Industrial Heating Equipment Association

21 Quick Heat Treat News Chatter Items To Keep You Current

Heat Treat Today offers News Chatter, a feature highlighting representative moves, transactions, and kudos from around the industry. Enjoy these 21 news bites that will help you stay up to date on all things heat treat. 

 

Company Chatter

  1. HarbisonWalker International (HWI), a North American supplier of refractory products and services, announced that its new Alabama One (AL1) manufacturing facility for steel customers in the southern United States is on track to open before the end of 2022.
  2. Solar Atmospheres of Western PA announced their newly designed vacuum oil quench furnace (VOQ) has passed startup protocol
  3. On July 6, Solar Atmospheres hosted over 40 high school students enrolled in the Summer Engineering Institute (SEI) at Lehigh University. The SEI program is a two-week residential program. Students are nominated by faculty of local high schools, and the program specifically targets students who might have limited opportunities to study in the fields of science, technology, engineering, and math (STEM). They received a tour of the campus that emphasized cutting-edge technologies in heat treating and manufacturing.
  4. Advanced Heat Treat Corp. (AHT) announced the addition of UltraGlow® Induction Hardening at its location in Cullman, Alabama.
  5. Pfeiffer Vacuum opened up a new 40,000 square foot facility May 13, 2022. This facility is located at 4037 Guion Lane, Indianapolis, IN.


Personnel Chatter

  1. Advanced Heat Treat Corp. (AHT) announced that Chris Williams has joined as the new regional sales manager for its location in Cullman, AL.
  2. Industrial Heating Equipment Association (IHEA) recently announced its 2022–2023 Board of Directors and Executive Officers. Serving as President is Jeff Valuck of Surface Combustion, Inc.; Vice-President is Brian Kelly of Honeywell Thermal Solutions; and Treasurer is Jeff Rafter of Selas Heat Technology Co. LLC. Scott Bishop of Alabama Power – a Southern Company assumes the Past President position.
  3. IHEA welcomed to the Board of Directors Ben Gasbarre, the of Sales & Marketing for Gasbarre Thermal Processing Systems, to the Board of Directors.
  4. The Supervisory Board of Advanced Graphene Products has been formed, appointed by the Ordinary General Meeting on June 24, 2022. Peter Zawistowski, a graduate of the Częstochowa University of Technology, Kozminski University (MBA) and the Massachusetts Institute of Technology (Executive Program in General Management), became the new chairman of the Supervisory Board. Peter has been the managing director of SECO/VACUUM operating in the American market since 2017.
  5. The Plibrico Company, a supplier of monolithic refractories and installation services, is excited to announce and welcome Shawn Story as its new engineering manager.


Kudos Chatter

  1. Space-Lok, Inc. met the requirements of Nadcap accreditation and achieved approval for heat treating.
  2. ALD Thermal Treatment, Inc.'s Port Huron facility received the General Motors Supplier Quality Excellence Award for outstanding quality performance for the 8th year in a row. Criteria for this award include zero official customer complaints for 12 months and quality performance of less than one defective part per million.
  3. Advanced Heat Treat Corp. (AHT), a provider of heat treat services and metallurgical solutions, announced that it has renewed its Nadcap accreditation in heat treating (ion and gas nitriding) and passed its Aerospace Quality System (AC7004) audit. The company has also added additional AMS specifications to its scope: AMS2759/6 and AMS2759/12.
  4. Braddock Metallurgical announced the renewal of a Nadcap accreditation at their Tampa, FL location. The administrator, , has also determined that the heat treater has gone beyond industry requirements and so earned Merit recognition.
  5. SECO/WARWICK in India celebrated its fifth anniversary of its establishment in May, although they have been operating in that market since.
  6. Metalex Thermal Specialties, a heat treat service provider, announced that it has achieved AS9100:2016 and ISO 9001:2015 certification for the quality management system implemented by its heat treating facility in Berthoud, CO.
  7. Paulo’s Cleveland plant in Ohio has earned Honeywell approval for all HIP processing with no restrictions.
  8. The MTI Educational Foundation announced that it awarded Eric Roth of Tucson, Arizona (University of Arizona) the $15,000 Founders Scholarship.
  9. ITP Aero UK Limited was awarded their latest Nadcap certification for Heat Treating with full 24-month merit and accreditation length.
  10. Maryam Razavipour, a senior engineer at Lumentum, was selected by the Heat Treating Society Board of ASM International for the 2022 HTS/Bodycote Best Paper Award for her paper, “Data-Driven Design Framework for Laser Heat Treatment Process of Cold Spray Coating.”

