Tag: Material Handling

Manufacturing Faces Another Year of Tough Times

It looks like the start of 2009 will bring more of the same for U.S. manufacturers, but things may ease up as the year progresses. The economic difficulties that started with the mortgage crisis and snowballed with this fall’s stock market crash will take time to correct. While some economic experts are predicting a minimum three-year recovery period before we again see a robust U.S. economy; others see small indications of coming recovery. 

According to the semiannual forecast recently issued by the Institute for Supply Management (ISM), manufacturers anticipate a 1.1% net revenue loss over the coming year. While definitely disappointing, it’s an improvement over the 2.2% decrease reported for 2008. Those industries that have been particularly hard hit this year include: primary metals, nonmetallic mineral products, fabricated metal products, textile mills, computer and electronic products, machinery, paper products, furniture, transportation equipment, plastics and rubber products. Revenue increases in 2009 are predicted to come largely from petroleum and coal products, electrical equipment, appliances and components, printing, food and beverage products, tobacco, apparel and leather goods and chemical products.

“Manufacturing purchasing and supply executives lack their usual optimism about their organizations’ prospects as they consider the first half of 2009,” said Norbert Ore, chair of ISM’s Manufacturing Business Survey Committee; “however, they are somewhat more positive about the second half. While 2008 has been a challenging year overall, we are apparently seeing a rapid halt to the inflationary cycle of the past several years as it relates to manufacturing inputs.”

ISM reports that manufacturers are operating at 75.2% normal capacity, down from 78.6% reported in April 2008. Sixty-five percent of the manufacturers surveyed by ISM expect their 2009 revenues to be the same or smaller than in 2008. To cope with economic woes, manufacturers are expected to decrease capital expenditures, reduce on-hand inventories, layoff more workers to decrease labor and benefit costs, and increase exports.

It looks like another year of belt-tightening for most of us. But all is not doom and gloom. Manufacturers should view this as an opportunity to tighten up their operations and improve efficiency across the board. This is an opportunity to learn to run leaner and meaner than your competition. Tightening up your operations today will better position you to compete in the future.

Part II: Trends Challenge the Material Handling Industry

Today we continue our post on future trends that will challenge the material handling industry. Please see our June 6 post for Part I.

  1. Workplace. The workplace is already changing with a growing number of workers telecommuting and working from home. The traditional brick and mortar office is giving way to mobile and virtual offices. Computers, cell phones, teleconferencing and video conferencing allow people to do business with clients, colleagues and suppliers around the world from any location, including their kitchen table. Nearly 750,000 people already live and work out of their RVs. The blurring of home and work boundaries is already starting to impact how we work and our expectations about work.
  2. Biotechnology. Genetics, biotechnology and nanotechnology are the world’s new industrial frontier. Scientists are creating undreamed of organisms and compounds that are revolutionizing our world, and all in ever more minute packages. Every year brings profound discoveries that will force us to redefine the role of industry, how we produce and use materials, and the role of workers.
  3. Globalization. A global economy is a growing reality. World markets are becoming increasingly interconnected. To be successful, businesses will have to look beyond local and regional resources to take advantage of market opportunities around the globe. As this occurs will the pressure of business and industrial inter-reliance have an affect on political, economic and social issues around the world. It seems certain that opportunities for global influence and change will be created. The challenge will be to see that they are positive ones.

Webcast: World-Changing Material Handling Trends

The challenges facing American business and our world are mind boggling: recession, labor shortages, global warming, war, the brain drain. Politicians are ranting, people are discussing, and everyone is worrying about what to do. Solutions run the gamut from fantastic to ludicrous. Given the realities of moving and managing resources, surprisingly few of the ideas being bandied about in the press seem realistic. Modern Materials Handling magazine suggests that the most realistic solutions are coming from the world of logistics. The magazine has assembled a panel of experts to discuss some of the most promising solutions to the world’s problems and the trends in material handling that will make them possible.

Trends that will change materials handling — and the world is the subject of an upcoming webcast sponsored by Modern Materials Handling magazine. The live webcast will begin at 1:00 p.m. Eastern Daylight Time on Tuesday, August 29. Click here to register for the material handling trends webcast.

