Tag: Material Handling

Integration of Material Handling Components Lags

To the frustration of many, the material handling industry stills seems a long way from achieving the plug and play capabilities of common home electronics. The day when all material handling components will interface with each other still appears to be in the distant future. Material handling manufacturers remain focused on producing dedicated components that require purchase of their particular system. The goal of integrated components that can be easily and quickly installed and used in any setting with any material handling system lags far behind the profit-driven motives of the current marketplace. 

While integration isn’t the bug-a-bear it was a decade ago, it still “typically takes between 8 and 12 weeks to install a piece of material handling equipment in a distribution center,” said Steve Martyn, CEO of GRSI, a systems integrator. Even products that bill themselves as “plug and play” generally require that specific coding instructions be written for at least 40% of the integration before successful installation can be completed.

The problem, say experts, appears to be a lack of interest in creating industry-wide data-exchange standards that would allow for instant interface of varied material handling components. “The only way to have true plug and play is if you have a body of industry leaders that define a standard,” explained Daniel Ahrens, client support manager at Fortna, Inc., a material handling consulting firm. That would require that hundreds of companies come to agreement as the electronics industry did in choosing the USB as the standard interface device — a difficult, but not impossible, task. “The trouble with standards is you have to get hundreds of companies to agree,” said material handling consultant Sam Flanders, president of 2wmc.com. “You have to have a driving force to make this happen. And nobody thinks it will result in extra revenue.”

At present there’s no pressure on the industry for anyone to step up to the plate; however, that’s expected to change as small providers of warehouse management software fall to the giants like SAP and Oracle. “The big ERP (enterprise resource planning) guys probably will eventually set standards,” said Martyn. Until they do, beware the material handling supplier that advertises “plug and play” components — they probably won’t be what you’re expecting.

Where to Find New Marketing Opportunities

Competition is even tougher than it was before. Most sectors of the economy are expected to post losses through 2009 with little improvement expected until sometime in 2010. The bottom line is that for the next year or two everyone is going to be scrambling for a bite of a much smaller pie. In our last post we shared survival tips from DJ Products’ own experience and from Doug Gregory of Diamond Group Marketing (see his February 9, 2009 article on Manufacturing & Technology eJournal). Aggressive marketing, superior customer service and strategic diversification can help your business survive a bear economy, but to thrive you’re going to have to start searching for new customers.

Gregory and others agree that there are bright spots glimmering amidst the general economic gloom. Certain industries are expected to thrive and grow in the coming few years despite the downturn. Savvy firms will target marketing and sales campaigns to take advantage of expected growth in the following economic sectors:

  • Food industry. As Rally’s, a local burger joint, advertises, “You gotta eat!” The entire food supply chain from farm to table provides multiple opportunities for growing your customer base. Agricultural equipment, fertilizer, transportation, processing, packaging and retailing are just the tip of the food industry pyramid.
  • Pharmaceutical/health care industries. Baby Boomers, the world’s largest population segment, are aging. Demand for pharmaceuticals, health care products and health care services is expected to increase and remain steady over the next three decades.
  • Energy industry. Companies that produce, process or deliver energy products are excellent growth targets. With support from President Obama, increasing federal funds will fuel the development of alternative energy options. However, viable nationwide replacement of current energy sources is years, even decades, in the future. Current oil, gas and coal operations are expected remain strong with increases coming in their development of new, cleaner, more cost efficient applications for their products.
  • Transportation industry. Traditional transportation will still flounder for a while until production volumes and consumer spending improve. But there will be opportunity in infrastructure improvement and rebuilding fueled by federal stimulus spending and job creation. And watch for opportunities in new public transportation options still on the drawing board. Last year public transportation ridership posted a 52-year record high. As America struggles with energy issues and global warming, expect increases in innovative mass transit projects.
  • Look south. Southeast and Gulf Coast states are experiencing a manufacturing boom benefiting in part from post-Katrina spending. Census figures indicate that Americans are moving south, seeking jobs and better weather. Environmentalists are leery about the Southwest, however; which is already experiencing water shortages and some fear believe is on the cusp of long-term, possibly terminal draught.

Forces of Change: What’s Driving New Business Paradigm?

The current economic crisis has created a tipping point for American business. While change is a normal and healthy part of growth, overwhelming economic forces are combining with powerful social forces to force major upheavals in the U.S. business paradigm. Economic necessity has eroded the normal inertia that usually slows change. Economically unviable businesses are failing, the weak are being culled from the competitive pack, and even the strong are struggling, forcing business owners to make hard decisions to ensure their survival. For the first time in decades, labor unions and their members are willing to reconsider compensation and benefit packages to save jobs. Add to this the looming retirement of America’s largest-ever workforce — the Baby Boomer generation — and its replacement with a new generation of tech-savvy workers ready to blow traditional business practices out of the water, and you have a potent climate for change.

Today, we continue our discussion begun last week of the coming forces that will change American business.

