IHEA

New Sustainability & Decarbonization Initiatives for Heat Treat

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS, OP-ED

op-ed

Searching for sustainability resources? Check out this first installment of the Sustainability Insights series, from the Industrial Heating Equipment Association (IHEA) for what’s available to in-house heat treaters across the industry.  

Discover the resources IHEA provides in their web-based Sustainability area and a new webinar series launching May 11.

One thing is certain, and it's that there is great deal of uncertainty about how to begin addressing issues of sustainability and decarbonization. As heat treaters begin to receive more and more questions about decarbonization, IHEA saw an opportunity to help the industry and began developing a variety of initiatives relating to sustainability and decarbonization in the industrial heating equipment industry. 

Getting Started with Sustainability 

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The first step towards decarbonization is understanding this is a topic that will not go away. While they may not see any immediate consequences, heat treaters need to at least begin preparing now for what is quickly approaching. Before long, clients are going to be demanding heat treaters show that they are lowering their carbon emissions. Thinking, “This will not affect my business,” will be detrimental in the long term.  

IHEA recommends to start by considering efficiency and getting an initial assessment of carbon footprint. The fastest, easiest way to reduce carbon footprint is to burn less fuel by investing in efficiency improvements. As a side benefit, operating costs are also reduced. IHEA's current combustion courses do have content on efficiency and low carbon fuels and a webinar series specifically designed to help everyone understand how to determine their initial accounting of their carbon footprint. 

Future Plans 

The deeper driving forces that will affect our industry regarding sustainability are regulations, incentives, and energy economics. Rapidly changing environmental policy, growing technology incentives, and a shifting relative cost of fuels (and alternate fuel options like hydrogen) are opening new pathways for businesses to factor carbon footprint and sustainability into their operations. 

Because of these upcoming changes, IHEA is developing a wide array of services and tools that will help those looking to lower carbon emissions determine the best approaches for their heat treat facilities. An entirely new body of content will be developed that will be at the leading edge of this industrial revolution.  

To kick things off, IHEA has developed a Sustainability area on their website that features the foundation of information the industry needs. The Sustainability area includes the following sections: Sustainability FAQs, Sustainability Terms & Definitions, and Sustainability Resources. The Sustainability section will continue to expand by adding content and resources on a regular basis.

Additionally, IHEA is launching a series of webinars that will start the process of walking companies through the complicated issues related to decarbonization: 

  • May 11: Thermal Processing Carbon Footprint (click to register/read more)
  • June 15: Defining Greenhouse Gas (GHG) Emissions to Target NET-ZERO 
  • July 20: DOE Tools and Programs for GHG Reduction 
  • August 24: Ongoing Sustainability: Industry Best Practices for Continual Improvement 

The goal is to provide unbiased education for everyone involved in the process heating industry. The webinars are complimentary. Visit www.ihea.org and click on the "EVENTS & TRAINING" tab.  

Brian Kelly
President at Honeywell Thermal Solutions

Recently elected IHEA President Brian Kelly of Honeywell Thermal Solutions says, “IHEA is taking a leadership role because we see that this will be an ongoing and changing landscape for the industry for years to come. With the years of collective expertise of our membership we feel that we can provide information, education, and guidance to help everyone navigate what is sure to be a challenging environment.” Kelly continued by saying, “In the end, we want to be a source to count on to help our entire industry in their sustainability journey as it will be a long and winding road that will be different for everyone.” 

For more information:

Visit www.ihea.org. 

Find heat treating products and services when you search on Heat Treat Buyers Guide.com

 

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IHEA Monthly Economic Report: Elephants and Mice

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in April starts with an analogy of current world events compared to a scene from the animal kingdom. The statement, "when elephants fight it is the mice that suffer," is used to describe the "elephants", the U.S. and China. There's not a lot of good that comes when two major world economies continue to disagree all while still depending on each other for supplies and material goods.

