SIZZLE Quality BBQs, fireplaces and HVAC fuel growth - PLANT
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OCTOBER 2020 | WWW.PLANT.CA | $12
Why Napoleon has
SIZZLE
Quality BBQs, fireplaces
and HVAC fuel growth
Engage with Industry 4.0
Have a business recovery plan
Cyber protection includes insurance
Winners of the COVID-19 leadership awards
DAILY MANUFACTURING NEWS www.plant.ca
PLT_October2020_AMS.indd 1 2020-10-02 1:38 PM
IT’S TIME TO TAKE A CLOSER LOOK AT
ITALIAN MACHINERY
We are your link to over 10,000 Italian manufacturing solutions providers from every
industry. When you’re looking for the competitive advantage that comes with innovative
technologies, take a closer look at Italian-made industrial equipment. We connect you to partners
who offer problem-solving, flexible design, expanded functionality, and creative, cost-effective
solutions. Our goal is to help you achieve your goals. When you’re ready, look to Machines Italia.
For more information on Machines Italia
visit www.machinesitalia.org
machinesitalia Machines Italia @ITAmachines Machines Italia
PLT_October2020_AMS.indd
PLT_MarApr20_ITC_AMS.indd2 1 2020-10-02
2020-04-01 1:38
2:02 PM
CONTENTS October 2020
Vol. 79, No. 06
FEATURES
15 PERFORMANCE Avoid the obstacles that
sap the desire to learn how to coach team
members.
14 COVID-19 BDO offers five steps that
manufacturers can apply as they build a
post-pandemic growth strategy.
17 THINK LEAN Acting as an observer aids
learning and rebalances processes so step
back and let it happen.
18 CCOHS SAFETY TIPS Lifting is one of the
10 GROWTH most common causes of back injuries in
Napoleon is hot and it’s not just the quality barbecues; the Barrie, Ont. workplaces but they are avoidable.
manufacturer is also aiding home comfort with its HVAC product line.
DEPARTMENTS
4 Editorial
6 News
Bulletins
7 Careers
12 INSURANCE Cyber attacks are becoming 13 AWARD The COVID: Industry Leadership 8 Industry Mix
more frequent and wide ranging. Include Honours virtual event cited manufacturers 9 Economy
cyber insurance as part of a risk mitigation whose performance during the pandemic PLANT Pulse
strategy. stood out. 20 Leading Edge: Innovative
ideas for plants
21 Plantware
Events
22 Postscript: New era of
intelligent manufacturing
16 INDUSTRY 4.0 Canadian manufacturers 19 MACHINE TOOLS Three views of
are slowly moving ahead with digital digitalization that will help machine
technology implementations but they tool builders prepare for the factory of
have concerns. the future. COVER IMAGE: Stephen Urhaney, a Napoleon barbecue.
PLANT—established 1941, is published 7 times per year by Annex Business Media. Publications Mail Agreement #40065710. Circulation email: bolechnowicz@annexbusinessmedia.com
Tel: 416-510-5182 Fax: 416-510-6875 or 416-442-2191 Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1. 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@annexbusinessmedia.com Tel: 800-668-2374. No part of the editorial content of this publication may be reprinted without the publisher’s written permission. ©2020 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
01 2:02 PM PLT_October2020_AMS.indd 3 2020-10-02 1:38 PM
EDITORIAL
Ingredients for recovery
in a post-COVID Canada Editor
T
Joe Terrett
he COVID-19 crisis has brought anguish to thousands of families, swung a 416-442-5600 ext. 3219
wrecking ball at the economy and escalated business uncertainty. Yet there is jterrett@plant.ca
a potential positive. The pandemic is transforming the way manufacturers con- Senior Publisher
duct business in ways that lead to new opportunities and improve the diversity of Scott Atkinson
416-510-5207
the workforce. But chief among the changes will be the application of technology.
satkinson@annexbusinessmedia.com
More companies are waking up to the benefits of digital technology. Annex
Business Media publications Canadian Manufacturing and PLANT Magazine are National Account Manager
Ilana Fawcett
releasing the results of the 2021 Advanced Manufacturing Outlook report this 416-829-1221
month (polybagged with this issue or available on www.plant.ca). The study ifawcett@annexbusinessmedia.com
shows more manufacturers (30%) are applying Industrial Internet of Things Media Sales Manager
(IIoT) than last year’s study sample (24%) while another 17% have a plan, more Jason Bauer
416-510-6797 / 437-218-0941
than doubling last year’s response.
jbauer@annexbusinessmedia.com
The Outlook report complements KPMG’s Global CEO study that found 84% of
Canadian company leaders (all sectors) are prioritizing technology investments Media Designer
Andrea M. Smith
to meet growth and transformation objectives; and most (92%) say COVID-19 has asmith@annexbusinessmedia.com
accelerated the digitalization of their operations. But US companies (all sectors)
Circulation Manager
spend an average C$22.8 million per technology – 30% more than what Canadians Beata Olechnowicz
spend, according to a KPMG/HFS Research report. 416-510-5182
bolechnowicz@annexbusinessmedia.com
The Outlook report shows 56% of manufacturing executives spnt the most on
robotics and automation (average $129,800) but most companies (65%) are invest- Account Coordinator
ing in the cloud ($61,000). Debbie Smith
416-442-5600 ext 3221
Canadian manufacturers, mostly small, find investment dollars are tight, es- dsmith@annexbusinessmedia.com
pecially this year, so no wonder Outlook survey comments show caution when it
COO
comes to technology adoption with an emphasis on ROI. You will find a few tech Scott Jamieson
planning pointers (page 16) to build confidence, but be mindful of how informed sjamieson@annexbusinessmedia.com
vendors are and how closely they align with your values and culture. Research
by ERP provider IFS notes poor advice from vendors tops the list of why digital
transformation projects fail for 37% of global respondents.