 


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.


 

 

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


 

21 Quick Heat Treat News Chatter Items To Keep You Current Read More »

IHEA Monthly Economic Report: “I don’t really know” and That’s OK

The monthly Industrial Heating Equipment Association (IHEA) Executive Economic Summary this September reiterates the point that it has been making for several months this year: economic growth plus negative economic indicators equals “I don’t really know” what will happen in the economy.

Industrial Capacity Utilization
Source: IHEA

First, the summary takes time to look at contradicting economic indicators. The first example is in GDP growth: While Q1 and Q2 exhibited persistent negative GDP growth, Q3 projections of 1.3% positive growth is a promising sign that the threat of a recession is starting to fade. Other indicators also show borderline economic stability and possibly growth; with unemployment rates being low and seeing capacity utilization numbers in normal range and the Purchasing Manager’s Index in expansion zone (both just barely), “there are as many factors suggesting recession as there are factors that point towards slow growth but growth, nonetheless.” The economic summary projects the following in this borderline hopeful situation: “My own analysis of the situation (for what it is worth) is that the US will escape a formal recession in 2022 or 2023 but will experience a downturn of some significance as compared to where we were in 2021.”

Purchasing Managers’ Index
Source: IHEA

Second, the summary evaluates the causes for inflation, a hot topic and a very visible, uncomfortable sign. We’re looking at three variables for this assessment: lockdowns, the energy crisis, and reshoring. “The estimate,” relates the economic summary, “is that the lockdowns cost upwards of $10 trillion in lost wages, shuttered business, health care costs and the like. The $800 billion [in U.S. stimulus money] did not offset the economic loss and was therefore not inflationary. There was a surge in inflation in early 2021 as the restrictions started to lift and people started to spend again but most of that pressure had dissipated by Q3. There would have been reduction in inflation pressure had there not been other factors.” The next cause for inflation, the energy crisis, was caused by the War in the Ukraine since Russia’s invasion of the Ukraine effectively cut off the world’s second largest producer of oil from the global economy. The energy crisis and inability to access many goods after shutdowns and wartime supply chain disruptions has also led to much reshoring in the U.S. With reshoring — an indication of growth — comes near inevitable price increases at the expense of more secure supply chain lines: “As companies return to the U.S., they will naturally encounter higher costs – for labor, for land and the like. They will see higher regulatory costs and will encounter more limits. These will add to the costs even as these companies benefit from a more reliable supply chain.”

Anne Goyer, Executive Director of IHEA
Anne Goyer
Executive Director
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 11-page report, contact Anne Goyerexecutive 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: “I don’t really know” and That’s OK Read More »

21 Quick Heat Treat News Chatter Items To Keep You Current

Heat Treat Today offers News Chatter, a feature highlighting representative moves, transactions, and kudos from around the industry. Enjoy these 21 news bites that will help you stay up to date on all things heat treat.

 

Company Chatter

  1. HarbisonWalker International (HWI), a North American supplier of refractory products and services, announced that its new Alabama One (AL1) manufacturing facility for steel customers in the southern United States is on track to open before the end of 2022.
  2. Solar Atmospheres of Western PA announced their newly designed vacuum oil quench furnace (VOQ) has passed startup protocol
  3. On July 6, Solar Atmospheres hosted over 40 high school students enrolled in the Summer Engineering Institute (SEI) at Lehigh University. The SEI program is a two-week residential program. Students are nominated by faculty of local high schools, and the program specifically targets students who might have limited opportunities to study in the fields of science, technology, engineering, and math (STEM). They received a tour of the campus that emphasized cutting-edge technologies in heat treating and manufacturing.
  4. Advanced Heat Treat Corp. (AHT) announced the addition of UltraGlow® Induction Hardening at its location in Cullman, Alabama.
  5. Pfeiffer Vacuum opened up a new 40,000 square foot facility May 13, 2022. This facility is located at 4037 Guion Lane, Indianapolis, IN.


