JULY/AUGUST 2018 | WWW.PLANT.CA | $12
WHAT YOU’RE
WORTH 2018 EMC-PLANT salary survey shows increases tracking inflation
Reduce your facility’s utility bill Kaneshii Vinyl Press taps the LP renaissance Trade war: there are ways to mitigate the risk How Cameco reduced its maintenance costs Engineer logistics for efficiency and savings DAILY MANUFACTURING NEWS www.plant.ca
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The Secret To Keeping Electronics Cool! DON’T DO THIS! NEMA 12 Cabinet Coolers The NEMA 12 Cabinet Coolers for large heat loads up to 5,600 Btu/hr. are ideal for PLCs, line control cabinets, CCTV cameras, modular control centers, etc. • Measures 8" (203mm) high • Mounts top, side or bottom • Enclosure remains dust-tight and oil-tight
NEMA 4 and 4X Cabinet Coolers NEMA 4 and 4X Cabinet Coolers for large heat loads up to 5,600 Btu/hr. They are ideal for PLCs and modular controls. • Enclosure remains dust-tight, oil-tight and splash resistant • Suitable for wet locations where coolant spray or hose down can occur
Type 316 Stainless Steel Cabinet Coolers Type 316 Stainless Steel Cabinet Coolers for NEMA 4X applications are available for heat loads up to 5,600 Btu/hr. • Resists harsh environments not suitable for Type 303/304 • Ideal for food and chemical processing, pharmaceutical, foundries, heat treating and other corrosive environments
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It is an OSHA violation that presents a shock hazard to personnel. The fan blows hot, humid, dirty air at the electronics.
Look Familiar? When hot weather causes the electronics inside a control cabinet to fail, there is a panic to get the machinery up and running again. The operator might choose to simply open the panel door and aim a fan at the circuit boards. In reality, the fan ends up blowing a lot of hot, humid, dirty air at the electronics and the cooling effect is minimal. If the machinery starts functioning again, the likelihood of repeated failure is great since the environment is still hot (and threatens permanent damage to the circuit boards). Worse yet, that open panel door is an OSHA violation that presents a shock hazard to personnel.
The Real Solution! Stop electronic downtime with an EXAIR Cabinet Cooler® System! The complete line of low cost Cabinet Cooler Systems are in stock and can ship now. They mount in minutes through an ordinary electrical knockout and have no moving parts to wear out. Thermostat control to minimize compressed air use is available for all models. All Cabinet Coolers are UL Listed to US and Canadian safety standards.
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High Temperature Cabinet Coolers for NEMA 12, 4 and 4X applications are available for heat loads in many capacities up to 5,600 Btu/hr.
• Measures 5" (127mm) high • Mounts top, side or bottom • Enclosure remains dust-tight and oil-tight
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“It took us three days to get a replacement computer cabinet and we didn’t want to risk another heat failure. Fans weren’t an option since they would just blow around a lot of hot air. Freon-type air conditioners like those on some of our other machines were a constant maintenance project of their own. We purchased EXAIR’s Model 4330 NEMA 12 Cabinet Cooler Jeff Hauck, Lasercraft Inc. Cincinnati OH System since it was easy to install and requires no maintenance.”
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Refrigerant panel air conditioners cause condensation and moisture. When condensation is present, electrical components can begin to erode, resulting in severe damage.
A bad choice could cost you thousands!
The mini NEMA 12, 4 and 4X Cabinet Coolers for small heat loads up to 550 Btu/hr. are ideal for control panels, relay boxes, laser housings, electronic scales.
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BE AWARE OF CONDENSATION!
NHP Cabinet Coolers keep a slight positive pressure on the enclosure to keep dirt from entering through small holes or conduits. For use in nonhazardous locations. • Uses only 1 SCFM in purge mode • For heat loads up to 5,600 Btu/hr. • NEMA 12, 4 and 4X
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@exair
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CONTENTS
July/August 2018 Vol. 77, No. 05
FEATURES
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25 COLLABORATION Humber College gets smarter about manufacturing. 26 INDUSTRY 4.0 New technologies drive manufacturing into the future.
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27 PEMAC PROFILE How Brad Owen’s team reduced maintenance costs at Cameco.
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29 CCOHS SAFETY TIPS Protect workers from overheating. H&S INDEX Ontario manufacturing leads in health and safety culture. 30 AUTOMATION CenterLine adds to its patent profile. 31 RECORD TECH PEI’s Kaneshii Vinyl Press is finding its groove.
12 COMPENSATION
The 2018 EMC-PLANT Manufacturing Salary Survey shows executive pay mostly tracking inflation.
33 COMPETITIVENESS US has the edge over Canada. CONFIDENCE SMEs are spooked by Trump’s trade turmoil.
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DEPARTMENTS
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20 EXPORTS Despite all the trade turmoil, there are ways to mitigate the risks.
21 TRAINING Making change stick: build a relationship with your team.
24 THINK LEAN Engineer your logistics to ship more efficiently.
25 PLANNING How to achieve maintenance efficiency with alignment.
4 Editorial 6 News Bulletins 8 Careers 10 PLANT Online 11 Economy PLANT Pulse 35 Tech Centre Feature: Cutting plant electricity costs. Supply Lines 36 Leading Edge: Innovative ideas for plants 38 Products and Equipment 41 Plantware Events 42 Postscript
COVER IMAGE: FOTOLIA
xair
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EDITORIAL
Canada needs tax reform, not tinkering
T
he Trudeau government has established a liking for spending. Having promised deficits of no more than $10 billion a year during the 2015 election and a return to balance by 2019, the Liberals are tracking a $19.4 billion deficit this year, $15.1 billion for next year and just under $10 billion by 2022-2023. So it’s not surprising finance minister Bill Morneau blanches and goes into evasive manoeuvres when anyone suggests there’s an urgent need for tax reform, as in lower and simplified, to counter moves made by the US. Once upon a time Canada had a corporate tax advantage, which was an inducement for direct foreign investment while keeping home-team manufacturers somewhat content, but the advantage went south. Now the top US rate is 21%, dropping from 35% (federal and state), compared to Canada’s 26.5%. In January, when Prime Minister Justin Trudeau was illuminating corporate executives at the World Economic Forum with some of his sunshine views about putting workers ahead of profits, he declared Canada wouldn’t be slashing taxes or regulatory red tape to compete with the massive Trump tax cuts. He’ll have some trouble with that. Of the 34 Organisation for Economic Co-operation and Development countries, the US falls from third highest marginal effective tax rate on investment (now 18.8%) to the 14th highest placing it below Canada (12th) with a 20.3% rate. Since Trudeau’s World Economic Forum performance, Canadian business leaders and others have been vocal about the need to address this loss of advantage. An Ernst & Young report notes US personal and business tax changes affect the relative prices of labour, capital and returns on business investment. EY warns of an inevitable impact on tax planning that will see many businesses look at redirecting investment to other jurisdictions. Companies will also have to rethink financing structures, including whether to put more cash into the US for business expansion or other purposes. Adding to this pressure are US protectionist policies. The consulting firm says they make cross-border trade in business inputs and outputs more difficult, putting supply chain relationships under scrutiny while raising the possibility of moving production into the protected US market. The exodus is already underway, according to RBC president and CEO Dave McKay, notably in energy and clean-technology, which could lead to a loss of skilled workers. Canadian Manufacturers & Exporters also notes foreign direct investment in new manufacturing has declined 40% over the past decade, as investment ramps up in the US. Morneau is talking with businesses to address the competitiveness issue. Lucky for him, there is plenty of advice available, including three sensible recommendations from CME: • Immediately lower the corporate income tax rate to 20%, splitting the reduction evenly with the provinces. • Match accelerated capital cost allowance provisions in the US, giving businesses an immediate 100% tax write-off on qualifying capital asset purchases. • Appoint a Royal Commission on Taxation chaired and staffed by tax and economic policy experts to review the tax system. Task the Commission with making wholesale reforms that modernize and simplify the tax code. Several other countries are adjusting corporate tax rates, and the IMF expects an overall reduction in the neighbourhood of four points, says Jack Mintz, a tax expert and president’s fellow at the University of Calgary’s School of Public Policy. He’s calling for comprehensive tax policy change. Morneau’s fall economic statement is coming up. Hope he gets the message.
Associate Publisher Jeff Brownlee 416-277-8428 jbrownlee@annexbusinessmedia.com Editor Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca Art Director Andrea M. Smith National Account Manager Ilana Fawcett 416-510-5202 ifawcett@plant.ca Account Coordinator Debbie Smith 416-442-5600 ext 3221 dsmith@annexbusinessmedia.com Annex Business Media Vice President/Executive Publisher Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com President & CEO Mike Fredericks Circulation Manager Beata Olechnowicz 416-442-5600 ext. 3543 bolechnowicz@annexbusinessmedia.com Subscription Price Canada $74.50 per year, US $151.50 (US) per year, Foregin $171.00 (US) per year. Single Copy Canada $12.00. Add applicable taxes to all rates. Combined, expanded or premium issues, which count as two subscription issues. Mailing Address Annex Business Media 111 Gordon Baker Road, Suite 400 Toronto, ON M2H 3R1 Circulation Bona Lao 416-442-5600 ext. 3552 blao@annexbusinessmedia.com Fax: 416-510-6875 or 416-442-2191
Joe Terrett, Editor Comments? E-mail jterrett@plant.ca.
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NEWS BULLETINS Novacap, a Canadian private equity firm, is acquiring an interest in Noble Foods Nutrition Inc., a manufacturer of nutrition and energy bars in Pointe-Claire, Que. One hundred employee positions and management will be maintained. Novacap plans to expand into new markets. JMP Engineering has a newish name to show its broader scope: JMP Solutions, the London, Ont. industrial automation company, covers six core application areas: process automation; control system integration; information systems; automation and robotic systems; automated guided vehicles; and networking and security. North West Rubber Ltd., a manufacturer and distributor of recycled rubber flooring products based in Abbotsford, BC, is opening a mat plant in Houston next year. President and CEO Leighton Friesen said the factory will be closer to its customer base in the south-central US. The company also operates plants in Brantford, Ont. and Beijing. The Business Development Bank of Canada (BDC) and Export Development Canada (EDC) are partnering to provide Canadian technology businesses with $50 million in new financing over two years. Tech firms engaging in international business can access working capital loans of up to $1 million. Visit www.edc.ca Kruger Products LP, a manufacturer of tissue products in Mississauga, Ont., has been named one of Corporate Knights’ 2018 Best 50 Corporate Citizens in Canada. The annual ranking of sustainability performance recognizes Kruger Products’ investment in environmental stewardship. Invictus MD Strategies Corp. has signed a non-binding LOI to sell dried cannabis to an unidentified German importer and distributor of medical cannabis. The company will initially commit to selling 1,000 kilograms of dried cannabis flower annually for $6.50 per gram. Invictus has two production facilities in Alberta and BC, and owns 50% of AB Laboratories Inc. in Hamilton.
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Electra Meccanica goes SOLO First of its single-seater EVs heads into production
The Electra Meccanica crew with the first SOLO.
PHOTO: ELECTRA
VANCOUVER — Electra Meccanica Vehicles Corp.’s first single-passenger, an all electric SOLO has rolled off the assembly line in Vancouver. The designer and manufacturer of electric vehicles said the SOLO will undergo consumer testing and verification, followed by manufacturing in September. The company’s goal is 5,000 cars by September 2019. The EV is designed as a vehicle for North American drivers who commute to work alone. It’s priced at US$15,500 and features many of the comforts found in a regular sedan such as air conditioning, heated seats, backup camera and Bluetooth radio. Electra Meccanica sources parts and components from India and China, then assembles the vehicles at its Vancouver plant. The automaker also builds the Tofino, a two-seater electric roadster.
Emerson completes Aventics buy ST. LOUIS, Mo. — Emerson has completed its almost $811 million (US$612 million) purchase of Aventics, a global manufacturer of smart pneumatics technologies that power machine and factory automation applications. Emerson, a global technology and engineering company based in St. Louis, said the acquisition will significantly expand its reach in the growing $13 billion fluid automation market and solidify its automation presence in Europe. Aventics’ pneumatic devices incorporate sensing and monitoring capabilities to improve system uptime and performance, enhance safety and optimize energy use. With central offices in Laatzen, Germany, Aventics has approximately 2,100 employees globally with five manufacturing locations.
TM4 in joint venture with Dana BOUCHERVILLE, Que. — Hydro-Québec’s TM4 Inc. subsidiary will supply Dana Inc. electric motors, power inverters, and control systems as part of a joint venture. Dana, an auto parts supplier based in Maumee, Ohio, will become a majority shareholder of TM4, paying $165 million. Hydro-Québec will maintain a 45% interest in the company. TM4 designs and manufactures motors, power inverters and control systems for electric vehicles in Boucherville, Que. Its products are seen by Dana as complementary to its electric gearboxes and thermal-management technologies for batteries, motors and inverters. The deal establishes Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets. It also strengthens Dana’s position in China, the world’s fastest-growing market for electric vehicles. TM4 and Prestolite Electric Beijing Ltd. have a 50-50 joint venture in China, called Prestolite E-Propulsion Systems Ltd.
Nova Bus gets largest NA bus order 497 LFS HEVs for Quebec transit authorities
Option for up to 1,028 more buses.
PHOTO: NOVA BUSES
SAINT-EUSTACHE, Que. — Nova Bus has won a five-year contract for 497 40-foot LFS HEV hybrid buses that will go to Quebec’s transit authorities in nine cities. The bus manufacturer based in Saint-Eustache, Que. didn’t disclose the value of the contract, but described it as the largest in its history with an option for up to 1,028 additional vehicles. Buses will be assembled at its Saint-Eustache plant with the chassis coming from its Saint-François-du-Lac facility.
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Terrapure acquires Envirosystems Broadens the Burlington company’s resource recovery solutions
Uniboard invests $38.5M in upgrade
BURLINGTON, Ont. — Terrapure Environmental Ltd. is expanding its industrial services capabilities with the acquisition of a Hamilton firm. The Burlington, Ont. company has purchased the Canadian industrial services and waste management operations of Envirosystems Inc., a provider of industrial and waste management services to a broad range of sectors. They include petrochemical and refineries, marine, mining, municipal, and pulp and paper. More than 70 facilities from coast to coast. PHOTO: TERRAPURE Terms of the deal were not disclosed. as its US specialty industrial services businessEnvirosystems has more than 1,000 employees es, rebranded as Maviro. and 25 locations across Canada. Maviro is headquartered in Houston, and has Its former ownership group is retaining Envi13 locations across the US. rosystems’ catalyst changeout business as well
LAVAL, Que. — Uniboard is investing $38.5 million in its Val-d’Or, Que. wood products plant. It’s the second phase of a major upgrade project to build a worldclass particleboard and thermally fused laminate mill. The company, based in Laval, Que., said this new round of modernization will focus on screening, sifting, milling and intermediary storage equipment, which will lay the foundation for upgrading the press and finishing lines. The project’s new dry preparation capabilities will substantially improve fibre processing efficiency. A new building will feature state-ofthe-art protection safety systems for its employees.
ACOA investment helps C-Therm extend sensor reach FREDERICTON, NB — C-Therm Technologies Ltd. will expand export markets for its non-destructive thermal sensor technology with some help from the Atlantic Canada Opportunities Agency (ACOA). The Fredericton, NB company will apply a $217,500 investment from ACOA’s business development program to expand its international marketing capacity and grow export markets. A second investment of $50,000 will support the hiring of a laboratory director. C-Therm’s technology is used in research and development, production and quality control applications.
Intertape acquiring Polyair for $146M MONTREAL — Intertape Polymer Group Inc. is acquiring Polyair Inter Pack Inc., a manufacturer of protective packaging, for $146 million. Polyair, a private company with dual headquarters in Toronto and Chicago, operates seven plants and a distribution centre in North America. It makes bubble cushioning, foam, mailers and air pillow systems. Intertape, a Montreal-based manufacturer of tapes, films and other products used with packaging, said the companies’ combined product bundle will provide “significant cross-selling opportunities” through similar distribution and end-user customer channels. Both focus on e-commerce to drive growth. The deal is to close in the third quarter, bringing the number of Intertape’s completed strategic transactions to six in the past four years.
