S T R AT E G I E S F O R F U T U R E S U C C E S S
2020 Issue 2
Responding to a Pandemic CARES Act Tax Implications The Ultimate Business Stress Test What’s Next for the Economy?
The Official Publication of the Association of Rubber Products Manufacturers
ADVANCED
MAP.cooldriveÂŽ
Maximize operator efficiency with MAP.commander Minimize operator labor through automation with MAP.autocell Miminize power and water consumption with MAP.cooldrive Evaluate power, water, and air consuNption with MAP.energywatcher Evaluate OEE through OPC-UA MES integration with MAP.mes Maximize the life of your MAPLAN machinery with MAP.refit
MAP.autocell
Your expert team for evaluating and maximizing Overall Equipment Effectiveness
MAP.commander
FOR TOMORROW.
CONTENTS 2020 ISSUE 2
FEATURES 6
Solutions
CARES Act Provides Relief to Rubber Processors
14
Strategies
16
Economy
20
View From 30
24
Safety
30
Markets
32
Management
COVID-19: The Stress Test We Never Expected
6
What Will the Economic Aftermath Look Like? Blair Rubber Embraces a Philosophy of Learning Surviving an OSHA Inspection Growing Population and Disease Trends Lead to Medical Elastomer Growth
20
How to Manage Employees You Can’t See 3 4 2 Ø4 % ' ) % 3
&/2 &5452
24
Departments
% 35##%33
2020 Issue 2
Pandemic Responding to a Implications f CARES Act Tax Test Business Stress f The Ultimate ? for the Economy f What’s Next
4 10 23 28 34 34
From the President Member News Technical Standards Update Industry Calendar Ad Index
www.InsideRubber.com TS -ANUFACTURERS ON OF 2UBBER 0RODUC ION OF THE ØSSOCIATI 4HE /FÞCIAL 0UBLICAT
Cover photo courtesy of Blair Rubber Company www.arpminc.com 3
FROM THE PRESIDENT
2 Dave Jentzsch Blair Rubber
020 has come in as a lion. The COVID-19 virus is changing our world. Our lives and businesses have been disrupted, with the stock market crashing, tradeshow cancellations and social distancing keeping us from all sorts of gatherings. Now we are working from home, dealing with order cancellations and perhaps working through supply chain shortages, to name a few of the challenges. We can choose to lead by looking ahead to a brighter future.
Looking out for the safety of our customers and employees while also maintaining the highest levels of customer service is of utmost importance. The virus has brought new insight and meanings to social distancing, hand washing and working from home. (How many of you washed your hands before it became popular?) Watching my grandbabies, I realized they didn’t know failure – they keep trying to walk. That’s what we will need to do, too. I am not writing with my rose-colored glasses here – because I know it is tough and will be tough in the foreseeable future – but this will end. Even in these challenging times, there is and will be plenty of things to be thankful for, and you should not lose sight of that. For example, each of us has fantastic people in our lives – family, friends and colleagues who we can be thankful to have around us during times like these. It is wonderful when going through difficult circumstances to know these people will be here for us when this is over.
7321 Shadeland Station Way, Suite 285 Indianapolis, IN 46256
As we face the rest of 2020, let’s be realistic, practical, adaptable and flexible – both physically and mentally. We are not incapable of facing this challenge. After all, we are Americans. We can begin by looking at the risks to our businesses. What is critical, possible and remote – whether it is people, systems, products, processes or equipment. Keep the solutions simple, and use your team. How we come out of this when the COVID-19 isolation business is over will determine our future success. It will require our resourcefulness in executing the best decisions possible to make our families, communities and companies stronger. My hope is that we will remember 2020 – not only as a tough challenge, but by how we turned it around. The best is yet to come.
“
AS WE FACE THE REST OF 2020, LET’S BE REALISTIC, PRACTICAL, ADAPTABLE AND FLEXIBLE – BOTH PHYSICALLY AND MENTALLY.
”
Managing Editor: Dianna Brodine Art Director: Becky Arensdorf Published by:
Phone: 317.863.4072 | Fax: 317.913.2445 info@arpminc.org | www.arpminc.com © Copyright 2020 ARPM Officers and Board of Directors President Dave Jentzsch, Blair Rubber Vice President Steve Nieto, Tahoma Rubber and Plastics Treasurer Marel Riley-Ryman, Southern Michigan Rubber Secretary Joe Keglewitsch, Ice Miller LLP
4 Inside Rubber // 2020 Issue 2
ARPM Board of Directors
Kirk Bowman, The Timken Group Charlie Braun, Custom Rubber Corporation Chris Buhlmann, Gates Corporation Russ Burgert, MAPLAN USA Joe Colletti, MarshBellofram Randy Dobbs, Sperry & Rice LLC Doug Gilg, Continental ContiTech Lisa Huntsman, Lauren Manufacturing Matt Lockard, HBD Industries Donovan Lonsway, BRP Mike Recchio, Zeon Chemicals L.P. Mike Smith, Basic Rubber and Plastics John Stourac, Zochem Travis Turek, Bruckman Rubber Corporation Joe Walker, Freudenberg-NOK Sealing Technologies James Wideman, MBL (USA) Corporation
2150 SW Westport Dr., Suite 101 Topeka, KS 66614 Phone: 785.271.5801 ARPM Team Executive Director Troy Nix – tnix@arpminc.org Managing Director Letha Keslar – lkeslar@arpminc.org Marketing Director Marcella Kates – mkates@arpminc.org
Fluoroelastomer Specialists...
... Proudly Compounding and Processing Fluoroelastomers Since 1983 Products and Services • Specialists in Fluoroelastomer (FKM, FEPM) DQG 3HUÀXRURHODVWRPHU )).0 SURGXFWV • Custom Mixed Compounds – Extruded & Calendered Preforms – Stocked Compounds – Color Compounds • Fully Cured Extruded Products ¹ 2 5LQJ &RUG 3UR¿OHV 7XELQJ • Fully Cured Sheet Products – Molded Sheet 36� X 36� – Continuous Sheet Roll • Technical Support • ISO 9001 and AS9100 Quality Management System
P.O. Box 939 • Cuyahoga Falls, OH 44223 Telephone 330-923-7070 • Fax 330-923-4005 www.eagleelastomer.com • eagle1@eagleelastomer.com
Made in the USA...Sold Globally
SOLUTIONS The credit is equal to 50% of the qualified wages paid to employees from March 13, 2020, through December 31, 2020. The definition of qualified wages depends upon the number of average full-time employees in 2019. For processors who had more than 100 average number of full-time employees in 2019, only the wages of employees who are paid during a shutdown or face reduced hours as a result of the plant’s closure or reduced gross receipts are qualified wages. However, for employers with 100 or fewer full-time employees in 2019, qualified wages also include amounts paid to all employees due to the reduced gross receipts.
CARES Act Provides Relief to Rubber Processors By Michael J. Devereux II, CPA, CMP, Mueller Prost
O
n March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act – the largest relief package ever passed by Congress almost three times over – into law, thereby ushering a host of new lending and tax provisions available to rubber processors. The CARES Act made several taxpayer-favorable changes to the tax code that impact rubber processors, some of which should provide much needed cash during the COVID-19 pandemic. The following provides a brief overview of the business tax provisions of the CARES Act.
Employee retention credit The CARES Act provides for a refundable payroll tax credit for 50% of the wages paid by eligible processors to certain employees during the COVID-19 pandemic. The credit is available to processors whose operations have been fully or partially suspended as a result of a government order or processors who experienced a greater than 50% reduction of quarterly receipts, measured on a year-over-year basis.
6 Inside Rubber // 2020 Issue 2
Qualified wages include amounts paid or incurred to provide and maintain a group health plan (on a pro-rata basis) and are capped at $10,000, making the maximum amount of FICA payroll tax credit $5,000 per employee. Processors receiving Small Business Interruption loans are not eligible for the Employee Retention Credit.
Employer FICA deferral This provision of the CARES Act allows rubber processors to defer payment of their employer share of the Social Security tax (FICA at 6.2%) for payroll tax deposits required to be made between March 27, 2020, and December 31, 2020. The amounts otherwise due during this period will be due in two installments – the first on December 31, 2021, with the remainder due on December 31, 2022. Processors receiving loan forgiveness through the Paycheck Protection Program, however, are not eligible for the deferral for amounts due after they receive notification of forgiveness.
Net operating and excess business losses The CARES Act made two significant changes in the Net Operating Loss (NOL) rules and temporarily removed a limitation on business losses enacted
by the Tax Cuts and Jobs Act of 2017 (TCJA). First, the CARES Act removes the 80% of taxable income limitation that was enacted as part of the TCJA. Losses generated in any tax year beginning after December 31, 2017, and before January 1, 2021, (tax years 2018, 2019 and 2020 for calendar-year taxpayers) may offset 100% of the taxable income to which the loss is carried. The 80% of taxable income limitation is reinstated for tax year beginning after December 31, 2020. Second, the CARES Act allows rubber processors to carry their NOLs back to each of the five taxable years preceding any losses generated in tax years beginning after December 31, 2017, and before January 1, 2021, (2018, 2019 and 2020 calendar-year taxpayers). The IRS issued special guidance for taxpayers who have already filed their 2018 or 2019 tax returns and would like to avail themselves of the modified rules for NOLs. The CARES Act also delayed a provision originally enacted by the TCJA that limited “excess business losses for noncorporate taxpayers.” The TCJA had enacted a new limitation for owners of flow-through businesses (S Corporations, Partnerships or Sole Proprietorships). This provision, as enacted by the TCJA to be effective for tax years 2018 through 2025, limited business losses exceeding $250,000 ($500,000 in the case of married taxpayers filing a joint return) and were not eligible for carryback. The CARES Act allows excess business losses for tax years 2018 through 2020 and, if net operating losses are generated, allows for a five-year carryback period. Business owners should note, however, that the excess business loss limitation was just one way in which an owner’s
“
THE CARES ACT MADE TWO SIGNIFICANT CHANGES IN THE NET OPERATING LOSS RULES AND TEMPORARILY REMOVED A LIMITATION ON BUSINESS LOSSES ENACTED BY THE TAX CUTS AND JOBS ACT OF 2017.
”
loss could be limited. Taxpayers must still be at risk for and have sufficient basis to claim any ordinary loss. Further, passive shareholders may only offset passive income with passive losses.
