http://blog.lenoxtools.com/industrial-metal-cutting/feed/

industry news

Ball and Roller Bearing Manufacturers Focus on Sustainability as Strategy

November 30, 2016 / , , , , , , , ,


In today’s challenging market, any edge you can carve out against the competition is beneficial. While traditional improvement strategies such as lean manufacturing, ongoing training, and preventative maintenance can help improve your operational success, top performers are looking beyond long-established methods to differentiate themselves from their competitors.

According to the brief, “Resource Allocation Strategies for Leading Industrial Metal-Cutting Organizations,” industry leaders understand the importance of thinking outside the box. “In the spirit of continuous improvement, best-in-class managers need to explore all of the ways they can save their operation time and money,” the brief states.

Enter sustainability—the latest initiative manufacturers are using to reduce costs and gain a competitive advantage. Whether implementing strategic energy plans or adopting more environmentally friendly processes, today’s industrial manufacturers are finding that “going green” can provide bottom-line savings.

For example, according to The U.S. Green Building Council report, LEED in Motion: Industrial Facilities, more than 1,755 industrial facilities have received a voluntary green building certification system called LEED – Leadership in Energy and Environmental Design. As stated here in a blog from Frost & Sullivan, experts believe that the operational efficiencies gained by following LEED building principles are real and measurable.

Take Fiat Chrysler’s Trenton South Engine plant as an example. The Michigan-based facility was the world’s first engine plant to achieve a Gold LEED rating, which has helped cut the plant’s annual CO2 emissions by 12,000 metric tons, reduced energy consumption by 39%, and saved about $1.6 million a year.

Ball and roller bearing manufacturers are following suit. For the last 17 years, industry leader SKF has been listed as one of the most sustainable companies by the Dow Jones Sustainability World Index (DJSI). “Our long-running inclusion in the DJSI is something that we are all very proud of within SKF,” stated Rob Jenkinson, director of corporate sustainability at SKF. “Sustainability issues for businesses have evolved during this period, with an ever increasing focus on reducing negative environmental impacts and doing more for society as a whole. We maintain our focus on understanding these issues and the role we can play to help address them—now, and in the future.”

New Hampshire Ball Bearings, Inc. (NHBB) is also focused on sustainability as a strategy and has a formal Energy Management Plan in place. “Energy management is at the core of our strategy to achieve sustainability because it is so vital to our long term health,” the company says on its website. “Rapid economic growth, especially in the developing world, is expected to increase global energy consumption 40% by 2035. The expected increase in energy costs and the potential for supply disruptions compels us to identify and implement aggressive energy efficiency improvements.”

Instead of embracing sustainability as something that’s just “good to do,” more and more manufacturers are realizing that there are practical short-term and long-term financial benefits to implementing environmentally conscious improvements, according to a blog from the Manufacturing Extension Partnership (MEP). The industry group lists five key business advantages to adopting sustainable practices. The following are the top three: (You can read the full list here.)

  1. Reduce Energy-Related Costs. Energy and water costs are a prime concern for manufacturers. Focusing on improvements can reduce these expenses, typically on an annual basis. In addition, switching to energy-efficient lighting and adjusting lighting levels in accordance with your production schedule will reduce your long-term electrical costs. Regular equipment inspections can also prove beneficial.
  2. Attract New Customers and Increase Sales. Green and sustainable practices can make your company more marketable. Consumers are more conscious of the environment, and making improvements will strengthen your reputation. Whether you’re an OEM or a supplier, highlighting your initiatives to the public will help you attract a whole new base of customers, resulting in increased sales.
  3. Tax Incentives. There are a variety of tax credits and rebates on both the federal and state level for manufacturers who proactively implement more sustainable improvements. There may be incentives available to your business. Check out the U.S. Department of Energy’s website and the Database of State Incentives for Renewables & Efficiency.

Of course, the bigger picture benefit of sustainability is its positive impact on the environment. However, as Fiat, SKF, NHBB, and many other industrial manufacturers are discovering, developing and integrating a detailed sustainability vision into your long-term strategic plan can have real, measurable business advantages that contribute to the bottom line.

industry news

Implement an Obeya for Your Industrial Metal-Cutting Organization

November 15, 2016 / , , , , , , , ,


The metals industry is constantly facing challenges—high inventory levels, fluctuating raw material costs, and declining shipments to name a few. To help offset the challenges and meet customer demands, industrial metal-cutting companies have long turned to continuous improvement practices to reduce downtime and boost productivity.

