Tag: Material Handling

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.

Material Handling Headed for a Workforce Crisis

Not a single one of America’s top players in material handling and logistics wanted their sons and daughters to be working in a distribution center as adults. That was the shocking result of a show-of-hands poll Benoit Montreuil, president of the College Industry Council on Material Handling Education, took during a speech at last summer’s Material Handling and Logistics Summit. The straw poll of industry leaders caused Montreuil to take a hard look at the future of material handling and the workforce issues that will help define that future.

Montreuil believes America’s growing workforce crisis, which he said is not industry specific, is rooted in three issues:

  1. As Baby Boomers retire, there are fewer workers to replace them. America’s workforce is shrinking.
  2. America’s next generation of workers prefers white collar jobs to jobs in factories and distribution centers. To cut costs, many businesses are outsourcing labor jobs to foreign countries. Immigrant laborers comprise the largest segment of factory and distribution workers, a trend that is growing.
  3. Material handling and logistics jobs are perceived to be dull, entry-level jobs requiring little skill and garnering bottom-rung pay.

The obvious short-term solutions are to import more foreign workers eager to work in America under current conditions and for present pay levels, undertake a major marketing initiative to change the negative image of material handling and attract a new workforce, and computerize and automate our operations to minimize manpower needs. However, Montreuil warned that long-term solutions will require a change in the material handling industry’s paradigm.

Next time: The future of the material handling industry.

Watch Our Trailer Caddy in Action

You’ve seen those guys at the truck shows who strap a rope around their chest and pull a mega-ton truck across the ground, their muscles bulging and popping with every step. Well, you can do that too, and you’ll only need one hand! With the aid of the DJ Products’ TrailerCaddy, anyone can move multi-ton trailers with ease. Just click here to watch a You Tube video of our TrailerCaddy in action.

The DJ Products TrailerCaddy is a powered mover designed to push or pull trailers that require lifting on one end before maneuvering. Designed to move equipment short distances, the TrailerCaddy makes it possible for any employee to move an equipment trailer, RV, camper or boat across a show room floor, from one point to another in the plant, into position at a trade show or to a new position in the lot. The TrailerCaddy does not require bulging muscles or super-human strength. The caddy does all the heavy lifting. All your employee does is steer.

Our powered TrailerCaddy is less bulky and more maneuverable than traditional electric pullers. This cost-efficient electric puller will decrease fuel and maintenance costs. Maximum operator control and maneuverability, particularly in tight spaces, means minimal damage to surrounding parts and equipment. Ergonomically designed for easy use, the TrailerCaddy decreases accidents and prevents worker injury associated with muscle strain. You’ll save in decreased medical expenses, insurance costs and workmen’s compensation claims. Visit our website for complete information about the TrailerCaddy.

Michigan Proposes Ergonomic Regs to Curb Injuries

In response to concern about workplace injuries, Michigan plans to institute new state regulations targeting repetitive-stress job injuries. Under the proposed rules, employers would be required to offer ergonomic training and work to correct reported injuries. State regulators would have the power to punish employers for repeated worker injuries. Critics are concerned that the rules will place another financial burden on Michigan’s already struggling economy.

California is the only other state with similar regulations, despite the fact that repetitive-stress job injuries are estimated by OSHA to cost America more than $20 billion annually, or about one-third of the total workers’ compensation costs paid by employers. “It’s a significant issue, even though the standard is fairly minimal,” said Doug Kalinowski, director of MIOSHA. “It’s been very contentious.”

In 2001, repetitive-stress injury regulations proposed by federal regulators were estimated to cost employers $5 billion. Those regulations were blocked by Congress. Michigan’s Small Business Association is concerned that the costs of training and reporting procedures will place a significant burden on small businesses and make it harder for them to compete nationally. Larger companies that have ergonomics programs in place would be exempted under the proposed rules.

Manufacturers are similarly concerned. “It’s a pretty broad issue and there are a lot of costs involved,” noted Amy Show of the Michigan Manufacturers Association. “We don’t know what true costs are going to be until we know how strict the department is going to be in enforcing this.”

The proposed rules would only apply to general industry. Construction, agriculture, mining and domestic employment are specifically excluded. But the construction industry and labor representatives believe that if the rules are adopted, it will only be a matter of time before they are expanded to include construction. “There are many within the building trades, or ironworkers, that suffer from repetitive-motion injuries,” said William Borch, president of Ironworkers Local 25 in Saginaw, Michigan and one of the labor representatives who reviewed the proposed rules.

