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NOVEMBER/DECEMBER 2016 | WWW.PLANT.CA | $12
SMARTER
PLANT
LOGISTICS
Clearpath’s OTTO robot
transforms material handling
CME orders double-double by 2030
Solutions for common hose failures
Outlook 2017: Confidence with continuing caution
Trump, Canada and what it all means to NAFTA
Acquiring a company? Check for cyber risks
DAILY MANUFACTURING NEWS www.plant.ca
PLNT Dec2016_AMS.indd 1 2016-11-24 2:25 PM
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2016-11-24 8:57 PM
AM
CONTENTS November/December 2016
Vol. 75, No. 8
FEATURES
15 MEDICAL DEVICE Fanshawe College and
MDDT collaborate on an innovative device
for sufferers of Parkinson’s disease.
16 SECURITY XRCC research is helping
manufacturers meet challenges related
to counterfeit products.
20 THINK LEAN Leverage enterprise
excellence tools to make it easier for
customers to do business with you.
22 CCOHS SAFETY TIPS What you need
to know about the consequences of
workplace violence.
23 TROUBLESHOOTING Common hose
12 AUTONOMOUS VEHICLES problems and practical solutions
Clearpath’s OTTO self-driving vehicles are transforming material handling. to fix them.
29 TRAINING Use the TWI module to
train your trainers.
30 EMPLOYEES Employers are out of touch
with what their workers value.
31 CYBERSECURITY Make assessing cyber
risks a part of your due diligence process.
33 CLOUD Omnichain reimagines your
network of supply partners.
17 OUTLOOK 2017 Manufacturers are primed 19 TRADE Trump presidency makes NAFTA’s
for growth, but they’re proceeding with future questionable, but don’t hit the panic
caution. button yet.
DEPARTMENTS
4 Editorial
6 News
8 Careers
10 Markets
11 PLANT Pulse
34 Product focus: Motors, drives
36 Products and equipment
41 Plantware
Events
26 FUTURE CME lays out its Industrie 2030 32 ENERGY Battery and wood-to-gas 42 Postscript
plan to double manufacturing output in 15 alternatives to traditional energy sources.
years.
COVER IMAGE: RODNEY DAW
PLANT—established 1941, is published 8 times per year by Annex Business Media. Publications Mail Agreement #40065710. Circulation email: stelian@annexnewcom.ca Tel: 416-442-5600
ext 3636 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9. Occasionally, PLANT will mail information on behalf of industry-related groups whose products and services we believe may be of
interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer: privacy@annexbizmedia.com Tel: 800-668-2374.No part
of the editorial content of this publication may be reprinted without the publisher’s written permission. ©2016 Annex Publishing & Printing Inc. All rights reserved. Performance claims for products listed in this issue
are made by contributing manufacturers and agencies. PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT, its affiliates and
assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement
does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices. Printed in Canada. ISSN: 1929-6606 (Print), 1929-6614 (Online)
www.plant.ca PLANT 3
27 8:57 AM PLNT Dec2016_AMS.indd 3 2016-11-24 2:25 PM
EDITORIAL
Welcome to Trump world Publisher
C
anadian manufacturers tend to live on the cautious side of life, playing it pretty Michael King
416-510-5107
safe, and sticking close to home. Their careful view of prospects and opportu- mking@plant.ca,
nities is a common thread running through successive PLANT Manufacturers’ mking@cienmagazine.com
Outlook surveys, and such is the case with the latest study.
Editor
Our companies are often described as more risk averse than their more produc- Joe Terrett
tive (by 18% per worker) US counterparts, and that may be so. Most are small (less 416-442-5600 ext. 3219
jterrett@plant.ca
than 100 employees), family or owner run, they’re operating in a smaller pond with
less access to giant pools of investment capital, and their costs are high. Associate Editor
Matt Powell
Almost two-thirds of their revenue comes from domestic sources, and about 25% 416-510-5145
from the US, with a smattering coming from other parts of the world. Most (32%) mpowell@plant.ca
find the chief impediment to more adventurous exporting is intense competition.
Art Director
Despite all that talk about the need for companies to diversify their markets, Andrea M. Smith
there’s the backlash against global trade to consider. Britain pulled a Brexit, CETA
National Account Manager
was almost scuttled by the burghers of an obscure region in Belgium and the Ilana Fawcett
Trans-Pacific Partnership ran into trouble during the US election. 416-510-5202
ifawcett@plant.ca
Then Trump happened.
The president-elect’s unlikely victorious bid for the White House points to a likely Account Coordinator
Barb Vowles
In
disruption of global trade and international relationships. That includes Canada.
416-510-5103
Donald has made his position clear. America first. Make America great again. bvowles@annexbizmedia.com F
He’s bringing manufacturing jobs back to America. NAFTA is the worst trade deal
Annex Business Media
n
in history. And “no” to the Trans-Pacific Partnership. Vice President a
Suddenly the world is looking a lot more protectionist, especially in our neigh- Tim Dimopoulos
(416) 510-5100
bourhood. tdimopoulos@annexbizmedia.com
There is nothing to indicate Trump’s version of fair dealing will be to Canada’s
President & CEO
benefit. But if he tears up the NAFTA agreement, we still have the Free Trade
Mike Fredericks
Agreement (FTA) to ensure tariff-free commerce, right?
