OUTLOOK

MOLD BUILDERS FEEL SUPPLY CHAIN DISRUPTIONS

by Liz Stevens, writer, The American Mold Builder

As 2022 gets underway, mold builders are facing many pressures. An increased demand for products is crashing head-on into the lingering worker shortage and a crippling supply chain crunch. With the current tight material supply and rising prices, logistics madness and a booming market for consumer products, it is no surprise that mold builders have lost sleep wondering how suppliers got into this mess, how mold building is currently being impacted and when the supply chain might return to normal.

HOW DID THE SUPPLY CHAIN JAM TRANSPIRE?

The supply chain dilemma stems from several factors – some from before the pandemic began. Prices for imported materials already had risen in 2018 due to the previous administration’s trade and tariff policies. Then COVID-19 hit, sending shock waves that resulted in factory slowdowns or shutdowns in China that spread to the US and the rest of the world.

The start of the COVID-19 crush affected industry suppliers but not in the ways that the suppliers expected. In the Spring of 2020, suppliers faced an entirely new and unpredictable future; many of them feared that the entire US economy would shut down due to the dramatic “shelter in place” orders issued in many states. Suppliers scrambled to sell what stock they had on hand and then radically scaled back their production. But then, at the start of the summer, suppliers were shocked by the unexpected: consumer demand surged rather than tanked. The pandemic caused a surge in demand for medicaloriented products like ventilators, PPE and coronavirus test kits. But the scope of the demand surge was much more widespread than this – nervous citizens began buying up all sorts of household supplies. Then, with the pandemic hobbling activities and travel severely restricted, home-bound Americans began a consumables and home improvement shopping spree that upped traffic along global trade routes.

At the start of 2021, when industry suppliers thought that the balance of demand and supply finally had evened out, along came unprecedented winter storms in the US, including a disastrous deep freeze in Texas that crippled petrochemical plants. The still-surging import traffic flow then was hit by a whammy as cargo shipping was upended after the ship Ever Given wedged itself in the Suez Canal. Meanwhile, the US buying spree continued and the incoming goods – on ships finally able to navigate the Canal – began overwhelming US ports, rail transport and trucking, all of which also impacted the import and delivery of materials to manufacturers. As of January 2022, the Omicron variant of COVID-19 began blanketing the nation with skyrocketing contagiousness but milder disease than the Delta variant. And everyone, in every industry, in every nation, was waiting to see what would happen next.

THE STATE OF THE INDUSTRY For a look at the current situation and some helpful suggestions, The American Mold Builder talked to

representatives from the tooling industry. Tony Brodzeller, sales, Mastip Inc., Jackson, Wisconsin, offered insight from the perspective of a hot runner equipment manufacturer. Andrew Davis, vice president of supply chain, Swiss Steel USA Inc., Carol Stream, Illinois, contributed an assessment of how mold builders’ steel suppliers have been affected. Harry Centa, senior program manager, PartnerShip, Oberlin, Ohio, weighed in from a company that offers all facets of shipping and logistics.

According to Tony Brodzeller, the supply chain issue is affecting Mastip in three distinct areas as it pertains to supplying hot runners, manifolds and other components to mold builders. “Material availability, especially round stock for nozzle bodies and bar stock for manifolds, is an area we constantly are monitoring,” Brodzeller said. “We also are seeing that suppliers for outsourced items are experiencing availability issues.” Brodzeller also pointed to the shipping delays that are a problem vexing every corner of every industry.

“In response to these challenges,” said Brodzeller, “we have been very proactive with our supplier base and have stayed well ahead of any material delays. Our hot runner components primarily use fixed-size stock, so we looked at previous order history and drastically increased our supply of material on hand. Because we started this process early – in the second quarter of 2020 – we had no impact to our customer lead times.” Like many manufacturers, Mastip has invested in expanding its manufacturing capability to minimize outsourcing, thereby reducing dependence on suppliers that may be impacted by future supply chain dilemmas and reducing the associated shipping issues. “In addition,” said Brodzeller, “we have evaluated our entire supply chain and made sure we have ‘depth on our bench’ for reliable second- and third-source solutions if needed. To combat shipping delays, we have worked to improve our lead times to offset any slowdowns.”