Credit for prior year minimum tax (AMT credits) The TCJA repealed the corporate alternative minimum tax (AMT). Taxpayers that had previously paid the AMT received Minimum Tax Credits (AMT Credits). The TCJA made those credits refundable over four years (2018 to 2021). The CARES Act accelerated the refundability of this credit, allowing the refundable amount in 2018, but making it fully refundable in tax year 2019. However, the CARES Act also provides for an election to take the entire refundable credit amount in tax year 2018.
Business interest limitation The CARES Act temporarily increases the limitation on business interest expense for those subject to the limitation. The TCJA had introduced a new limitation for tax years beginning after December 31, 2017, whose average annual gross receipts exceeded $25 million, a limitation that is subject to inflations (the limitation applied to companies with average annual gross receipts of $25 million and $26 million in 2018 and 2019, respectively). Any business interest expense that exceeds the sum of interest income and 30% of adjusted taxable income is not allowed as a deduction in the year paid or incurred, and the excess amount is carried forward as an interest expense to future tax years (indefinitely). The CARES Act temporarily increases the limitation on the deductibility of net interest expense to 50% of adjusted taxable income for any tax years beginning in 2019 or 2020. Processors concerned that their adjusted taxable income will be minimal or zero are allotted some relief in computing their 2020 adjusted taxable income limitation. At the election of the processor, the 2020 interest expense limitation will be 50% of its 2019 adjusted taxable income.
Qualified improvement property The TCJA modified both the bonus depreciation rules and the definition of qualified improvement property. The TCJA increased the bonus depreciation percentage to 100%, retroactively, for property placed in service after September 27, 2017, through December 31, 2022. Beginning in 2023, the bonus depreciation percentage is phased down by 20% each year, with the accelerated “bonus” depreciation phased out by 2027. page 8
www.arpminc.com 7
SOLUTIONS page 7
In addition, the TCJA consolidated three types of improvement category assets into a new category called Qualified Improvement Property (QIP). For processors, QIP includes any improvements made to the interior of your facility that are placed in service after the date your facility was first placed in service. Improvements do not include enlargement of the building, elevators or internal structural framework. In writing the TCJA, a general 15-year recovery period was intended to have been provided for QIP. However, due to a drafting error, that specific recovery period did not make it into the final statutory language of the bill. As such, under the TCJA, QIP fell into the 39-year recovery period for nonresidential real property, and therefore is ineligible for 100% bonus depreciation. The CARES Act provided a technical correction to the TCJA and specifically identifies QIP as 15-year property for depreciation purposes. This also makes QIP eligible for 100% bonus depreciation. Given that it is a technical correction, the provision is retroactive, and processors can write off any QIP placed in service after December 31, 2017.
Concluding thoughts Numerous other provisions, including the Paycheck Protection Program, the Economic Injury Disaster Loans and Emergency Grants, and individual tax relief, were enacted as part of the CARES Act; and Treasury seems to be issuing new guidance as quickly as issues or ambiguities arise. As you may suspect, these provisions don’t exist within a vacuum. Many provisions impact others, as well as existing tax incentives. As such, careful planning is advisable. Michael J. Devereux II, CPA, CMP, is a partner and director of Manufacturing, Distribution & Plastics Industry Services for Mueller Prost. Devereux’s primary focus is on tax incentives and succession planning for the manufacturing sector. He regularly speaks at manufacturing conferences around the country on tax issues facing the manufacturing sector. More information: mdevereux@muellerprost.com
Independent Testing, Development and Problem Solving Since 1962
Rubber. Plastic. Latex.
Akron Rubber Development Laboratory, Inc.
• • • • • • • • • • • • • • • •
Compound Development Mixing and Molding Services Formula Reconstruction Technical Training Courses Chemical Analysis and Testing Physical/Mechanical Testing Accelerated Aging Dynamic Testing Engineering Testing Shelf and Service Life Prediction Microscopy Failure Analysis Pharmaceutical Services Microbiological Services Custom Test Design Consulting Visit www.ardl.com for our wide range of problem-solving capabilities.
Toll Free (866) 780-ARDL • Worldwide (330) 794-6600 Contact Us Today at answers@ardl.com 8 Inside Rubber // 2020 Issue 2
MEMBER NEWS The Power of Community During COVID-19 A message from Troy Nix, executive director, ARPM As a leader, we can get laser-focused on fixing problems and supporting our people. Leadership often is a lonely post and requires an enormous amount of emotional wherewithal and perseverance. I have heard leaders in the past tell me, “Troy, I cannot spend time networking. I need to work on my business.” While sometimes this tactic is necessary, right now, as leaders, we need to get out of our head, stop being lone rangers and work on connecting ourselves with other leaders – even if they are competitors. Right now, the rubber industry is experiencing a novel event, that many – including myself – originally underestimated and thought would be only a “blip” on the radar. As time continues on, we are all realizing this is no longer a blip. Instead of hoping to ride this out, company leaders need to understand the power that can come with connecting and learning from their peers. That can be scary for some. I know of one manufacturer who was deemed “nonessential” by a state’s stay-at-home order. Knowing the impact this could have on the manufacturing business and – even worse – on its
ARPM Welcomes New Members Please join ARPM in welcoming the following new members: Ace Extrusion – Evansville, Indiana Eagle Rubber Products – Zelienople, Pennsylvania IER Fujikura, Inc. – Macedonia, Ohio Jasper Rubber Products Inc. – Jasper, Indiana Moldtech Inc. – Lancaster, New York Stern Rubber Company – Staples, Minnesota
ARPM Requests Help with Revision of MO-1 Rubber Handbook The ARPM Board of Directors is soliciting association members to provide technical assistance in reviewing the ARPM MO-1 Rubber Handbook. ARPM’s MO-1 Rubber Handbook should represent the most current information on molded, extruded, lathe-cut and cellular rubber industry sectors and provide engineers with a uniform method of stating engineering and quality conformance requirements in a manner their customers and 10 Inside Rubber // 2020 Issue 2
people, the leader proactively looked outward and connected with another company down the road that was making lifesaving medical parts. The manufacturer “loaned out” its employees, so the employees could keep their jobs and their livelihoods while gaining the pride that comes with helping to manufacture parts that serve the greater good. Through recent peer exchanges, company leaders who are not normally apt to join these calls learned about best practices in keeping their employees safe; finding and managing cash to keep their business afloat; and new leadership practices to help their companies survive this new challenge. Afterwards, these same leaders came back and thanked me for the exchange, noting how much they were able to learn in such a short period of time. The problem is, it isn’t me they need to thank. Instead, they need to thank the other leaders who dedicated their time and expertise to helping others – and themselves for agreeing to let down their guard and accept help when they need it. Right now is not a time for pride or ego, but a time to come together as an industry – to accept that no one person has all the answers. But together, if we ask for assistance and accept the help that is being offered, we can lean on this community to connect us like never before.
suppliers can approach with the same certainty of understanding. To ensure the technical information provided to our members and the general industry represents the latest findings and most up-todate industry data, the ARPM MO-1 Rubber Handbook has been scheduled to be modified, updated and republished. In order to accomplish this update, the ARPM leadership team needs help from technical professionals on your staff. We believe that revision of the Rubber Handbook can be completed through telephone conference calls. If you are willing to take part in this one-of-a-kind event, your company will be recognized as a primary contributing entity to the late 2020 update. This recognition will be made visible to countless OEMs and end customers to the rubber products industry and serve to improve brand awareness of your contributions. Email lkeslar@arpminc.org to identify which industry segment your company would be willing to support and list the point of contact name and contact information next to the corresponding category: Molded Rubber Products Extruded Rubber Products Lathe-cut Rubber Products Cellular Rubber Products Quality Conformance
ARPM Develops COVID-19 Resource Library Due to the recent outbreak of COVID-19 across the globe, ARPM’s team has constantly worked to generate resources for ARPM members. These resources are available in the ARPM COVID-19 Resource Library: Policies and Best Practices for Having Employees Work from Home: This entry also includes articles, resources and best practices for working from home and managing a remote workforce. This is a working document, and more resources and policies will be added as the COVID-19 pandemic continues. COVID-19: Policies for When an Employee Tests Positive: In this working document, ARPM has compiled several policies and procedures from member organizations. These policies outline how to respond should an employee test positive for the novel Coronavirus. Additionally, this document contains CDC recommendations for cleaning and managing the spread within a facility. Essential Business and Stay-at-Home Orders FMLA and FFCRA Information Guidance SBA Relief Business Loan and Application/Information Culture and Employee Morale: Examples of member companies’ efforts to boost employee morale. COVID-19 Accounting and Disclosure Implications A COVID-19 Crisis Management Series, and educational webinar series. To provide members with information critical to continuing businesses, maintain cash flow, accessing tax reliefs and understanding changing labor laws and legislations. Links to these webinars can be found in the resources center at www.arpminc.org. COVID-19 Policy Benchmark: In conjunction with the MAPP (Manufacturers Association for Plastics Processors), AMBA (American Mold Builders Association) and ARPM, 88 resources were compiled into a more than 300-page document containing policies and procedures pertaining to the COVID-19 outbreak. This working document includes a list of policies, procedures, action plans and resources. All the documents included in this compilation have been submitted by a member of MAPP, AMBA or ARPM. By gathering resources from various manufacturing industries, there is a greater pool of knowledge from which the team was able to pull. In addition, a Resources Hub landing page has been set up on ARPM’s website (www.arpminc.com) that contain links to these documents, reports and webinars. ARPM encourages members to check back to the Resources Hub page, as new information is updated daily.
ARPM Launches a Weekly Leadership Roundtable ARPM will host a weekly virtual peer networking exchange for leaders in the rubber and plastics industry. Each Thursday, industry leaders will join the call to discuss best practices,
common challenges, ideas and solutions to the common management and leadership hurdles being faced in the wake of the current crisis. During each exchange, leaders will have the opportunity to submit their own questions for group discussion. The first call will involve leaders discussing managing the change in their businesses and focus more specifically on how they are improving themselves, their companies and their teams during this time. The next call will be a discussion of “Emerging from COVID-19.”
EHS Issues Call Out for Speakers The Environmental, Health and Safety (EHS) Summit is designed to share the best leadership and safety practices with industry professionals hoping to achieve world-class safety within their companies. This one-of-a-kind learning and networking conference will focus on uniting manufacturing executives from across the United States. Attendees will focus on best practices in environment, health and safety along with becoming a better leader. The EHS Summit will be held November 11-12, in Cleveland, Ohio. The most important element of the Safety Leadership Conference is the educational component contributed by the industry experts. If you are an EHS professional and would like to share your professional experiences and program successes with our audience, we encourage you to respond to our Call for Presenters. The deadline for applications for speakers is June 15, 2020. All presentations must be non-proprietary and cannot mention specific goods or services. If you have questions or require further assistance, contact Letha Keslar at 317.863.4072 or lkeslar@ arpminc.org.