In fact, continuous improvement is an essential practice for today’s metal-cutting organizations. As stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, the difference between a metal-cutting company that survives versus one that thrives is continuous improvement.

One continuous improvement tool executives are incorporating into their operations is “obeya.” As defined here in a blog from visual solutions provider Graphics Products, obeya (also spelled oobeya) is a Japanese term for “big room” or “great room.” In lean manufacturing, it is a dedicated room that is reserved for employees to meet and make decisions about any production challenges.

According to the blog, the idea behind obeya is for employees to collaborate easier and solve problems faster by having a central location to meet, share, and discuss key information. Benefits of using obeya include:

Like other lean practices, obeya is part of the Toyota Production System (TPS), which also includes 5S, Kaizen, and Total Productive Maintenance (TPM). According an article from IndustryWeek, obeya is also referred to as the “brain” of TPS and is often called the “Adrenaline Room” at Toyota.

“We call it the Adrenaline Room because we are trying to encourage our manager to address the day, every day, urgently, to improve the output to our customers, internal and external,” Scott Redelman, senior manager, production control and logistics at Toyota Industrial Equipment Manufacturing, told IndustryWeek. “So if we think about each process or each person—even within our four walls—as the customer, how do we aggressively have the adrenaline and the energy, the sense of urgency to quickly react and grow together to make that improvement for the customer? We have to have the adrenaline to do it.”

Industrial metal-cutting companies have also benefitted from obeya. As described in IndustryWeek, ball-bearing manufacturer Timken created an obeya at its Shiloh, N.C. plant four years ago to help meet sudden growth at the time. The company also added an obeya at its Honea Path, S.C. plant earlier this year. According to operations manager Robert Porter, the investment is paying off with productivity improvement year over year, even in down years.

Obeya, however, isn’t just placing your managers in a room and hanging charts on the wall. To ensure obeya is an effective tool, the Lean Enterprise Institute suggests managers focus on a few key issues:

While there are many continuous improvement tools available, obeya has proven itself valuable. In fact, Toyota considers it one of its lean pillars. Industrial metal-cutting companies that are looking to stay ahead of the competition in today’s challenging market can experience the benefits of obeya too.

What lean manufacturing tools are you using to improve your metal-cutting operation? Is obeya one of them?

industry news

Three Cost Management Strategies for Metal Fabricators

November 10, 2016 / , , , , , , , , ,


According to research from Kronos, U.S. manufacturers as a whole are bullish about future growth prospects. As reported by IndustryWeek, the research shows that nine out of 10 company leaders expect revenues to increase every year over the next five years, and well over half anticipate strong annual growth of 5% or more.

That doesn’t, however, mean companies don’t anticipate stumbling blocks. In fact, the report lists five critical challenges today’s manufacturers feel could limit their potential sales and profit growth. Not surprisingly, three of those challenges are cost-related—material costs, labor costs, and transportation/logistics costs.

So while some manufacturers are optimistic right now, there is no question that uncertainty about market conditions remain. The latest data from the Institute for Supply Management, for example, revealed that that Fabricated Metal Products sector contracted in October; however, new orders were up in September. This type of instability means that most fabricators are keeping a close eye on cost.

As stated in the brief, Cost Management Strategies for Industrial Metal-Cutting Organizations, there are no “one size fits all” answers when it comes to cost management. However, there are some of guiding principals industry leaders are using to keep costs low.

From an operations standpoint, managers can better manage equipment costs by making sure saws and other metal-cutting tools are operating as optimally as possible. According to the brief, this includes ensuring that equipment is running at the proper settings and that fluids are adequate.

“Closely monitoring blade life and maintenance reports are a critical aspect of managing equipment costs,” the brief explains. “If operators are taking too long to cut a specific material or blade costs are up, managers should review equipment settings and monitor the operator in action.” Consistent general and preventative maintenance programs can also help metals executives better manage costs.