Personnel Chatter

  1. Advanced Heat Treat Corp. (AHT) announced that Chris Williams has joined as the new regional sales manager for its location in Cullman, AL.
  2. Industrial Heating Equipment Association (IHEA) recently announced its 2022–2023 Board of Directors and Executive Officers. Serving as President is Jeff Valuck of Surface Combustion, Inc.; Vice-President is Brian Kelly of Honeywell Thermal Solutions; and Treasurer is Jeff Rafter of Selas Heat Technology Co. LLC. Scott Bishop of Alabama Power – a Southern Company assumes the Past President position.
  3. IHEA welcomed to the Board of Directors Ben Gasbarre, the of Sales & Marketing for Gasbarre Thermal Processing Systems, to the Board of Directors.
  4. The Supervisory Board of Advanced Graphene Products has been formed, appointed by the Ordinary General Meeting on June 24, 2022. Peter Zawistowski, a graduate of the Częstochowa University of Technology, Kozminski University (MBA) and the Massachusetts Institute of Technology (Executive Program in General Management), became the new chairman of the Supervisory Board. Peter has been the managing director of SECO/VACUUM operating in the American market since 2017.
  5. The Plibrico Company, a supplier of monolithic refractories and installation services, is excited to announce and welcome Shawn Story as its new engineering manager.


Kudos Chatter

  1. Space-Lok, Inc. met the requirements of Nadcap accreditation and achieved approval for heat treating.
  2. ALD Thermal Treatment, Inc.'s Port Huron facility received the General Motors Supplier Quality Excellence Award for outstanding quality performance for the 8th year in a row. Criteria for this award include zero official customer complaints for 12 months and quality performance of less than one defective part per million.
  3. Advanced Heat Treat Corp. (AHT), a provider of heat treat services and metallurgical solutions, announced that it has renewed its Nadcap accreditation in heat treating (ion and gas nitriding) and passed its Aerospace Quality System (AC7004) audit. The company has also added additional AMS specifications to its scope: AMS2759/6 and AMS2759/12.
  4. Braddock Metallurgical announced the renewal of a Nadcap accreditation at their Tampa, FL location. The administrator, , has also determined that the heat treater has gone beyond industry requirements and so earned Merit recognition.
  5. SECO/WARWICK in India celebrated its fifth anniversary of its establishment in May, although they have been operating in that market since.
  6. Metalex Thermal Specialties, a heat treat service provider, announced that it has achieved AS9100:2016 and ISO 9001:2015 certification for the quality management system implemented by its heat treating facility in Berthoud, CO.
  7. Paulo’s Cleveland plant in Ohio has earned Honeywell approval for all HIP processing with no restrictions.
  8. The MTI Educational Foundation announced that it awarded Eric Roth of Tucson, Arizona (University of Arizona) the $15,000 Founders Scholarship.
  9. ITP Aero UK Limited was awarded their latest Nadcap certification for Heat Treating with full 24-month merit and accreditation length.
  10. Maryam Razavipour, a senior engineer at Lumentum, was selected by the Heat Treating Society Board of ASM International for the 2022 HTS/Bodycote Best Paper Award for her paper, “Data-Driven Design Framework for Laser Heat Treatment Process of Cold Spray Coating.”

 


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.


 

 

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


 

21 Quick Heat Treat News Chatter Items To Keep You Current Read More »

IHEA Monthly Economic Report: Hopeful Horizon Now Approaching

The most recent monthly Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary released in June shares that there are pessimistic and optimistic readings of the data at every turn. While companies seem to be a little confused about whether to expect constriction or growth, the report rightfully notes that "[the] reality is that the U.S. economy is diverse and at any given moment there are sectors that are growing and shrinking – especially in the manufacturing community." Today's summary highlights the diversity of what to expect in the economy.

"The price of steel and aluminum has been rising and fast. There is nothing especially surprising about this fact but the impact on operating costs can’t be underestimated. Fully 77.6% report rising costs and we all know full well what has been taking place in the energy sector."

A quick aside: The dominant factor influencing global economics is war in the Ukraine. The direct effects of Ukrainian agricultural product disruptions -- like wheat and corn -- is compounded by sanctions on Russia which leads to a decreased supply of oil. This stress in the energy market has triggered global inflation that everyone has experience with. For manufacturers, the price of steel and aluminum is rising fast. "There is nothing especially surprising about this fact," the economic summary reads, "but the impact on operating costs can’t be underestimated."

75% of manufacturers are small businesses, which means they will experience the smallest economic changes very keenly. So, while capacity utilization numbers are growing and have just reached into the acceptable utilization zone -- that is, between 80% and 85% where there is relatively low downtime and few bottle-necks -- many small operations businesses will take longer to adjust to new machinery purchases or employees.

