Plant April 2013 by Annex Business Media

$12.00

Volume 72, No. 03 April 2013

www.plant.ca

LABOUR CONUNDRUM

Jobs go begging because of skills mismatch

MODIFYING A

MACHINE? Soon you’ll need an engineer’s OK

PM 40069240

NEW TECHNOLOGY SECTION

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HIGHLIGHTS Back-up power with compressed air Beware of counterfeit bearings South Africa joins the BRIC nations Use caution when benchmarking maintenance 13-04-08 10:41 AM

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13-04-04 7:16 AM

Editorial

Outside the comfort zone

hen budget time rolled around in March there was plenty of welcome focus on the world of manufacturing. The Harper government appears to recognize the importance to the economy of creating value through innovation and the production of materials and goods that are either consumed at home or abroad. Among the highlights are the extension of Accelerated Capital Cost Allowance (ACCA) to 2018; funding for workforce training; money for aerospace; money for manufacturing in Southern Ontario; some cash for innovation; help with training costs; and a modest amount for forestry initiatives. The government has also recognized that Canada’s reliance on the North American market is limiting prospects for growth and it’s pounding the international channels to sign free trade and other agreements that will open up markets for manufacturers in the EU, various markets in Asia, South America and Central America. As these new markets open, manufacturers must be willing and ready to cross the threshold, yet companies are showing limited interest moving beyond their domestic and US stomping grounds. PLANT’s annual business outlook survey showed respondents from across Canada were dipping their toes in international waters, but most are sticking close to home. That’s understandable. Close proximity to markets. Similar laws. Same language. Historic ties. Free trade, although some protectionist concerns and logistics challenges because of slowdowns at border points. But Canada’s share of exports to the US has been falling for the past 10 years. Despite an expected rebound that should put some pep into manufacturers’ production lines, exports will continue to fall, according to a TD Economics report. Within the next decade, the bank expects exports to the US to be two-thirds of the total, down from 85% in 2002. TD Economics cites several reasons for this, including the higher value of the loonie combined with higher unit labour costs; a more competitive US market that is engaged in a number of free trade initiatives; a thickening of the Canada/US border; the effects of the recession on imports from Canada; and Canada expanding its trade worldwide. Of course, much of the trade abroad involves resources, but we’re much less adept at sending added-value goods into international marketplaces. Mari Pangestu, Indonesia’s tourism minister and a candidate for head of the World Trade Organization, also observes Canada has too many eggs in the US basket, but efforts to diversify are too narrowly focused on China and India – there are also 600 million people in Southeast Asia. Derek Burney, a businessman, former chief of staff during the Mulroney years and a diplomat, offered some valuable advice for winning in a “turbulent” world at a PwC partners conference last November. He advised manufacturers to adopt a more aggressive and less risk-averse approach to new markets. Think new joint ventures and a new approach to business. And take a long view rather than indulging a preoccupation for quarterly returns. He cited companies such as Bombardier, Power Corp. and CAE that provide lessons for others to learn from, and that staying power, nurturing relationships and building networks over time pay dividends. He also noted Canada is falling behinds in the skills race. In China, more than one in three new graduates have degrees in engineering. In Canada, it’s one out of 10. “It is hard to be innovative if you lack the skill sets to develop new concepts.” It’s not easy out there but opportunity beckons. Manufacturers will have to step outside of their North American comfort zone to take full advantage of the possibilities. Joe Terrett, Editor Comments? E-mail JTerrett@plant.ca.

Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Vol. 72, No. 03, April, 2013 Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

Features

>> TRENDS

10 SKILLS Battle the skills shortage by maximizing the value in your labour force. 11 REGULATIONS In Ontario you’ll need an engineer to pass machinery modifications. 12 ECONOMY Manufacturing gets some action in Budget 2013.

>> OPERATIONS

13 COUNTERFEITING Fake industrial parts such as bearings are a growing concern for manufacturers. 14 THINK LEAN The theory of constraints and how to manage the bottleneck machines. 15 SAFETY How to keep the moisture out of docking areas. HEALTH & SAFETY Ensure ladders are safe. MAINTENANCE Comparing performance? Five benchmarking tips.

>> SUSTAINABILITY

16 SOLAR Sustainable Energy powers up for the German solar market. GREEN MANUFACTURING Making green matter.

>> MANAGEMENT

17 COSTS Manage energy for enterprise-wide value. 19 MOVING ON How to survive a business sale in eight moves.

>> INNOVATION

20 AUTOMOTIVE R&D Researchers are exploring ways to eliminate the driver.

>> TECHNOLOGY

21 ENERGY Air-powered back-up power: It’s clean, it’s cheaper. SUPPLYLINES Supplier news 22 PRODUCT FOCUS Hydraulics and pneumatics 24 PRODUCTS AND EQUIPMENT What’s new in industrial products and machinery. 26 CONFERENCE REPORT Acklands Grainger turns up the heat on e-commerce. 29 PLANTWARE Hardware and software for managing plant operations.

Departments 4 Industry View 5 Careers 6 Events

8 Labour 9 PLANT Pulse 28 Postscript

PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. Tel: 416-442-5600, Fax: 416-510-5140 80 Valleybrook Dr., Toronto, ON M3B 2S9 PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: privacyofficer@businessinformationgroup.ca. Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information contact us at 1-800-387-0273. SUBSCRIPTION PRICE: Canada $69.95 per year, Outside Canada $143.95 per year, Single Copy Canada $12.00. Plant is published 8 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Contents of this publication are

protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. No responsibility for the accuracy of these performance claims can be assumed on the part of PLANT or BIG Magazines LP. Contents copyright© 2013 BIG Magazines LP, may not be reprinted without permission. PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund CPF for our publishing activities.

Printed in Canada ISSN: 1929-6606 (Print), 1929-6614 (Online)

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Departments

>> Industry View

>> Bulletins Iplayco Corp. Ltd., a designer and manufacturer of indoor and outdoor play structures for children, has scored four contracts worth more than $3 million for unidentified corporate customers in North America. Iplayco is based in Langley, BC. Fortress Paper Ltd. has entered into a share purchase agreement to sell its wholly owned subsidiary Dresden Papier GmbH to Glatfelter Gernsbach GmbH & Co. KG for $213 million. The mill produces non-woven wallpaper base. Fortress is based in North Vancouver and has specialty paper and cellulose mills in Quebec. PetroBakken Energy Ltd. plans $675 million in capital spending this year, about 30% less than in 2012 or 2011. The Calgary-based oil and gas company plans to average between 46,000 and 48,000 barrels per day this year, up from 42,784 boepd last year and 40,998 boepd in 2011. General Motors is investing $250 million in its CAMI Assembly Plant in Ingersoll, Ont. The plant is to be converted into a flexible manufacturing facility, which means new body shop equipment and tooling. The plant makes the Chevrolet Equinox and GMC Terrain crossover vehicles. Aerospace manufacturer Sumitomo Precision Products Canada Aircraft Inc. is getting a $3.25 million loan from the Ontario government for its new Mississauga, Ont. landing gear plant. The Japanese company is investing $50 million in the facility, which will assemble aircraft landing gear and landing gear control systems. Sumitomo sources about a third of its landing gear components from Ontario suppliers. ProSep Inc. has sold its 51% investment in ProSep Kolon Co. Ltd., a South Korean joint venture with Kolon Group, for $5 million. ProSep is a Montreal manufacturer of technologies that separate oil, water and gas generated by oil and gas production. Lignol Energy Corp. has invested more than $2.6 million to acquire 356 million shares of Austalian Renewable Fuels Ltd., bringing Lignol’s ownership stake in the Australian alternative fuels developer to 21.4%. The Vancouver-based technology company in biofuels and renewable chemicals owns 100% of Lignol Innovations and has an ownership stake in Territory Biofuels Ltd.

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BMW to power new T-REX 16S

In-line six cylinder “most compact and efficient” BOUCHERVILLE, Que.: Campagna Motors has launched a new version of its T-REX three-wheel sports vehicle that will be powered by a BMW (Motorrad division) in-line, six-cylinder engine. The premium T-REX 16S, available from the Bourcherville, Que. manufacturer in June, will run with a BMW1600 cc engine, which the company describes as the most compact and efficient in-line, six cylinder on the market. “The collaboration with BMW’s engineers helped our engineering group with the integration of the new engine and transmission, new electronic systems and a multitude of other components and accessories,” said Michel Paquette, sales and marketing director at Campagna Motors. No word on how much this class of vehicle (described on the web site as street legal reverse trike, side by side) will cost, but others in the T-Rex line range from the low $50,000s to low $60,000 range. The new T-REX 16S will incorporate an electronic driving mode selection to offer better control and a safer drive under adverse weather conditions or on rough road surfaces; a complete Alpine audio system including Sirius Satellite radio; iPod/iPhone/USB connectivity; and Bluetooth connectivity. The T-Re 16S, ready to roll. PHOTO: CAMPAGNA

CSA supports new counterfeits legislation More power for border officers to conduct checks TORONTO: The CSA Group has added its support to the federal government’s Combating Counterfeit Products Act, announced on March 1. The Toronto-based testing standards certification organization says the act, which proposes changes to the Trade-marks Act and the Copyright Act to prohibit the import and export of counterfeit trademark goods, would give customs border officers (and RCMP officers) the authority and discretion to search for, examine, and temporarily detain commercial shipments of suspected counterfeit goods at the border. CSA is a founding member of the Canadian Anti-Counterfeiting Network (CACN). The act also has the support of Canadian Manufacturers & Exporters (CME). “This has been a longstanding priority issue for manufacturers,”

said Jayson Myers, CME’s president and CEO, in a statement. “Counterfeit goods entering Canada punish legitimate businesses. They are a drain on our economy and on jobs – and they put the health, safety and environment of every Canadian at risk.” The CME notes the bill, which covers only commercial shipments, will bring Canada into compliance with international obligations under the Anti-Counterfeit Trade Agreement (ACTA). Under the new rules, intellectual property (IP) rights holders will be able to contact border officials to request a search for suspect goods, border authorities will be allowed to contact IP holders when suspect goods are intercepted and trademark owners will be able to seek legal recourse for the manufacture, distribution and possession with intent to sell counterfeit goods.

Matamec gets $1M for rare earth project MONTREAL: Matamec Explorations Inc. has received another cheque from its Japanese partner Toyotsu Rare Earth Canada Inc. to develop a mine in Quebec that is expected to supply heavy rare earths for the production of hybrid and electric vehicles. The latest instalment of $1,041,000 is part of a $16 million payment for a definitive feasibility study of the Kipawa HREE deposit near Temiscaming, in southwest Quebec, which contains the rare elements dysprosium, terbium and yttrium. The study is to be completed by the second quarter. Matamac, a junior mining exploration company based in Montreal whose main focus is in developing the heavy rare earths, has been working on the project since March 2012. Working with its partners, the company said final purification, variability sample testing and optimisation of the carbonate development is on-going. Matamac’s project, if successful, will provide a source of rare earths outside China, which currently controls much of the world supply. Toyotsu Rare Earth Canada Inc. is a subsidiary of Toyota Tsusho Corp.

New criminal offences for possessing and exporting counterfeit goods will also be added to the Copyright Act. China remains the primary source country of all IP-infringing goods seized in Canada in 2011 where the origin was identified by the RCMP, accounting for 80% of these goods. The Economist also reports that US officials identify as much as 80% of the fake products seized originate from China. The RCMP estimates the total retail value of seized counterfeit and pirated goods in Canada has more than doubled since 2010, reaching totalling more than $67 million.

NBSK pulp mill going for $89M MONTREAL: Tembec Inc. has reached an agreement to sell its NBSK pulp mill and related assets and liabilities located in Skookumchuck, BC to Paper Excellence Canada Holdings Corp. for $89 million. The transaction is expected to close in the second quarter of 2013. Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill, which currently employs 290 people ships to North American and Asian customers primarily for tissue applications. Tembec is a Montreal-based manufacturer of forest products.

EmberClear seeks power plant financing CALGARY: EmberClear Corp.’s Future Power PA Inc. subsidiary is working to obtain equity financing for a 330-megawatt natural gas combined cycle electricity power plant in Good Spring, Pa. The global energy company said recently issued emission requirements have de-commissioned other coal-based power plants in the area. EmberClear plans to use the latest high efficiency turbines and abundant mine water to maximize operating output. With equity financing in place, the project would be up and running by 2016.

Williams to build $900M PDH plant in Alberta CALGARY: Energy infrastructure company Williams is building a propane dehydrogenation (PDH) facility in Alberta to increase its production of polymer-grade propylene, petrochemical feedstock used in plastics manufacturing. The new facility, the first and only one in Canada, will be located close to the Redwater fractionation plant and will initially produce up to 1.1 billion pounds of polymer-grade propylene annually. It could double capacity with future expansion. The company is hopeful the $900 million plant will be operational by 2016, pending approvals. Honeywell will provide the UOP Oleflex process technology for the dehydrogenation process. The technology’s platinum-based catalyst system uses less energy and water than other PDH technologies. Williams said it will use propane recovered from its expanding oil sands offgas processing operations and local propane purchases as feedstock for the new facility. The higher-value propylene will be transported to the US Gulf Coast and sold to petrochemical producers. Plans are to sell the associated hydrogen byproduct in Alberta. The Redwater complex includes fractionation, storage and distribution facilities and is currently being expanded to produce approximately 5 million barrels of propane and 280 million pounds of polymergrade propylene annually.

April 2013

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Industry View << Departments

Quadrogen pilot plant gets funding VANCOUVER: The BC Bioenergy Network has loaned Quadrogen Power Systems $1.5 million to demonstrate the company’s high performance biogas clean-up to ultra-clean levels at a greenhouse adjacent to the City of Vancouver landfill in Delta, BC. Quadrogen Power Systems is a developer of biogas clean-up solutions for purifying renewable fuels. The BC Bioenergy Network provides financial support for BCbased bioenergy projects. The funding supports two phases of the project. Phase one hopes to prove out Quadrogen’s ultra-clean gas clean-up technology, while phase two will expand the system to process higher quantities of biogas to demonstrate commercial

viability. Removal of fuel contaminants, such as siloxanes from landfill biogas, offer a variety of potential applications, including injection into natural gas pipelines, higher food grade utilization of carbon dioxide, or upgrading transportation fuel to replace diesel. This biogas clean-up project is part of a larger $7.5 million technology demonstration that will demonstrate the conversion of landfill gas to ultra-clean electricity, heat, renewable hydrogen, and carbon dioxide for use in greenhouses. Additional external funding includes a $2.6 million grant from the federal Sustainable Development Technology Canada (SDTC).

BENEV sells Quebec waste treatment plant OAKVILLE, Ont: BENEV Capital Inc. has sold its Saint Ambroise, Que. waste treatment plant with its related assets and liabilities to 8439117 Canada Inc., a company controlled by the plant’s current manager, JeanFrancois Landry, for $10 million. The sale is contingent on a specific new contract to be entered into within three years. The deal is expected to close in the second quarter of 2013. BENEV is a provider of high temperature treatment services for the remediation of contaminated soils and other PCB contaminated construction debris based in Oakville, Ont.