How does this analogy include the heat treating industry? Heat treaters come under the "mice" category, and there are definite hardships that continue to plague supply chain, production, and demand; as the "elephants" battle. China is putting up all sorts of obstacles on their exports, and now the U.S. is dealing with the Biden administration's push for the automotive industry to convert electric vehicle production. "How does the U.S. manufacturer avoid becoming the mouse that gets trampled by this fight between elephants?" the IHEA report questions. "The simple assertion is that the U.S. has to find alternative sources for the materials and commodities that have been provided by China. This may be simply stated but accomplishing this will be anything but simple."

An examination of the economic indices shows how the tension between nations seems to be affecting numbers. A majority of the sectors see drops: Steel Consumption, Industrial Capacity Utilization, Metal Pricing, Capital Expenditure, Durable Goods, and Factory Orders. However, 4 indices show, if not improvement, steady progress: New Auto/Light Truck Sales, New Home Starts, Purchase Managers Index, and Transportation Activity.

Good news for heat treaters in the automotive sector is that demand for cars and light trucks is still high. This is tempered with banks that are becoming more guarded in offering car loans since large numbers of people are not keeping up with their loan payments. Another concern creeping in is the future of traditional vehicles since the push for EVs is becoming apparent. The "mice" have a lot to think about for the future of automotive sales.

 

"The most recent factor [for volatility in this market] is the push to force adoption of the electric vehicle through putting severe limits on traditional vehicle mileage performance."
Source: IHEA
The 3-pronged influences in the steel industry - construction, vehicle manufacturing, and oil and gas pipeline - are declining overall. The report says that 2024 could be even worse than the current year.

"Oil and gas demand [one of the 3 relevant sectors] has started to improve as the daily commute resumes and that will spur more demand for pipelines."
Source: IHEA
This decline in PMI seems to be common around the world, as the U.S. is only 1 of  over 20 nations that are seeing a downturn. The slight uptick for the month might be due to the U.S. seeking different sources for supply chain; Mexico and India are filling the gap with available resources.

"The data is still not back to the expansion zone above 50 but it is headed in the right direction and is only slightly below that cut-off line."
Source: IHEA

Heat treaters know that durable goods include things like appliances and equipment. This sector is staying strong due to demand in markets like defense, multi-family housing, and machinery.

"There was a slight dip this month but overall, the sector is still solid."
Source: IHEA

"The transportation sector is often a leading indicator. . . .There is no reason to book a truck or plane or rail car unless there is something to move," states the IHEA report. Not only does this index rise when actual goods are being moved to demand, but the need for transportation comes when there is "anticipated demand." These numbers are encouraging, still staying on the positive side.

"Trucking and rail are still down from their past levels but it is worth noting that these numbers are still in positive territory."
Source: IHEA

Anne Goyer, Executive Director of IHEA

The mice are depending on the elephants to make some decisions that will benefit all. While the U.S. is still dealing with China, the report encourages making decisions based more on economical reasons rather than political clout. It seems the writing is on the wall to consider alternative nations from which to source supplies and raw materials. Within the U.S., there are raw materials that can be sourced; so maybe it is time to focus on those resources.

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of IHEA. Email Anne by clicking here.

 

 

Find heat treating products and services when you search on Heat Treat Buyers Guide.com

 

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IHEA Monthly Economic Report: Progress in the Face of Setbacks

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in March came out a little later than usual in order to incorporate recent global banking events. Even with bank failures, heat treaters can see the economy being part of an overall forward, albeit slow, recovery from the big recession during the pandemic.

Some of the banks to collapse were Silicon Valley Bank along with others such as Signature Bank and Republic Bank as well as Credit Suisse in Europe. The continual raising of rates, by the Feds, to fight inflation exposed weaknesses in banks that were already struggling. In the aftermath of this collapse, the report states uncertainty in how the Fed will respond to inflation in the future.

While the following report shows current stability in the economic indices, there is uncertainty following the banking collapse about how the economic future will unfold. The report states, "the industrial sector is still expected to decline although the speed of that decline has slowed
a bit. The projected readings are far below the trend line . . . but has started to show some very slow recovery." Only time will tell how the banking collapse will affect the future trends.