To gauge whether or not to prepare for a recession, one should look at the order activity and employment habits of manufacturers. If order activity is stable or increasing, this is a good indicator that manufacturers expect to be able to fulfill more orders and grow with demand. Similarly with employment, when manufactures hire and keep a stable number of workers instead of laying off or decreasing the number of workers, this is also a good indication of a growth economy. Both of these conditions are shown to be true, reports this month's economic summary.

To end on an encouraging note, there isn't reason to believe that most manufacturers are concerned about a recession. With 55.1% expecting business growth and 31.1% expecting business stability, manufacturers remain on track with their capital investment plans to handle these positive expectations. Part of this is linked to the shortage of workers with the right skill set; so expect manufacturers to continue investing in technologies and robots to meet this lack.

Anne Goyer, Executive Director of IHEA
Anne Goyer
Executive Director
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 11-page report, contact Anne Goyerexecutive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.

 

 


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


 

 

 

 

 

IHEA Monthly Economic Report: Hopeful Horizon Now Approaching Read More »

IHEA Monthly Economic Report: It’s Not the 1980s

Rather than mirror the doom and gloom projections from the media, this economic report does not project the 1980s to our present situation. The monthly Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary released in May remains proactive, warning against statements of doom and gloom, while recognizing three very real drivers of economic concern: inflation, labor, demand.

“[The] data for the new orders index has actually improved a bit and is nearly at 60. That is clearly expansion and growth and when this is taking place with
new orders the influence on the overall economy is very positive.”
“The bottom line is that economists are about as reliable as meteorologists when it comes to predicting,” the report reads. So rather than perpetuate the gloomy forecasts, the report proposes warnings in several “if” statements: “If the inflation doesn’t come down, if the price of energy stays high, if the supply chain remains broken, if labor is in short supply, if the pandemic surges again, if the Ukraine war doesn’t end.” These factors may not change fast or fast enough, but we will cross that bridge when we get there.

“Watch for a rethink of tariffs on imported steel and aluminum. Most of the relaxation will affect European producers as there is not much enthusiasm for lowering tariffs on China or other Asian producers.

The first driver of economic concern is consistent with the report released in March: inflation. Currently, the two reasons can be attributed to war in the Ukraine as sanctions on oil have been placed on the third largest oil producer, and supply chain breakdown due to the pandemic. The latter continues to be exacerbated as China has gone into fierce lockdowns. “The loss of the world’s third largest oil and gas producer,” the report continues, “sent prices spiking and there was a similar reaction when it comes to food as this part of the world produced 25% of the world’s wheat.”

The second driver is also familiar — the need for labor and combatting labor costs. While not unanticipated, the increasing demand for skilled workers indicates that we have not properly prepared for this need. In fact, the report asserts that “[there] has been no concentrated effort to train the needed workforce, no reform of immigration, [and] no move to change the retirement age.” This means that skilled employees have more bargaining power as companies — not workers — compete to meet their need.

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

Lastly, the driver of economic concern is high consumer demand in a time of shortage. “In a time of shortage, people and businesses hoard, and that only makes the overall situation worse,” reads the report, and even though the “flood of money” offered to people during pandemic recession fueled excessive growth — nearly 6% — the overhang is mostly gone. There is still some remaining, despite inflation, to encourage spending; it is this area of demand that the Federal Reserve can directly affect if it so chooses.

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 Goyerexecutive 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: It’s Not the 1980s Read More »

IHEA Monthly Economic Report: Lions, Tigers, and Bears?

"The inventory levels for almost every industrial metal have been as low as they have been in decades and at the same time there has been more demand as industry starts to stage a recovery in key areas."

As we emerge from pandemic slowdowns and disruptions, there are still "lions, tigers, and bears — oh my!" that manufacturers face. The monthly Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary released in February notes that in economic terms, it has been "inflation, supply chain, and labor — oh my!" for several months, but at least two of these may be letting up in 2022.

First, inflation. Inflation is the highest it has been in decades: 7.5%. The report reveals the reasons why this is the case: "For the better part of the last four decades the US was able to essentially export inflation . . . If one was facing higher labor costs and higher production costs the easiest response was to either produce or source overseas where the costs were dramatically lower." Now, many U.S. companies are undoing this in light of rowing costs from overseas suppliers and supply chain upheaval.