Alstom scores $548M deal for wind turbines CALGARY: Alstom will supply up to 414 megawatts of wind turbines for NaturEner Energy Canada’s Wild Rose Projects in Alberta. The $548 million deal includes 138 ECO 110 3.0 megawatt wind turbines and 10 years of maintenance services. Alstom, a manufacturer of power generation and transmission products, will assemble the turbine nacelles at its factories in Amarillo, Tex. and Buñuel, Spain, and will source other components globally. The Wild Rose 1 and Wild Rose 2 wind farms are located on private agricultural land in Cypress County, southeast of Medicine Hat, Alta. and will be operational by 2015. Up to 2,000 megawatts of additional wind power will be developed in southern Alberta over the next 10 years. NaturEner Energy Canada Inc. and its affiliate NaturEner USA, LLC are wholly owned subsidiaries of Spain-based Grupo NaturEner, S.A.

Bifuel Ford Super Duty coming to Canada

Westport to install WiNG power systems in the Ford trucks VANCOUVER: Ford F-Series Super Duty trucks with the Westport WiNG Power System will soon be available to Canadian customers. Westport Innovations Inc., a Vancouver-based developer and manufacturer of natural gas engine technology, is opening an integration centre in Windsor, Ont. and trucks should be ready for delivery to customers by late June. The Westport Windsor Integration Centre will be a dedicated Ford ship-through plant about 50 kilometres away from Westport’s automotive engineering hub in Plymouth, Mich. The heavy-duty pickup trucks, built at Ford’s Kentucky Truck Plant, will be shipped to the 20,000 squarefoot Westport plant for installation of the bi-fuel compressed natural gas and gasoline WiNG power system. Trucks will then be shipped to customers using Ford’s single-ship through transportation system.

Westport CEO David Demers being interviewed by Mad Money’s Jim Cramer in front of a WiNG-powered Ford truck. PHOTO: WESTPORT

Put your employees’ safety on the right track. With Tether Track® Rigid Rail Fall Arrest Systems.

>> Careers

DayStar, based in Kelowna, BC, is a manufacturer of CIGS thin film photovoltaic products. CFO Dale Hohm is retiring from MEG Energy Corp. after a nine-year run in the position. During his tenure the company grew from a start-up with substantial resource holdings to a $7 billion market capitalization enterprise.

Serkan Onat

Greig Harrison

CARLO GAVAZZI, a manufacturer of automation components with a facility in Mississauga, Ont., has appointed Serkan Onat its account manager for Eastern Ontario. Onat brings almost 12 years of sales experience with electrical and automation products/systems to the position. Greig Harrison has been appointed account manager for Southwestern Ontario. He brings more than 30 years of experience in the electrical/ automation industry. Innovative Composites International Inc., a producer of proprietary engineered composite products in Toronto, has added Mark Rivers to its board, replacing Andrew McConnell. Rivers is the founder of several businesses, including Presidents of Enterprising Organizations, one of the largest CEO executive development networks in Canada. DayStar Technologies has appointed Lorne Rosebourgh CEO and interim chairman of the board, replacing Peter Lacey.

McCoy Corp., an Edmonton-based supplier of products and services to the global energy industry, has appointed Jacob Coonan interim CFO. Coonan, a chartered accountant, has served as the company’s vice-president of finance since January 2012.

Protect your people, your productivity and your bottom line with a Tether Track® Fall Protection System from Gorbel. Featuring an enclosed track design, exclusively engineered for easy movement, Tether Track® Systems provide the highest degree of mobility and safety for single or multiple workers. Designed to meet OSHA regulations and ANSI standards, it’s the right choice for keeping your company’s safety record on the right track.

Environmental Waste International Inc., an Ajax, Ont.-based design and development company that specializes in ecofriendly systems for the breakdown of organic materials, has a new president and CEO. Daniel Kaute has extensive global experience developing clean tech businesses. Most recently, he was president and CEO of Renewable Energy Management, a waste to energy company. CCL Industries Inc., a Toronto-based supplier of specialty packaging systems for the consumer products and healthcare industries, has appointed Bruce Bacon head of human resources. He replaces Janis Wade who is retiring. He comes from HP Hood LLC, a dairy products company based in Boston, where he was vice-president of human resources.

For more information and a FREE downloadable FALL PROTECTION TOOLKIT, go to gorbel.com/rt

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Departments

>> Industry View Rexdale ORBIS facility plant of the year

TransAlta’s wind farm plugs into Quebec's power grid NEW RICHMOND, Que.: Homes will be tapping into wind-generated power supplied by Calgary-based TransAlta Corp. now that a turbine installation in the New Richmond, Que. area is operational. The wind turbine installation in the Gaspésie area of Québec is complete and plugged into the Hydro-Québec grid as part of a 20-year contract. The installation of 33 turbines adds 68 megawatts of renewable energy to the province’s supply; enough to power up to 11,000 Québec homes. The company said during development and construction the New Richmond project generated more than 250 jobs. The E82 turbines, by German manufacturer Enercon, were partially constructed in Germany and Québec. Each 98-metre tower is made of 18 concrete sections manufactured in Matane and two steel sections built in New Richmond. The covers housing the generating components and blades were shipped from Germany. Some of the electrical components were also made in the Matane area.

BIS’s Green Bin for organic REXDALE, Ont.: ORBIS waste collection and other Corp.’s Rexdale, Ont. facility reusable products, earned the has topped the company’s 10 award because of its signifiother North American operacant improvements in on-time tions as its plant of the year delivery, employee retention, thanks to increased shipments increased profitability, environand improved employee safety mental upgrades that reduce scores. water usage and strong safety “We are very pleased to score, while increasing shippresent this award to the Rexments by 20%. dale team,” said Pat Feeney, The Orbis top North American plant team. The company, a manufacturer vice-president of operations PHOTO: ORBIS of reusable plastic packaging for ORBIS Corp. “Over the past and systems management products, says it judges year, this plant has excelled in several key areas its plants on performance in the areas of customer and made significant process improvements to value, employee value, financial results, project dehelp meet our customers’ needs faster and more ployment, community involvement, teamwork, supefficiently.” port of company goals and employee engagement. The Rexdale plant, which manufactures OR-

>> Events Better Physical Asset Management Initiatives that Work C-MORE April 29-May 3, Toronto Presented by C-MORE (Centre for Maintenance Optimization & Reliability Engineering) at the University of Toronto. Three world-class instructors combine needto-know material with proven leadingedge approaches. Visit http://cmore.mie. utoronto.ca, search Educational Programs, Masterclasses. CIM Convention 2013 30th CIM Exhibition CIM May 5-8, Toronto Presented by the Canadian Institute of Mining, Metallurgy and Petroleum. Sessions will focus on challenges and best practices. Visit http://web.cim.org/ toronto2013.

Tight space is not a problem when you choose Gates MegaSys® products for your equipment.

PTDA Canadian Conference 2013 PTDA June 6-8, Toronto The Canadian Conference, hosted by the Power Transmission Distributors Association (PTDA), presents sessions on economic trends and markets. Visit https://www.ptda.org/canadianconference.

The MegaSys line meets the needs of today’s high-powered, high-pressure hydraulic equipment. As part of an integrated solution, the constant pressure spiral-wire and wire-braid hose and coupling products offer flexibility, durability and performance. And, you can find Gates MegaSys products at your local Motion Canada location. Our local sales and service specialists are experts in application and technical support, providing the parts and the know-how you need to stay up and running.

Gas & Oil Expo North America 2013 SPE Heavy Oil Conference-Canada DMG World Media June 11, Calgary The Society of Petroleum Engineers (SPE) conference will provide international perspectives on best practices and technological advances in the exploration and production of heavy oil. Badge gets you into the Gas & Oil Expo. Visit http://www. spe.org/events/hocc/2013.

Over 50 locations More than 4 million products Industrial maintenance training courses Call. Click. Visit.

AME Toronto 2013 AME Oct. 21-25, Toronto Association for Manufacturing Excellence (AME) presents the Breakthrough to Your Leading Edge lean conference. Visit http:// www.ameconference.org/2013-toronto.

The brands you count on from the people you trust…that’s Gates and Motion Canada.

For more events visit www.plant.ca, Events.

1-800-526-9328 for the location nearest you MotionIndustries.com

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April 2013

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Departments

>> Labour

We’re creating jobs but problems linger BY JOCK FINLAYSON

lthough Canada’s economy appears to be losing a step, the jobs machine is chugging along nicely. Statistics Canada reported 51,000 jobs were created in February, far more than economic forecasters were anticipating, and on a six-month moving average basis, employment gains have been averaging 30,000 per month. Since September, Canadian businesses have been expanding their payrolls by 20,000 a month. Although Canada’s labour market took

prior relevant work experience, young people are often “atLacking a disadvantage when competing for vacant positions… ”

a hit during the 2008-09 recession when more than 430,000 jobs were lost, it has put in a stellar showing since then. The number of lost jobs was recouped by 2010, with another 500,000 positions added since the recovery began in mid2009. This contrasts with the picture in the US and much of Europe, where absolute employment is still below the levels seen in 2008. Despite February’s impressive jobs

report, employment growth is likely to be sluggish this year. Taken together, a soft global economy, muted domestic spending by households burdened with record debts, and a decline in housing starts and real estate sales will hold the increase in real GDP to less than 2% this year. In such an environment, it’s hard to envisage robust employment growth. Still, Canadians can be grateful that a combination of highly accommodative

monetary policy, sensible fiscal policy and a resilient economy has given the country one of the best-performing labour markets in the developed world. But that doesn’t mean all is well on the jobs front. Canada has seen youth unemployment rise, albeit at a rate of 13.6%, which is much lower than in the distressed parts of Europe. Nonetheless, young job seekers commonly encounter barriers to accessing and advancing in the labour market. Lacking prior relevant work experience, they’re often at a disadvantage when competing for vacant positions. Plus, they have a greater chance of losing their jobs when the economy turns down. And if they do become unemployed early in their careers, young adults may be at increased risk of experiencing subsequent spells of unemployment becoming stuck in low wage jobs – a phenomenon known as “scarring.”

Skills mismatch

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In a soft economy, labour market challenges are magnified. Employers looking for new staff become choosier and may be even less inclined to hire candidates with little or no experience. Then too, in the aftermath of a recession some older workers will postpone retirement, thus reducing job openings and slowing labour force turnover. These problems are compounded by a skills/education mismatch that’s making it harder for some young adults to find suitable (or any) employment. A recent CIBC study notes 30% of Canadian businesses say they are facing labour shortfalls, despite large numbers of underemployed young people. These shortages are in many skilled trades and technical areas, some science and engineering, a host of occupations in the health care sector, accounting, auditing and mining. The evidence suggests too few people are being educated to work in occupations for which labour market demand is relatively strong. At the same time, record numbers of young adults are obtaining undergraduate college/university credentials that don’t necessarily provide welldefined pathways to rewarding careers. Economic research indicates that pro-growth macro-economic and framework policies and targeted government programs help to stimulate the hiring of young entry level workers. Educational upgrading with a focus on in-demand fields, market-driven training programs and enhanced labour mobility may lessen the “scarring” effects of joblessness – and should be part of the policy tool-kit used to address the risks posed by long-term unemployment among young adults. Jock Finlayson is executive vice-president of the Business Council of British Columbia. This column is distributed by Troy Media in Calgary. Visit www. troymedia.com. Comments? E-mail jterrett@plant.ca.

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8 PLANT

April 2013

13-04-04 7:26 AM

Economy << Departments

Canada earns a B, but…. Economic ranking more to do with other countries’ weaknesses

ECONOMIC DE VELOPMENTS AND TRENDS JOB VACANCIES Construction

Natural and applied sciences

Educational services

Unique to primary industry

Manufacturing Retail trade

Health

Accommodation and food services

Trade, transport and equipment operators Sales and services Social science, education, government service and religion Business. finance and administrative Processing, manufacturing and utilities

-16

-14

-12

-10 -8 -6 per cent change

-4

-2

Administration and food services Transportation and warehousing Professional, scientific and technical services Wholesale trade

Most major occupation groups posted declines in the number of people receiving regular benefits in January compared with the previous month. Processing, manufacturing and utilities posted the largest decrease (-3.1%) and the third consecutive monthly decline. INVENTORIES RISE

per cent 84

SOURCE: STATISTICS CANADA

62 60 58 56

J 2008

J 2009

J 2010

J 2011

J 2012 2013

Inventory levels were up 1.7% to $65.4 billion in January with gains led by aerospace products and parts, and primary metals. Aerospace and parts inventories were up 4.1% to $5 billion, stemming from higher goods-in-process and increased finished product inventories.

ratio

CAPACITY UTILIZATION TRENDING UP 80.7

Manufacturing had a ratio of 4.8 unemployed people for every vacant job in December, which represents a small change from 12 months earlier. But there were fewer unemployed people who had last worked in the sector over this period.

$ billions 70

December 2011 December 2012

Health care and social assistance

78.4 81.1

78 76 74 72 70.7

70 68

II III IV I 2008

II III IV I 2009

II II IV I 2010

II II IV I 2011

SOURCE: STATISTICS CANADA

Management

SOURCE: STATISTICS CANADA

EMPLOYMENT INSURANCE Art, culture, recreation and sports

II II IV 2012

Canadian industries operated at 80.7% of their production capacity in the fourth quarter, down slightly from the 81.1% in the third quarter. The decline was a result of a 2.1% drop in the manufacturing sector. The loss was partly offset by gains in the non-manufacturing sector.

THE

anada’s economy has improved its ranking among 16 developed countries, but it has more to do with the weakness of the others than a stellar performance, according to a Conference Board of Canada report. The Ottawa-based research group’s 2012 How Canada Performs: Economy report card gives Canada another B and with a sixth place ranking that’s certainly an improvement from 11th in the last pre-recession report card for 2008, but it’s all relative, says Glen Hodgson, senior vice-president and chief economist. “With the exception of inflation and employment growth, Canada ranks far below the best countries on all other economy indicators. Canada has been a chronic laggard on several important economic indicators – notably, labour productivity growth and competition for global investment. And even in areas where Canada has improved, other countries are still doing better.” Canada gets an A on inflation and B for gross domestic product (GDP) growth, labour productivity and employment growth, plus the unemployment rate. But the overall ranking is pulled down by a C for income per capita and outward foreign direct investment (FDI), and a D for inward FDI. Income per capita dropped from sixth position in 2000 to eighth in 2008, and remained there through 2012. Canada’s income per capita was US$36,138 in 2012, nearly $12,000 below Norway, the top performer. And it’s 84% of US income per capita. The income gap tripled between 1980 and 2012, with lower labour productivity accounting for the largest component. Canada attracted 2.7% of the world’s foreign direct investment in 2011 and accounted for 2.5% of world GDP. This earned sixth place on inward FDI in 2011. However, it’s one of 13 countries to earn a D for this measurement. Outward FDI gets a C for 2011 and ranks Canada 10th. Since the late 1990s, the stock of Canadian direct investment abroad has been greater than the stock of FDI. The Conference Board says this shift indicates firms are using foreign direct investment to build global value chains and serve customers in other countries. But Canada still ranks far behind the top performers, particularly the two countries that earned. As – Belgium and Switzerland.