Don’t bet on it. Trump promised jobs for America. So what does that mean to Circulation Manager
Beata Olechnowicz
the automotive sector? Unifor just wrapped up four-year contracts with the Detroit 416-442-5600 ext. 3543
Three worth roughly $1.6 billion in Canadian investments. How will auto invest- bolechnowicz@annexbizmedia.com
ments fit into Trump’s “America first” world? Ford has already walked back plans Subscription Price
to shift Lincoln production from Kentucky to Mexico. Canada $72.50 per year, US $146.95 (US)
And Trump is a climate change denier. He intends to sweep aside Barack per year, Foregin $166 (US) per year. Single
Copy Canada $12.00. Add applicable
Obama’s environmental initiatives as the Trudeau government and the provinces taxes to all rates. Combined, expanded In
or premium issues, which count as two
prepare to levy carbon reduction costs on consumers and businesses – another
subscription issues.
w
potential competitive disadvantage for our home team. fin
Trump also plans to lower corporate taxes and repatriate cash from foreign Mailing Address
ar
Annex Business Media
profits. Mathew Wilson, vice-president of national policy at Canadian Manufactur- 80 Valleybrook Dr., us
ers & Exporters, says that could have a direct impact on Canadian manufacturing’s Toronto, ON M3B 2S9
competitiveness and ability to attract investment. plant.ca
Tel: 416-442-5600,
CME has released an ambitious plan for manufacturers that would double output Fax: 416-510-5140
and exports. Are companies ready to meet the challenge, especially in a Trump
Customer Service A
world? Silva Telian
The Outlook 2017 survey (and other studies) suggest we have some work to do. 416-442-5600 ext. 3636 W
stelian@annexnewcom.ca
Manufacturers hesitate on matters of investment in machinery, equipment, technol- Ri
ogy and innovation; and they lag in the adoption of technologies that would make
their businesses more productive. Co
“We are not investing enough,” Wilson warns, noting that since 2002, investment Co
in new machinery has dropped 65% compared to the US – the worst in the G7.
Q
That has to change. Manufacturers must become more competitive, which
requires investments in hard and soft technologies that will drive up productivity. W
Diversifying markets outside the US is no longer a should do, but a must do. The po-
H
tential for growth and expansion is out there – and it’s no longer safe to play it safe.
D
Joe Terrett, Editor We acknowledge the [financial] support
Comments? E-mail jterrett@plant.ca. of the Government of Canada.
4 PLANT November/December 2016
CIENPL_
PLNT Dec2016_AMS.indd 4 2016-11-24 2:25 PM PLT_Exa
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NEWS
AMTB gets $12.7 FedDev funding Biomass, composites
BULLETINS For advanced robotic laser welding technology industries get $2.9M
Global engineering firm SNC-Lavalin, WOODSTOCK, WINNIPEG — Composites Inno-
based in Montreal, has been awarded Ont. — Auto parts vation Centre Manitoba (CIC) has
a contract by Norilsk Nickel to imple- manufacturer Arce- received $2.9 million in funding to
ment a sulphur recovery project at its lorMittal Tailored develop biomass quality standards
Nadezhda Smelter, in Krasnoyarsk Blanks Americas measurement techniques, and for
Region, Russia. It’s one of the largest Ltd. (AMTB) is overcoming technology barriers to
sulphur dioxide mitigation projects in getting an invest- the adoption of natural fibres in the
the world. SNC-Lavalin will handle the ment from FedDev composites industry.
project through its Toronto and Moscow Ontario of up to The federal Growing Forward 2
offices. SO2 contributes to the formation $12.73 million to (GF2) AgriMarketing Program will
of acid rain. adopt advanced provide up to $982,075 to identify
technologies. quality gaps and develop quality
Unifor has wrapped up four-year The company, Jason Tong, production supervisor at AMTB and standards and measurement tech-
contracts with the Detroit Three, starting based in Wood- Peter Fragiskatos, MP for London North Centre. niques for commercializing biomass
with General Motors ($554 million in stock, Ont., makes PHOTO: GOVERNMENT OF CANADA in four sectors: biomaterials, bio-
investment promised) and Fiat Chrysler auto parts using chemical, biofuels and bioenergy.
Automobiles of Canada ($325 million). lightweight steel. The investment contributes to AMTB’s The GF2 AgriInnovation Program
FCA has 9,750 members. Ford Motor Co. robotic laser-welding project. will provide up to $1.9 million for
of Canada’s 6,700 members have also The company describes its tailored blanks as sheets of research into how the strength and
signed on. The automaker is investing steel that may combine several grades, at various thick- quality of composites can be affect-
$700 million. nesses with different coatings. The different parts are laser ed by farming practices, varieties
welded together for vehicle bodies and closures. Stamped and weather.
Approximately 7,500 positions will be steel parts are lighter than those made of conventional steel, The Winnipeg-based CIC will also
affected as Montreal-based Bombar- making them more fuel efficient and stronger. develop more robust composites
dier Inc. cuts its global workforce and The advanced manufacturing project has also in- that combine fibres with plastic
streamlines its facilities through 2018. creased the company’s footprint with the retrofitting of its resins to produce parts for buses,
About 2,000 jobs will come out of Cana- 93,000-square foot facility in Woodstock. Completed prod- cars and farm equipment.
da. Globally, two-thirds will come from ucts will be used in vehicles assembled at the FCA Canada The CIC is a not-for-profit cor-
the rail division and the rest from aero- assembly plant in Windsor, Ont. poration that supports research,
space. However, there will be strategic AMTB is owned by ArcelorMittal Canada Inc. in Hamil- development and the application of
hiring to support the CSeries aircraft and ton, which is owned by Luxembourg-based ArcelorMittal, a composite materials and technolo-
Global 7000 business jet. global steel and mining company with operations in over 60 gies for manufacturing industries.
countries.
The Group of Experts in Automation and
A new home for
Robotics (GEAR), an initiative of Canadi-
an Manufacturers & Exporters (CME),
Heroux-Devtek
will host technology demonstration
workshops and related events through- wins $11M Northern Transformer
out Ontario to help raise awareness of BAE deal Facility in Maple, Ont. built with room to grow
the advantages in adopting automation MAPLE, Ont. —
and best practices. Partners include LONGUEUIL, Que. — Héroux- Northern Trans-
Festo and ABB, Québec’s Réseau des Devtek Inc. has landed a $11 former Corp., a
Équipementiers en Automatisation In- million deal with BAE Systems to North American
dustrielle (REAI) and Sheridan College. supply landing gear shipsets for manufacturer of
Visit www.gearcanada.ca. the Hawk, an advanced jet trainer electrical power
aircraft. transformers, has a The Northern Transformer team in the Maple
CO2 Solutions has received a notice of The aerospace company based in new 105,000 square- facility. PHOTO: NORTHERN TRANSFORMER
a patent allowance for a process that Longueuil, Que. will manufacture foot facility.
captures CO2 from gas using carbonic and assemble the replacement No financial details are cent to the factory.
anhydrase and potassium carbonate. shipsets and hydraulic actuators. available but the Maple, The company has also
The Quebec City-based developer of car- BAE, a defence, aerospace and Ont. state-of-the-art facility invested in hiring additional
bon capture technologies said potassium security company based in the UK, includes 90,000 square-feet production, engineering and
carbonate is a highly stable and benign will install them on an unnamed of factory space with an- support teams.
solvent, with no toxic degradation or export customer’s fleet as part of other 15,000 square-feet of Northern Transformer
waste issues. CO2 Solutions said the a planned aircraft maintenance office space for engineering designs and manufac-
patent will have significant value relative program. and customer support. tures liquid-filled power
to the use of carbonic anhydrase to Deliveries are set for early 2018 and An additional 55,000 transformers, grounding
improve CO2 absorption and desoprtion. extend through the following year. square-feet of production transformers and specialty
expansion space is adja- transformers.