ARPM Releases Revised Sealing Publication OS-8 The Association for Rubber Products Manufacturers (ARPM) released its newly updated OS-8 Visual Variations Guide for Rotating Shaft Seals. The purpose of OS-8 is to provide a clear definition and impact assessment for unanticipated variations and features found on radial lip seals. It is the intention that this document be used as a specification within customer and supplier design documentation to understand and control allowed variation and avoid negative functional impact to radial seal performance. This document page 12
www.arpminc.com 11
MEMBER NEWS page 11
was updated through the collective consensus of the members of the ARPM Dynamic Seal Committee and is intended for reference use only. This publication was reviewed and approved by the member representatives of the ARPM’s Sealing Products Dynamic Technical Committee. The ARPM would like to acknowledge the following member companies for their contributions in the development of this publication: 3M Advanced Materials Division; AGC Chemicals Americas; Amsted Seals and Forming; Consolidated Metco, Inc.; Fiat Chrysler; Fluid Sealing Science, LLC; Ford Motor Company; Ford Transmission Driveline Eng.; Freudenberg-NOK Sealing Technologies; Grace Technology and Development; SKF Sealing Solutions; The Chemours Company, LLC,; Trelleborg Sealing Solutions Americas; Zeon Chemicals L.P.; and Waker Chemical. “This document addresses, in a definitive way, the features a customer sees when they open a container of oil seals,” stated Greg Vassmer, ARPM dynamic sealing committee chair. “There are many small features, marks, bumps and colors, but which represent a potential defect, and which are variations in the molding process? The guide takes an inspector through each segment of a seal, identifies typical features that are visible to
New Precise Cleaning Power! A499 Precision Mold Cleaner is a fast acting, non-chlorinated cleaner with dynamic blasting power. It contains powerful cleaning agents to remove resin build-up, grease, oils, waxes, and silicone oils from molds, tools, and equipment. Dries fast and leaves no residue.
Try a Can for Free!
FREE Can of A499
Plus you will also receive a 50% off coupon for your first order of A499 Precision Mold Cleaner.*
StonerMolding.com/A499rubber Call 1-800-227-5538 or email CustomerService@StonerMolding.com
Promo Code: A499IRM *Offer applies to A499 only up to $200, not entire order.
12 Inside Rubber // 2020 Issue 2
the naked eye and grades them by importance and impact on the performance of the seal. A user of seals will want this heavily illustrated bulletin to understand when they should be concerned and when not.” Keeping with ISO standards, all ARPM technical standards are reviewed every five years to establish if a revision is required to keep it current and relevant for the marketplace. The revised OS-8 Visual Variations Guide for Rotating Shaft Seals and over 100 technical standards are free for ARPM members or available for purchase on the ARPM website.
Rubber Operator Training Module is Complete ARPM has unveiled a new training module – Rubber Operator Training: Injection Molding, Extrusion, Material Mixing and Compression/Transfer Molding. The curriculum, designed to train the rubber processor, is the first of its kind in the rubber industry. ARPM realizes that the biggest crisis facing the industry is workforce development and believes that this training will help companies alleviate that pain. “Creating pathways from job training to career is critical for our members and our economy,” said ARPM Managing Director Letha Keslar. “We are excited that the board of directors has made this commitment to enhancing the competitiveness of our members’ companies! We have completed the Material Mixing and Compression/Transfer Molding, Injection Molding and Extrusion training modules.” ARPM has partnered with 180 Skills, the leading provider of online technical skills training for manufacturers. The 180 Skills manufacturing Skills Training System includes more than 700 skills courses, a learning management system, and content organization tools that enable employers to deliver job-aligned skills training to everyone from job seekers and new hires to skilled incumbent employees. Processors who register for the ARPM/180 Skills program also gain access to 180 Skills’ entire library of over 700 online, competency-based courses. This library covers everything from baseline to advance manufacturing content, all in a very engaging format promoting mastery in each skill set. The training program is open to all ARPM members. For more information on the program, visit https://arpminc.com/resources/ training or email info@arpminc.org.
STRATEGIES
COVID-19: The Stress Test We Never Expected By Scott Walton, COO, Harbour Results, Inc.
W
e are at an unprecedented time for manufacturers. The COVID-19 pandemic has impacted every aspect of the global economy and marketplace. This, coupled with a challenging year in 2019, has created the “perfect storm” for manufacturers. There is no playbook for what the industry is going through, but it is critical that leaders create short-, medium- and long-term plans for how your business will navigate this ever-evolving landscape. And, there has never been a time in our recent history when a stress test is a more necessary business activity for determining stability. Many of you have been forced to go through this exercise to survive, but if you are among those who were prepared – or whose business surged during this time – you should not get complacent.
Stress testing is a necessity. Why should you stress test your business? There are many reasons. Aside from being a good business practice, today’s uncertain economy, technology changes and growing competition create a situation in which a change could come from anywhere – just like COVID-19 did. Whether it results from changes in tariffs or the economy, losing a customer or having them go on strike, it’s imperative you take a proactive look at how – or if – your business can cope. By doing so, you eliminate risks by identifying vulnerabilities, understanding gaps and risk points, future proofing your business and creating transparency. In the past two years, Harbour Results has been involved in the turnaround of eight manufacturing businesses with one common thread – each waited too long to identify and fix weaknesses in the business. At some point, there’s no reversing a negative or downward trend. Avoiding this scenario all starts with an analysis of solid, accurate data and a review of your balance sheet and cash flow. Start with a scenario plan and mocked profit and loss statement. Then, run the income statement to the ground and use pro forma (a financial report using assumptions and hypotheticals about future events) to identify gaps and vulnerabilities in your business. Be sure to analyze the information for risks. What line items jump out as ones that need attention? From there, create a 14 Inside Rubber // 2020 Issue 2
contingency plan based on a series of “what if” questions. Doing this will not only give you invaluable information about your business, but also will make you think differently as you begin to future proof your plans.
Get ahead of the curve: the proactive approach A proactive stress test should be so harsh that it can push a system to failure. Once you’ve built a pro forma, you need to understand your true costs and profitability. Look at your SG&A (Selling, General and Administrative Expenses) spreadsheet. How good are your standards? Where does your actual profit come from? Next, strengthen your balance sheet by running ratios (current and three- to five-year trends of each). 1. Total debt EBITDA Lower is better; above 4 is concerning 2. Current assets Current liabilities Higher is better; below 1.5 is concerning 3. Cash and account receivables Liabilities Higher is better; below 1 is concerning With this info, you now can find ways to work your debt down or your profit up. How? Benchmark top performers. But don’t rationalize, overanalyze and/or explain away performance throughput.
One critical factor to make all this possible and accepted throughout a business is leadership. Leaders need to be on board with all of this and ensure that mentality trickles down throughout the organization. Leaders need to create discomfort – an edginess … but do so in a positive way.
The numbers are in. Time to react. If your stress test results come in and are a cause for concern – for example, balance sheet ratios are off or the income statement is under stress – it’s time to plan and execute. The first step in stopping the fall and reversing the trend: lead with urgency and create a rally call to action for your key team members and any outside experts you may need. Remember, it’s OK to ask for help. You don’t have to have all the answers. Be transparent to your team. Communicate the challenge and show consistent presence on the shop floor and in key departments. Remember, a lack of communication doesn’t mean employees will be uninterested. In fact, the lack of information will spark the creation of false truths and explanations that they develop on their own.
There are many questions the industry faces as we go through the current COVID-19 crisis. The only thing we are sure of is that the future will be different – behaviors will change, a new normal will emerge and unhealthy companies will fail. It is critical that companies act now: Understand your current financial state, identify opportunities for improvement and communicate with your employees and your customers. Scott Walton is chief operating officer of Harbour Results, Inc. Walton has more than 30 years of experience in strategic planning, operations management, lean manufacturing and supply chain management. Combining operational and strategy expertise with manufacture, Harbour Results is a trusted advisory helping the North American manufacturing industry. The company specializes in improving both the operations and strategies for small- to medium-sized manufacturers, including stamping, tooling, precision machining and plastics. More information: www.harbourresults.com
From a financial standpoint, manage your cash. Control your costs and profitability to help the financial stability of the business. Finally, make a 100-day plan. If the results of your stress test aren’t great, you may want to ignore them or deal with them later. Don’t do that. The time to act is now: The numbers are not going to magically get better overnight or without intervention.
Switching perspectives: demand Supply factors aren’t the only things to consider. You need to create demand through strategic selling. And, similar to the activities in the stress test, a strategic selling process heavily relies on solid, accurate data. Whether done proactively or reactively, your selling strategy should be driven by the collection, analysis and response to your data, as well as some market intel.
Get started. No one likes tests, but they are necessary. It’s true for your body and your business: Tests are how you make sure everything is in working order. When stress-testing your business, you don’t have to sit in a waiting room for something to happen; you can get started right now. 1. Run a pro forma with a scenario involving a 25% reduction. 2. Run your balance sheet ratios and devise a plan to strengthen it. 3. Respond to what your data is showing: Don’t overanalyze. 4. Identify opportunities to improve efficiencies with little investment. 5. Spend time on the demand side: Create a strategic sales plan.
Manufacturing Software that Promotes Business Continuity for your Organization
DELMIAworks’ IQMS ERP and MES software helps you serve your customers when they need you most.
Ē Ē ħ Ļ Ē ħ ŐŎŎĒŋŎŏĒŋŏŏŊ www.arpminc.com 15
ECONOMY
What Will the Economic Aftermath Look Like? By Chris Kuehl, managing director, Armada Corporate Intelligence Editor’s Note: This article was written on April 16, 2020.
