss. Lives in the office. No time for personal

activities during the day. Works too much and feels compelled to do it all, leaving employees feeling micromanaged.

• Judge and jury boss. Generally lurking among small and medium-sized businesses, between 35 and 54 and making between $40,000 and $75,000. Spends a lot of time doing lunch, making personal calls or running errands while passing judgment on those in the office who are likely unhappy with their no worklife balance. Routinely under rates the high performers.

• Empty suit boss. Unproductive and hard to spot because they tend to be out of the office much of the time. Might be one of the easiest to deal with. Look for this guy/gal in a luxury sedan, on the way to another lunch meeting.

Employees are not above scrutiny in the survey. Captivate found they’re far more likely to engage in bad behaviour than their flawed superiors.

Indeed, workers are more likely to take excessive smoke breaks (50%), go for a work-time stroll (75%), go shopping (53%) and shop online, using the company computer (91%).

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Don’t sell yourself short YOUR MOST PROFITABLE SALE MAY BE SIX MONTHS FROM NOW

BY ANDREW SHEDDEN

I

n a perfect world your marketing department would do an excellent job of qualifying inquiries and your sales leads would say, “Yes please, could I have it tomorrow?” But only 2% to 3% of any market is ready to buy now.

Five years ago many buyers had three- to six-month buying cycles. In today’s marketplace buying cycles are getting longer.

To reduce risk, some are creating buying committees or teams with multiple decision makers. Others are adding new steps to their purchasing process to mitigate risk. Both strategies add time to the buying cycle.

Many marketing experts agree most qualified sales leads will turn into purchases within 12 months. The marketing “Rule of 45” reveals average purchases will be concluded at the following rates: 10% to 15% in three months; 26% in six months; and 45% in 12 months. If your salespeople focus strictly on prospects ready to buy within 90 days you’re missing out on 66% to 78% of the total selling opportunities.

Creating a lead development system that offers your buyers useful educational information for up to 12 months from the time of your initial contact ensures you’ll get a significant share of that 45%. Here are some tips: • Use a series of targeted communications to promote timely and relevant content that assists buyers with purchasing decisions. These communications are typically tip-sheets, reports, white papers, blogs, e-mails, webinars and podcasts.

• Most buying cycles follow predictable stages. Aligning your lead development content with them resets the buying criteria in your marketplace.

• During the early stages of the buying cycle, provide content that encourages buyers to reconsider the status quo. Don’t deliver sales pitches about your company: show customers how to deal with their issues and pain, using examples of others who are solving similar problems. Use market data and industry trends to enhance your credibility. And provide a checklist that facilitates the decision making process.

• As the cycle progresses, provide buyers with case studies and testimonials that demonstrate how others have benefited by choosing your company.

Patient lead development will reduce buyer fear of making a purchasing decision and with any luck, shorten those longer sales cycles.

Andrew Shedden is the president of Broadfield Communications, an industrial marketing consulting firm. Call (800) 353-4447.

Visit www.broadfieldcommunications.com/ plant.htm for the Seven Steps to Manufacturing Profits special report.

Comments? E-mail JTerrett@plant.ca.

16 Canadian PLANT

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July/August 2011

11-08-04 2:33 PM

Strategy << Management

How to achieve

post-recession success

By Pete Mateja

O

8 lessons that will help any size manufacturer

ver the past several years, the Office of Automotive and Vehicle Research in Windsor, Ont. has worked with a number of manufacturers that needed advice on how to survive in a downturn. Based on the initiatives undertaken by more than 4,000 Ontario manufacturing companies during this difficult period, here are some of the lessons that are applicable to any size manufacturer.

Cash is king. During the recession, many CEOs, including those of major corporations, began monitoring cash on a daily basis, de-emphasizing monthly financial statements. Some were even doing it twice per day – once mid morning and then at the close of business. Spending decisions were often deferred until the company was in a better cash position. With the economy improving, some manufacturers are no longer watching the cash position daily. Neglect this and you may leave yourself open to some unpleasant surprises.

Know your banking covenants.