6 PLANT November/December 2016
PLNT Dec2016_AMS.indd 6 2016-11-24 2:25 PM
Magna wins a top SPE award Austrian freighter buys
For innovative laser cutting and welding three TRAXX AC3s
TROY, Mich. — Glob- Deal with Wiener Lokalbahnen Cargo
al auto supplier Magna
includes eight-year maintenance contract
International Inc. has won
an innovation award for BERLIN, GERMANY — Bombardier Transportation has
its unique laser cutting and signed a deal with the Austrian rail freight operator Wiener
welding of front and rear Lokalbahnen Cargo to deliver three TRAXX AC3 last mile
fascias for the 2017 Chev- locomotives.
rolet Camaro ZL1. No financial details were provided but the contract in-
The Aurora, Ont.-based cludes full maintenance and servicing for eight years, and an
manufacturer received the option for three additional locomotives with the possibility
Magna wins the top SPE award in the Process/Assembly/
top award in the Process/ of extending the maintenance contract for another 24 years.
Enabling Technologies category. PHOTO: MAGNA
Assembly/Enabling Tech- Last Mile
nologies category at SPE’s functionality
Automotive Division 2016 Innovation Awards Competition in Livonia, Mich. allows the op-
The process, which can be applied to other plastic exterior components, is used erator to shunt
instead of punch and ultrasonic welding to provide greater flexibility for low- the locomo-
er-volume programs. tives on feeder
This win follows a near sweep at the SPE Central Europe Automotive Awards tracks by using
in October. The company won five trophies, including the Grand Award for a an additional
unique, lightweight skid plate made for a European automaker. The laser cutting diesel engine
and welding process also won the SPE Detroit Chapter’s Innovation Award in and battery.
the exteriors category. Bombardier’s TRAXX AC3 locomotive. PHOTO: BOMBARDIER This eliminates
Magna has 312 manufacturing operations and 98 product development, engi- the need to use
neering and sales centres in 29 countries, and employs more than 155,000 people. an extra diesel locomotive. TRAXX AC3 locomotives are
powered by energy efficient MITRAC traction converters.
Montreal-based Bombardier, its rail businesses based in
Giant turbine to harness Fundy tides Berlin, said the new locomotives will go into operation in
Austria and Germany next year.
Cape Sharp Tidal completes subsea cable connection
PARRSBORO, NS — Cape Sharp to the onshore substation.
Tidal has successfully deployed its FORCE is a research centre for FEEDBACK
first two-megawatt tidal turbine in the instream tidal energy development. It
Bay of Fundy at a Nova Scotia test site
near Parrsboro, lowering it to the sea
hosts the technology developers who
will attempt to find ways to harness an Trade with China
floor in a four-hour operation during estimated 2,500 megawatts of extract- Re: Why Canada should avoid free trade with China, Postscript,
an ebb tide. able power. Gwyn Morgan, October 2016.
The marine operations team The commissioning program Well written and
connected the turbine cable tail with involves testing the connection, com- I totally agree!
the 300-metre interconnection cable munications and electrical systems While I am all
installed in the Minas Passage last to confirm energy is produced by the for the removal
winter. world’s highest tides. of trade barriers,
The cable connects the 1,000-tonne When the subsea cable is connect- there must be an
turbine’s power and data system to a ed to the grid, it will be the first such understanding
16-megawatt subsea export cable at device at FORCE, and the largest in that any agree-
the Fundy Ocean Research Centre for North America. ment benefits all
Energy (FORCE), which is connected Cape Sharp Tidal is a partnership parties.
involving OpenHydro, an We must con-
Irish company that manu- tinue to trade
factures and installs marine with China but
turbines; and Emera, a Hal- ensure that Canadian interests are best served.
ifax-based energy services Not protectionism, but rather conservative, structured change.
company. Skip MacLean
Spokeswoman Sarah Tru Tech Doors
Dawson told Canadian Vaughan, Ont.
Press Cape Sharp Tidal
partnership plans to install We’d like to hear from you. Send comments to jterrett@plant.ca
a pair of two megawatt, in- with your name, address and phone number. Comments will
Cape Sharp Tidal lowers its tidal turbine into the water at its Bay stream tidal turbines at the be edited.
of Fundy test site near Parrsboro, NS. PHOTO: CAPE SHARP TIDAL
testing site.
www.plant.ca PLANT 7
PLNT Dec2016_AMS.indd 7 2016-11-24 2:25 PM
NEWS
$485,000 to develop A-LARS
CAREERS Kraken’s systems supports UMV recovery
Canadian Manufac- ST. JOHN’S, NL — Kraken Sonar Inc.’s subsidi-
turers & Exporters ary Kraken Sonar Systems Inc. will receive feder-
(CME) has a new al R&D funding of up to $485,000 for the develop-
board chair. Rhonda ment of an autonomous underwater vehicle.
Barnet, a director on The non-refundable financial contribution
CME’s board since from the National Research Council of Canada’s Kraken’s autonomous launch and recovery system. PHOTO: KRAKEN
2013, is the vice-pres- Industrial Research Assistance Program (www.
ident of finance at nrc-cnrc.gc.ca/eng/irap/index.html) will be ap- and without damage.