And high inflation rates and the supply chain are recovering. While the "stimulus effort dumped the equivalent of the Japanese GDP into the hands of consumers," they were unable to continue normal purchasing habits, and cash tied up in savings contributed to inflation. But now, consumers have fed most of that cash back into the economy. Additionally, producers are slowly catching up with demand, which will stabilize commodity costs from contributing to inflation. The last contributing factor to inflation is less positive; the report notes that cost of labor -- having risen over the course of the pandemic -- are unlikely to come down, which will likely inhibit the full return "back to normal." Still, even the supply chain's 2021 recovery is cause for celebration, having been "far more aggressive than anyone had expected and producers were unprepared. They are starting to gain ground and by mid-year they are expected to have caught up with the majority of current consumer demand. The primary issue now is China."

Steel consumption will surge later this year as orders from Congress's infrastructure spending plan are placed.

Unfortunately, the retirements of key workers as well as a simple lack of hands put pressures on labor costs. Paired with increased wage demands, "Skilled workers have more leverage than they have ever had and the number one means by which companies are expanding their workforce is by poaching from one another." This leads to paying new hires and longtime employees higher wages to disincentivize job hopping.

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

The report concludes, "labor costs soared by over 5.0% last year and these costs are heading in the same direction in 2022."While we may not be out the thicket yet, there is still hope along two of the three economic indicators.

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 Goyerexecutive director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.


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

 


 

IHEA Monthly Economic Report: Lions, Tigers, and Bears? Read More »

Heat Treat Tomorrow – Hydrogen Combustion: Our Future or Hot Air?

OCDoug Glenn, publisher of Heat Treat Today, moderates a panel of 5 experts who address questions about the growing popularity of hydrogen combustion and what heat treaters need to do to prepare. Below is an excerpt of this lively and compelling discussion. 

To view the 1-minute trailer or register to watch this FREE video, go to www.heattreattoday.com/2021-09-H2-Vid

Today’s Technical Tuesday was originally published in Heat Treat Today's December 2021 Medical & Energy print edition.


Introduction

Doug Glenn (DG): Welcome to this special edition of Heat Treat Radio, a product of Heat Treat Today. We’re calling this special episode “Heat Treat Tomorrow: hydrogen combustion. Is it our future or is it just a bunch of hot air?” This discussion is sponsored by Nel Hydrogen, manufacturers of on-site hydrogen generation systems. I’m your host, Doug Glenn, the publisher of Heat Treat Today and the host of Heat Treat Radio. I have the great privilege of moderating this free-for-all discussion today with five industry experts who I’d like to introduce to you now.

Perry Stephens
Electric Power Research Institute (EPRI)

Dr.-Ing. Joachim G. Wünning
President
WS Wärmeprozesstechnik GmbH

First, Perry Stephens. He is the principle technical leader of the Electric Power Research Institute (EPRI) and currently leads the end-use technical subcommittee of the low carbon resource  initiative (LCRI) which is a collaborative eff ort with the Gas Technology Institute (GTI), and nearly 50 sponsor companies and organizations. They aimed at advancing the low carbon fuel pathways on an economy-wide basis for the achievement of decarbonization. EPRI is a member of the Industrial Heating Equipment Association (IHEA).

Joachim Wuenning (Joe Wuenning) is the owner and CEO of WS Thermprocess Technic Gmbh [WS Wärmeprozesstechnik GmbH] in Germany and WS Thermal Process Technology, Inc. in Elyria, Ohio. Joe’s company has been on the cutting edge when it comes to hydrogen combustion. In fact, the last time I heard you, Joe, was at the Thermprocess show in Düsseldorf, where you gave the keynote address regarding the advent and development of hydrogen combustion. Joe’s company has been a leader in hydrogen combustion. Joe’s company is an IHEA member as well. Joe is our European representative, and may provide us with a different perspective.

John Clarke is the technical director of Helios Electric Corporation (Fort Wayne, Indiana), a company that specializes in energy and combustion technologies. John is also a regular columnist for Heat Treat Today and a past president of IHEA.

Jeff Rafter is vice president of sales and marketing for Selas Technologies out of Streetsboro, Ohio and has a rich history in the combustion industry as well, including many years with Maxon Corporation. He’s got 28 years of industrial experience in sales, research and development, and marketing. He’s a combustion applications expert in process heating, metals refining, and power generation and has also served 10 years on the NFPA 86 committee and holds a patent for ultra-low NOx burner designs. He is also an IHEA member.