As a first example of continuous supply chain improvement, new automobile and light truck sales are up. New cars are being produced more consistently, and people are attracted to new vehicle purchase over the high-priced used vehicle market.

"Now that the supply chain crisis has started to recede the new cars are available again."
Source: IHEA

New home starts have about the same data as last month's report with the need still great for multi-family units are needed. The durable goods chart will be shown next since a good portion of that manufacturing is feeding into the new home builds.

"The good news for the manufacturer is that appliance demand is far higher with multi-family homes."
Source: IHEA

"There have been major gains in sectors such as vehicle manufacturing and aerospace..."
Source: IHEA

Another economic trend for heat treaters is the steel consumption sector. Construction is going strong, but know that this could drop when current projects get finished. There is hesitation in construction to embark on new projects because of financing concerns. As mentioned before, automotive is still doing well.

"Most of the big projects have started to get closer to completion and the economic environment is causing delays in starting new efforts."
Source: IHEA

Similarities can be seen in the industrial capacity utilization and the factory orders scenes. When the panic due to supply chain problems hit, companies bought up as much as they could. Now, there is the opposite problem of overstock. Inventory is going to have to be sold before these numbers will start working their way up again.

"Until these excess inventories are dealt with there will be slack reports."
Source: IHEA

"The dip in commodity pricing has already passed for the most part..."
Source: IHEA

Raw metal pricing saw a huge dip with the bank failures, and the report shows this is due to investor panic. Already the numbers are leveling out.

Anne Goyer, Executive Director of IHEA

Overall, the report is showing on-trend charts and indices. Even with the bank scares recently, the economy is not radically dropping and changing. Things are straightening out - slowly, slowly - as the recession moves more and more into the rearview mirror.

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of IHEA. Email Anne by clicking here.

 

Find heat treating products and services when you search on Heat Treat Buyers Guide.com

 

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IHEA Monthly Economic Report: Certain Uncertainty

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in February shows that 2023 has already been forecasted in very different ways by expert analysts. Some are claiming that 2023 is just going to be terrible with rampant recession, pointing to the Purchase Manager's Index (PMI) as the true marker for what to expect. Then, there are the more moderate studies. The automotive and aerospace industries are looking up. The split forecasts might leave one spinning in confusion.

By taking a closer look at some of the specific industries, the economic summary shows that, "We don't quite know what to do with 2023 yet." The report reiterates this balance of highs and lows, with several bright spots for heat treaters, "In the more detailed breakdowns we see some significant variations – booms in automotive and aerospace but declines in machinery. Less volatility in fabricated metal and more volatility as far as primary metal is concerned."

The 10 economic indices show the aforementioned balance with almost half showing some increase, and the other sectors have a drop. A closer look below will show that even within the indices that are dropping, heat treat related markets are holding steady. Global events continue to  impact metal prices. Indices that are down include: New Automobile and Light Truck Sales, New Home Starts, Industrial Capacity Utilization, and the Transportation Activity Index. The up indices are Steel Consumption, Metal Pricing, PMI, Capital Expenditure, and Durable Goods.

High interest rates and high new vehicle prices are driving these sales down. Heat treaters, keep in mind that older vehicles are still on the road needing parts and eventually replaced.

 

"There is a threat of continued low demand."
Source: IHEA

With a look at new home starts, yes the index is down. There is a bit of a surprise within this big picture. Multi-family unit construction is actually up by 11%! This means heat treating is needed for construction components as well as appliances that go into these units. There is a relationship here with the durable goods pictured a few charts further down. Demand is high for these manufactured items.

"New homes are expensive, and loans to buy them are expensive as well."
Source: IHEA

Metal pricing reflects political events around the world - places like China and Peru where industrial metals and copper are sourced. Supply chain problems are correcting, but government conflicts continue. Currently the numbers are up, but quite a bit of uncertainty swirls.

