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May 15, 2012 by Kendal White

Encouraging Insourcing to Revive the Economy

‘Made in America’—how important is it?

It’s no secret that American manufacturing has struggled since the late 1990s. We’ve seen massive layoffs and a growing trend to outsource jobs overseas—with some companies moving more than 90% of their manufacturing to countries in Asia or South America. But there is hope on the horizon. Over the past two years, the manufacturing industry has regained some of its former strength and added more than 400,000 jobs here at home.

The White House has turned its focus towards domestic manufacturing. In his State of the Union Address earlier this year, Obama advocated that insourcing would stimulate economic recovery. Companies like Ford, Honda, General Electric, Caterpillar and Intel have already moved plants back to the US, and the current administration encourages other American companies to follow suit.

“To create an economy that is built to last,” Obama announced, “we must ensure that the next generation of products are not only invented here, but manufactured here as well. Right now, companies get tax breaks for moving jobs and profits overseas. Companies that choose to invest in America, they get hit with one of the highest tax rates in the world. Does that make any sense? It’s time to stop rewarding businesses that ship jobs overseas.”

To encourage insourcing, the Obama administration proposed tax incentives for companies that return jobs to American workers. The White House also introduced the National Network for Manufacturing Innovation, intended to accelerate innovation by investing in manufacturing technologies. By bringing together industry, educators, and federal and state agencies, the network aims to

Bridge the gap between basic research and product development
Provide shared assets to help manufacturers access cutting-edge capabilities and equipment
Educate and train students and workers in advanced manufacturing skills

With a united effort to reshore, it looks like the tides will turn for American manufacturing. Based on a recent survey, economists predict that one third of American companies worth $1 billion or more will bring back manufacturing plants that moved overseas during the past two decades. The outsourcing trend may be losing steam as our technology improves and domestic manufacturing becomes a more viable option.

Check out UniTherm’s American-made insulation jackets that help manufactures save significantly on energy costs.

May 11, 2012 by Kendal White

Manufacturing Matters: 5/11 Weekly Wrap Up

The New York Times reports that manufacturing is “one of the few bright spot of the recovery, restoring 489,000 jobs since the beginning of 2010.” The article also describes geographic distinctions in growth, with half of the most manufacturing-specialized metropolitans now located in the Midwest.

Plastics News reports that in California a controversial pro-plastics lesson has been removed from a new statewide curriculum on the environment. After the EPA looked over the proposed curriculum, the section titled “Advantages of Plastic Shopping Bags” was replaced with recycling statistics in an 11^th grade textbook.

image from flickr

ICIS News announces that researchers at technology company Siemens have developed an alternative to ABS plastic. The new material—made with 70% renewable content—is the result of a three-year project funded by the German Research Ministry and was successfully used to make a vacuum cleaner cover.

image from icis.com

GreenBiz examines the Sustainability Leadership List, which recognizes environmentally-conscious companies each year. But because some criticize the results, they also discuss plans for the Global Initiative for Sustainability Ratings that would develop a standardized method of measuring and ranking sustainability performance.

Plastics Today recognizes Dignity Health, the founding sponsor of the Healthier Hospitals Initiative, as one of the first hospital groups in the country to start using pigment-free patient plastics. This California-based healthcare organization is a leader in sustainability efforts to reduce hospitals’ impact on the environment by adopting innovative alternatives.

May 4, 2012 by Kendal White

Manufacturing Matters: 5/4 Weekly Wrap Up

Another great week ripe with industry news. Here are the highlights:

Plastics News reports that the shortage of nylon 12 has led the auto industry to seek alternatives resins to use in fuel lines, connectors, tubes, and other key components. Molders and resin makers have offered a variety of possible alternatives, and automakers have established a system to begin testing.

The Huffington Post addresses the current the job market as US Congressional Candidate Stacey Lawson proposes a plan for creating jobs and rebuilding our middle class. Lawson stresses that we can by reclaim the American dream by “restoring the high-wage jobs that are the foundation of a sustainable economic recovery,” and she lays out 7 priorities to help us get there.