While managing day-to-day activities, especially during crisis situations, some CEOs ignored the conditions of their banking covenants. You can be sure their financial institutions did not. As a result, many of them were surprised when they received unexpected telephone calls or letters indicating the company had breached its banking covenant, a costly error. The financial institution normally levies a penalty, offers unwanted help, imposes new restrictions, reduces the credit line, increases the interest rate, or worse, calls in the loan. This could happen even because of a violation for only one day.

Monitor the covenants on a daily basis.

Look for ways to increase productivity. Favourable tax treatments combined with a number of attractive government funded programs and a stronger Canadian dollar are allowing manufacturers to upgrade machinery and software. Canada’s productivity lags the US and the gap widened during the recession. Many companies attempted to adapt lean manufacturing principles; however, lean is not a program of the month. It’s a culture that takes years to effectively implement and maintain. As the economy recovers and more companies are profitable, lean is losing is visibility. That could be a fatal mistake. Global competitors want a share of the Canadian market. Canadian businesses must continue to upgrade their machinery and software while maintaining a lean culture to improve productivity.

Know the status and profitability of your customers. During the recession, many companies went bankrupt or required major financial restructuring because some of their customers defaulted on payments. For some, the loss of one or two major customers was all that was needed to tip them into financial disaster. One privately owned medium-sized manufacturer had to write off more than $1.2 million in bad debts, $500,000 of it attributed to one customer.

Fortunately, this did not cause the firm to go into bankruptcy but the write-off did wipe out its profitability and strained the operation for some time. Some successful firms kept tabs on the profitability of their customers

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however, many businesses invested in new products and services during the recession, especially those with global competitors in the automotive, high tech and medical/pharmaceutical industries.

Innovation is critical to winning a major competitive position and not being vulnerable to price concession demands from aggressive buyers.

Dr. Robert G. Cooper, who has been called the grandfather of new product development, has stated that there is a failure rate of 25% to 45% for new products. Other sources place the failure rate higher than this. It’s also believed that for companies to grow, at least 10% of a firm’s revenues should be derived from new products/services that were not offered the previous year. For a true and sustainable competitive advantage, investments in new product development are essential Align with a partner. Academia is an under-utilized resource. Partnering with colleges and universities allows companies to acquire leading edge expertise without adding, training and then waiting for new staff to make contributions. During the recession, many companies increased their involvement with uniGlobal competitors want a piece of the versities and colleges intending to gain a Canadian market. Manufacturers need competitive advantage. Numerous Canato up their game. PHOTO: iSTOCKPHOTO dian government programs have offered funding grants to such partnerships. Auto 21, domiciled at the University of Windsor, is one of the and eliminated those that did not achieve an acceptable most successful of these programs delivering leadinglevel. Surprisingly, with fewer customers, some manuedge automotive R&D. Other help that academic institufacturers found their profits increased. Don’t lose focus tions provide ranges from the development of business of your revenue sources. Review customers’ financial strategies and new market assessments to ergonomics, positions monthly and don’t take on new business if it employee training and development. Forming a working doesn’t make a positive contribution to the bottom line. relationship with them is one of the most cost-effective Take advantage of government programs. There methods of gaining expertise in many areas and offers are a number of them available across Canada, inenormous financial benefits. It’s not surprising that most cluding Automotive Partnership Canada, FedDev, AIME industry leading companies have worked closely with and SMART. Numerous companies took advantage of academia, some of them even funding chairs. them and some qualified for multi-awards. There were outright grants while others matched a company’s inMake sure your business has a website that is vestment dollar for dollar. Unfortunately, with most Cacurrent. For many buyers, this is their first choice nadian provinces wishing to eliminate budget deficits by for information. All industry leading companies have 2012, and with the economy strengthening, many of the well-designed, advanced websites. Their sites look programs are ending. Connect with the local Ministry of great because they’ve taken time to mature and build Economic Development and Trade’s NRC Industrial Recontent, staying with or even ahead of industry trends. search Assistance Program (IRAP) and local economic During the recession, smaller manufacturers used their development representatives about the various govwebsites as the primary medium for advertising and as a ernment programs. Since they change regularly, make replacement for sales forces. Too many companies have sure you are on their contact lists. Both the federal and neglected this valuable resource. provincial governments have money available to help Although there are many lessons that can be applied you become more competitive. to successfully growing a business, following these tips will ensure the journey is relatively trouble free Invest in market and/or new product developand help your company take full advantage of the new ment. These initiatives are costly and may not be for economic environment. every company. Both require adequate financial resources, patience, a tolerance for risk and qualified manpower.

