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		<title>MAINTENANCE TECHNOLOGY</title>
		<description><![CDATA[MT-online.com is the #1 source of capacity assurance solutions and best practices in reliability and energy efficiency for manufacturing and process operations worldwide.]]></description>
		<link>http://www.mt-online.com/</link>
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			<title>Thursday, 16 August 2012 15:45  -  My Take: Reflecting On The Term 'For Real'</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2171:my-take-reflecting-on-the-term-for-real&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/columnists/newjaneresize2_thumb_thumb.jpg" width="80" height="104" alt="newjaneresize2 thumb thumb" style="margin-right: 10px; margin-bottom: 10px; border: 3px solid #009373; float: left;" />Here we are again: another August, another installment of our annual “Executive Outlook” section.&nbsp;What’s different, of course, is the theme of this year’s Outlook (and what essentially has turned into the overall theme of this month’s magazine)—<i>”Is reshoring for real?” ]]></description>
			<pubDate>Thu, 16 Aug 2012 21:45:56 +0100</pubDate>
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			<title>Thursday, 16 August 2012 15:39  -  Compressed Air Challenge: Starting Points — Baselining ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2170:compressed-air-challenge-starting-points-baselining-your-system&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><span class="s1">How effective/efficient is your com-pressed air system? Take a few minutes to visit your compressor room. It’s probably noisy, hot and dirty. Look at the compressors, note their vibrations and heat, then try to evaluate the health of the equipment by feel. Not working for you?</span></p>
<p class="p2"><span class="s2">How about checking the compressor gauges? Unfortunately, pressure, temperature and, perhaps, a maintenance-warning message are typically the only parameters indicated. No luck there.</span></p>
<p class="p2"><span class="s2">The fact is most compressed air systems incorporate no convenient means for determining how much air is produced—<i>or how well it’s done.</i> Measurement of your system is crucial: To embark on improvements, you must correctly baseline your key system inputs and outputs and assess how your system is meeting your plant’s needs. The first step is to use accurate instrumentation and develop a baseline. That’s the starting point for future optimization efforts.</span></p>
<p class="p2">Baselining your compressed air system can reveal how efficiently it operates. For example, if you knew your compressors were rated to produce air at a specific power of 20 kW per 100 cfm, but that your system actually was consuming 75 kW per cfm, wouldn’t you be curious?&nbsp; The specific power of a system is like an automobile’s gas mileage: When things go wrong under the hood or the vehicle is driven incorrectly, the miles per gallon you expect from your vehicle will suffer.&nbsp;</p>
<p class="p2">A baseline can also provide valuable information on how your compressed air is used. Consider this: What if you discovered that 50% of the average compressed air produced by your system was flowing during periods of non-production (i.e., on evenings, weekends and holidays)?&nbsp; This knowledge could lead you to make some improvements in your operating regime—<i>and help your operations capture welcome cost savings.&nbsp;</i></p>
<p class="p2"><span class="s2">Finally, baselining can help you gauge how effective your system is in providing compressed air pressure to end-users. Operators often are very surprised by what they learn during system assessments. For example, that 120 psi they’ve been fighting to maintain in the compressor room might—<i>due to undersized piping, filters, regulators and fittings</i>—turn into only 70 psi (or less) at a critical compressed air-powered tool.&nbsp;</span></p>
<p class="p2"><span class="s2">Remember that careful measurement of a compressed air system isn’t merely about documenting areas of common concern. Rather, it’s the first thing to do when you get serious about optimizing your system.</span>&nbsp;</p>
<p class="p2"><span class="s2">Need help? Most compressed air system suppliers can assist you in assessing your system. Many firms and organizations across the country also provide independent audits as part of their normal product offerings. To help you choose the right partner, the Compressed Air Challenge (CAC) has developed “Guidelines for Selecting a Compressed Air System Provider” available on our Website at http://www.compressedairchallenge.org/library/guidelines.pdf. Don’t forget to check out the Website’s Toolbox section for calculation tools that can help generate a DIY estimate of your system’s baseline and potential savings. Attending CAC training can also go a long way in helping you better understand compressed air systems.</span> <span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 21:39:51 +0100</pubDate>
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			<title>Thursday, 16 August 2012 15:33  -  For On The Floor: You And Your CMMS</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2169:for-on-the-floor-you-and-your-cmms&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><span class="s1"><img src="images/stories/columnists/rick_carter.jpg" width="80" height="104" alt="rick carter" style="margin-right: 10px; margin-bottom: 10px; border: 3px solid #009373; float: left;" />While today’s Web-based and EAM-integrated computerized maintenance management systems (CMMS) are light years beyond their forebears, their purpose (i.e., to systematize and schedule maintenance activities, track inventory and record equipment history) remains the same as 30+ years ago. The same goes for how well these systems are understood and used. According to our Maintenance Technology Reader Panel, this valuable tool can still be vexing to users.]]></description>