Steelworks Design Rhonda Barnet plied to the development of autonomous launch In both military and commercial markets,
Inc., a designer and and recovery systems (A-LARS) for unmanned unmanned surface and underwater vehicles are
fabricator of custom automation for man- maritime vehicles. the way of the future and present a wide range of
ufacturers in Peterborough, Ont. David Kraken Sonar Systems, a marine technology revenue opportunities, said Karl Kenny, Kraken’s
MacLean has been appointed divisional company based in Conception Bay, NL, makes president and CEO. “Having in-house capability
vice-president of CME’s Alberta division. software-centric sensors and underwater robotic to design and manufacture autonomous launch
Previously, he was vice-president, com- systems. and recovery systems will add significant benefits
munications and policy, at the Alberta The initial A-LARS will support Kraken’s as we continue to evolve our sensors-to-systems
Enterprise Group in Edmonton. KATFISH Synthetic Aperture Sonar underwater strategy.”
towbody. The NRC funding will be used to expand
Cos Phi, a manufacturer of Power Factor Kraken said next-generation surface vessels Kraken’s Handling Systems Division based in
& Power Quality correction technology will carry a variety of unmanned vehicles and Dartmouth, NS. It helps with potential handling
based in Hensall, Ont., has appointed modular mission packages that will require systems work related to the Canadian Surface
Ann Barteaux general manager. Her specialized launch and recovery equipment. The Combatant program, the procurement project
background covers management in A-LARS will help bring an unmanned vehicle and that will replace the Iroquois and Halifax-class
government, industrial ISO and health its payloads aboard a host ship safely, efficiently warships with up to 15 new ships.
and safety.
D-BOX Technologies Inc., a manufactur-
er of immersive motion technology based
Boralex takes IPL extends reach with $35M
in Longueil, Que., has engaged Larry
25% interest in acquisition of US packaging firm
O’Reilly Entertainment Consulting as a Niagara wind farm Encore Industries adds three plastics moulding
special sales advisor for major accounts. MONTREAL — Renewable energy
O’Reilly has more than 22 years of expe- company Boralex Inc. is acquiring a 25%
plants to expand North American reach
rience at Imax Corp., including president interest in a 230-megawatt Niagara Re- MONTREAL — IPL Inc. is acquiring a US plastics manufac-
of world sales. gion wind farm in which Enercon Canada turer Encore Industries Inc. for US$35 million, making it the
Inc. has a majority interest. third largest player in America’s plastic injection moulded
Claude Goulet has joined KSB Pumps, a Enercon Canada, with offices in products market.
pump manufacturer in Mississauga, Ont., Montreal, Toronto and Dartmouth, NS, IPL, a Montreal-based manufacturer of injected moulded
as sales manager. Goulet is a 30-year and production facilities in Quebec plastic products, is also investing $36 million to expand
veteran of pump and seals sales special- and Ontario, is a manufacturer of wind production capacity in Canada and the US.
izing in oil, gas, chemical/petrochemical turbines. Encore, based in Sandusky, Ohio, makes rigid plastic
and other industries. Previously he was a Enercon’s $825.5 million project locat- packaging products for the North American industrial pack-
regional sales manager with Sulzer. ed in the Lincoln, West Lincoln, Wainfleet aging market operating from facilities in Ohio, Georgia and
and Haldimand counties will include 77 Minnesota.
Walter, a cutting tool manufacturer in Enercon E-101 3 megawatt wind turbines. The acquisition
Waukesha, Wis., has appointed Kurt The project, which has a 20-year represents a collab-
Ludeking director of marketing for its feed-in tariff deal with the province’s oration involving
world west region, which includes all the Independent Electricity System Operator, IPL’s parent com-
Americas and Great Britain. He moves was commissioned on Oct. 30. pany One51, and
up from product manager for turning and The construction phase created 700 partners Caisse de
indexable drilling products. jobs and will create another 25 direct dépôt et placement
long-term jobs during operations. du Québec and the IPL’s St. Damien, Que. manufacturing site.
CCL Industries Inc., a Toronto based Six Nations of the Grand River De- Fonds de solidarité PHOTO: IPL
manufacturer of specialty labels and velopment Corp. also has a stake in the FTQ.
packaging, has appointed a new project. It will expand opportunities for IPL in the North American
president for its Checkpoint business. Boralex, based in Kingsey Falls, Que., market, add an extensive customer base, add to its capacity,
John Dargan joins CCL from Jabil Circuit develops, builds and operates renewable and enhance its new product development capabilities.
Inc., a St. Petersburg, Fla. electronics energy power facilities in Canada, France IPL has plants in Saint Damien, Que., Edmunston, NB
manufacturer. and the US. and Lee’s Summit, Mo. One51, based in Dublin, focuses on
plastics and environmental services.
8 PLANT November/December 2016
PLNT Dec2016_AMS.indd 8 2016-11-24 2:25 PM Plant_IFP
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PLNT Dec2016_AMS.indd 19 2016-04-25
2016-11-24 3:22
2:25 PM
MARKETS
ENCLOSURES
CYBERSECURITY
Non-metallic
More spending to ward off market soars
network attacks
S ophisticated internet attacks are evolving, but companies
are better equipped to handle potential threats.
T he global market for
non-metallic enclosures
is looking at more than
Organizational spending on IT security is expected to in- 20% growth, but products
crease 9% by 2018, providing a big boost in global markets. of the metallic enclosures
The global cybersecurity market should reach $85.3 billion will see a decline.
by 2016 and $187.1 billion by 2021, reflecting a five-year com- The electrical enclosure Environmental factors are shifting the focus on new
pound annual market is growing at a materials. PHOTO: THINKSTOCK
growth rate of significant rate, reaching
17%. $5 billion this year and $7.3 billion by 2021. Five-year growth will be 7.9%.
Factors The non-metallic market should reach $3.9 billion by 2021, up from
driving growth $1.5 billion this year, for a 21.1% growth rate over five years. Used in-
include the doors and outdoors, they’re durable, corrosion-resistant, lightweight and
complexity and last longer than metallic enclosures.
frequency of The metallic market should total $3.3 billion by 2021, down from $3.5
threats, increas- billion in 2016, for a decline of 0.6% over five years. Being used mainly in
ing severity explosion-proof environments and because they’re made from electrical-
of cybersecu- ly conductive materials, they have a tendency to fail in high humidity and
IoT, big data and cloud computing provide opportunities rity, stringent rainy environments, which is a factor in their decline.
for cyber developers. PHOTO: THINKSTOCK government “Increasing raw material prices and stricter environmental regulations
regulations and on electrical enclosures used in hazardous locations have forced com-
compliance requirements, ubiquity of online communication, panies to focus on developing enclosures with advanced technologies,”
digital data and social media. says BCC Research analyst Aneesh Kumar.