Editor-in-Chief Tom Andel will moderate a panel that will include:

  • John Hill, TranSystems/ESYNC, who will discuss enticing new talent to the logistics workforce through supply chain execution technology.
  • Ron Giuntini, OEM Products-Services Institute, will provide insight into the material handling implications of the service vs product model and its effect on both the economy and environment.
  • Col. Alan Will of the U.S. Marine Corps will share logistics best practices learned on the front lines in Iraq.
  • Dr. John Usher, PhD, a professor with the University of Louisville Department of Industrial Engineering, will describe a future in which Direct Digital Manufacturing will redefine material handling in production environments.

Electric Tuggers Improve Ergonomics in Material Handling

Improving the ergonomics of material handling decreases worker injuries, improves workplace efficiency and leads to a healthier bottom line. Medical costs, insurance premiums, workers’ compensation payments and lost man-hours soar when ergonomics are ignored. Material handling is one of the most injury-intensive industries, according to the U.S. Department of Labor. Every effort you make to fit the demands of work tasks to the capabilities of your workers (i.e., ergonomics) will decrease costs and ultimately improve profit margins.Material handling requires many actions that can result in serious and expensive musculoskeletal injuries. Repetitive motions, awkward postures and the application of force as workers lift, push, pull, carry and handle materials create daily opportunities for injury. Attention to ergonomics in designing tasks, workspaces and equipment can dramatically decrease the physical demands and injury potential of many material handling activities.Carrying and lifting are the two actions that present the greatest potential for worker injury when handling materials. Today we’ll address tips for ergonomic carrying; on Friday, we’ll share tips for lifting ergonomically.Carrying tasks place stress on the back and shoulders and create contact pressure on the shoulders and hands. When repeatedly strained or overstressed, the effort and force needed to carry materials can cause injury. To decrease injuries caused by carrying, follow these suggestions:

  • Eliminate unnecessary carrying.
  • Minimize the distances materials must be carried and use electric tuggers to carry materials over longer distances.
  • Organize work tasks so that physical demands and work pace increase gradually as muscles warm up.
  • Rotate workers or alternate carrying with non-carrying tasks to prevent overstraining the body and give muscles a chance to rest between efforts.
  • Wear properly fitting gloves to improve grip stability.
  • Reduce load weights and test loads for stability and balance before carrying.
  • Slide, push or roll materials. These actions place less stress on the body than carrying.
  • Use conveyors, slides or chutes to move materials.
  • Use electric tuggers to transport heavy loads.

Is There Light at the End of the Tunnel?

The Dow is plunging, financial institutions are failing, credit is drying up and long-time Wall Street icons are plummeting into bankruptcy. The U.S. economy seems to be falling like a poorly stacked house of cards. The news is full of doom and gloom and more gloom. Is there light at the end of the tunnel?

In a word, yes. But it may be a long tunnel, say manufacturing experts. There are things you can do to calm worried employees and weather the storm, says Joe Cogliano in Manufacturing & Technology eJournal.

  • Keep your staff in the communications loop, says Jay Kuhn, president of Definity Partners, a business improvement company. When the economy tightens up, employees worry about job security, providing for their family, even putting gas in their car to get to work. All that worrying takes a toll on worker productivity. Being honest about what’s happening in your company will bolster employee morale. “Workers are going home and they are hearing bad news everyday,” says Kuhn. “It’s important they know what’s going on because everything the company does is really going to be taken as a negative sign, whether it’s meant to be taken that way or not.” Employers should be prepared to answer questions and explain even minor changes like switching an insurance carrier to reign in employee nervousness. Keeping employees in the loop can alleviate their fears and keep office gossip in hand.
  • Keep things positive. Worry and stress take a physical toll on workers which can result in increased absence rates. Keeping things positive helps make workers want to come to work.
  • Embrace patriotism. Historically, Americans respond positively to hardship and sacrifice when they know they are helping their country. “Small and medium-sized businesses need to realize they’re the backbone of our economic growth and job creation,” says David Velie, managing partner of Amend Consulting/Techsolve, a manufacturing improvement consulting firm. “Remind teams that they’re the strength of the economy, not the Fortune 500s and the housing sector.”
  • Maintain your cash flow. Take a close look at factors that affect your cash flow. You may need to reign in credit terms and be more aggressive about collections to improve your cash flow. Watch for potential cash-draining trouble spots. Kuhn says business owners should base every decision on a “cash is king” model.

Things may be rough for all of us for a year or two, but as Kuhn points out, “The economy does come back; it always comes back.”

Gloomy Manufacturing Outlook to Brighten in 2009

For just about all of us, 2008 has turned out to be a tough year. According to statistics posted on Manufacturing & Technology eJournal, three straight months of no growth have plummeted the manufacturing index to 26-year lows; and it hasn’t reached bottom yet. 