“The sense is that prices are settling into a predictable pattern — for now.”
Source: IHEA

Durable goods are things that are supposed to last years. Appliances for the multi-family housing units shown above would be something in this category.

"A bigger demand for U.S. exports and most of these are high-value manufactured goods."
Source: IHEA

Robotics industry is booming too as is the automation sector. Durable goods also includes U.S. exports, and those are in high demand.

Anne Goyer, Executive Director of IHEA

2023, it would seem, is a year to "Keep calm, and carry on". The incredible lows due to the pandemic, and then some major highs coming out of that time are in the past. With some rising indices balanced with some low economic markers means, "companies are facing a year of unknowns after a couple of years of predictability."

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of IHEA. Email Anne by clicking here.

Find heat treating products and services when you search on Heat Treat Buyers Guide.com

 

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IHEA Monthly Economic Report: The Big 3 Plus 1

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in January takes a look at the 3 common problems for the economy and provides another sector that may be surprising player. Usually, inflation, recession, and supply chain have been considered the culprits for the economic downturns in past months. There is something else edging in as cause for concern: the worker shortage. Specifically, the looming problem that the Boomer generation is retiring.

By 2030, the report projects, every worker of this generation will have reached retirement age. It is forecasted: "These people will be very hard to replace, and it will be expensive." Worker shortages have been discussed before, but now the study is showing that things are at "crises level."

"Remarkably stable" due, in part to "expansion of capital spending"
Source: IHEA

The 10 economic indices have all shown a drop except two: Durable Goods and Metal Pricing. Metal prices are remaining stable even as there are signs of reducing demand. The report credits this to companies thinking there will be a slowdown this year. Global events do make copper rather volatile, but nickel and aluminum are holding steady.

"The metal markets have been stabilizing to a degree."
Source: IHEA

All of these indices are slowing down: New Auto Sales, New Home Start, Steel Consumption, Industrial Capacity Utilization, Purchasing Managers Index, Capital Expenditure, Factory Orders, and Transportation Activity. It's difficult to pin just a few reasons for this, but supply and demand issues, high interest rates, and high prices overall have consumers hanging on to their money if they can.

Some supply chain resolution but "consumer demand is frequently frustrated by the lack of the desired vehicle."
Source: IHEA

In the automotive arena, heat treaters can find measures of security in knowing production is still expanding.

"The estimate is that another 5 million homes are needed."
Source: IHEA

Yes, the numbers are down, but overall there is a great need yet for housing. Multi-family homes see numbers still up by 12%, so that reflects well for heat treaters providing construction needs.

Some slowing in the steel sector
Source: IHEA

The report on steel consumption shows decline in the three major "drivers" for the industry: commercial construction, vehicle manufacturing, and the oil and gas business.

Anne Goyer, Executive Director of IHEA

2023, it would seem, is going to see a lot of spending on labor. There is hope even while seeing numbers drop, and it is possible that the nation is moving into a better time. The claim is that the "recession threat [is fading]," and supply chain circumstances are improving with China and elsewhere.

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of IHEA. Email Anne by clicking here.

Find heat treating products and services when you search on Heat Treat Buyers Guide.com

 

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IHEA Monthly Economic Report: Q4, New Year, and Beyond

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in December gives forecasts for Q4 results and takes a look into the start of 2023. The 3.9% growth from Q3 is not expected to be matched in Q4, but the spending power of the consumer holds out hope for battling recession.

The 3.9% growth from Q3 is not expected to be matched in Q4 and beyond, but the spending power of the consumer holds out hope for battling recession. The thought is that inflation highs have peaked, and interest rates could lower about halfway into 2023. Heat treaters should note that applicable indices are remaining steady while still dealing with supply chain problems and work force shortages. Of the 10 economic indices in this report, 6 sectors are steady or seeing growth; while 4 are on a downturn.