			<pubDate>Thu, 16 Aug 2012 21:33:06 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:38  -  Executive Outlook 2012</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2168:executive-outlook-2012&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p style="text-align: center;"><img src="images/stories/2012/0812outlook1.gif" width="410" height="250" alt="0812outlook1" style="margin: 10px; vertical-align: middle;" /></p>
<h3 style="text-align: center;">Is manufacturing moving in the right direction? Are jobs really coming back home?]]></description>
			<pubDate>Thu, 16 Aug 2012 20:38:20 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:37  -  Executive Outlook 2012: Increased Onshoring On The Horizon? ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2167:executive-outlook-2012-increased-onshoring-on-the-horizon-not-likely&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookCybermetrics.gif" width="120" height="180" alt="0812outlookCybermetrics" style="margin-right: 10px; margin-bottom: 10px; float: left;" />While there’s some evidence that offshore manufacturing is slowing and, in some cases, reversing to onshoring, in my opinion, the practice of offshoring U.S. manufacturing and service jobs will continue in the coming years.&nbsp;</p>
<p class="p3"><span class="s1">Growing up and working in the “Motor City” gave me an early and first-hand perspective on the effects of offshoring manufacturing jobs. I fondly remember the time that GM was not only the biggest car manufacturer but also the biggest company in the world. If you don’t already know the answer to “Who’s the biggest company now?” look it up. It isn’t a manufacturing company.</span></p>
<p class="p3">My first job out of college was at a large Detroit-area automotive-parts factory, where I worked as an engineer. I used to spend a lot of time with the maintenance crew trying to figure out why so many parts were out of spec and defective—<i>maintenance actually recognized these types of problems early on.&nbsp;</i></p>
<p class="p3">Our maintenance department did its best to keep things operational with broken-down auction-purchased equipment, few resources and a run-to-failure management attitude. Ultimately, poor quality output and stalled customer assembly lines resulted in business failure and the eventual offshoring of the production. Over one thousand jobs were lost. That happened nearly 30 years ago, in the early 1980s—<i>offshoring continues today and seems on track to even increase in the future.&nbsp;</i></p>
<p class="p3">At my own company, CyberMetrics, we work with many automotive, electronics, pharmaceutical and biotech manufacturers, supplying and supporting them with our FaciliWorks® CMMS software products. Nearly all of our larger and many of our mid-sized customers have offshore or at the least, <i>near-shore</i> facilities (and those counts are rising). Though operations are offshore, our customers still want to make sure manufacturing equipment and facilities are properly maintained, regulatory compliance is met and MRO inventories are adequately stocked. Fortunately, our cloud-based CMMS software makes both local and offshore deployment fairly quick and easy for our customers.</p>
<p class="p3">Political parties will continue to debate the question of offshoring for votes and mindshare—<i>it evokes emotion</i>. Yes, there will be some minor onshoring of a few jobs and the debate will fade, only to resurface once again, of course, during the next campaign.</p>
<p class="p3">Like it or not, offshoring is here to stay and, most likely, will only grow with time. Why?&nbsp;We always want the lowest price—<i>always</i>.<span class="s2"><b> </b></span><span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:37:06 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:35  -  Executive Outlook 2012: As Always, Education Will Continue ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2166:executive-outlook-2012-as-always-education-will-continue-to-be-key&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookFluke.gif" width="120" height="180" alt="0812outlookFluke" style="margin-right: 10px; margin-bottom: 10px; float: left;" />Today’s global economy allows companies to design, source, manufacture and sell from an intricate web of locations based on a variety of factors, including customer sites, talent base, supply quality and availability and logistics costs. Fluke is a global corporation serving a global customer base with a global footprint.&nbsp; We operate every one of our facilities worldwide on the same lean manufacturing principles and to the same high standards of quality.</p>
<p class="p3">As a developed economy, the United States and its manufacturing base have been faced with the challenge of doing more with less for some time: operating older factories at higher levels of output, with increasing amounts of automation that, in turn, requires continuous training for operations and maintenance teams who carry ever-broadening job descriptions. The U.S. benefits from a smart, lean, experienced talent pool.&nbsp; This has certainly helped it compete in a dynamic global marketplace—<i>and has been an important variable in many companies’ decisions to bring manufacturing back to this country.</i> Maintaining that competitive edge in the future will require building and replenishing this talent base. &nbsp;</p>
<p class="p3"><span class="s1">&nbsp;STEM (Science, Technology, Engineering, Math) education, experience and mentoring is critically important for preparing the future generation of technicians, electricians and engineers. Rising to this challenge will require the U.S. to bolster its STEM education in K-12, attract talented youth into targeted vocational training, as well into four-year and advanced degree programs, and leverage on-the-job training/mentorship.</span></p>