“The problem is that … these types of injuries are not an imminent danger [to life], even though they can be career-ending types of injuries and cause long-term pain and suffering,” Borch said. Considering the risk to workers, Borch felt the proposed rules provided minimum standards. “It doesn’t seem like a lot to ask,” he said.

Advocates of the proposed rules argue that the implementation of ergonomics creates a safer work environment, increases productivity, minimizes downtime and decreases workers’ compensation costs — all formidable inducements to embracing ergonomics.

ProMat 2009 to Demonstrate Supply Chain Solutions

Well having spent 20 bitter, cold winters in Chicago shoveling endless mounds of snow, I have to admit that when I got my invitation to ProMat 2009, I was underwhelmed about the offer to “join us in January in Chicago.” However, you can’t fault Chicago for its exciting city life, excellent restaurants, magnificent skyline and ever-patrolling army of snowplows, so I’m game for another frosty experience in the Windy City. And who could miss the Material Handling Industry of America’s annual international exposition? ProMat 2009, Solutions that Make the Supply Chain Work, promises to provide an invigorating look at the hot new trends and innovations in material handling and logistics.

ProMat will showcase more than 800 solution-packed exhibits from top equipment and technology providers in the material handling and logistics industries. It’s your opportunity to not only talk to the pros but see their solutions to industry applications in action. Given the country’s current economic problems, I think we can all benefit from solutions that promise to streamline operations, increase productivity, reduce costs, improve customer service and improve our bottom line.

I’m particularly looking forward to Forrest Sawyer’s moderation of the keynote discussion on building the workforce of the future. We’ve discussed in this space before the workforce challenges that will face our industry in the coming years: retiring boomers, declining worker population, increased workforce diversity, life/work balance and a move toward more technical skill sets. These issues aren’t going to go away and we, as an industry, need to develop strategies for embracing the challenges of the future.

We’ve also talked in this space about the globalization of material handling, logistics and industry in general. With buyers and sellers from more than 90 countries in attendance, ProMat offers an opportunity to start making connections so you’ll be ready to flex your global wings.

Education is always a major focus of the annual MHIA show. This year’s Knowledge Center will bring 100 Educational Seminars to the show floor, all free to attendees, as is the keynote discussion. Seminars will focus on the latest material handling and logistics trends and innovations for manufacturing, distribution, and supply chain operations.

ProMat 2009 will be held from January 12-15, 2009 at McCormick Place South in Chicago, Illinois. Plan to go and learn about emerging trends and leading edge developments in the industry. See solutions in action and talk to their purveyors. Network with other professionals from across the country and around the globe. ProMat 2009 is your chance to learn, explore and rekindle your passion. For complete information and registration, visit the ProMat website.

What Is the Future of the Material Handling Industry?

The future of the material handling industry is at a crossroads in America. A declining workforce, decreased interest in blue collar jobs and negative perceptions about pay and job satisfaction threaten the future of material handling. The short-term solution for survival is to hire an increasingly immigrant workforce, mount a PR campaign to revamp our image, and automate to minimize manpower strain, says Benoit Montreuil of the College Industry Council on Material Handling Education (see our April 18 post). “I believe that each of these three solutions has merits in specific settings,” said Montreuil, “but that it will be insufficient for addressing the scale and scope of the emerging crisis.”

If we are to survive as an industry, material handling must change its basic paradigm, warns Montreuil. He believes that by automating many of the steps in warehousing and logistics, we have stripped workers of the opportunity to think, make decisions and have input into their jobs, the very things that provide job satisfaction. When workers are merely required to follow a pre-determined pattern, as in pick-to-light solutions, they become little better than robots, says Montreuil. By removing the challenge from the job, he believes, we are losing our most important resource — the intelligent, innovative worker.

The alternative paradigm that Montreuil envisions is a material handling industry that relies on highly-skilled, certified logistics professionals operating in self-sufficient teams in distribution centers, factories and logistics applications around the world. These professionals would be “trained to exploit all the physical handling and transport technologies,” says Montreuil, combining automation with manual operations to achieve maximum efficiency. In his utopia, Montreuil sees a material handling industry that offers “career paths for their talented workforce.”