T
he status of the global economy has altered just a bit from what it was just a couple of months ago. It seems that all those standard concerns regarding inflation and deflation, interest rates, consumer confidence, industrial output and just about everything else that once preoccupied the minds of the economists have faded from view – replaced by reaction to the modern day plague of COVID-19. The focus now is on the “lockdown recession,” an economic catastrophe that is unparalleled in its origins and complexity. We all know by now that nearly the entire world has been brought to a standstill by the effort to control the spread of the virus, and every day brings more evidence of that economic impact. There have been over 22 million layoffs in just three weeks, retail sales plunged by 8.7% and oil prices have fallen to below $20 a barrel. The stock market has lost all the gains made in the last five years, industrial production has ground to a halt, and much of the damage has yet to be catalogued. Given that these cascades of bad news come every day, it seems more useful to try to focus on what the economy might look like when this crisis has been declared at an end. That aftermath is likely to look very different from those that have followed previous recessions, such as the one the world endured in 2008-2009. This one has been termed a “lockdown recession” because it was entirely artificial – a recession brought to you via government edict. Prior to the arrival of COVID-19, the economy of the US was in pretty fair shape. Nobody was expecting a particularly strong year, but growth was at 2.1% at the end of 2019 and, until the middle of March, the GDP growth rate had been holding at about that 2.1% level. The bottom dropped out of the economy with the announcement of the lockdown, and now Q1 estimates are as low as -6% to -10%. Those who are venturing a prediction for the second quarter are asserting that GDP growth could be as low as -20%. On the other hand, there are those who point out that Q2 numbers will be collected through June, opening the door to a possible rebound at the end. Most assert there will be a recession (formally), as there will be negative growth through the first two quarters.
16 Inside Rubber // 2020 Issue 2
To escape a recession that affects the entire year, there will have to be a return to the economic conditions that existed prior to the outbreak of the virus. In fact, there will have to be more growth and more activity than had existed prior to the pandemic if affected business is to recover a significant percentage of what has been lost. How likely is this? It will all come down to timing and consumer attitude going forward.
Three economic scenarios There are three scenarios under discussion at this point. The first is the May Rebound. This assumes the lockdown is lifted early in May and that recovery can be underway by the end of the month. This rebound then picks up speed in June and July and allows for a significant recovery in the last two quarters of the year. The estimate is that GDP will shrink by around 1.6% over what it was at the end of 2019. Given that 2019 ended with a growth rate of 2.1%, a decline of 1.6% leaves the US economy with a 2020 growth rate of 0.05%. That is obviously a miserable rate of growth – and is as slow as the economy has been since the recession of 2008 – but, it is not an actual, formal recession (as defined by the National Bureau of Economic Research as two consecutive quarters of negative growth). This scenario delivers negative growth in Q1 and very slow growth in Q2, while Q3 and Q4 return to close to 2.0%.
“
TO ESCAPE A RECESSION THAT AFFECTS THE ENTIRE YEAR, THERE WILL HAVE TO BE A RETURN TO THE ECONOMIC CONDITIONS THAT EXISTED PRIOR TO THE OUTBREAK OF THE VIRUS … IT WILL ALL COME DOWN TO TIMING AND CONSUMER ATTITUDE GOING FORWARD.
”
What will it take for this scenario to develop? First, the COVID-19 infection rate will have to peak as predicted – late April. This means a leveling off of new infections, hospitalizations and fatalities. This has occurred in China, South Korea, Taiwan and Singapore, as well as several of the European nations. Some US states are reporting a similar experience. The second thing that has to happen is a return of consumer confidence. If a restart is declared – but people still resist shopping, dining out, traveling and going to work – there will be no robust recovery. Third, the government will have to continue to offer assistance to affected business and to the population affected by job loss and economic dislocation. Thus far, the assessment holds that people will resume their old patterns fairly quickly, but there will be exceptions in populations that have been deemed vulnerable and in regions that have been hit hard. The second major scenario is the Summer Rebound. This version holds that recovery efforts will not begin until at least June and possibly not until July. The lockdown stays in place through May and into June, and then slowly retreats through the summer. If this is the scenario, there will be a 5.5% decline in the GDP – and that takes the whole of 2020 into recession territory. This likely would mean that Q1 and Q2 would be in severe recession, with GDP losses near 6.0% to 10.0%. The Q3 numbers would likely struggle back into positive growth territory, but that will not be robust enough to counter the impact of the previous quarters. The estimate is that Q4 will start to approach normal growth of 2.0%, but that will not be enough to keep the year out of recession.
the peak will be delayed until sometime in May or even June. The consumer will remain very cautious and unwilling to accept the “all clear” declaration. Business will be reluctant to bring people back to old work patterns, and there will continue to be severe declines in sectors connected to travel, leisure and entertainment. There also would have to be setbacks in nations that have been moving towards normalcy. The Asian states already have had to deal with secondary infections as people have traveled back home, and it is not clear whether people who have been infected once can be considered immune to reinfection. The third scenario is by far the most miserable, as it asserts there will not be a recovery period until the end of the summer or into fall. This means a GDP decline of between 6.0% to 10.0%, and that would be worse than the 2008 decline. Recovery would not even start until the end of Q3 or perhaps Q4. The chances of a retail boom fade and the travel/tourism season will have passed. This is the “L” recession, and it drags on for years. The majority of the unemployed stay in that situation for an extended period of time. One of the worst-case assessments came from the St. Louis Fed, which predicted a loss of over 50 million jobs if recovery is delayed into the fourth quarter. To put that in some perspective, the Great Recession of 2008 cost around 9 million jobs. As grim as these jobless numbers are, it is important to understand that page 18
Game-changing solutions for rubber molding applications. MONO-COAT ® RELEASE AGENTS & MOLD PROTECTANTS
Mono-Coat® products offer extreme value through their combination of advanced technology, ease of application and positive impact on operational efficiency.
CHEMTREND.COM
To get this “U”- shaped recession, there will have to be setbacks and delays. The virus will remain pervasive and persistent, and www.arpminc.com 17
ECONOMY ď ´ page 17
some 80% are expected to return almost immediately upon the lifting of the lockdown, but that still leaves a gaping hole in the job market.
protocols to protect attendees. The final phase would be the return of events and venues that draw large crowds. The bottom line is that normal will look very different than it once did. ď ľ
To see this scenario play out will require almost everything going wrong. The virus fails to fade until late in the summer and, by the time it does, there are perhaps 100,000 fatalities and perhaps five times that many serious cases. At the time of this writing, there were around 22,000 fatalities. Getting to that grim prediction would be very hard. Most importantly from an economic recovery point of view, the consumer would remain extremely wary and unwilling to resume old habits. It would be likely that many businesses would remain shuttered even if allowed to reopen. They would expect few customers and would prefer to wait for a more secure moment.
Chris Kuehl is managing director of Armada Corporate Intelligence. Founded by Keith Prather and Chris Kuehl in January 2001, Armada began as a competitive intelligence firm, grounded in the discipline of gathering, analyzing and disseminating intelligence. Today, Armada executives function as trusted strategic advisers to business executives, merging fundamental roots in corporate intelligence gathering, economic forecasting and strategy development. Armada focuses on the market forces bearing down on organizations.
The retreat on the lockdown will likely be in stages and slow. The first step might be opening more retail outlets, as there already are many stores that have been deemed essential. The second step would likely include service establishments and restaurants, as it would be assumed that steps could be taken to make these establishments less risky. The third phase would be opening up to conferences and meetings, as there would be ways to adopt
More information: www.armada-intel.com
Proud Sponsor of ARPM
RUBBER IN MOTION 18 Inside Rubber // 2020 Issue 2
Don’t let your vision be any less than 20/20 this year. Focus on achieving your goals at IEC! October 20 - 22, 2020 Knoxville Convention Center • Knoxville, TN USA 198th Technical Meeting Over 100 presenters will be sharing their knowledge on these topics:
The International Elastomer Conference is the premier place where educators, customers, manufacturers and suppliers of materials, equipment, tools and services come together. This event is the one place, one time of year, where you find the best of our industry all under one roof. It provides a forum for the exchange of ideas, observations, regulatory reforms and emerging scientific technologies, as well as learning, networking seeing current customers and developing new ones.
The Expo Over 200 companies/organizations will be exhibiting! A wide variety of companies will be represented, such as equipment manufacturers, injection molders, extruders, custom mixers, processing equipment, hydraulic presses, vacuum molding, testing labs, testing equipment, distributors, suppliers and many more in the industry. Visit rubberiec.org to view the floor plan/exhibitor list and learn about exhibiting!
Other Events
• Women’s Preconference Workshop • Welcome Reception • Student Colloquium - Presentations & Posters • Experience Elastomers High School Student Program • Career Fair • Rubber Division, ACS Committee Meetings • Special Events, including a 5K Walk/Run, 25-Year Club Luncheon and Business & Awards Meeting
Brought to you by:
• • • • • • • • • • • • • •
Rubber Compounding for Performance Elastomers in Alternate Energy & New Mobility Advances in Reinforcements for Elastomers Elastomer Aging, Degradation & Flammability Machine Learning for Material Development Progress in Elastomer Synthesis Hydrogel Elastomers Elastomer Foams Thermoplastic & Specialty Elastomers Advances in Materials & Processes for Car & Truck Tires Rubber Testing & Characterization Sustainability New Commercial Developments Contributed Sessions
The 17th Annual Student Colloquium papers and presentations will be featured on October 21st.
Educational Symposium We have developed a great educational symposium featuring these courses: • • • • • • • • • • •
Soft Skills for Scientific Success Rubber Explained Fillers: Non-black and Carbon Black Vulcanization and Curing Chemistry Hazardous Communication Essentials of Rubber Technology Essentials of Silicone Rubber Basic Rubber Compounding Compounding Fluoroelastomers Mixing and Testing for Compound Consistency Setting Up a Rubber Molding Process …and more to be added soon!
Interested in attending or exhibiting? Visit rubberiec.org.
VIEW FROM 30
Blair Rubber Embraces a Philosophy of Learning By Liz Stevens, contributing writer, Inside Rubber
T
raining can be hit or miss. Managers assume that the experienced operator on the floor showed the new person the ropes… and told them all of the important OSHA requirements… and described 5S in detail… but, just maybe, that isn’t happening. Blair Rubber Company wanted to make certain that adequate and appropriate training was provided to its employees – and it wanted to track that learning. The combination of a custom Excel spreadsheet and an online course library provided a solution.