<p class="p3"><span class="s1">Fluke supports a variety of different workforce training initiatives</span>—<span class="s1"><i>including K-12, post-secondary, trades and continuing education</i>. The manufacturing sector needs a larger supply of people trained to think on their feet, to troubleshoot and diagnose and to communicate across teams. Starting with the essentials of math and science on up to secondary programs that couple hands-on training with in-class instruction and then to employer-sponsored training programs, education is at the root of America’s future success as a continued global manufacturing powerhouse.</span><span class="s2"><b> </b></span><span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:35:48 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:34  -  Executive Outlook 2012: Preparing For U.S. Manufacturing Growth</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2165:executive-outlook-2012-preparing-for-us-manufacturing-growth&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img style="margin-right: 10px; margin-bottom: 10px; float: left;" alt="0812outlookGATES" src="images/stories/2012/0812outlookGATES.gif" height="180" width="120" />As a global company, Gates Corporation recognizes the importance of manufacturing in local economies for local consumption, and is committed to meeting market demand—<i>wherever it may be.</i> Our manufacturing in the U.S. has been strong for our entire 101 years, and with over 50 years in both Canada and Mexico, our North American manufacturing continues to be the main source for our North American customer base.</p>
<p class="p1">Because many of our customers are expanding their stateside operations, we need to be proactive and prepared for the anticipated demand growth that will certainly impact our operations. I see reshoring as an opportunity for Gates and other manufacturers with operations in the U.S. to evaluate current processes and technologies and invest in increased automation, productivity improvements and training and education.</p>
{loadposition articlegatesoutlook}
<p class="p3"><span class="s1">The influx of new production means that now—<i>more than ever</i>—it’s crucial for manufacturers to adopt Lean Manufacturing principles and put robust sales and operation planning processes (S&amp;OP) in place to tie commercial demand to delivery expectations. The Commercial organization must clearly communicate market demand to Operations, creating a downstream process for assessing the raw materials and workforce needed to successfully meet and manage any impending increases.</span>&nbsp;</p>
<p class="p3">At Gates, we continue to invest in product process and productivity improvements. We have built a Continuous Improvement culture that incentivizes and rewards our associates for identifying opportunities to create efficiencies and reduce overall costs. Beyond this, we document and share key best-practice processes and methodologies across our global teams and facilities.</p>
<p class="p3">Reshoring notwithstanding, knowledge sharing and communication are imperative. Training initiatives need to be viewed as critical as any HSE investment. As the experienced, technical, skilled workforce dwindles, we need to ensure that retiring employees share their knowledge with the younger, inexperienced generations. Now is the time to take education in-house, and reinvest in internships, apprenticeships and on-the-job training programs.&nbsp;</p>
<p class="p3">Gates provides Leadership, Education and Development (LEAD) training and a Supervisor Training Excellence Program (STEP) to create leaders who drive our culture and are equipped to educate and inspire our employees. We also provide ongoing Lean Manufacturing training to ensure employees are properly applying our processes. In fact, some of our customers have asked us to assist them in implementing and optimizing their own Lean Manufacturing processes.&nbsp;</p>
<p class="p3">Ultimately, it’s cross-team communication and cross-company collaboration that will help the U.S. manufacturing industry improve its infrastructure and ready its workforce for a period of sustained growth.<span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:34:33 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:33  -  Executive Outlook 2012: A Global Vision, Made in America </title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2164:executive-outlook-2012-a-global-vision-made-in-america-&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookGE.gif" width="120" height="180" alt="0812outlookGE" style="margin-right: 10px; margin-bottom: 10px; float: left;" />GE CEO &amp; Chairman Jeff Immelt often discusses how global growth and demand from overseas customers represents a tremendous opportunity for U.S. manufacturing and innovation.&nbsp; (In fact, GE has already discussed its plans for creating approximately 15,000 new U.S. jobs since 2009.) I strongly echo that message.</p>
<p class="p3">The largest exporter in the state of Nevada, GE’s Bently Nevada line has been synonymous with machinery protection and asset condition monitoring for more than 50 years. We recognize that behind every great product is a team of great people—<i>and are extremely proud that a vast majority (more than 90%) of our products are still locally manufactured in Minden, NV, by the most experienced team in the industry.&nbsp;</i></p>
<p class="p3">More than 800 strong, our U.S. team remains committed to investing in the technology solutions that have made GE’s Bently Nevada the resilient American company that it is today—<i>namely, our continuous online condition-monitoring systems that customers know and trust to protect their most valuable and critical plant assets.&nbsp;</i></p>
<p class="p3"><span class="s1">But like any competitive industry leader, GE continuously strives to uncover new sources of innovation—<i>both here in the United States and around the world</i>—to create smart, differentiated technology solutions that help our customers remain at the forefront of their industries. That commitment to our customers was demonstrated by the 2011 acquisition of New Zealand-based Commtest Instruments, a company recognized globally for its leadership and innovation in portable vibration analysis and monitoring instruments. This strategic acquisition has enabled us to provide customers across the oil, gas and power-generation industries with an enhanced suite of integrated condition monitoring solutions that take into account the health of the entire plant.</span></p>