Clean Technica overviews the Department of Energy’s voluntary energy savings specifications designed to help building owners, operators, and manufacturers develop minimum performance requirements. The DOE recently released new specifications for lighting troffers and parking lot lighting, which could reduce energy use by 40%.

image from cleantechnica.com

Industry Intelligence announces a new compostable bioplastic film that extends the shelf life of fruits and vegetables by up to five days. The new film, developed by Sira-Flex Resolve, creates an ideal atmosphere to better preserve stored food.

image from flickr, courtesy of I-5 Design & Manufacture

And in a free webinar, Design World discusses how Design for Manufacturability (DDM) eliminates many restraints associated with conventional manufacturing. The webinar examines how DDM can create plastic parts, layer-by-layer without machining, molding, or casting.

If you like the Weekly Wrap Up, follow our blog to receive more updates and industry news every Friday.

April 27, 2012 by Kendal White

Manufacturing Matters: 4/23 Weekly Wrap Up

It seems there is always so much exciting industry news, so we welcome you to our first of many weekly wrap ups.

The Economist says we have entered a third industrial revolution. With the advent of additive manufacturing and the refinement ofrobots, we can glimpse the future of factories. As manufacturing goes digital, we see new processes emerging that are vastly different from the 20^thcentury assembly lines.

image from economist.com

MIT discusses whether increasing complexity in engineered systems warrants a new approach to safety and testing. MIT professor Nancy Leveson claims that our modern, ever-evolving systems are more vulnerable to accidents, and she advocates a holistic, sum-of-its-parts approach over traditional safety engineering practices.

available at amazon.com

The Huffington Post poses the question, is Obama getting serious about manufacturing? Huff Post says that if the government acknowledges manufacturing as a stable and productive industry—a “uniquely important sector”—that support can benefit the broader economy and build a stronger country.

GE discusses the “robust renaissance” of manufacturing “fueled by new technologies, software, innovation, and lower energy costs” and posts a great infographic highlighting industry growth and the power of insourcing.

Envision Plastics announces the partnership between Alpha Packaging and Arla Foods, a partnership aiming to eliminate landfill waste with a zero-carbon facility. To launch the sustainability strategy, Alpha Packaging will produce milk bottles with 50% recycled material. Arla Foods recruited Alpha to mold and handle the bottles on site with two goals in mind: consuming the lowest amount of energy possible and creating the most environmentally advanced dairy in the world.

image from envisionplastics.com

Metal Architecture says that reducing factory footprints is not only environmentally friendly, but economically smart as well. Building owners who focus on decreasing carbon emissions and reaching LEED standards enjoy numerous benefits: improved image and marketability, greater employee engagement, higher renter rates, and more incentives.

We hope you enjoyed our first edition! Keep checking in for more industry updates from the top news sources.

March 20, 2012 by Kendal White

Less is More and Lean is Better: Managing Inventory in Manufacturing

The concept of lean manufacturing is simple. Much like a diet for your facility, the goal is to reduce your waste (like you would your waist) for healthier operations. It’s not about starving your business because, let’s face it, you can’t run a marathon or outlast competitors without proper sustenance. Lean strategies are about taking in only what you need and making the most of it—kind of like politely pushing away a plate of food when you’re full rather than stockpiling calories for a later date.

Now I know by March many of our weight loss resolutions have run their short-lived and often unfulfilled courses, but it’s always a good time of year to take on a new style of inventory management.

How manufacturers manage inventory
Many manufacturers produce products in large runs, even when the demand for that product is low. Products are stored or kept in inventory until they are eventually sold, which often leads the manufacturer to overspend on storage. When production runs are too large, manufacturers run the risk of filling inventory with products that might become outdated and remain unsold.

Why lean strategies are more efficient
A crucial component of lean manufacturing involves controlling inventory by reducing excess production. This means implementing a system for monitoring inventory and producing products in smaller runs rather than keeping excess inventory in storage.

Wait, it takes time and money to modify the way you manage inventory and thin out the production line. But just like dropping a few pounds, the payoff doesn’t occur overnight. Soon enough, the savings from storage costs and unnecessary waste will find their way to the bottom line. It’s well worth the change—just ask Toyota, Boeing, Caterpillar, and Xerox.