Blair Rubber Company was established in 1981 and is located in Seville, Ohio, south of Cleveland and Lake Erie. The company manufactures corrosionresistant rubber linings for storage and transport, and it serves chemical plants, mining, rail and While most Blair Rubber employees have taken 30 to 40 courses, some transportation, steel mills, utility plants and water have taken as many as 300. (Photo taken prior to COVID-19 social treatment facilities. Inside Rubber talked to plant distancing recommendations.) manager Gregg Reinmann about how Blair Rubber offers education and training to its crew of 65 employees. The other tool in Blair Rubber’s training combo is the 180 Skills Training and tracking online package offered by ARPM to member companies. The Reinmann explained that Blair Rubber uses a combination of two package features hundreds of courses and includes a training software tools to make cross training, advancement and higher management system for enrollment, for creating “learning paths” salaries available to those enterprising employees who take and for generating reports on user progress. advantage of the opportunity to learn and grow. One of the tools is an elaborate, customized Excel workbook for use in tracking The 180 Skills course library is divided into four categories, the employees’ training schedules and status. Reinmann also uses including technical courses, safety courses, continuous the Excel file for noting trends, highlighting issues and providing improvement and a baseline category with topics such as data for monthly management reports. “Using spreadsheets is the Customer Service, Math, Team Building and Time Management. premier tool to organize data to an easy-to-understand format,” he said. “We are making a concerted effort to use visual tools All employees at Blair Rubber are eligible to use the training to easily share our results, and these would include graphical program. “The only ‘required’ programs,” said Reinmann, illustrations of data with conversions to statistical summaries.” “were designed for the small group of employees who express
“
OUR FUTURE WILL BE TO FIND GROUPS OF COURSES THAT CAN … INCREASE COMPETENCY, HELP EMPLOYEES GROW AND DEVELOP, AND FURTHER INCREASE OUR ABILITY TO CONTINUOUSLY IMPROVE. 20 Inside Rubber // 2020 Issue 2
”
Reinmann said that the company has seen an improvement in professional behavior, as well as a more organized workplace, as a result of implementing and offering its training program. When eyeing the future, Blair Rubber intends to take advantage of the 700+ courses in the 180 Skills package. “Our future will be to find groups of courses that can enhance our facility initiatives,” said Reinmann. “By doing this, we can increase competency, help employees grow and develop, and further increase our ability to continuously improve.”
Blair Rubber employees from a wide range of departments have taken advantage of training, including the factory floor, quality, maintenance, supervisors, human resources and more.
interest to develop and work toward consideration for supervisory roles.” These will include OSHA, Organized Workplace & 5S, Communication Skills and softer skills sets like handling difficult employees and/or situations. For those individuals, Blair Rubber designs learning paths and expects employees to complete the course work in a timely manner. All the rest of the 180 Skills courses, Reinmann explained, are available to employees on their own time and can be accessed from home computers. “If we feel that an employee would benefit from specific training to supplement job development,” Reinmann added, “we will provide work time for employee access and to ensure that training is completed.” Beyond that, the company does not create schedules or prioritize the training but is happy to help customize training paths for employees’ individual needs and desires. “If an employee expresses interest, we open the library and permit them to increase their competence,” he continued. “We have given access to numerous maintenance courses, math, Excel, statistics and leadership.” In this self-serve training environment, Reinmann reports that the company consistently sees employees demonstrate initiative. “A great many of our departments or business disciplines have taken advantage of this opportunity,” he said. This includes factory floor teammates, technical staff, quality team members, maintenance technicians, supervisors, office staff, human resources, and health, safety and environmental professionals. According to Reinmann, “Most every group has used this program in one session or another. We have a few who have sought out and used 180 Skills for over 300 courses!” The majority, he said, hover at around 30 to 40 courses.
The philosophy of learning at Blair Rubber is an open and generous one. As Reinmann puts it, “Whether directly or indirectly, training employees in just about any subject matter will help an organization. Most times, the benefits come back to the company ten-fold. If we invest in an employee and they choose to leave for other opportunities, Blair Rubber believes that we will not only have helped that person develop, but we will have helped our society improve, too. That potential exponential expansion is the reason why we are all here, right?” It’s a helluva philosophy, and a great impetus for sharing and acquiring knowledge.
THE INDUSTRY NEEDS YOU
JOIN THE NETWORK TODAY!
ASSOCIATION FOR RUBBER PRODUCTS MANUFACTURERS Networking | Training | Benchmarking | Industry Standards | Resources and more What members have to say: "The most important benefit I've found from our ARPM membership is the knowledge of the industry. I have been able to learn from the best practices activities as well as stay up-to-date on technical information." VIsit arpminc.com for more.
www.arpminc.com 21
TECHNICAL STANDARDS UPDATE
Standards Development for Protective Linings
I
n the mid-1970s, power plants began using scrubbers on their combustion exhaust gas when burning fossil fuels. Scrubbers were (and are) needed to remove sulfur dioxides, which – when combined with water in the atmosphere – form sulfuric acid, aka acid rain. In the early years, the primary materials for making the flues and combustion gas scrubbing Greg Vassmer system consisted of stainless steels, exotic ARPM nickel alloys and nickel-chromium-based Technical Coordinator superalloys. These materials ultimately corroded, causing scrubber failures and cases where the combustion gas had to be vented directly into the atmosphere while the scrubbers were repaired. Sulfur dioxide was not the only problem. In addition to sulfuric acid, there was an entire cocktail of chemicals, several forms of abrasion, extreme temperatures and exposure to liquids that attacked the metals – especially at their weld points. The solution was and is rubber liners – specifically, a continuous sheet of ⅛ to ½ inch rubber applied to the inner surface of all exposed flue surfaces. Service life improved so substantially that rubber lining became the industry best practice. The ARPM standards and guidelines addressing rubber-lined tanks, pipes and similar products first were created in the mid1980s. And, while power plants are one of the more extensive and visible users of rubber-lined equipment, the product is used in many other places. In addition to utilities, rubber-lined products are used in the oil and gas industry, wastewater treatment, mining and truck/rail tankers, to name a few. Each has materials that are chemically acidic, caustic, abrasive or explosive (please don’t cause a spark) – or a combination of these – that need to be transported from place to place. So, what is so hard about gluing a rubber sheet to the inside of a tank or pipe? I asked Dave Jentzsch at Blair Rubber, a contributing company to the ARPM OS standards and guidelines regarding Protective Linings, for his input. First, consider the types of rubber involved. Soft natural rubber is excellent at absorbing impacts from abrasives in the pipe. Chlorobutyl rubber has great gas impermeability and
heat resistance. Neoprene is resistant to oils, heat and caustic materials. The rubber needs to match the expected environment. Next, the rubber needs to be bonded to the inner surface of the tank/pipe. This is not as straightforward as it sounds, since there must be some way to push the rubber against the inner surface of the equipment. In a pipe, this can be done by pressurizing the pipe and ballooning the rubber until it fits tightly against the inner wall. Oh, and there needs to be a bonding agent to adhere the rubber to whatever metal was selected for the pipe. Unlike most rubber products, protective linings are installed uncured, which is needed to get the mechanical and chemical properties from the rubber. In the case of large tanks, high-energy steam is pumped into the tank to raise and hold the temperature to ensure the correct amount of energy is imparted to the rubber. And, since steam rises, special effort and equipment are needed to get the bottom of the tank cured, where the steam prefers not to be. The manufacturing of the rubber sheet and subsequent installation are not always done by the same company. In the case of Blair Rubber, independent installers and inspectors, trained by Blair Rubber, install the product worldwide. The company is one of very few to offer such training, which is based on our very own ARPM OS Protective Lining standards and guidelines. Once the lining is installed, a rigorous inspection plan is carried out on the state of cure, the bond quality and the surface appearance of the lining. But, it doesn’t end there. Unlike other coating materials, rubber linings can be repaired – providing an even longer life. Done properly, rubber-lined tanks and pipes will last 20 to 30 years in extremely harsh environments. Rubber is an amazing material. The number of manufacturers of protective linings has consolidated over the last 10 to 15 years. There now are only six or seven large companies and a few small companies providing these products worldwide. The number of users, however, is much larger. The collection of 19 standards (from IP-4-1 to IP-419) serves the installers and end users, helping them understand how to specify, handle and maintain their rubber-lined equipment. And, the standards are all from ARPM. If interested in assisting in the regular review of these standards, contact ARPM at info@arpminc.org. www.arpminc.com 23
SAFETY On the other hand, a complaint from an active employee who reports an imminent danger – such as having to enter confined spaces without proper monitoring or working at heights greater than 12 feet without fall protection – will trigger an onsite OSHA inspection.
Surviving an OSHA Inspection Coordinated by Liz Stevens, contributing writer, Inside Rubber
I
n July of 2019, the Association for Rubber Products Manufacturers (ARPM) hosted the Environmental, Health and Safety Summit in Columbus, Ohio. Chris Whitehorne, director of safety at professional services company US Compliance, presented a session at the Summit titled “How to Survive an OSHA Inspection.” During the session, Whitehorne shared his extensive, valuable knowledge and advice regarding the Occupational Safety and Health Administration and its inspections of manufacturers’ plants.
Part 1: Get to know OSHA
OSHA has jurisdiction over approximately seven million worksites and normally conducts inspections without advance notice. The agency prioritizes its inspections in this order: imminent danger situations, severe injuries and illnesses, worker complaints, referrals, targeted inspections and follow-up inspections. Triggers for OSHA inspections Based on Whitehorne’s 10 years of experience with US Compliance, the most common motivations for OSHA inspections are employee complaints, national or local emphasis programs, reporting of serious injuries and fatalities, referrals and follow-up inspections. Employee complaints that spark an OSHA inspection can come from active employees or former employees. Whether complaints are filed online or via phone, individuals are asked for their job status – active or former. In cases where a complaint is filed by a former employee, OSHA will typically send a letter to the facility in question. “If you respond to that letter, as long as you respond sufficiently, then they close out that employee complaint and they don’t come on site,” said Whitehorne. 24 Inside Rubber // 2020 Issue 2
Whitehorne offered a simple solution to manufacturers who want to eliminate the potential of employee complaints leading to OSHA inspections: Listen to employees’ concerns, track them and address them in a timely manner. In many cases, complaints are ignored. “Employees come to a point where they’re so disgruntled and concerned about their own health and safety that they notify OSHA,” said Whitehorne, “so the best thing you can do is make sure you have a system in place for employees to voice their concerns, and make sure you actively respond.” The three national emphasis programs that Whitehorne cited as OSHA inspection triggers that are most pertinent to the plastics and rubber industries include Amputations/ Hazardous Machinery, Hexavalent Chromium and Combustible Dust. These are three examples of potential hazards that OSHA is targeting now, among its eight current national emphasis programs. To review all of OSHA’s national emphasis programs, visit www.osha.gov/enforcement/ directives/nep. OSHA’s local emphasis programs are established by its 10 regional offices. Whitehorne’s advice? “Identify what your local emphasis programs are and make sure you’re all buttoned up in those areas.” To identify OSHA’s 10 regions and check on the local emphasis programs in each of them, visit www. osha.gov/enforcement/directives/lep. A facility’s OSHA history Whitehorne stressed the importance of keeping track of one’s history with OSHA. “Have there been inspections in the past at your facility?” he asked.
“Do you know what sites have had past citations? And most importantly, do you understand the citations and have you made sure your facility has addressed them and responded correctly?”