At Swiss Steel, Andrew Davis sees an entire supply chain affected by the pandemic and a slew of other factors. “The pandemic’s most visible effect – sidelining so many workers – has a top-to-bottom impact,” said Davis. “Staffing shortages affect not only our suppliers as a steel distributor; the shortages are felt in the logistics companies importing products, among the customs agents who inspect imports, and in the domestic trucking companies that deliver to our warehouse and then outbound to our customers.”

During an ongoing stretch of increased demand for steel, Davis highlighted the logistics challenges. “From the international standpoint,” Davis said, “shipping companies have changed their schedules to accommodate changes in demand, and ocean containers are less available and more expensive.” Davis cited the Suez Canal blockage as one of the impacts in the past year that affected delivery times and container availability, followed by the continuing bottleneck at the ports as everyone tries to get more product through the same number of ports with fewer workers. “The logistics headaches domestically stem from the ongoing truck driver shortage,” said Davis, “and skyrocketing demand for transportation, which has created a trucker’s market. Trucking companies have become more selective in their routings, and we have experienced increased damage to freight and delayed deliveries.”

Swiss Steel has responded by working with its existing carriers to find solutions and by expanding its transportation carrier base, brainstorming with suppliers and identifying alternate suppliers. “Another thing that we are doing is planning further in advance for our transportation,” said Davis. “That is primarily for our ocean transportation. We know material is going to be

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available, so we pre-book the container availability so that we can make sure that we have material coming in.”

PartnerShip works with associations such as the American Mold Builders Association (AMBA) to help customers save time and money in all facets of shipping and logistics, including LTL freight, truckload, tradeshow, expedited and small-package shipping. “With the carrier capacity crunch at an all-time high,” said Harry Centa, “it is important for both shippers and third-party logistics providers to take an honest look at their logistics operations. It’s key to conduct audits that evaluate both service level and cost.” Centa advised that smart shippers are strengthening their relationships with existing freight carriers and exploring alternatives to supplement their current coverage. “It’s critical to build time and flexibility into one’s shipping operations,” Centa said, “allowing for a cushion in the shipping budget, while looking critically at where adjustments can be made to offset overspending.”

PartnerShip is responding to today’s challenges by offering a variety of customized shipping solutions. Allowing PartnerShip to help AMBA members spend less on their shipping, regardless of whether it is a pallet or a package. “Through exclusive FedEx discounts available through their AMBA membership,” said Centa, “members pay less for the service they rely on for their small package shipping. PartnerShip helps members access better freight rates as well, by leveraging the relationships we have with our trusted freight carriers and passing on those savings.” Having more options available equates to increased opportunities to get shipments covered, at an affordable price.

PREDICTING THE FUTURE Brodzeller can’t predict the future, but the need to shift based on conditions still exists. “The supply chain situation has been ever evolving,” said Brodzeller. “We will continue to monitor the developments and adjust as needed.”

Centa anticipated that the future will remain rocky, making the present a good time to optimize shipping and logistics. “At this time, it looks as if the carrier capacity crunch will be an ongoing challenge for shippers,” said Centa. “Carriers now have the right to be picky, and prices may continue to rise as the crunch continues.” He advised that though there are fewer available trucks, there are steps that businesses can take to lessen the impact of the crisis.

“Working with a logistics provider,” he said, “can expand a company’s current network of carriers. Access to exclusive discounts available through the AMBA Shipping Program also can help members spend less on small package shipping, allowing some breathing room for freight volatility.” The freight experts at PartnerShip also can identify areas where overspending is taking place, such as with accessorials or other unexpected fees. “As supply and demand continue to shift,” said Centa, “it is extra important to have a team of experts available to properly plan a company’s logistics strategy.”

When asked about his prediction for the future of the steel and mold building supply chain, Davis was hopeful. “We are optimistic that there will be improvements,” he said. And the timeline for those improvements? “That continues to be the tricky part,” he added.

Even as the crystal ball remains cloudy, the mold builders that position themselves to expect the unexpected and equip themselves to adapt nimbly will have a stronger hand in how their futures play out.