Finally, we have Brian Kelly with an equally rich history in combustion, spending most of his years at Hauck Manufacturing in Lebanon, PA, where he did a lot in sales and engineering before they were purchased by Honeywell. Brian currently works for Honeywell Thermal Solutions and is also an IHEA member.

Gentlemen, thank you for joining us. Let’s just jump right in. Brian, since I picked on you last, let’s go to you first on the questions.

Is Hydrogen Combustion the Future?

DG: Is this hydrogen combustion thing coming? And, if so, how soon and what’s driving it?

Brian Kelly (BK): It is coming and there is going to be a lot of back and forth in that it doesn’t make sense and all that. It is here. We’re seeing inquiries from customers that ask, “Hey, do we have burners that do this, control systems and stuff that do that?” The news that I get emails on, for example, is that with one of the steel companies in Europe, they already said their plan is totally going to be hydrogen. We’re delivering billets right now of hydrogen.

So, yes, it’s coming. Is it coming soon? It’s here today. Widespread? That’s going to be a longer road. I think you’re going to hear from people that know more about it than I do, but, certainly from industry buzz, we’re testing burners, we’re making sure our burners run on partial hydrogen, full hydrogen, safety valves, control valves, and all that is definitely within a lot of the testing that we’re doing right now beyond the usual R&D on lower emissions burners and things of that nature.

Jeff Rafter (JR): I have a slightly different answer, but I agree with Brian. I think hydrogen combustion has been here for over a century. The difference has been, it’s been largely restrained to a few industries that have a regular hydrogen supply. A great example would be refining and petrochemical industries. We have had, for literally decades, burners designed to burn pure hydrogen, for example, in applications like ethylene crackers.

The fundamentals of hydrogen combustion are very well known. The next evolution that we’re currently in the process of seeing is taking more industries into an availability of hydrogen as a fuel and modifying designs and process heating equipment to accept it. There are fundamentally a lot of changes that occur when you switch the fuel, and we can get into more of those later with more relevant questions, but it doesn’t come without challenges. There is quite a bit to be done, but I think the fundamental science is already well-known. There is a lot of design work to be done and there is a lot of economic and supply development yet to be had.

John Clarke (JC): Yes, I certainly think it is coming, but the timing is uncertain. And, when I say “coming,” I mean deployed in a certain or large volume. When we simply talk about hydrogen, I do think the order of deployment is somewhat predictable and when it comes to pure hydrogen, I think it will likely be deployed first for transportation, and only after that need is met, as a process heating fuel, widely. Now, if there is a breakthrough in battery technology, this order of deployment may change. But, right now, it looks like hydrogen represents an opportunity for higher energy density for long haul transportation. And, if we’re pushing hard to reduce CO2 or carbon emitted, I think policy will be implemented in a means to maximize a reduction of carbon. That’s where I think they’ll be pushing harder.

Now, that said, partial hydrogen, blending hydrogen into natural gas, is likely to occur perhaps sooner than that.

Joachim Wuenning (JW): Not really. I think a lot of things were said correctly and I strongly believe it has to come. If you believe in climate change, it must happen because we cannot use fossil fuels forever. I also don’t believe that we will have an all-electric world. I don’t believe in nuclear power, so we cannot get all our energy from that, therefore, chemical energy carriers will be necessary for storage and long-haul transportation. Is it coming soon? Of course, it is hard to predict how fast it will be. Now, fossil fuel is cheap so it will be hard to compete with as hydrogen is likely to be more expensive.

But certainly, what we see is the requirement from our customers to have hydrogen ready burners. Because, if they invest in equipment at that point, why would they buy a natural gas only burner. They should, of course, look for burners which are able to do the transition without buying all new equipment again. So, we have a lot of projects momentarily to demonstrate the ability of the equipment to run with hydrogen or natural gas and, preferably, not even readjusting the burners if you switch from one to another gas.

Perry Stephens (PS): I’ll try to add something a little different. At EPRI, we’re charged with providing the analysis and data from which other folks, like these gentlemen, are going to try to base important business decisions. Our work hasn’t focused specifically on hydrogen, but, more generally, the class of alternate energy carriers — molecules, gas, or liquid — that can be produced in low carbon first energy ways through renewable energy sources. A lot of our work is focused on understanding the pathways from the initial energy which as a biomass source, solar, wind, could be nuclear, could be hydro. These sources of electric power that ultimately have to be used to produce this low carbon hydrogen. One other pathway is hydrogen or hydrogen-based fuels produce the steam methane reformation process which uses a lot of hydrocarbons but would then require carbon capture and sequestration. The CO2 from these processes could be employed in a circular economy fashion. So, we look at all of these.