Rising adoption of technologies such as the Internet of There’s pressure to develop environmentally friendly recyclable elec-
Things, evolution of big data and cloud computing, increasing trical enclosures, even in the Asia-Pacific region and other developing
smartphone penetration and the developing market for mobile regions, which poses a challenge to small domestic players.”
and web platforms, will provide opportunities for vendors. Rapidly growing economies such as China and India have boosted
Network security, which had the highest market revenue in demand in the past five years. Europe has also become the hub for west-
2015 based on solution type, is expected to remain dominant, ern and eastern markets to outsource enclosure manufacturing. North
while substantial growth (27.2% over five years) is anticipated America has seen increased, pent-up demand as OEMs replace existing
in the cloud security market. mild steel or wooden products.
AUTOMOTIVE COATINGS
Increased vehicle sales drive demand
A utomotive coatings are showing steady growth, driven primarily by
the North American and Asia-Pacific markets. Mature markets will
also provide major opportunities for suppliers in developing countries
by outsourcing manufacturing and setting up new plants.
The market is expected to reach $21 billion this year, and $26 billion
by 2021, for a five-year compound annual growth rate of 4.4%. OEM
Demand for environmentally-friendly coatings will increase. PHOTO: THINKSTOCK
coatings will see five-year growth of 4.2%, and 4.6% for refinish coatings.
The global economic recovery is driving vehicle sales, particularly in production needs to meet growing demand for new vehicles. This will
North America, thanks to increased, pent-up demand. also drive R&D investments along with ongoing product development
“Asia-Pacific has become the hub for Western markets that are out- to improve coating performance.
sourcing the manufacture of coatings. Also, in this region, automotive Fluctuations in the prices of raw materials including pigments,
coating refinishing should see rapid growth over the next seven years, resins, titanium oxides and other additives, will keep market growth
owing to rising consumer spending power in emerging economies of in check. Another challenge will be harmful environmental effects
countries such as China, India and Thailand,” says Aneesh Kumar, a from conventional solvent-borne coatings, and the industry’s inability
research analyst at BCC. to meet OEM expectations on environmental durability and coating
Increasing OEM demand for greener coatings comes from increasing sustainability.
Reports by BCC Research, a market research firm based in Wellesley, Mass.
10 PLANT November/December 2016
PLNT Dec2016_AMS.indd 10 2016-11-24 2:25 PMBusiness improves
PMI gains with new work,
higher employment numbers
C
anada’s manufacturers report a billions of chained (2007) MANUFACTURING OUTPUT RISES
dollars – all industries
slight improvement in business 1,700 Real gross domestic product rose 0.2% in
conditions during October, regis-
1,680 August, following a 0.4% increase in July,
tering a 51.1 on the Canada Manufac-
1,660 reports Statistics Canada. Manufacturing’s share
turing Purchasing Managers’ Index
rose 0.3% with increases in output for durable
(PMI). Their renewed confidence 1,640
(0.3%) and non-durable goods (0.3%). Gains in
is driven by a rise in new work and 1,620
durable goods from primary metal and machinery
greater employment numbers. 1,600
manufacturing were partially offset by declines
That’s a gain from September’s sev- 1,580 in fabricated metal products, miscellaneous
en-month low of 50.3, but still short 1,560 manufacturing and electrical equipment,
of the 52.4 survey average.
1,540 appliances and components. Beverage and
The PMI, which polls purchasing
1,520 tobacco, as well as food manufacturing drove
executives from 400 Canadian manu- Aug. Aug. gains in non-durable goods.
2011 2012 2013 2014 2015 2016
facturers, shows production volumes
Source: Statistics Canada
stagnating for the month with sub-
dued demand and continuing efforts
1.3%
to reduce finished goods inventories.
60.3
Operating margins were also eroded
as factory gate charges fell against
intense competition for new work,
and input costs increased.
There was some recovery in
volumes, which some firms linked Manufacturing’s reading on the CFIB
to new product launches and dis- Business Barometer index for October, with
counting. But PMI research firm IHS anything over 50 indicating an upbeat mood
Markit said there were also reports among smaller companies. Their top cost
that subdued energy sector demand constraints are taxes and regulations; fuel
had weighed on volumes. and energy; and insurance.
And export sales showed little
change, which nonetheless compared
favourably to marginal declines in The pace of growth for average global trade flows between
the third quarter. 2009 and 2015, according to the World Trade Organization.
Employment growth rose across Between 1949 and 2008, average global trade flows
$11.2B 10.6%
the sector, although it was marginal increased 10% annually.
as some manufacturers reported
hiring freezes at their plants.
IHS Market said the month’s data Percentage of GDP
pointed to a lack of pressure on Canada spends on
capacity, with work backlogs broad- healthcare. A Fraser
ly unchanged despite worsening Institute report says
pressures. Canada is among the
Vendor performance deteriorat- most expensive universal-
ed at one of the fastest rates since Exports to countries other than the US, which were up 2.3% access healthcare
2014, which the researcher linked to in September. Statistics Canada reports higher exports to the systems in the OECD,
capacity cutbacks among suppliers, UK ($175 million) and India ($147 million) were partially offset but its performance is
alongside low stocks and supplying by lower exports to China (down $206 million). modest to poor.
delays. Some companies boosted
their stocks of purchases, which
contributed to a rise in input buying
for the first time since June. The percentage of Canadian manufacturers that rate their concern about
Input cost inflation hit a three- cybersecurity risks as medium to high, according to PLANT’s Manufacturers’
month high for the month, partly at- Outlook 2017 study. The Government of Canada notes in a recent one-year
tributed to higher prices of imported period, 86% of large organizations experienced a cyber attack. Loss of
70%
raw materials. intellectual property as a result
International research firm IHS of such attacks doubled between 2006 and 2008. Visit
Markit produces the PMI with www.publicsafety.gc.ca and search “cyber” for
Canada’s Supply Chain Management information on Canada’s Cyber Security Strategy.