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PLANT 9

13-04-03 2:48 PM

Trends

>> skills

Be proactive about activating training resources that will maximize the value in your plant’s workforce.

Through its Canadian Manufacturing Network initiative, EMC is working with sector council partners and members to aid in the development of a GMP (good manufacturing practices) Assessment Tool that will provide industry with a better way to identify new workers with the right skills, as well as current workers seeking to advance. The Society of Manufacturing Engineer’s Tooling U (www.toolingu.com) also works with manufacturers to build training programs and support workforce learning initiatives through a suite of training resources, including consultative services, online training content and instructor-led training.

By Matt Powell, assistant editor

e are all familiar with manufacturing’s skills conundrum. Prime Minister Stephen Harper describes looming shortages in the labour market as “the biggest challenge our country faces.” And the Canadian Chamber of Commerce identifies skills shortages as the top barrier for Canadian competitiveness in 2013. Its report, Top 10 Barriers to Competitiveness 2013, goes a step further. It notes that in more cases, the skills workers have don’t match what businesses require. By 2016, there will be an additional 550,000 people out of work who will not qualify for jobs that exist, the report says. That number would jump to more than a million by 2012. Engineers Canada and human resources firm Randstad Engineering came to a similar conclusion about engineers in their report, Engineering Labour Market in Canada: Projections to 2020. It reveals a shortage of engineers with more than 10 years of experience and warns of supply and demand imbalances becoming more serious, specifically in Ontario. The Chamber of Commerce report suggests there’s a lack of cooperation between business and government to upgrade the existing skills framework to make better use of under-used segments such as youth, older workers and immigrants. Boosting cooperation between industry and academia will be necessary to balance demand with available supply. CIBC Economist Benjamin Tal, who has also identified the mismatch of skills in a report, says a government plan to admit up to 55,000 new Canadians in 2013 through an overhauled federal skilled worker program is a welcome development, but it’s not going to turn things around. “Ditto for the increased focus on apprenticeship as a possible solution,” writes Tal.

Getting started “Time is not on our side,” says Ian Howcroft, vice-president of Canadian Manufacturer’s & Exporters (CME) Ontario. “We’re lacking the foundation for a strong labour market, all the way up. This challenge is a broad one.” Manufacturers can lessen the impact of a skills shortage by taking a deeper look inside their own operations. Howcroft suggests implementing internal training programs. “Some people just don’t know where to start. Companies need to ensure their workforces are as skilled as possible, those workers need to stay skilled, and the government needs to make sure those training programs are not only visible, but here to stay.” Here’s a few ways your company can alleviate the pressures of a skills shortage: • Be proactive. Start by assessing

10 PLANT

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College programs offered

As manufacturing becomes more advanced workers with the right skills are needed.

PHOTO: THINKSTOCK

Labour

mismatch

JoBs are availaBle, But aPPlicaBle skills are lacking your business and identify potential shortcomings in your operation. Identify strengths, such as employees that have skills that are not being used. • Be prepared to play. “Companies need to accept that there’s going to be significant upfront costs to hiring, and this will include training costs,” says Herb Emery, a professor of economics at the University of Calgary. He also authored a report analyzing skills shortages in Saskatchewan for the university’s School of Public Policy. Manufacturers need to be more efficient, but they must also have deeper pockets to tie people to their firm. “Change the way you contract with labour and make sure you’re keeping them around to recoup those training costs.” • Communication is critical. “Companies need to develop communication levels internally to not only identify what their challenges are, but also to understand them and figure out what the solutions are,” says Howcroft.

• Know what’s out there. “Build relationships within your community, be aware of what’s available,” says Howcroft. “Tap as many resources as you can. Talk to colleges, invite young people to your plant and get them excited about the opportunity to work for your company.” Canada has significant support from industry associations such as the Excellence in Manufacturing Consortium (EMC) that have introduced online training tools for manufacturers. “If companies knew what to do and where to go, they’d be much more active,” adds Howcroft. The EMC’s Canadian Manufacturing Network’s Online Skills and Learning Portal (www.emccanada.org/group_ spaces/canadian_manufacturing_network) offers manufacturer’s hundreds of industry-vetted online training programs for workers at all levels, including business and personal development skills programs from Harvard Business School for $0.99 per class.

A number of Canadian colleges offer programs in manufacturing leadership, such as Mohawk College in Hamilton and Sheridan College in Oakville, Ont. Mohawk’s one-year Manufacturing Leadership program (www.mohawkcollege.ca/distance-education/manufacturing-leadership) can be completed online through distance education and was developed through a partnership between Ontario community colleges and Canadian Manufacturers & Exporters (CME). Students learn supervisory skills, coaching, team building, people development training and continuous improvement processes through five 30-hour mandatory courses. Members of the CME that send employees to the program receive a 20% tuition discount. Sheridan’s one-year Manufacturing Management program (www.sheridancollege.ca) focuses on developing skills related to production and operations management, resource planning, processes and equipment, advanced controls, production planning and control, and environmental compliance. It also offers students that carry a 3.0 grade-point average an optional paid work placement in the program’s second semester. “Everyone’s whining about a lack of labour, but there’s a huge pool of young workers available. A lot of companies are crying foul without thinking about how to use the pool of labour that’s available,” says Emery. The reality, he adds, is that manufacturers need to figure out ways to keep younger workers around. “Groom those workers. Teach them to manage, let them grow instead of looking outward.” Emery understands training is costly, but manufacturers can weaken the blow by altering wage contracts over time so they’re overpaying someone when he or she starts working, yet keeping the wage consistent to recoup any training costs. Doing so pads the bottom line, but also protects it. Large firms, such as automotive manufacturers, have achieved this by offering labour contracts that include annual bonuses instead of wage increases. “We need to deal with these issues and deal with them now,” says Howcroft. “But there are no silver bullets.” Comments? E-mail mpowell@plant.ca.

April 2013

13-04-01 8:58 AM

regulations <<

Altering

machinery

you’ll need an engineer’s

ok after sePt. 1 the ontario government has approved the removal of an industrial exception dealing with the modification of production machinery and equipment. By Matt Powell, assistant editor

new regulation that will directly impact the way manufacturers are able to personalize and make modifications to existing equipment is ruffling feathers within Ontario’s industrial community. The provincial government has approved a change to the Professional Engineers Act that will remove an industrial exception as of Sept. 1, 2013. Any customization of design changes to production equipment or machinery will have to be licensed by Professional Engineers Ontario (PEO), and representatives from the province’s leading manufacturing association are none too happy about it. “The act of ‘stamping’ does not indicate that any real calculations or engineering was done, only that the company has an engineer on staff,” says Rob Hattin, CEO of ProVantage Automation, an automation integrator in Ancaster, Ont. and chairman of Canadian Manufacturers & Exporters (CME). “In any industrial design or manufacturing company, the most constrained resource is the engineering department (and the most expensive to operate). PEO just made Ontario manufacturers even less competitive.” The Ontario chapter of CME is also wondering where the legislation came from. “This came out of nowhere,” says Ian Howcroft, vice-president of CME Ontario. “And we haven’t got any clear answers as to why they’re doing this. Their reasoning and evidence has been completely anecdotal thus far.” Marisa Sterling, an engineer and enforcement officer at PEO who is leading the project, says the regulation is to put Ontario’s manufacturers on the same page as others across Canada, who are already required to have a licensed engineer approve custom machine designs and changes for specific production runs.

Costs to companies will depend on the choices they make to comply.

“This project is about workplace injury prevention, and as it stands the health and safety act and professional engineers act are not in in harmony. They’ve been like that since 1984,” she says. “Manufacturing’s got the highest on-the-job injury rate of any industry in Canada, and now the Ontario government is taking action to harmonize those two pieces of legislation to boost public safety in manufacturing.” However, the PEO says it has implemented provisions to ensure the transition is smooth. When the exception was enacted in 1984, requirements existed for Ontario’s Ministry of Labour engineers to approve predevelopment reviews of proposed industrial processes and associated equipment. This requirement was replaced by Regulation 851 under the Occupational Health and Safety Act, which introduced the current requirement for industry to have professional engineers approve Pre-Start Health and Safety Reviews (PSRs) prior to the start-up of newly installed or altered production equipment or machinery. If a PSR finds deficiencies, the equipment or machinery can’t be used until the necessary changes are made and are PSR approved.

Unique to Ontario Sterling says no other province is exempt from licensed engineering practices. “This is an Ontario-unique situation. The benefit is that Ontario repealing this section in the act now puts regulation on par with the rest of the country, which we hope will make it easier for manufacturers to move across the country,” she says. Howcroft disagrees, suggesting that the province’s manufacturing sector has much more in common with – and more competition from – industry in Michigan and Ohio, specifically in the automotive sector.

>> labour Market

Ontario youth, think engineering!

engineers canada/randstad report cites supply imbalances

report commissioned by engineers canada and sponsored by human resources firm randstad engineering, reveals canada is facing a shortage of engineers with more than 10 years of experience, plus supply and demand imbalances that are becoming more serious, specifically in ontario. findings from Engineering Labour Market in Canada: Projections to 2020 note that resource projects in the north and infrastructure upgrades in most regions drive job creation, and that steady improvements in manufacturing create supply pressures for industrial engineers. randstad canada’s projections see a growing demand for engineers in ontario’s aerospace sector. demand is also growing in construction as a result of new infrastructure projects. while labour market conditions vary from region to region, randstad says ontario in particular must find ways to strike a balance between retiring skilled engineers, and training incoming graduates and international candidates. “new projects mean great prospects for young engineers, but employers will need to start hiring based on potential instead of just experience, as a way to counterbalance labour shortages,” said randstad engineering’s keith wark, vice-president, central and eastern region.

PHOTO: THINKSTOCK

“These new regulations are going to seriously hamper our ability to compete with our major competition, which is not relative the rest of Canadian industry.” Sterling says the PEO has identified three ways to license modifications to existing equipment and machinery. “If a facility is buying equipment and installing as per instruction, then there’s no impact. If it’s replacing parts and maintenance that’s ‘same as,’ there’s no engineering involved, so there’s no impact. Its only those making custom designs or modifications to equipment.” The level of impact (and costs) will be determined by the path a company chooses to take. The company can have the person doing the work licensed. PEO has extended its financial credit program to waive 50% of the application fee for employees identified in a manufacturer’s compliance plan. Another choice is hiring professional engineers as full-time employees to oversee the work, so there’s no license required. Or hire licensed professional engineers on a contract basis to supervise or perform modifications. The PEO has also established Engineering Intern Program seminars, and will administer professional practice exams at job sites for groups of at least 20 people. Under the regulations that enables industry to transition to the new requirement, companies that file a compliance plan with PEO before Sept 1., 2013 will be provided with a one-year buffer to meet the new requirements. Hattin is not convinced a one-year phase-in is an all-in solution. “Having companies voluntarily sign up for the oneyear phase-in is like having innocent people register with the jailer for something they didn’t do,” he says. “Is the PEO really trying to kill what’s left of machinery manufacturing in Canada? Additional fees that manufacturers now incur when they install equipment are going to be significant. And we can forget about innovation.” Hattin is convinced the exemption from the Engineers Act is appropriate, as it was when it was enacted, even before the high level of design automation that’s now common in today’s manufacturing sector. “The term ‘industrial engineering’ is very vague…what does it apply to?” he says. “What’s changed, except design capability has gotten better. These new regulations are poorly crafted and it allows inexperienced PEng’s in one discipline to ‘stamp’ drawings in a discipline that the engineer has no competency in, or even any experience.” Howcroft says the CME has taken action against the repeal of the exemption and hopes to come to a resolution before the Sept. 1 deadline, but was unable to provide details on the direction the association is taking. In the meantime, PEO is encouraging manufacturers to become familiar with new regulations through a set of online audit tools available at www.peo.on.ca. Comments? E-mail mpowell@plant.ca.

www.plant.ca

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PLANT 11

13-04-01 8:58 AM

Trends

>> Economy

Budget

Skills, innovation and a tax break are good measures for manufacturers. BY MATT POWELL, ASSISTANT EDITOR

he Conservative government’s “Economic Action Plan 2013” has taken direct aim at manufacturing and gives the sector a boost. Finance minister Jim Flaherty has extended or created a number of key programs, which will be the most felt by companies based in southern Ontario. “It [the budget] positions manufacturing and exporting at the heart of Canada’s Economic Action Plan by focusing on practical steps that will enhance

2013 MANUFACTURING SEES SOME ACTION competitiveness, productivity, innovation and business growth,” says Jayson Myers, president and CEO of Canadian Manufacturer’s & Exporters. Highlights include: • $1.4 billion in tax relief for manufacturers that purchase new equipment for their plants through the Acceler-

ated Capital Cost Allowance (ACCA), extended to 2018. • $1.8 billion in direct funding for workforce training over the next six years. • $1 billion for the permanent Strategic Aerospace and Defence Initiative. • $920 million for the Federal Economic Development Agency for Southern

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Ontario (FedDev Ontario) to continue special support for economic growth, specifically manufacturers. The investment in Southern Ontario is consistent with the $250 million Automotive Innovation Fund, which was renewed in January. • $200 million for the Advanced Manufacturing Fund to support investments by manufacturing firms to create new and innovative products or production methods. Eligibility is tied to manufacturers in Southern Ontario. • Up to $15,000 per employee to train new or existing hires through the Canada Job Grant. Employers are required to match federal and provincial investments of $5,000 per employee to qualify for the grant. • $92-million over two years for forestry innovation. CME notes manufacturing employs more than 1.8 million Canadians that generate 14% of Canada’s GDP. Every dollar in manufacturing output drives $3.50 in overall economic activity. “The budget recognizes the importance of manufacturing and exporting for each and every Canadian, as an anchor of high-value, high-paying jobs in all parts of the country and across all sectors of the economy,” says Myers, who estimates the 2013 version will provide manufacturers and exporters more than $4.5 billion in benefits. While generally pleased with the direction of the budget, Scott McNeil-Smith, director of marketing and development at the Excellence in Manufacturing Consortium (EMC) based in Owen Sound, Ont., says the new and extended programs hinge on deployment. “It’s a good mix for manufacturers, but it will come down to how easily accessible these programs and funding is for Canadian firms,” he says. The funding for training and skills development is a good thing, he adds, but it seems the government is using money that was previously allocated to the provinces. “It’s very reasonable of them to take the direction, but the success of that initiative will be determined by the level of bureaucracy involved – these programs need to be as accessible as possible,” he says. Myers says the direction for skills and training makes sense. “It makes so much sense to allow employers to fund the training they require for their employers and connect that training with new job opportunities,” he says. “Getting the provinces on-board will be significant as well, a factor that would bring funding for skills training to top $600 million a year.” The federal government has also eliminated preferential tariffs on products imported from economies such as China, Brazil and South Korea, which have been treated as developing economies since 1974. Today, those countries are manufacturing powerhouses. “This should help to level the playing field and give Canadian trade a much needed boost,” says Myers.