Holding steady with biggest strength found in automotive.
Source: IHEA

The categories included in seeing maintenance and growth are: New Auto & Light Truck Sales, Steel Consumption, Industrial Capacity Utilization, Metal Pricing, Durable Goods, and Factory Orders. Automotive sales are strong; people are wanting and needing to replace vehicles they've maintained for a long time. "People want new and they are confident enough in their job security to buy a new vehicle."

Automobiles are still in heavy demand due to supply chain issues and need to replace older vehicles.
Source: IHEA

There are no surprises from the Steel Consumption reports, as the "big three sectors are all performing about as expected – vehicle manufacturing, construction and the oil and gas arena." Metal Pricing is seeing a A Tale of Two Cities because copper is affected by political tensions around the world, but aluminum is seeing strong demand, particularly for the aerospace industry.

Interest rates are prohibitive for single-family home purchases.
Source: IHEA

Those indices that are in decline or experiencing drops are: New Home Starts, Purchasing Managers Index (PMI), Capital Expenditures, and Transportation Activity. New home purchases are difficult for those buyers because the interest rates are high. There is a bit of a bright spot for heat treaters since multi-family home sales are still strong; this means metal products are needed - appliances, window frames, and construction components.

Manufacturers are showing caution in purchases.
Source: IHEA

The PMI "is always a good indicator of overall industrial activity as the purchasing manager will be doing what they do at the start of any industrial process." In the report it's down to 47.7; not an emergency, but very uncomfortable level.

Anne Goyer, Executive Director of IHEA

The report on these indices takes a middle-of-the-road approach. There are no alarmingly sharp drop-offs in the reports, neither is there any drastic growth into the positive numbers; it all comes down to inflation. Economic markers are such that the interest rates are as high as they will get indicate a drop about halfway through the new year. The report looks for some lowering of the numbers to "between 4.25% and 4.50%" while the Fed members think the rate "may top out at 5.1%."

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

Search for heat treat solution providers and suppliers on Heat Treat Buyers Guide.com

 

IHEA Monthly Economic Report: Q4, New Year, and Beyond Read More »

IHEA Monthly Economic Report: Good and Bad News

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary released in November takes a look at high inflation. The report focuses the reasons for current inflation on four factors: supply chain issues, oil crises stemming from Ukraine situation, increase in wages, and possibility of bringing jobs back to American soil.

"If one compares the readings for other nations to that of the US, there is still more growth here than in Europe and even Asia." Hints of good news can be found, even as inflation continues to be high.

The IHEA report hones in on good and bad news related to wages and reshoring of jobs. Thirty or forty years ago, moving production overseas meant that U.S. employers could spend very little on wages. What's happening now is China and other players are seeking to have domestically independent economies, which means paying their own employees higher wages. The report states, "The China under Xi Jinping seeks to be far less dependent on its export economy and wants to be driven by its own consumers. For that to happen the Chinese consumer needs more money and that means higher wages. The bargain that was Chinese production has faded." So the bad news for manufacturers is that wages are high everywhere. The good news is that this helps bring the jobs back to North America.

Good and bad news carries over into the steel industry. "Imports of steel are down and that is good for domestic producers but the demand slump has many concerned."

Anne Goyer, Executive Director of IHEA

There is good and bad for reshoring the jobs back to America. The report states, "If they [American companies] produce close to the consumer, they can be more adaptable . . . . The ability to take advantage of U.S. innovation and development improves. This all comes at a cost as well – higher wages, higher regulatory costs and higher taxes." It seems that America has been caught off guard. Bringing jobs back to America, in a time when preparations have not been implemented, means growing pains. The pressure is on to find workers, train workers, and keep current and new workers happy.

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of the 11-page report, contact Anne Goyer, executive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

Search for heat treat solution providers and suppliers on Heat Treat Buyers Guide.com

 

IHEA Monthly Economic Report: Good and Bad News Read More »

20 Quick Heat Treat News Chatter Items to Keep You Current

/ FEATURED NEWS, HEAT TREAT NEWS

Heat Treat Today offers News Chatter, a feature highlighting representative moves, transactions, and kudos from around the industry. Enjoy these 20 news bites that will help you stay up-to-date on all thing heat treat. 