Pete Mateja is co-director of the Office of Automotive For some companies, market development means selling Research, Odette School of Business, at the University outside Ontario or to new customer industries. For of Windsor, in Windsor, Ont., and he served as the others, it means selling to customers in the US, Mexico, Executive Director of the Canadian Manufacturers & Europe or Asia. The US market is enough for some. For Exporters’ government sponsored SMART Program. instance, California has a population of 37 million, which Visit www.autowindsor.com. is larger than the population of Canada. Usually, the farther the market, the riskier it becomes.

Comments? E-mail JTerrett@plant.ca.

New product development is not for the faint of heart;

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Canadian PLANT 17

11-08-08 2:10 PM

SAVING energy makes sense —business sense.

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18-PLT04.indd 18

11-08-04 12:29 PM

Incentives << Innovation

Advantage through

>> Weight Reduction

INNOVATION USE THE SR&ED PROGRAM TO SUPPORT R&D EFFORTS

Canada’s Scientific Research and Experimental Development tax incentive program is one of the most generous in the world, yet it’s under-utilized by Canadian manufacturers.

BY PAUL BOUCHER

A

s the healing from the economic downturn continues, we’re reminded that innovation is critical for business growth.

Manufacturers that focused on efficiency, productivity and innovation successfully navigated through the turbulence and are stronger because of their efforts.

The federal government also recognizes the role innovation plays and has lately been reinforcing support for this competitive advantage. The Scientific Research and Experimental Development (SR&ED) tax incentive program is key to the government’s efforts to accelerate private sector investment, enhance the ability of Canadian firms to participate in global markets and create a more competitive business environment. This program is the single largest source of government financial support for industrial research and development (R&D).

Canada has one of the most generous programs in the world, each year providing businesses with about $4 billion in tax credits to support R&D, yet among the 17 countries in the Organisation for Economic Co-operation and Development (OECD), we rank a lowly fourteenth in innovation.

Many businesses have leveraged the SR&ED program as a valuable competitive advantage. One family owned manufacturing company

survived the economic downturn and created new market opportunities that will soon double its business.

This mid-size manufacturer had been operating in the fabricated metal sector for more than a decade – until the company’s largest customer unexpectedly declared bankruptcy during the recession. Faced with idle machining and assembly and the loss of irreplaceable sales, the management team immediately began investigating other opportunities.

Unfortunately, they could find no significant potential within the company’s own or related sectors.

Looking farther ahead, management eventually identified possible opportunities within the energy sector.

Since energy is significantly more regulated than their own, they had to develop prototypes for a rigorous approval process. Knowing this would require an extensive investment in R&D, the management team worked with a specialist to evaluate SR&ED opportunities and develop a process that would meet program requirements. This was crucial because many alternative lenders had vanished during the downturn and management had few funding options.

The company submitted a successful claim to the SR&ED program and with the assistance of $200,000 in tax credits, accelerated cash flow and working capital. Within two years management had developed the

necessary prototypes, successfully secured several contracts, reconfigured its operations and is now on track to double sales.

This enterprise is one of about 18,000 businesses that use the SR&ED program each year. Since there are more than 84,000 manufacturers in Canada, many more would benefit from the program’s investment tax credits of up to 35% for eligible current and capital expenses – along with additional deductions and credits offered by most provinces.

Identifying opportunities There are a couple of steps manufacturers can take to identify appropriate R&D opportunities and submit successful claims. For example, when planning significant expenditures the management team should discuss these investments in the context of their potential contribution to research activities. If an investment might contribute to producing new products and processes or improve existing ones, a company may be able claim tax credits.