“Really, these are the primary areas of focus when they are coming into a facility, so it’s important to address those well in advance of OSHA showing up.”
Via the OSHA website,www.osha.gov/pls/imis/establishment. html, manufacturers can look up their establishment and see its OSHA inspection, violation and penalty history. The information is especially important for manufacturers with more than one site. Those owners can get the full picture for each of their establishments, understanding that a violation at one facility will put sister sites with the same violation in line for penalties in the costly Repeat category.
Make a plan Whitehorne stressed the value of making a plan for how personnel at a facility will handle an OSHA inspection visit. It is crucial to plan who will meet with the OSHA compliance officer, and who else might need to be on hand to answer questions. Whitehorne pointed out that while the plant manager or an EHS person or someone in charge of maintenance might be the designated contact for an inspection, it’s smart to have a backup contact in case the primary contact is not on site.
Part 2: The inspection process
An on-site visit by OSHA begins with an opening conference during which the OSHA compliance officer explains the reason for the inspection. The visit continues with one or more review/ inspection activities, and ends with a closing conference. The review/inspection aspect of an OSHA visit, explained Whitehorne, “includes a documentation review – where they are looking at programs, training and OSHA logs. There is a site inspection, typically tying in with employee interviews. And, depending on your process, they may look at industrial hygiene samplings as well.” In the closing conference, the OSHA compliance officer will outline the findings, make recommendations for improvements, and describe the possible citations that may be issued for violations. At a future date, there will be post-inspection proceedings. Be prepared To be ready for the day that an OSHA inspector knocks on the door, Whitehorne recommended being proactive and having an internal OSHA inspection plan. “Most importantly,” said Whitehorne, “know your risks and address them.” It is important for manufacturers to identify the top three to five risks at each facility and be sure they have been addressed. Next comes eliminating common red flags so that the site is in top-notch condition with “good housekeeping, proper lighting, clear aisles, proper PPE being worn, and clear access to all emergency equipment.” The three most common issues that Whitehorne sees being targeted by OSHA are lockout/tagout, haz-com and guarding.
“
DURING A VISIT, OSHA COMPLIANCE OFFICERS HAVE THE RIGHT TO INTERVIEW EMPLOYEES.
”
As part of the planning, said Whitehorne, “know when to use your resources during inspections. If you know that OSHA has come regarding a national emphasis program, such as lockout/ tagout, it’s critical that you have whoever wrote your lockout/ tagout program and whoever wrote your specific procedures involved in the inspection process.” The inspection The first agenda item during an inspection – the opening conference – is an important opportunity because, as Whitehorne put it, “this is your last chance to possibly stop or limit that inspection.” After an OSHA compliance officer has described the reason for the inspection, it may be possible to correct a misunderstanding or to manage a narrowly focused inspection. But, as Whitehorne pointed out, “Just be aware that even if OSHA comes on site for an employee complaint or an emphasis program, they can extend the scope if they see open and obvious safety concerns.” During a visit, OSHA compliance officers have the right to interview employees. Whitehorne said that, generally, OSHA will request that a few employees be brought for interviews, which allows plant management to choose employees who are knowledgeable about the plant and its safety programs. OSHA may choose to interview specific individuals, but this is the exception rather than the rule. The interviews will be conducted in a private setting, but employees may ask to have someone from management or one of their peers present. Whitehorne recommended that the facility’s designated inspection contact stay out of earshot but within sight during the interviews, to be available for any questions that may arise. Inspection tips Keep all records for safety programs and training up to date and easily accessible. Give the OSHA inspector just the records requested, but not the entire library of documentation. Provide one program or one training record at a time, as requested. page 26
www.arpminc.com 25
SAFETY page 25
When it comes to OSHA injury logs, Whitehorne reminded manufacturers that OSHA-reportable injuries must be added to a facility’s OSHA log within seven days. “There’s nothing worse than an OSHA inspector coming on site,” said Whitehorne, “and asking for your OSHA logs – typically three to five years’ worth – and you’ve got to run to HR, and they’ve got to backlog it for the last two months to get all that data on them. It’s really important that OSHA log information is accurate and readily available.” Make sure that plant workers are wearing proper PPE while an inspection takes place, and make sure that the inspector wears it too. Have the designated plant contact accompany the inspector for the entire inspection; failing to do this can lead to inspectors writing up violations that might easily have been challenged or explained by the plant contact. “Take good notes,” Whitehorne urged. “If they are taking notes down, don’t be afraid to ask, ‘Hey, what are you taking notes for?’ They should explain to you what they’re doing and why they are noting something.” Also, take the same photos that OSHA does. If they take a photo, take the same one for your own notes. Whitehorne had some key advice for concluding the inspection walk-through. “Most importantly, if there are quick fixes you can make, make them.” Why do it immediately? “It shows good faith – you’re abating a hazard,” he said, “and OSHA will take that into consideration if they even record a violation for that problem. If there is anything you can immediately fix, you want to do that during the walkthrough.” The closing conference During the last agenda item in an inspection – the closing conference – the OSHA compliance officer will explain the violations that will be relayed to the OSHA area director for possible citations. The officer will describe what is expected of the employer if citations or penalties are imposed by the area director, the time period allowed for OSHA to issue citations (6 months), and the options available to the facility once citations have been issued. While the opening conference is the last chance to stop or limit an inspection, the closing conference offers an equally important occasion. “It’s your last opportunity to demonstrate compliance,” said Whitehorne. If, for example, program records that were requested at the start of the visit could not be found but, in the interim, they have been located, get them in front of the inspector during the closing conference. “Abate as much as possible,” advised Whitehorne. “Show everything that’s closed out, as much as possible, before the inspector leaves the facility.”
26 Inside Rubber // 2020 Issue 2
Part 3: OSHA citations
Following an on-site inspection, OSHA has six months to issue citations for violations. In certain cases, OSHA may issue citations but offer an expedited informal settlement agreement with reduced penalty amounts. When citations are received, a manufacturer may accept the citations without argument or may choose to challenge the allegations. In all of these instances, the manufacturer may request an informal conference at the OSHA area office to discuss or challenge allegations and to negotiate penalties, but the conference must take place within 15 days of receiving citations. If, after an informal conference, the manufacturer still feels that a resolution has not been reached, a formal contest process can be initiated. An expedited informal settlement agreement may be offered for first time offenders. “And if you showed good faith during the inspection and all your hazards fell below the willful category,” explained Whitehorne, “they will offer you a 30% reduction immediately on the citations issued. You can sign the agreement and close out that inspection.” In other cases when presented with citations, said Whitehorne, “you can accept the citations, pay them, abate the issues and move on. OSHA will maintain the violation records for five years to reference for potential repeat citations.” But Whitehorne stressed the value of requesting an informal conference. “We always recommend the informal conference, no matter what,” said Whitehorne. “Even if you get the expedited informal settlement, it could still be beneficial to attend the informal conference.” The informal conference “The informal conference,” said Whitehorne, “is truly informal. You walk in, you sit down with your inspector and the area director, and you go through your packet of all the citations that were issued to you.” Who should attend? “We always recommend that you show up as the EHS manager,” said Whitehorne. “But it’s really important to show commitment from higher-ups within the organization, such as the VP of operations or the operations leaders, to demonstrate that everybody in the organization owns this.” Whitehorne recommended arriving with a plan to show that all issues have been abated or, if not abated, what interim controls have been put in place and the long-term plans for abatement. “This is your opportunity to communicate your commitment to safety and health,” said Whitehorne. “Maybe it’s been six months since OSHA has been at your site. You can say, ‘Here are all the things we’ve done in six months. Everything’s been abated. We want to show our good faith efforts to improve workplace safety.’“
There are a number of items that can be negotiated in the informal conference. Regarding an alleged violation, was it valid or not? Has the correct citation number been cited? Other negotiations can include the violation category – serious or nonserious – and the abatement period. The affirmative defense stance An argument that can be used to ask for dismissal of a violation/ citation is the Affirmative Defense Stance – “A claim which, if established by the employer and found to exist by the Compliance Officer, will excuse the employer from a documented citation.” There are three explanations that a manufacturer can cite in arguing affirmative defense: Compliance creates a greater hazard Impossibility or infeasibility of compliance Unpreventable employee or supervisory misconduct, or an “isolated event” Strict criteria must be met in order for these arguments to be successful. Conclusion While an OSHA inspection can be stressful, knowing what to expect during the inspection and conferences goes a long way toward reducing the anxiety level. So does knowing one’s OSHA history, being up to speed on national and local emphasis programs, and being aware of the potential “hot spots” at one’s facility. With knowledge in hand, manufacturers can review their sites to correct any obvious red flag issues, keep documentation complete and current, and plan for who will represent the facility and interact with the compliance officer. Each bit of knowledge, preparation and planning takes a big bite out of the anxiety that can accompany an OSHA inspection. Chris Whitehorne is in his 11th year with US Compliance. He manages and provides EHS services in a multitude of industries, including working with nationwide multi-site companies. Whitehorne is a board certified safety professional – CSP. He holds a Bachelor’s degree in Public Health Studies from Johns Hopkins University and a Master’s of Science in Occupational and Environmental Hygiene from the Johns Hopkins School of Public Health. Whitehorne’s technical expertise is in OSHA general industry requirements including respiratory protection, industrial hygiene, lockout tagout, hazard communication and physical site inspections. He also has extensive experience in managing OSHA inspections, reviewing and investigating serious accidents and completing comprehensive health & safety audits. More information: www.uscompliance.com
WE ARE A PROUD SPONSOR OF
ARPM ACE PROVIDES ARPM= MEMBERS WITH THE FOLLOWING BENEFITS: Free Registration for Rubber Basics Course ($125 Value) 15% Off Standard Testing $200 First Time Customer Credit
CHECK OUT OUR FULL LINE OF CAPABILITIES
ON OUR WEBSITE:
INDUSTRY (D11) developed the new standard (D8300), which provides a test method to determine whether the degree of electrical conductivity is suitable for rubber-grade silica, for example, used as reinforcing filler in modern tires. Specifically, “the new standard provides a procedure for the determination of electrical conductivity in an aqueous suspension of silica,” said ASTM International member Jorge Lacayo, expert for materials evaluation at Continental R&D Tires. High electrical conductivity values are associated with ionic sources due to impurities in precipitated silica. For more information, visit www.astm.org.