Association.
www.plant.ca PLANT 11
PLNT Dec2016_AMS.indd 11 2016-11-24 2:25 PMAUTONOMOUS VEHICLES
OTTO-mating
MATERIAL CLEARPATH
HANDLING
TRANSFORMS
IN-PLANT
LOGISTICS
The Waterloo, Ont. innovator’s
self-driving vehicles help
manufacturers embrace Industry 4.0.
BY MATT POWELL, ASSOCIATE EDITOR
C
learpath Robotics was founded in 2009 on
the premise that robots could be used to
handle the world’s most “dangerous, dull
and dirty” jobs. The company had a humble
beginning, its goals developed by a small
group of University of Waterloo mechatron-
ic engineering students. Its first batch of
autonomous robots were deployed mostly for
research that involved entering unwelcoming
environments to perform tasks that may not
have been safe for humans.
But the company, headquartered in the
Canadian tech hotbed of Waterloo, Ont., has
come along way since if was first profiled by
PLANT last year as an up-and-comer. It’s
now a quickly ascending developer of super
high-tech robotics technologies deployed by
500 companies in 40 countries. That includes
partnerships with some of the world’s biggest
brands, such as Caterpillar and General Elec-
tric, which Clearpath has tapped for private
equity funding to build the next generation of
its self-driving vehicle technologies.
In 2015, it introduced a new line of robots
slated to become the company’s future, and
it’s going after an entirely new market seg-
ment, aspiring to become a global leader in
the manufacturing material handling sector.
Clearpath aims to leverage increased depen-
dence on automation and robotics, and ride
an on-shoring trend that’s bringing manu-
facturing production back from low-cost
jurisdictions to North America.
After two years of development, the robot-
Simon Drexler, director of industrial solutions at OTTO Motors, using the OTTO 1500 self-driving vehicle as a work surface. ics innovator has introduced OTTO to the
PHOTOS: RODNEY DAW world, it’s first self-driving vehicle for intral-
12 PLANT November/December 2016
PLNT Dec2016_AMS.indd 12 2016-11-24 2:25 PMogistics and material handling. The vehicles,
which now come in two models (OTTO 1500
and OTTO 100), efficiently transport heavy-
load materials in industrial and warehouse
centres. The purely interconnected setup
combines hardware, electrical and software
engineering – the new norm in manufactured
technologies delivered as a “system” instead
of a “product.”
“We’re only scratching the surface with
the potential of this technology,” says Simon
Drexler, Clearpath’s director of industrial
systems. “The future of this technology is to
broaden the spectrum of the material han-
dling pie, and the exciting thing about OTTO
is that it provides manufacturers with a way
to harness real time data that businesses can
use to make important operational decisions
and make themselves more efficient.”
But OTTO is part of a bigger manufactur- The OTTO 1500 self-driving vehicle performs tests with a lift and lower appliance.
ing story as companies deal with a wave of
operational changes that will require them to front- and rear-mounted LIDAR sensors and Then the navigation system goes to work,
increase the adoption of automation tech- a built-in collision avoidance system detects allowing the robot to roam freely. OTTO is
nologies. This high-tech robot addresses a plant floor obstacles, while a 360-degree LED built on SLAM technology (Simultaneous
number of challenges related to productivity, lighting system and audio communicate the Localization and Mapping), making it smart
efficiency and even labour shortages. vehicle’s intentions. enough to identify optimal paths from A to
Drexler believes material handling is an B and recalculate a new path if the original
important place to start when it comes to High-tech tour guide route becomes blocked. There is no end to
understanding how a manufacturer operates, Most impressive is the unit’s ability to inves- the number of vehicles that can be introduced
how it could improve its efficiency and how tigate and navigate new spaces in the same to a facility – fleets working together and
productivity could be improved. way as a human. LIDAR laser scanners “map” communicating via a WiFi network.
“When you automate your material handling the plant during the robot’s first tour. Points While OTTO’s technology is impressive, the
activities with a technology such as OTTO of interest are highlighted including walls and complete package is meant to satisfy chang-
and get your hands on real-time data that’s stationary shelves. Clearpath’s software acts ing factory floor dynamics, which are trending
sent to a centralized hub, you have the ability as a tour guide, marking specific areas of im- to requiring more flexibility, responsiveness
to know everything you need to know about portance such as intersections, material drop and efficiency to meet growing customer
your operation.” off points and mandatory stop points. demands for product customization and
The indoor robots are tough, built with
industrial grade components that withstand
harsh rigours of industrial environments. A
one-piece welded steel frame delivers the
strength the vehicles need to move payloads
up to 1,500 kilograms at speeds up to two
metres per second, with a zero turning radius.
Eight wheels power a passive suspension:
four caster type (one at each corner), a sup-
port wheel mid-body on each side and two-
drive wheels near the centre of the unit. Two
coordinated servomotors drive the wheels
and allow it to spin at a zero turn radius. Both
the 1500 and 100 models (for payloads up to
100 kilograms) are completely configurable
and allow the vehicle, powered by a propri-
etary software package, to drive underneath
an object to pick it up, or travel under a cart
and move it somewhere else.
And unlike automated guided vehicles
(AGVs), OTTO is meant to work with exist-
ing factory personnel (not replace people)
while staying out of their way. Safety-rated OTTO’s electrical and mechanical designers work in an open-concept office space to foster collaboration.
www.plant.ca PLANT 13
PLNT Dec2016_AMS.indd 13 2016-11-24 2:25 PMcomplexity. They’re also in line to replace
traditional AGVs that require costly and rigid
changes to infrastructure.
OTTO doesn’t require any fixed-infrastruc-
ture such as bar codes, magnetic tape or
beacons to safely navigate a plant. Its propri-
etary internal mapping technology brings the
vehicles, and the companies using them, into
the realm of Industry 4.0, powered by Internet
of Things (IoT) technologies that communi-
cate with entire manufacturing supply chains
through a central network.
Clearpath has placed a premium on
delivering a tool that addresses the types of
technology adoption manufacturers are using
to improve productivity, while eliminating
low-value, manual labour and shifting employ-
ees into higher-valued positions.
