Day: September 14, 2015

Global Competition Requires New Strategies

Not so long ago some were predicting the death knell of U.S. manufacturing. As the recession brought Detroit’s Big Three to their knees, put the brakes on consumer spending, forced massive layoffs and shuttered cash-strapped plants across the country, American manufacturing seemed to be in its death throes. But as they say, what doesn’t kill us makes us strong. Strong competitors assimilated weak ones. Loose financial and operational practices were tightened. Costs and expenses were pared down. From the assembly line to the board room, American manufacturers are running a tighter ship — and it seems to be paying off. Manufacturing declines have been slowing since December. In July new orders resulted in the biggest production jump in more than two years. Customers are beginning to restock and assembly lines are running again. The light at the end of the tunnel is getting brighter; but there is concern that unless U.S. manufacturers make major changes to their business model, the light could still go out. 

A recent national study found U.S. manufacturers distressingly unprepared to compete in an increasingly global economy. Conducted by the American Small Manufacturers Coalition in conjunction with Manufacturing Extension Partnership, the Next Generation Manufacturing Survey polled more than 2,500 U.S. manufacturers. The report identified six essential next generation strategies manufacturers must adopt to compete successfully in global markets:

  • Customer-focused innovation
  • Talent recruitment, development and retention
  • Systemic continuous improvement
  • Supply chain management and collaboration
  • Sustainable product and process development
  • Global engagement

More than 25% of American manufacturers — over 90,000 firms — were considered at risk because of their inability to meet world-class achievement levels in any of the six strategies. Unless U.S. manufacturers are able to adopt next generation strategies, America may not be able to compete in global markets.

Will Cap-and-Trade Spell Disaster for U.S. Manufacturers?

“Clean Energy Act Could Force Nearly 20 Percent of Manufacturers to Close” screamed the breaking news headline in the July 2, 2009 Special Edition of Manufacturing & Technology eJournal. According to the results of an informal reader survey conducted by the magazine, President Obama’s proposed cap-and-trade energy conservation program “could cause energy costs to skyrocket and fuel more unemployment.”

“More than 17 percent of those who answered [the survey] said they would have to shut down their business because there is no way they could handle the kinds of increases being predicted,” the magazine said about reader comments received on environmental strictures proposed by the Waxman-Markey climate change bill recently passed by the U.S. House of Representatives. Nearly 1,000 readers responded to the Manufacturing & Technology survey, indicating the volatility of the cap-and-trade issue. Besides shuttering their businesses, readers warned that meeting currently proposed cap-and-trade requirements would cause them to raise prices by as much as 22%, institute layoffs or move to a 4-day work week. “Only nine percent [of survey respondents] said they would do their best to absorb the energy costs increases without making any changes,” the magazine said.

Many fear that cap-and-trade will have a disastrous effect on U.S. manufacturing. Senators in industrial states hard-hit by the recession like Michigan, Ohio, Indiana and Kentucky are being lobbied to fight the cap-and-trade bill, now under consideration by the U.S. Senate. In an interview with Manufacturing & Technology eJournal, Kentucky’s Republican Senator Jim Bunning criticized the bill, saying, “The legislation is essentially an energy tax hike on small businesses and will raise electricity costs in Kentucky 90% by the year 2035.”

Whatever your personal stance on cap-and-trade, it seems inevitable that growing environmental concerns will spur the eventual passage of this or some similar bill in the not too distant future. Change is ever-present and savvy businessmen will accept and prepare for change. Moving to environmentally-friendly, clean-energy, battery-operated powered carts and movers today will lessen the burden of compliance tomorrow. To find out how DJ Products’ energy-efficient, ergonomically-designed material handling equipment can positively affect your operations, contact a sales engineer today.

Ergonomic Equipment Benefits Aging Workforce

America’s workforce is aging. According to the U.S. Bureau of Labor Statistics, employment of workers aged 65 and older increased 101% from 1977 to 2007, nearly twice the rate for total employment — and that doesn’t even reflect the aging Baby Boomer population, the first wave of which is just hitting 65 this year. Slightly more than 50% of older workers now work full-time. From 2006 to 2016, the Bureau of Labor Statistics expects older workers aged 55 to 64 to increase by 36% and workers over the age of 65 to increase by 80%.