Texas solar project powers Innergex
Darlington Nuclear a new source for medical isotopes Mo-99 used for skeletal, brain and organ imaging TORONTO — Darlington Nuclear will be the first large-scale commercial nuclear power station worldwide to produce molybdenum-99 (Mo-99), a life-saving medical isotope. A collaboration between Canadian Nuclear Partners (CNP), Ontario Power Generation’s (OPG) subsidiary, and a subsidiary of BWX Technologies Inc. will help ensure the world’s long-term supply of this isotope. Mo-99 is used in more than 30 million diagnostic and medical treatments
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Aerial shot of Darlington Nuclear.
each year. Mo-99 is the parent isotope of technetium-99 (Tc-99m), which is used for skeletal, brain and organ imaging to detect and diagnose harmful diseases. Canada’s National Research Universal reactor ceased regular production of Mo-99 in 2016 leaving North America without
PHOTO: OPG
a large-scale domestic supply. Hospitals and health providers had to import it from Europe, Africa and Australia. BWXT, a supplier of nuclear components and fuel based in Lynchburg, Va., will process the targets from Darlington to produce Tc-99m generators. Production is to start by the end of 2019.
LONGUEUIL, Que. — Innergex Renewable Energy Inc. has acquired a large-scale solar installation in Winkler County, Tex. The Longueuil, Que.-based operator of renewable energy projects says the Phoebe photovoltaic solar project purchased from Longroad Energy Partners LLC consists of First Solar Series 6 thin film modules. The panel manufacturer will operate them under a five-year operation and maintenance contract. Installed capacity will be 250 MWAC/315 MW-DC with average annual power generation reaching 738,000 MWh, enough to power about 53,000 Texas households. The facility will sell all of its output to the ERCOT power grid at a fixed price under a 12-year power purchase agreement with Shell Energy North America.
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NEWS CAREERS David Mueller has been appointed vice-president and general counsel at CenterLine (Windsor) Ltd. Previously he served on the executive team at Valiant TMS, a global tooling David Mueller and automation company. CenterLine, based in Windsor, Ont., makes systems for automated processes. Brent Collver has resigned his role as president of Comtek Advanced Structures Ltd., Avcorp. Corp.’s composite manufacturing and repair subsidiary in Burlington, Ont. Robin Lovell, director of customer programs, will take over as president. Avcorp designs and builds major airframe structures. Big Rock Brewery Inc., a craft brewer based in Calgary, has appointed Don Sewell CFO. Previously he was the vice-president of investment banking at National Bank Financial Inc. and the corporate finance analyst for Peters & Co Ltd. Paul Howden, new vice-president of sales, comes from Coca-Cola where he was vice-president of Western Canada. Factora Solutions, a supplier of smart manufacturing solutions based in Trois-Rivières, Que., has appointed Brent Seely CIO and Raj Jakhete vice-president, professional services. Seely is a founding member of the Factora team. Jakhete joined the company last year working in service expansion, customer growth and sales and marketing. Glenn Durnford is retiring from the Excellence in Manufacturing Consortium (EMC), a not-for-profit based in Owen Sound, Ont. that supports manufacturers. Susan Elliot, an operational management specialist, takes over his role as a field advisor. Bren de Leeuw will lead EMC’s Learning Centre activities and continue to handle food and beverage initiatives. E-mail appointments, promotions, retirements and other career changes to jterrett@plant.ca.
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Superior Cabinets acquired by Winnipeg’s Buller family Manufacturer to expand in Canada, US
Building kitchen cabinetry.
PHOTO: SUPERIOR CABINETS
SASKATOON, Sask. — Superior Cabinets, a kitchen cabinet manufacturer has been sold to the former owners of Norcraft Companies Inc. Founded in 1980 by Charles and Linda Larre, Superior Cabinets, based in Saskatoon, sells through its retail stores in Saskatoon, Regina, Calgary and Edmonton, and through a network of 75 dealers. The new owners are the Buller family of Winnipeg. In 2003 Mark Buller, with his family and senior management, acquired Norcraft Cabinets. They took Norcraft Companies Inc. public in 2013, built it up into a $376 million company and sold it to Fortune Brands Home & Security Inc. in 2015, owners of MasterBrand Cabinets. The Buller family has a long legacy in the kitchen cabinet industry. Mark’s father, Herb, and several partners founded Kitchen Craft in 1971, which was acquired by Fortune Brands in 2002. Superior Cabinets will continue to operate, and plans to expand into new markets in Canada and the US.
Audi extends HyMotion program VANCOUVER — Ballard Power Systems has signed a 3.5-year extension worth between $80 million and $130 million to its current Technology Solutions contract with AUDI AG, part of the Volkswagen Group. The deal extends Ballard’s HyMotion program to August 2022. The program will support Audi through its small series production launch. HyMotion develops automotive fuel-cell stacks and provides system design support for use in Audi’s
demonstration car program. Ballard, a developer of hydrogen fuel cells based in Vancouver, said its engineers are leading critical areas of design – including the membrane electrode assembly (MEA), plate and stack components – along with some of the testing and integration work. Some of the concept cars in the HyMotion program include the Golf SportWagen HyMotion, Passat HyMotion and Audi A7 Sportback h-tron quattro.
New Flyer providing 24 BRTs to Houston ST. CLOUD, Minn. — The Metropolitan Transit Authority in Harris County, Tex. has awarded New Flyer of America Inc. a contract for 14 heavy-duty, 60-foot Xcelsior clean-diesel transit buses with options for 10 additional buses. New Flyer is the US subsidiary of NFI Group Inc., the Winnipeg-based transit bus and motor coach manufacturer. It said the Xcelsiors have been designed for a special Bus Rapid Transit system that improves route capacity and schedule reliability as a part of the Houston Uptown Dedicated Bus Lanes Project. The contract brings the total NFI Group fleet size in Houston to just less than 1,400. No financial information related to this deal was disclosed. New Flyer Industries Canada ULC, NFI’s Canadian subsidiary, will be supplying 10 of its 40-foot, battery-electric Xcelsior CHARGE buses to the Toronto Transit Commission, with an option for 30 additional buses over the next two years.
CBSA investigates welded pipe dumping OTTAWA — The Canada Border Services Agency (CBSA) is launching an investigation into carbon steel welded pipe from Pakistan, the Philippines, Turkey and Vietnam being sold at unfair prices in Canada. The investigation arises from a complaint filed by Novamerican Steel Inc. in Montreal that alleges price undercutting is costing the Canadian industry sales, reducing profitability, reducing production and use of capacity. The Canadian International Trade Tribunal will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by Sept. 18. CBSA will also investigate and deliver a preliminary decision by Oct. 18. CBSA has announced a retroactive anti-dumping duty on imported steel rebar from Turkey under the Special Import Measures Act (SIMA). On July 18, the CBSA issued $1.8 million assessments against two importations of steel rebar from Turkey that arrived in Canada in 2017.
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NEWS
NRC, Airbus renew research-tech deal Canada designated fifth country for drones, mobility Stewart. FARNBOROUGH, UK— Airbus is a Paris-based The National Research aerospace manufacturer Council of Canada (NRC) that holds a majority stake and Airbus have renewed in Bombardier’s C-Series a framework agreement on aircraft, now identified as research and technology the A220 airliner program. cooperation. The company has been The five-year deal will present in Canada for more cover a wide range of techthan 33 years and employs nical subjects and technol2,000 Canadians. ogies. “This is a logical step Airbus has identified Canada as its “fifth country” for Iain Stewart, NRC president and Grazia Vittadini, chief after the first agreement we research and technology PHOTO: NRCC signed 10 years ago to work technology officer, Airbus. jointly on research and developments in drones technology,” said Grazia Vittadini, Airbus’s chief and urban mobility. technology officer. “Renewing this agreement “With expertise across a wide range of disstrengthens Airbus’s already prominent relationciplines, the NRC is well-positioned to partner ship with the Canadian industry and is all the with Airbus on the transformative technologies more fitting with the recent decision to set up a like advanced manufacturing and autonodedicated Airbus commercial aircraft presence mous mobility that will reshape the aerospace in Mirabel for the A220 airliner program.” industry over the next several years,” said Iain
PLANT ONLINE SOUNDING OFF
What readers have to say about breaking news Have you checked out PLANT’s daily news online? Here are some headlines that have inspired members of the Canadian manufacturing community to chime in. They’re edited, but use the links to see the raw – and for some – longer versions of their remarks plus the stories that inspired their reactions. Stay up-to-date on the developments – domestic and global – that affect Canada’s industrial sectors by watching the news feed at www. plant.ca or reading PLANT’s twice-weekly newsletter (hit Subscribe on the website). Trump blasted for Putin pandering summit, appearing weak http://www.plant.ca/tKbTj I can’t see how anyone with a modicum of intelligence wouldn’t agree with John McCain when he tweeted, “This was the most serious act of treason conducted by a US president in recorded history.” Fishing boats to converge on Nova Scotia harbour to protest (Pulp mill plans to dump effluent daily into Northumberland Strait…) http://www.plant.ca/Ik942
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I thought Canadians were more aware of pollution problems than this. We have endangered species living in the mouth of the St. Lawrence. Surely this stuff can be dumped into vacant mines. After meeting with Ford, Trudeau decries populism in Brampton rally http://www.plant.ca/Ik942 Oh, so Trudeau won’t let populism get in the way of – being popular? Is he applying that to himself? I guess not. I’m thrilled to hear he intends to double down on his nonsense for the next election. Pretty much guar-
antees a loss for the Liberals. Vancouver area laundry microplastics are filtering into ocean: Study http://www.plant.ca/zk7P2 And now maybe Vancouver and Victoria should practise what they preach and stop dumping raw sewage into the ocean. Trump warns Harley Davidson: ‘We won’t forget’ http://www.plant.ca/iCWHn This is how the president of the USA treats one of its prized 100-year-old manufacturers! He should be ashamed of what he said and the people of the USA need to put this idiot in his rightful place, selling real estate or used cars. Battle for the future: Fighting for Ontario’s industrial heartland http://www.plant.ca/JGfVS Good for Ms. Bamford and her
Feds provide $25,000 for rail emissions reduction project EDMONTON — The federal government is investing $25,000 in a University of Alberta project dedicated to reducing greenhouse gas emissions from rail transportation. The project aims to develop a computerized method that optimizes the loading of trains to reduce wind drag. Canadian National Railway estimates that each aerodynamic gap greater than 10 feet between containers increases a train’s fuel consumption by up to 1%. Funding is being provided through the Clean Rail Academic Grant Program, which supports academic research programs that develop new technologies and practices aimed at reducing air emissions from the rail sector. CanadianManufacturing.com
business coalition. We need a lot more people like them. She is correct, politicians have no clue about business. Our prime minister is a prime example. A part-time teacher. Not only that, he was born with a golden spoon in his mouth. What does he know about business? Hopefully these people can teach him. Keep fighting for the rest of us Canadians. Canada can end dairy trade dispute with US by ending pricing irritant: Saputo http://www.plant.ca/fwFkw The Washington Post reported that the farm bill before Congress amounts to $956 billion over the next 10 years. The EU supports its farmers in a massive way, Britain alone gets 3 billion pounds. I am told that Japan produces so much subsidized rice that it’s dumped in the ocean. Let’s face it, all countries subsidize their farmers in exchange for votes and Canada has a supply management system. For the record, Wisconsin has more dairy cows than all of Canada and some dairy farmers openly wish they had a supply support system that paid $0.76 per litre instead of the current $0.27 per litre.
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ECONOMY
Auto tariff turmoil TD Economics details the ‘what if’ impact
A
merica’s national security may be in peril again, this time from auto imports and the US Commerce Department is looking at slapping tariffs on vehicles and parts (echoing steel and aluminum) at President Donald Trump’s behest. The impact on Canada would be significant, says a TD Economics report. Senior economist Brian DePratto details the “what ifs” (see https:// economics.td.com for the complete report): • 2019 growth would be reduced by half a percentage point as the economy stagnates for two quarters. • Business investment will take the biggest hit, resulting in permanent ‘scarring’ that will reduce Canada’s long-run economic capacity. • Ontario’s growth would be reduced by as much as two percentage points with 20% of manufacturing jobs at risk. • Supply chain and income shocks could also magnify impacts. Scale of the impact will depend on the tariffs. The report is assuming a 10% tariff on motor vehicle parts and components, and 25% on vehicles. This adds up to a weighted tariff rate of 21% on autos and parts exported to the US from Canada, equivalent to a 2.9% tariff on overall exports. That’s about $74 billion dollars of exports impacted by tariffs (nearly 4% of Canadian GDP), with spillover likely to hit the roughly $45 billion of auto and auto part imports. But the analysis doesn’t take into account probable support from both levels of government, which would lessen the impact of tariffs. The US Commerce Department must report its findings by February or earlier and Trump has 90 days to make a decision. Canada’s inevitable retaliation, based on its response to steel and aluminum tariffs, would be a 5.4% weighted tariff on imports, effective July 1, 2019. Despite the ongoing trade drama, TD expects NAFTA issues to be resolved, but the importance of the auto industry to Canada’s economy is certainly adding to the tension.
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MANUFACTURING CAPACITY UTILIZATION RISES IN MAY Manufacturing sales increased 1.4% to $57.1 billion in May, following a 1.1% decline in April, Statistics Canada reports. Sales rose in 14 of 21 industries, representing 64% of total manufacturing sales. Unadjusted capacity utilization increased from 80.6% in April to 81.9%. The machinery industry saw its rate rise from 70.3% to 75.9%, the result of higher production and sales. Fabricated metal products also rose while petroleum and coal reported a large decline. The unadjusted rate decreased from 73.5% to 64.9%, reflecting the extended shutdowns at several refineries.
% 85 84 83 82 81 80 79 78 77 Jan.
May 2018
2017
Source: Statistics Canada
7,800
Job vacancies in manufacturing, up 23.2% in Q1, according to Statistics Canada. The vacancy rate increased to 2.7% compared to 2.2% a year earlier. Transportation equipment, fabricated metal products and food manufacturing showed notable increases.
61.9 The confidence level of small manufacturers in July, down one point from June, according to the Canadian Federation of Independent Business.
68% 7%
Annual increase in demand for cyber talent in Canada. A report from Deloitte and the Toronto Financial Services Alliance shows organizations will need to fill approximately 8,000 cybersecurity roles between 2016 and 2021.
Percentage of senior executives who view Canada as a less competitive place to invest and do business than the US, compared to a year ago, according to a CPA Canada survey.
76.5
Trade confidence level of Canadian exporters about their near-term outlook, up three index points from six months ago, despite uncertainty created by Trump policies and growing international trade turmoil. Export Development Canada’s midyear trade confidence index, which surveyed 1,000 exporters, shows 73% indicate sales will increase over six months. That’s a major jump from 56% in the previous survey. And 46% report business has increased to the US over the last six months, up from 36% in the previous survey. But more companies are registering a negative impact from NAFTA talks (28% compared to 23% six months ago). Six per cent of firms are delaying investment.
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SALARY CAUTION I CONTINUES
The 2018 EMC-PLANT Manufacturing Salary Survey shows raises are holding close to inflation. BY JOE TERRETT, EDITOR
EXECUTIVE AND MANAGEMENT PAY INCREASES AVERAGE 3.8%
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f you were hoping business conditions would be a little more certain than they were in 2017, you are likely disappointed, and stunned by recent developments. Last year was a good one. GDP was up 3%, representing what Statistics Canada described as the fastest pace of growth since 2011, and way ahead of 2016 (1.4%). But the international trade environment has taken a harder right into uncertainty, thanks to almost daily turmoil courtesy of you-know-who. Indeed, the Donald J. Trump crazy train is operating without any brakes, which is making it difficult for manufacturers fearful of a crash to plan ahead and make investments in their businesses. Since last year, NAFTA negotiations have been plagued by US intransigence on key items with very little tangible progress and talks continue. Or not. Who knows what will happen or when? Meanwhile, Trump has slapped tariffs of 25% on imported steel and 10% on aluminum for reasons of “national security”, prompting retaliation and barely contained fury among America’s “allies”. And at this writing, automotive imports are in the US Commerce Department’s crosshairs, which is especially worrying for Canada. Such a move would have a devastating impact, potentially breaking apart supply chains and even drawing us into a recession (see Smoot-Hawley and the Great Depression). Canadian companies are typically cautious but despite all the drama, they’re confident, and this bears repeating – they’re not prone to panic. This reserve appears to play out in management compensation. When asked by the 2018 EMC-PLANT Manufac-
July/August 2018
2018-08-03 12:57 PM
turing Salary Survey about pay, representatives from executive and manager ranks, for the most part, reported increases that track close to inflation. This national benchmark study was conducted through May and June by PLANT Magazine, an Annex Business Media publication, and the Excellence in Manufacturing Consortium (EMC), a not-for-profit organization based in Owen Sound, Ont.