  • Today’s hierarchical management structures will all but disappear. Growing entrepreneurship will shift more tasks to contract workers. Changing priorities about work/life balance are already impacting corporate structure with more workers telecommuting and job sharing. The creative experiments implemented to save jobs and money during the recession — unpaid furloughs, reduced hours, lateral advancement — are likely to be retained, allowing for the more flexible career paths sought by the next generation of workers.
  • Women will finally crash through the glass ceiling and come into their own. Time foresees an 8% growth for women in the workforce, compared to 5% for men, and much of that growth will be at the management level. Backlash from the economic crises of the last two years is creating demand for the female management style. Studies indicate that female managers are more cautious about risk-taking than their male counterparts and are collaborative consensus-builders who practice transformational leadership that engages and motivates. 
  • Rising health care and pension costs are already forcing a major change in corporate benefit packages. The current model of employer as provider has become unsustainable. Employees are already being asked to share the burden of health care and retirement costs with their employers, a trend expected to increase. While this naturally concerns Baby Boomers nearing retirement age, benefits are of far less concern to the next generation of workers. In its May 25, 2009 issue, Time magazine reported that among 18- to-34-year-olds, base pay and career advancement were the top-ranked concerns. To decrease health care costs, both businesses and workers will support wellness initiatives and adoption of ergonomic equipment and practices in the workplace.

Mark Your Calendar: Upcoming Material Handling Shows

It’s spring and time for our industry’s annual material handling shows. Circle the date on your calendar and start making travel plans. Here’s the low-down on what’s planned:

MHIA  —  April 21-24  —  Cleveland, OH

The  Material Handling Industry of America will host its North American exposition, NA 08: Solutions that Make the Supply Chain Work, at the I-X Center in Cleveland, Ohio. Participants will have the opportunity to inspect and operate the latest manufacturing, distribution, material handling and IT solutions designed to increase supply chain productivity and profitability. Exhibits of products and services will be organized into four Solution Centers: manufacturing and assembly, fulfillment and delivery, information technology and knowledge which will showcase educational, benchmarking and research resources.

  • Sustainable, green solutions will receive special emphasis at the show. Andrew Winston, a nationally recognized expert on green business, will present the keynote address on Tuesday morning, April 22. The corporate environmental strategist will speak on Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build High Performance Supply Chains.
  • More than 70 education sessions will be offered addressing best practices, new equipment developments and leading trends.

MHEDA  —  May 3-7  —  Orlando, Florida

Accelerate in ’08 is the theme of the Material Handling Equipment Distributors Association 53rd annual convention and exhibitors’ showcase. The convention will be held at Loews Portofino Bay Hotel at Universal Orlando in the theme park capital of the world, Orlando, Florida. At the show the emphasis is on education and networking, with ample opportunities to explore new technology and trends, improve business knowledge and skills and network and socialize with material handling peers. Fun activities for spouses and kids are planned for those who want to make this a family affair.

  • An exciting variety of educational presentations, round tables and workshops are planned on innovation, business growth, leadership, sales, marketing, customer service, financial and people management. Among several dynamic speakers will be Brian Beaulieu, an economist with the Institute for Trend Research, speaking on Planning for Change and Steven Little, Senior Consultant with Inc. Magazine, who will speak on Growing Your Business in the 21st Century.
  • At the May 5 Exhibitors Showcase you can check out the latest trends and developments in material handling. Hundreds of manufacturers and consultants from around the world will be on hand to showcase and demonstrate their products and services.
  • A golf tournament and biking tour are among numerous optional tours available for the fun-seeking. Ticket discounts to area theme parks are also available.

Ergonomics Can Significantly Decrease Worker Injuries

Material handlers and laborers suffer more injuries and illnesses than construction workers, truck drivers or, indeed, any other category of workers, according to the U.S. Department of Labor. Material handlers and laborers miss more work days and therefore cost U.S. businesses more money in lost man-hours and higher insurance and healthcare costs than any other worker class.

Numerous studies have proved that ergonomically-designed equipment and systems can significantly decrease worker injury. Many manual tasks necessary during the handling of materials require repetitive motions — pushing, pulling, bending, lifting and carrying — that place undue strain on the human body. These actions can result in sprains, strains, back pain and other musculoskeletal injuries. Back pain is by far the most commonly reported workplace injury in the material handling industry. Treatment is generally lengthy and expensive, gobbling up the lion’s share of healthcare and workers’ compensation costs.

The implementation of an ergonomics program can significantly reduce injuries and their associated costs while improving productivity and worker morale. The Material Handling Industry of America (MHIA) has published a 68-page booklet of tips for improving ergonomics in the material handling industry. Click this link to download MHIA’s free Ergonomic Guidelines for Manual Material Handling. For more information on ergonomically-designed electric and motorized carts, pushers and tuggers, visit the DJ Products website.

Next time we’ll share some of MHIA’s best tips for improving ergonomics in the material handling industry and reducing worker injury and its associated costs.

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.”