Not only will lean strategies lower your overhead costs, but they will also challenge your employees to think critically to improve existing procedures. No reason to keep things the way they are just because—hopefully your facility is always on the look out for more efficient ways to operate. Plus, you won’t have to feel that little pang of guilt as you throw away perfectly good products because of bad timing.

October 19, 2011 by Kendal White

Machine Safety: There is a Return on Your Investment

According to OSHA six million workers suffer non-fatal injuries every year in the US – costing businesses over $125 billion. Despite this number, some safety professionals and risk managers still struggle to justify investments in safety programs, training, and assets.

Calculating the ROI (return on investment) for safety is possible, and Liberty Mutual and the American Society of Safety Engineers calculate that on average the ROI for for safety programs is between $3 – $5 for every $1 spent. For most safety personnel the question is not so much is there a true ROI – but how to calculate it. Rockwell Automation’s Proving the Value of Safety whitepaper by Lyle Masimore details the steps to follow to create a safety investment analysis for your organization. [Read more…]

October 7, 2011 by Kendal White

Plastics Manufacturing Insulation Jackets – Site Visit, Manufacturing, Install, and Support

At UniTherm International it is our goal to provide outstanding experiences and solutions for our customers. If you are in the plastics industry this post can serve as a guide to the process of outfitting your facility with UniTherm products. [Read more…]

October 4, 2011 by Kendal White

6 Steps to Building a Plastics Manufacturing Safety Program You Can Be Proud Of

Plastics is one of the most massive manufacturing industries in the US. According to Bonnie Limbach, chief communications officer with The Society of the Plastics Industry (SPI), “The industry accounts for more than $330 billion dollars in annual shipments with another $89.5 billion generated by upstream, supplying industries, bringing the total annual shipments to nearly $421 billion. Nationally, the plastics industry employed more than 1.5 million workers in 2000. Another 843,300 persons were employed by upstream suppliers of the plastics industry, bringing the employment impact to nearly 2.4 million – about 2 percent of the U.S. workforce.” It does not seem that economic downturn or global recession will severely diminish consumer and OEM demand for plastics in all shapes, sizes and formats. [Read more…]

September 9, 2011 by Kendal White

Untapped Energy Savings in Process Heating

Almost all industrial facilities use some form of process heating, but most companies, even those with strong energy management programs, often overlook the huge potential for energy savings in hot industrial processes.

Industrial facilities make up nearly one-third of the nation’s total energy consumption and according to a recent Department of Energy study, plants with hot processes stand to save 5 – 20% on energy costs by implementing process heating system best practices.

Taking proper steps to reduce heat loss from process equipment, tanks hoses or pipes that reach temperatures of 250°F can significantly reduce energy costs in multiple ways. In many processes, temperatures often exceed 500°F requiring significant amounts of energy to maintain process temperatures and cool a facility’s ambient air temperature. For manufacturers that continuously operate production equipment, the potential energy savings increase exponentially.

The easiest and lowest-cost method of of eliminating energy waste in hot industrial processes lies in insulating process equipment, hoses and hot air ducting. UniVest systems by UniTherm are custom insulation jackets designed to snugly fit equipment and direct heat where it belongs – inside high temperature equipment. [Read more…]

September 1, 2011 by Kendal White

Building Blocks of Energy Efficient Production

For most of us, Legos bring back fond childhood memories (or slightly less fond memories of walking barefoot through our kids’ rooms). Whatever we think of, it usually isn’t energy efficiency. Early this spring, the building block giant received the Arburg Energy Efficiency award for outstanding commitment to energy efficiency.

The 80 year old injection molded plastic toy company introduced its energy and environmental management system in 2007. In the first three years, the company increased energy efficiency by 35% and aims to improve efficiency by an additional 5% each year according to shareholder reports.

Shooting for 100% operation from energy renewable sources by 2020, Lego made significant strides reducing energy and water consumption. The company, more profitable than ever before, recently announced a switch to FSC certified packaging to further reduce its carbon footprint.

In celebration of the toymaker’s inspiring attitude and actions towards energy efficiency – and because we think they’re just too cool not to share – we’ve gathered some of our favorite industrial Lego goodies from around the web. [Read more…]

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