From a more strategic standpoint, there are several best practices metal fabricators can follow. Below are three strategies to consider:

  1. Partner up to increase buying power and save money. As suggested in an article from Thomasnet, partnering with other small businesses can yield volume discounts and achieve savings. Consortiums put the benefits of economies of scale into effect for small businesses that would otherwise be left paying premiums. In addition, small firms should seek strategic partnerships with key suppliers. Purchasing from fewer suppliers saves time and resources while building trust. A small business owner can talk openly with a strategic partner and ensure the company is not overspending due to unnecessary costs.
  2. Include financial personnel in improvement initiatives. If your company has decided to embark on a continuous improvement activity to save costs, you may want to check out this article from IndustryWeek. In addition to discussing the dangers of disguising cost cutting as improvement, the article also reminds managers to spend time with the financial community and hold discussions on costs and savings before starting an improvement project. Managers should work closely with the financial team to develop a tracking system for possible problems to prove cost savings in the future. The article also suggests that a person from the financial community be included in each improvement team. This person will be able to validate cost savings and ensure all costs are tracked accurately.
  3. Factor time into the cost equation. While most people believe the old adage “time is money,” traditional accounting practices don’t exactly account for the cost of time—specifically, customer lead times—in metal fabrication. As explained in an article from The Fabricator, traditional cost accounting treats inventory as an asset and does not capture the true costs of long lead times. However, according to the author of the book, The Monetary Value of Time, there is an accounting method that corrects this oversight and complies with generally accepted accounting principles. You can read more about this method here.

Regardless of whether you are optimistic about the market and making investments or taking a more cautious approach and holding your pennies close, it is always important to closely monitor costs. By taking the time to approach cost strategically, today’s metal fabricators can save money, stay competitive, and, hopefully, see long-term increases to the bottom line.

industry news

One Key Investment that May Impact the Future of Industrial Metal-Cutting

November 1, 2016 / , , , , , , ,


Although recent reports paint a brighter picture of U.S. industrial manufacturing, many companies are still unsure of what the future will bring—and how to prepare for it.

The first half of 2016 didn’t start off strong for industrial manufacturing. Industrial production was essentially unchanged in the first quarter of 2016 and then fell at a 1% annual rate in the second quarter. However, conditions made a turn in the right direction in third quarter when industrial production rose at an annual rate of 1.8 percent—the first quarterly increase since the third quarter of 2015.

Recent data continue to show good overall conditions. The Institute for Supply Management’s Report On Business, for example, states that activity in the manufacturing sector expanded in October, and the overall economy grew for the 89th consecutive month. Specifically, the October PMI registered 51.9 percent (a reading of 50 or higher indicates growth), an increase from the September reading of 51.5 percent.

Unfortunately, ISM’s report wasn’t all good news, especially for the metals sector. Just like in September, both the Primary Metals and Fabricated Metal Products sectors reported contraction in October, although one survey respondent from the Fabricated Metals Products sector stated, “Business is much better.”

With the year drawing to close, what does all of this mean for industrial metal-cutting companies? As executives evaluate performance and look to strategize for the future, the question of whether or not to invest in information and technology advancements will likely be at the forefront of discussion. With terms like “machine-to-machine communication” and “Internet of Things” flying around, many companies are trying to discern whether or not these ideas are truly worth the investment, or if they are nothing more than “buzz words.”

As stated in the white paper, Tackling the Top 5 Challenges In Today’s Metal-Cutting Industry, today’s uncertain market requires managers to carefully and strategically determine whether or not allocating resources to automation and technology will offer a true return on investment. Based on some recent reports from industry experts, technological investments are not only worth it, but necessary for future success, regardless of economic conditions.

A recent article from PwC put it this way:

“Manufacturing may be facing some headwinds, but it’s undeniably in the midst of a technological renaissance that is transforming the look, systems, and processes of the modern factory. Despite the risks — and despite recent history — industrial manufacturing companies cannot afford to ignore these advances. By embracing them now, they can improve productivity in their own plants, compete against rivals, and maintain an edge with customers who are seeking their own gains from innovation.”

Of course, this type of transition is easier said than done. There is a lot to consider before companies start planning, strategizing, and investing in what many are calling “Manufacturing 4.0.” To help give companies a little perspective, the Manufacturing Leadership Council has identified six critical Issues facing the manufacturing industry as it undertakes the journey toward an information-based future. Described in detail here, these issues include the following:

  1. Factories of the Future. Large and small manufacturers, in both process and discrete manufacturing, must now understand and embrace the potential of new and evolving production models, materials and technologies along the journey towards Manufacturing 4.0 to help them create more autonomous, flexible, connected, automated, intelligent, reconfigurable, and sustainable factories and production models for the future.
  2. The Integrated Manufacturing Enterprise. To maximize the potential of Manufacturing 4.0, manufacturers of all sizes need to actively transform traditional, inhibitive functional silos to create more integrated, cross-functional, collaborative enterprise structures, both within and beyond their organizations. These structures must be supported by new digital thread technologies that stretch across the value chain from ideation, to product end of use.
  3. Innovation in Manufacturing. Manufacturers must now successfully develop and manage rapid, continuous, collaborative, and often disruptive innovation processes across the enterprise to drive growth, new products and services, operational efficiencies, and competitive success in the world of Manufacturing 4.0.
  4. Transformative Technologies. Manufacturers must learn how to identify, adopt, and scale the most promising M4.0-enabling technologies in order to achieve greater agility and competitiveness and to drive innovative new business models and better customer experiences.
  5. Next-Generation Manufacturing Leadership & the Changing Workforce. Manufacturing 4.0 requires manufacturing leaders and their teams to become more collaborative, innovative, and responsive and to make decisions based on a greater understanding of manufacturing’s role in company strategy. That means leaders must embrace new behaviors, structures, and strategies. And they must transition the talent within their organizations by identifying, attracting, developing and retaining the next generation of people and skills.
  6. Cybersecurity. In the face of increasing vulnerability to external cyber threats and potential internal disruption, manufacturing companies must identify the most effective cybersecurity processes and technologies and create a culture that will ensure operational continuity, data security, and IP protection.

While the industry still has a way to go before Manufacturing 4.0 becomes mainstream, there is no question that technology is changing the manufacturing landscape. Today’s economic conditions may be uncertain, but industrial metal-cutting companies need to ask themselves if they’re willing to do what it takes to prepare for whatever the future holds.

industry news

Key Considerations for Bringing Mobility to Your Forging Operation

October 25, 2016 / , , , , , , , , , ,


As smart phones and other mobile devices become ubiquitous among consumers, it’s not surprising that mobile technologies are starting to be used increasingly in the manufacturing world. Although manufacturing hasn’t gone totally mobile, a growing number of shops are deploying some form of mobile technology to improve efficiency and communication on the shop floor.

Slow to Adopt
There is no question that manufacturing has lagged other business sectors in adopting mobile technology. However, this is not to say that plant managers don’t want to go mobile. In an interview with Design News, David Krebs, executive vice president of VDC Research, says that the interest is there, but issues like budgetary constraints, security concerns, and a lack of IT resources are holding back a lot of manufacturers.

“In addition, many existing manufacturing environments are not conducive to wireless technologies and its infrastructure,” Krebs tells Design News. “Low penetration of WiFi in manufacturing environments and the difficulty of wirelessly interfacing with shop-floor equipment also represent gating issues.”

However, most experts agree that the tide is starting to change as technologies advance and the Industrial Internet of Things becomes more prevalent. In fact, according to PwC’s 18th Annual Global CEO Survey, mobility was the top technology priority among industrial manufacturing CEOs in 2015. Specifically, the survey found that industrial manufacturers regarded mobile technologies as a strategic way to engage with customers.

Key Trends
Other reports confirm that interest is growing among manufacturers. “Given mobile’s role in improving information flows, it is not surprising that 78 percent of manufacturing companies agree that mobile solutions provide their company with a competitive advantage,” writes Matthew Hopkins, an analyst at VDC Research. “This advantage is demonstrated by tangible use-cases, such as predictive maintenance, workforce management, and energy management, which yield real returns on investment (ROI). Companies’ quick to realize these benefits have embraced mobility for some processes, such as inventory management, in large numbers.”

Last year, VDC conducted a survey among technology influencers at manufacturing companies and found that 36% of organizations actively used mobility solutions to support business initiatives. The survey also revealed the following key trends:

Going Mobile
If mobility is something you want to bring into your forging operation but you aren’t sure where to start, LNS Research, a consultancy based in Cambridge, MA, lists nine key ways companies are using mobile devices in manufacturing environments. Below are the top-three uses (You can read the full list of nine here.):

  1. Dashboards. Solutions providers have been offering performance dashboarding apps for a few years now, and many are taking it a step further by delivering role-based information that has been analyzed and contextualized for the specific personnel based on their information needs (i.e., a plant manager versus an operator or quality manager).
  2. Quality Auditing. In the past, quality auditing in remote locations typically involved some form of paper. Today, on-site and off-site auditing is typically done within a smartphone or tablet application, offering better integrity of information and allowing audits to be standardized across multiple locations.
  3. Corrective Actions. Today, most solutions providers offer some form of mobile app to support interactions with the corrective action process. These apps typically leverage the native capabilities of mobile phones and tablets, such as GPS/location services, voice/visual recording, and more.

