Industrial Heating Equipment Association

One Fix for Heat Treat Brain Drain

Doug Glenn, Publisher, Heat Treat Today
Doug Glenn, Publisher, Heat Treat Today

A Special Report by Doug Glenn, Publisher

Manufacturers with in-house heat treat would benefit from what’s going on this week in Scottsdale, Arizona. As many of you have expressed, experts are leaving your organizations, and they are not easy to replace.

Heat Treat Today recently had a manufacturer in the mid-Atlantic region call to say, “We need help with stress relieving!” They had nowhere to turn so they called us. This same type of thing is happening time and time again across the country as those with in-house heat treat knowledge retire or move on to other companies.

Where does a manufacturer with in-house heat treat turn for heat treating knowledge?

Besides subscribing to one of Heat Treat Today‘s regular newsletters and visiting the website periodically, in-house heat treaters can tap into the resources that have converged on Scottsdale this week. Starting today at the Talking Stick Resort in Scottsdale, North America’s largest gathering of heat treating industry professionals are holding a combined meeting with two of the nation’s most prestigious thermal processing organizations:

Both of these organizations have separate semi-annual meetings, but once every 3 years they have a combined mega-meeting that brings in one of the largest gatherings of heat treat intelligence in all of North America. Companies from Canada, Mexico, and the USA are represented. This week’s meeting has drawn over 200 attendees and is full of educational sessions and networking opportunities to keep North America’s heat treat minds fresh and progressive.

Companies with in-house heat treat should consider tapping into one or both of these organizations to help them fill the brain drain that is happening and will continue to happen over the next decade.

Brain drain is a real phenomenon.

Heat Treat Today spoke with one company who estimated that up to 60 percent of the heat treat brains in their organization will retire within the next 10 years. This is not an isolated case. Baby boomers, who make up the vast majority of today’s heat treat industry brain trust, are beginning to retire and there are not enough metallurgists graduating from North American universities to fill the gap. Where are these manufacturers with in-house heat treat going to turn for specific, real-life heat treat help?

MTI CEO, Tom Morrison seen here with Mary and Doug Glenn of "Heat Treat Today" in Scottsdale, Arizona, as plans are being finalized for this week's big heat treat brain trust meeting.
MTI CEO, Tom Morrison takes a “selfie” with Heat Treat Today’s Mary and Doug Glenn in Scottsdale, Arizona, as plans are being finalized for this week’s big heat treat brain trust meeting.

Both MTI and IHEA encourage manufacturers with in-house heat treat to join their organizations. This would be a great place to start. Both of these organizations are capable of fielding nearly any heat treat-related questions and if they don’t know the answers, they know people who will know the answers.

Both organizations also provide excellent training programs targeted especially for manufacturers with in-house heat treat.

  • IHEA’s combustion, safety, and induction seminars are all highly rated and reasonably priced. For more information on these courses, click here.
  • MTI offers a wide spectrum of heat treating courses in their “Heat Treat Academy”. Some are free, some come at a price. Click here for more information on the Heat Treat Academy.

So, here is a challenge. If you are a manufacturer with in-house heat treat, and your company is located near Scottsdale, Arizona, I suggest you send one or more of your top heat treat personnel over to the Talking Stick hotel/resort/casino sometime on Tuesday or Wednesday to join in on the meetings of top heat treat minds. If you’re brave and compulsive enough to take the challenge, please send me an email and I’ll help make the arrangements.

Otherwise, think about joining one or both of these organizations.

Finally, you can always contact Heat Treat Today with any heat treat related problems or questions.

 

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IHEA Report Shows Industrial Capacity Utilization at Peak Levels

The monthly heat treat industry report released by the Industrial Heating Equipment Association (IHEA) showed year-high industrial capacity utilization coming in with a 77.1% figure, the highest number seen in recent history.

Industrial Capacity Utilization is at a 12-month high.
Industrial Capacity Utilization is at a 12-month high.

The report covers roughly a dozen other key indicators important to many in the heat treating industry. The January report also showed increases in auto production, new home starts, and a handful of other regularly-reported indices. There were some falling numbers: steel consumption and capital expenditures both dipped in December.

Other indices in the report include: metal prices (aluminum, copper, steel, nickel), the purchasing managers index, durable goods shipments, and factory orders to mention a few.

The report does not only report on indices, it also includes commentary from IHEA’s economic consultant who is keenly involved in the heat treating industry.

To receive these monthly reports, contact Anne Goyer, Executive Director at IHEA.

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IHEA Reports Seminar Successes, Announces October Course

The Industrial Heating Equipment Association (IHEA) held its 2017 Fall Seminars at the Westin Poinsett in Greenville, South Carolina, on Tuesday, September 19, and Wednesday, September 20.  Nearly 100 attendees gathered for training on combustion, induction, and safety standards and codes for the thermprocess heating industry.  They also enjoyed IHEA’s tabletop exhibits and reception during the two-day educational series.