3/27/13 4:09 PM

April 2013

13-04-04 7:26 AM

counterfeiting << Operations fake automotive and industrial parts such as bearings are a growing concern for manufacturers.

Counterfeit SKF and NGN packaging seized by the SKF Group. PHOTO: SKF

unearthed 750,000 fakes mimicking four different brands. Szoch says they also work with customs officials in each region to determine the flow of their bearings in and out of various countries to determine the potential number of counterfeits. Timken plans to improve detection rates by adding an extra layer of security to its packaging. The hologram will include a QR code for the customer to scan. Timken isn’t concerned they could be targets of packaging theft. Szoch says the company pays close attention to any scenario where it could happen but says it’s not likely. The company doesn’t reuse any of its packaging and those in the OEM supply chain purchase directly from the company. “This phenomenon has more of an impact on our aftermarket industrial distribution business.”

By ReBecca ReId

n Friday, July 13 The Timken Co. received an ominous phone call from Constable Grumel Gill at the Royal Canadian Mounted Police (RCMP) asking about counterfeit bearings. Canadian customs had intercepted a full pallet (about 500) of what were purported to be the company’s bearings at Toronto’s Pearson International Airport in a shipment from China. “They sent some photographs of the cartons and the external packaging, and asked if we could determine they were counterfeit. Unfortunately to the trained eye – or the reasonably trained eye – the differences can be hard to spot, but the actual cartons looked wrong enough to raise suspicion,” says Evan Boere, business development manager at Timken in Mississauga, Ont. All Timken products come in a black and orange packaging. In this shipment the hologram was missing and the barcoding was wrong. “Those were the first indications,” says Boere. The World Bearing Association has embarked on a mission to educate customs officials around the world about ways to spot counterfeit bearings. In fact, the organization was formed specifically to tackle the problem and has launched the Stop Fake Bearings campaign. These counterfeits don’t just impact the company’s bottom line, the shoddy performance of fakes can cost people their lives. After the shipment was flagged, the RCMP contacted Timken right away. “They [the RCMP] get a lot of requests to investigate counterfeit CDs or purses but since there is no human safety aspect, they go to the bottom of the pile,” Boere notes. But counterfeit bearings have found their way into automobiles and commercial airplanes. “Constable Gill asked if we could do some analysis – there were enough telltale signs – so we sent the bearings to our manufacturing plant in St. Thomas, Ont. [where there is] a lab.” The bearings conformed to Timken’s dimensions and standards for surface hardness and weight, but because of the scoring marks on the cone raceway, they were sent to Timken’s metallurgical lab

BoGUs bearings

BewaRe of haRd-To-deTecT KnocK-offs

at its Canton, Ohio headquarters. Once they cut one open, it was obvious they weren’t genuine. They bearings were through-hardened and the materials were wrong, Boere explains. Spotting the fakes is hard enough, but tracking down a perpetrator is also challenging. “We have to do it ourselves,” explains Daniel Szoch, program manager at Timken in Canton. Szoch, who heads up the company’s global anti-counterfeiting operations, says the authorities in China usually don’t take the lead in these investigations. The onus is on manufacturers to track down the guilty parties and point the authorities in the right direction, which can be costly and time consuming. This was the second time in the past year Timken has been notified of counterfeit bearings; both times they were Chinese-made. “We get a phone call from one of our distributors saying they had unknow-

SPOT THE FAKES people can be easily fooled by counterfeit bearings, even purchasers at aftermarket suppliers. The Rcmp recommends following the four “ps” when making purchases. • Packaging. examine the packaging for quality, spelling errors, incorrect fonts, lack of the supplier’s standard security measures, such as Timken’s holograms and incorrect barcodes. • Price. If the price is too good to be true, it probably is. however, some counterfeiters do have the audacity to sell their shoddy knock-offs at full-price • Product. examine the product to look for signs of shoddy manufacturing. • Place. Be wary when purchasing online; ensure the dealer is reputable. most counterfeit auto parts come from china (redistributed once they make it to dubai) but Taiwan, India, pakistan and malaysia are also known to ship fake auto parts, according to the motor & equipment manufacturers association.

www.plant.ca

13-15-PLNT.indd 13

Marks on the cone raceway demonstrate the shoddy manufacturing quality of this counterfeit bearing. Ultimately, this fake would have a shorter lifespan and exhibit poor performance compared to a genuine Timken product. PHOTO: TIMKEN

ingly purchased a bearing from a source they thought was trustworthy,” Boere says. The source was a surplus house. “We spoke to the principal at the surplus house and he was very good at telling us where he sourced them in China. We tried tracking them down but we weren’t successful.”

Made in China In the previous case, there were only six bearings and all were destroyed. “The products were marked as made in the USA but they came from China at a really fantastic lead price. Surplus houses deal with stuff that comes from all over the world, so I think they tend to turn a blind eye as to whether the product could be counterfeit if the packaging looks close,” Boere says. Border officials are the first line of defense against counterfeits and manufacturers continue to educate customs officials around the world on how to spot fakes. Boere says he has conducted education sessions for Canadian customs officers and it looks like the efforts have paid off. Scott Lynch, executive director of the American Bearing Manufacturers Association (ABMA) says raising awareness is the first step to keeping fake bearings off the market. Yet, officials don’t have time to thoroughly check every shipment and even then, fakes would still slip through the cracks. Lynch says Chinese officials have seized 2.2 million bearings, and a raid in Long Beach, Calif. in 2011

COUNTERFEITING REPORTS for canadian Intellectual property council, Counterfeiting in the Canadian Market: How do we stop it? and other reports visit www.chamber. ca and search counterfeiting. download the 2012 Special 301 Report from the Ofﬁce of the United States Trade Representative (USTR) at www.ustr.gov. Search 2012 Special 301.

All bearing manufacturers have been victimized. What buyers can do is purchase from authorized distributors and notify the manufacturer directly if they suspect a product is counterfeit. “Given the nature of these activities, it’s virtually impossible to quantify the magnitude of the problem, particularly vis-à-vis a particular manufacturer in a particular market,” says Ingalill Östman, senior vicepresident, group communications and government relations at the SKF Group. “Thankfully we have no reason to believe that this is a substantial or widespread issue in Canada. That being said, SKF Canada views even the rare instances of counterfeit products that have arisen in this country as serious.” Östman says SKF has worked with authorities in the limited number of circumstances when it has been necessary and would welcome further opportunities to work with border authorities. “We understand there are custom measures that exist in other countries that are reasonably effective in detecting counterfeit shipments,” she explains. “SKF believes that Canadian law could be strengthened to better protect the borders and market against counterfeit products.” A June 2012 report from the Canadian Intellectual Property Council, Counterfeiting in the Canadian Market: How do we stop it, calls for Canadian border Continued on page 14

PLANT 13

13-04-04 7:42 AM

Operations

>> Think Lean

Defending against counterfeiters

Theory of

Continued from page 13

enforcement to be strengthened and an intellectual property (IP) crime task force created, noting customs officials need to be granted ex-officio powers to intervene in the importation, exportation, shipment of counterfeit goods. As it stands now, customs officials can’t take action; that’s left up to the RCMP. The Office of the United States Trade Representative (USTR) in its 2012 Special 301 Report suggests Canada’s border officials need more powers for border officials and has placed the country on a priority watch list due to a poor track record of protecting intellectual property rights. As in the US case, Canadian auto parts imports from China are increasing. According to Statistics Canada, $662 million of Chinese motor vehicle parts and accessories were imported between January and August of 2012. Total imports for those categories reached $910 million in 2011, up from $806 million in 2010 and $632 million in 2009. In 2010, US imports were up to US$90.9 billion, an increase of 44.3% from 2009 according to the 2011 Industry Annual Assessment from the US Department of Commerce’s Office of Transportation and Machinery. The most counterfeited parts are those that most often need replacing. The impact these parts have on safety makes the expression “buyer beware” salient advice. Rebecca Reid is a writer and editor with the Business Information Group and a regular contributor to CanadianManufacturing.com. E-mail rreid@ canadianmanufacturing.com. Comments? E-mail jterrett@plant.ca.

>> Tech Tips

Pump unbalance avoid the common misdiagnosis

hen there’s vibration in a pump, it’s easy to misdiagnose the cause. unbalance, caused by casting inconsistencies of the impellers, is usually a problem in larger pumps but can also occur in smaller ones. detection is usually through visual inspection of the components, so when performing your diagnostic process, beware of a common mistake. a bad core shift creates a large hydraulic force that rotates with the impeller. It will appear as dynamic unbalance, but it’s actually hydraulic. a frequent, but not readily apparent error occurs when attempts are made to correct a hydraulically induced unbalance by dynamic balancing of the rotating assembly. doing so could result in a severely damaged the pump. Source: Motor Diagnostics and Motor Health News, H.W. Penrose, with permission.

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constraints how To manage The BoTTLenecK machInes

Set-up time for bottleneck machines should be reduced continually to create more production time.

The production rate of a plant will be based on the slowest machine in the slowest production line. It should be the highest priority for maintenance. By RIchaRd KunsT

he Theory of Constraints or TOC is a violent complement to any lean deployment, focusing on constraint management rather than setting the pace. In a simple process, one machine will normally produce fewer parts per time period than all the others. This machine is called the ‘bottleneck’. If there are several separate production lines in the same facility, all simultaneously making components for one major assembly, each of these lines will also have a bottleneck. The true production rate of the factory, therefore, will be based on the slowest machine in the slowest production line. The bottleneck of bottlenecks is the constraint machine, which limits the output of the entire plant. Bottleneck machines are the most important in the plant. They must have the highest priority for maintenance. If maintenance technicians are working on other machines and a bottleneck machine breaks down, they should move straight to it! Manufacturing engineers should develop new, more productive tooling and methods for these machines only. To increase the throughput of others is a fallacy! Their set up time should be reduced continually to create more manufacturing time and strategic buffers of material ensures that if any of the preceding operations break down, the bottleneck will continue to produce. And these machines should stand out – paint them a different colour or have lights shining on them, so everybody notices them and understands their importance.

PHOTO: THINKSTOCK

The aim of running any line, cell or plant must be to keep the constraint and bottleneck machines operating as effectively and as efficiently as possible. If, for example, the bottleneck machine produces 21 parts per hour, efforts to increase the productivity of the first machine from 26 to 28 parts per hour are wasted. Similarly, the bottleneck machine will only feed the last machine at the rate of 21 parts per hour, so its efficiency will never be better than 25%. There are four steps you can take to improve the productivity of a bottleneck: 1. Identify the constraint and exploit it. Off load any work that can be processed on another machine to create some additional capacity. Introduce TPM, set up reduction and other techniques to maximize the available capacity. 2. Subordinate to the system constraint. All machines within the plant in our example operate at the rate of 21 parts per hour. 3. Elevate the constraint to a new level of productivity. Concentrate all production, manufacturing and maintenance resources and effort on this machine to increase its throughput rate from 21 parts an hour. 4. Start again at step one! By elevating the constraint to a new level of productivity we may have created a different bottleneck – so we need to address it. Keep your eye on the bottleneck and constraint machines. Their efficiency are the most critical to a plant’s performance. Richard Kunst is president and CEO of Cambridge, Ont.based Kunst Solutions Corp., which publishes the “Lean Thoughts” e-newsletter and helps companies become more agile, develop evolutionary management and implement lean solutions. Visit www.kunstsolutions.com. E-mail rkunst@ kunstartofsolutions.com. Comments? E-mail jterrett@plant.ca.

April 2013

13-04-04 7:42 AM

materials handling <<

>> maintenance

slippery dock floors are responsible for about 25% of workplace accidents that involve injuries

Best in class? Not too fast... Be aware of the complications that arise from comparing performance against the world’s best

By sTeve KaLBfLeIsch

here are few places more dangerous to pedestrians than a loading dock. Forklifts race in and out of truck trailers, doors open over steep drops to the ground and stacked pallet loads present hazards to foot traffic. Indeed, an estimated 25% of accidents leading to injuries occur in dock areas. And the costs of these types of injuries add up. In 2007, the Liberty Mutual Safety Index revealed they cost the material handling industry $6.6 billion annually. Perhaps the worst among potential threats are slick dock floors. There can be many doorways along a typical loading dock, each a 8 x 10-foot hole in the wall that permits moisture to enter the area, mixing with dirt, debris and oil to create a dangerously slick surface. Here are some tips for ensuring dock areas are safe: • Dock doors – ensure a closed case. Forklift collisions damage doors outright, or at least compromise their ability to seal the doorway. Misalignment creates gaps that allow moisture into the facility. Replacing lower panels where most damage occurs with “flex panels” ensures the doorway is covered. If damage occurs at all points of the door, the answer is a fully impactable door. They’re built to stand up to both the occasional bump and the most severe impacts from forklifts, product loads and even trailers by releasing from their tracks, but are easily set back in place. Rolling, retractable plungers ride along V-groove tracks to ensure the door operates easily. Some door models include a track made of more durable, impact-resistant plastic that prevents heat from the outside meeting chilled interior air causing condensation that dripson the floor. • Closing the avenues for moisture. Standard pit-mounted dock levelers provide efficient trailer access for forklifts, but the pit cut into the concrete dock floor allows small gaps that act as a passageway

>> health & safety

Moisture, mixed with dirt, debris and grease create slippery surfaces.

PHOTO: DOCK PRODUCTS

Dock doors and slick floors how To Keep The moIsTuRe ouT for moisture. Even a tightly closed and sealed door can’t prevent moisture from infiltrating through these gaps. An advanced perimeter weatherseal system provides a combination of durable open-cell foam and heavy duty vinyl that fills the gaps around the sides and rear of the dock leveler. Vertical storing dock levelers and modular dock bridges are an alternative to pit-style dock levelers. Dock doors close tightly against the concrete floor, sealing in energy and locking out the elements. Fabric-covered foam pads that compress when the trailer backs into them provide a tight seal and close the gaps between the door hinges. Shelters create a canopy around the perimeter of the trailer, allowing full, unimpeded access to the interior. • Get a grip on the truck. Many docks use rubber wheel chocks in an attempt to hold trailers in place during loading and unloading, but they’re no match for the forces exerted by forklifts driving in and

out of trailers, especially in the snow and icy conditions of a typical Canadian winter. These forces cause a trailer to gradually creep away from the dock, forming a doorway gap. A powered vehicle restraint ensures the trailer is held snugly to the dock with the back end fully enveloped by the dock seal or shelter. • Move air/remove moisture. HVLS big fans regulate temperature while reducing energy costs and dissipate moisture as they move large volumes of air at low speeds over great areas. Applying these measures will help keep equipment on the loading dock drier, contributing yet another dimension to the well-being of the workforce. Steve Kalbfleisch is the director of sales for Dock Products Canada in Mississauga, Ont., a supplier of dock equipment. Visit www.dockproductscanada.com. Comments? E-mail jterrett@plant.ca.