If mobility isn’t on your radar yet, you may want to reconsider. Your shop may be missing out on some prime opportunities for cost savings or efficiency gains. As stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, proactive leaders are focused on making positive changes in their operations so they can quickly respond to changing customer demands. In other words, today’s forges can’t afford to be reactive to trends. According to Mike Roberts of LNS Research: “If you’re not on the path to using mobile apps to better manage your production operations, you’re seriously at risk of being stuck in the past.”

To read more about bringing mobility into your forging operation, check out the article “7 Tips for Taking Your Operation Mobile,” published by American Machinist.

industry news

Tips for Cutting Titanium Alloys in Your Machine Shop

October 20, 2016 / , , , , , , , , ,


As end markets like aerospace and medical look for ways to improve the strength and reliability of their products, many machine shops are seeing increased use of harder materials like titanium alloys.

However, there are a few characteristics that make titanium alloys more challenging to work with than many other metal materials. To help machine shops tackle this often tough-to-cut metal, the following is a brief overview on titanium alloys and the most effective cutting tools and methods for working with this material.

Taking on Titanium
Titanium alloys are praised for their strong, yet lightweight properties. The material also has outstanding corrosion resistance. As explained here by Modern Machine Shop, these properties make the material an ideal choice for aircraft designs,medical devices, and implants.

However, titanium can be tricky to work with due to its reactivity at higher temperatures and its tough composition. “Since titanium’s heat conductivity is low, it will flex and return to its original shape a lot more easily than steel or high-nickel alloys,” explains an article from American Machinist. “The downside of this is experienced during machining: the heat from the operation does not transfer into the part itself or dissipate from the tool edge, which can shorten tool life.”

The article goes on to say that this issue is compounded by the tight tolerances demanded by most customers.  “For aerospace, the tolerances are to within a thousandth of an inch, and if violated, the part must be scrapped,” the article states. “Achieving such tolerances while using such a malleable material is difficult, and wear on the cutters increases significantly compared to similar efforts with nickel and chromium alloys.”

The technical article, “Machining Titanium and Its Alloys,” published by jobshop.com provides key insights into the chemistry behind titanium alloys and lends the following tips for its successful manufacturing (You can read the full article here):

Choosing the Right Blade
Like any material, one crucial aspect of cutting titanium alloys is choosing the right tool. As industry experts, The LENOX Institute of Technology (LIT) offers critical advice concerning blade selection in its white paper, Characteristics of a Carbide-Friendly Bandsaw Machine. Since titanium alloys are a stronger and harder material, they pose a unique cutting challenge best solved by carbide blades. Using a carbide-tipped band saw blade not only allows for the successful cutting of titanium alloys, but it simultaneously offers longer blade life and faster cutting as well.

LIT’s white paper further elaborates on the benefits of the carbide technology by providing a real-life comparison between a bi-metal and a carbide blade. The test produced the following results:

Ultimately, the higher speed and feed rate of the carbide blade enabled it to make the cut 13 minutes faster, translating into 160 more parts produced during an 8-hour shift than its bi-metal counterpart.

Meeting Material Demands
Material trends will come and go, but metal-cutting companies that want to successfully serve existing and potential customers need to be prepared to adapt to the industry’s changing material needs. As the use of titanium grows, today’s machine shops need to understand the material’s unique characteristics and machining requirements so they are fully equipped to tackle every one of their customers’ demands.

industry news

Two Technologies that Help Industrial Metal-Cutting Companies Improve Maintenance

October 15, 2016 / , , , , , , ,


While a full economic recovery is still uncertain, manufacturers are finding ways to gain a competitive edge and improve productivity. New advancements and technologies, including “smart” manufacturing and the Internet of Things (IoT), are helping the manufacturing industry do just that.

One way metal-cutting companies are optimizing their overall operations is by using technology to improve maintenance programs. As cited in this eBook, 5 Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, machine breakdowns are one of the top causes of lost productivity, and when productivity suffers, so does the bottom line. While many manufacturers have realized success with tried and true preventative maintenance initiatives, which ward-off an inevitable breakdown, two technologies—predictive maintenance (PdM) and CMMS— are helping manufacturers improve overall maintenance even more accurately.