Orion Opens New Jersey Technical Service Applications Lab Orion Engineered Carbons S.A., Houston, Texas, a specialty and high-performance carbon black supplier, has officially opened its new technical service applications laboratory in New Jersey. The facility will initially serve coatings and ink customers and drive innovation to advance carbon black technology. With stateof the-art equipment, the lab currently is conducting coatings and inks application projects that can optimize raw material use, increase revenue and improve profitability. The laboratory also enables customers to accelerate their research and development in formulations containing carbon black. For more information, visit www.orioncarbons.com.
Specialty Silicone Clarifies REACH Compliance and Silicone Rubber Silicone compound manufacturer Specialty Silicone Products, Inc., Ballston Spa, New York, recently provided its customers with information regarding the European Union regulation REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), its associated Candidate List of Substances of Very High Concern (SVHC) and listed substances that are of particular interest to rubber manufacturers. Three of the listed cyclics on the candidate list are used as silicone polymer building blocks; Octamethylcyclotetrasiloxane (D4) – CAS 556-672, Decamethylcyclopentasiloxane (D5) – CAS 541-02-6 and Dodecamethylcyclohexasiloxane (D6) – CAS 540-97-6. Specialty Silicone offers comprehensive information regarding this topic, including a description of REACH, information about cyclics, why the European Chemicals Agency (ECHA) is concerned about them, whether cyclics are dangerous and more. For more information, visit www.sspinc.com/silicones_that_work/151/ REACH-Compliance-and-Silicone-Rubber/.
New ASTM International Rubber Standard Aims to Improve Silica Quality A new standard from ASTM International, W. Conshohocken, Pennsylvania, aims to improve the quality of precipitated silica, which is used as a filler ingredient for rubber. ASTM International’s rubber and rubber-like materials committee 28 Inside Rubber // 2020 Issue 2
Americhem Launches New Website Americhem, Cuyahoga Falls, Ohio, a designer and manufacturer of custom color masterbatch, functional additives, engineered compounds and performance technologies, has released a new website. The website is designed to provide a smooth, cohesive and enjoyable new experience. With Americhem’s recent growth – which included multiple acquisitions, plant expansions and product offerings – a new website was in order to clearly state all that the company has to offer from a global perspective. Now streamlined to feature product and service offerings from all of Americhem’s business units, the website will guide users to locate polymeric solutions in fibers, automotive, healthcare, building & construction, packaging and more. It offers ease of navigation, examples of work, cutting-edge technologies and an up-to-date blog. For more information, visit www.americhem.com.
Spartech Joins in Fight Against COVID-19 With Donation of Materials Thanks to a donation by St. Louis, Missouri-based plastics manufacturer Spartech, a Wisconsin-based company has been able to produce 20,000 face shields for first responders and healthcare workers fighting the COVID-19 pandemic. Spartech made the donation of essential plastic materials to Lake View Industries, a maker of custom rubber, plastic and foam parts. The company has re-purposed itself after receiving a request from local government officials to make face shields, which Lake View then donated to area first responders and healthcare workers. Todd Niemuth, market manager-healthcare for Spartech, learned of the request from a customer who told him about Lake View’s need for materials. Spartech immediately decided to make a material donation and shipped the donated order in three days. For more information, visit www.spartech.com.
H.M. Royal Hires Stanek as Central Regional Manager H.M. Royal, Trenton, New Jersey, a provider of raw materials and specialty chemicals, has announced that Jack Stanek has taken the role of central regional manager. Stanek will be responsible for sales support and management in the central United States, supporting existing sales managers in the territory and identifying new opportunities to expand customer and supplier bases. Stanek worked most recently at Eastman Chemical Company as the account manager for chemical intermediates. Prior to Eastman, he held positions at Nouryon (formerly AkzoNobel Polymer Chemistry). For more information, visit www.hmroyal.com.
Shin-Estu Silicones Hires McCarty and Toth Shin-Etsu Silicones of America, Inc., Akron, Ohio, a subsidiary of Shin-Etsu Chemical Co. Ltd., Japan, and a supplier of silicone materials, announced the hiring of Tim McCarty, regional sales manager-RTV and TIM, and Rachel Toth, inside sales representative-RTV and TIM. McCarty will focus on the automotive, electronics and assembly markets. He will be based out of Detroit to cultivate Tier One and direct OEM supplier accounts in North America. Based in-house at SESA’s Akron headquarters, Rachel Toth will focus on cultivating new and existing prospects. Her territory is unlimited in the US for these accounts. For more information, visit www.shinetsusilicones.com.
ASTM International Launches New Rubber Sustainability Group The rubber committee of West Conshohocken, Pennsylvaniabased ASTM International has approved a new rubber sustainability subcommittee to develop standardized terms, test methods, specifications, practices and classifications that support sustainability of rubber, rubber products, systems and services. Topics will include rubber recycling, devulcanization of rubber, and biodegradation of rubber and micro-rubber. Some ASTM International rubber standards will transfer to the subcommittee to meet the United Nations’ Sustainable Development Goal #12 on responsible production and consumption. These include Classification for Rubber Compounding MaterialsRecycled Vulcanizate Rubber (D5603), Test Method for Rubber Compounding Materials-Determination of Particle Size Distribution of Recycled Vulcanizate Particulate Rubber (D5644), Test Method for Determination of Percent Devulcanization of Crumb Rubber Based on Crosslink Density (D6814) and Practice for Rubber Compounding Materials–Evaluation of Recycled Vulcanizate Particulate Rubber (D8268). For more information, visit www.astm.org. ď ľ
advantage Practice Advice for the Rubber Industry Ice Miller focuses on meeting the needs of our clients quickly, efficiently and cost-effectively. Ice Miller attorneys with rubber industry experience can assist with your greatest legal challenges. Contact Josef Keglewitsch at 614-462-2279 or josef.keglewitsch@icemiller.com for more information.
300+ lawyers in Columbus and other offices icemiller.com
High Quality Producer of Zinc Oxide When you need a world-class source for zinc oxide powder or pellets, think Zochem. As the leading North American producer, with the most modern production facilities, we can satisfy any production requirement.
x 1LQH PXႉ H ³)UHQFK 3URFHVV´ IXUQDFHV x Very large North America manufacturing capacity x The longest serving producer of zinc oxide in North America since 1934
x Management team has over 250 years of zinc experience x ,62 &HUWLÂż HG x +LJK DQG /RZ 6XUIDFH $UHD +LJK 3XULW\ 863 DQG 3HOOHWV x Closer to you, with 15 North American distributors and 35 warehouses
x Two plants for supply security We are ready to meet all your zinc oxide needs! Contact Zochem today.
=RFKHP R௺ HUV $530 PHPEHUV IUHH FRQVXOWDWLRQ
www.arpminc.com 29
MARKETS
Growing Population and Disease Trends Lead to Medical Elastomer Growth By Smithers
D
evices made from medical elastomers will be key to facing a number of growing challenges taking place in the world today and in the future. A new report by Smithers, The Future of Medical Elastomers to 2025, details how these dynamic materials will impact growing world population and the threat of contagious diseases. The rapid increase in the geriatric population also demands serious investments in medical institutions, resulting in growing use of medical elastomers in medical devices. Stricter health regulations, in particular on the use of polymers in medical applications, also is driving activity.
Growth rates and market share The global market for medical elastomers was around Chart 1. The global market for medical elastomers, by elastomer, 723.5 thousand metric tonnes in 2015. It is estimated 2020 (%) Source: Smithers at 958.2 thousand metric tonnes in 2020 and is forecast at 1284.4 thousand in 2025. With a CAGR of 5.9%, medical elastomers are critical to the fight against infectious diseases. Regulation drives changes in end-use Components produced from them are sterilized easily and allow Medical elastomer end uses showing exceptional growth are for regular sterilization without major loss of properties. catheters, surgical tubing, IV set components, medical bags, medical tubing (other than surgical tubing), syringe stoppers, The current market breakdown for medical elastomers is shown bottle stoppers and seals, and vial stoppers. This is as a result in Chart 1. of TPEs (mainly TPS) and silicone elastomers replacing such materials as plasticized PVC and vulcanized elastomers. The forecast growth of styrene-based thermoplastic elastomers (TPS) during the 2019 to 2025 time period is noteworthy and The new European Union medical device regulation (MDR) is a shows a gain in market share from 25.8% to 30.3%. The CAGR driving force for these changes. The regulation goes into effect in of TPS for 2020 to 2025 is forecast at 9.5%. TPC and TPA show May 2020. Under it, the following changes are mandatory: an excellent CAGR (for TPC of 11.4% and for TPA 14.0%), but All substances used in medical devices must be registered, from much lower bases, hence their slight forecast regression vs. although substances used for higher risk medical devices their 2015 to 2020 CAGR. (low Class 1) may not require registration. Substances of very high concern (SVHC) will be limited All other medical elastomers, beside TPEs, will lose market or banned. share, but with an overall CAGR for all medical elastomers Substances considered to be persistently bio-accumulative of 6.0% over the period 2020 to 2025, this can be considered and toxic (PBT) are to be banned. a healthy achievement. CAGR for 2019 to 2025 for TPEs is Compliance with ISO 13485 likely will be compulsory for forecast at 8.8%, but for synthetic elastomers at only 4.0%. medical device manufacturers. Natural rubber trails, with a 2020 to 2025 CAGR of only 3.0%. Product traceability will become mandatory. 30 Inside Rubber // 2020 Issue 2
CREATING TOMORROW’S SOLUTIONS
Biocompatibility and biological evaluations will become increasingly necessary.
Regional developments Over the next five years, North America and the Asia-Pacific region will increase their market shares at the expense of Europe and other regions. (See Chart 2.) North America – in particular, the US – has the infrastructure to maintain and enlarge its position in medical device production using medical elastomers.
RELIABILITY
QUALITY
SIL M IX
PRODUCT PORTFOLIO
Providing solutions to fit your needs with our high quality, custom-made silicone compounds. SILMIX® CALIFORNIA 13910 Oaks Ave., Chino, CA 91710 SILMIX® OHIO 2215 International Pkwy., North Canton, OH 44720 TEL: +1 833 474 5649 (833 4 SILMIX)
@wackerchemcorp
Chart 2. The market for medical elastomers, by region, 2025 (%) Source: Smithers
The Asia-Pacific region will overtake Europe, due to its growing population and its financial potential to invest heavily in new technologies.