From a total of 1,290 responses, 729 answered all of the threeyear salary questions, sharing personal information about what they are paid, bonuses, and how their businesses are faring. Most of the respondents (80%) come from small and medium-sized enterprises. Each year’s sample is different for a variety of reasons (employment churn, variances in bonuses), so results don’t always
turing leaders. They’re overwhelmingly male (89%), 56% are between 46 and 65 years of age; and 80% have management roles rather than ownership or partnership positions. The typical manufacturer has been in the business 23 years, 14 of those at his/her current company and 11 in the same job. Breaking down age in more detail, 33% are 46 to 55, 23% are 56 to 65 and 4% are older. Eigh-
align with the previous year’s group, but the responses do provide a general measure that will give you an idea how your pay compares. This year’s sample shows average remuneration across manufacturing (all categories) hasn’t moved much. It rose 3.8% to $105,500 (compared to 0.8% from 2016 to 2017). Survey results also provide a picture of the typical manufac-
Demographics PROVINCE
EDUCATION
Location, average salary, percentage of replies
802 replies
87%
729 replies
Working full-time in manufacturing
80%
Respondents employed by SMEs
68%
Hig
0% % 2
Tra d
ity degree 41 % ivers Un o l p m i d a e 2 3% lleg Co d l a i p c i l oma hn tec 2 e/ l or less o o h c 1 hs P 3 E % G CE
Companies that are not unionized
Newfoundland & Labrador
$47,000 <1%
British Columbia
$1M ➔ <$5M $5M ➔ <$10M $10M ➔ <$30M $30M ➔ <$50M $50M ➔ <$100M $100M ➔ <$250M $250M ➔ <$500M $500M ➔ <$1B $1B plus
Alberta
42%
2%
$ 105,500
Ontario
$114,942
$130,143
Quebec
Prince Edward Island
$97,618 12%
$87,575 <1%
National average
34%
35%
11%
7%
9%
4%
< 50
500 ➔
1,000 ➔
5,000+
4,999
$88,209 3%
$87,750 3%
AGE
729 replies
9%
4%
8%
80%
Controlling ownership stake
Equal partnership & management role
Minority ownership and management role
Have a management role in company only
< 25 (2)
<1%
7%
900 replies
250 ➔
Nova Scotia
New Brunswick
ROLE IN THE COMPANY
50 ➔
999
3%
Saskatchewan
794 replies
499
$109,306
9%
20% 13% 23% 10% 9% 8% 4% 5% 8%
EMPLOYEES
249
Manitoba
$110,683
> 65 (42)
23%
9%
33%
$99,149
731 replies
18%
REVENUE
4%
26 ➔ 35 (57) 36 ➔ 45 (149)
56 ➔ 65 (231) 46 ➔ 55 (322)
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PLANT 13
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Salary Comparisons JOB TITLE 729 replies
CEO/President Vice-president Director Owner/partner Plant Manager Materials Manager* Maintenance Manager Safety manager Administrative Management Plant Engineering Technician/Technologist Production/Operations Manager Design Engineering Quality Assurance Manager Purchasing/Supply Manager Logistics Manager*
2018
2017
2016
Hours/ Week
%
$174,404 $144,140 $127,430 $124,010 $119,897 $111,600 $100,181 $94,733 $94,244 $94,144 $91,162 $90,269 $86,332 $86,124 $70,951 $40,000
$174,065 $141,813 $125,260 $108,379 $117,913 $107,500 $99,933 $87,473 $86,854 $90,971 $89,026 $91,684 $86,798 $85,439 $67,781 $33,750
$169,371 $135,271 $119,211 $105,010 $113,260 $101,000 $98,670 $94,978 $81,340 $115,257 $88,190 $94,607 $85,096 $83,447 $67,001 $31,000
53 51 50 45 50 53 47 46 44 45 43 46 42 45 44 44
4% 5% 6% 7% 12% 1% 11% 3% 8% 4% 8% 13% 9% 4% 5% 1%
Two per cent or less represents a small sample and should be considered with caution.
GENDER 11%
729 replies
2018
729 replies
Aerospace product and parts Beverage and tobacco product Chemical Computer and electronic product Durable goods industries Electrical equipment, appliance & component Environmental Fabricated metal product Food manufacturing Furniture and related product Leather and allied product Life Sciences Machinery Miscellaneous manufacturing Motor vehicle Motor vehicle body and trailer Motor vehicle parts Non-durable goods industries Non-metallic mineral product Paper manufacturing Petroleum and coal product Plastics and rubber products Primary metal Printing and related support activities Ship and boat building Textile product mills Transportation equipment Wood product
Confident but cautious
$111,045
$83,730 INDUSTRY
89%
2018 $89,647 $142,333 $146,850 $104,118 $125,680 $116,491 $90,178 $115,977 $98,050 $124,500 $100,000 $113,500 $104,083 $88,898 $113,375 $71,000 $114,941 $80,125 $138,500 $108,493 $136,350 $99,581 $130,359 $91,042 $76,333 $166,667 $129,300 $113,881
2017 $86,427 $153,000 $145,517 $95,400 $114,100 $118,382 $89,586 $101,204 $95,850 $115,800 $100,000 $112,158 $101,518 $87,495 $109,000 $62,000 $117,038 $79,200 $144,800 $106,669 $127,450 $98,211 $136,797 $84,595 $56,000 $202,000 $128,167 $99,783
% 2016 replies $80,614 $152,667 $141,350 $97,000 $109,000 $107,317 $92,683 $98,609 $90,632 $113,200 NA $107,367 $102,345 $84,954 $106,250 $61,000 $112,423 $40,000 $143,600 $102,633 $137,450 $97,360 $127,201 $94,661 $55,000 $201,500 $137,200 $95,385
teen per cent are in the 36 to 45 group and just 7% are 26 to 35. Under 25s account for less than 1% of the total. Most respondents (59%) report no change to their employment situation, but 20% say more responsibilities have been added to their workload because of reduced staff, which is consistent with previous surveys. Most (35%) have a university degree that’s likely a bachelor of arts (64%) and they put in a 46.5-hour work week. Aside from those who have a management role only in their companies, 9% have a controlling ownership stake, 4% are equal partners and 8% are minority owners. Predictably, top executives and senior plant floor leaders put in the most time. CEOs and presidents average 53 hours per week, vice-presidents 51 with directors and plant managers following at 50 hours. Owners and partners register 45 hours.
3% 1% 3% 3% 1% 4% 2% 12% 8% 1% <1% 2% 6% 8% 1% <1% 3% <1% 1% 3% 2% 7% 3% 4% <1% <1% 1% 5%
Respondents are a little less optimistic about earning higher revenues this year (63% see improvement over 2017 revenues compared to 62% over 2016), but just 14% are looking at a decrease from 2017 levels. Forty-nine per cent intend to invest in new production equipment and processes over the next five years, 57% say they will hire new employees and 29% say they will add new lines of business. How are manufacturers
dealing with the turmoil and uncertainty? Most are trying not to get hung up on the emotional side of it all,” says Al Diggins, chairman of the Excellence in Manufacturing Consortium (EMC), who keeps his finger on the pulse of the membership. “They’re sticking to their business and doing the things they do so well: driving costs out and making sure they get the right people.” One thing that jumped out from the survey results – combined with his observations of the membership – is that manufacturers are very optimistic, and they’re focusing on controlling the controllable, says Shawn Casemore, EMC’s new president. “Manufacturers have become a very resilient group. If the political climate changed for the better tomorrow, there would be some other challenge to face. They’re used to dealing with this kind of turmoil.” Controlling the controllable involves costs and companies are doing so on the wage side by being careful with increases, despite the pressing need for qualified people and the pressure that puts on compensation. This is evident in Statistics Canada reports and EMC’s ManufacturingGPS, which provides real-time labour market information. “What we saw from ManufacturingGPS is that wages are tracking to inflation and that’s basically it,” says Scott McNeil-Smith, EMC’s national
2018 BONUSES AND INCENTIVES 729 respondents
0
$89,111 44%
1% ➔ 3%
4% ➔ 5%
$104,957 8%
$97,277 8%
11% ➔ 15%
$126,718 6%
16% ➔ 20%
$123,519 5%
6% ➔ 10%
$110,757 15% 20+%
$180,188 8%
No response from 17%. Two per cent or less represents a small sample and should be considered with caution.
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July/August 2018
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PRODUCTION WAGES Statistics Canada reports manufacturing’s weekly production worker wage (including overtime) in April as $1,073.93 (annual $55,844.36), a 2% drop from March. The national average for all sectors is $994.68 ($51,723.36). Trading Economics (https://tradingeconomics.com), a global economics research firm based in New York, tracks Statistics Canada and other manufacturing data. It reports Canadian hourly wages decreased to $25.20 in April from $25.74 in March. The corresponding average US wage is US$21.40 ($28.15). Hourly manufacturing pay has averaged $20.05 from 1991 until 2018, reaching a high of $26.30 in April 2017 and a record low of $14.96 in January 1991. The forecast for 2020 is $30 hourly.
director, projects and partnerships, and energy programs lead. “Manufacturing is also lagging other sectors.” Referencing the salary survey, he notes management compensation is also mostly keeping up with the cost of living and inflation. CEOs and presidents are on the low end of increases this year at 0.2% compared to 2.8% last year, while owners and partners are taking more from their businesses at 14.4% compared to 3.2% last year. Vice-presidents are up 1.6% compared to a 4.8% increase last year, while plant managers will get a 1.7% raise compared to the 4.1% they received in 2017. Directors are expecting 1.7% following a 5% increase last year. Other management titles show administrative management with an 8.5% increase followed
REVENUE 729 replies
$1M ➔ <$5M $5M ➔ <$10M $10M ➔ <$30M $30M ➔ <$50M $50M ➔ <$100M $100M ➔ <$250M $250M ➔ <$500M $500M ➔ <$1B $1B plus
by safety managers (8.3%), purchasing/supply managers (4.7%), materials managers (3.8%), plant engineers (3.5%) and technicians/technologists (2.3%). On the low end (less than 1%) are quality assurance managers (0.8%) design engineers (-0.5%) and production operations managers (-1.5%). One comment in Salary Feedback (see page 17) got McNeil-Smith’s attention. A respondent reinforced the idea companies were sticking to a “holding to inflation” policy by noting the only way to get beyond that 2% or 3% is to change jobs or employers. He says this and other indicators suggest an emerging “nuance” (rather than a trend). He’s seeing through ManufacturingGPS data and observing what EMC members are doing suggests employers are
2018 2017 2016 % $85,217 $102,858 $110,808 $121,186 $112,924 $127,186 $120,511 $120,205 $120,403
$80,298 $96,886 $99,253 $119,384 $111,300 $127,459 $117,128 $119,105 $123,297
$81,686 $94,366 $96,014 $118,781 $110,961 $122,930 $108,967 $114,843 $119,129
15% 11% 18% 9% 7% 6% 3% 4% 6%
729 replies
University degree College diploma Trade/technical diploma High school or less CEGEP No response from 15%.
YEARS OF EXPERIENCE 729 replies 1 ➔ 4 years 5 ➔ 9 years 10 ➔ 14 years 15 ➔ 19 years 20 ➔ 24 years 25 ➔ 35 years 36+ years
($124,010) and plant managers ($119,897). Logistics managers are at the bottom ($40,000), but the sample size is low. Investing in the business is a priority over the next five years. Fifty-seven per cent will hire new employees, 49% will put money into new production equipment and processes, 29% are adding lines of business and expanding their plants, and 23% are acquiring other companies and lines of business. The survey highlights the usual list of executive concerns, which is topped by skills shortage (51%), cost control (47%), technology upgrades (32%) and capacity utilization (27%). McNeil-Smith notes a significant development in this year’s responses. “For the first time since the survey began (2011) the skills shortage has taken the number one spot ahead of cost control and that’s translating
INDUSTRY AWARENESS How do executives stay up-todate with developments in their industries? Trade/business magazines (61%), their web sites (46%) and e-news channels (44%) are key, as are conferences and trade shows (51%).
2018 2017 2016 % $70,392 $86,876 $102,038 $93,715 $119,026 $112,212 $110,962
$68,233 $83,253 $99,264 $90,470 $103,451 $111,763 $109,237
$65,167 $107,490 $95,943 $87,521 $103,094 $107,557 $107,015
5% 6% 10% 9% 15% 31% 14%
No response from 9%.
No response from 22%.
EDUCATION
looking at more aggressive and creative ways to do so, include applying tactics normally aimed at the management level. “Some are offering signing bonuses to production workers, and that was unheard of five years ago.” Thirty-five per cent of respondents have a university degree, 20% have a college diploma, 17% a trade or technical diploma, 11% a high school education or less and 3% a CEGEP. Higher education is good for income. University grads score the highest wage rate at $117,444, 10.4% ahead of the next best-paid group – college grads – at $105,834. Looking at salaries based on industry, many show modest increases, a few were unchanged while shipbuilding, petro products and fabricated metals showed healthy increases. Textile products, beverage and tobacco, electrical equipment, environmental and non-metallic minerals showed declines from the previous year, although their sample sizes were very low. Owners, senior executives, plant managers and materials managers top the $100,000 annual pay level. CEOs and presidents are the highest earners averaging $174,404, followed by vice-presidents ($144,140), directors ($127,430), owners/partners
2018 2017 2016 % $117,444 $105,834 $102,327 $95,938 $82,100
$114,144 $96,262 $99,666 $93,647 $81,032
$111,438 $95,258 $101,513 $91,273 $74,846
35% 20% 17% 11% 3%
AGE
729 replies Under 25 26 ➔ 35 36 ➔ 45 46 ➔ 55 56 ➔ 65 Over 65
2018 2017 2016 % $66,000 $74,926 $98,539 $114,130 $119,780 $103,526
$58,500 $70,678 $94,983 $110,314 $114,570 $99,176
$55,000 $68,994 $92,080 $107,033 $115,341 $96,594
<1% 7% 18% 33% 23% 4%
No response from 15%. Two per cent or less represents a small sample and should be considered with caution.
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Management Issues WHAT COMPANIES PAY FOR 830 replies
62%
46%
48% Educational courses
Professional certification programs
Membership in professional associations
25% None of these
Attraction, retention
PAY PERKS 856 replies
18%
Performance or other bonus
38%
RSP contributions
37%
17%
Access to private healthcare
Travel expenses
32%
Wellness program
Pension
30%
15%
Training, executive development
Flex hours
29%
No additional benefits to salary
Profit sharing
24%
5%
Stock options
Car/gas allowance
23%
Club memberships
15% 15% 5%
into some of the strategies being applied to attract workers.” Asked about what skills they need most to do their jobs, 56% of senior executives and managers cited management/ supervisory, followed by interpersonal problem solving (48%), industry-specific technical skills and planning (both 46%) and communication (45%). Additional training requirements include interpersonal relationships and management (28%), productivity/continuous improvement and technical skills such as software and programming (both 27%).
Company vehicle
MOST IMPORTANT SKILLS
As important as finding the right people may be, so too is retaining them, which has encouraged employers to recognize the human side of manufacturing. “They’re upping the benefits, making their places attractive so people will want to be there and it looks like they’re doing a pretty good job of holidays and compensation,” Diggins says. “EMC has done more training on the human side and looking after people than we’ve ever done before.” A key retention factor is work-life balance, something
846 replies
56% Management/supervisory 48% Interpersonal/problem solving 46% Planning (forecasting, demand) Industry specific technical skills 46% 45% Communication 43% Analysis Negotiation skills 41% Technical skills (software, programming) 38% 37% Project management Financial (budgeting, accounting) 35% Productivity/continuous improvement (lean etc.) 34% 33% Sales skills
CHANGES NEXT FIVE YEARS
Top choices for more executive development are: people skills – interpersonal relationships, management (28%); technical skills – software, programming (27%); productivity/continuous improvement (27%).
