The Mheda Journal

For more than a couple of years now, the value and validity of “going green” has been going on in the material handling industry. Some people say going green is a moral obligation to protect the environment. Others say it’s no more than a selling point to make people look eco-conscious but really doesn’t mean anything. For several years, the movement to go green in material handling has been the buzzword.

Scott Lee

However, according to Scott Lee, president of Conveyor Solutions in Schaumburg, Illinois, the movement is finally starting to get some traction. The biggest way to show customers savings from going green is through what Lee refers to as energy reduction systems. I’ll let him explain.

“It’s not terribly new—the government has been doing it forever—but it really wasn’t pushed out there in commercial world. We now sell customers on the idea of turning off their equipment when they’re not using it. Most customers start up their conveyor system when they walk in the building but don’t start using it for an hour or two. Then it’s like a bell curve, meaning that it’s super busy in the middle of the day and then almost empty at the end of the day. We shut off the parts not being used. It extends the life of the equipment and uses less energy, so there are huge gains to be made on energy reduction in the conveyor industry.”

In some cases, he says, those savings can result in a lightning-quick payback of just one to two months, depending on the system, of course. Thanks, Scott, for your insights. Pretty amazing stuff. So, once again, I’ll throw this question out there: is the green movement in material handling here to stay? What do you think?

While I was getting ready for work this morning, I happened upon The Early Show on CBS. Their correspondent was in a FedEx distribution center with boxes whipping by on conveyors in the background. It’s rare that I remember statistics from stories like this, particularly at 7:30 in the morning, but for some reason the particulars of this story stuck with me.

Today is Monday, December 13. It is the Monday before the last weekend before Christmas, which historically is the day of the year on which more packages are shipped than on any other day. This year, according to The Early Show reporter, 16 million packages are expected to be shipped today, a 12% increase above last year. (I tried to find a video clip to make sure my groggy mind remembered these numbers correctly, but I was unable to find it.)

This is good news for material handlers for two reasons. One, if you supply or integrate for logistics companies like FedEx, UPS, the postal service, or basically any retailer, it’s going to be a busy couple of weeks. You may want to make yourself available as downtime will come at a high cost to such companies. Quick response and availability will go a long way to solidifying your relationships with such customers.

Two, the increase over last year seems to indicate a return of consumer spending and consumer confidence. Those are good signs for general economic recovery, something that we all can support and are all looking forward to.  I already touched on this subject in an earlier blog entry, but it seems worth noting again, particularly in light of the economic doldrums that we’ve all suffered through for the last few years. Any chance to point out good news, I’m taking the bait. Happy holidays, everyone!

As I’ve mentioned previously in this space, one of the features in the October 2010 issue of The MHEDA Journal is going to commemorate MHEDA members who are celebrating milestone anniversaries this year.  One such company is Cross Bros. Co. in Rochester, NY. Yesterday I had a chance to speak to its President/CEO, Tom Pavone. I did some research about the company beforehand, but I still found out a lot about the company I didn’t know. For instance, the company’s name comes from founders William and Oliver Cross (as you may have guessed, they were brothers) in 1845. What I didn’t know: The company is still under Cross family ownership! It’s now in its 6th generation.

It’s rare to find many companies that make it even to a 3rd generation. In fact, an oft-cited statistic says that only one-third of family companies are passed down at all, and only 13% are passed down to the third generation. So to make it to 6, that’s pretty impressive. Another interesting fact: Pavone is not part of the family. He’s only the third Cross Bros. president in 165 years to not be part of the family. Apparently when they were looking for a new president in 2008, the family owners decided to look outside the family in order to inject some new perspective into the company. It’s an interesting position to be put in, though Pavone is making the most of it. He says the company has rebounded in 2010 after a subpar 2009 (who didn’t have a subpar 2009?) and is expecting big things in 2010.

As you can imagine, a lot of interesting things can happen in 165 years in business. Even though it didn’t start out in material handling (it started out in leather products), customer demand and company innovation have led it to become a full-service systems integrator. It’s really a fascinating business, and I urge you to read the Member Profile in the next issue of The MHEDA Journal when it comes out in October.

Yet another low-budget (and I’m guessing low-quality) reality television show has turned to the material handling industry for help. On the heels of last January’s “Conveyor Belt of Love,” an ABC show that featured single ladies trying to pick a date from the men moving by on a conveyor belt, comes the newest dreadful combination of material handling and reality TV.

The new show, “Downfall,” premeired on June 22. It’s a trivia show and the contestants must answer the questions correctly and quickly enough to keep their possessions, which are scrolling by on a conveyor belt, from being dropped on to the ground below. Here’s a preview.

One reviewer said that ABC must have seen that old Conveyor Belt of Love lying around and decided they may as well use it. I did not watch the show, but I did read several reviews. It doesn’t sound like I missed much. The good news for material handlers who want to see the big belt in action: Downfall has several more episodes scheduled to air, whereas Conveyor Belt of Love only made one appearance. Check your local listings.