Equipment Chatter

  1. A leading Chinese aviation company began cooperating with SECO/WARWICK, placing an order for a Vector® vacuum furnace for carburizing and gas quenching. The furnace will be used for the manufacturer of hydraulic pump components and other machinery.
  2. Tenova Italimpianti, a technologies and equipment supplier for industrial furnace providers, recently received a contract from Metalloinvest for the reconstruction of the Heating Furnace 2 in the second rolling unit of Alexey Ugarov OEMK, in Russia.
  3. Tenova LOI Thermprocess has received an order from Wuhan Iron & Steel Co. Ltd. (WISCO) in Wuhan, China for the installation of a continuous quench for the efficient cooling of thin steel plates.

Personnel/Company Chatter

  1. Nitrex’s Aurora commercial heat treat facility is now in the hot testing phase of its newly installed low-pressure carburizing (LPC) and vacuum system, which is expected to start production in September.
  2. Can-Eng Furnaces International Ltd. welcomed Johan Vargas to its Mechanical Engineering team.
  3. Mike Stowe, senior energy engineer at Advanced Energy, recently won an ACEEE Champion of Energy Efficiency in Industry award in the industrial leadership category.
  4. Selas Heat Technology Co. announced that Burner Design and Controls (BDC) of Hazelwood, Mo. has joined their network of manufacturers’ representatives. BDC will be handling Selas burners, valves, mixers, and control components serving customers in Missouri, Kansas, Iowa, and Southern Illinois.
  5. The Industrial Heating Equipment Association (IHEA) recently gathered for its annual meeting in St. Pete Beach, FL, where the National Board of Directors and Executive Officers met in person. The leading Board of Directors consisted of both continuing and new members. Scott Bishop of Alabama Power – Southern Company serves as president; Jeff Valuck of Surface Combustion, Inc. as vice president; Brian Kelly of Honeywell Thermal Solutions as treasurer and Michael Stowe of Advanced Energy serves as past president. Jason Safarz returns to the IHEA Board of Directors as a regional sales manager at Karl Dungs, Inc. Jeff Rafter, vice president of sales and marketing with Selas Heat Technology Co., joins the IHEA Board of Directors this year. Continuing their service for 2021–2022: Gary Berwick, Dry Coolers; Alberto Cantu, Nutec Bickley; Bob Fincken, Super Systems, Inc.; Doug Glenn, ; Francis Liebens, SOLO Swiss Group; John Podach, Fostoria Infrared; and John Stanley, Karl Dungs, Inc.
  6. The Industrial Heating Equipment Association (IHEA) acknowledges their current committee chairpersons on the IHEA Committees and Divisions: Government Relations Committee led by Jeff Valuck, Surface Combustion, Inc.; Safety Standards and Codes Committee led by Kevin Carlisle, Karl Dungs, Inc.; Education Committee led by Brian Kelly, Honeywell Thermal Solutions; Marketing Communication & Membership Committee led by Erik Klingerman, Industrial Heating The Infrared Division is chaired by Scott Bishop, Alabama Power – Southern Company; and the Induction Division is chaired by Michael Stowe, Advanced Energy.
  7. Alvis Eimuss, head of Customer Support at CENOS, presented the company’s most recent software, CENOS Induction Heating simulation software’s version 3.0 at a webinar titled, “Webinar: CENOS 3.0 release”.