Predictive Maintenance
According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, predictive technology, specifically, holds the most potential for manufacturers. According to the study, more than 500 executives from around the world ranked predictive analytics as the number one future advanced manufacturing technology. IoT, smart products and smart factories, and advanced materials were also considered critical to future competitiveness.

Unlike preventative maintenance, which uses anticipated and planned downtime to prevent unplanned breakdowns and minimize cost impacts, predictive maintenance (PdM) aims to predict breakdowns before they even occur. Software and sensors collect data, and algorithms identify not only the anticipated failure, but also calculate the probable time that failure will occur.

In fact, several metals leaders are already reaping the rewards of predictive maintenance to repair or replace parts before failure and eliminate both planned and unplanned downtime, as reported in this blog post.

CMMS
Another technology helping industrial metal-cutting companies improve maintenance is CMMS, or a computerized maintenance management system. While PdM tools provide powerful data, most experts agree its information’s value is limited without the context provided by CMMS software. CMMS software tracks and schedules maintenance tasks by analyzing data to identify bottlenecks before they even take place.

According to an article from MRO Magazine, CMMS can improve maintenance on the production line as it reduces downtime and repairs, improves the lifecycle of equipment and forecasts replacement, and reduces rework and manufacturing scrap—all while providing crucial data for future decisions and improving scheduling and planning.

What does this look like in practice? As described here in an article from Better Buys, one CMMS solution included data-entry fields for technicians to input degradation values manually. The system would provide a graph indicating how many months were left until failure and then give a plan for replacement on a set date if the equipment continued being used excessively.

Making the Switch
In most cases, larger manufacturers have been the only ones looking into PdM and CMMS-based maintenance programs. However, as technology advances and competition intensifies, many smaller companies are starting to invest in the technology as well.

There is no question that making the transition from a paper-based maintenance system to a digital one can be overwhelming, especially for smaller metal-cutting organizations. An article from IndustryWeek provides a few tips for simplifying the transition over to CMMS:

  1. Form a team. Make sure a small team oversees the transition. Designate a lead planner and scheduler to define the processes (such as what equipment and data to collect). The team should understand how the company processes information, how it organizes workflows and analyzes key data.
  2. Data download. A CMMS system is only as good as the data in it. Determine how accessible that data is and establish a baseline of how much to collect before making the switch. Once up and running, don’t stress over every data point. Add as you go to bulk-up your data inputs.
  3. Tech knowledge. Consider how comfortable your team may or may not be with technology. Some may not have any computer experience. A basic computer training course can quickly ease worries.
  4. Tech training. In addition to basic training, the entire maintenance team should be trained on CMMS best practices. Develop step-by-step guides with screen shots at each workstation to help with the transition.
  5. Codes. To help track performance and maintenance trends, start with 10-15 industry-standard codes when setting up maintenance activities. Consistent problem and failure codes can provide valuable information when it comes time to replace equipment before failure.

Technology is no doubt changing the manufacturing landscape, and today’s industrial metal-cutting companies need to ask themselves if they’re willing to do what it takes to prepare for the future. Investing in new technologies and maintenance programs may be one way to keep the competition at bay while optimizing production for future demand.

What technology investments is your organization using to optimize your maintenance department?

industry news

A Look at Industry 4.0 in Your Fabrication Shop

October 10, 2016 / , , , , , , , , , , ,


Thanks to advancements in machine-to-machine (M2M) and communications technology, many believe the manufacturing industry is on the brink of the “fourth industrial revolution,” also known as Industry 4.0. This concept has been widely discussed and promoted in Europe, especially by German manufacturers Siemens and Bosch, but the term is starting to gain traction in the U.S as well.

What is Industry 4.0?
Because it is a newer term, definitions for what comprises Industry 4.0 vary greatly. A report from Deloitte states that there are four characteristics that define Industry 4.0:

  1.   Vertical networking of smart production systems
  2.   Horizontal integration via a new generation of global value chain networks
  3.   Cross-disciplinary “through-engineering” across the entire value chain
  4.   Acceleration through exponential technologies

An article from Forbes defines Industry 4.0 as “a combination of several major technology innovations, all maturing simultaneously, and expected to have a dramatic impact on manufacturing sectors.”  More specifically, the article states that technologies such as advanced robotics and artificial intelligence, sophisticated sensors, cloud computing, and the Internet of Things, are joining together to integrate the physical and virtual worlds.