The graying of America’s workforce means that business and industry will increasingly need to accommodate the physical strength and endurance limitations of older bodies. Ergonomic equipment and practices will become increasingly important, both to protect workers’ health and welfare and to enable workers of variable abilities to perform the same job. Ergonomics allows businesses to fit the job to the person — no matter the worker’s size, age, gender or physical abilities — instead of forcing the worker to torque his body into unnatural and uncomfortable positions to make the equipment work or get the job done.

Manual material handling injuries account for approximately 35% of workers’ compensation claims. Injuries to the back and upper extremities caused by reaching, lifting and carrying result in an estimated 44% of all lost time injuries. As workers age, the risk of injury increases. The bottom line is that without ergonomically-designed equipment and the institution of ergonomic practices at workstations, you can expect your injury rate — and medical/disability costs — to increase as the age of your workforce goes up. However, ergonomic equipment can level the playing field.

Ergonomic equipment that helps to lift, position and move materials and finished products takes the burden off workers, insures worker safety, and increases worker productivity. Ergonomic equipment improves worker safety and productivity when bending, twisting and reaching are required. Ergonomic design can also allow the height and tilt of containers to be adjusted for easier access. Ideally, you should utilize ergonomic principles in every aspect of your workplace operations to promote worker safety and productivity. As a bonus, you’ll build good morale and save money.

DJ Products is the national leader in ergonomically-designed motorized and battery-operated material handling carts and cart movers. We offer a complete line of powerful, compact, ergonomically-designed material handling products for every application. Contact us today for personalized help meeting your material handling needs.

Your Turn to Talk: Where Do You Stand on Ergonomic Debate?

We’ve spent some time this week talking about the changing climate in Washington with regard to ergonomics and ergonomic legislation. On the campaign trail, President Obama repeatedly promised workers a healthier, safer workplace, saying he would use the full weight of his office to attack the problem of musculoskeletal injuries. Confirmation this week Hilda Solis as Obama’s new Labor secretary is expected to get the ball rolling.

Despite the fact that ergonomic systems and equipment have been repeatedly proven to significantly reduce worker injury and the exorbitant medical, insurance, disability and lost man-hour costs associated with musculoskeletal injuries, recent news reports give the impression that business owners fear the financial burden of government-regulated ergonomics. Admittedly, as one of the nation’s premier manufacturers of ergonomically-designed electric carts and motorized cart pushers, DJ Products is a bit biased on the subject. However, our considerable experience with customers from large manufacturers to small business owners indicates that rather than fearing ergonomics, savvy businessmen are embracing it, not only to protect the health and safety of their employees, but to streamline production and reduce production costs. In our experience, most purchasers of our ergonomic carts, tugs and movers recoup their investment within the first year, noting savings in medical and production costs.

In news reports of ergonomic panic, the leadership of the U.S. Chamber of Commerce appears to be fanning the flames of dissent. The chamber cites cost and potential for abuse (i.e., paying the cost of worker injuries suffered off the job) as its two main reasons for opposition. There are always some people who will try to abuse the system, but we don’t imagine that abuse will be any greater with ergonomic rules than without them. If potential abuse were the deciding factor, there wouldn’t be any government programs, so this argument is negligible.

The issue of cost, particularly in the current economy, is, of course, a consideration. However, throughout industrial history, new innovations have required some re-tooling to reap greater profit. With ergonomics, considerable benefits can be realized from minor changes: a change in position, routine or tool placement. Ergonomic equipment can be introduced gradually, a sector at a time, allowing businesses to realize immediate gains without tremendous financial outlay.

The chamber argues that regulation is unnecessary because businessmen recognize the value of ergonomics and are implementing programs without government intervention. If that’s true, then what’s the harm in regulation? The fact is that forward-thinking businessmen do recognize the value of ergonomics and they are integrating ergonomics into their operations. But many are not and their workers suffer so government acts for the common good.

But enough from us, we want to hear from you on this issue. Where do you stand on the ergonomic debate? Let us know and we’ll share your thoughts with our readers.

What It Will Take to Succeed in Business in 2009

A small business owner I admired embodied three qualities that got him through many tough times in the material handling business: innovation, positive thinking and hard work. These same qualities can help us weather the current storm successfully.