The real challenge is the challenge of cost. How do you produce this hydrogen or alternate fuel? And there are many other potential fuel molecular constructs that could be deployed. Ammonia is one being discussed in some sectors. And then how do you transport them, store them, and what is their fuel efficiency and the cost of either new equipment or conversion of existing equipment to deploy those. We’re not specifically focused on hydrogen. It is a very important energy carrier. It can be blended with fossil fuels in the near-term and then maybe expanded in the long term to higher percentages up to pure hydrogen depending on the application, depending on where you produce it. These costs must be evaluated and that is a big job that we’re doing at EPRI with our LCRI initiative right now. We are trying to understand that techno economic analysis, that is, what makes the most sense for each sector of the economy.

Why Not Electricity?

DG: Thanks, guys. Joe had mentioned global warming, a driving force here. Why not electricity? Why don’t we just convert everything over to electricity? Perry, you’re with EPRI, let’s start with you on that. Instead of going just straight-out hydrogen, why not just go to electricity?

PS: I think the question again rephrased might be, “when electricity and when hydrogen” because I think that’s really what we’re trying to decide. There are interesting areas of research involving catalysis techniques that dramatically improve the net energy efficiency of chemical processes, for example, that might make direct electrification of certain processes more competitive. There are electric technologies for the low- to midrange temperatures that are attractive and use pieces of the electromagnet spectrum to produce transformation of products, heating and/or other transformations, that are very cost effective today. So, we judge that a portion, maybe something approaching 30% of the remaining fossil fuel, could be electrified. A certain chunk, a quarter, maybe reduced consumption through energy efficiency, 30% or more through electrification. It’s that difficult-to-electrify piece. Steam-based processes and other direct combustion processes where electric technologies — for one reason or another, don’t look like they offer a strong solution, at least today — that we’re really concerned with. And, both in steam production and direct combustion of fossil fuels today, many cases we’re looking at having to have some sort of alternate combustible fuel.

JC: I’m not sure I completely agree with your question. In some ways, clean hydrogen, or environmentally or low carbon hydrogen, is electricity. It is simply a different means of storing electric power because the source of that is going to be some sort of renewable power, more likely than not, photovoltaics, wind, hydroelectric; those are going to be the electricity we use to break down the water to generate the hydrogen that we then go ahead and store. So, the alternative is whether we use batteries or hydrogen to store this electricity and make it available either in a mobile setting, in a car or a truck, or off-peak times, at times when we are not able to generate electricity from renewables.

I think the question really is more along the line of end use. When are we going to be using electricity for the final end use? We’re kind of process heating guys around this table. I think it’s going to come down to economics, for the most part. And I don’t think we’re quite there yet.

JW: Electricity is fine for some applications. I’ve driven an electric car for the last 10 years, but in long range, I drive the fuel cell hydrogen car from my father, so different technologies for different purposes. There might be batch processes where I can have a break of a week if there is no sunshine and do the batch processing when electricity is available. But if I have a continuous furnace with 100 megawatts which should run 365 days a year, it will be tough to produce the electricity constantly from a renewable basis to fulfill all these requirements. I think it’s just more economic and makes more sense to use the right technology for the right processes. It’s not an either/or. Use the right technology for the right application.

BK: I would just back what Joe says. It can be selective to industry, the furnace type, or the type of material being processed. I know I’ve dealt in my career with a lot of the higher temperature type applications — ceramics and heat treating and things of that nature. If you start getting above 2000 degrees Fahrenheit and up, and especially dealing with airspace, uniformity has a lot to do with it.

Electricity can be hard to get that uniformity without moving fans and having fans that operate at higher temperatures is another challenge. It’s extremely challenging and a big cost factor. What most people have said here is that it is probably not either/or. We see a lot of electricity being used but we’re fossil fuel burner guys, so we’re going to push that efficiency and that kind of cost.

You’re not going to want to miss the rest of this thought-provoking discussion. To watch, listen, or read in its entirety, go to www.heattreattoday.com/2021-09-H2-Reg.

Heat Treat Tomorrow – Hydrogen Combustion: Our Future or Hot Air? Read More »

IHEA Monthly Economic Report: Are You Experiencing Economic Whiplash?

"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 »

IHEA Monthly Economic Report: What Is Our Future? The V, the Swoosh, or the W?