Simply put, Industry 4.0 is the advent of the long-awaited “smart factory,” in which connectivity and advanced technologies are being used to streamline decisions, optimize processes, eliminate waste, and reduce errors.

Industry 4.0 In Practice
According to the Forbes article, Industry 4.0 has the potential to offer manufacturers three major benefits:

What could this look like in your fabrication shop? EVS Metal, a precision metal fabricator headquartered in Riverdale, NJ, says here in a blog post that Industry 4.0 “will eventually impact the way we fabricate and machine both single items and finished products, from start to finish, including warehousing and shipping, whether we’re manufacturing full production runs, or single prototypes.”

On a small scale, fabricators can start by equipping components and machines with necessary Industry 4.0 features, such as sensors, actuators, machine-level software, and network access to measure productivity of metal-cutting equipment. For example, one metal service center, featured here in a white paper, is using an internal software system to automatically track the number of square inches processed by each band saw and each blade. At any point, the operations manager can go to a computer screen, click on a saw, and see how many square inches that saw is currently processing and has processed in the past. This has allowed the service center to easily track trends and quickly detect problem areas.

This, however, is only the beginning. Once a manufacturer starts capturing relevant data from multiple machines, this data can be further analyzed to detect patterns, helping managers forecast and, eventually, automate decision-making processes. In a metal-cutting environment, this might include predicting blade life and equipment maintenance needs, which would essentially turn disruptive, unplanned downtime to more anticipated, planned downtime. This could translate into more jobs completed on time.

The Time is Now
Like any trend, it will take a while for Industry 4.0 to fully take hold. However, many experts are saying that industry leaders are embracing this next generation of manufacturing and, more importantly, are starting to make investments.

A PwC survey encompassing 2000 participants across nine industry sectors has concluded that Industry 4.0 will revolutionize industrial production and that first movers are transforming into digital enterprises. According to the study, 33% of companies say they’ve achieved advanced levels of digitization today, and 72% of companies expect to achieve advanced levels of digitization by 2020.

While no one believes the changeover to Industry 4.0 capabilities will come cheap, more than half of companies in PwC’s survey expect a return on investment within two years. “The payoff will potentially be enormous, as competitive landscapes get redefined,” PwC states. “Industrial companies need to act now to secure a leading position in tomorrow’s complex industrial ecosystems.”

Is your fabrication shop ready to invest in Industry 4.0?

industry news

Non-Residential Construction Industry Continues to Create Demand for Industrial Metal-Cutting Companies

September 15, 2016 / , , , , , , , , , , ,


The year has started off slow, with low production and shipments for metal products. However, the commercial and industrial construction segment is proving its staying powerful when it comes to creating demand for industrial metal-cutting companies.

As we reported in our “Metal Service Center Outlook for 2016,” the construction industry was expected to help industrial metal-cutting companies ride out the storm with total construction starts forecast to grow 6% in 2016.

Over the last few years and most recent months, the construction industry has seen its ups and down, depending on the segment. The electric utility and gas plant category, for example, saw project starts spike in 2015 only to drop this year, according to the latest construction report from Dodge Data and Analytics. In fact, nonbuilding construction dropped 56% in July 2016 as power plant projects ended, causing total new construction starts to fall 11% from the prior-year period.

However, nonresidential building starts are offsetting the steep drops elsewhere, growing 4% in July after a 7% increase in June. Commercial building starts grew 3%, with 20% of the increase attributed to office construction, according to the report.

Cautiously Optimistic
Despite the slowdown and uncertainty about the upcoming presidential election, experts remain optimistic that the construction industry will continue to remain strong into next year. At a recent mid-year forecast, chief economists from the Associated Builders & Contractors, American Institute of Architects, and National Association of Home Builders predicted growth for commercial projects into 2017, as reported by MetalMiner.

“Nonresidential construction spending growth will continue into the next year with an estimated increase in the range of 3 to 4%,” stated Anirban Basu, chief economist for Associated Builders & Contractors. “Growth will continue to be led by privately financed projects, with commercial construction continuing to lead the way. Energy-related construction will become less of a drag in 2017, while public spending will continue to be lackluster.”

In addition, the Architecture Billings Index (ABI) from the American Institute of Architects has posted six consecutive months of increasing demand for design activity, according to this report. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead-time between architecture billings and construction spending.