To identify and monitor R&D activities a company must be able to track them on a current and ongoing basis.

This requires integrating R&D practices into the regular business routine, such as adding an agenda item to monthly operations review meetings. Discussing recent activities at these meetings makes it easier to document activities – and to meet requirements of the SR&ED program.

Canadian companies facing the loss of sales volume or entire markets have been investing in new products and manufacturing processes with the assistance of this program, thereby supplementing and sometimes completely replacing a core business. Most (75%) of the SR&ED participants are small to mediumsize businesses so the door is open for virtually any manufacturer to enhance innovation and productivity. And there’s never been a better time to assess opportunities for using the program to gain a competitive advantage.

Paul Boucher is the national advisory leader of BDO’s manufacturing industry practice. E-mail pboucher@bdo.ca or call (905) 272-7831.

R&D in the aerospace industry: testing aircraft engine performance.

www.plant.ca

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PHOTO: iSTOCKPHOTO

Comments? E-mail JTerrett@ plant.ca.

Light weight aluminum car concept.

PHOTO: iSTOCKPHOTO

Process models lighten aluminum

BY MARY WELLS

R

apidly increasing fuel prices and demand for low emission vehicles are driving consumers away from large trucks and sport utility vehicles to more efficient cars. Their preferences and proposed US Corporate Average Fuel Economy (CAFE) regulations calling for 34.1 mpg by 2016 and 56.2 mpg by 2025 are motivating North American car companies to re-examine the use of lightweight materials such as aluminum, in their vehicles.

By 2020, average aluminum content is projected to rise to nearly 182 kilograms, up from about 148 kilograms in 2009, as automakers make lighter engine blocks, hoods and other components. As a result, research is focusing on the development of process models for aluminum manufacturing.

The properties of metal products depend on the microstructure of the material, which in turn is a complex function of composition, grain size and orientation, distribution of phases and precipitates and the presence of strain.

A current project involving Nemak Canada, the Natural Resources Canada CANMET Materials Technology Laboratory, the National Research Council Canadian Neutron Beam Centre (CNBC) and the AUTO21 Network is furthering the improved performance of aluminum engine blocks using process models.

Nemak, a Windsor, Ont. manufacturer of aluminium automotive components, uses a novel precision sand casting operation, head deck gated, with integral crank chill, to make engine blocks from cast aluminum alloys. This new technology better controls microstructure and faster cooling rates to produce significantly higher-strength materials. Understanding the material behavior during the casting operation and in-service performance is key. The stability of the microstructure during in-service is especially critical because a precipitation reaction can cause dimensional changes in the product.

Precision sand casting involves a resin-bonded sand that forms a mould that shapes the contours of the engine component. The sand is cured in a solid exterior mould and molten metal is poured into it using a low pressure and electromagnetic pump. This process allows for the use of cast-in-place iron liners in engine blocks and pressurized filling, producing a high degree of dimensional accuracy plus cooling rates that are faster than traditional sand casting technology.

The research has developed and validated new models and process monitoring technologies that ensure more repeatable casting results and better performance in-service. This will help manufacturing engineers better understand the properties of cast materials and the control of casting processes.

Dr. Mary Wells is a researcher for the AUTO21 Network of Centres of Excellence and a professor at the University of Waterloo. Visit www.auto21.ca.

Comments? E-mail JTerrett@plant.ca.

Canadian PLANT 19

11-08-04 3:18 PM

Technology

>> Plant Intelligence

Face time video streaming boosts plant operations

Ramping up in Asia

The Winnipeg company, which produces about 8 million denim products annuhen Bill Gallanders and seven ally, collaborated with production teams other engineers formed Liin Bangladesh and China to solve detail brestream in 2003, streaming issues as minute as missed stitches and media was still isolated voice-over IP denure count. systems. Within three years, the WinLibrestream currently employs about nipeg-based company introduced the 50 people (at its 1,022 square-metre world’s first remote video-collaboration facility), most of them devoted to R&D system, which is making plants more Job 1911-126E and engineering, says Marieke Wijtkamp, tech-savvy, cutting downtime and in- 4C.indd File Name 1911-126E PlantMagazine 2.5x10 Last Modifi ed 5-27-2011 9:35 AM vice-president of marketing and client creasing production.