Innovation. A great believer in innovation, my friend was the first in his region to buck the industry and offer new electric-powered forklift trucks and hand-operated movers when they first came on the market. Decades ago he foresaw the advantages of cleaner, more efficiently powered material handling equipment. Had he still been in business, he’d have been among the first to embrace safer, ergonomically-designed, even more energy efficient, battery-operated material handling equipment. Embracing new technology as it becomes available positions you to reap the rewards of improved energy efficiency, increased maneuverability, innovative safety features and greater flexibility of use.

Positive thinking. Even during tough times, my friend was a great believer in the power of positive thinking. He ran his business and lived his life in accordance with a quote from Henry Ford that he kept prominently displayed on his desk: “Whether you think that you can, or that you can’t, you are usually right.” My friend would have been the first to see the opportunities in a depressed market. Bargains abound for the savvy businessman. This can be a good time to expand your territorial or product base by partnering with or buying out a faltering competitor. Depression of the construction industry has led to aggressive pricing in commercial markets making this a good time to build or expand facilities. This can also be a prime time to upgrade your technology. Many firms are offering unbeatable deals or deferred payments to stimulate business. Plant and business closures are also creating great deals on used equipment.

Hard work. My friend knew that positive thinking alone never accomplished anything. No slouch when it came time to roll up his sleeves and get dirty, another favorite saying was, “God helps those who help themselves.” To survive the current recession, you’re going to have to be innovative, flexible and forward thinking; but you’re also going to have to reign in unnecessary expenses, tighten up financial practices, maximize worker and production efficiency, and work hard to stay ahead of the competition.

Material Handling Industry Moving to Clean, Green Electric Carts

“Cleaner, greener, smarter.” That’s how John Teresko characterized the material handling industry’s shift to electric battery-powered vehicles in a recent online article on Industry Week. “While the continuing transition to electric battery-powered lift trucks may suggest only environmental concern, the trend is really part of a broader search for new levels of performance and productivity,” he said. Over the past decade sales of electric trucks have gradually overtaken and surpassed sales of internal combustion models. The move to electric power is the most significant, most evident trend in the material handling industry.

While Teresko happened to be writing about forklift trucks, the move to clean-energy, electric battery-powered carts and tugs is universal across the landscape of the material handling industry. Fueled by a growing concern for the environment and skyrocketing fossil fuel costs, savvy businessmen have been trading in their gas- and diesel-powered vehicles in favor of cleaner, cheaper-to-operate electric battery-powered equipment. With the capacity to operate a full shift without recharge, electric battery-powered material handling equipment provides significant energy savings without any loss of productivity.

What Teresko didn’t mention is that forward-thinking manufacturers and business owners are moving away from forklifts altogether in favor of cheaper, more versatile, more efficient, safer, ergonomically-designed powered carts and movers. Heralding the next significant shift in the material handling industry, manufacturers are replacing forklifts with highly maneuverable powered movers that allow greater flexibility of use. Their smaller size and ability to maneuver in tight spaces and highly trafficked areas allow motorized carts and powered cart movers to be employed in a wide variety of tasks, increasing the flexibility and versatility of your material handling equipment resources.

Receiving equal consideration is the appallingly high accident/injury rate associated with forklifts. Ergonomically-designed powered carts, tugs and movers have a proven track record of reducing accidents and musculoskeletal injuries. Switching to ergonomically designed electric battery-powered movers results in a significant savings in medical, insurance, disability and workers’ compensation costs and has been proven to reduce absenteeism and lost man-hours. Investment costs are routinely recouped in the first year after purchase. Ergonomically-designed electric battery-powered material handling equipment is the industry’s next most important trend and savvy business owners are getting onboard.

Failing Auto Industry a Warning to U.S. Manufacturers

The auto industry bailout is in peril and may be beyond saving. The demand by Senate Republicans that the UAW agree to slash auto workers’ salaries to compete with their Japanese counterparts may have put “paid” to the deal approved by the House. If any of the Big Three automakers fail, the fallout is expected to send our already troubled economy plummeting even further downward. The strain on unemployment and social resources, the trickle-down effect on the industry’s supply chain, irreparable erosion of America’s already diminished manufacturing base, a drastic decrease in consumer choices — we’re going to be paying for Detroit’s poor management and poor choices for years to come. There is no silver lining here, but there are important lessons to be learned.