<p class="p3">And it doesn’t stop there. In addition to launching a new series of innovative, portable solutions, we continue to make forward-looking technology investments. We have plans to unveil more distributed systems and software in the near future, along with a number of exciting new technologies that align with our vision to unite all of our offerings into a comprehensive, plant-wide condition monitoring experience for our customers.</p>
<p class="p3">Building on our strong American heritage, we look forward to both the challenges and opportunities ahead in leading the world in condition monitoring best practices, setting new standards for tomorrow and delivering health care for our customers’ most valuable plant assets in ways never before imagined.<span class="s1"><b> </b></span><span class="s2"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:33:32 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:32  -  Executive Outlook 2012: We Can Accomplish More By Working ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2163:executive-outlook-2012-we-can-accomplish-more-by-working-together&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookGrainger.gif" width="120" height="180" alt="0812outlookGrainger" style="margin-right: 10px; margin-bottom: 10px; float: left;" />The geographic reallocation of global manufacturing is shifting, but the movement is in its early stages. This presents both a challenge and an opportunity for U.S. businesses.&nbsp; The presence of manufacturing in the U.S. has typically been seen as a core driver of the American economy and has influenced innovation, productivity and growth. Similarly, a well-trained workforce has been a keystone to manufacturing productivity. To create a healthy U.S. environment for the onshoring trend to take root, we must re-establish a commitment to technical education, the skilled trades and the individuals who do these jobs.&nbsp;</p>
<p class="p3">Historically, communities made sure that the U.S. workforce was well equipped to sustain economic growth by working together—<i>nationally and locally</i>—to build an educational network that included secondary schools, community colleges, universities and technical schools. A well-trained, skilled workforce continues to be integral to achieving world-class standards for quality and efficiency. This caliber of workforce also can be America’s differentiator. As manufacturers examine the total costs of their operations, they will increasingly move away from investing in environments that only offer the cheapest wages. Instead, they will opt for communities that have highly trained workers with the flexibility and skill set to perform a wide array of jobs in different environments.&nbsp;</p>
<p class="p3">Yet, finding qualified candidates with strong analytical skills and industrial training remains one of manufacturers’ biggest challenges. For decades, industry leaders have talked about how jobs in the skilled trades are vital to the economic health of our local communities. Now is the time—<i>when there is a growing focus on the value of onshoring</i>—to engage new partners and cultivate new ideas. Now is the time for a renewed energy around championing the value of a well-trained domestic workforce. Working together, we can accomplish more. Through innovative approaches to public-private partnerships, we can ensure a more prosperous business environment that once again fuels productivity, innovation and growth for our local communities.<span class="s1"><b> </b></span><span class="s2"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:32:11 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:31  -  Executive Outlook 2012: Determining &amp; Doing  Whatever ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2162:executive-outlook-2012-determining-a-doing-whatever-makes-sense&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookSchneider.gif" width="120" height="180" alt="0812outlookSchneider" style="margin-right: 10px; margin-bottom: 10px; float: left;" />Re-industrialization is certainly a “real” trend. U.S. manufacturing has had 35 straight months of economic growth, translating to job growth: Manufacturing jobs are expected to increase 3.2% in 2012—<i>an astounding rate compared with 1.6% overall job growth.</i></p>
<p class="p3"><span class="s1">This is attributed to the fact that over the next five years, wage inflation, exchange rate pressure and higher freight rates will erode the majority of cost-advantages in moving production to China and other economies. And besides costs, U.S. manufacturing offers benefits others do not: greater worker safety, efficiency and a more educated workforce. These advantages are becoming especially valued as companies take a more holistic view of overhead costs.</span></p>
<p class="p3"><span class="s1">We need to capitalize on re-industrialization. Foreign direct investment in 2012 is up to $26 billion, while at the same time, the low cost of shale gas is spurring strong domestic growth in industries such as petro-chemical, steel and automotive. To keep up with this growth, an available and able workforce is key.&nbsp;</span></p>
<p class="p3"><span class="s1">Preparing a strong workforce starts at developing new sources of talent. At Schneider Electric, we focus on university relationships—<i>shaping curriculum, hiring interns, defining career tracks and sponsoring on-campus labs and collegiate competitions (such as the U.S. Department of Energy’s Solar Decathlon) to show what engineering offers</i>.</span></p>