Users Adam some Savage time and a lot services.

MindPrev. you it took Cyan Customers are mostly North of coding Client – 1.2 Sommers million lines Magenta None Bleed American-based Fortune 500 – to introduce Librestream’s Yellow Black Trim 2.25” x 10” and Fortune 1000 businesses OnSight, which tackles comLive None in manufacturing and oil and plex manufacturing and supScale None gas, but Wijtkamp says as more ply chain problems remotely None companies consolidate their using a real-time video, voice manufacturing operations offand telestration collaboraFonts & Placed Graphics shore, Librestream is ramping tion system.

Fonts up in areas such as Asia and “Getting investment money Myriad (Bold, Roman, Bold Italic, Italic), Helvetica Neue LT Com (53 Extended) South America. to build the system was the Links The company has some mainSommers_Logo_4Col.eps reason it took so(Up long,” to Date), winco.tif (Up to Date; 8713 ppi), IMG_7681.tif (Up to Date; CMYK; 1033 ppi), exciting new upgrades in the saysCMYK; Gallanders.

“We had iStock_000003933154Large.tif (Up to Date; CMYK; 3179 ppi) works, locked away in the to do freelance engineering company’s lab. As manufacturconsultations for a year just ing continues to evolve with the to pay the bills.”

Their remote video-collab- This video/stills camera takes images of troublesome machinery. PHOTO: LIBRESTREAM emergence of new equipment technologies, Librestream is oration is certainly paying streaming, two-way VOIP audio with ready to address the next level of indusoff now that it’s used by Fortune 500 and speakerphone and handset capabilities, try concerns, even if it takes another 1.2 Fortune 1000 clients around the world. and outstanding optical zoom for video million lines of code.

“Say you have an injection moulding and still images (1cm to 10x). Users can machine that’s reporting a batch of parts draw or make annotations onscreen; biyou need has failed,” he says. “Someone Matt Powell is an online reporter with directional image sharing modes help out must decide whether those parts have to CanadianManufacturing.com. E-mail when network connection strength may be redone or you’re going to use them as MPowell@canadianmanufacturing. be a concern; and there are advanced is – this is something on which you can com. security, encryption and authentication collaborate remotely with off-site quality features. assurance personnel using the OnSight Comments? E-mail JTerrett@plant.ca. system.”

The technology is a beefed-up version of video conference calling, with voice and telestration capabilities that run through a remote network of broadband and cellular networks.

An onsite worker uses a hand-held device that videos or takes still images of a troublesome piece of machinery. Session initiation protocol (SIP) is then used orth American manufacturers are turning to robotics in a big way this year, thanks to a to control multimedia communication resurgence in the auto industry. The Robotic Industries Association (RIA), an Ann Arbor, sessions such as video and voice calls Mich.-based industry trade group, reports orders jumped 41% in the first half of the year. through unique IP addresses, allowing Companies ordered 8,879 robots valued at $577.8 million. Orders from outside North America interaction with off-site experts. raised the total to 10,476 robots valued at $667.9 million.

“The entire video conferencing indus“This was the best first half for our industry since 2007,” said RIA president Jeff Burnstein. try is standardized on SIP,” says GalThe second quarter was particularly strong, with a 50% gain in units and 55% increase in dollars landers. “We made the process wireless over the same period in 2010. by integrating those capabilities into Burnstein attributed most of the growth to increased orders from automotive manufacturers and OnSight.” their suppliers, traditionally the largest customer for robotics.

Librestream preps its clients to ensure “With the revitalization of the auto industry in the US, robot orders to these customers rose 60% there are no broadband issues. in the first half of the year,” he said.

