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.

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 11th 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.

 

The Evolution of Insulation

As we grow more aware of our environmental impact—and as utility bills grow more costly—energy efficiency becomes a central concern in construction projects and building updates. LEED certifications set efficient buildings apart from the rest. Pink attic insulation doesn’t quite cut it anymore.

Natural Insulation
Although it’s a hot topic now, energy efficiency—insulation in particular—is nothing new. Since the beginning of time, the Earth and its inhabitants have found remarkable ways to regulate temperature. Atmospheric gases gather in the ozone layer, water surrounds land, mammals grow fur and store body fat, birds are born with feathers, and early on, humans discovered heat-trapping material like wool.

We have always put extra effort into shielding ourselves from the elements. Early humans built their homes out of natural insulators like grass, leaves, straw, mud, ice, and mountainsides. And landscaping wasn’t always about aesthetics—trees planted near houses provided precious shade and insulation.

While keeping extreme temperatures out, people also came up with ways to generate heat within. Some buildings in the Roman Empire and ancient Korea used empty spaces in floors and walls to conduct air heated by furnaces. By 1700, Russian engineers began developing water-based systems to circulate heat.

Synthetic Insulation
With the advent of modern heating systems came the need for better insulators. After all, gas and electric systems don’t come cheap like heat from a wood-burning furnace, and they create conditions that need to be regulated in order to work properly.

In 1930, Dale Kleist, a researcher at the Owens-Illinois Glass Company, made one of those lucky mistakes that so often leads to a monumental discovery. While trying to seal two plates of glass together, he accidentally shredded the glass into tiny fibers with a high-pressure air hose. Thus, fiberglass was born and soon found its most common form in blanket insulation.

Meanwhile, manufacturers began to realize the benefit of insulating not just their buildings but their heat sources as well. This helped protect workers and equipment, save energy, and improve overall efficiency.

Custom Insulation
We’ve come a long way since adobe huts and igloos. Today, engineers use R-values (the measure of thermal resistance) to quantify and compare the insulating capability of different materials. In this way, they can combine the most effective insulators and create premium insulation.

Visit unitherm.com to learn more about custom insulation systems.

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%.

fluorescent-lights

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.

fruits and vegetables in produce isle

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.

How to Join the Better Buildings, Better Plants Challenge

Going green. Saving energy. Encouraging efficiency. Reducing carbon footprints. Promoting eco-friendly practices. Being environmentally conscious. Conserving resources. It goes by many names, but the social movement is undeniable.

I remember seeing for the first time the trendy “Save the Planet” tees cropping up in clothing lines of popular retail stores. Years later, it turns out that going green more than a fashion trend. It is a compilation of personal and political choices that continues to build momentum worldwide.

We can see big impacts, too, when we look at the sum of our efforts. That’s why government and corporate entities promote going green, leading by example and initiating challenges to get others involved.

Better Buildings Challenge

Better Buildings, Better Plants Challenge

Last year, President Obama and former President Clinton issued the Better Buildings Challenge and extended the challenge to industrial plants for an even greater impact. Because buildings consume about 20% of all the energy used in the US, the initiative’s long-term goals include

  • Updating American buildings to make them 20% more energy efficient
  • Saving American businesses nearly $40 million in energy costs

With the help of energy efficiency products, services, technologies, and partnerships, several industrial partners have stepped up to the challenge—3M has 78 participating plants, Alcoa has 30, Nissan has 3, and GE has 125 million sq. ft. of plant space (to name a few).

But you don’t have to be a big name with copious plant space to make a difference. Think of it this way—as a little guy, your carbon footprint is already smaller so you don’t have to make such extravagant changes. Every little bit counts.

To join the Better Buildings, Better Plants Challenge

  1. Assess your building portfolio to determine energy efficiency opportunities and publicly pledge an organization-wide energy savings goal for the next 2-5 years.
  2. Announce and initiate a showcase project on 1 facility (retrofit, retro commissioning) and develop an organization-wide plan to achieve your energy savings goal.
  3. Share your experiences with energy efficiency solutions, your organization-wide energy savings, and the energy performance at individual facilities for recognition.

In return for your commitment, the Department of Energy agrees to support you via expert technical assistance, connect you to a network of allies, and provide you with national recognition. Win-win-win.

What are you doing to green your building? The Better Buildings Challenge is just one way you can contribute to the social movement. Incentives are abundant, and the payoffs reach far and wide. For starters, you can insulate your equipment to conserve energy and maximize efficiency, and when you start seeing the savings, you can move on to other areas like HVAC and lighting for a complete energy-efficient overhaul.

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 20thcentury assembly lines.

The third industrial revolution

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.

Engineering a Safer World

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.

milk bottles

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.

International Standards for Energy Management: How ISO 50001 Can Help Companies of All Kinds

“Individual organizations cannot control energy prices, government policies, or the global economy. But they can improve the way they manage energy.” -ISO Secretary-General Rob Steele

Energy is one of the largest controllable expenses of your plant, or of any building for that matter. And luckily, as more and more building owners realize remarkable ROI in energy-saving strategies, the amount of related information continues to grow.

In fact, a quick Google search for energy management returns about 54,800,000 results, which gives us about 78 pages to wade through. Of course, no one has time for that, so we usually just collect tidbits of advice we hear about going green and put them to use as best we can.