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Casemore is encountering in the field. “Several members are doing regular surveys, conducting one-on-one dialogues from the president down; and doing all sorts of things to understand what work-life balance means to their employees.” One Ontario manufacturer doing a lot of hiring is getting all of its new employees through internal referrals. “It has created an environment with competitive salary and benefits plus an emphasis on work-life balance that has really helped support retention,” Casemore says. This employer is on the right track, but Hays Canada, a recruitment firm with offices across the country, has found many manufacturers (41%) are still relying on job boards, a tactic that’s proving to be ineffective and out-of-date in today’s low unemployment, skills-challenged economy. Hays, a subsidiary of Hays plc in the UK, surveys employers about salaries and other issues. It found 84% of human resources managers in manufacturing report their companies were suffering from moderate to extreme skills shortages. There are pockets of companies that
884 replies
57% 49% 29% 29% 23% 22% 21% 12% 8% 6% 4% 4%
Hiring new employees Investing in new production equipment/processes Adding/entering new lines of business Expanding plant size Acquiring other companies or lines of business Entering new lines of business Entering new geographic markets Merging with another company Downsizing employees Downsizing lines of business Closing of company Downsizing plant size
July/August 2018
2018-08-03 12:57 PM
pay more to get the right person, but Andy Robling, vice-president of client development at Hays, says despite the shortages, “we’re not seeing significant wage pressure. There are newer people joining the industry and the good news is employers (30% of those surveyed) are actively looking to increase headcount. But the concern is finding good people is that much harder.” Salary, benefits and perks help. Fifty-six per cent of those responding to the EMC-PLANT survey reported a portion of their pay was made up of bonuses and incentives. Those showing the highest percentage (20% or more) earn $180,188. Most are in the 6% to 10% range, with salaries averaging $110,757. Fifteen per cent get no perks or extras, but of those who do, 38% report performance or other bonuses, 37% identify RSP contributions, 32% get travel expenses, 30% have pension plans and 29% enjoy flex hours. Most respondents (73%) put work-life balance ahead of all other desired work conditions, including job security (55%), compensation and vacation time, both 54%, and a comprehensive benefits package (49%). Most (87%) are satisfied with job security and the job overall (86%), but they’re less satisfied with career support (31%). Almost two-thirds (61%) of the companies pay for educational courses, 47% cover memberships in professional associations and 46% pay for professional certification programs (but 25% don’t
SALARY FEEDBACK
Trends
Manufacturing executives responding to the 2018 EMC-PLANT Manufacturing Salary Survey were invited to add comments about compensation issues and like last year’s survey, their remarks ranged from salaries progressing (very few) to stagnating (a lot), many complaining their compensation was not keeping up with inflation. The impact of higher minimum wages was noted while companies are having trouble finding people with needed skills. There were 370 observations. Here are a few of the respondents’ insights:
• Les salaires continuent d’évoluer pour le mieux. Ils sont compétitifs. Les employés doivent s’avoir s’adapter rapidement aux différents changements, savoir travailler en équipe, avoir de l’ouverture face aux différents départements de l’usine. (Wages continue to evolve for the better. They’re competitive. Employees need to adapt quickly to changes, work in teams, have openness to different departments of the plant.) • More difficult to find high paying jobs ($100k+) despite education level. Becoming more difficult for private sector to hold on to personnel – results in greater turnover and lost operational efficiencies due to required learning curve for new hires. • Professionals in training are being fast tracked to leadership positions (to justify pay increases), disregarding their lack of experience and formal development.
Compensation
Skills
• Due to severe labour shortages, we are required to increase our starting rate for new hires, causing a cascade rate adjustment for all employees • New hires require increased incentives in the form of salaries and benefits. Broader skills required by individuals to keep competitive. • Salaries are better if you keep changing jobs or positions. Staying in the same job, same position there is very little chance salaries will increase more than 2% or 3%. • New generation of workforce – primarily millennial – have salary expectations that exceed reality. • Salaries are becoming more performance based and inflation increases are non-existent. • Auto supply is very challenging. Ownership is very demanding regarding aggressive profit margins that are not achievable, and ties this in with compensation.
• Skills are critical in our industry. We can’t hire or train fast enough to meet the demand or to replace future retirees. • Skills are hard to find; employer is not offering enough to bring in skilled talent or pay existing talent what is offered to new employees who need training. More people in the field are choosing to go independent and freelance. • Skills sets are diminishing, while demand for higher salaries is on the increase. • The field is becoming more technically demanding. Skills involve more software knowledge and technical knowledge as well as the people skills to be more of a leader and less of a manager. • Skills are changing more to “soft” engineering: time management, learning new software, IIoT, SMART equipment, communications.
opportunities. Some employers leave vacancies open for a long time so they’re not rushing to get the best of a bad lot. A failed hire can cost up to $30,000 to correct, Robling says. “Relying on a job board is not necessar-
pay for any of these). Inducements aside, posting opportunities on job boards or advertising and waiting for candidates to knock on the door is out of step with how today’s candidates seek career
Minimum wage • Increases to lower level positions due to increase in minimum wage. • Employers are not able to provide increases to more experienced staff.
ily where people are looking.” Indeed, Hays found only 17% of candidates look at them. But 80% of candidates expect to be contacted by an employer, 76% expect to get their next job through a referral-based process
MOST SIGNIFICANT ISSUES 896 replies
Cost control
51%
Capacity utilization
32% 47%
Skills shortage
Resource/asset management
24% 27%
Technology upgrade
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Reorganization
19% 22%
Supplier relationship management
IT issues
16% 17%
Risk management
Environment/ corporate social responsibility
11% 15%
Forecasting
Transportation
11% 11%
Outsourcing
Financing for capital acquisitions
8% 11%
Financing for working capital
Other
7% 8%
Global market expansion
6% Overseas sourcing
PLANT 17
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and 58% found their current job through a relationship. That means the candidate has made some sort of prior connection with a company. “People expect to get a job because they were headhunted or already known to a company (previous application); but increasingly because they have actively engaged with a company through wider networks, usually social media.” This is not a generational thing peculiar to millennials. LinkedIn covers all ages and professions across all industries. “Sixty-nine percent [of those Hays surveyed] prefer to be contacted directly about potential roles, instead of looking for a job and applying for it. That’s consistent across all age groups.” Employers agree proactive searching yields the best results, but Hays found just 24% said they have the time to do so and 41% prioritize it as one of their early actions during the hiring process. Many hiring managers are spending most of their time on pre-interviews instead of looking for the best possible candidates. And few companies are communicating with the talent pool. Just 51% have an internal recruitment presence
on social media, and more than a third (37%) communicate with potential candidates when not hiring, but only 17% of those put enough effort into connecting to build relationships. Technology is another issue. Hays found few employers were using it to source, screen and onboard candidates. What should employers do? • Review where the best candidates come from and focus efforts there. Topping Hays’ list are internal and external recruiters, and referrals. • Invest the time today to assess and implement better processes and technology. In five years it will be even harder to find the right people. • Diversify searches through recruiters, advertising with associations and navigating niche job boards. • Build a candidate network. Having a potential talent pool on hand means you don’t have to start from scratch. Robling says the better companies, which tend to be larger, promote themselves as a brand. Candidates want to know what it’s like to work there, so it’s important to engage them in conversations on social media.
Company culture is key. Regularly monitor what employees have to say about their work environment. Are they encouraged to provide input about the business? Are there regular social events? How is the company involved in the community; does it allow an employee to take a day for charity work? Identify flexibility with shift and vacation times. And candidates are also looking at opportunities for learning and advancement. Smaller manufacturers with limited resources can make better use of what they have to work with. When posting a position, does the advertisement tell an engaging story or is it a list of responsibilities? “Be very clear about what makes your company a good one to work for and what makes people stay. Many don’t think about that,” Robling says. Although salary will always top the list, he cites other differentiators when a candidate is making a choice between two or more potential employers offering the same money: culture and career progression. “Career advancement is not necessarily hierarchical. Many people are more satisfied mov-
ing into a different role, learning a new skill or being involved in a new project,” he says. “If you add up benefits, culture and career progression, they’ll outweigh salary.” As always, there’s work to be done to align compensation with business prospects, growth and the seemingly endless need for the right people to drive businesses forward. There will be plenty of challenges ahead, especially with a limited supply of replacements for the exodus of experienced baby boomers from production and management, never mind the need for additional people to handle the demands of growing businesses. Despite all the Trump trouble and potential business upset, manufacturers are calm. Compensation is holding steady and there are plenty of incentives to attract talent. “There are lots of different roles, companies are strong and when you look at the titles, there are many progressive opportunities,” Casemore adds. “Manufacturing is still a solid career choice.” Comments? E-mail jterrett@plant.ca.
SKILLS
There’s a talent shortage dilemma It could cost companies trillions of dollars extra by 2030 to hire highly skilled workers
T
here are some troubling implications related to the shortage of skilled talent in manufacturing and other sectors. A study by the Los Angeles-based Korn Ferry management consulting firm (www. kornferry.com) warns salaries for highly skilled workers could explode globally as talent shortages take hold. Unchecked, a surge could add $2.5 trillion to annual payrolls by 2030. Twenty major, representative economies were examined (but not Canada) based on three milestones: 2020, 2025 and
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2030 and the Korn Ferry report shows how much more employers would have to pay workers above normal inflation increases. The US will take the biggest hit, paying a premium of more
Salaries for the highly skilled could PHOTO: FOTOLIA explode.
than $531 billion by 2030. Manufacturers are looking at a 136% wage premium increase between 2020 and 2030. That’s $197 billion-plus. The average annual premium across the 20 economies per worker would be $11,164 per year. Korn Ferry says buying talent from the market will be unsustainable. Manufacturers (and others) must instead focus on what drives retention. “We know that employees who have the opportunity for career development, benefit from inspiring leadership and feel
their work has purpose are more likely to stay at an organization, and – crucially – will be more engaged and productive,” says Alan Guarino, Korn Ferry’s CEO. It won’t necessarily be those with the highest academic achievement who succeed, but those who are adaptable and willing to learn, with enough flexibility to handle rapidly shifting working environments and less hierarchical structures, he said. “Companies need to identify the talent of tomorrow and help them achieve their potential.”
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STRATEGIC INTEREST GROUPS R e s o l v i n g i n d u s t r y c h a l l e n g e s , t o g e t h e r.
w w w.e m c c a n a d a .o r g
2018 EMPLOYER SURVEY AVAILABLE NOW PL_EMCanada_CSA.indd 1 PLNT_JulyAug 2018_AMS.indd 19
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EXPORTS Don’t panic! There are ways to mitigate the risks. BY MITCHELL OSAK “It was the best of times, it was the worst of times...” harles Dickens could not have imagined that his opening line in A Tale of Two Cities would accurately describe the situation facing Canadian manufacturers in 2018. On the positive side of the ledger, there are powerful and regularly occurring economic factors – such as a low 78-cent Canadian dollar and a buoyant domestic and global economy. Traditionally, these factors would give a strong boost to most manufacturers, especially export-oriented ones. And they seem to have arrived in the nick of time; manufacturing has taken a beating, especially in Ontario, which is reeling from high electricity costs, a slowdown in key markets such as oil and gas, and regulations. But on the negative side, some storm clouds are hovering over the Canadian economy, which do not bode well for a strong rebound. The spectre of increased tariffs triggered by the Trump administration’s renegotiation of the North American Free Trade Agreement (NAFTA) has the potential to kibosh any manufacturing recovery and throw the sector – and many other parts of our domestic economy – into recession. To say we are vulnerable to tariff increases, along with the onset of non-tariff barriers, would be an understatement. Canada is a trading nation, with about 30% of GDP dependent on exports (Industry Canada). Approximately 75% of our trade is with the US, and automotive-related manufacturing accounts for 80% to 85% of this volume. US President Donald Trump has made fair trade a cornerstone of his foreign and economic policy. His belief – right or wrong – is that the US is being taken advantage of. He’s looking to level the field by playing hard-
C
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The Canada-US trade relationship is coming to blows.
Canada-US trade
FIGHT DANGEROUS TIMES CALL FOR BOLD MEASURES ball in NAFTA renegotiations, levying tariffs on products or pulling out of the deal entirely.
Under fire The threat of NAFTA being torn up poses a major risk to Canada’s manufacturing sector, as do concerns about a significant reduction in our terms of trade with global giants such as China, India and the European Union. The negative repercussions potentially include: Higher input costs. Higher tariffs will drive up the cost of Canadian products that have a high level of US content, such as cars, industry equipment and airplanes. Production that relies on US inputs will also be affected, including locally consumed food products and consumer goods that are manufactured or packaged in factories using
American-made machines. Reduced export competitiveness. Our major goods manufacturers could be hurt. Earlier this year, Trump imposed tariffs of 25% on steel and 10% on aluminum, two industries that represent approximately 3% of our US merchandise exports, almost eliminating any exchange rate advantage. Things could get worse. A Scotiabank study estimated that if the US imposed an across-theboard tariff of 20%, the Canadian economy could contract by 1.8% by 2020. Washington is also threatening to introduce duties on automobiles, a move that may cripple our critical automotive sector. Increased complexity of doing business. For some manufacturers, particularly those with US operations, higher
PHOTO: FOTOLIA
duties may be the least of their concerns. Canadian managers, sales people and leaders recruited to run these operations may end up facing employment immigration restrictions around the use of temporary TN work visas (issued to professional workers). Given the unpredictability of Trump’s policy moves, any negotiations will continue to be accompanied by currency volatility, slowing or cancelled orders and/or indecision by customers, who may be unsure about how to act in light of policy uncertainty. Slower global growth. Even the mention of tariffs is proving to be toxic to global growth and the potential demand for Canadian products. According to Marie Owens Thomsen, global chief economist at Indosuez Wealth Management in Geneva, “Just talking about protectionism is causing trouble.” A key indicator includes airfreight and container traffic that’s flat or has dipped since 2017. Although manufacturers ought to be concerned, this is no time to panic. Firms can proactively mitigate their risks in a number of ways: • Closely monitor the situation. While trade policy is one of the most arcane subjects imaginable, major changes generally do not come out of
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PERFORMANCE the blue. Managers need to be mindful of potential changes and prudently adjust their inventory, headcount and decisions accordingly. • Diversify markets. For years, manufacturers have been lectured about the need to diversify export and domestic markets. This time, it may be a matter of life and death. Firms need to quickly consider other export markets, while making sure they are capitalizing on all the opportunities within Canada. • Increase Canadian ‘content’. Explore opportunities to add more Canadian-made inputs. Reducing the impact of higher US pricing could also lead to other benefits such as reduced supply chain complexity. • Leverage the right financial management strategies. Offset financial risk by employing hedging strategies or strictly buying inputs and selling their wares in US funds. However, using these strategies can introduce other financial and business risks. Many pundits are writing off President Trump’s antics as posturing and bravado, noting the mutual dependency of the Canadian/US economies and our deep cultural and defence ties. Yet Trump’s trade policy is appealing to many Americans and the US economy is not as dependent on trade as other countries. Moreover, history shows rising tariffs in some places can trigger larger trade wars with damaging consequences. Canadian manufacturers can no longer afford to be complacent. Mitchell Osak is managing director, strategic advisory services, at Grant Thornton LLP, a Canadian accounting, tax and advisory firm. E-mail mitchell.osak@ca.gt.com. Visit www.grantthornton.ca. Comments? E-mail jterrett@plant.ca.
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Teaching CNC skills.
Making change
STICK LESSONS FROM TWO LEARNING CONFERENCES Build the relationship with your crew to lay a solid foundation. BY HUGH ALLEY
M
anagers often complain team members aren’t enthused by changes in the workplace. That may be because after all the fuss and bother, things slide back to how they were. This is a problem for companies that need to stay competitive. Two recent conferences in Atlanta offer some insights. At the Training Within Industry Summit, the focus was on three key programs that improve the skills of supervisors, who need to build relationships with their crews to make change last. A common point in all three
programs (how to deal with inadequate performance, how to teach skills, and how to make local improvements) is to speak to the people who do the work. This point is expressed in different ways. In Job Relations, it’s stated as “get opinions and feelings,” a reminder you need to know how a situation is perceived to present it properly. In Job Instruction, it’s expressed as “consult with others to select the current best way.” In Job Methods, it’s expressed as “Work out your ideas with others.” At KataCon4 the focus was on the Toyota “Kata,” which translates as “routine.” There are two connecting cycles: improvement, designed to generate many fast experiments; and learning how to learn. Most improvement efforts change too many things at once.
PHOTO: FOTOLIA
As a consequence, you don’t know what actually led to the change in outcomes It’s also important to measure the results of each experiment. And everyone must see what’s happening. How does this tie into training? The bites are smaller when changes are part of controlled experiments for easier delivery and learning. In one program, significant changes to production were introduced with 10 experiments in just 12 weeks. New processes ran smoothly from day one because one change was made at a time. When changes are ongoing as part of a pattern of experiments, team members get used to learning new methods. As a result, they’re less resistant to learning new things. Part of good training is preparing learners, involving them in developing the learning, and breaking it into small chunks. Follow these practices and change is more likely to stick. Hugh Alley is an industrial engineer based in the Vancouver area who helps organizations achieve significant performance gains. Call (604) 8661502 or e-mail hughralley@ gmail.com. Comments? E-mail jterrett@plant.ca.
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LINEAR & RITTAL:
BLAZING A TRAIL THROUGH THE AU Linear Transfer Automation, Inc. has been the backbone of the metal-forming & stamping automation industry landscape for a long time, eliminating a lot of heavy lifting and repetitive tasks and adding increased productivity and flexibility to manual and aging processes in the metal-forming / stamping industry. Linear’s automation products range from high speed material feeding systems, through stamping processes with transfer systems and end-of line stacking systems. Linear’s goal is simply to be the leading transfer automation manufacturer in the world, committed to the highest in quality, performance and service at a competitive cost. Linear, part of The Flodraulic Group of companies, is the world’s leading supplier of specialized press transfer automation solutions. Their proven technology is designed to be the most reliable, robust and flexible automation in the market. The equipment is backed by world class 24/7 support from many global locations. Established in 1994, Linear serves the automotive, appliance, HVAC, outdoor power equipment, renewable energy, and consumer goods industries with sales and service locations in the US, Canada, Mexico, Brazil, China, Thailand and the UK.