HTD Size-PR LogoStay buckled up, folks! The often-mercurial economic adventure continues. November’s  Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary addresses the crossroad and the economic forecasts that are trending. The summary begins,  “The economy seems to be sitting at another crossroads, and thus far this year there have certainly been many of them. There are basically three forecasts in circulation as far as the coming year is concerned.”

The pandemic shutdown did not affect the construction sector in a significant way, and in many respects, it accelerated demand for homes.

The report defines the three outlooks — the “V,” the “swoosh,” and the “W”– and analyzes which model seems most realistic right now based on real time data, although we know that can change at any moment. The preferred “V”outlook “holds that there will be a rapid rebound in the next quarter or two and this will yield a rebound nearly as quick as the decline. To be honest, the time for the ‘V’ option has largely passed by. We would have had to see some truly dramatic numbers appear by now.”

So, if the “V” is an unlikely option, the summary states the “swoosh” might be the best option: “It asserts that there will be continued real growth in the first quarter of 2021 but tempered a little by continued consumer trepidation and the impact of the continued shutdown. This means that there is not a rapid rebound, but a drawn-out version that starts to look real by the start of Q2.”

The report continues, “The remaining option is the ‘W’ or the double dip recession and that is nobody’s preference. This would be the result of another hard and comprehensive lockdown. It is not likely the entire country would be subject to such a shutdown, but certain states will be affected more than others.”

There is growth, however. As we look specifically at the November indices, all but three of the eleven measured are trending in a positive direction. The summary states, “There are several near universal factors that are driving all of the index readings at this point. The first is a growing level of confidence regarding the performance of the economy in 2021. . . . The second factor stems from the first. That surge of activity will strain capacity in many sectors. . . . and the third is the state of the global economy.”

The major users of steel include construction, vehicle manufacturing, and the oil and gas sector.

Stayed tuned! The end of 2020 and beginning of 2021 promises to be full of excitement.

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: What Is Our Future? The V, the Swoosh, or the W? Read More »

IHEA Monthly Economic Report: RVs, Robotics, and Technology

HTD Size-PR LogoWell, as we approach the end of November 2020 and assess the economic numbers from October, there is still no real clarity to  bring a sense of understanding to our crazy year. As the Industrial Heating Equipment Association’s (IHEA) Executive Economic Summary’s October report begins, “To note that there is nothing about this year that could be considered even close to normal or predictable would be the understatement of the year, if not the decade. This was the most unanticipated and bizarre recession experienced in modern history as it was not organic in any sense. It was an imposed recession that resulted from the attempt to deal with the pandemic and all the numbers for the year have been skewed to the extreme.”

However, the reports states, “This month’s indices are far better than they were a month or so ago, but almost every one of these data points demands an explanation before we have an idea what they might be telling us about the economy.” Of the 12 indices examined, nine of them were trending positive and only three were heading downward. Interestingly, though, “that only tells part of the story.”

The rebound in demand for factory orders has been a bit more consistent than the demand for durable goods and this reflects some shifts in consumer demand. It has been pointed out that consumers have been shifting their purchasing from services to goods and that has been reflected in a variety of ways.

For example, take the data for housing starts. The summary states, “The index showed a decline, but the news has been full of very positive reports on the state of the housing sector. The index shows both the data on single family homes as well as the multi-family unit and there has been a reduction in interest in the apartment option of late.” Additionally, the demand for both single-family and existing homes has been very robust.

The auto sector has also seen interesting movement. RV sales have “never been stronger and the demand for larger vehicles has been strong as people intend to travel in them.”

“There have been several trends emerging over the last few months and the data in these indices reflect them.” The report continues, “The most obvious and expected has been the shift in consumer interest from service spending to buying goods.” Those sectors that have benefitted the most from the shift have been manufacturers, transportation companies, and importers. “The bulk of these purchases have been online and that has spurred dramatic growth in the parcel delivery sector.”

While the U.S. still doesn’t compete effectively in the production of consumer goods, “there has been an increase in demand for the sophisticated machines the US produces – especially in the realm of robotics and technology.”

Companies are turning to technology and robotics at a faster pace than ever and that boosts machine sales.

In conclusion, the reports shares, “The early indicators as far as the economy is concerned continue to be transportation and the credit environment and, in both cases, there is renewed confidence regarding the future. The unfavorable numbers (such as bankruptcy and collections and disputes) have stabilized.”

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: RVs, Robotics, and Technology Read More »