6. Ensure that the person at the foot of the ladder faces it with a hand on each side rail and one foot resting on the bottom rung. 7. Attach hooks on top of the how to secure portable ladders rails where the ladder is to be used at a constant height. alls from portable ladders are a common cause of 8. Do not rest a ladder on any workplace injuries often because they’re not used rung. Only the side rails are deproperly. Follow these 10 tips to secure your ladder. signed for this purpose. 1. Rest the top of the ladder against a solid surface How not to stand on a portable ladder. 9. Secure the base of a ladder that can withstand the load. PHOTO: THINKSTOCK 2. Attach a stay across the back of a ladder where a to prevent accidental movement. surface can’t stand the load. Extend the stay across a window for Securing it at the foot does not prevent a sideslip at the top. firm support against the building walls or window frame. 10. Use ladders equipped with non-slip feet. Otherwise nail a 3. Guard or fence off the area around a ladder where other cleat to the floor or anchor the feet or bottom of the side rails. people have access. 4. Secure the ladder firmly at the top to prevent it from slipping This article was provided by the Canadian Centre for Occupasideways or the foot from slipping outwards. tional Health and Safety (CCOHS), a not-for-profit federal cor5. Station a person at the foot of a ladder when it’s not possible poration that promotes the physical, psychosocial and mental to tie at the top or secure it at the foot. This is effective only for health of Canadian workers by providing information, trainladders up to 5 metres (16 feet) long. ing, education and management systems. Visit www.ccohs.ca.

10 tips for avoiding falls

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hen benchmarking maintenance performance against the best in class, what do the results really mean? It’s certainly complicated. when seeking the “best” you have to look globally. This often means comparing apples and oranges, which creates a quandary about what to do with them. Ben stevens, president of dataTrak systems Inc., a worldwide maintenance consulting firm based in godfrey, ont., offers five key points to keep in mind when looking at industry benchmarks. • Cost structures vary in different parts of the world. This may mean different wage and organizational structures, health and safety standards and various costs such as energy or parts delivery. • Data definitions are frequently different within one company, and are even more variable when comparing companies in other countries. • What are the motivations of the people who submit the data? make the company look good compared to others? or demonstrate there is a need for change? The objective can skew the results. • A benchmarking study will present a complex mixture of positives and negatives that will not prompt clear action. It’s tempting to spend much time arguing about the validity of results and follow-up actions, but if an organization does not have the drive to change and improve, nothing will happen. • Which companies should you use for comparison? consider why a leading company would have to compare its data with yours. what would it learn? managing these issues will make the results of the benchmarking process more useful. stevens also suggests benchmarking actions and results of the current year against those of the previous year. use the current year’s results to set improvement targets for one or five years. This ensures continuous performance improvement as part of the plant’s daily work habits. and benchmark against organizations with operating and maintenance parameters that are similar to your own. Benefits include creation of a priority list for change and help to stimulate it; targets for improvement; a documented record of your plant’s maintenance status; and the laying of a solid foundation for the road map to continuous maintenance improvement. — Steve Gahbauer

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Sustainability

>> Solar

The

>> Green Manufacturing

PARALEX view

Making green matter How to get top-level buy in BY BRETT WILLS

he success of green and sustainable strategies depends on top-level buy in. How do you get it? Make green matter. Many companies have strategies that don’t include sustainability, perhaps because it’s viewed as another thing to do rather than a way to improve how things are done. Making it matter requires proper positioning of the initiatives, which can be a challenge. Here are a few tips to help get you there: • Connect the dots. Every business, department and position has objectives that drive the business. Align sustainability with these objectives by showing how the initiative helps achieve them or add value. • Measure what counts. Many senior leaders do not get excited about CO2e, kWh, gallons of water or tonnes of waste, but they do pay attention to revenue, profit and brand, so measure the things they care about. For example, instead of only measuring CO2e per unit of output, measure energy expenditure per unit of output and show how meeting a proposed carbon reduction goal will realize cost savings. • Communicate what matters. Few leaders pay much attention to results related to sustainability, such as environmental impact reductions or social improvements, so communicate how they save money. • Flip the pitch. It’s not always about beneﬁts. Talk about the risks of not having a sustainability plan, such as reduced ability to compete and legislative risks. People will focus on the things for which they are accountable. Proper positioning will get sustainability initiatives on the list of things that count. Brett Wills is the director of the Green Enterprise Movement and a senior consultant with High Performance Solutions in Cambridge, Ont. E-mail bwills@ hpsinc.ca. Comments? E-mail jterrett@plant.ca.

SUSTAINABLE ENERGY POWERS UP FOR THE GERMAN SOLAR MARKET

An installation of solar cells on the rooftop of a German home. PHOTO: THINKSTOCK

The Calgary company’s intelligent inverters deliver high efficiency, low voltage solar power during peak demand periods.

ustainable Energy Technologies Ltd. will speed up production of its solar energy inverters for the German market with a $500,000 investment from Doughty Hanson Technology Ventures (DHTV). The Calgary developer and manufacturer of intelligent solar power technology said the PARALEX inverters, which provide high efficiency conversion of low voltage direct current, will be delivered under a previously announced multi-year deal with an unidentified European developer of solar battery systems.

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“Sustainable Energy’s inverter is a natural fit for the energy storage market with distinct efficiency, cost and integration advantages that make it compelling. We believe this market presents a large opportunity for the company and we continue to work with management to help make it a reality,” said George Powlick, managing director of UKbased DHTV in a release. Solar batteries store solar power for use during peak demand periods, reducing demands on the power grid and helping to create “smart grids” that can react to sudden power swings and free up stored energy when needed. Sustainable Energy’s energy storage inverters manage the connection of the battery to the power grid and to the homeowner, transitioning from charging to discharging the batteries, to optimize use of the solar energy. PARALEX connects solar panels in parallel, eliminating losses from module mismatching. Each module in a photovoltaic array operates at its optimum power level, independent of the others. The result is a higher total system yield of between 5% and 15% per kilowatt installed, which reduces losses from shading, dust coverage and obstructed sunlight.

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There’s also a safety factor. The lower voltage reduces the risk of fire and arc faults. The company’s website says Sustainable Energy has the capacity to manufacture 900 units per month in Guelph, Ont. but it can “easily” double production. Germany and Italy are seen as “explosive markets” for residential storage and the company expects tens of thousands of systems to be installed in Germany alone this year. As many as 9,000 megawatts are to be installed in Europe over the next six years, according to Italian energy consultant BIP. Sustainable Energy is forecasting delivery of a minimum 10,000 inverters to Germany over the next 30 months with the potential for more than double that amount over the same period. — PLANT Staff Comments? E-mail jterrett@plant.ca.

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April 2013

13-04-01 9:04 AM

Costs << Management >> Moving On

Selling the biz?

How to survive the process in eight steps BY MARK BORKOWSKI

eter Churchill-Smith has worked with entrepreneurs for the better part of his 30-year career as a wealth management professional so he and his partners at Newport Private Wealth conducted a survey of those who had sold their businesses to get an inside view of their experiences. Most of the respondents found the process exhausting, leaving them with little time to think about their personal needs and new circumstances. From the results come eight practical suggestions for those who intend to sell. 1. Take a very long breath. The sale of the business often creates a void that will take time to replace. It will take a year or more before you’re ready for the next challenge. The management of your funds needs to reflect this new plan. 2. Recognize the new reality. You’re not any wealthier than you were prior to the sale, but your balance sheet has changed dramatically. If you’re working for the new owner, your wealth is no longer lodged at your place of work, it’s at the bank and it’s not getting the same 24/7 attention it received before the sale. 3. Professional cash management. Many sellers park their funds in cash for three months to a year. You should have access to wholesale rates for a large amount of money. Deal with someone with direct access to the money market who can ensure you are getting the best rate. 4. Draw up a new balance sheet. Understand which funds are best accessed from a tax perspective. For example, funds in the family trust belong to the beneficiaries. A detailed balance sheet will give you an accurate overview and help you identify issues that require immediate attention. 5. Get organized. Your money may be in several places such as a family trust, a holding company and several family accounts. The paperwork can be overwhelming. Consider hiring a part-time bookkeeper. 6. Communicate with key family members about the new reality. So much has changed and misunderstandings can easily arise. 7. Get an estimate of the taxes owing and when. Taxes may be due over several years and some may be deferred indefinitely. There are many strategies available including insurance and philanthropy. 8. Audit your current estate plan. Does your will include provisions dealing with shares of a private company now sold? Are your current executors capable of handling the complexity of your new affairs? Make the necessary changes so that your current plan works. More sophisticated changes can wait. Mark Borkowski is president of Toronto-based Mercantile Mergers & Acquisitions Corp., which specializes in the sale of privately held companies. Visit mercantilemergersacquisitions.com. To download the business seller survey visit www.newportprivatewealth.ca. Comments? E-mail jterrett@plant.ca.

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Sustainable

SAVINGS MANAGE ENERGY FOR ENTERPRISE-WIDE VALUE Manufacturers are finding immediate and longer-term cost reductions by applying a sustainable approach to managing energy and generating significant profits. BY JASON HAILS AND GLENN FRASER

he goal: reduce costs by 10% to 20% this year and sustain those savings for the foreseeable future. Given this challenge, where would you start looking to cut costs in your manufacturing operation – labour, materials, supplies or overhead? These may be the usual places to begin the search, but managing energy use is where manufacturers are finding both immediate and long-term cost reductions that have a major impact on profitability and business value. Management teams have typically reviewed utility bills or conducted one-off projects such as upgrading equipment, reducing carbon emissions or retrofitting lighting. Sometimes outcomes were disappointing, with mediocre savings and diminishing long-term returns. Today there is more information, new tools and proven methods that make sustainable energy management a significant profit generator. An Insight study conducted in 2009 by the Aberdeen Group in the US evaluated how energy reduction translates to the bottom line. Among those manufacturers surveyed, the top performing 20% achieved a 15% real reduction in energy use (versus a 6% increase for the bottom 30% performers), which corresponded to a 14% gain in operating margin (versus a 9% drop in operating margin) above the corporate plan.

A number of Aberdeen Group studies on energy management reveal that companies with the most successful programs apply a strategic approach and follow certain best practices. Here are common success factors: • Energy is viewed across the entire organization rather than being confined to certain divisions or projects. • The energy strategy supports business goals and priorities, including a focus on reducing operational costs. • A detailed understanding of where all energy (electricity, gas, water) is used throughout the enterprise. • Application of standards, best practice targets and metrics benchmark and monitor performance. • Automated energy data collection is integrated with the company strategy. Energy management software has exponentially greater capabilities than programs available just a few years ago. They incorporate sophisticated features that collect data, report, monitor and engage participants. • Energy data is available and visible across the organization through the use of analytics, dashboards, reports and alerts. These tools lead to knowledgeable choices, and also provide notification when action needs to be taken. • Teams collaborate across functions to facilitate energy management coordination and problem solving. • Practical techniques (such as incentives, reminders and rewards) are

Top performing manufacturers cut energy use by 15%, which corresponded to a 14% gain in operating margin. PHOTO: THINKSTOCK

used to engage people and to change attitudes and behaviours. • Equipment and staff behaviour is continually monitored to prevent deterioration of energy saving practices and ensure ongoing energy cost reductions. • Decision makers have access to historical and real-time energy data to support early detection of problems and to make informed decisions.

Reduce consumption Concerned about the costs of implementing these types of initiatives? Energy in high-use operations may represent as much as 25% of a plant’s overall operating costs. Reducing consumption by even a small amount produces significant savings. There are also a variety of government incentives that help to offset the investment. Moreover, manufacturers are often pleasantly surprised to discover suppliers are enthusiastic allies, making energy management a more agreeable pursuit than cost reductions in other areas. Invest in energy management today and you will build value for your company from top to bottom while strengthening its long-term competitiveness. Jason Hails is the national energy and utilities leader of MNP, an accounting and business advisory firm based in Calagary. Glenn Fraser leads the firm’s GTA region Food & Ag Manufacturing practice. E-mail jason. hails@mnp.ca and glenn.fraser@mnp. ca. Visit www.mnp.ca. Comments? E-mail jterrett@plant.ca.

PLANT 17

13-04-01 9:05 AM

Management

>> Trade A view of Cape Town and Table mourtain in South Africa. PHOTO: THINKSTOCK

Adding an s to

BRIC NATioNs

How SouTH AfRICA IS SHApInG up Great export opportunities await in South Africa but its government needs to get its act together to realize them and qualify for membership in BRICS. By MARk DRAke

emember Jim O’Neill? He was the Goldman Sachs analyst who in 2001 came up with the acronym BRIC for the emerging economies of Brazil, Russia, India and China. They all had strong growth, and higher potential than advanced economies in the “West.” Together, they accounted for 25% of the world’s land area and 40% of its population! At that time South Africa was considered too small and was excluded.

At first BRIC was little more than a name, but the countries quickly formed a political organization. In 2010 South Africa (SA) was invited to join, thus forming BRICS and bringing their combined GDP to about US$14 trillion. While SA has the smallest overall GDP at US$408 billion (China $7.3 trillion and Brazil $2.5 trillion), it ranks above India and China in terms of GDP per capita at US$8,000. SA is the largest economy in Africa and is the gateway to sub-Saharan Africa. According to Export Development Canada (www.edc.ca), it has “broad political stability, strong and independent institutions…. a well developed financial sector and modern infrastructure.” It’s rich in resources, and there are sales and investment opportunities in mining and related services, power generation, rail, agriculture and light manufacturing. All this sounds encouraging, but The Economist

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recently suggested that while SA does indeed have great resources and was the most “sophisticated economy” on the continent, it’s sliding economically and politically, with growth slowing to about 2% (2011). A major rating agency down-graded its sovereign debt, and the mining industry has been battered by strikes, violence and bloodshed. Desperately needed foreign investment is drying up, and protests are increasing in light of the government’s failure to provide adequate services. Unemployment is officially 25% (much nearer 40% in reality and even higher amongst the young). The Economist thinks this is due mainly to government incompetence and in particular to corruption. There is outright bribery of lower-ranking officials and jobs with the governing African National Congress (ANC) are seen as seats on an enticing gravy train. This is not to deny progress after 18 years of ANC (black majority) rule. More people have access to electricity and clean water, and the number living on less than $2 per day has fallen from 12% to 5%. Apartheid is long gone and the new constitution is “liberal and inspiring.” However, there is a huge gap between the rich and the poor. Twenty years ago the Gini co-efficient (0=most equal, 1= least) was 0.59, today it’s 0.63. The country is in fact one of the least equal in the world, primarily due to its failure to educate young (mainly black) South Africans. Despite of this challenging picture, there are opportunities. EDC expects growth to rise to 3.5% in 2013. There is a significant infrastructure deficit, and it is relatively easy to do business there. Canada has had diplomatic relations with SA since 1939, and friendly cooperation has continued since the ANC took power in 1994. Indeed Canada took a lead role in the 1970 international efforts to dismantle apartheid, and Mandela was made an honorary Canadian citizen in 2001. SA’s constitution and bill of rights are modelled in large part on the Canadian Charter of Rights and Freedoms.