Although the idea of moving boxes and
components around a plant may seem simple
enough, it is a critically important part of
the automated supply chain that will benefit
significantly from technologies like OTTO. The OTTO family of robots: the OTTO 1500 (top) and OTTO 100 (bottom).
Manufacturing is moving at a velocity
never seen before, mainly by customer driven fixed and limits the potential of an operation, In June, OTTO helped Clearpath attract
demands based in the variety of the goods placing a glass ceiling on productivity,” says $30 million in equity funding from a group
they purchase. More product customization is Drexler. of investors led by iNovia Capital, including
becoming the norm, and with that an explo- Clearpath sees manufacturers responding Caterpillar, GE Ventures and Silicon Valley
sion of SKUs within a manufacturer’s stores to assembly-floor challenges by adopting Bank. Drexler says the Series B funding will
and warehouses. methods such as mixed-model assembly lines be used to scale and grow OTTO’s business,
“Automation in the material handling space and just-in-time, kit-based delivery to produce and eventually deliver the robots globally.
hasn’t changed in decades, and it’s resulted smaller batch runs with a great variation of For now, Clearpath is focused on the North
in a situation where automation is generally products. American market.
“We want to make sure we’re responsi-
Improving efficiency bly scaling our operations and integrating
Component proliferation is growing, as cus- capability. We don’t want to grow too fast,”
tomers demand more complex products at a he adds with a chuckle. “The Series A funding
much higher velocity. Thing is, this is creating we received was about further validating the
efficiency issues for manufacturers slow to product and enhancing our development team
adapt their processes to meet these needs. to get to the point we’re at today. We’re com-
Traditional automation and material handling fortable with the idea of scaling up, but doing
systems are typically built into existing infra- so responsibly.”
structure and can’t be cost-effectively adapt- This year has been a good one for Clear-
ed to handle ongoing changes. As a result, path, which included a Stevie Award win
manufacturers are struggling to contend with for Best New Industrial Product at the 13th
the logistics of product complexity, which Annual International Business Awards. And
starts in the warehouse and the way materials General Electric has deployed a fleet of OT-
are transported to assembly lines. TOs at a healthcare equipment repair facility
Companies need to find new ways to reduce that’s being expanded in Milwaukee where
operating costs, particularly to compete the robots are automating just-in-time parts
against offshore rivals. This requires resetting delivery.
the bar for production density and re-shores The Material Handling Institute’s 2016
their operations. Automation helps make this annual report estimates robotics adoption in
happen. material handling applications will grow by
“OTTO helps you evolve your operations 71% over the next 10 years, further validating
into an Industry 4.0 facility, right now,” says the notion that robots will be important to
Drexler. “Something like that doesn’t typically new industrial areas outside traditional ones
happen overnight. What’s compelling about such as assembly.
self-driving vehicles is you can drop one or OTTO is making this shift possible, while
two of them into your operation tomorrow helping manufacturers navigate the mostly
and have the power and flexibility you need unfamiliar waters of Industry 4.0.
An OTTO Motors team member maps the facility using the to evolve your processes over time into a
vehicle’s LIDAR sensors. completely Industry 4.0-powered factory.” Comments? E-mail mpowell@plant.ca.
14 PLANT November/December 2016
PLNT Dec2016_AMS.indd 14 2016-11-24 2:25 PMMEDICAL DEVICE
Fanshawe graduate Louise Marchand
checking out the tremor suit.
PHOTO: FANSHAWE COLLEGE
dealing with the disease.
Fanshawe and medical device
company MDDT, both in London,
Ont., have come up with a pro-
totype for a motion capture suit
and tremor sleeve that will help
with the diagnosis and monitor-
ing of Parkinson’s patients.
The suit, designed by recent
Fanshawe fashion design gradu-
ate Louise Marchand, guided by
the college’s design professors,
Parkinson’s
improves the accuracy of report-
ing and assessing tremors. Ac-
curacy is key to determining the
correct dose of Levodopa – an
INNOVATION
initial pharmacological therapy
for patients with Parkinson’s.
MDDT collaborated with
Fanshawe’s School of Design to
create a washable and durable
suit for home assessments and
FANSHAWE AND MDDT COLLABORATE that can be mass-produced.
The suit incorporates software
ON A TREMOR SUIT MDDT uses to capture data from
sensors placed at fixed points
I
Recent college graduate n the spirit of collaborative the nervous system named after across the body and ensures ease
Louise Marchand has innovation, Fanshawe College English surgeon James Par- of use for patients with varying
and researchers at Movement kinson (1755 to 1824) mostly body types and a ranges of trem-
designed a device that Disorder Diagnostic Technolo- affects middle-aged and elderly or activities.
improves the accuracy of gies Inc. (MDDT) are developing people who experience tremors, The two-piece (top and
reporting and assessing a tool that will aid people living muscular rigidity, slowness of bottom) suit’s large, easy to use
with Parkinson’s disease. movements and loss of balance. zippers and belting are helpful
tremors. This progressive disease of More than 100,000 Canadians are for patients with hand tremors
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www.plant.ca
Plant_Hammond_MayJune.indd 1
PLANT 15
2016-05-13 10:07 AM
PLNT Dec2016_AMS.indd 15 2016-11-24 2:25 PMParkinson’s
innovation
and the mesh underlay pro-
vides breathability. Anti-skid
fabric further enhances
accuracy reading tremors by
tightening the sensor pockets
against the body.
A prototype of the Trem-
orTek sleeve is based on an
earlier design by MDDT, which
commercializes technologies
Navdeep Singh Bains, minister of innovation, science and economic development (left), visits the Xerox Research Centre of Canada
developed by researchers at
facility in Mississauga, Ont. He’s joined by Al Varney, president and CEO of Xerox Canada (centre) and Dr. Paul Smith, vice-president of
The University of Western
XRCC (right). PHOTO: XRCC
Ontario’s Movement Disorders
Counterfeiter
Centre in London.
Tremor disorders
ISSUES?
The non-invasive, experimen-
tal device would be used for
Parkinson’s and other tremor
disorders. Its multiple sensors
analyze complex movements
with accute accuracy. Using the
data from the sleeve, doctors
will isolate specific areas of the
XRCC EXPERTS ARE ON THE JOB
arm muscle to guide drug treat-
ments, reducing tremors over
the course of seven to 10 days.