“We spend a lot of time making sure Non-automotive orders increased 23% through June, led by gains in metalworking (up 70%). companies measure their available bandThe RIA said the industry is on pace for its best year for new order volumes since 2005. width,” says Gallanders. “The clients Visit www.robotics.org for report highlights. need to understand its network envi-

W

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ronment. But typologies and network firewalls also need to be worked around to ensure the system works properly.

We make sure our product is as robust as possible so the customer doesn’t have bandwidth as a barrier to use.”

In a manufacturing setting, the system manages supply chains and conducts design reviews for industries such as aerospace, automotive and packaging, reducing unplanned downtime while improving production by increasing response time to machinery issues on the shop floor.

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Distributor

>> Robotics

Robot orders jump 41% Fuelled by auto industry

N

July/August 2011

11-08-08 2:10 PM

Product Showcase << Departments

Pumps, Valves and Flow Meters

MONITORING INLINE FLOW

FAST RESPONSE ACTUATION

The 2000 WA close-coupled pump.

GO WITH THE LOW FLOW Moyno Inc. has designed its 2000 closecoupled WA and WB pumps for lower pressure and lower flow applications that require the transfer of highly viscous fluids and solids with the robustness of a gear joint.

Key features of the Moyno 2000 WA pump include bearings integral to the adapter housing that support the radial thrust loads at the rotor/stator; a standard size/keyed gear reducer shaft; a sealed, gear-type universal joint drive train; and an optimized rotor/stator pumping element geometry.

The WB pump has a traditional closecoupled design with thrust and radial loads supported by the bearings in the gear reducer; a gear reducer output shaft with cross drilled pin holes for extended service life; a sealed, gear-type universal joint drive train; and optimized rotor/stator pumping element geometry.

Moyno, based in Springfield, Ohio, is a manufacturer of industrial pumps. www.moyno.com

Exlar Corp.’s Tritex II linear actuator handles control valve and damper process control applications in hazardous areas that require a fast response to the smallest command Tritex II liner signal changes, even when friction is present. actuator.

Combining a brushless motor, a specially designed roller screw mechanism for converting electric motor power into linear motion and a built-in position controller, the linear actuator delivers forces up to 3,685 lb., strokes up to 18 in. and speeds up to 33 in. per second.

The Tritex II also comes in a rotary configuration for ball and butterfly valves, providing continuous torque ratings for modulating-duty applications of up to 4,000 lb./ft.-in.

The actuator directly couples to the valve’s shaft, eliminating all linear-to-rotary linkages and significantly reduces backlash.

It mounts on any valve from any manufacturer and the Chanhassen, Minn.-based manufacturer of motion control products says both configurations have a -20 to 65 degree C range. www.exlar.com

PGZ 1X A LOW PRESSURE PLAYER Rexroth has introduced something new in its hydraulic pump range for low-pressure applications in the 20 to 140 ccm nominal range.

The PGZ Series 1X gerotor pump, with a speed range from 200 to 3,000 rpm, cools, PGZ 1X filters and lubricates circuits gerotor pump. with low operating pressures up to 15 bar. Typical industrial and mobile applications include plastic processing machines, machine tools, presses and wind power plants.

>> Plantware TUBE BENDING: THERE’S AN APP FOR THAT! Bidding on a bending job?

You can now evaluate bending machine tooling on your Apple iPhone. A calculator app by tube bending machinery specialist Unison Ltd. quickly picks the tooling needed for bending on any type or make of tube bender. You simply enter the required radius, tube diameter and wall thickness – in metric or imperial units – to get a visual of the type of mandrel and wiper die that will execute the perfect bend.

Bosch Rexroth Canada, a subsidiary based in Burlington, Ont. of Bosch Rexroth AG, notes the pump is good at priming and combines low operating noise with a wide speed and viscosity range.

It comes in four flange/ shaft versions and works on its own or combined with Rexroth axial piston pumps, vane pumps and internal gear pumps.

Bosch Rexroth AG is a German developer of drive and control technologies. www.bosch.com

Parker Fluid Control has built durability into its new inline flow meters.