“It appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the gulf hurricane, and the lagging impact from higher oil prices,” Norbert Ore, chair of the Institute for Supply Management’s Business Survey Committee, told eJournal.

Adding insult to injury, contractions in the global economy have caused export orders to decrease after 70 consecutive months of growth. Manufacturers who were running at 78.6% capacity last April were operating at just 75.2% capacity by December.

While tough times are expected to continue into the first half of 2009, all is not doom and gloom. The sun should start to peek out within a few months. Manufacturers are already realizing a small boon from decreased commodity prices and lower fuel prices. They are guardedly optimistic that the manufacturing climate will begin to ease during the second half of 2009, particularly as credit improves. As the dollar strengthens, export orders are expected to return to normal strength. Adding another item to the plus column, Ore noted, “While 2008 has been a challenging year overall, we are apparently seeing a rapid halt to the inflationary cycle of the past several years as it relates to manufacturing inputs.”

ISM predicts a 1.1% net decrease in manufacturing revenue for 2009 which would actually be an improvement over the 2.2% decrease reported in 2008. While little to no growth is expected in most manufacturing sectors over the next year, most will stop losing ground. ISM actually expects small gains in some areas, including petroleum and coal products, electrical equipment, appliances and components, printing and related activities, food and beverage products, tobacco products, apparel and leather products and chemicals.

Manufacturers and other businesses are expected to hold their ground by decreasing capital expenditures, reducing inventories and downsizing workforces to decrease labor and benefit costs.

Next time: What it will take to succeed in 2009.

Part I: Trends Challenge the Material Handling Industry

In the June issue of MHEDA Edge, Steven Little, a keynote speaker at MHEDA’s recent annual convention, recapped six important worldwide trends that are already beginning to affect the material handling industry. Some trends are still in an embryonic stage with the development of applications capable of impacting our industry years in the future. Others are already making their presence known and changing the way we do business today.

We agree with Mr. Little that the following six trends are poised to change the material handling industry. We have added our own thoughts about the challenges these trends will pose as we move toward the future. We invite your comments on how our industry can best meet these coming challenges.

  1.  Demographics. The world’s population is aging. The U.S. isn’t the only country affected by the aging of post-WWII baby boomers. A quarter of Japan’s population is older than 55. Half the population of Western Europe has passed the half-century mark. On the other end of the scale, the number of collegiates in the U.S. is slowly increasing, indicating a potentially better educated employee pool. Changing demographics influence social values, politics and business processes, forcing a rethinking and restructuring of the ideas and systems that drive society — and business.
  2. Urbanization. Cities worldwide continue to grow larger. By 2000, 25 cities boasted populations greater than 10 million. By 2025, 62% of the world’s population is expected to live in cities. The logistics of providing for the needs of these compacted populations will require new thinking and applications.
  3. Immigration. Within a decade, Spanish will be the primary language spoken in 20% of U.S. homes. As with the 19th century influx of English-speaking immigrants — Irish, Scottish and British — Spanish-speaking immigrants are bringing a wealth of very diverse cultural differences and customs to our shores. America will again need to meet the challenge of assimilation, a process that always engenders significant change.

To be continued Monday.

The Rise of Ergonomics in Industrial Design

The staggering cost to American industry (see our previous post), coupled with the movement to make the workplace healthier and safer gave rise to the use of ergonomics in industrial design. Ergonomics is the science of fitting the job to the worker with an emphasis on worker safety and comfort. Its goal is to maximize efficiency and productivity by reducing worker fatigue and discomfort. The implementation of ergonomic principles in America signifies a radical change in the way industry approaches equipment design.

According to Wikipedia, “The term ergonomics is derived from the Greek words ergon (work) and nomos (natural laws)” and was first coined by Wojciech Jastrzebowski in an article written in 1857.  But the idea of ergonomics is not new. In the 5th century BC, the ancient Greeks used ergonomic principles in designing tools and performing certain tasks. Hippocrates’ description of a surgeon’s workplace shows ergonomic principles at work. Frederick Taylor, who pioneered Scientific Management in the late 1800s, sought the optimum method of performing a task. In experiments, he was able to triple the amount of coal workers could shovel by reducing the size and weight of the shovel. In the early 1900s, Frank and Lillian Gilbreth built on his method with their Time and Motion Studies. The Gilbreths worked to increase task efficiency by eliminating unnecessary steps and movements. In application, they reduced the number of motions required to lay bricks from 18 to 4.5, tripling hourly productivity. But it was the industrial demands of World War II that allowed the principles of ergonomics to be applied across a broad range of applications, heralding the modern birth of this new branch of applied science.