Medical elastomer use in major countries When looking at individual countries, the US will lead, gaining market share from 27% in 2015 to 28.2% in 2020 and expanding to 29.4% in 2025. Its forecast CAGR of 6.9% from 2020 to 2025 is likely to keep it in the lead for several years. India, starting from a very low base, will come in second, moving from a market share of only 1.2% in 2015 to 2.2% in 2020, and to 3.2% in 2025. At 16.8%, it is forecast to have the highest 2015 to 2025 CAGR of all countries in this report. China is third, gaining market share position from 22.2% in 2020 to 22.9% in 2025. It has a lower forecast 2020 to 2025 CAGR than either the US or India, but it has a very strong financial power base. Germany leads in Europe, but it has a relatively low forecast 2020 to 2025 CAGR of only 5.1%, which will reduce its global market share of 11.9% to 11.2% in 2025.
Free ARPM Member Benefit Save on small package and freight shipping with the ARPM Shipping Program and PartnerShip® PartnerShip.com/ARPM Enter 8333 in the promo code field
More information: https://www.smithers.com/services/marketreports/materials/future-of-medical-elastomers-to-2025 www.arpminc.com 31
MANAGEMENT
How to Manage Employees You Can’t See By Jan Makela, executive coach and author Note from the editor: COVID-19 has impacted workplaces across the world, and many employees are working from home. Here are four keys to implementing a work-from-home system and methods to best manage your remote employees.
1. Set clear expectations Many managers worry that remote employees won’t work hard without supervision, but studies consistently show that remote employees are more productive than their office-based counterparts. When there are productivity problems, it’s most often due to unclear expectations. Properly define what success looks like in the operational context of your organization. Have a frank conversation, and discuss the definition of “success” for a particular project. Set firm goals, identify the required outcome and then establish a timeline for specific milestones. Check in regularly with remote staff, monitor progress and ensure that they are moving toward their goal in a timely fashion. Investing time in the planning stage will pay off in productivity.
2. Relationships matter Building a good relationship with your remote employees ensures that they don’t feel isolated from the team. It also sets the foundation for good management. In a shared environment, relationship-building happens around the water cooler, in hallways, and before and after meetings. Without physical proximity, new avenues for relationship-building need to be used. Video calls can build rapport by allowing colleagues to visually connect. It’s more personal than a voice on the phone or text in an email. Video calls offer another advantage… callers are more engaged and less likely to be distracted by emails or social media. Use instant messaging or video chat applications for the types of interactions you have in the hallways with office-based staff. Ask
“
WITHOUT PHYSICAL PROXIMITY, NEW AVENUES FOR RELATIONSHIP-BUILDING NEED TO BE USED. 32 Inside Rubber // 2020 Issue 2
”
how their day is going, send a link to a helpful article or share a joke. You’re not going to just run into your remote employees, so connections require deliberate effort. Set reminders in your calendar to make sure informal check-ins don’t get overlooked. Encourage a couple of minutes of personal chit-chat at the beginning of calls. Ask about their weekend, family or hobbies. Follow up on their comments from previous calls.
3. Be available Remote employees can’t stop by your desk when they need a quick answer, so it’s important you set aside time to be available to them. Respond to messages promptly so you don’t hinder their productivity. If you can’t fully address a question right away, let them know you’re working on it. Schedule regular check-in times. Your remote staff can save their non-urgent questions for your regular meeting rather than sending multiple emails.
4. Communication Communication takes extra effort when working remotely. When talking with someone in person, there are many subtle cues that add to the message. Facial expressions, gestures, body language and tone of voice all help to interpret the speaker’s meaning. Those cues often are missing when communicating remotely. Be direct. Clearly state what you need and when you need it. This reduces the need for follow-up messages to clarify the request. Share your progress. When you’re not in the same office, your colleagues don’t know what you’re working on. Likewise, let your colleagues know what barriers you’re encountering and what help you need to address those barriers. When implementing a work-from-home arrangement, it’s imperative to follow these guidelines to best position your employee – and the company – for success. Jan Makela is an executive coach, speaker and best-selling author of Cracking the Code to Success and Be the Manager People Won’t Leave, for which he received the 2017 Quilly Award. Makela has a long and successful history of working with companies to ensure quality hiring and training practices. His specialty revolves around strength-based leadership development, with a particular focus on working with senior and mid-level executives, business owners and professionals. More information: www.StrengthBasedLeadership.net
WE’RE ON YOUR TEAM.
MATERIAL CHEMISTRY
|
PHYSICAL PROPERTIES
|
PRODUCT TESTING
|
TECHNICAL CONSULTING
You can always count on our team to conduct your testing programs with care and precision so you can keep your new product development moving forward in a rapidly evolving environment. Our experts have ƥîŒĚŠ ƙĿijŠĿǶČîŠƥ ĺĚîŕƥĺ îŠē ƙîIJĚƥNj ŞĚîƙƭƑĚƙ îƥ îŕŕ ūƭƑ ŕîċūƑîƥūƑĿĚƙ DžūƑŕēDžĿēĚ ƙū ƥĺîƥ DžĚ ČîŠ ČūŠƥĿŠƭĚ ƥū support you. Contact us today to discuss your testing needs. SMITHERS 425 West Market Street Akron, OH 44303 330-762-7441
WWW.SMITHERS.COM
AD INDEX
EVENTS CALENDAR JULY 22-24 2020 Young Professionals Leadership Experience, Cleveland, OH
OCTOBER 20-22 Benchmarking & Best Practices Conference, Indianapolis, IN
NOVEMBER 11-12 2020 EHS Summit, Cleveland Airport Marriott, Cleveland, OH
ACE Products & Consulting LLC ................................. 27 www.aceprodcon.com Akron Rubber Development Laboratory, Inc. (ARDL)................................................. 8 www.ardl.com ARPM .......................................................................... 21 www.arpminc.com ARPM 180 Skills .......................................................... 22 www.180skills.com/arpm Blair Rubber Company ................................................ 13 www.blairrubber.com Chardon Custom Polymers ........................................... 9 www.chardoncp.com ChemTrend.................................................................. 17 www.chemtrend.com Eagle Elastomer Inc. ..................................................... 5 www.eagleelastomer.com Grainger....................................................................... 35 www.grainger.com IceMiller ....................................................................... 29 www.icemiller.com IQMS ........................................................................... 15 www.iqms.com Maplan ........................................................................... 2 www.maplan.at PartnerShip.................................................................. 31 www.partnership.com/ARPM
For the most up-to-date information and to register for events, visit www.arpminc.com/events.
REP Corp. ................................................................... 18 www.repinjection.com Rubber Division, ACS .................................................. 19 www.rubberiec.org Sigmasoft.......................................................Back Cover www.3dsigma.com Smithers ...................................................................... 33 www.smithers.com Stoner Molding Solutions............................................. 12 www.stonermolding.com/A499rubber Wacker ........................................................................ 31 www.silmix.com Zochem........................................................................ 29 www.zochem.com
34 Inside Rubber // 2020 Issue 2
SAVE WITH GRAINGER DISCOUNT PROGRAM AVAILABLE TO ARPM MEMBERS
tŝƚŚ ZWD ŵĞŵďĞƌƐŚŝƉ͕ ƌƵďďĞƌ ŵĂŶƵĨĂĐƚƵƌĞƌƐ ŐĞƚ ĞdžĐůƵƐŝǀĞ ĂĐĐĞƐƐ ƚŽ 'ƌĂŝŶŐĞƌ͛Ɛ ĚŝƐĐŽƵŶƚ ƉƌŽŐƌĂŵ͕ ǁŚŝĐŚ ŝŶĐůƵĚĞƐ ƐŝŐŶŝĮĐĂŶƚ ƐĂǀŝŶŐƐ ŽŶ ŽǀĞƌ ϮϬ ĐĂƚĞŐŽƌŝĞƐ͘
/ŵƉĂĐƚ ƚŚĞ ďŽƩŽŵ ůŝŶĞ ƚŽĚĂLJ ďLJ ƐŚŽƉƉŝŶŐ ĞůŝŐŝďůĞ ĐĂƚĞŐŽƌŝĞƐ͕ ŝŶĐůƵĚŝŶŐ͗ • • • • • •
Motors Safety - People Safety - Facility Safety - Footwear Electrical Power Transmission
• • • • • •
Hand Tools Material Handling Abrasives >ƵďƌŝĐĂƟŽŶ Machining Welding
• • • • • •
Power Tools Cleaning - Consumables Cleaning - Other Fasteners Hardware ...and more!
ARPM MEMBERS RECEIVE A DISCOUNT OFF ALL OTHER GRAINGER CATALOG AND ONLINE PRODUCTS, AS WELL AS FREE SHIPPING (RESTRICTIONS APPLY).
Ăůů ƚŚĞ ZWD ŽĸĐĞƐ Ăƚ ϯϭϳ͘ϴϲϯ͘ϰϬϳϮ ƚŽ ůĞĂƌŶ ŵŽƌĞ ĂďŽƵƚ 'ƌĂŝŶŐĞƌ ĚŝƐĐŽƵŶƚƐ ĂǀĂŝůĂďůĞ ƚŽ ZWD ŵĞŵďĞƌƐ͘
KƚŚĞƌ ĨƌĞŝŐŚƚ ĐŚĂƌŐĞƐ ǁŝůů ďĞ ŝŶĐƵƌƌĞĚ ĨŽƌ ƐƵĐŚ ƐĞƌǀŝĐĞƐ ĂƐ ĞdžƉĞĚŝƚĞĚ ĚĞůŝǀĞƌLJ͕ Ăŝƌ ĨƌĞŝŐŚƚ͕ ĨƌĞŝŐŚƚ ĐŽůůĞĐƚ͕ ƐŽƵƌĐĞĚ ŽƌĚĞƌƐ͕ ŚĂnjĂƌĚŽƵƐ ŵĂƚĞƌŝĂůƐ͕ ďƵLJĞƌ͛Ɛ ĐĂƌƌŝĞƌ͕ ƐŚŝƉŵĞŶƚƐ ŽƵƚƐŝĚĞ ƚŚĞ ĐŽŶƟŐƵŽƵƐ h͘^͘ Žƌ ŽƚŚĞƌ ƐƉĞĐŝĂů ŚĂŶĚůŝŶŐ ďLJ ƚŚĞ ĐĂƌƌŝĞƌ͘
Experience that brings your vision to life.
Providing technical and engineering solutions to OEMs, mold makers and injection molders in the plastic and rubber industries.
SIGMASOFTÂŽ Virtual Molding
SIGMA academy
Customer Development
Software technology that
Software training and continuous
On-site team planning and
accurately replicates the
education that helps professionals
development with clear objectives,
injection molding process to
understand topics like defect
measurables and continuous technical
streamline production and design
avoidance and process optimization
assistance to Fnsure your goals are met
Ask SIGMAÂŽ to help achieve your injection molding goals. 847.558.5600 | contact@3dsigma.com