PATH TO PROGRESS
From concept....
...to completion of the complex enclosure system.
Rittal command panel for HMI.
Linear believes in building each system with the simple goal of never being the bottleneck in the process by utilizing scalable engineering and technology, custom motion profiles, intuitive and efficient operational software. In order to provide world-class service to their international clients, including 5 of the global top 10 automotive OEMs, global appliance and HVAC manufacturers, Linear has established service and support centers in all regions where their equipment is installed. Linear ensures that their customers receive the optimum solution for their requirements. Linear achieves this by putting their customers’ needs first and working with their partner suppliers to ensure that each component and device is class leading, globally available and reliable. Their goal is to ensure whatever model or type of automation that is procured from Linear, it is always consistent, reliable and globally supported. Rittal is part of that promise, to work with industry-leading partners, with globally available solutions, globally supported with the highest quality and reliability. “One of the biggest advantages in partnering with Rittal is that they offer a standardized, consistent product that meets ours and our customers’ needs,” says Rama Jayaweera, President, Linear Transfer Automation Inc. To achieve this, Linear performs an extensive evaluation and qualification check before they standardize on a product and form a partnership with the product manufacturer. When it came to selecting Enclosures, Consoles, Junction boxes, Air conditioning systems to house their critical equipment, Linear performed a market study and after reviewing and working with a number of manufacturers, it was very clear to Linear that Rittal was the only truly global company with consistent and readily available products and solutions. And more importantly – the quality was always at a consistently high level. This paired with the network of local technical associates, led Linear to select Rittal over 18 years ago and they have not switched from it being their standard platform.
For more information
www.rittal.ca email: marketing@rittal.ca
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Linear is dedicated to providing top notch service to their international clients, including 5 of the global top 10 automotive OEMs.
SOFTWARE POWERS THE SYSTEMS The fact that Linear has access to Rittal’s various software and configuration tools really makes the whole process very smooth and seamless for selecting and procuring. The ability to download CAD drawings for large enclosures through Rittal’s Cadenas tool, or to use the RiCS tool to configure smaller enclosures, is a major advantage for Linear, as it simplifies the design engineering process. Rittal’s software tools streamline the process.
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Sponsored Content
The greatest advantage in partnering with Rittal is that they offer a standardized, hi-quality product that meets our needs and saves significant costs.
:
Rama Jayaweera, President, Linear Transfer Automation Inc.
FORD MOTORS: Powering Up with Linear and Rittal Rittal has been working with Ford globally for years. When Ford’s Cologne engine plant shut down a number of times in one year due to defective cooling units, Ford accepted Rittal’s offer to carry out a manufacturer-independent inventory of all the cooling units and to identify potential energy savings. The analysis revealed the urgent need to repair and replace 11% of the cooling units. Rittal’s comprehensive energy efficiency calculation resulted in savings of over CAD 860,000 within 10 years, with a payback period of just 2.4 years for the investment in the new cooling units. For more information, visit http://bit.ly/PLANTRITTAL
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SOLUTIONS FOR SPEEDY SUCCESS Over the past 18 years, Linear has purchased hundreds of Rittal’s flagship TS 8 enclosures and unmatched accessories from plinths to comfort handles, along with hundreds of Rittal’s top of the line Blue e Wall mounted air conditioners to cool the enclosures, providing world leading energy savings. They have also invested in Rittal’s junction boxes, pendant arms and other accessories.
Rittal’s modular TS 8 enclosures.
THE ‘RITE’ CHOICE Linear used to have a direct account with Rittal when first starting out in 1998. After the 2008 recession, Linear’s new management team aggressively grew the business to become the leading transfer automation supplier in the NAFTA region. Due to rapidly expanding volumes, inventory and local support requirements, Rittal introduced them to Proax Technologies Ltd. With over 55 years’ experience, Proax Technologies is a leading Technical Automation Distributor in Central Canada, that offers innovative product solutions in the areas of Machine Automation, Motion Control and Machine Safety; creating close relationships with their valued customers, vendors and partners. Proax was able to offer top-notch logistical service and economies of scale, resulting in cost-efficient products and services. Now Linear was not only able to receive Rittal’s worldclass enclosures, cooling systems, junction boxes and accessories, backed by leading German technology, but also received aggressive pricing levels, inventory and service by working with Proax.
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MOUNTING CHALLENGES
Rittal’s TP console system to house HMI.
ZOOMING INTO THE FUTURE Linear observes, “The irony is that in the past, very few asked for Rittal because they were always known for their quality but their prices were perceived to be higher. Nowadays, everyone is asking for Rittal’s products and solutions because of their dependable track record for innovative and cost-effective products.” Apart from the TS 8 enclosures and Blue e cooling systems, Linear is interested in learning more about Rittal’s other offerings such as their cUL approved Busbar systems, LED lights and the new plinth system that will be introduced soon. Linear is also keen to evaluate the EPlan platform that will digitize and simplify the process from start to finish, and to also test out the Perforex machine that can customize enclosures seamlessly and save valuable time for them. With proven technology and solutions that are designed to be the most reliable, robust and flexible in the market, and a quest for even higher levels of advancement, Linear and Rittal are certainly trailblazing through the automation industry!
Linear engineers recalled a tough time, when they were asked by a customer to use another supplier’s products; a standard four-week delivery period turned into 14 long weeks, before finally receiving enclosures with back plates that were painted instead of being galvanized, a requirement for their application. To rescue the project, they ingeniously fit Rittal mounting plates on the other supplier’s panels to save the situation. Past experiences also include a time when a supplier provided individual enclosure parts that took Linear can depend on Rittal to provide stocks on time, & the enclosures are easy to configtheir staff several days to ure and assemble, saving valuable time! assemble, taking them off other critical tasks, and increasing their production build time. Following these and a few other bad experiences, Linear now informs all their customers who ask for other manufacturers’ brands for enclosures, that they will provide Rittal products only. Linear believes that direct cost is not the only deciding factor in enclosures; it is the need for a global, dependable, consistent and quality product – such as provided by – Rittal.
DECISIONS ‘BASED ON EXPERIENCE’ “The main reason why we trust Rittal is ‘based on experience’, says Mr. Jayaweera of Linear. “Rittal has come through for us time after time, when other suppliers either failed to provide the equipment on time, or their equipment failed!” Adds Tim Rourke, President, Rittal Systems, “I truly appreciate the collaborative partnership we have developed between our organizations. Rittal is committed to working with Linear to ensure that they achieve their lofty goals and fulfill their commitments to their global clients.” Rittal has pioneered the concept of modular enclosures, which open up a host of benefits. Modular, scalable enclosures can be easily bayed or attached together, saving valuable space on the plant floor and in the assembly line. The Perforex machine at Rittal’s Modification Centre in Mississauga. Rittal makes assembling enclosures extremely easy. As Linear said, “We perform bulk buys on the Rittal Enclosures which allows the Production team at Linear to prebuild the panels for jobs, to decrease the time in a production schedule. We are familiar with the Rittal products and the modularity allows us to easily purchase based on project forecasting. We find it to be a superior product over their competitors.” Moreover, Rittal’s enclosures are flexible and easily accessible from the reverse, with easy wiring capability. The global service network of Rittal is an added bonus especially as Linear has international clients and global locations, so they can easily access Rittal’s parts, service and repair facilities anywhere in the world. Linear highly values Rittal’s Modification centre based in Mississauga, with their state of the art Perforex machine that renders smooth cut-outs with laser precision for a clean-looking panel, and enables them to provide modified enclosures quickly and efficiently. In addition, Rittal has a large warehouse in Mississauga that stocks adequate equipment, so Linear is impressed that enclosures and cooling units arrive within their designated delivery times. The safety factor is also important to avoid accidents on the plant floor, and Linear is aware that Rittal’s flange mount disconnect switch is a large contributor to the safety of their employees and customers.
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THINK LEAN Optimize use by weight and cube as part of a PFEP.
The differentiator between trucking companies is customer service. PHOTO: FOTOLIA
BY RICHARD KUNST
D
esign engineers love to design an end product and to a lesser extent the assembly process, but they tend to ignore material conveyance although it accounts for up to 70% of the final product cost. Meanwhile, buyers squeeze suppliers on cost and insist the cost of shipping be covered, believing they’re saving the company money. When we look at product and process to improve efficiency, throughput, velocity and cost reductions, logistics cost is seldom considered. A typical 53-foot trailer holds 30 standard 40- by 48-inch pallet positions. The inside of the trailer contains 3,816 cubic feet (3,604 useable) and can carry 45,000 pounds, all of which is transported at a maximum 100 kilometres per hour. These factors remain the same, no matter which trucking company you use, so the differentiator is customer service and how quickly pick-ups and drops are executed. You can optimize trailer use for both weight and cube. Ideally every cubic foot would contain 12.5 pounds of material, but first you need to develop a comprehensive PFEP (Plan For Every Part) that contains part dimensions, weight, how it’s packaged and consumption profiles. Although much of this information is contained in your ERP system, it’s typically scattered and may not provide enough detail to optimize your value chain. This leads to applying chako-chako (load-load) with your supplier, where the output of one process automatically becomes the input for the next. Dunnage is a critical component within your value chain and deserves a lot of attention. Don’t default to an ordinary cardboard box. Operators develop muscle memory as they work within
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More efficient
SHIPPING HOW TO ENGINEER YOUR LOGISTICS BY THE TRAILER a process so the less thinking they have to do enhances productivity and quality. Factors such as part orientation within dunnage are important, especially as we keep in mind that magical number of 12.5 pounds per cubic foot. Custom designed returnable containers or racks may appear expensive at first, but they’re a sound investment if designed correctly. Ideally the supplier’s process automatically loads the rack (optimized for the truck trailer) and conveys it to your consumption point with minimal material handling or operator involvement. Some suppliers have a very advanced and highly technical cell using pick and place robots, where orientation has been standardized in the final step with parts dropped into a box. The parts are removed from the box at the delivery site and have to be re-oriented for the customer’s process. A properly designed container preserves the orienta-
tion during the shipping process, reducing overall manpower while increasing throughput and productivity. Typically, returnable containers and racks work best if the supplier is located within three hours from the point of consumption. If it becomes a plug-and-play at the consumption point (reducing manpower requirements), the supplier can be farther away.
Leverage suppliers Consider using flow-through packaging. A great example is automotive radiators. A manufacturer placed the radiator shell into a cardboard tray. It was shipped to a plastic injection moulder that installed a shroud, then sent the radiator to an electrical supplier where the fan and motor were installed with a top cap to enable shipping of individual units to dealers. Having each supplier leverage from the previous supplier’s step saved a lot of money by eliminating unpacking
and repacking. Now back to the PFEP and some calculations, remembering the goal is to optimize a trailer from both a weight and cube perspective. Based on consumption and supplier location, start building your trailer load. Individual lot size should optimize the 12.5-pound rule. Unused space can hold infrequently used materials (think runners, repeaters and strangers). Trucking firms are constantly looking at how to optimize their loads since it can cost between 85 cents to $1.07 per mile to move goods. If you pre-engineer your shipping requirements it will put the money into your income statement and the shipping firm. Remember the goal is 100% trailer utilization so if you weigh out before you cube out or vice-versa, you’re leaving money on the table. If your mix doesn’t achieve the goal, consider partnering with another company close to you. With supplied goods at the receiving dock, use the PFEP and engineered timed delivery routes to convey supplies to the point of use. Using the PFEP will allow you to determine the refresh rate by SKU whether by minute, hour, day, week or month. But look at the cost of the component. It may not make sense to refresh fasteners on an hourly basis when they could quickly exceed the component’s cost. Richard Kunst is president and CEO of Cambridge, Ont.-based Kunst Solutions Corp., which helps companies become more agile, develop evolutionary management and implement lean solutions. Visit www. kunstsolutions.com. E-mail rkunst@kunstartofsolutions. com. Comments? E-mail jterrett@plant.ca.
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PLANNING Realizing improved performance of assets while reducing costs is the objective. BY STEVE GAHBAUER
E
ffective maintenance plays a crucial role in manufacturing. To manage costs, plants attempt to get the most out of people and assets. But competing priorities challenge maintenance pros as they strive to keep machines and systems running, while at the same time keeping costs down. One way to achieve efficiency is to align the plant’s different departments, all working together to meet common goals. And cooperation begins with all employees understanding their roles, says Jay Winkelmans, director of JCW Consulting Ltd. in Fort McMurray, Alta. He addressed this subject in a workshop presented at the 2017 MainTrain maintenance conference in Saskatoon. Winkelmans is a retired senior military officer who also has several years
Reducing operating and maintenance costs.
Achieve efficiency with
ALIGNMENT
ALL DEPARTMENTS WORKING TOGETHER of management experience primarily in the oil and construction sectors. He specializes
in department alignment and process improvement. What is alignment and why
COLLABORATION
Humber College gets smarter Partnership with SEW-Eurodrive advances Industry 4.0 knowledge
Mobile tech on the move.
H
PHOTO: SEW
umber College and SEW-Eurodrive are advancing awareness of Industry 4.0 and smart factories with a five-year partnership that will provide training and research opportunities. This collaboration aims to expand the knowledge of faculty, students and employees at the Toronto college but it will also help Canadian companies of all sizes explore how Industry 4.0 enhances manufacturing processes and increases productivity.
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PHOTO: FOTOLIA
As part of the agreement, SEW-Eurodrive will showcase its Industry 4.0 laboratory for the first time in North America. Located in the college’s Centre for Technology Innovation (CTI), the lab will focus on automated guided vehicles and demonstrate how mobile technology interacts with people and stationary automation. The partnership also includes: • More than $4 million in SEW-Eurodrive technology for the college. • $125,000 to establish new scholarships through the SEW-Eurodrive Ernst Blickle Awards. • Employment and exchange pathways for Humber students to work at SEW-Eurodrive locations in Canada and around the world. • Educational programs in drive automation, Industry 4.0. • STEM outreach activities and awareness events targeting high school students. SEW-Eurodrive is a manufacturer of drive technology based in Bruchsal, Germany. SEW-Eurodrive Co. of Canada Ltd. is based in Brampton, Ont.
is it important? Winkelmans describes it as an agreement between leadership, engineering, operations, maintenance, supply chain and supporting services on the strategy, tactics and schedule. This improves equipment reliability, reduces downtime, production loss and maintenance costs, as well as materials expenses, and it improves safety.
Costly breakdowns Consider the cost of break-in jobs (added to the schedule without proper lead time for planning and scheduling). Breakdown maintenance can cost three to four times more than planned maintenance. Add lost production and the cost could be as high as 20 times. It’s an expensive way to operate, yet it’s all too common throughout industry. Reducing break-in maintenance presents a significant competitive opportunity. Understanding the full cost and impact of break-in maintenance brings us to the importance of planning. Winkelmans
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points out that each dollar wasted in maintenance could translate into at least 10 wasted dollars for production and operations, measured in lost production, reduced equipment life and lost revenue; hence the need for risk-based work selection. Why? Work based on risk, rather than fixing it when it breaks avoids big losses. It comes down to producing more at less cost, increasing the amount of maintenance work completed without increasing personnel, and reducing the warehouse stock levels without having stock-outs. Another significant benefit is less equipment downtime, thereby increasing production. Work selection based on risk is a management process that maximizes efficiency and effectiveness of the response, facilitates better communication, improves safety, reduces cost, and improves the ability to make good business decisions. Scheduling and planning are also important. Grouping jobs in time, based on the unit objectives and asset criticality/risk shows when work needs to be done and who is assigned. Planning is a sequencing of tasks within a job. It defines what needs to be done, and where. Operation and planning ensures the right people, the right materials and the right sources are in place at the right time to meet needs. This system includes work selection and approval, planning and scheduling, and execution and closure. Proper planning and scheduling provide procedures to arrange, execute, monitor and control maintenance resources; minimize delays obtaining resources, materials and tools after the work begins; ensure communication between maintenance and operations; maximize available labour hours; mitigate emergencies; minimize the potential for work completion delay; and assign criteria for performance and its measurement. Planning, scheduling and
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coordination increases profits and reduces capital spending in various ways. One is by reducing unnecessary equipment or production downtime, thereby increasing capacity and improving production flow, which lowers the cost to produce and increases net returns. Another is by identifying wasted and unnecessary activities; and a third is by identifying improvements in parts or materials that extend the economic life of plant equipment.