<p class="p3"><span class="s1">Additionally, it is important to remember that the new generation of workers wants to contribute to society by conserving natural resources and creating a sustainable planet. In manufacturing, innovations are being developed to solve the energy dilemma, and companies that take this to the next level will attract talent.&nbsp;</span></p>
<p class="p3"><span class="s1">We’re also currently fighting the “knowledge gap” between retiring Baby Boomers and young Millennials. By putting into place both mentoring programs and software to capture knowledge, we can retain and transfer crucial industry skills. Moreover, many current workers need continuing-education opportunities to learn about technologies that keep raw material costs (such as energy) low and the cost gap minimal. Vendor-neutral education (such as our Energy University and EcoXpert programs) is critical in giving Americans an advantage.&nbsp;</span></p>
<p class="p3"><span class="s1">There are a lot of positive factors driving re-industrialization, but manufacturers need to evaluate their full manufacturing strategy to determine what makes sense—<i>taking into account all of the above factors, while ensuring more flexible manufacturing tactics to adapt to future market trends</i>.</span><span class="s2"><b> </b></span><span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:31:09 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:29  -  Executive Outlook 2012: The Future Of U.S. Manufacturing</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2161:executive-outlook-2012-the-future-of-us-manufacturing&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookSiemens.gif" width="120" height="180" alt="0812outlookSiemens" style="margin-right: 10px; margin-bottom: 10px; float: left;" />In recent decades, the American economy has transitioned many times—<i>from manufacturing to outsourcing, to economic crisis to a potential resurgence</i>. But this revival is not going to happen through a simple “reshoring” of manufacturing. For the United States, a combination of factors will lead to a robust rebirth in manufacturing.&nbsp;</p>
<p class="p3">First, there needs to be significant growth in cutting-edge innovation of new technologies. We are already seeing the revival of startups and entrepreneurship, not only in the traditional havens like Silicon Valley, but also in many new locations across the country. The economic crisis, unemployment and the digital age have been catalysts to a revival of entrepreneurial culture.&nbsp;</p>
<p class="p3">Additionally, the gap between product design and manufacturing is fading away and the emergence of the digital factory is imminent. I call this transition in the world of production technology “seamless manufacturing.” America will most likely lead this renaissance—<i>and we need to be prepared.</i> We are beginning to catch glimpses of such a shift in automotive and high-tech industries, which will aid in the birth of a new manufacturing era in the U.S.</p>
<p class="p3">Another important factor to consider is the increase in basic labor costs in developing nations. While many industries still thrive on China’s low-cost manufacturing base, for example, medium-sized and niche-technology industries that are looking at long-term, sustainable business models prefer to operate in a more local manner. Collaborative product-development techniques and crowd sourcing—<i>enabled by the Internet</i>—are also playing a major role in the return of manufacturing to the U.S.&nbsp;</p>
<p class="p3">Finally, the increase in new manufacturing jobs in the U.S. requires a workforce with different skill sets than those of past eras. Our education system needs to be refocused to produce specialized technologists and business people that are prepared for the manufacturing renaissance. Certificate programs and flexible online courses can help build expertise. The need for well-trained workers will shift toward more advanced skills in high-end automation, material-sciences-based innovation and precision engineering. Global organizations like Siemens are partnering and working closely with universities and technical schools to help design programs and curriculums to suit the needs of this new paradigm. It is more important than ever that we train and develop our labor force.</p>
<p class="p3">When combined, all of these factors—<i>education, innovation, increasing offshore labor costs and development of specialized workers</i> —will help boost America’s economy and welcome back manufacturing to the U.S.<span class="s1"><b> </b></span><span class="s2"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:29:52 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:26  -  Executive Outlook 2012: Re-Evaluating International Sourcing</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2160:executive-outlook-2012-re-evaluating-international-sourcing&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookGenerac.gif" width="120" height="180" alt="0812outlookGenerac" style="margin-right: 10px; margin-bottom: 10px; float: left;" />Most companies pay close attention to having a competitive cost structure in the manufacture of their products. Generac is no exception. Decisions are constantly being made about whether it is more cost-effective to source components from international suppliers or produce them here in the U.S.&nbsp;</p>
<p class="p3"><span class="s1">Over the last two decades, the trend for many companies—<i>including Generac</i>—has been to source numerous components internationally because the cost structure of component manufacturers in other countries has been lower than that of similar U.S. manufacturers. In recent years, however, that cost advantage has begun to be mitigated by a number of factors. In the U.S., that includes the use of more advanced manufacturing techniques like automation and lean manufacturing principles that improve productivity and reduce production costs. In other countries, the rising cost of production, as well as the rising cost of shipping components to the United States, have contributed to cost increases for components overall.&nbsp;</span></p>