Kudos Chatter

  1. Braddock Metallurgical announced that they achieved the renewal of Nadcap accreditation at their Bridgewater, Boynton Beach, and Jacksonville locations. Additionally, Braddock Metallurgical earned the special Nadcap recognition of Merit.
  2. Solar Atmospheres – Souderton, PA announces that it has been awarded Nadcap 24-month Merit status for heat treating, brazing and carburizing.
  3. Metallurgical Processing, Inc. in New Britain, CT has achieved two-year Merit status with PRI/Nadcap with 10 checklists ranging from Aluminum, Ion Nitride, Vacuum Furnace Brazing and Carburize among others.
  4. The Bodycote team in Berlin, CT completed a three-day Nadcap audit for electron beam welding, maintaining their Merit status for a further two years.
  5.  Bodycote teams at Silao, Romulus, and Canton Haggerty were awarded the Supplier Quality Excellence Award from General Motors for their work in 2020.
  6. Isostatic Pressing Services, LLC successfully completed the PRI evaluation process, becoming Nadcap certified for various criteria including AC7102/6 and AC7102/8 Rev A among others.
  7. Thermal-Vac Technology has been nominated and asked to take part in the Orange County Business Journal’s celebration of the 22nd annual Family-Owned Business Award.
  8. Allied Mineral Products of Columbus, Ohio celebrates its 60th anniversary in August 2021.
  9. SECO/WARWICK, a Polish company with American roots, was awarded a prize at the USA-Central Eastern Europe Investment Summit & Awards, one of the key events summing up the economic partnership between the U.S. and the Central Eastern European region. The award for the Most Successful Expansion was accepted by Sławomir Wozniak, the president of SECO/WARWICK Group
  10. The European Steel Technology Platform (ESTEP) reconfirmed Roberto Pancaldi, Tenova CEO, as member of the Board of Directors in the position of vice president. Enrico Malfa, Tenova R&D Director, was appointed member of the Clean Steel Partnership’s Board at ESTEP

Heat Treat Today is pleased to join in the announcements of growth and achievement throughout the industry by highlighting them here on our News Chatter page. Please send any information you feel may be of interest to manufacturers with in-house heat treat departments especially in the aerospace, automotive, medical, and energy sectors to bethany@heattreattoday.com.

 

20 Quick Heat Treat News Chatter Items to Keep You Current Read More »

IHEA Monthly Economic Report: The Good. The Bad. The Ugly.

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

"That sense of euphoria over the rapid growth sustained since the start of the year has started to fade and not for the reason that was expected," states July's Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary. Remember at the beginning of the year, there was an expectation that there would be growth, but it would hopefully be a bit slow. That was preferred because then "producers would be able to keep pace with demand and that would minimize the inflation threat."

As indicated, when looking at the data for capacity utilization, there has been a great deal more investment in equipment, machinery, and technology in the last few months. The swift recovery of the economy convinced many companies they needed to move quickly to meet that surge in demand.

The report explains that "What we actually got was an economy on fire with a 6.5% growth rate in Q2. Suddenly the inflation threat was real as producers were quickly overwhelmed." But, as everyone was preparing for growth, Covid reared its ugly head again. "Now we see potential decline in the last half of the year as those protocols and restrictions reappear. "Will there be another lockdown? Will consumers retreat again and send the service sector back into recession?" Those are vital questions that are begging for answers.

Businesses had two possible responses to the early surge, both based on consumer action: add capacity to meet the demand and trust the surge will continue or hold tight and possibly lose business to competitors. The summary reports, "Until roughly a month ago, it would have been a good bet to assume that demand would continue to grow – all the signs and indicators were pointing that way. Today the story is far less clear. The resumption of pandemic protocols has been an immense disappointment and has created significant tension."

The data from the PMI has been getting progressively better and these are very high numbers in general. (The PMI index indicates expansion when the numbers are above 50 and contraction when they are below 50. The last time the index was even close to that decline was a year ago when the reading was 50.9 and it has been climbing ever since.) The unique aspect of the PMI is that it is current and honest – it is literally a monthly assessment of what industries are buying.

So, where does that leave the U.S. economy for the remainder of the year? There are three scenarios: the good, the bad, and the ugly. The good is one in which "people basically adjust to the protocols with some patience. . . . If that is the case, the expectation is that growth rates will be relatively unaffected." The bad suggests that "consumers do not adapt well and begin to shift their behaviors back to what they were last year – shunning events, restaurants, travel, and other public activity." And the ugly scenario could result if "the outbreak gets bad enough that lockdowns are reimposed."