[1] AMBA LAUNCHES VIRTUAL PLANT TOUR WORKSHOP

AMBA has long believed in the power of touring another mold manufacturing facility to learn, improve and grow. In this tradition, AMBA is excited to launch its first virtual plant tour workshop at Dramco Tool Co., March 8, 2022, where attendees will tour a member facility, share best practices, problem-solve with peers and improve operations – all without leaving the office. From its facility in Grand Island, Nebraska, Dramco Tool team members will share the following: • The company’s “strategic path to lean” • The implementation of machine set-up efficiencies • The company’s pursuit of a competitive advantage in the marketplace Learn more and register at www.amba.org/Events.

[2] KEY 2022 AMBA BENCHMARKING REPORTS AVAILABLE Three key benchmarking initiatives that will help mold builders and suppliers alike prepare for 2022 now are available for purchase. The 2021/2022 AMBA Wage and Salary Report features high, low and average rates of pay across over 50 job functions commonly found in mold building (see article on page 16), while the 2022 AMBA Business Forecast Report provides an in-depth analysis of past, current and anticipated business conditions. The AMBA also has announced the release of its newest benchmarking initiative – AMBA Employee Attraction and Hiring Playbook – A Best Practices Guide – which features best practices in candidate evaluation, hiring and onboarding gathered from the AMBA member community. Additionally, the playbook features key takeaways and industry insights. Visit www.AMBA.org/ publications/browse to review each publication, access pricing and purchase.

VIRTUAL WORKSHOP: ENGAGEMENT TACTICS FOR EFFECTIVE RECRUITMENT AND RETENTION March 15 and March 22, 11am – 1pm EST To help members address the fast-growing skills gap and labor challenges faced by the mold manufacturing 1 2

industry, AMBA has worked with its Workforce Development Task Force to identify the focus for its newest opportunity – a two-part virtual workshop on identifying and implementing engagement tactics to help recruit and retain high-performing employees. Split into two, two-hour sessions, this professionally facilitated event will explore the six phases of the employee value stream and identify the tactics that will enable owners, executives, department heads, human resource managers and team leads to more effectively attract and retain top talent for long term. Participants and teams will walk away with effective strategies that, when employed during the employee engagement process, will help organizations • build a cohesive brand that attracts top talent through the initial “plan and align” phase, • understand how to develop effective recruitment and hiring strategies for today’s candidate-driven market, • discover how to manage current employees productively so that their engagement leads to further recruitment and future candidate referral and • learn proven ways to empower new and existing employees for higher retention and existing employees.

Visit www.amba.org for more details and to register.

SPONSORSHIP OPPORTUNITIES NOW AVAILABLE FOR AMBA CONFERENCE 2022 Sponsorship opportunities at AMBA Conference 2022: Shifting the View (May 11-13, Itasca, Illinois) now are available to industry suppliers. Secure a place amongst top-tier suppliers and mold manufacturers at this year’s event at The Westin Chicago Northwest, where attendees will gather to take a fresh look at how seemingly persistent challenges can become opportunities for growth and positive change. Mold builder registration is now open. For additional event details, visit page 8 or register at www.ambaconference.com.

AMBA Workforce Development Guide Series

EMPLOYEE ATTRACTION AND RETENTION

AN AMBA BEST PRACTICES GUIDE

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HEALTH AND BENEFITS SURVEY NOW OPEN AMBA has launched its 2022 Health and Benefits Survey, which will gather data related to health and benefits packages offered to employees by mold manufacturers across the US. Collected data will include the following: • Company cost and employee participation • Strategies to control cost • Current plans offered to employees • Additional benefits and retirement programs

Compiled data and results will be shared at no cost to participants. To participate and gain access to the final report, contact Rachael Pfenninger at rpfenninger@amba.org.

[3] AMBA MOLD BUILDER AND TOOLING TRAILBLAZER OF THE YEAR AWARDS – NOMINATIONS OPEN Nominations for AMBA’s Mold Builder of the Year and Tooling Trailblazer of the Year Awards now are being accepted. AMBA members may nominate themselves or a peer, and nominees should be from member companies in good standing. Award recipients will be recognized at the AMBA Conference 2022 in Itasca, Illinois, May 1113, at The Westin Chicago Northwest, and will receive a prestigious award and a $5,000 scholarship grant from Progressive Components to be given to the educational institution, project or initiative of their choice. To submit a nomination, contact Susan Denzio at sdenzio@amba.org.