<p class="p3"><span class="s2">The above factors have combined to cause manufacturers like Generac to re-evaluate inter-national sourcing-—<i>in some cases to the point of actually making decisions to “onshore” the manufacturing of certain components back to the U.S. as cost competitiveness has improved.</i> This is a real trend, particularly with components that are physically larger or of a higher-value nature for which shipping and logistics is especially costly, or those that can benefit from automation and lean manufacturing.</span>&nbsp;</p>
<p class="p3">Manufacturers need to be cognizant of this trend when making their hiring plans, as it might require that future employees have certain unique skills related to specialized equipment or manufacturing processes. There’s also value for manufacturers to invest in employee training, if they’re not already doing so.&nbsp;</p>
<p class="p3">Generac is proud of its robust internal training programs that help our employees continuously improve. I credit these programs—<i>and our employees</i>—with contributing to our ability to efficiently onshore jobs over the past couple of years<span class="s3"><b>.</b></span><span class="s4"><b> </b></span><span class="s5"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:26:32 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:25  -  Executive Outlook 2012: The Regaining Of A Home-Court Advantage</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2159:executive-outlook-2012-the-regaining-of-a-home-court-advantage&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookWaukesha.gif" width="120" height="180" alt="0812outlookWaukesha" style="margin-right: 10px; margin-bottom: 10px; float: left;" />The “offshoring” of U.S. manufacturing has been going on for years, with China being a major job destination. What’s relatively new is the increased talk about “onshoring” or “reshoring” production back to the U.S.&nbsp;</p>
<p class="p3">When I read about companies choosing to offshore (or even onshore), I wonder about their “strategic intent.” Are their decisions based on point-in-time inputs or a longer-term view? Those focused on chasing the lowest cost in the world are often disappointed to learn that many, if not all, of the key inputs change dramatically over time. In China, for example, a strengthened RMB, however slight, has substantially changed the economics of manufacturing over the past two years. Other factors, including rising costs for labor and logistics, intellectual-property protection and lengthy times to market—<i>not to mention the operational challenges of managing a business far from home</i>—have all had an impact on manufacturing in this key region.&nbsp;</p>
<p class="p3">Companies with a more strategic view—<i>i.e., the intent to manage cost structure in balance with serving customers locally</i>—have been more successful with offshoring initiatives. Not every organization, however, has the luxury of maintaining this balance. Due to competitive pressures and/or other demands, many must focus solely on lower production costs. Thus, we shouldn’t be surprised that the economic tides now seem to be turning away from China and toward other regions, including the U.S. After all, the U.S. has one of the most sophisticated business infrastructures in the world and one of the most productive.&nbsp;</p>
<p class="p3"><span class="s1">If—<i>as it appears</i>—reshoring is for real, there will be even more pressure to find and develop key talent from what has become, for various reasons, a diminishing pool of individuals interested in such careers: Much of the U.S. future in manufacturing depends on our ability to replenish our aging workforce with well-trained, younger talent without compromising our productivity advantage.&nbsp;</span></p>
<p class="p3">At Waukesha, our focus has been to continue strengthening our higher-cost manufacturing bases in the U.S. and U.K. (home to our largest facilities) with investments in information technology, more productive machine tools and training. At the same time, we are selectively investing in manufacturing capability in emerging regions. Our overall objective is to operate in our customers’ space and time if value is created in terms of product definition, speed to market, competitive cost structure or other criteria. We hope this balance will pay dividends for our customers, employees and stakeholders over the long term.<span class="s2"><b> </b></span><span class="s3"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:25:08 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:21  -  Executive Outlook 2012: The Trend Is Real, But Only To An Extent</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2158:executive-outlook-2012-the-trend-is-real-but-only-to-an-extent&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookNidec.gif" width="120" height="180" alt="0812outlookNidec" style="margin-right: 10px; margin-bottom: 10px; float: left;" />While more and more companies are moving production back to the U.S., I see it as more of a company-specific issue, not one of general macro-economics.&nbsp;</p>
<p class="p3">It’s true that the wage gap between the U.S. and other developing countries—<i>particularly China</i>—is getting smaller, but the quality and types of products those countries can produce are getting better. For instance, 10 years ago, to compensate for quality&nbsp;and supply-chain risks, U.S. companies typically wouldn’t source products from China unless they were 30% lower in price. Today, many are willing to do so with just 3% to 5% savings. &nbsp;</p>