The report concludes that "consumer growth and tension are not good companions." Time will reveal the consumer's chosen scenario.

Anne Goyer, Executive Director of IHEA
Anne Goyer, Executive Director of IHEA

Check out the full report to see specific index growth and analysis, which is available to IHEA member companies. For membership information, and a full copy of  the 12-page report, contact Anne Goyer, executive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

 

IHEA Monthly Economic Report: The Good. The Bad. The Ugly. Read More »

IHEA Monthly Economic Report: Are You Experiencing Economic Whiplash?

/ FEATURED NEWS, HEAT TREAT ECONOMIC NEWS

"If you have the feeling that you are experiencing economic whiplash, you are certainly not alone. The last two years have quite literally dumped every conceivable economic issue on business and in an intense and often unpredictable manner," begins June's  Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary. Because conditions are changing so quickly, it's been difficult for businesses to develop strategic plans.

The report explains, "In 2020 the world experienced a massively deep recession whose origins were truly unique – a recession by edict. That has been followed by a surging recovery that shattered the ability of the system to keep pace. This has led to severe shortages and very high inflation in a number of sectors." So, here we are in mid-2021 and the result is a two-tiered economy in which you have businesses recording high demand for their services  and other businesses that have yet to experience needed  recovery. Some consumers have money to burn, while others are declaring bankruptcy. And, inflation seems to the top issue for the business community. (Read the informative and well-written analysis about inflation in the full report. See below.)

Let's take a look at a few of the indices and how they are trending:

"The auto sector has been hammered harder than most by the supply chain disruptions and that has affected performance considerably. The sales numbers are down as low as they have been in months, but as near as anyone can determine this has nothing to do with consumer demand and everything to do with supply. The average price of a car is as high as it has ever been and is now over $40,000," states the summary. High prices, however, aren't deterring people from wanting to buy vehicles--the demand for cars is real. It's that the automotive industry,  ". . . can’t get them as the parts shortages just keep dragging on and on. It is now estimated that computer chips will not be available in the quantities needed until well into 2022." And here's an interesting fact, "The average age of a vehicle in the U.S. is now over 12 years and that is a record."

New home starts are up. The report says, "The housing sector is still far stronger than many had expected it to be given the high prices for homes. The demand is there as long as the mortgage rates are not rising and thus far, they have not. In fact, they have even fallen again. The higher end homes are in more demand than the lower end as these less expensive homes are the target for those who have been affected by the recession."

The housing sector is still far stronger than many had expected it to be given the high prices for homes. The demand is there as long as the mortgage rates are not rising and thus far, they have not. In fact, they have even fallen again.

Steel consumption has also risen. "The levels of steel consumption continue to climb – somewhat erratically but they are climbing. This is a bit odd given what has been taking place in the sectors that consume the majority of steel in the U.S.--those sectors like automotive, commercial  construction and the uncertain future of office buildings." Why the demand for steel? The report continues, "The biggest motivator has been some version of stockpiling as many are expecting even higher prices in the future and are trying to get ahead of that hike. Then there has been demand for appliances and other goods as housing continues to see growth. Beyond the auto sector, there has been better demand in other transportation sectors as well as in construction and heavy machinery.

And finally,  factory orders are up. "The level of factory orders has started to advance and the timing for these gains is about what was expected. This is the time of year that retailers start to gear up for the holiday season and by all accounts they are expecting a better than average season. The consumer is still in a spending mood and still has cash available to spend."

One of the factors that has started to boost factory orders in the U.S. has been the shift to some reshoring activity as the global supply chain becomes more unreliable.

We're all on this wild economic roller coaster ride together, so hold on tight! It's quite the adventure!

Check out the full report to see specific index growth and analysis which is available to IHEA member companies. For membership information, and a full copy of  the 12-page report, contact Anne Goyer, executive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

Anne Goyer, Executive Director of IHEA
Anne Goyer, Executive Director of IHEA

 

 

 

IHEA Monthly Economic Report: Are You Experiencing Economic Whiplash? Read More »