EXCLUSIVE C-SUITE DIALOGUE CONTINUES FOR AMBA EXECUTIVES The sharing of challenges and best practices continues in 2022 with AMBA’s quarterly C-Suite Dialogue. This conversation – exclusively for C-suite mold building executives at AMBA member companies – focuses on a single topic or challenge identified by industry leaders and owners. Attendance is limited to the first 15 registrants. The next session will take place in March and will address the topic of customer/business management amidst current industry challenges. To learn more and secure a seat during the next discussion, email Rachael Pfenninger at rpfenninger@amba.org.

NEW MEMBERS

Rapid Mold Solutions

4820 Pacific Ave. Erie, Pennsylvania 16506 Barry St. Peter, sales manager Phone: 814.833.2721 Email: bstpeter@adlertooling.com

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Founded in 1999, Rapid Mold Solutions, Inc. (RMS) is an innovative, technologically sophisticated, full-service tool and die manufacturer and high-speed/high-precision machine shop. RMS services a diverse customer base in a broad range of industries and offers in-house tool design and domestic project management of offshore projects, complete tool evaluations and tooling consults, mold repair and alteration services, and an array of machining and molding services.

EVCO Plastics

100 W. North St. De Forest, Wisconsin 53532 Jim Sensenbrenner, corporate tooling manager Phone: 608.846.6000 Email: jim_s@evcoplastics.com

Founded in 1964, EVCO Plastics is a leading plastics manufacturing company with 10 manufacturing facilities strategically located throughout the world. With an emphasis on design for manufacturability, strategic engineering and innovative technology, EVCO is recognized as a global leader in custom plastic injection molding and mold building. EVCO partners with its customers from concept through mold construction to full-scale production with presses ranging from 28 to 3,500 tons.

Prime Manufacturing Technologies

8735 Bollman Pl. Savage, Maryland 20763 Luke Chow, president Phone: 301.604.0900 Email: lchow@primemfgtech.com

For over 27 years, Prime Manufacturing Technologies, Inc., has offered cost-effective, innovative manufacturing alternatives geared to streamlining and improving customer product needs. Prime manufactures plastic, metal and composite products, parts and sub-assemblies for commercial, industrial and military applications. The company’s primary goal is to offer great value, with an emphasis on quality, on-time delivery and exceptional customer service. The entire team works to bring the most flexible and cost-effective manufacturing alternatives to its clients.

Tolerance Tool

2263 McKnight Rd. N Bay 11 North St. Paul, Minnesota 55109 Greg Kolbeck, general manager Phone: 651.770.5918 Email: gkolbeck@tolerancetool.com

Tolerance Tool, LLC is an innovative mold manufacturing company that is committed to meeting the high demands of today’s moldmaking industry. Tolerance Tool understands its customers are the most important aspect to running a successful business. The company’s goal is to exceed its customers’ needs by delivering quality molds in shorter lead times at a competitive price. Visit Tolerance Tool’s website to see how it accomplishes these goals and creates customer satisfaction.

M.C. Molds

125 Industrial Park Dr. Williamston, Michigan 48895 Joe Palazzolo, general manager Phone: 517.655.5482 Email: joep@mcmolds.com

M.C. Molds, Inc., incorporated in 1984, is a builder of blow molds and custom tooling serving the plastics industry, and prides itself on being an expert in bottle and mold design, moldmaking, and mold repair and refurbishment. Utilizing the team’s experience, the company combines advanced blow mold and metal working technologies with design and craftsmanship to provide its customers with the most technologically advanced molds, exceptional service, quality, reduced lead times and outstanding tool life.

NEW PARTNERS

Bales Metal Surface Solutions

2824 Hitchcock Ave. Downers Grove, Illinois 60515 Rich Wozniak, technical service manager Phone: 630.852.4665 Email: richw@balesusa.com Website: www.balesusa.com

Since 1978, Bales Metal Surface Solutions has provided incomparable surface finishes and tight tolerances, combined with a proud legacy of integrity and innovation. Bales fuses science and craftsmanship in all it does, by constantly expanding its capabilities and array of proprietary products and services. Whether in person or virtually, the Bales Team is poised and ready to solve any molding challenge.