Scheduling benefits Some indirect benefits include increased safety and environment compliance; increased job satisfaction through value-added and focused efforts in completion of tasks, as well as increased learning; less redundant and
repetitive work; less stress as a result of increased planned work and less reactive emergency work; and greatly improved teamwork. Within a plant there are always competing priorities and often more work than resources available. Equipment will eventually fail. Scheduling offers the opportunity to complete work before it fails and ensures the work done is proactive rather than reactive. The apparent cost of machinery or equipment is minuscule compared to the total cost of its impact across the company. That’s profits lost to handling the problems asset failure has created. Typical sources of cost overrun include poor estimating techniques and/or inconsistent standards; unclear work deliverables; unscheduled
interruptions; no post analysis or cost reporting, as well as lack of contingency planning (no risk management strategies); and lack of effective scheduling processes and/or tools. Planning without action is futile! Action without planning is fatal. By failing to prepare, you are preparing to fail. This article was adapted by Steve Gahbauer from a workshop held during the 2017 MainTrain conference presented by the Plant Engineering and Maintenance Association of Canada (PEMAC). Gahbauer is an engineer, a Toronto-based business writer and a regular contributing editor. E-mail gahbauer55@gmail.com. Comments? E-mail jterrett@plant.ca.
INDUSTRY 4.0
Smarter factories
8 transformative technologies Research identifies new technologies driving manufacturing into the future. BY PLANT STAFF
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ondering which technologies will contribute to the smartest manufacturing in the not-so-distant future? A report from ABI Research, a New York-based “market-foresight” advisory firm, identifies eight in a report that will lead to a major change in how you manufacture: 1. Additive manufacturing 2. Artificial intelligence (AI) and machine learning (ML) 3. Augmented reality (AR) 4. Blockchain 5. Digital twins 6. Edge intelligence 7. Industrial Internet of Things (IIoT) platforms 8. Robotics Adoption of IIoT platforms and edge intelligence (data analysis at device level) is increasing, and over the next 10 years, other pieces will be added. The research firm says this will eventually shift manufacturing from fixed assembly lines and fixed assets to more dynamic factories. “Manufacturers want technologies they can implement now without disrupting their operations,” says Pierce Owen, principal analyst at ABI Research. “They will change the way their employees perform jobs with
Factory of the future: no people on site.
PHOTO: FOTOLIA
technology if it will make them more productive, but they have no desire to rip out their entire infrastructure to try something new. This means technologies that can leverage existing equipment and infrastructure, such as edge intelligence, have the most immediate opportunity.” Some companies looking to the future are making the move to a fully automated “lights-out” scenario, which is raw materials in, finished product out, and no people (or very few) on site. FANUC, the Japanese robot company, started running a lights out factory in 2001 with robots making robots, at about 50 per 24-hour cycle, unsupervised 30 days at a time. A complex housing 22 factories currently produces about 23,000 CNC machines per month. But ABI Research describes lights out as a major disruption that will require an overhaul of workforces, IT architecture, physical facilities and equipment, plus fully integrating many of the new technologies. Access the Smart Manufacturing Transformative Horizon report (available for purchase) at www.abiresearch.com.
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PEMAC PROFILE Cigar Lake uranium mine gets a strong start with a focused lubrication strategy. BY NICOLLE GUILLEN
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hen Cameco Corp. was making plans in 2013 for the Cigar Lake uranium mine, its fourth in Saskatchewan, lubrication was identified as a critical aspect of the asset management strategy. Cameco created a lubrication group tasked with ensuring its new mine, one of the world’s highest grade operations, started off on the right foot. With commercial production beginning in 2015 and many expensive, essential assets, including an innovative jet-boring system, it was critical to have the right maintenance strategies in place to maximize productivity. One of the first steps, with the support of an external resource, was to conduct an audit of lubrication processes, identify deficiencies and highlight areas where improvements could be made. This led to the creation of a group focused specifically on the lubrication strategy. “We wanted to come out of the gate the right way, designing and implementing the right processes to ensure Cameco’s assets had maximum uptime and the longest possible lifespan,” says Brad Owen, an industrial fluids and lubrication specialist based at the uranium producer’s Saskatoon headquarters. “Part of the process involved identifying where the gaps were in our current reliability process, but also ensuring our team had the right skills to develop the best strategies for our new mine.” Owen joined Cameco, one of the world’s largest uranium producers and significant supplier of conversion services, in September 2006 as a mechanical engineering technologist. With a background in maintenance and engineering, his skills fit in well at Cameco, which owns and
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Dewatering at a Cameco uranium mine.
PHOTOS: CAMECO
Cameco’s asset
PLAN
HOW BRAD OWEN’S TEAM REDUCED MINE COSTS maintains a variety of assets including a varied surface mobile equipment fleet and innovative underground equipment. His early responsibilities involved working on mechanical projects and designing maintenance processes. He enjoyed focusing on developing and implementing effective processes that related to work management and reliability, which prepared him for starting this greenfield project from scratch. Owen’s management team recognized the Maintenance Management Professional (MMP) program offered by the Plant Maintenance and Engineering Association of Canada (PEMAC) would provide members with a wider perspective of reliability and maintenance management. But it also allowed Owen to connect all of his previous lubrication training to Comeco’s strategic goals. The MMP certificate program,
designed by PEMAC, a Canadian national not-for-profit association, provides professionals with the tools, techniques, strategies and skills necessary to manage physical assets.
Wider lens Owen enrolled in the first of eight modules at the University of Saskatchewan, and quickly learned the value of a wider lens when it comes to maintenance, reliability and asset management. “The MMP program, offered online or in face-to-face classrooms in post-secondary teaching institutions across Canada, provides a well-rounded perspective of how reliability and maintenance should be integrated with an organization’s entire asset management strategy,” says Dick Olver, a retired senior specialist in asset reliability and MMP instructor. “Participants gain the skills they need to effectively manage
their assets, driving improvements in uptime, equipment reliability, as well as production capacity, while at the same time learning to work more cohesively with other departments towards the overall business objectives of an organization.” Owen’s Applied Science Technologist and Society of Tribologists and Lubrication Engineers (STLE) training provided a solid foundation for developing strategies the new lubrication group would use. And as he worked through the program, he developed additional skills. The fourth module in the program, Financial Management for the Maintenance Manager, was key. This course provides skills needed to work with finance, which helped him build a strong business case to request funding for projects by putting the benefits in financial terms. There are a number of gearboxes and a variety of pumps used in Cameco’s mining process that move ore slurry through the processing mechanisms. High-pressure jetting pumps generate a lot of waste oil mixed with water (as per design), but he knew there was a better way to process the ore, reduce waste and lessen the environmental impact. He devised a business case for a change to a 100% water flush, eliminating oil waste that would have to be hauled up from the underground operations. Using
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techniques he learned in the program to justify the cost of modifying the pumps, he was able to show significant benefits in spite of the required investment. That made the decision to move ahead with the project an easy one. The lubrication group is currently examining Cameco’s overall strategy for screw freeze compressors. Its fleet of nine 250-ton compressors is expanding to 14. Any downtime today will delay the mining plan in the future. The lubrication group is working with the operations team to improve reliability. The initial strategy involved rebuilding the compressors at 30,000 hours, whatever their condition. Using oil analysis and vibration monitoring rather than a time-based strategy will extend the rebuild time to 60,000 hours. The strategy includes adding finer micron oil filtration, modifying the piping to isolate the filters so the compressor
will also allow us to collect baseline data to target problems, make changes, and verify the results,” Owen says. “Often as maintenance professionals, we lose perspective of how things are working in other departments, and how synergies could be gained by working together more Brad Owen, Cameco’s industrial fluids effectively.” PHOTOS: CAMECO and lubricant specialist. Owen and his team have applied other insights continues to run during a filter gained from the program. They change; and conducting a mainimplemented more effective tenance history analysis to idenreliability centred maintenance tify the causes of downtime that (RCM) strategies to confidently will allow the team to remediate schedule repairs when they’re any issues. needed, identified the critical as“Coordinating between desets, and prioritized lubrication partments has enabled Cameco plans to minimize downtime to develop a strategy that takes while maximizing their producinto account many perspectives tive life. and considerations. This latest The lubrication program has initiative will provide maintereduced costs and improved nance and capital cost savings equipment availability, leading worth millions of dollars. It
the group to look at standardizing the strategy across Cameco’s other operations in northern Saskatchewan. Having more standardized lubrication products and supplying more effective RCM strategies has made ordering and storage more efficient, reduced on-site inventory and made it easier to locate. Today, Owen is responsible for lubrication strategies across all of Cameco’s northern mine sites. “I started with technical knowledge: now I understand how to apply that knowledge to ensure the lubrication group is a recognized asset.” Nicolle Guillen is the professional development manager for the Plant Engineering and Maintenance Association of Canada (PEMAC). Visit www. pemac.org. Comments? E-mail jterrett@plant.ca.
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CCOHS SAFETY TIPS Watch for signs of heat exhaustion among workers.
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t’s summer and with the warm weather comes the threat of heat-related illnesses that strike with little warning. Conditions in plants can suddenly overwhelm the body’s ability to deal with heat. This leads to potentially serious heat exhaustion caused by the body’s loss of water and salt through excessive sweating. Symptoms include: nausea; dizziness; muscle cramps or weakness; feeling faint; headache; fatigue; thirst; heavy sweating; and high body temperature. The response to suspected heat exhaustion includes moving the afflicted worker to a cooler, shaded location; getting medical aid and staying with the person until help arrives; remove as much clothing as possible (including socks and shoes); applying a cool, wet cloth or ice to the head, face or neck; spraying the overwhelmed worker with cool water; and encouraging the person to drink water, clear juice or a sports drink. Follow these tips to prevent
Taking the heat in a metal foundry.
PHOTO: FOTOLIA
Play it cool in the
WORKPLACE HOW TO AVOID HEAT-RELATED ILLNESSES heat exhaustion: • Train workers and supervisors about the hazards leading to heat illness and prevention methods.
• Train workers to recognize symptoms in themselves and others. Encourage immediate reporting. • Encourage workers to drink
H&S INDEX
Ontario workplaces are 1.6% safer Manufacturers top other industries in culture
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ntario’s workplaces are 1.6% safer compared to last year, according to a new health and safety index from the WSIB. The index compiles data on prevention, empowerment, workplace culture, enforcement and injuries, combining the areas into a single, evidence-based measure. Manufacturing showed a 1.8% improvement with the highest score of all industries in workplace culture, covering leadership and awareness of legislation helping to keep people safe. Strong workplace culture also impacts prevention. Lower inspection numbers and poor performance in supporting return-to-work efforts kept manufacturing from outperforming other industries. The top performing area this year was empowerment,
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Workplace culture impacts prevention.
PHOTO: FOTOLIA
improving by 13.2% since 2017. The data relates to refusals of unsafe work, complaints and employee involvement in health and safety practices. Enforcement, a compilation of data on the frequency of fines, orders and convictions for poor health and safety practices, also improved 4.1%. Lower scores were assigned to workplace safety and awareness culture, injuries and prevention. Visit www.wsib.on.ca for the WSIB’s health and safety index report.
water frequently – a cup every 15 to 20 minutes. Avoid caffeine and alcohol, which dehydrate. • It takes time to adjust to working in heat. Increase workloads and heat exposure gradually. • Schedule frequent rest periods with water breaks in shaded or air-conditioned buildings. Heat exhaustion quickly turns into heat stroke, a medical emergency. Ensure workers are protecting themselves by hydrating and keeping cool. The Canadian Centre for Occupational Health and Safety (CCOHS) in Hamilton contributed this article. CCOHS provides information, training, education, management systems and solutions that support health and safety programs and the prevention of injury and illness in the workplace. Visit www.ccohs.ca. Comments? E-mail jterrett@plant.ca.
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AUTOMATION
Faster fastener
WELDING CENTERLINE ADDS TO ITS PATENT FILE High-speed system increases welder throughput, improves weld quality.
Welding System. That makes 82 patents with numerous North CenterLine’s High Speed Fastener System. American and internaor updates to satisfy new aptional patents pending for the auplication conditions, as well as tomation technology company. completely new projects. The new high-speed system BY PLANT STAFF The system uses existing increases operator throughput and new product developments and improves the consistency of enterLine (Windsor) Ltd. has including the following: weld quality. Fastener welding added another patent to its • The SoftMount Gun. This motions and error proofing portfolio. The US Patent and pedestal-mounted fastener are optimized and the system Trademark Office has issued welding gun assembly autoquickly reconfigures for new 9,895,775 for the Windsor, Ont. matically adjusts its position part structures. It also modifies company’s High Speed Fastener to compensate for part-to-part variations in fastener clearance hole locations. Variations “Industrial Transformation can occur with parts that are Begins Here...” hot-stamped and/or have laser ® cut holes. -Han Modular • Proprietary Quick Fastener Placement Units. They feed The biggest transformation the fasteners into position for industry has never seen before welding. • The PinPoint Solution. It accommodates multiple part configurations and orients each style into positions that enable the robot to grip each part for shuttling through the proper welding sequence. CenterLine, a privately held company with nine manufacturing and four service support faHARTING-usa.com
C
PHOTO: CENTERLINE
cilities in the US, Mexico, Brazil, Germany, Romania, India and China, is about to add another plant to the three it operates in Windsor. The 85,000 square-foot site on a five-acre lot includes 72,000 square-feet of manufacturing space and 13,000 square-feet of offices. This new division will manufacture several welding and joining products. The company, which employs more than 1,000 skilled trades and professionals, operates 545,000 square-feet of manufacturing space. It specializes in advanced automation processes and technologies for resistance welding, fastener welding, metal forming and coating. Main customers are OEMs and Tier 1 and Tier 2 suppliers in the automotive, mass transit, aerospace and defense industries in international markets. Comments? E-mail jterrett@plant.ca.
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Korean company makes semi-conductor products
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i-LAN Inc.’s subsidiary, Atria Technologies Inc., has acquired a portfolio of more than 85 patents and applications from MagnaChip Semiconductor Corp. in Cheongju, South Korea. The patents cover semiconductor process technologies used in the
7/30/2018 9:55:18 AM 2018-07-30 12:53 PM
manufacture of semiconductor devices. MagnaChip makes analogue and mixed-signal semiconductor products. Wi-Lan, a Quarterhill company based in Ottawa, is a patent licensing company.
July/August 2018
2018-08-03 12:57 PM
RECORD TECH It’s making records for local musicians and international clients. BY JEFF BROWNLEE
H
e might not have artists like Elton John and Demi Lovato yet, but Gideon Banahene wants to transform his love of music into a Canadian version of an “island records” dynasty. The Prince Edward Island entrepreneur is tapping into the global vinyl record renaissance by putting a high-tech spin on the mastering and production of vinyl in long-play (LP) 12-inch, 10-inch and seven-inch formats while helping the rich talent pool of budding East Coast artists boost their music careers. His company, Kaneshii Vinyl Press – named after a market in Ghana – opened its doors in June 2017 in a Charlottetown industrial park and currently employs four. “There’s a vinyl renaissance taking place not just in Canada, but around the globe,” says Banahene. “And that’s creating a rapidly growing niche market for what we are doing.” Data from the International Federation of the Phonograph Industry backs up his claim. In 2016, revenue from three of the four physical sales categories – CDs (-11.5%), singles (-6.3%) and videos (-4.1%) – fell, while vinyl surged an astounding 23.5% year-over-year to US$563.6 million with 37.5 million units sold, or approximately $15 per unit. Total revenue is far lower than CDs ($3.82 billion), but just shy of videos ($613.3 million). However, revenue from vinyl is ahead of ad-supported audio streams like Spotify ($512 million) and video streaming services like YouTube, ($553 million). An emigrant from Ghana, Banahene first came up with the idea of starting a vinyl pressing business while doing his Masters of Business Administration (MBA) at the University of Prince Edward Island. With the abundance of musical talent
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A stamping disc for the Viryl Technologies record press.
PHOTO: RODNEY DAW
Tapping the LP
RENAISSANCE KANESHII VINYL PRESS FINDS ITS GROOVE IN PRINCE EDWARD ISLAND unique to the Maritimes, closeknit musical community and supportive provincial government, he felt he could make a solid business case for a vinyl press in the province that served Atlantic Canada and beyond. After a wealth of market research, that’s exactly what he and business partner, Ghislaine Cormier did. “The amount and quality of the musical talent here just blew me away,” he says. “It’s really fantastic.” The duo received approximately $175,000 in funding from the Atlantic Canada Opportunities Agency (ACOA) in addition to start-up money from the PEI government. In March, Kaneshii also won a version of the Dragon’s Den put on by RDÉE PEI – the province’s francophone
economic development council. It earned $10,000 in prize money for beating out two other semi-finalists.