I ran across this little nugget today while researching our wikiMHEDA headlines. With all the talk still circulating the industry about green technology, I found it interesting.

A company in Buffalo, NY, specializes in eco-friendly products, like turning scrap tires and computer parts into item like wheel stops and sign posts. They have turned their attention to recycling old industrial conveyor belts made of rubber. According to the blog post in Buffalo Business First, “We don’t want to have any waste or have effect on the environment so were taking scrap and making it into different products. We’re going to take old conveyor belts from quarries and mines and cut them out and we have a customer in Texas who makes them into dock bumpers.” The quote is from Deborah Robbins, VP of Rubberform Recycled Products. They expect the process to start as early as next week.

As you’re all aware by now, the theme for MHEDA in 2010 is The Rules Have Changed. This is another example of small business ingenuity at work. If you or your customers have any old conveyor belts lying around, maybe it can return to another customer’s factory as a dock bumper. Full-circle material handling!

Have a great Memorial Day weekend, everyone!

I was on vacation for a few days last week and spent some time cruising around Southern California. I had been there before but always had a destination and a reason in mind, and never really took any time to explore beyond my immediate destination.

This time, though, I had some free time to relax and soak it all in. Looking back on it, it’s amazing how much material handling I saw, really in every way. Traveling around Long Beach, i saw the port filled with huge barges loaded with hundreds of shipping containers. I saw cranes and hoists being used to unload those ships.

I saw forklifts in action, at every size business, from a tattoo parlor in Venice Beach using a truck to unload what looked to be large ink canisters, to the Hollywood Walk of Fame using one to haul some new granite for a new sidewalk star (I think it was Russell Crowe’s), to a shipyard in San Diego.

I saw industrial storage rack in the place where we picked up our rental car, and I saw conveyors both at the airport and at a cruise ship boarding station we rode our bikes past.

Most people don’t know it, but material handling is everywhere! Making that awareness more prevalent is the purpose of MHEDA’s Industry Advocacy committee, and the good news is, they have a lot of material to work with. Even on vacation, I can’t escape it!

The First Quarter issue of The MHEDA Journal is now available online at www.TheMhedaJournal.org. It is being mailed out to subscribers today. As I’ve been telling you for a while, this issue is our annual industry forecast issue, featuring commentary from distributors, suppliers and other industry associations about their expectations for 2010. This special “10 issue” for 2010 features a series of Top 10 Lists to bring in the new year.

Check it out today!

photo from blog.cc-efi.com

In speaking with MHEDA Member Jeff Stohr of Conveyer & Caster – Equipment for Industry (Cleveland, OH) today, he relayed the story of something his company recently did to give back locally. It’s always nice to hear such uplifting stories.

Last night, CC-EFI employees presented specially made and embroidered gym bags to a local high school basketball team whose coach had unexpectedly passed away at the beginning of the season. The details can be found in more complete and first-hand accounts at the company’s blog at blog.cc-efi.com.

Congrats to Jeff and his team for raising $1,500 to get this done! In times of economic strife, to step up so generously says a lot about the character of this company. And I hear stories like this from MHEDA Members on a regular basis. It’s a tribute to the industry and the association in particular. Kudos!

To those of us who spent last night watching TCU play Boise State in the Fiesta Bowl, we made the wrong decision. Airing at the same time on ABC was a new reality show, Conveyor Belt of Love. Think of it as speed dating meets material handling.

A series of single men rode a conveyor belt to the middle of a stage, where their dating worthiness was judged by five single ladies. The women could ask questions of the men and elect to go on a date or let them pass on the conveyor and out of the way forever.

Had I known about this sooner, there is no doubt that I would have penciled this in as must-see tv and definitely would have alerted you to it in this space. As it is, we’ll each have to settle for this clip.

I’m not much for “reality” shows, particularly reality dating shows, and my official review of this one is that it’s about as good as you’d expect. But, hey, whatever gets material handling out into the mainstream, right?

For now, this was a one-time special show made to conicide with the premiere of the new season of The Bachelor. That’s probably enough.

A colleague of mine forwarded me this interesting story yesterday. Apparently, AmbaFlex, a manufacturer of conveyors and conveyor components, won a lawsuit in a Shanghai court to stop a Chinese company from producing copycat conveyor equipment. The lawsuit has been pending for more than a year, and the judgment was handed down on December 2. According to the AmbaFlex Web site:

By Judgment of 2 December 2009, the Shanghai Civil People’s Court of China ordered local Cabax to stop manufacturing the infringing Spiral Conveyor and to pay damage compensation.

The perception that one cannot put a hold on copies of Western equipment by local Chinese manufacturers has been proven to be untrue. Over the last years and supported by the WTO membership of China, the Chinese law became more open for foreign companies to successfully file their complaints relating to patent infringements.

Congrats to AmbaFlex on protecting its patent. This is a practical example of what’s been said in the industry for a long time: competition is everywhere, and they’ll try everything to survive! Especially in this down economy. It will be interesting to see how this plays out going foward.