There are no moving parts to clog or wear out, which is good for accurate monitoring of media with small particulates in applications using water, water/ glycol coolant and other low-viscosity fluids.

Parker’s Vortex Shedding Flow Meters operate with NPT ports ranging from ¼ to 2 in. and handle flows from 4 to 200 gpm with occasional over-ranging of up to 125% without sustaining damage.

They have 4 to 20 mA flow rate transmitters and the meters withstand working pressures from 10 to 300 psig while operating efficiently at fluid and ambient temperatures from 1.7 to 65.5 degree C. Standard units are equipped with a solid-state relay that sets to a pulse output or a flow alarm.

Parker Fluid Control is a New Britain, Conn.-based division of Parker Hannifin, a manufacturer of motion and control technologies. www.parkerfluidcontrol.com

It’s compatible with any iPhone, iPod Touch or iPad running IOS 4.0 or later, and it will be updated regularly. Indeed, Unison is currently developing user-selectable tube profiles and material types, such as steel, stainless steel, and copper, to facilitate machine-specific calculations such as bending force requirements.

Download Version 1.0 free from Apple’s iTunes App Store. Search for “Tube bending tooling calculator website.” www.unisonltd.com

I n n o v a t i o n

I

I n t e r a c t i o n

Vortex shedding inline flow meter.

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Canadian PLANT 21

11-08-04 12:25 PM

Departments

>> Postscript

Why Americans need Canadian oil

By Mark Milke

I

Governments that repress their populations, in addition to “being morally problematic, are hardly reliable exporters... ”

n a recent book on women’s rights Those two countries are the world’s in the Middle East and North Africa, top two oil producers and exporters Eleanor Abdella Doumato chronicled but they’re hardly an exception among the Saudi prohibition on political parties, oil-rich countries. Combining oil export the lack of free speech, restrictions on data with measurements from Freedom the media, religion and assembly, the House, a US-based think tank that tracks illegality of trade unions and the severe a variety of liberties, Canada is one of restrictions on women’s rights. Over in only two countries among the world’s Russia, Amnesty International noted top 15 net oil exporting countries considhow, in 2010, “human rights defenders ered “free” in its comprehensive freedom and independent journalists continued to 23-0363_ASCO-G3FieldbusAd-Plant-7.875x10.75.ai 7/26/11 5:02:37isPMthe other.) ranking.

(Norway face threats, harassment and attacks.”

Three countries – Kuwait, Nigeria and Venezuela – are classified as “partly free.” The rest, classified as not free, include: Saudi Arabia, Russia, Iran, United Arab Emirates, Angola, Algeria, Iraq, Libya, Kazakhstan and Qatar.

Americans should take note. Rhetoric about the need for energy independence notwithstanding, the trend-line for US oil imports has been “up” for decades, except during recessionary years. Almost

four decades after the 1973 oil embargo by some Middle Eastern countries, the US now imports 5.5 million more barrels daily than it did then.

They should also consider the link between a poor human rights record and instability, as the recent Arab Spring uprisings in Tunisia, Egypt, Syria, Bahrain and oil-exporting Libya demonstrate.

Governments that repress their populations, in addition to being morally problematic, are hardly reliable exporters.

Given US dependence on imported oil, Americans must clearly understand who their human rights-respecting friends are and the consequences of any artificial restrictions on Canadian oil imports.

For example, in 1979, the year of the Iranian revolution and when American diplomats were taken hostage, Canadian oil constituted just 6.4% of all US oil imports. That was similar to Iran’s share in the year just before the revolution (6.1% in 1978). Imports of Iran’s oil were cut in half in 1979 and ceased in 1980.

Since then, while other nations have fluctuated in terms of their importance to the US oil import market, Canada’s crude has grown.

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Forget flickering LEDs and maddening DIP switches! The revolutionary G3 fieldbus pneumatic valve manifold puts a plain-language display on every module, with accessible pushbuttons and intuitive menus for amazingly easy configuration and diagnostics. Another telling difference: the industry’s most flexible and cost-effective I/O distribution architecture. Identical I/O modules (digital or analog) can be used in both centralized manifolds or distributed wherever needed in your application. And our optional Auto Recovery Module (ARM) saves

By 2009, Canada accounted for 21.2% of all oil imports to the US, and is now America’s biggest supplier. That was more than all Persian Gulf countries at 14.4%, which is down significantly from 1979 when Gulf countries accounted for one-quarter of all US oil imports.