Opportunity ahead Regular discussions on foreign policy, trade and development are held with SA, which is Canada’s third largest trading partner on the continent (after Nigeria and Angola). Two-way trade stood at $1.6 billion in 2011, of which $630 million were Canadian exports – mostly machinery, cereals, poultry and pork. Mining has the lion’s share of the $1.4 billion Canadian Direct Investment, although there is investment in food processing, hospitality and ICT (information and communications technologies). The Canadian High Commission in Pretoria (with a main trade office in Johannesburg) also highlights those as the main areas of opportunity, plus rail and urban transport, and electric power generation (check www.international.gc.ca, www.southafrica.gc.ca or www.tradecommissioner.gc.ca for more information). Interested companies should certainly consider contacting the Toronto based Canada/South Africa Chamber of Commerce (www.canadasachamber.com). It’s affiliated with the South Africa-Canada Chamber of Business in Johannesburg. The website is full of news and up-coming events, and includes the names of members and an excellent list of related links. Potential investors should check out the SA site (www.investmentincentives.co.za) for financial incentives available through the department of Trade and Industry for R&D, capital expenditures and competitive enhancement. South Africa has much going for it, and there are some excellent opportunities for Canadian companies, but O’Neill would probably agree that the country needs to get its political and economic act together to justify continued membership in the BRICS. Mark Drake is former president of Electrovert Ltd. and the Canadian Exporters’ Association. E-mail corsley@ videotron.ca. Comments? E-mail jterrett@plant.ca.

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13-04-01 9:05 AM

Risk << Management

Canada’s Largest

ERM

This holistic process helps identify, assess and communicate potential risks.

any companies are skeptical about the value of enterprise risk management (ERM), questioning whether the results will justify its cost, effort and the challenges involved. ERM encourages top management and boards to foster and embrace a risk-aware culture that supports communication across every level of the organization and allows employees to identify, assess and communicate risk exposure. A successful program has to capitalize on synergies between risk exposure and achieving strategic and operational objectives. This requires an effective level of communication across the enterprise and the identification of risk owners. Many companies have implemented reporting systems for allegations concerning harassment, discrimination and illegal activity. Similar reporting systems would identify potential operational or financial risks. There is no one right way to implement ERM, and a company needs to tailor programs to its industry, strategic plan and internal needs. Integration reduces the likelihood that risks become trapped in silos and are underappreciated. The Committee of Sponsoring Organizations of the Treadway Commission (COSO), established in the US to provide thought leadership to executive management on critical governance issues, set up an ERM framework focusing on these interrelated components: internal environment; objective setting; event identification; risk assessment; risk response; control activities; information and communication; and monitoring A company can’t accurately assess its risk profile without a comprehensive understanding of the regulatory environment in which it operates. ERM helps with regulatory compliance, reduces the impact of certain compliance failures, and produces other external benefits. Like most initiatives, ERM does have costs

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and implementation challenges. Its cost may be viewed as another layer of administrative expense that increases overhead and negatively impacts the bottom line. Companies may need additional personnel and resources. Some, however, retain outside consultants to design their ERM programs and address related needs. Be aware of the potential costs and factor them into the costbenefit analysis.

Challenges and benifits ERM may also be viewed as additional “busy work” that distracts managers from their primary responsibility – running the business. Actually, it’s a task that boards, managers and employees should already be undertaking. An ERM is simply a more disciplined and effective way to perform that work. Another issue is the effect it might have on innovation. A pure risk identification and mitigation approach to ERM might suggest that companies forgo valuable, yet risky, opportunities, becoming too risk averse. In fact, companies should use ERM to reduce barriers to innovation and foster projects within their appetite for risk. ERM has received mixed reviews regarding its impact on the bottom line. Some companies get lost in the process, almost paralyzed by the information output. The value comes from understanding objectives and designing a program that minimizes barriers to the company’s forward trajectory. Companies should not undertake an ERM program half-heartedly. Executed properly, it increases the flow of risk information and leads to better-informed decisions, greater consensus, and better communication for better management overall. This article is adapted from a report written by Michelle Harner titled, The Potential Cost and Value of ERM, on behalf the of Conference Board, a US-based global research association. Download the report at http://www.conferenceboard.ca/e-library/ abstract.aspx?did=5386.

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PLANT 19

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13-04-03 11:25 AM

Innovation

>> Automotive R&D

Driverless CARS TURNING THE MYTH INTO REALITY

topic far removed from the commercial concerns of OEMs, yet it’s an idea that’s gaining some traction within the industry and among consumers. Feasibility studies and demonstrations suggest it’s time to take mid-term deployment of autonomous driving seriously. Indeed, California and Nevada have already introduced legislation for driverless cars. Autonomous driving is based on the capacity of embedded intelligence to complete a variety of driving tasks while

Researchers are exploring the potential of safer road trips with vehicles that do the driving. BY DENIS GINGRAS

Denis Gingras with some driver support on display. PHOTO: AUTO21

ost automotive experts have considered autonomous driving or driverless cars a remote possibility, at best an academic research

maintaining a high level of safety in real driving conditions. The AUTO21 Network of Centres of Excellence is supporting several research projects in this area. These technologies will likely migrate to C class lower budget vehicles, similar to previous technologies such as airbags or ABS systems, now considered mainstream. Many of the technologies required for autonomous driving are already offered by the OEMs as advanced driver assistance systems and active safety systems. Radars, ultrasounds, lidar (laser radar), stereo and infrared vision used for collision avoidance, GPS, inertial navigation and odometers for positioning are relatively common in new and soon to be released luxury vehicles. As drivers learn to rely on them, these systems will potentially lead the way to complete automation of driving which opens the way to a range of new applications that will affect safety, energy efficiency, traffic optimization, passenger time occupancy and vehicle sharing.

Economic constraints

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Embedding artificial intelligence into a vehicle requires a high level of system complexity. The vehicle must be acutely aware of its internal states and the surrounding environment to detect potential failure threats and maintain a high level of reliability under all operating and climatic conditions. The economics of autonomous driving is affected by several constraints: safety, low-cost, durability, energy efficiency and comfort. Safety is directly linked to systems reliability, and achieving it at a high level is expensive. A massive deployment of driverless cars demands new, sophisticated manufacturing processes, which would change the automotive maintenance and after sale market. It’s also likely road infrastructures would have to be adapted and connected to the vehicles for information exchange. On the consumer side, passengers would have to be very confident about the safety and reliability of the vehicles. Legislation must clearly identify and manage the respective liabilities among the OEMs, owners, the passengers, telecom providers and the road infrastructure agencies, as well as the drivers of other cars who will also be on the road. Bearing these issues in mind, researchers continue to work towards making autonomous driving a reality that will enhance road safety for all of us.

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Denis Gingras is a professor at the Université de Sherbrooke in Quebec and the coordinator of the Intelligent Systems and Sensors theme for the AUTO21 Network of Centres of Excellence, a national automotive research initiative based in Windsor, Ont. Visit www.auto21.ca. Comments? E-mail jterrett@plant.ca.

Except as otherwise noted, all marks used are trademarks and/or registered trademarks of Henkel and/or its affiliates in the U.S. and elsewhere. ® = registered in the U.S. Patent and Trademark Office. © Henkel Corporation, 2013. All rights reserved. AD-151-13.

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April 2013

13-04-01 9:23 AM

Energy << Technology

PNU’s compressed air system. PHOTO: PNU POWER

a product manager at PNU Power based in Chester, England, who has been working on the AirDRUPS project for more than 15 years. Trane, a manufacturer of HVAC and data centre products, has Canadian operations in Markham Ont. and is a subsidiary of Ingersoll Rand. The company employs more than 29,000 people at 104 manufacturing facilities in 28 countries. It’s also involved in energy conservation and renewable energy projects. “This is a pneumatic and mechanical system that falls right into Trane’s realm, it’s a great fit for our systems,” says Ahmed El Nady, director of data infrastructure at Trane Canada. “We’re bringing it to North America because there’s a huge demand for it.”

AIR power A VERY DIFFERENT BACKUP ENERGY SUPPLY Air-DRUPS offers a lowmaintenance, cost-efficient alternative to lead acid backup batteries. BY MATT POWELL, ASSISTANT EDITOR

hen the power goes down and plant systems switch to the backups, Trane Inc. is suggesting an alternative to lead-acid batteries. The manufacturer of heating and air conditioning systems is set to bring a UK-developed backup power technology to North America that’s not only environmentally friendly, it also boosts the efficiency of uninterruptible power supply (UPS) systems using compressed air. PNU Power’s Air-DRUPS battery system, initially introduced in 2009, uses compressed air to turn a scroll expander to drive a conventional electricity

www.plant.ca

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generator that produces AC or DC current. Trane is now ready to introduce the technology into its line of HVAC and data centre products for the North American market as an alternative to traditional lead acid batteries or rotary flywheel systems. Customers, such as the UK’s national power grid and other major European utilities, have already adopted AirDRUPS. There are no moving parts in standby mode, which saves energy and increases reliability in backup power applications. The systems also reduce standby losses in higher efficiency systems, and cut carbon emissions, increasing overall service lifetime beyond 20 years. “Air is compressed into the cyclinders and injected into the scroll generators when a facility encounters a power outage, so it’s a single moving part that only moves when it needs to do. This reduces maintenance because there’s no wear on the components,” says Andrew Goodwin,

Introducing Air-DRUPS The company plans to introduce AirDRUPS technology into a variety of its commercial and industrial applications, such as: • Standby batteries for data centres ranging from 200 kilowatts to 5 megawatts.; • telecommunications applications to provide +/- 48 VDC to +/- 0.5% on telecommunications towers thanks to the system’s ability to handle extreme and remote locations in temperatures between -50 to 50 degrees C; • industrial applications where the air battery systems are used as a peak shaving application; • on remote sites in the mining industry, and oil and gas; • green energy projects and LEED buildings; and • in operations where weight is a concern. The air battery system is 300 lb. lighter than an installation of regular lead acid batteries. They’re also useful in manufacturing operations where pneumatic tooling is used. “Any manufacturer will have some sort of critical power system on site – centralized systems where there’s banks of batteries and in continuous production lines where power loss would majorly impact production,” says Goodwin. Maintenance is confined to an annual inspection, while standby losses are confined to the running of the control electronics. “Instead of drawing more electricity when the system is at peak levels, airDRUPs can run in place of that electricity, which saves money,” he says.

>> Supplylines

Gary Zeidler, KSB’s national sales manager (right) and James Jette, new sales expert. PHOTO: KSB

KSB ADDS SALES POWER Pump service – scheduled and unscheduled maintenance and major overhauls – is a growing business for KSB Pumps Inc., so it has added a second service sales expert to its staff. James Jette, who has more than 25 years of mechanical experience (18-plus in the pump industry), will be responsible for southwestern Ontario. The company is a subsidiary of global pump maker KSB Group. It’s Mississauga, Ont. facility handles any size pumps from any manufacturer.

SERVICE ALLIANCE FORMED Wajax Industrial Components (WIC), and Kaman Industrial Technologies Corp. have formed a strategic alliance called Sourcepoint Industrial to strengthen the services they offer to customers with assets in the US, Canada, Mexico and Puerto Rico. The industrial parts distributors, although independent, will provide an alternative to country-based supply agreements by jointly competing for business-to-business and supply agreements with customers in multiple jurisdictions. Wajax Industrial Components, based in Stoney Creek, Ont., is a wholly owned division of Wajax Corp. Kaman Industrial Technologies, based in Mississauga, Ont., distributes industrial parts and fabrication and assembly shops with five distribution centres across the US, Mexico and Puerto Rico.

GREEN LUBES GO GLOBAL Eco-Tek Group Inc. has set up new and renewed distribution agreements in several world markets for its green lubrication and filtration products. The Toronto-based company renewed an agreement with JI Interface-Canada Services Corp. for exclusive distribution rights in Bangladesh, India, Thailand, Indonesia, Vietnam, Laos, Singapore, and Malaysia. Sra. Melinda Manzano will have exclusive representation and distribution rights in Chile and Gamaclick CIA Lida will market the products in Ecquador.

Continued on page 22

PLANT 21

13-04-04 7:12 AM

CIEN

From air to DC power

Hydraulics & pneumatics

Continued from page 21

The heart of the compressed air UPS system is a scroll expander, a technology patented more than 100 years ago, according to Goodwin. PNU Power has designed its own version so that it rotates when compressed air is applied. This rotation is converted into DC power with the use of DC generator. Traditionally, lead acid batteries were the most common form of energy storage for backup power applications. Flooded cells are also used, and they offer a long life span, but they’re expensive and require extensive maintenance, which further inflates cost. VRLA (sealed) batteries are a cheaper alternative, but they last only five to seven years and require regular monitoring to ensure bad cells are exchanged. “With the lead acid batteries, there is always something happening that you need to maintain, whether it’s topping off the acid or monitoring hydrogen emissions,” says El Nady, who has led Trane’s involvement with PNU Power. “The battery is always working, which is not good for costs or energy efficiency.” These batteries must also be installed in climate controlled rooms to extend their life. Flywheel options and other rotary alternatives don’t contain lead or acid, but require a standby charge because they continuously rotate and are typically in the form of small, high-speed flywheels or large steel flywheels, which require significant maintenance to monitor the condition of the bearings. Backup time is typically less than 15 seconds and are used to ride-through to a generator. “Flywheel based UPS systems have bearings that are continuously rotating, which require consistent maintenance,” says Andrew Goodwin. “Air-DRUPS is virtually hands off.” Rotary systems (flywheels), when mechanically connected to backup power systems, are often referred to as DRUPS (Diesel, Rotary, UPS). They provide backup energy to support a load until the generator is restored.