The three seminars were held concurrently and delivered pertinent information in combustion technologies, critical safety information for those involved with a wide range of industrial thermprocess applications and concise highlights on the basics of induction technology, applications, and equipment used, which included captive heat treaters.

The Fundamentals of Industrial Process Heating, IHEA’s Online Learning Course, begins October 30. For additional details and registration information, visit http://www.ihea.org/event/FundFall17.

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IHEA Releases 12 Economic Indicators in September: 3 Move Upwards

The Industrial Heating Equipment Association (IHEA) released its members-only report on 12 economic indicators for the month of August – 3 moving upwards, 3 flat, and 6 dipping slightly. The report, released in on September 15th, reported significant gains in new automotive and light truck sales, steel consumption and one other index.

Source: Google Images from Magzter.com

The September 15th report summarizes economic activity for the month of August which predates hurricanes Harvey and Irma which are expected to cause year-end turbulence in economic reporting. Effects of the hurricanes are anticipated to dowse economic activity in September and possibly into October, followed by a rebuilding boom in the final months of the year into 2018. IHEA reports that the effects of the hurricanes are unprecedented in recent history and will make predicting year-end results very difficult for the thermal processing industry.

The increase in new automotive and light truck sales, as well as the upward tick in steel consumption, are believed to be somewhat tied together and possibly aided by a fear of pending import steel tariffs.

In addition to automotive light truck sales and steel consumption, the monthly IHEA report also covers the following economic indices with professional analysis of their impact on the thermal processing industry specifically:

  • New home starts

    Source: Google Images from DealerVideoShowroom.com
  • Industrial capacity utilization
  • Metal pricing – gold, aluminum, copper, nickel
  • New orders (PMI)
  • Capital expenditures
  • Durable goods
  • Factory orders
  • Credit movement
  • Transportation activity index

For more information about this report or for a copy of the report, contact IHEA Executive Director, Anne Goyer, at anne@goyermgt.com.

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IHEA Report Predicts Strong End to 2017

A monthly report issued to member companies of the Industrial Heating Equipment Association (IHEA) reported recently that there “are some important trends that point to a better end to the year.” The report states that one of the main contributing factors is the fact that “exports are surging again.”

Compiled and published monthly by IHEA, this report covers market developments with specific impacts on the thermal processing industry. The report, prepared in cooperation with Armada Corporate Intelligence, analyzes:

  • automotive and light truck markets,
  • new home starts,
  • steel consumption,
  • industrial capacity utilization,
  • metal prices,
  • new orders from PMI,
  • capital expenditures,
  • durable goods,
  • factory orders,
  • and others.

While seven of the eleven indices tracked were trending positive in this month’s report, for the steel market the IHEA report states, “The latest trends as far as steel consumption is concerned are not all that favorable and there will be considerable disruption politically as the details of the steel tariff are developed. The two largest components of steel consumption have always been construction (mostly commercial and public sector) as well as the automotive sector. The news is not all that inspiring on either front. The commercial side of construction has been holding its own, especially as far as medical projects are concerned, but office space has been dwindling as there has not been the demand there used to be. The number of people telecommuting has affected the need for big offices. The public sector is still in the doldrums as there is simply no money for the kinds of projects that once drove steel demand. The auto sector had been booming but that has also shown signs of reversal. The demand for new cars is off from the peaks of a few years ago and the only thing that has saved steel demand is that the vehicles that people are buying are larger (trucks and SUVs).

“On top of this, there is the issue of steel tariffs. It is obvious at this point that a blanket 40% tariff will not be imposed as many of the countries that supply steel to the US are close allies (Canada, South Korea, Japan etc.). The end of June deadline came and went and so did the end of July and now the thinking is that a decision may not come until late this year. The fact is that steel users are deeply concerned about price hikes and there are far more of them than there are domestic steel producers. The end result is unclear as China is the target but they only account for about 6% of the steel imported into the US (Canada alone accounts for about 17%).”

For more information about this report contact IHEA directly at anne@goyermgt.com or click here to join IHEA and begin receiving the entire report every month.

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3 Charter Members Join IHEA’s New Induction Heat Treating Division

Ajax TOCCO Magnathermic, Ambrell and SMS Elotherm have all joined the Industrial Heating Equipment Association’s (IHEA) newest membership division — the Induction Division which focuses on keeping the industry up-to-date on the latest heat treat innovations, best practices and safety standards associated with induction heating. Several national utilities are also involved: Duke Energy, Georgia Power, Alabama Power, and the Electric Power Research Institute (EPRI). At least one other induction company is scheduled to join later this year.

The new division members are in the process of developing content for a 2016 Induction Seminar which will take place later this fall.

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