The International Energy Agency forecasts oil will remain the world’s dominant fuel for the foreseeable future.

It predicts 99 million barrels in daily consumption by 2035, up from 86 million now. That same agency also predicts that unconventional oil – think Canada’s oil sands – will play “an increasingly important role in world oil supply through to 2035, regardless of what governments do to curb demand.”

To wit, Canada is the only major world oil producer that already exports significant amounts of crude oil to the US; in part because of its longstanding positive record on civil, political and economic rights.

Looking ahead, there’s a third advantage: Canada has the potential to greatly reduce US dependence on non-North American oil. That reality can help the US avoid any economic and policy shocks that might result from an overreliance on countries with unpredictable, and in some cases, undesirable regimes.

and reloads all configuration data to insure fast change-out. Once you've used the Numatics G3 platform with easy configuration, commissioning, and "tell it like it is" diagnostics, you won't use anything else!

For product information: www.numatics.com/G3 Tel: (866) 696-1601 asconumaticscanada@emerson.com

Mark Milke directs the Fraser Institute’s Alberta office and is author of In America’s National Interest – Canadian Oil: A Comparison of Civil, Political and Economic Freedoms in Oil-Producing Countries. Visit www.fraserinstitute.org.

Comments? E-mail JTerrett@plant.ca.

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July/August 2011

11-08-08 2:10 PM

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High Efficiency. Low Cost.

Engineered Together into SEW’s Popular New DR Series.

Meets NEMA & IEC Standards: The DR motor meets and exceeds international energy standards and comes in two efficiency levels: DRE High Efficiency (IE2), and DRP Premium Efficiency (IE3), which meets EISA 2007 and NR Can Energy efficient standard (CSA C390). The DR motor meets the specifications of NEMA MG1-2006 part 31.4.4.2,regarding voltage spikes and IEC Design H standards.

Increased Power: SEW offers more compact copper-rotor variants of the DRE and DRP induction motors in addition to the traditional aluminium-rotor motors-thereby reducing losses in the rotor, and consequently allowing for increased power within one frame size.

Export Friendly: The DR Motor is available in metric formats for international export.

Fail-Safe Brake: DR Motors offers an integrated mechanical fail-safe brake that is applied when a power failure occurs. It is an electromagnetic, spring-loaded brake powered by DC voltage via a rectifier. The brake can also be released mechanically with either an automatic or manual brake release.

Integrated Encoder: The new built-in encoder is fully integrated into the motor, making it more compact and less expensive.

The encoder is installed between the end shield and the fan and is connected at the terminal box, so it can be easily retrofitted.

Versatile Mounting Options: Now offering new mounting capabilities. The motor can be foot-mounted and/or flange-mounted with numerous through-hole or tapped-hole configurations. A NEMA C flange is also available.

Three Brake Sizes: As a cost saving feature DR Motors are available with a choice of up to three different brake sizes per motor size.

Washdown Resistant: Rated up to IP66, the DR series can be built to withstand the rigours of harsh washdown environments. They can be also supplied with a forced cooling option.

SEW-Eurodrives’ DR Series of AC motors have been engineered from the ground up to meet the motor demands of the 21st century for continuous or long-running drive applications: like high efficiency performance that complies with international standards; a compact footprint that saves space; a modular design that features a detachable foot design to provide the same excellent braking performance but now in a stand-alone brakemotor configuration; and a simple, built-in encoder that can be easily retrofitted. What’s more, these versatile motors are integratable into SEW gearmotors, used as stand-alone motors or into decentralized control architectures.

Toronto (905) 791-1553

SW1245 NEW-DR 24-PLT04.indd 24MotorAD_Plant.indd 1

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Driving the world

www.sew-eurodrive.ca

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