<p class="p3">Several factors are contributing to manufacturing costs rising faster in foreign countries than back home. Salaries and wages in China have been increasing 12% to 14% annually (compared to 3% in the U.S). China’s appreciating currency has also helped boost U.S. competitiveness. That said, we shouldn’t think China is no longer competitive—<i>and that the U.S. is on the brink of becoming the world’s most prolific manufacturer. </i>China is rapidly improving its manufacturing capabilities and can now produce good quality high-end products at competitive cost.&nbsp; They have an abundance of intelligent, well-trained workers. (China graduates over half a million engineers per year; the U.S. rate is only about 1/8 -1/10 of that).</p>
<p class="p3">Don’t be mistaken: America is still a manufacturing superpower<i>—particularly in areas like airplanes, factory automation, process control, oil &amp; gas drilling and heavy-construction equipment. </i>Although we are becoming more competitive versus China, we cannot compete only on wages and labor costs alone. The game has to be played on a higher level going forward. Our current and future labor force must be prepared academically and institutionally for the demands of the global marketplace in the 21st century. Education (particularly in science and engineering) and on-the-job training are the keys for our future.</p>
<p class="p3">Government needs to help industry compete. Many U.S. competitiveness issues are due to matters over which manufacturers have no control.&nbsp; Government should do what it can to control healthcare costs, while not over-regulating and over-taxing to the point where it’s economically unfeasible to produce goods in this country. Businesses will always try to allocate capital and human resources to where they can make the highest returns.</p>
<p class="p3">Certainly, the next decade looks to be more promising for U.S. manufacturing than the last. What’s becoming increasingly important in the global marketplace is not who can best compete in the&nbsp; “structural” arena, but who can dominate the “intellectual” competition.<span class="s1"><b> </b></span><span class="s2"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:21:12 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:18  -  Executive Outlook 2012: Growing &amp; Sustaining Demand Will ...</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2157:executive-outlook-2012-growing-a-sustaining-demand-will-be-critical&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookABB.gif" width="120" height="180" alt="0812outlookABB" style="margin-right: 10px; margin-bottom: 10px; float: left;" />Onshoring of jobs into the U.S. is, and will continue to be, a reality—<i>assuming we sustain a growing domestic and global demand</i>. News of the U.S. economy actually adding man-ufacturing jobs in 2010 and 2011 (the first such growth in over a decade) indicates that offshoring has likely peaked and onshoring is taking hold. &nbsp;</p>
<p class="p3"><span class="s1">Offshoring has been driven primarily by labor arbitrage on wage costs and currency valuations. Labor costs, however, are now rising by double digits year over year in countries like China (where the strength of currencies against the dollar is also growing), yet U.S. labor costs are remaining flat or slightly declining. It should be expected that the benefits quickly are outweighed by the challenges-—<i>of which there are several</i>. Intellectual property risks, reduced manufacturing agility (capability to respond to quickly changing markets), higher material costs and increased shipping and travel costs coupled with reduced energy costs here are all factors leading to a more competitive total cost of delivery from the U.S.&nbsp; &nbsp;</span></p>
<p class="p3"><span class="s1">Don’t expect an overnight change: It took several years and substantial investment to offshore. I suspect the timing will be similar for the return trip—<i>with the exception that considerable unused manufacturing capacity already exists in the U.S.</i>&nbsp;</span></p>
<p class="p3"><span class="s1">I also don’t see onshoring on the horizon for all types of products. It will probably be limited to higher-value goods or those that demand more customization. The good news is that the market dynamics driving this trend are likely to remain in place for quite some time.</span></p>
<p class="p3"><span class="s1">The challenge now is how to find skilled workers that are prepared for these productivity increases to support the growth of manufacturing in the U.S. I see the skills issue as the biggest challenge, with some reports indicating that hundreds of thousands of manufacturing jobs are currently unfilled due to lack of qualified resources. This needs to be tackled at the local level with collaboration between the manufacturers, local government and community colleges/technical schools to quickly address the skills gaps with targeted training.&nbsp;</span></p>
<p class="p3"><span class="s1">Training investment in manufacturing employees has been flat for over a decade, so it is now time to invest in building these modern skills. Adding manufacturing automation and world-class maintenance practices to drive plant reliability will bring the productivity improvements needed to complement a skilled workforce and keep the U.S. competitive in the global manufacturing market for decades to come.<b> </b></span><span class="s2"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:18:56 +0100</pubDate>
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			<title>Thursday, 16 August 2012 14:15  -  Executive Outlook 2012: Staying Closer To Where The Business Is</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2156:executive-outlook-2012-staying-closer-to-where-the-business-is&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><img src="images/stories/2012/0812outlookMotion.gif" width="120" height="180" alt="0812outlookMotion" style="margin-right: 10px; margin-bottom: 10px; float: left;" />T<span class="s1">he return of manufacturing to our shores is something we at Motion Industries have been watching closely for several years. During the 1990s, we all saw domestic manufacturers, particularly OEMs, closing shop here in the U.S. and moving to locations outside of the country (frequently to China and India). While some of these moves certainly affected our business, most of our customers are in the “end market”—<i>and in industries that are a bit difficult to pick up and move.</i></span><i>&nbsp;</i></p>