Hands off A battery free solution reduces the number of checks by half and provides a solution that doesn’t need to be exchanged every five to seven years. In many older sites the operation may be relying on flooded (wet) cells that require a lot more maintenance and special installations in terms of hydrogen monitoring, bonded flooring and eyewash stations. Goodwin says the cost of the compressed air system depends on its size and customer requirements. “Initially, it costs more than a lead acid battery system, which will depend on space requirements, but it can sit outside so you don’t have to use up real estate inside your plant,” he says. “Hydrogen monitoring isn’t required and neither are eye wash stations or acid-bonded floors around the unit, so there’s cost savings in that regard as well.” The major difference, however, is that the AirDRUPS system is stationary in standby for lower losses than equivalent DRUPS, and sealed-for-life bearings eliminate costly maintenance. “Anytime you can eliminate lead or acid, or a potential hydrogen explosion and eye-wash stations to cut costs and minimize maintenance, that’s a good thing,” says Goodwin. And to think all of those benefits have been pulled out of the air.

CHUCK EXERTS HIGHER GRIP FORCE

The non-rotating air manifold uses Teflon seals that are virtually maintenance free The Systec front-actuated pneuand help increase the grip force. The matically powered jaw chuck from chuck operates at just 90 psi. Internal Lexair is an automation upgrade safety valves prevent loss of air for manual lathes, as well as pressure and gripping force. rotary tables and indexers that The precision-ground body require higher grip force for difis extremely rigid and durable, ficult applications. fully hardened to 62HRc. It comes The self-contained air-open/ standard with a pair of hoses, air-close chucks are available in mounting bolts and T-nuts. five sizes from approximately 5 to Accessories include spindle adapt12 in. The drawtube-free design ofers, soft and hardtop jaws, grease gun, a fers through-hole capacity up to 4.52 manual directional-control valve and a dual in., with more than 18,000 lbf grip force foot-operated valve. at 1,000 rpm for the largest size. Lexair Inc. is a Lexington, Ky. manufacturer The chucks are available with inch or Grip force of 18,000 lbf. of high-pressure compressors and stainless metric serrations in all sizes. Most sizes steel valves. are available in two, three or four-jaw (which can be www.lexairinc.com used as a two-jaw) configurations. Using an adapter plate, the chuck will fit A5 to A11 spindle faces. www.plantmagazine.ca/rsc/ 1

VALVE DELIVERS “GREAT” FLOW The Humphrey 153 balanced 3-port solenoid valve from Humphrey Automation is made for maximum utility with what the company describes as “great flow capacity.” The compact 15-mm valve has a balanced-poppet design and offers stable performance regardless of media fluctuations, mild contamination or porting choices while maintaining an extremely low leak rate. The Koganei F Series directional control solenoid valve shortens the length of manifold by using tandem three-ways. The F10, F15 and F18 come in three sizes (widths), 10 mm (Cv 0.27), 15 mm (0.57) and 18 mm (1.00), with several manifold configurations, including serial transmission. Humphrey Automation, based in Markham, Ont., is the exclusive distributor of Humphrey & Koganei pneumatic products in Canada. www.pneumation.ca Directional control.

www.plantmagazine.ca/rsc/ 2

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22 PLANT

21-23-PLNT.indd 22

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April 2013

13-04-04 9:53 AM

Product Focus << Technology HOSE FOR HIGH PRESSURE

designation and meets or exceeds SAE DIN 20023 requirements. The hose comes inside diameters of ¾-, 1- and 1-¼ in. and combines with many Kurt coupling styles that are specifically designed for heavy duty applications where shock Up to 6,235 psi. and vibration are present. Kurt, a manufacturer of hydraulic products, is based in Lyman, Neb. www.kurthydraulics.com

Kurt Tuff Spiral Flex hydraulic hose from Kurt Hydraulics’ is engineered for rugged, high-pressure (up to 6,235 psi) applications with minimal space. The hose has a durable oil, ozone and abrasion resistant synthetic outer cover, and a bend capacity of 8.25 to 9.5 in. It has been impulse tested for up to 1 million cycles, withstands temperatures from -40 degrees C up to 121 degrees C, meets the flame resistant MSHA

www.plantmagazine.ca/rsc/ 3

PLUGS PROVIDE TIGHT SEAL

More precise resolution.

AIR CYLINDER FOR EVEN LOWER FRICTION Airpot Corp.’s Airpel Plus expands the line’s accurate force, ultra low friction air cylinders. By combining features and components from the standard Anti-Stiction Airpel and the Force Without Friction Airpel-AB, this high performance air cylinder covers applications requiring even lower friction. The Airpel Plus uses the same graphite piston/borosilicate glass cylinder combination as the standard Airpel but the piston construction takes advantage of Airpel-AB technology. The result is an air cylinder with friction levels only 25% of the already low friction standard Airpel model, allowing for greater force accuracy and more precise resolution. In addition, the Airpel Plus offers a wide operating temperature range (-20 to 85 degrees C) and longer life. They’re available in standard configurations as single acting extension models with identical metric sizes, threads, mounts, and strokes as the Airpel-AB so they can be easily interchanged. Airpot is a Norwalk, Conn. manufacturer of ultra low friction, super-responsive pneumatic piston and cylinder motion dampers and actuators. www.airpot.com www.plantmagazine.ca/rsc/ 4

Heyco Products Inc.’s liquid tight threaded hole plugs with NPT, PG, and metric hubs are designed for hydraulic and pneumatic applications. The plugs provide a liquid-tight seal up to 70 psi, are IP 68 rated, and feature an integral sealing ring that provides a tight seal at the mounting hole location to protect against contamination and moisture. They’re constructed from electrically non-conductive Nylon 6/6 to fit multiple hole sizes, and have a hex-shaped head with a slot for wrench or screwdriver installation. The plugs are also non-corrosive (resist salt water, weak acids, gasoline, alcohol, oil, grease, and common solvents), resist oil and heat up to 105 degrees C (221 degrees F) and are a lower cost option over brass or steel plugs. Heyco is a Toms River, NJ manufacturer of wire protection products and power components. Seals up www.heyco.com to 70 psi. www.plantmagazine.ca/rsc/ 5

Alternative to multiple actuators.

POWER-OPEN MANUAL VALVES The Netherlocks pneumatically powered (4 to 7 bar) Power Wrench portable valve actuator opens and closes any size, type or number of manually operated valves, making it an alternative to multiple actuators. A bolt-on universal drive plate connects and operates multiple valves, and it’s safe for use in applications where explosive and/or flammable liquids or gasses are present. An integrated safety lever and throttle valve enforce two-handed operation, eliminating the possibility of injury during use even at maximum power. Variable speed control allows operation at the user’s comfort level. At 22 lb., it’s lightweight and easily operated from a comfortable standing position. Netherlocks is a Houston-based manufacturer of premium supplier of valve safety and control products. www.netherlocks.com www.plantmagazine.ca/rsc/ 7

VALVE USES LESS POWER Bimba|Mead has added a low power Isonic V2 valve to its product line. It’s lightweight with a high-strength polymer construction and offers expanded voltage options. Key features include a power saver, which reduces consumption by up to 60%; voltage choices of 3 or 5 VDC; a universal fit; and a reduced risk of electrical arcing, even in volatile environments. Bimba Manufacturing Co. based in University Park, Ill., is a supplier of actuation technology. http://bimba.com www.plantmagazine.ca/rsc/ 6

Universal fit.

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PLANT 23

13-04-04 7:12 AM

cieN Hydraulics and pneumatics

dovetail accessories are available to accommodate larger dovetail slots. The solid-state electronic switches are available in normally open 3-wire DC PNP and NPN configurations. M8 wiring connector or 3-m integral cable with wire leads are options. Mounting bands with adapters for round body cylinders range from 1/8 to 4 in. sizes. www.automationdirect.com www.plantmagazine.ca/rsc/ 8

Expanded line.

couNTerbALANce vALves uPdATed

PosiTioN swiTches come iN NiNe sTyLes AutomationDirect has expanded its NITRA line of products to include nine styles of position switches for pneumatic cylinders, including round, dovetail, t-slot, square and D-shaped. Additional

Comatrol has expanded its portfolio of counterbalance valves. The Easley, SC manufacturer of engineered hydraulic cartridge valves and integrated circuits has updated the VCB product line, which pilots on port 1

Slimmer design.

(nose of the valve), allowing for a slimmer dual counterbalance design. The 20 size CB20-HV counterbalance valve is also updated, capable of 266 lpm (70 US gal./min.). Pre-engineered dualcounterbalance HICs of each valve are also being introduced. The VCB line includes four valves: VCB06-EN (hydraulic vent, 06 size metric, 60 lpm [16 US gpm]); VCB06-CN (atmospheric vent, 06 size metric, 60 lpm [16 US gpm]); VCB12-EN (hydraulic vent,

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12 size metric, 140 LPM [37 US gpm]); and VCB12-CN (atmospheric vent, 12 size metric, 140 lpm [37 US gpm]). Each of these VCB products has the distinct function of piloting on port 1. This is in contrast to most counterbalance valves in the market that pilot on port 3, which is located closer to the thread. Piloting at port 1 eliminates the need for cross- drilling when creating a dual counterbalance system in an HIC. Each of the VCBs is rated at 350 bar (5,075 psi). www.comatrol.com www.plantmagazine.ca/rsc/ 9

power transmission shAfT coLLArs rePLAce hANd TooLs Ruland Manufacturing Co.’s quick clamping shaft collars now accommodate sizes up to 3 in. and 75 mm for light-duty stationary or low-RPM applications that require Collars handle quick positioning adjust- varied tolerances. ments or frequent set up changes where tools aren’t practical. Quick clamping shaft collars slide on the shaft smoothly and provide easy access to the handle for easy removal or repositioning. The handle sits flush with the outside diameter, making them suitable for rotating applications. Ruland is a manufacturer of precision components and couplings based in Marlborough, Mass. www.ruland.com www.plantmagazine.ca/rsc/ 10

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Brennan industries inc., a manufacturer of hydraulic fittings and adapters based in cleveland, has a new line of compression-end instrumentation valves that are available with single or double ferrule style tube fittings. nVB ball valves are available in sizes up to 3/4 in. and are made from either 316 stainless steel or brass. they have two- or three-way configurations and are rated to 3,000 psi. nVn-2200 and nVn-2300 screwed bonnet needle valves range in sizes from 1/8 in. to 1 in. and are available with either metal-tometal or soft-seat stem types. the 316 stainless steel valves are rated to 6,000 psi, while the brass version is rated to 3,000 psi. nVn-2000 and nVn-2100 integral bonnet needle valves are available in sizes up to 1 in. with metal-to-metal stem types with “V” stem tip form. the check valves are made with o-ring seat seals and are rated to 6,000 psi in the 316 stainless steel version. Brass valves are rated to 3,000 psi. www.brennaninc.com www.plantmagazine.ca/rsc/ 11

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24 PLANT

April 2013

13-04-04 7:30 AM

ces.

products and equipment << Technology pumps

>> donation

material HandlinG

Platform lowers to ﬂoor level.

LifTs hANdLe big LoAds Improved drive train.

PumPs hANdLe big messes Moyno’s 2000 WA and 2000 WB pumps have been improved to decrease wear, reduce friction and increase loading capabilities. A crowned gear universal joint drivetrain configuration boosts torque and thrust control, while patented joint seals protect gear joints against contamination. Improved gear joints reduce wear characteristics and boost performance. Moyno, a progressive cavity pump manufacturer based in Springfield, Ohio, says the pumps are ideal for applications such as sludge and mineral slurry transfer, feeding dewatering equipment, paper coating colour and clay slurry, and gypsum, plaster and resins. www.moyno.com www.plantmagazine.ca/rsc/ 12

TrANsPorT PumPs screAm versATiLiTy Water transport is about getting water to where it’s needed, whether this means across a city, throughout an industrial complex or high up in a tall building. KSB’s water transport pumps, ranging from the MOVITEC family to the highcapacity RDLO line (up to 10,000 cubic metres per hour) come in a range of sizes and ratings, so it’s always possible to get a good match between the flow and head requirements of the application. The pumps are configurable to handle demanding water conditions. Optional features such as highly corrosion-resistant alloys and special seals are available. KSB also provides support for selecting equipment for a particular application. The company’s EasySelect online software tool is available to help highlight pumps that meet particular requirements.

(L-R) Dana Sheahan, principal of West Credit Secondary School; Moesha Green, Grade 10 manufacturing student; Brandon Burton, Grade 12 construction student; Gary Nuttall, president and owner of Gray Tools Canada; Scott Moreash, associate director of instructional support services, Peel District School Board; and Frank Dominguez, vice-president of marketing and owner of Gray Tools. PHOTO: STEPHEN UHRANEY

Tools for schools

$20,000 worth for vocational students

ray tools canada inc. is doing its bit to ensure skilled tradespeople of tomorrow use the right tools as they learn their crafts in school. the Brampton, ont. manufacturer of industrial hand tools donated a range of its products worth $20,000 to five vocational schools in the peel district school Board. “there seems to be a shortage of tradespeople at the moment and this is one small way that we can give back to the community and contribute to build the next generation of skilled workers,” said Gary nuttall, president and owner of Gray tools during a presentation at west credit secondary school in mississauga, ont. the tools include u-Joint socket sets, rapid wrench sets and ratcheting tube wrenches, locking pliers and clamps, chisels, screwdriver and hex key sets. the company also donated a ninedrawer pro series roller cabinet to each of the schools to hold the new tools, plus a guidebook.

couplinGs & connectors

Rated to IP67.

mAKe A beTTer Power coNNecTioN

KSP Pumps Inc. is part of the KSP Group, a manufacturer of pumps, valves and systems. KSB Canada is based in Mississauga, Ont. www.ksb.ca

Binder-USA’s M12 connector with Scoding better transmits power in place of data. The field-attachable connectors accept wires up to 15 AWG, allowing the connectors to transfer up to 12 A and 630 VAC. Both male and female connectors have four gold-plated contacts with screw termination to ease in-field wire attachment. When mated and locked, the connectors are rated to IP67 for protection against liquids and debris. Binder-USA, a subsidiary of Franz Binder GmbH & Co., is a manufacturer of industrial connectors and cordsets based in Camarillo, Calif. www.binder-usa.com

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Corrosion-resistant.

www.plant.ca

24-25.1.indd 25

Acccess iNTerfAces from The ouTside Harting has expanded its har-port service interfaces with RJ45 couplers that have patch cables already fitted. Users no longer need to separate socket or patch cables from the coupler. The compact, fully shielded interfaces are available in cable lengths ranging from 0.2 to 5 m, and are suited for 1/10 GB ethernet and match transmission category Cat. 6/Class EA. Har-ports provide access to control units and industrial computer interfaces from the outside. They’re useful in high-grade workstations and assembly requires a single central fastening nut in a standardized circular 22 mm panel cutout.