For example, at home I know to keep the thermostat under 68° in the winter and over 72° in the summer for better energy savings. I know to run the dishwasher only when it’s full to maximize water use. I know to open the shades during the day to let in natural light. I’m sure you’ve heard similar rules of thumb.

So we’ve got the basics down, but managing energy in an entire plant requires a bit more forethought than simply turning off the lights when we leave the house.

download avaiable at iso.org

Fortunately, the International Organization for Standardization (ISO) launched an energy management standard last summer. According to ISO, the energy standard—ISO 50001—will provide industrial plants, commercial, businesses, government facilities, and entire organizations with “access to a single, harmonized standard for implementation across the organization with a logical and consistent methodology for identifying and implementing improvements.”

Twenty-six US facilities, including 3M, Cook Composites, Dow Chemical, Nissan, and Volvo, participated in ISO 50001 pilot programs. In addition, the Department of Energy endorses ISO 50001 as a “proven approach for US industrial commercial facilities to plan, manage, measure, and continually improve energy performance.”

Companies implement these energy standards to reduce their energy consumption and environmental footprint, but they can become ISO 50001 certified as well. On March 8th of this year, Volvo’s Dublin plant was the first US facility to achieve certification. This third-party verification can afford companies a competitive edge and greater confidence in their supply chain.

For those that utilize it, the energy standard will be hugely helpful as it takes the guesswork out of energy management. Instead of the trial and error strategy I use at home, haphazardly turning the thermostat up or down, ISO 50001 provides an explicit framework applicable in any company—public or private, large or small. Companies worldwide can now adopt best practices in energy management.

Have you begun working towards your ISO 50001 certification? What other energy management tools—software, audits, etc.—do you use at your facility? If you’re kicking off a new energy management program or you’re working to keep your energy output in check, get a customized energy report today.

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.

Solutions for Secondary Containment

In response government regulations and eco friendly incentives, more and more facilities are finding new ways to go green. It’s always a good idea to stay in line with Uncle Sam, but facility owners and operators often discover that protecting the environment also delivers worthwhile ROI. Win win.

Back in 2007, the EPA introduced the Spill Prevention Control and Countermeasure (SPCC) Regulations that require facilities with large amount of oil storage (1,320+ gallons aboveground, 42,000+ gallons underground) to have a written plan addressing how it will prevent and/or respond to oil spills.

This makes sense. Oil products pose a threat to the environment and our safety if accidentally spilled or leaked into soil, ground water, or surface water.

SPCC regulations apply to facilities that handle “petroleum, fuel oil, sludge, oil refuse, oil mixed with wastes, fats, greases, and vegetable oils,” and I’m sure these preventative measures come as no surprise to those involved in oil-related industries.

The good news—the EPA doesn’t specify the means by which facilities must control spills. Rather, the regulations afford facility owners and operators the autonomy to decide how they will comply and to determine the best methods for their facility.

The bad news—the EPA doesn’t specify the means by which facilities must control spills, which means owners and operators are on their own in devising a plan. All the EPA asks is that the methods align with accepted “good engineering practices,” and in some cases be certified by a Professional Engineer (PE). Pretty vague.

The SPCC report does suggest using containers suitable for flammable liquids, installing overflow alarms or vents, and constructing secondary containment areas.

Secondary containment areas are common solutions in the oil industry as they connect to bulk storage and can handle any accidental overflow. They are not infallible, however. The EPA recommends that pipes and containers be periodically inspected.

For additional spill protection, facilities should reinforce containment walls. SolarShell fiberglass laminate does just that—soft SolarShell sheets conform to the shape of the containment area, bonds with steel or concrete walls, and cures into an impenetrable shell that will prevent potential leaks and spills.

If secondary containment is a part of your facility’s spill prevention plan, consider reinforcing the area with laminate. In the oil industry, owners and operators can never be too careful. According to the EPA, a single gallon of oil can contaminate a million gallons of water, damaging both the environment and a company’s pocketbook.

What else can your facility do to enhance existing preventative measures?

See it to Believe it: The Benefits of Thermal Imaging

When thinking about energy output in a manufacturing plant, it’s natural to go to the lights and the HVAC. This makes sense since these are typically the top energy expenditures, but it’s a plant’s machines that devour more energy than all other utilities combined. That’s right, machines consume about 60% of total energy costs. How do we know this? Well, government agencies and other entities provide plenty of studies and statistics for us to read over, but why not see the energy output for yourself?

Thermography is more than fancy spy gear for secret agents to expose hidden enemies—it has a wide range of commercial and industrial applications for those of us in the real world as well. For manufacturers, thermal imaging allows you to visually track the amount and consistency of heat emitted by your equipment. With a thermal camera, you can compare the output of the different heat sources (even those not-so-easy-to-access heat sources) in your facility from a comfortable distance. This way you can find defects in shafts and pipes and locate deteriorating components before they fail.

Equipped with a thermal picture (a thermogram, in case you want to sound technical), you can easily spot the energy hogs highlighted in yellow, orange, and red—so you know exactly what areas to target as you take steps to reduce your energy costs.

Thermal Imaging

 

Immediately you’ll see your machines light up hot—as they should, that’s how they work. But most likely they don’t need to be operating that hot or emitting as much heat as they do.

The good news? Machines represent your greatest opportunity to conserve energy. Instead of idling, consider powering down equipment during non-peak hours, make sure motors are working as efficiently as possible, and insulate, insulate, insulate. The ROI is remarkable—insulation saves an average of $164 per machine per month. See what thermal imaging reveals so you can start saving.