While the issues are complex, experts have boiled the U.S. auto industry’s woes down to four basic problems: failure to embrace the future, lack of flexibility, failure to effectively manage labor, and failure to rein in expenses. These are the basic cornerstones for success in any business.

  • Embrace the future. Globalization of the economy, resource depletion, and the speed at which technology changes will continue to bring vast changes to industry and manufacturing. Companies with the vision to position themselves to meet future needs by taking advantage of these changes will prosper. Those like the U.S. auto industry who don’t will eventually fail.
  • Maintain flexibility. Rapid response will separate the men from the boys. Companies with the mental, financial and physical flexibility to react quickly to changing market needs and strictures will prosper most.
  • Manage labor. U.S. labor costs are the arena in which America is least competitive globally. An inability to manage labor demands is one of the core causes of Detroit’s failure. To remain competitive into the future, American businesses and the workers that depend on them for their livelihood will need to address this issue and both sides may need to moderate their expectations.
  • Rein in expenses. Maintaining tight control over expenses and instituting proactive accounting practices are essential for survival in a poor economy. But maintaining these practices as the economy improves will give you the financial flexibility to reach future goals.

DJ Products ergonomically-designed, powered carts and tugs can position you to meet the future successfully. On Monday, we’ll tell you how.

Lessons to be Learned from the Auto Industry Meltdown

The plight of the American automobile industry should serve as a cautionary tale for all U.S. manufacturers and businesses. To survive in today’s global marketplace, you must be flexible, embrace change, and constantly re-shape your business to meet future trends. Survival is as much about preparing your business for the future as it is about being competitive today.

Detroit’s problems are complex and have been exacerbated by a 15% sales drop as the economy has worsened, but at their core is the failure of U.S. auto executives to acknowledge the trend toward more fuel-efficient cars and to innovate. Rather than meeting the challenge posed by rising well-made, fuel-efficient Asian competition, Detroit continued business as usual, putting its efforts into advertising and Congressional lobbying to support bigger, better, fuel-guzzling cars. And until the rising cost of gas bit us in the wallet, the American public played along.

The sad thing is that back in 2000 Detroit did flirt with a program to push fuel-efficient vehicles but abandoned the effort as too expensive and unnecessary. It makes you wonder if the auto industry would be in cardiac arrest today if industry leaders had had the foresight to imagine the future and the courage to make the hard decisions necessary to prepare for it.

In the material handling industry, DJ Products faced this dilemma successfully. With the vision to spot new trends and the flexibility to act, DJ Products was one of the early responders to need for ergonomic material handling equipment. Well before the high price of repetitive stress injuries became a national cause, DJ Products saw a need to design material handling equipment that would reduce the potential for musculoskeletal injuries and improve the health and safety of workers.

DJ Products manufactures ergonomically-designed motorized carts and powered cart, equipment and vehicle movers that eliminate the pain and strain of manually pushing and pulling heavy carts and wheeled equipment. Our products are less costly, smaller, more maneuverable and more versatile than traditional material handling equipment used to move carts and equipment, such as forklift trucks, walkies and riding tugs. Forward-thinking business owners are revitalizing their operations and positioning themselves for the future by turning to ergonomic equipment to meet their material handling needs.

With an Obama administration expected to increase ergonomic standards and requirements in the next year, a proactive approach toward worker health and safety is a  smart business move. And it’s a decision that will have a positive impact on your bottom line. The cost of most ergonomic equipment purchases are recouped in the first year in savings on medical costs, insurance, workers’ compensation and lost work days. A move to ergonomic equipment also provides a substantial benefit in improved worker morale and increased productivity.

To find out how ergonomically-designed material handling equipment can help prepare your business to meet the challenges of the future, contact the ergonomic experts at DJ Products.