Viryl technology The money enabled the company to invest in a 3,000-square-foot bricks and mortar facility in a Charlottetown industrial park as well as purchase the needed vinyl-pressing equipment. Sourcing the best machinery in the industry had the duo looking at Europe, specifically German manufacturers before sourcing a leading-edge record press from Toronto’s Viryl Technologies. The 23-employee company located in Etobicoke has developed what many industry analysts have labelled the best next-generation in technology. Viryl’s vinyl press is completely
automated, reliable, runs on cloud-based software and can be controlled with an iOS app. The price tag is approximately US$195,000. “For us, finding Canadian technology with customer service just an hour flight away was perfect,” says Banahene. “It’s a really top-quality machine.” It’s also fast. It can produce up to 180 records per hour or approximately 1.5 million annually. Kaneshii’s vinyl press hasn’t been running at full capacity yet, but sales growth has been steady and constant to the point where Banahene is looking at expanding to a larger facility, hiring an additional two employees and purchasing another machine. Word of mouth has been responsible for the company’s early success.
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“There’s such close-knit musical community here (Atlantic Canada) and word travels fast,” he says. “We’re starting to get inquiries from record labels now, too, as well as some international interest.” So far, the company has received orders from the US, New Zealand, Australia and more recently, Finland. Serving creative artists around the globe from an island known for red sand and pota-
Kaneshii tag adds some flair in the manufacturing space.
PHOTO: GIDEON BANAHENE
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toes isn’t that difficult, according to Banahene. “We live in a global economy and today we can serve anyone, anywhere in the world,” he says. “The PEI government is extremely helpful.” Part of the reason for Kaneshii’s success is the business mantra that the company is not just a service provider. “We partner with all our clients, providing a complete worry-free, turn-key service,” says Banahene. “We want to be part of their success.” That turn-key service includes complete digital remastering of the audio files if required, as well as assisting customers create final album artwork. A budding independent musician who wants to produce an album can expect a six to eightweek turnaround once Kaneshii receives the audio files. The five-step process includes various quality assurance checks including sending a test pressing to the artist to ensure he/she is completely satisfied. Kaneshii offers packages that start with as few as 100 records, available in a multitude of colours and sizes, but economies of scale really take effect at around 300 copies. Banahene isn’t worried the vinyl renaissance will fade like LPs did in the early 1990s with the introduction of the CD. “Digital music is here to stay – people need their music on the go,” he explains. “But the vinyl renaissance is not solely about the music, it’s about the overall experience and a growing group of listeners who come home from a long day at work, pull out an album, hold the jacket in their hands and drop the needle on the record. And it’s our job to enhance the overall experience for artists and listeners alike.” Jeff Brownlee is the associate publisher of PLANT and CanadianManufacturing.com. E-mail jbrownlee@annexbusinessmedia.com.
www.lappcanada.com
Comments? E-mail jterrett@plant.ca.
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COMPETITIVENESS Optimism about the economy is holding but plunged compared to Q2 last year.
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anada continues to be seen as less competitive when compared with the US and tax weighs heavily in that viewpoint, according to a survey of business leaders by Chartered Professional Accountants of Canada (CPA Canada). The quarterly CPA Canada Business Monitor found 68% view Canada as a less competitive place to invest and do business versus the US, compared to a year ago. This view has changed little from last quarter. Canada’s overall tax burden (29%) was the top reason why. US tax reform was second, referenced by 14% of those surveyed. “Canada’s tax system is fundamental to creating a competitive environment,” said Joy Thomas, president and CEO of CPA Canada. “The survey findings reinforce the need for a comprehensive review of Canada’s tax system, led by an independent expert panel, that would strive to reduce complexities, address inefficiencies, improve fairness and ensure economic competitiveness.” Thirty-two percent of respondents expressed optimism about
Executives cite US trade protectionism as the top challenge to Canada’s economy.
Advantage
AMERICA
EXECS SAY CANADA’S TAX SYSTEM NEEDS AN OVERHAUL
the prospects for the Canadian economy over the next 12 months, essentially unchanged from the opening quarter but down significantly from the 50% of the second quarter of 2017. The top two challenges to the
CONFIDENCE
economy are US trade protectionism (39%) and uncertainty in the Canadian economy (14%). Company optimism sits at 53% and 68% say revenues will increase in the next year. Sixty per cent say profits will increase.
PHOTO: FOTOLIA
Finding skilled people is an issue for 58%. Hardest to fill positions over the past two years were: skilled trades (37%), skilled/IT positions (22%) and middle management (17%). Eighty-three per cent of respondents say Canadians should be warned to reduce personal debt, with 41% contending the level of personal debt is a threat to future demand for their company’s products and services. Surveys were completed by 466 executives with ±4.4% margin of error for a confidence level of 95%. Comments? E-mail jterrett@plant.ca.
down one point from June. Manufacturers report taxes and regulations (65%) as CFIB business index registers a steep drop in July the top cost constraint mall business confidence took a dive in July losing five and a half followed by energy points on the CFIB Business Barometer to 56.8. and fuel (54%), wages This represents the index’s second weakest performance since (53%) and product the 2015-16 resource price crunch and coincide with a fresh round inputs (46%). of trade jitters that burst out after the G7 summit, says the Canadian Factors limiting sales Manufacturing confidence is higher than the sector average. Federation of Independent Business. The group representing SMEs and production growth CHART: CFIB across Canada, including manufacturers, sees new US tariff action on include a shortage of steel and aluminum, Canada’s retaliatory response on a broad suite of skilled (42%) and semi US products and deepening global divisions on trade as likely contributing to a or unskilled (28%) labour, and insufficient domestic demand (36%). souring mood among business owners. An index above 50 means owners who expect their business’ perforConfidence dropped among several sectors led by agriculture (down seven mance to be stronger in the next year outnumber those expecting weaker points to 40.3), with noticeable declines in retail, wholesale trade, transporperformance. An index level of between 65 and 70 suggests the economy is tation and the information sectors. But manufacturing is still positive at 61.9, growing at its potential. Business Barometer Index
SMEs spooked by trade turmoil
S
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PLANT EXPO Mark October 10, 2018 on your calendar Bingemans Centre, Kitchener, Ontario
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EXHIBIT SALES HAVE STARTED AND SPACE IS FILLING QUICKLY! To discuss sponsor and exhibitor options, contact: Jeff Brownlee, Associate Publisher 416-277-8428 jbrownlee@annexbusinessmedia.com
PLNT_JulyAug 2018_AMS.indd 34 PLNT_May2018_PlntExpo_9x12_AMS.indd 1
Ilana Fawcett, National Account Manager 416-829-1221 ifawcett@canadianmanufacturing.com
Presented by:
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8 10:58 AM
TECHCENTRE ELECTRICITY
SUPPLY LINES
Retrofit with HVLS fans, high-speed doors and industrial curtain walls. BY WALT SWIETLIK
Walter joins Fastener’s private label PHOTO: WALTER suppliers.
S
ummer means soaring temperatures, humidity – and utility bills. As such, many plant managers are looking for ways to reduce energy consumption. While streamlining operations net significant gains, retrofitting a facility with products that reduce energy use yield dramatic results. What’s more, in many cases, facility upgrades qualify companies for utility or government rebate programs such as Ontario’s Power Smart Performance Program and Manitoba’s Save on Energy Retrofit Program. With or without air-conditioning, most heat stress-prone spaces benefit from HVLS fans. They use relatively little energy and provide a gentle, quiet breeze. Various studies have estimated a 3.2 to 4.8 km/h air speed creates a cooling sensation of up to 6 degrees C. Technically advanced fans move large volumes of air over an area up to 2,044 square metres. A single HVLS fan can replace as many as 20 floor units, reducing energy consumption and clutter. HVLS fans also help air-conditioning systems work more efficiently. They mix the air, allowing up to a 2- to 3-degree C increase in the AC system’s thermostat setting with no change in employee comfort. Energy-saving benefits are even more pronounced in winter. They move warm air near the ceiling back down to a few feet above the floor where it moves horizontally. The air eventually rises to the ceiling where it’s cycled downward again. This destratification effect creates more uniform air temperature
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BLACKSTONE DEAL
HVLS fans circulate large volumes of air using relatively little electricity.
PHOTO: RITE-HITE
Saving
NEW CHANNEL PARTNER
ENERGY HOW TO REDUCE YOUR PLANT’S UTILITY BILL
with perhaps a single degree difference from floor to ceiling. Facilities equipped with HVLS fans lower the burden on the heating system and reduce energy consumption. For example, in a 2,000-square-metre building with 9-metre ceilings and 21-degree C thermostat set point, HVLS fans would generate approximately $3,620 of savings in Edmonton and nearly $2,500 in Toronto.
High-speed doors HVLS fans are based on slow movement, but high-speed doors depend on fast cycle times that minimize air infiltration be-
Walter Surface Technologies has acquired the Fastenal Blackstone supply agreement and all related inventory from Sundisc Abrasives USA LLC in St. Louis. Blackstone is one of Fastenal’s leading brands of abrasives and welding consumables. Under this deal, the surface treatment technology company based in Montreal will make the private label products for Fastenal, a distributor based in Winonna, Minn.
tween work areas with different climates, such as coolers and freezers. Traditionally, industrial facilities have used heavy, slow-moving doors with high R-values to separate these zones. While it’s true higher R-values mean less energy loss through door panels, there’s a downside. Having a slow-moving door makes maintaining temperature control difficult and hampers productivity, as workers either wait for the door to open or leave it open for extended periods. Furthermore, traditional hardcore doors are susceptible to forklift damage. Unless the damaged door is fixed right away,
Westburne, a distributor of electrical and automation products, is now an authorized channel partner for Endress+Hauser Canada. The German supplier of process measurement and instrumentation has Canadian operations in Burlington, Ont. The agreement leverages the strategic relationship between Rockwell Automation and Endress+Hauser. Westburne, based in Mississauga, Ont., will also handle single source process control solutions for processing industries in Saskatchewan.
SAFETY WEB Superior Glove, an Acton, Ont. manufacturer of industrial safety gloves and protective sleeves, has revamped its website to improve the selection and ordering. Its Glove Selector function narrows the options to find the right protection based on hazard or industry. The site also is also a resource for a range of safety information. Visit www.superiorglove.com.
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there will be substantial energy losses from poor sealing. High-speed roll-up doors and folding doors are often selected as alternatives. They move quickly and help to minimize air infiltration, but some have poor sealing characteristics and many have an R-value that’s too low to prevent frost from building on the door panel surface. Defrost systems alleviate this problem, but cost $10,000 or more per year to operate. Significant improvements to rollups include the use of insulated door panels that provide a high enough R-value to avoid needing expensive panel defrost systems. The fastest roll-up doors operate at 2.5 metres per second, a rate that minimizes air infiltration and ensures optimal productivity. Newer upward-acting doors also incorporate a perimeter thermal air seal for added energy savings.
Curtain walls Flexible fabric curtain walls are becoming increasingly popular for plant operations because they’re multi-functional and provide flexibility. They install, dismantle and re-install quickly and easily. A fabric curtain wall is an alternative to a conventional wall in almost all non-load-bearing applications. The walls install as stationary systems or sliding units and come in insulated and non-insulated versions. They maintain a temperature delta of 8, 15 or 22 degrees C. Commonly used in cold storage facilities to create temperature zones, they’re routinely used to create treated air space in warehouses or plants to improve employee comfort, and control temperature or humidity levels to protect equipment and processes. Given the scale of a large plant or warehouse, the cost of energy wasted is significant. Retrofitting a facility with HVLS fans, high-speed doors and industrial curtain walls will deliver thousands of dollars (or more) in annual energy savings.
LEADING EDGE Innovative ideas for plants
HOW’S YOUR SERVICE?
Turn it into a profit centre If you are a manufacturer of plant machinery and equipment, there’s money to be made on the service side beyond break-fix repair, according to an IFS study. The global enterprise software vendor (Canadian office in Waterloo, Ont.) polled more than 200 North American small, medium and large companies from a range of sectors, and found a direct link between service maturity and profit. Most manufacturers (62%) involved in planned maintenance or service contracts reported profitable operations. But almost 40% of those involved in break-fix repair reported problems due to inefficient back-office processes for warranty management. The report also shows how the service market beaks down: • 38% serviced only products, with no aftermarket or other service revenues. • 19% serviced products and some aftermarket service parts. • 15% serviced products and aftermarket field service through break-fix repair. • 16% sold planned maintenance contracts with service level agreements (SLAs). To access the white paper, click on www.ifsworld.com and search Industrial Servitization and Field Service Technology.
Service maturity links with profit.
MAINTENANCE ON MINDSHARE
Assess machinery condition, plan ahead
Walt Swietlik is director of customer relations for Rite-Hite, a manufacturer of docking systems, high-speed doors and other in-plant products. Visit www.ritehite.com.
Comments? E-mail jterrett@plant.ca.
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Eye on a smart factory.
PHOTO: FOTOLIA
PHOTO: SENSEYE
Thanks to a partnership with Siemens, the German industrial technology company, manufacturers now have access to Senseye’s condition monitoring and prognostic software. Senseye, a UK-based provider of predictive maintenance analytics, will receive and analyze data from machines connected to MindSphere, the Siemens open cloud environment IIoT operating system. The software automatically assesses the condition and remaining useful life of thousands of industrial machines. Scheduling of maintenance activities will be more accurate without additional sensor or application investment, specialist staff or training. www.senseye.io
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MAKE A SMART CONNECTION
CNC data in real time
WireFreeCNC, a Somers, Conn. provider of data-focused applications, has come up with a way to connect with shop floor CNC data in real time, no matter what brand of machine. Its Excellerant API will connect all of your CNC machine tool controllers and send data to the MES and/or ERP systems. Excellerant API is easy to use across work groups and operational levels. Machine operators communicate problems, request assistance and report progress at the touch of a button. Supervisors and managers assess a host of useful dimensions such as cycle time, downtime and process status by job, machine type, and operator; while executives run reports in real time for timely assessments of progress, capacity and bottlenecks, delivering more accurate forecasts and dynamic scheduling. www.excellerant-mfg.com
Xplore on the plant floor. PHOTO: XPLORE
Easy to use across work groups.
PHOTO:WIREFREECNC
RACK ’EM UP
You configure carton flow UNEX Manufacturing Inc. has developed a tool for manufacturers who prefer to configure their own carton flow. The Lakewood, NJ company’s Configurator generates a 3D image and bill of materials for a custom Span-Track solution from the ground up. Users input dimensions to match the racks, plus the name of the pallet rack beam manufacturer and type of upright needed. Next, the number of levels, types of rack and end-style are added. Clicking on “send me my design” generates the 3D image with a bill of materials, and UNEX generates a quote based on the design. The company claims a 50% gain in warehouse use, a reduction in carton imprints with 300% more surface area than other roller track options, and increased throughput of up to 150%. www.unex.com/unex-configurator
HIGH PERFORMANCE, RUGGED COMPUTING
Xplore’s three compatible Windows 10 mobile devices Technicians and production operators performing their smart manufacturing chores need mobile computing power that withstands the rigours of the plant floor. Xplore Technologies Corp., an Austin, Tex. supplier of rugged computers, gives them a choice of three compatible models with its L10 mobility platform. These 10.1in. Windows 10 devices include: an XSLATE L10 slate tablet; an XPAD L10 tablet with a hard handle and built-in barcode scanner option; and the XBOOK L10 2-in-1 laptop/ tablet with a companion keyboard and kickstrap. They’re equipped with a range of high-performance Intel processors and a 4G LTE card that boosts data download speeds up to 600% and upload speeds up to 300% over previous generations. I/O ports, including standard RJ-45, two USB 3.0, USB-C ports and optional True Serial and HDMI-in, connect to legacy and future technology systems. www.xploretech.com
www.plant.ca
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3D Configurator image.
PHOTO: UNEX
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Loads of up to 120,000 lb.