Practitioners and caregivers The Xerox Research Centre the globe, virtually every Xerox with. Added to the fuel, the test-
would use the sleeve to treat of Canada has developed product in market today has been ed marker had to show a specific
patients at the hospital or in influenced in some way by the response when exposed to a
their homes. advanced materials to research team in Mississauga.” stimulus.
Dan Douglas, dean of Fan- meet manufacturers’ As of five years ago, the centre One of the many challenges
shawe’s Centre for Research security challenges. has been applying its expertise that came up during the R&D and
and Innovation, noted the and the efforts of more than 60 testing phase was developing an
M
importance of the College’s anufacturers that find chemical engineers, physicists additive that could survive the
collaboration with an industry themselves battling and scientists to the security complex chemical environment
partner. counterfeit products and challenges other companies are of liquid fuel for its lifetime.
“This project demonstrates intellectual property pirates have experiencing. “Once our team formulated a
the trend towards cross-sec- an ally. marker that met all of the client’s
tor research and innovation The Xerox Research Centre of Security features goals, we were able to begin
activities and, in this case, Canada (XRCC) is developing “Our researchers have also manufacturing large batches
by the merging of fashion security innovations at its state- demonstrated particular exper- of the additive in our Scale-Up
with technology to develop a of-the-art lab in Mississauga, tise for developing materials that Engineering Pilot Plant, which is
product for the health sector,” Ont. that will help companies enable security features, includ- outfitted with chemical reactors
he said. “Projects such as tackle a global problem with an ing fluorescence, colour shifts, capable of producing anywhere
this have an immediate and annual price tag of $1.7 trillion metallic finishes and electronic from two to 2,000 litres of materi-
substantial impact for indus- (according to the Organisation properties,” Smith says. “These al at a time,” Smith says.
try partners and those they for Economic Co-operation and materials can be incorporated XRCC’s work (see xrcc.
serve while providing valuable Development). directly or indirectly into life-crit- external.xerox.com) involves
experiences for our student For more than 40 years, XRCC ical products like medicines, electronic materials, sustainable
researchers.” has developed new materials food, toys, cosmetics, fertilizers, materials, chemical processes,
The project received funding such as inks, toners and photore- aircraft and car parts.” coatings, security and authen-
from the Natural Sciences and ceptors for Xerox’s own purpos- A company that delivers fuel tication, and technologies for
Engineering Research Council es, says Paul Smith, vice-presi- worldwide approached the Xerox printing, electronics and manu-
of Canada. dent and centre manager of the research centre to develop and facturing. — Source: XRCC
XRCC. “As the primary materials test a series of chemical markers
Comments? research and development centre that would guarantee its product Comments?
E-mail jterrett@plant.ca. for Xerox’s operations around hadn’t been diluted or tampered E-mail jterrett@plant.ca
16 PLANT November/December 2016
PLNT Dec2016_AMS.indd 16 2016-11-24 2:25 PMOUTLOOK 2017
Manufacturers are primed
to grow their businesses
but are cautious about
investments next year.
BY JOE TERRETT, EDITOR
A
lthough economic growth
was disappointing this
year (1.2% forecast by the
OECD), Canadian manufactur-
ers have a positive view of their
prospects next year. Canadian
and US GDP is supposed to rise a
bit above 2%. However, compa-
nies are exercising their custom-
ary caution when looking ahead.
PLANT’s Manufacturers’
Outlook 2017 survey (June to
September) shows 36% of senior
company executives are optimis-
tic although most (55%) qualify
that optimism.
The survey, conducted by
Northstar for PLANT Magazine
in partnership with sponsors
Grant Thornton LLP, SYSPRO Manufacturers see growth, higher profits and higher costs in 2017. PHOTO: THINKSTOCK
Confidence with
Canada and Machines Italia (with
the Italian Trade Commission),
is based on 526 replies from
CAUTION
senior manufacturing executives
(margin of error of +/- 4.27%, 19
times out of 20). Most of their
companies (65%) fall into the
small business category (under
100 employees); 23% are under
500; and 13% are large firms (500
or more).
Complete results will be
available in a downloadable GROWTH PREDICTED, INDUSTRY 4.0
ADOPTION LAGS
report (visit www.plant.ca) that
includes a roundtable discus-
sion of manufacturing issues look surveys: manufacturers are floor to the top floor over the a major obstacle for 31%.
involving senior executives and primed to grow their businesses, next 12 months. Innovation is key to improv-
industry experts, but here are but they’re not as engaged as The top three adopted technol- ing processes and developing
some highlights. they could be – or should be – ogies are CAD/CAE/CAM (46%), higher value products. Caution is
As in past surveys, we picked with the technologies that would data acquisition, information and evident by this year’s responses.
key areas for some additional deepen their business intelli- control technologies (34%) and Most (80%) either don’t know or
detail, and this year focus was gence and drive productivity. computerized processing, fabri- aren’t sure what their companies
sharper on how companies view These key competitive factors cating and assembly technologies will spend on innovation in 2017,
and are adapting to Industry 4.0 will aid the success of companies (27%). Thirty-two per cent don’t but they’re almost evenly split
(a.k.a. the fourth industrial revo- operating in advanced economies use any of the listed technologies. on investment increasing (48%)
lution), which entails automation like Canada’s where higher-cost or remaining at the same level
and data exchange, cyber-phys- labour is a disadvantage. IIoT engagement (49%) over the next five years.
ical systems, the Industrial Only 30% make use of auto- Respondents also demonstrated Whatever their spending plans,
Internet of Things (IIoT), cloud matic data access, analysis and limited engagement with IIoT, most (62%) have not – nor do
computing and how it all relates review to measure and monitor which connects and optimizes they plan to – take advantage of
to the “smart factory.” productivity; 42% do it manual- machines via the internet. Only the SR&ED federal tax credit for
The results confirmed what ly; 28% don’t measure; and 61% 6% are applying IIoT capabilities investment in research. Only 27%
has been evident in past Out- won’t be connecting the shop and not knowing where to start is plan to do so in 2017.
www.plant.ca PLANT 17
PLNT Dec2016_AMS.indd 17 2016-11-24 2:25 PMYou can also read