Ergonomic XZ Series hydraulic floor-level lifts from Presto Lifts Inc. handle loads of up to 6,000 lb., are useful in usual lift-table applications (assembly, maintenance, palletizing), and are easily loaded/unloaded with an ordinary hand pallet truck. The XZ platform lowers no more than half an inch above the floor for easy rollon/roll-off. Accessible from all four sides, the lifts rise to a height of just over 35 in. to minimize bending and lifting, reducing employee fatigue, risk of injury and production times. The lift motor is controlled by a foot switch or pushbuttons, and is also available with a 10-ft. lead. Six models offer two standard platform sizes (44 x 48 and 50 x 48 in.) and lift capacities of 2,000, 4,000, and 6,000 lb., but custom designs are available. Bellows skirting is also available. Presto Lifts is a manufacturer of hydraulic lift equipment based in Norton, Ma. www.prestolifts.com www.plantmagazine.ca/rsc/ 16

Great in close quarters.

sTAcKer hANdLes suPer TALL LoAds

The Harting Technology Group is manufacturer of switches and connectors based in Germany. It has Canadian sales operations in Montreal. www.harting.ca

Stack-n-Go fully powered compact stackers from Southworth Products Corp. maximize maneuverability thanks to a short, stable wheelbase. Use them for light manufacturing, warehousing, assembly and retail operations. The machines handle transporting loads on pallets and stacking loads up to 7 ½ ft. high. They also serve as adjustable workstations for loading and unloading. A 62-in. mast and offset control handles give operators a clear view of what’s up ahead and virtually no blind spots. An ergonomic handle puts all controls within easy reach to maximize comfort and convenience. Forward- and reversedrive “thumb” switches are located on both sides of the handle to accommodate left- or right-hand operation. An autoreversing “belly switch” protects the user from potential injury when walking the unit backwards. The stackers are powered by two 12 V batteries, and a 110 V build-in charger is included. Southworth Products is a manufacturer of material handling equipment based in Portland, Me. www.SouthworthProducts.com

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www.plantmagazine.ca/rsc/ 17

Useful in high-grade workstations.

PLANT 25

13-04-04 7:30 AM

CIEN

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cklands Grainger has just released the 2013 edition of its massive 3,100-page catalogue featuring 12 categories covering 116,000 or so industrial, safety and fastener products that come from six distribution centres and 175 branches across the country. It’s certainly a book that resides in many manufacturing facilities, at resource-based industrial sites, and anywhere else in Canada that uses safety and MRO products. Yet despite their affinity for the big book, buyers are being gently nudged towards the industrial distributor’s online entity as a way to help people who buy for plants streamline their purchasing processes, whatever their level of online sophistication. PLANT publisher Mike King sat down with a couple of Acklands Grainger executives during the distributor’s January MRO and safety trade show (held in Calgary for the first time) to talk about the industrial marketplace. The event featured 250 suppliers who were on hand to discuss their products and services with 2,500 invited guests. There were safety seminars and product demonstrations, plus sessions on topics such as electronic commerce, which brings us to Mike Duggan, director of e-business. He’s running a team of five on the web development side who are making it easier for manufacturers to step away from some of the manual purchasing processes that take up time and generate extra handling and paperwork. “Today we get about 10% of the business through the web site, but we expect to grow that significantly. E-commerce is the fastest growing channel by far,” says Duggan. “The largest percent of that acceleration is coming from customers who are looking at more efficient processes.” There are three ways to engage the web side. There’s the basic site for searching and simple buying; an enhanced order management system that gets into workflow and approval thresholds; and the e-commerce channel, via EDI or by integrating with the customer’s internal purchasing system (Ariba, SAP, Oracle, etc.). Orders can also be placed using a tool called Punch-Out, which allows the buyer to shop the Acklands Grainger site and pull the information into the company system where a purchase order is assigned and sent electronically. “My philosophy on electronic commerce is when you’re choosing an electronic relationship with us, you should be able to do everything electronically,” says Duggan.

With that in mind, Acklands Grainger, its headquarters based in Richmond Hill, Ont., is integrating a web chat feature for users with specific issues to discuss, which should be ready to go in the second quarter. A redesign of the web site made it tablet compatible. Next up are smart phones. Today purchasers can’t process a return order online, so that’s on the agenda, too. George McClure finds business in Eastern Canada (west of Manitoba) are feeling positive about business. “There have been efficiencies gained over the last few years (since the economic downturn); they feel stable and ready to grow.” But what the vice-president and general manager for Eastern Canada is hearing from purchasers is that they feel their procurement processes need to be improved. “Those who are handling POs manually realize there’s a huge opportunity to consolidate. Instead of eight different kinds of safety glasses, they can standardize and better anticipate demand.”

Conserving energy Sustainability is another concern. Anything that conserves energy is of interest. “We do energy audits and what the savings would be if the all lighting was swapped out. Energy efficient lighting is as good as regular lighting. If it costs 10 units of electricity versus 20, it’s a gain for them. They can reinvest that.” In the end it’s about multi-channels, says McClure. “If a customer wants to fax today, phone tomorrow or enter an electronic commerce order next week, we are more than happy to cover them all.” Meanwhile the company is anticipating the opening of its new 500,000 square-foot distribution centre in Caledon, Ont. sometime in 2014. It will serve companies in Ontario and Quebec, supplying 150,000 industrial items and employ 150 to 200 warehouse and logistics personnel, including those currently in the company’s Richmond Hill centre. While the digital channel may be on the rise, the company’s gigantic catalogue will carry on. “It serves a branding purpose and some people just like something they can touch,” says Duggan. “I see a gradual decrease, but as we extend the product mix, I don’t see it going anywhere.” — PLANT Staff

Find your local dealer: hannay.com or 877-467-3357 (L-R clockwise): Thinking big at the Can-Ross Environmental Services display; tool technologies at Metabo; grinding discs at the Walter display; and the Milliamp Clamp Meter at Milwaukee’s booth. (Thanks to fellow BIG publication MRO Magazine for the photos). PHOTOS: MRO MAGAZINE

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Products and Equipment << Technology AutomAtion

facturers, while direct support of web technologies simplifies the development of visualization, process monitoring and remote diagnostic applications. B&R, based in Atlanta, is a developer of automation equipment for manufacturing. Its Canadian headquarters is in Concord, Ont. www.br-automation.com

Easy laboratory automation.

AuTomATes wiThouT sAcrifice Aerotech’s Ensemble LAB control platform makes it easier to automate laboratory and light industrial manufacturing operations where ease of operation is required without sacrificing overall system capability. A full-colour touch-screen display provides quick access to core functionalities and a tabbed interface provides single press access to setup and operation screens. A rubberized front-panel interface offers immediate tactile feedback for simple operations such as jogging, homing and moving to fixed positions. Onboard memory stores programs that are accessed from the front panel or through remote control. The system includes full compatibility with both EPICS and TANGO distributed control protocols. Aerotech, a developer of motion and control and positioning systems based in Pittsburgh, Pa., says the system is programmed in an easily readable BASIClike syntax. MPS series stages support the systems FlashConfig feature that stores all of the parametric information required for operation on the stage itself. It’s automatically identified and all operational parameters including axis calibration data are uploaded into the Ensemble LAB ensuring safe, accurate and true “plugand-play” operation. www.aerotech.com

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AccurATe Pick ANd PLAce The IRB 360 FlexPicker from ABB is a second-generation delta robot for precision pick and place applications. The global manufacturer of power and automation technologies notes the robot’s motion performance has short cycle times while being highly accurate with a payload of 3 kg.

validated so it can be washed The compact IRB 360-1/800 down with industrial deterversion has an 800-mm gents and high-pressure diameter work area. Its hot water. Corrosion small footprint makes protection is combined it easy to fit into compact with smooth, rinse-off packaging machines. surfaces and lubricant free The standard IRB 360-1/1130 joints. has a working range optimized PickMaster software simplifies for the fastest picking applications. the vision configuration and offers A high payload IRB 360-3/1130 the application tools needed for an speeds up the throughput by taking efficient high speed picking applicamore products at a time or for simply handling heavier products. 3 kg payload. tion. An IRC5 controller with TrueThe longer-armed standard verMove and QuickMove ensures the sion targets the solar, food and beverage highest speed and accurate tracking of industries with a working range of moving conveyor belts. 1,600 mm, which reaches over large ABB has facilities across Canada. conveyors and machines. www.abb.com/robotics The IRB 360 works in meat and dairy applications. A stainless option is IP69K www.plantmagazine.ca/rsc/ 20

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Integrated controls boost consistency.

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PLANT 27

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cieN A smArT ALTerNATiVe To driVes

pressors and short conveyors, as well as in heavy duty applications, such as rock Rockwell Automation describes its crushers, wood chippers, centrifugal Allen-Bradley SMC-50 smart motor fans and long conveyors. controller as a more economical alternaVoltage output has been improved to tive to drives and more advanced control maximize efficiency of motor starts and than across-the-line starters. stops. For application scalability, With its three-phase, it has nine standard starting fully solid-state, siliconmodes, six stopping modes controlled rectifier (SCR) and several slow-speed funcpower structure, it combines tions. In traditional starting advanced monitoring and mode, for example, if the protection features, multiple SMC-50 controller senses that start and stop options, and the motor has reached full expandable control inputs speed before completing the and outputs. selected ramp time, it will auRated at 200V-690 VAC and tomatically switch to providing with software from 90 to 520 full voltage to the motor. A, it controls motor speed and Patented linear-acceleration torque in a range of normal-duty Smart motor delivers a low current profile per applications, including pumps, com- control.

start, consistent acceleration time, and enhanced control over both torque and speed. Regardless of the starting mode chosen, the SMC-50 controller stores the actual start time and peak current value to assist in setup and process optimization. Advanced power monitoring and diagnostics decreases downtime. This results in highly scalable user-configurable faults and alarms, including motor overload protection, over/under voltage, stall protection, over/under power, jam detection, over/under current, excessive starts, current and voltage imbalance, power frequency protection, power factor protection, and preventative maintenance faults and alarms. Other features include an energy saver, motor winding heater, plus a snapshot

and event log, which capture fault, alarm and operational history. Rockwell Automation is a manufacturer of industrial automation based in Milwaukee, Wis. http://ab.rockwellautomation.com www.plantmagazine.ca/rsc/ 21

Position feedback.

VALVe coNTroL is wireLess Emerson Process Management has expanded its Smart Wireless solutions with the Fisher 4320 wireless position monitor. Emerson, a manufacturer of industrial technology based in St. Louis, says it’s WirelessHART valve includes linkageless position feedback and discrete valve control. The Fisher 4320 is an alternative to solenoids and limit switches. By eliminating the wires, the project cost and project time are reduced by less engineering time, materials, control system I/O and installation labour. For simplicity, traditional quarter turn valves and pneumatic actuators are used. Only air is needed to automate the valve. Wireless valves install and commission quickly. Smart Power battery life is five to 10 years and the unit is fully compatible with existing Smart Wireless self-organizing mesh networks. www.emersonprocess.com www.plantmagazine.ca/rsc/ 22

high-sPeed ‘Precise’ couNTiNg The H0-CTRIO2 module from AutomationDirect offers ﬂexibility for applications requiring precise counting or timing based on an input event or highspeed control output. Designed for all DirectLOGIC DL05 or DL06 PLCs, it features four 9-30 VDC sinking/sourcing inputs and two isolated sinking/sourcing DC outputs.

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Supported inputs include one quadrature encoder counter up to 250 KHz or two single-channel counters up to 250 KHz. Outputs include two independently configurable high-speed discrete outputs or one channel pulse output control. AutomationDirect is a Cumming, Ga.based supplier of industrial automation products. www.automationdirect.com www.plantmagazine.ca/rsc/ 23

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Features a quadrature encoder counter.

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Industrial Literature Reviews CIEN

>> Plantware

TAbLET PC hANdLEs hArsh CoNdITIoNs DAP Technologies brings tablet functionality to rugged environments with the M7000. The 7-in. Windows-compatible device weighs about a pound and handles challenging environments. Its multi-touch screen rotates automatically to the proper position whether (landscape or portrait) and a 2 MP camera with a rear flash makes data capture easy. It’s sealed to IP65 and meets MIL-STD810F standards for shock, vibration and 4-ft. drops to concrete. The M7000 also connects and communiSealed to IP65. cates with WLAN with an 802.11 b/g/n radio, Bluetooth, WWAN with optional 3G module, and GPS. It ships with Windows Embedded Standard 7 and a 32 GB drive, with an optional 128 GB. DAP Technologies, based in Tempe, Ariz., manufactures computers for rugged environments. www.daptech.com www.plantmagazine.ca/rsc/ 24

MorE drIvE wITh ToPsErvEr 5.11 Software Toolbox has expanded the connectivity of TOP Server with Version 5.11 and its new IEC 61850 protocol driver for power distribution applications. The unit includes an OPC XML-DA client driver for connectivity to OPC XML-DA servers, electronic flow measurement enhancements for the oil and gas industry, ControlLogix firmware Version 21 support updates as well as enhancements and fixes for many other existing communications drivers. Enhancements for the electronic flow measurement suite include a new EFM simulator driver, which provides an easy method for EFM users to test configurations without accessing the device. Other updates include expanded client control options via a range of new system tags as well as several performance improvements. The GE ethernet driver has been updated to support the reading of multiple blocks in a single read request, dramatically increasing potential performance capabilities. Software Toolbox is a provider of industrial automation software based in Charolette, NC. www.softwaretoolbox.com www.plantmagazine.ca/rsc/ 25

LAsEr sCANNEr PLAys IT sAfE The STI OS32C-DM safety laser scanner from OMRON Automation and Safety reports status and measurement data via EtherNet/IP to help operators check the state and analyze the cause of an emergency stop via LAN, then make a quick correction. The scanner also connects with devices such as PLCs and HMIs. Easy to use function blocks in the code automatically configure the PLC to process and display the Safety status information. Software examples are reports. available for large process PC-controlled applications where large amounts of data are logged to determine product quality, consistency or process variations. An updated configuration tool provides a “maintenance access level” to make only non-safety related programming changes and employs a “non-safety checksum” for easier re-commissioning when non-safety changes are made. The “zone coordinate import/export” function allows users to modify the shape and size of a monitoring zone by importing coordinates from a text file. Configurable object resolutions of 30, 40, 50 and 70 mm accommodate hand and arm detection applications. The compact units have a 104.5 mm profile, weigh 1.3 kg and consume 5 W of power (3.75 W in standby mode). OMRON Automation and Safety, based in Schaumburg, Ill., is a provider of machine safety and automation solutions. www.sti.com www.plantmagazine.ca/rsc/ 26

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The FLIR i-Series Pointand-Shoot Thermal Imaging Cameras brochure introduces the newly redesigned i3, i5, and i7. The brochure covers affordable entry-level infrared cameras ideal for equipping front-line plant technicians. www.flir.ca Flir www.plantmagazine.ca/rsc/ 126

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N.R. Murphy carries a large inventory of industrial Exhaust Fans in a vast range of sizes. The most popular versions are fully built and ready to ship. When an unusual requirement turns up, they have the experience and manufacturing capacity to quickly modify or build a new fan. Free catalogue, includes N.R. Murphy's line of fans, specifications and guidelines. www.nrmurphy.com N.R. Murphy www.plantmagazine.ca/rsc/ 127

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