California was the first state to adopt an ergonomics standard in 1997, prompting other states to consider similar standards. While there is no overriding federal ergonomic safety standard, the Occupational Safety and Health Administration (OSHA) has developed ergonomic standards for specific industries and tasks. Compliance is addressed under OSHA’s General Clause.

Next time: The practical benefits of ergonomics

New Trends Will Affect Speed, Strength of Economic Recovery

The heart monitor on the economy has started beeping again, apparently shocked into recovery by the dual application of bailout money and stimulus funds. Of course, there’s still concern that the cure may prolong the patient’s recovery but the big guy does seem to be on the mend. Many economic analysts are now predicting that true recovery from the recession may begin as early as next quarter, that’s six months to a year ahead of previous predictions. Naturally, there’s disagreement about the strength and speed of the economy’s recovery. “The question is whether we are transitioning to a solid growth period or to something flatter,” explained Dr. Chris Kuehl, economic analyst for the Fabricators & Manufacturers Association International (FMA), in the FMA economic newsletter Fabrinomics.  

Kuehl pegs the strength of the economy’s recovery to three emerging trends that manufacturers and businessmen will need to factor into their plans as they position themselves to compete in the post-recession market:

  • Cautious consumers. High unemployment and the continuing threat of job loss has made consumers wary of spending and further depleting any financial reserves they have left. Most economists expect consumer spending to lag other signs of recovery, further slowing the recovery process. Until unemployment rates return to post-crisis norms and consumers regain confidence in the economy, demand for goods and services is expected to remain low.
  • Consolidation. Financial chaos has forced mergers and acquisitions in the U.S. and around the world, and not just in the automotive industry, Kuehl points out. Manufacturing bases have gone global, shifting from the U.S. and Europe to Asia, particularly China, and Latin America. Digging a toehold into these markets will be essential — and extremely challenging — if manufacturers, especially smaller players, are to survive. The complexities of global business may encourage even more consolidation as small manufacturers partner with larger ones or form cooperatives to gain global access.
  • Unsettled financial markets. While banks and financial entities took the brunt of the first blow, they haven’t carried the burden of the economic crisis. Even so, they are still recovering which will continue to make them wary of lending money. The yet-to-be-known impact of new government oversight and regulation will also be a factor. Kuehl sees a return of the “old-school banker” with tougher credit standards, demands for greater cash flow, and less money available for growth and expansion.

Handhold Design Can Improve Worker Efficiency

Most carts have handholds of one sort or another. Handles are such an ordinary part of everyday equipment that it’s easy to ignore their importance in efficient equipment use. But handholds are the link between the operator and the load. Handholds cue the operator on how much force to exert and where to apply it most effectively to move the load. Handhold placement and design on carts can increase or decrease the ease and efficiency with which a worker moves a load.

In evaluating the usefulness of a cart, consider these important elements of handhold design:

  • Handhold Height. Handhold height defines the operator’s posture, and posture determines the amount of force a person is able to generate when moving a cart. Given the difference in human size, no single handhold height will be optimal for all workers. Handholds that cause operators to bend or stoop can lead to musculoskeletal injuries. When handholds are located at the proper height for an individual’s body, he is able to exert maximum force without straining his body. An adjustable handhold system will accommodate workers of various sizes. Other solutions include a continuous vertical handhold system that can be grasped at any point along its length or a series of handholds at varying heights.
  • Handhold Width. Handholds should allow the operator to grip the cart near its outer edge to provide maximum leverage for turning and positioning. However it’s important that hands, fingers or arms not protrude beyond the side of the cart to prevent crushing injuries should the cart come in contact with a wall or other equipment.
  • Handhold Type. The type of handhold can dramatically affect the amount of force an operator is able to exert when maneuvering a cart. Poor coupling, the contact between hands and equipment, can decrease the force an operator can exert by 65%. Handhold shape should not concentrate pressure on any specific area of the hand. There should be no sharp edges or pronounced ridges. Both the palm of the hand and the fingers should be able to contact the handhold which should be wide enough to accommodate the entire hand.
    Note: Pulling tasks require a handhold that can be gripped with the fingers wrapping around the handle. Pushing tasks need only a good surface that provides stable hand/equipment coupling.