<p class="p3"><span class="s2">Since we sell primarily MRO (maintenance, repair and operation) products, our large customers are the producers of food &amp; beverage, oil &amp; gas, mining, pulp &amp; paper, aggregate, automotive, chemical and allied products. These are typically products that are either difficult or too expensive to produce elsewhere, mainly because of available natural resources and the large investment in infrastructure that already exists locally. As our tag line notes, “<i>Keeping industry in Motion” </i>is what we do. And, fortunately for us, most of our business has remained local.</span></p>
<p class="p3">That said, however, we have recently seen several of our <i>suppliers</i> relocating to or building new plants in the United States. In fact, in just the last couple of months, two of our primary suppliers have announced that they’re planning to build brand new U.S. factories during the coming year. Why? They want to be closer to where their business is. This is a great advantage for Motion Industries—<i>one that allows us to better serve our own valued customers.&nbsp;</i></p>
<p class="p3">Strong, appropriate workforce preparation efforts and training of new employees will be critical in sustaining manufacturing growth in our country. As manufacturers relocate back to the U.S., we’re seeing production lines that are far more automated than in the past: To keep running, they rely on different components than the production lines of 10-15 years ago. Successfully operating increasing automated plant equipment means today’s workers have to be more technically competent than ever before. In turn, we must have the product expertise to be able to recommend and provide the right replacement parts to these workers should their equipment fail. It’s a challenge, but one we at Motion are happy to accept. Overcoming challenges is something at which we truly excel<span class="s3"><b>.</b></span><span class="s4"><b> </b></span><span class="s5"><b>MT</b></span></p>]]></description>
			<pubDate>Thu, 16 Aug 2012 20:15:43 +0100</pubDate>
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			<title>Thursday, 16 August 2012 00:00  -  Maintenance Work Instructions Part II: A Style Guide</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2217:maintenance-work-instructions-part-ii-a-style-guide&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><span class="s1"><b><i><img style="margin-right: 10px; margin-bottom: 10px; border: 3px solid #009373; float: left;" alt="bob williamson thumb thumb" src="images/stories/columnists/bob_williamson_thumb_thumb.jpg" height="104" width="80" />“Procedure-based maintenance” will be invaluable in this era of growing skills shortages. Machine complexity, coupled with the impact of the skills </i></b><span class="s1"><b><i>crisis and business needs for improved performance, has created a situation where detailed work instructions are a must-have/must-use maintenance approach. While “craft-based maintenance” has served us well for generations, we can no longer rely solely on the talents of general mechanics, machine repairers, electrical/electronic technicians and others to figure things out.</i></b></span><span class="s2">&nbsp;</span></span></p>
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			<pubDate>Thu, 16 Aug 2012 06:00:00 +0100</pubDate>
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			<title>Wednesday, 15 August 2012 16:32  -  Motor Doc's Hot Topics: Shaft Currents?</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2155:motor-docs-hot-topics-shaft-currents&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1">I’m surprised that some companies discourage the use of shaft brushes because—<i>they claim</i>—conditions calling for these brushes don’t exist. If I were in a mischievous mood, I might say dissemination of such information could be considered a positive by the motor-repair industry. After all, bearing replacement is simple and lucrative (LOL). But I’m really not feeling mischievous about this topic.]]></description>
			<pubDate>Wed, 15 Aug 2012 22:32:18 +0100</pubDate>
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			<title>Wednesday, 15 August 2012 16:25  -  Best Maintenance Practices: Ensuring A Strong Infrastructure</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2154:best-maintenance-practices-ensuring-a-strong-infrastructure&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1" style="text-align: center;"><b><i><img src="images/stories/2012/0812mora.gif" width="410" height="250" alt="0812mora" style="margin: 10px; vertical-align: middle;" /></i></b></p>
<h3 class="p1" style="text-align: center;"><b><i>It’s like building a house. Before you implement a world-class strategy, take a step back to ensure you can support it.]]></description>
			<pubDate>Wed, 15 Aug 2012 22:25:45 +0100</pubDate>
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			<title>Wednesday, 15 August 2012 16:15  -  Lubrication Checkup: Explaining Multi-Grade</title>
			<link>http://www.mt-online.com//index.php?option=com_content&amp;view=article&amp;id=2153:lubrication-checkup-explaining-multi-grade&amp;catid=319:august2012&amp;directory=90</link>
			<description><![CDATA[<p class="p1"><b><img src="images/stories/columnists/1020lubecheckupsmall.gif" width="200" height="98" alt="1020lubecheckupsmall" style="margin-right: 10px; margin-bottom: 10px; float: left;" />Symptom:</b><span class="s1"><b>&nbsp;&nbsp;<br /></b></span><i>“Dear Dr. Lube, I have worked in fleet maintenance for many years and have always used multi-grade oils for engine oil changes, but have never questioned how they work. Could you explain? And what does the letter W stands for?”]]></description>
			<pubDate>Wed, 15 Aug 2012 22:15:22 +0100</pubDate>
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