Capital Investments That Make Sense

It may be a bear market, but this is no time to hibernate. If you want to weather the pending economic winter, you can’t afford to crawl into a cave and wait for better times. This is a time when the old saying, “You snooze, you loose,” rings true. Competition gets more cutthroat when times are tough and only the smart survive. Everyone’s going to be reining in expenses to maximize their cash flow, and many will limp along with out-dated equipment or technology, afraid to make any capital investments until the economy eases up. Savvy businesspeople know this is faulty thinking. Even in a poor economy, certain capital investments not only make sense, but give you a critical edge over your competition.

What kinds of capital investments make sense? Industry experts say capital expenditures that give you both immediate and future value should get top priority.

  • Equipment and technology that make and keep you competitive are essential, especially in a tough economy. You can’t afford to lag behind competitors or you’ll be left choking in their dust. As U.S. industry moves ever closer to integrated automation, you’ll need to embrace state-of-the-art technology and equipment to remain competitive.
  • Equipment that decreases your fuel expenses will become increasingly valuable as oil production continues to drive world economy. Battery and electric-powered equipment not only produces immediate savings in fuel expenses, but decreases future dependence on fossil fuels. 
  • Businesses shouldn’t overlook the powerful message that energy efficiency sends to customers: that you care about the environment and the planet we live on. As global warming heats up, more businesses will be choosing environmentally-friendly partners over energy-wasting ones.
  • Ergonomic equipment that improves worker safety and significantly decreases medical, insurance and workers’ compensation expenses will gain even greater importance as healthcare costs rise. Both presidential candidates are furthering healthcare platforms that will force U.S. businesses to shoulder an even greater burden of our country’s healthcare costs. Equipment that decreases the direct and peripheral medical costs of worker injury will benefit your bottom line. 
  • As the U.S. workforce shrinks, ergonomic equipment will play an important role in maintaining worker satisfaction as well as safety. As competition for workers increases, businesses will need to offer workers more tangible job benefits. Use of ergonomic equipment shows your workers you care about their health, safety and comfort on the job. And it has the added benefit of making your operation more efficient and more productive.
  • Ergonomically-designed equipment that allows a single worker to accomplish a greater volume of work safely will also reap savings in a shrinking workforce. With presidential candidates promising to penalize businesses for taking jobs overseas, the ability to maximize productivity with a minimal American workforce will gain importance.

MHIA Launches New Overhead Group

With a plethora of fatal crane accidents peppering the news this year, crane and hoist manufacturers are taking some safety cues from their ergonomically-savvy brethren in the material handling industry. Joining with the Material Handling Industry of America (MHIA) to form the just-launched Overhead Alliance (OA) group, crane, hoist and monorail industry organizations will be promoting alternative methods of lifting and moving materials that reduce accidents, improve workplace health and safety, reduce product damage, improve workflow, lower costs and reduce environmental impact.

Focusing the combined resources of the Crane Manufacturers Association of America (CMAA), Hoist Manufacturers Institute (HMI) and Monorail Manufacturers Association (MMA), OA will give these affiliated trade associations a common voice within the material handling community. Over the next year, OA plans to launch a campaign promoting safer, healthier, greener alternatives to traditional lift trucks for lifting and moving materials, including the use of bridge, gantry and jib cranes and hoists. Not only are lift trucks notorious gas guzzlers, they account for the majority of serious and fatal material handling accidents.

OA will make its national debut at MHIA’s ProMat international exposition in January 2009 where it plans to emphasize the “lean and green” (i.e. ergonomic and energy efficient) benefits of overhead lifting to handle materials. Safe procedures for manual handling and ergonomic lifting that are designed to improve workplace safety and protect workers’ health are also on OA’s promotion agenda.

Material handling equipment that minimizes manual lifting and carrying prevents injuries. The U.S. National Institute for Occupational Safety and Health (NIOSH) reports that back injuries, primarily from improper lifting and carrying of light loads, cost American businesses $10 to $14 billion in workers’ compensation costs and nearly 100 million work days annually.

A world-leader in the production of ergonomic carts for moving and lifting material and equipment, DJ Products manufactures ergonomically-designed, energy-efficient electric and battery-powered cart pullers, pushers and scissors lifts. Already “lean and green,” DJ Products material handling equipment is built to be energy-efficient while maximizing the health and safety of your workers. Visit our website for complete information on DJ Products equipment for manufacturers, warehouses, logistics centers, retailers, hospitals and the hospitality industry.