MLT heavy-duty hydraulic lift tables from Presto ECOA handle extreme high-capacity loads of up to 120,000 lb. (96,000 lb. end/ side capacity). They’re stabilized with rectangular structural tube scissor legs and torque tubes with minimal deflection, even under extreme loads. Four scissor leg configurations include: one set; two sets, side-by-side; two sets, end-toend; four sets, two-by-two. A hand pendant or foot switch control lift and lower. Other features include an upper travel limit switch plus eight mechanical back-up stops, dual safety restraint maintenance bars, cylinder rod end protectors, a flow limiter valve at cylinder bases,
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Siemens has expanded its drive portfolio for servo applications to include the Simotics S-1FG1 servo geared motors for use with the Sinamics S120 drive system, components of the German industrial company’s Totally Integrated Automation (TIA). Pre-fabricated motion-connect signal and power cables connect
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and double wire braid pressure hoses. Lifting heights range from 52 to 92 in. Outfit each of the 45 models with a range of standard platforms from 4 x 6 ft. up to 10 x 22 ft., but larger/custom sizes are available. Presto ECOA makes lift products in Norton, Mass. www.prestolifts.com
AGV TRANSFERS PARTS BETWEEN WORKSTATIONS Creform Corp. developed bi-directional AGVs for an automotive supplier with dual-conveyor decks that act as a transfer vehicle between worksta- Travels 50 m/min. tions. Parts are transferred off both sides of the two conveyor decks to preserve load orientation. The top deck transfers them to the next step in the manufacturing process, while the lower deck returns two empty pallets to the line. Covered conveyor sections
the components. The units have electronic rating plates and the motors are connected via the Drive-Cliq system interface for coming online quickly. Engineering of the Simotics S-1FG1 includes high efficiency and low torsional backlash for precise, dynamic motion sequences. Versions include helical, parallel shaft, bevel and helical worm gearboxes with up to 25 transmission ratios, according to the type of gear and gear size required. Use them in a number of demanding motion control applications such as printing and packaging machines, storage and retrieval machines, material handling conveyor systems and dosing pumps. Siemens Canada is based in Oakville. Ont. www.siemens.com/ca
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help keep carried parts clean, while removable panels provide access for easy maintenance. Drip pans under each conveyor ensure no process lubricant drips on floor. Photocells along the AGV’s path for slow-down and stop functions also secure load verification while the AGV is travelling. Any load shift is detected and will stop the AGV. And mechanical load-safety stops drop down when pulling into stations to allow transfers and they rise when leaving the transfer point to ensure the load is secure. The FH-B50066 bolt-on AGV drive unit (pictured) follows a magnetic guide path independently to ensure accurate and repeatable movement at up to 50 m/min. and can carry up to 660 kg. Floor positioned RFID tags are used for routing, speed changes and view changes from the obstacle sensor. Creform makes material handling products in Greer, SC. www.creform.com
AUTOMATION REMOTE I/O ADDED TO BRX MICRO PLC LINE
256 points per remote rack.
AutomationDirect has added remote I/O capabilities to its BRX Micro PLC products that open up thousands of points to the system. Each unit expands with up to eight I/O modules providing up to 256 points per remote rack. Six controller versions work seamlessly with Do-more! systems, DirectLOGIC ERM modules or any Modbus Client/ Master device. Supported protocols include Do-more! Ethernet Remote I/O, HOST Ethernet Remote I/O, Modbus RTU and Modbus TCP.
www.plant.ca
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Add more than 4,000 discrete and 1,000 analogue I/O points using the native protocols. All units have a built-in 10/100 Mbps ethernet port. Modbus I/O units also have an onboard RS485 port with removable 3-pin connector. Both 120-240 VAC and 12-24 VDC units are available. The AC units include an integral 24 VDC auxiliary output power supply. AutomationDirect is a distributor of industrial automation products based in Cumming, Ga. www.automationdirect.com
FABRICATION TOOLS FOR ANY ROBOT Look for versatility from power-pack robot machine tools made by Suhner Industrial Proucts. They’re compatible with all robotic manufacturers’ machines. Programmable touch forces Interactive surface racking. of the active flange and interactive surface tracking allows operations previously not suitable for automation. Other features include programmable process forces, balanced tolerances (shapes) and reduced programming time and effort for complex parts. Tools are easily integrated for brushing, polishing, filing, belt sanding or tool spindles. Suhner, based in Rome, Ga., makes robotic equipment. www.suhner.com
PRESS POSITIONS WITH PRECISION, SPEED R&B Machining Inc.’s all-electric, servo technology presses for automated cells load dies from the front or back of the machine. Four standard models with 15-, 30-, 50-, and 100-ton capacities are controlled with a standard Allen Bradley or optional Siemens PLC.
ELECTRONICS NEW TEEPLUG VERSIONS
More compact. Digital control.
Control is digital, ethernet-based with advanced diagnostics, maintenance reminders, and available production information. Robust machine actuators balance precision positioning with speed while providing costeffective screw life. There’s no need for hydraulic oil resulting in lower daily power consumption with the power on demand feature. Options include quickchange die features, interlocked safety maintenance blocks, die sensors, and lubrication system. R&B Machining makes tube and forming equipment in Wilmington, Ohio. www.rbmachining.net
REPLACEMENT TIPS LAST LONGER
Secure clamping.
Walter USA LLC has built long tool life into its D4140 replaceable tip drill. Precision coolant is delivered directly to the cutting edge, avoiding thermal shocks to the edge. And its 100-degree prismatic insert seating for the P600x Xtra·tec Point inserts provide secure clamping for precise, high-quality holes. The drills come in 3 x D, 5 x D and 7 x D and in 0.47 in. to 1.26 in. (12 to 31.99 mm) diameters. Walter is a Waukesha, Wis. manufacturer of metalworking tools. www.walter-tools.com/us
Techno’s mini-TEEPLUG Connectors come in four- and fivepole configurations, in addition to the three-pole version. These new connectors have an IP68-NEMA 6P rating and are more compact, with a diameter of 23 mm. ITC Electrical Components is a master distributor of electrical components based in Concord, Ont. www.itcproducts.com
TEST & MEASUREMENT GET THE RIGHT THERMAL SHOT The FLIR E85 thermal imaging camera spots overheating joints and parts before they interrupt operations or cause safety hazards. Its 24-degree lens has a 4-in. touchscreen with scratch-resistant Dragontrail cover glass and fast, responsive interface. Interchangeable wide to telephoto range lenses (including 14-, 42-degree) will get the right Interchangeable shot. lenses. Each lens sets up to auto-calibrate using AutoCal for quick swapping in the field with little downtime. ITM Instruments is a supplier of test and measurement instruments with offices across Canada. www.itm.com
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PRODUCTS AND EQUIPMENT ACTUATORS ACTUATOR REPLACES HYDRAULIC CYLINDERS
Rated for extreme conditions.
Prevent Over-Lubrication Monitor grease usage & costs with the Ultraprobe ® 401 Grease Caddy Pro.
Tolomatic’s RSX080 actuator for pressing, punching, stamping, riveting, fastening, joining, injection moulding and sawmilling replaces hydraulic cylinders, delivering forces up to 18,000 lbf (80 kN). Its heavy-duty construction includes tie rods and Type III hard-coat anodized aluminum or zinc-plated steel. A standard anti-rotate feature prevents the rod from rotating without external guidance. Rated IP65 with an IP67 option, the actuator resists water from a light washdown and dust from outdoor environments. The actuator is also rated for extreme conditions including cold-weather operation. A food-grade version is made of 316 stainless steel and foodgrade white epoxy. Tolomatic is a supplier of electric linear actuators, pneumatic actuators and power transmission products for factory automation based in Hamel, Minn. www.tolomatic.com
TOOLS
“The smart way to grease”
GRINDING FOR ALL OCCASIONS
Learn how: www.uesystems.com/GC71
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Tel: 1-800-223-1325
High removal rates.
2018-07-31 9:13 AM
PFERD’s vitrified and resin bonded mounted points tackle a range of surface and edge grinding of materials from stainless steel and cast iron to exotic alloys. Grain types, grit, and bond harnesses come in a range of sizes and shapes, providing highstock removal rates, high-edge holding, dimensional stability and cool grinding to reduce the thermal load on the workpiece. They’re available in a variety of abrasive grains and blends, including ceramic-oxide mounted points for use in aerospace applications. PFERD Inc. is a manufacturer of abrasives, brushes and power tools in Milwaukee. www.pferdusa.com
COMPRESSED AIR AIR WIPE HANDLES SMALL DIAMETERS EXAIR’s 3/8-in. Super Air Wipe produces a 360-degree airstream that blows off, dries, cleans or cools material. The split design clamps around continuously moving material such as wire, cable, pipe, hose and extruded shapes. Slotted nozzle It ejects a small amount of compressed air through a thin slotted nozzle that pulls in high volumes of surrounding room air. The airflow uniformly ejects from 360 degrees of its inner diameter. Coupling brackets latch together or can be removed quickly. Use additional shims if more blowoff force is required. Air velocity varies with a pressure regulator and instant on/off control. Air consumption is 11.1 scfm at 80 psig and the sound level is low at only 82 dBA. Super Air Wipes are CE compliant and available from stock in aluminum and stainless steel in diameters from 3/8 in. (13 mm) up to 4 in. (102 mm). Large diameters up to 11 in. (279 mm) are available from stock in
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aluminum. Applications include wiping wire; drying inks; cooling hot extruded shapes; and blowoff of water, plating, coatings and dust. EXAIR Corp. is a manufacturer of compressed air products in Cincinnati. www.exair.com
PUMPS NEW ADDITIONS TO NEMO FSIP PUMPS
Six sizes.
NETZSCH Pumps North America has added to its FSIP (full service-in-place) line of NEMO progressive cavity pumps. They come in six sizes (NM045 to NM105) for flow rates up to 700 gpm with differential pressures up to 90 (one stage) to 180 psi (two-stage) in S, L, D and P geometries. The housing opens to dismantle and reinstall rotating parts without having to remove the pump from the pipe assembly or disconnecting the wiring. The rotor-stator unit lifts out without special tools. NETZSCH Pumps & Systems makes pumps in Exton, Pa. www.netzsch.com
ELIMINATOR REMOVES OIL VAPOURS Mass-Vac Inc.’s MV oil mist eliminators (sizes for pumps from 5 to 300 cfm) remove harmful vapours from lubricated vacuum pump exhaust streams.
EVENTS IMTS 2018 AMT Sept. 10-15, Chicago The International Manufacturing Technology Show (IMTS) 2018 presented by the Association For Manufacturing Technology (AMT) with more than 2,400 exhibitors. Pavilions will cover metal cutting; tooling and workholding systems; fabricating and laser; abrasive machining/ sawing/finishing; controls and CAD-CAM; EDM; gear generation; machine components/ cleaning/environmental; and additive and quality assurance. Visit www.imts.com.
Send events to jterrett@plant.ca.
www.plant.ca
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Microfibre-glass coalescing filter elements with a 0.1 micron pore size provide almost 100% efficiency. There are four models: VisiMist (clear housing) and Midi-Mist 4-in. Almost 100% efficiency. diameter that use one filter; the Midi-Mist 8 in. that has three filters, and Maxi-Mist 10, which has five. They also configure to recover or recirculate pump fluids. Mass-Vac is a North Billerica, Mass. provider of vacuum pump services. www.massvac.com
Industrial Literature Review CABINET COOLERS END COSTLY SHUTDOWNS A manufacturer of enclosure cooling systems prevented the loss of future production and eliminated downtime. Could this type of cooling be suited to your environment? Learn more about how cooling systems can help your production stay up and running. Download EXAIR’s latest white paper, “Cabinet Coolers End Costly Shutdowns.” techelp@exair.com www.exair.com/18/ccecs18lf.htm EXAIR CORP. EXAIR Corporation
Plantware
Managing shop floor business.
PHOTO: FOTOLIA
ERP 4.0 FOR SMES Many ERP systems are heavy on the accounting but don’t offer a lot of functionality for managing and controlling the shop floor environment. Adion Systems, the Vancouver-based developer of ProShop software, aims to change that. Integrated modules manage typical ERP operations and also include MES and QMS functions such as ISO-9000, AS9100, API and ISO 13485. Developed by the company founders in 1997 for use in their precision job shop, it has evolved into a web-based shop management system for small to medium manufacturing companies. The software handles front office activities such as estimating, quoting and purchasing, but includes MES and QMS control, monitoring and collection capabilities. MES functionality includes tracking machine use, cutting tool management, media-rich work instructions, part inspection data, plus integration with coordinate measuring machine data. The program is hosted in the cloud or at the manufacturer’s site. www.adionsystems.com
HANNOVER MESSE USA 2018 HANNOVER MESSE Sept. 10-15, Chicago The HANNOVER MESSE USA premier will feature the latest trends and developments in Industry 4.0 and industrial digitalization. Visit https://hannovermesseusa.com.
Pack Expo International 2018 PMMI Oct. 14-17, Chicago Advanced packaging equipment, materials, containers, automation technologies and other supply chain solutions. Visit www.packexpointernational.com.
2018 MainTrain Conference PEMAC Sept. 24-27, Ottawa Annual professional development conference for asset management, maintenance and reliability professionals. Presentations by experts, practitioners and professionals from across Canada and around the world. Hosted by the Plant Engineering and Maintenance Association of Canada (PEMAC). Visit www.pemac.org/conference.
Physical Asset Management Program U of T Nov. 5-9, Toronto Offered in partnership with the Faculty of Science and Engineering at the University of Toronto, St. George campus. Taught by two world-class instructors. Features fundamental need-to-know material combined with proven, leading-edge approaches that have shown measurable payoffs. Visit http://learn.utoronto.ca.
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POSTSCRIPT
Setting global benchmarks in advanced manufacturing BY JAYSON MYERS
W
“THE SUPERCLUSTER WILL INVEST APPROXIMATELY $200 MILLION OVER THE NEXT FIVE YEARS IN INDUSTRY-LED COLLABORATIVE PROJECTS...”
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hat do the world’s leading companies in the fields of manufacturing analytics, smart textiles, unmanned aircraft systems, mobile robotics, point-of-care medical diagnostics, human-computer interaction and customized advanced automation systems all have in common? Many things, actually. Leaders in their fields, they’re helping to redefine the business of manufacturing by combining new technologies with state-of-art production capabilities. These relatively small companies, rapidly scaling up to take advantage of global business opportunities, all face similar challenges in acquiring the talent and the capital they need to grow. More to the point, they’re all Canadian and just some of the partners in Canada’s Advanced Manufacturing Supercluster that also includes many leading automotive, steel, food, wood products, advanced materials, aerospace and equipment manufacturers. They’ve come together to leverage each other’s capabilities to improve competitiveness, develop new customer solutions, and grow their businesses at home and around the world. When the federal government announced funding for five superclusters earlier this year, it recognized Canadian industry needed to step up its game when it comes to research and innovation. This means scaling up and commercializing technologies developed in Canada, improving productivity through the adoption of advanced technologies, and developing the infrastructure and skilled workforce required for strong economic growth in the face of intense competition and rapid and disruptive technological change. Next Generation Manufacturing Canada, an industry-led, not-for-profit organization, will lead Canada’s Advanced Manufacturing Supercluster. We want to see Canadian companies set world benchmarks in competitiveness and growth. To that end, we will work to strengthen collaboration, build capacity, and support the efforts of a wide range of manufacturers, technology companies, academic and research organizations, business networks and public sector agencies. We’ll need to address some critical challenges along the way, beginning with a general lack of awareness about what manufacturers and technology companies are actually doing, what they need to succeed, and what resources and capabilities are currently available to help them grow. The supercluster will help to identify technology capabilities, map out the assets in our research
and training infrastructure, and allow companies to connect more readily with the resources and partners that will help de-risk technology adoption and scale-up. Facilitating connections between manufacturers and technology companies is an important part of the supercluster’s role. So too is streamlining access to applied research, training programs, and technology demonstration and pilot centres that will help manufacturers take new technologies from prototype to full-scale manufacturability. Supercluster members will also have access to a suite of tools and programs that will improve technology management, de-risk the adoption and scale-up of advanced technologies, and facilitate access to international supply chains. Some of the programs we have in mind include: benchmarking tools, technology visits, and strategic learning events; support for process audits, technology assessments and feasibility studies; and access to modelling, testing, pilot and training centres. The supercluster will invest approximately $200 million over the next five years in industry-led collaborative projects. Initiatives we fund will be determined by their potential to position Canadian industry at the forefront of global manufacturing. This includes creating new collaborative knowledge and technology supply chains, expanding customers for Canadian technologies, and strengthening technology training and testing capabilities. The Advanced Manufacturing Supercluster was built initially on the concentration of technology and manufacturing strengths resident in southern Ontario, but manufacturers, technology companies and supporting organizations from across Canada are encouraged to engage in our collaborative activities. We’ll be counting on the advice of industry as we shape our support programs and work to align research, education and public policy priorities across the country. All supercluster members will be able to take advantage of our programs, propose collaborative projects and apply to participate as partners or co-investors in our projects. Stay tuned. Jayson Myers is the CEO of Next Generation Manufacturing Canada. The award-winning business economist and advisor to private and public sector leaders was president and CEO of Canadian Manufacturers & Exporters between 2007 and 2016. E-mail jayson.myers@ngmcanada.com. Visit www.ngmcanada.com. Comments? E-mail jterrett@plant.ca.
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