“The uncertainty surrounding the presidential election is causing some funding decisions regarding larger construction projects to be delayed or put on hold for the time being,” said Kermit Baker, AIA Chief Economist. “It’s likely that these concerns will persist up until the election, and, therefore, we would expect higher levels of volatility in the design and construction sector in the months ahead.”

Making the Cut
Industrial metal-cutting companies that want to grow with the construction market need to know how the market is evolving and be prepared to meet demand for more I- and H-beams, hollow structural sections, and other structural products. More importantly, companies will need to be ready for changing market conditions.

One way industrial metal-cutting companies can ensure they make the cut is to optimize operations. As cited in the Benchmark Survey of Industrial Metal-Cutting Organizations, there are three key ways companies can optimize operations and, in turn, be better prepared to meet customer demands:

  1. Invest in smarter, more predictive operations management. According to the survey, 73-percent of industrial metal cutting operations that follow all scheduled and planned maintenance on their machines also report that their job completion rate is trending upward year over year—a meaningful correlation. The implication is that less disruptive, unplanned downtime and more anticipated, planned downtime translates into more jobs being completed on time.
  2. Embrace proactive care and maintenance of cutting equipment and tools. Ongoing operator monitoring, coupled with corrective instruction and coaching, can have a direct benefit on industrial metal cutting operations—improving their ability to meet customer demands, drive revenues and lower costs.
  3. Invest in human capital. Historically, metal executives have been more likely to invest in technology rather than their people; however, the benchmark survey provides evidence that investing in human capital is critical not only to attack operator error itself, but also to improve on-time customer delivery, drive higher revenue per operator, and lower rework costs.

While industrial metal-cutting companies are set to benefit from another strong year in construction, preparing for changes in segment demand and prices will set the foundation for a solid performance in 2017.

What strategies is your organization taking to take advantage of the construction boom?

industry news

Two Automotive Material Trends Metal Fabricators Should Be Watching

September 10, 2016 / , , , , , , ,


For the last several years, the U.S. auto industry has been a growth driver for many industries, including industrial metal cutting. As we reported in our “Metal Service Center Outlook for 2016,” the automotive sector is one of two industries expected to help metal fabricators “ride out the storm” of today’s uncertain market.

While recent reports have shown that U.S. auto industry sales have started to cool, most experts still believe auto sales will remain strong over the next few years, even if they aren’t breaking any new records. In theory, this is good news for metal fabricators and other companies serving the auto segment. However, sales aren’t the only trend suppliers should be tracking.

According to an article from PricewaterhouseCoopers (PwC), the auto industry is in the midst of change, and the supply chain needs to be ready to respond. “It’s not clear how cars will change in the coming years, but automakers and suppliers no longer have the luxury of sitting out the transformation,” the PwC article states. “If you are an executive at an OEM or an auto equipment supplier, your strategic acumen — your ability to place your company in the vanguard of product trends without running afoul of ever more stringent environmental rules — will surely be tested.”

Put simply: if automotive is one of your key customer segments, it’s time to pay attention.

Material Matters
One of the biggest shifts happening within automotive manufacturing has been the growing use of lightweight materials. To meet federal emission standards, a growing number of U.S. automakers like Ford are using lightweight metals to decrease the weight of their vehicles and, therefore, increase the fuel economy. Many in the industry refer to this trend as “lightweighting.”

Of course, with new materials come new equipment and tooling needs, as well as new cutting parameters and techniques. To ensure that fabricators are prepared, below is a short summary of two materials trends worth following:

Steel Still Reigns—For Now
Even with these new materials hitting the automotive scene, steel will likely continue to be the dominant metal used in automotive manufacturing. According to Automotive World, the average vehicle is still made using between 800kg and 900kg of steel.

As Tim Triplett, editor of Metal Center News, said in an archived editorial, the steel industry won’t likely lose any ground in auto design but, instead, will simply adjust to the trends. “Just as many headlines heralded new developments in lightweight, advanced high-strength steels,” Triplett wrote. “Steelmakers claim the auto industry can meet the government mileage standards by using the new steel alloys, in combination with power train innovations, and at a lower cost than switching parts to aluminum.”

Indeed, reports show that auto manufacturers are already testing the use of lightweight steel alloys, and innovators like GM are even trying mixed-metal manufacturing in which steel and aluminum parts are welded together.

Regardless of which automotive material trends take hold, the point is that fabricators and other suppliers serving this market need to be ready: Do the research, ask the questions, and be ready to adapt accordingly.

1 2 3 4 5 10