The disruptive effects of the pandemic have further exacerbated shortages of Subscription Price
Canada $76.00 per year, US $201.00
labour and skills, driving the need for technology to improve productivity, yet
(CAD) per year, Foreign $227.00 (CAD) per
people with skills necessary to operate digital solutions are in short supply. This year. Single Copy Canada $12.00. Add
points to a need for greater gender diversity within the skills pool. applicable taxes to all rates. Combined,
expanded or premium issues, which count
The recent speech from the throne called for an action plan to involve more as two subscription issues.
women in the economy to reverse a drop in their participation in the workplace
because of the pandemic. That certainly makes sense, especially with half the Mailing Address
Annex Business Media
population chronically underutilized in business and industry; and some realign- 111 Gordon Baker Road, Suite 400
ment is necessary, according to another study by Ryerson’s Diversity Institute Toronto, ON M2H 3R1
and the Public Policy Forum. It notes occupations in STEM fields often define
technology roles and stereotypes of entrepreneurs by unintentionally excluding Circulation
Beata Olechnowicz
women, thus impeding innovation by making technology the focus rather than 416-510-5182
using it to drive change. bolechnowicz@annexbusinessmedia.com
Fax: 416-510-6875 or 416-442-2191
The Trudeau government would be wise to also consider the contents of a
report by the national Task Force for Real Jobs, Real Recovery. It represents
250,000 businesses (see page 8) and declares the key to a recovery plan is the
engagement of Canada’s natural resource sectors and manufacturing. It offers
19 recommendations that focus on social, regulatory and climate goals with the
potential to create 2.6 million jobs and generate $200 billion in labour earnings.
Technology, greater effort to achieve gender parity in industry and harnessing
the power of natural resources and manufacturing should be part of a strategy
driven by governments and industry to reboot manufacturing as a more agile,
innovative contributor to Canada’s economy.
The ingredients are there. Let’s move quickly on a national plan.
Joe Terrett, Editor
Comments? E-mail jterrett@plant.ca.
4 PLANT October 2020
PLT_October2020_AMS.indd 4 2020-10-02 1:38 PM PLT_Lap
OPERATE AT THE
NEW SPEED OF INDUSTRY
Making Smart Factories Future-Ready
High-speed industrial communication empowers
smart factories to achieve the potential of Industry
4.0 and maximize productivity.
LAPP provides high performance solutions that deliver
reliable, high-speed industrial communication networks
including Industrial Ethernet. Our range of robust,
factory resilient cables extends to CAT.7 and offers
continuous flex, tray rated and torsion options to meet
all applications.
Explore LAPP’s full range of Industrial Communication
products and solutions.
lappusa.lappgroup.com/automation.html
PLT_Lapp_Oct20.indd 1
PLT_October2020_AMS.indd 5 2020-09-16
2020-10-02 11:23
1:38 PM
AM
NEWS
Peak Processing Solutions ATS lands $20M
BULLETINS
granted a HC cannabis licence order for syringe line
Siemens Energy (corporate headquar- Manufacturing service covers multiple products CAMBRIDGE, Ont. — A medical device
ters, Oakville, Ont.) is providing its gas manufacturer has booked a $20 million
turbine technology to the planned 900 order with ATS Automation Tooling Sys-
megawatt Cascade Power Plant in tems Inc. for several automated safety
Alberta. It will support the decarboniza- syringe-manufacturing systems.
tion of the province’s power supply by The deal features the Cambridge,
switching from coal to natural gas and Ont. automation company’s patented
reducing Alberta’s carbon emissions Symphoni technology.
from energy production by up to 5%. The ATS said the order by an unidentified
$515 million order comes from Kineticor, customer will produce syringes to meet
a developer and manager of clean power demand related to COVID-19 vaccine
projects across Canada. The Cascade production.
plant is expected to begin operating in The program is related to the US
2023. government’s Operation Warp Speed. It
aligns production of safety needles and
Fertilizer manufacturers overcame rail Beverage canning line. PHOTO: PEAK PROCESSING syringes to meet demand as supplies
disruptions and COVID-19 to ensure Ca- are consumed in routine healthcare and
nadian farmers had all the crop nutrients TECUMSEH, Ont. — Peak Processing Solutions has treating the surge of COVID-19 patients.
they needed for planting this spring, received its Health Canada processor’s licence allowing it to ATS describes Symphoni as high-per-
new Statistics Canada data shows. move to the next phase of its contract service model. formance digital manufacturing tech-
Shipments of nitrogen and phosphorus Peak, a subsidiary of Althea Group Holdings and based nology that multiplies the productivity of
fertilizer reached record levels this year. in Tecumseh, Ont., said it has large-scale cannabis pro- automated assembly processes by elimi-
And shipments of potash and sulphur cessing and packaging capabilities with an automated can- nating non-value-added production time.
were steady, down only slightly from ning line and hydrocarbon extraction. Its service model is All movements are precisely mapped
near record levels. Canada’s fertilizer aimed at cannabis licence holders and non-licensed CPG out and synchronized through electronic
industry contributes $24 billion to the groups looking to enter the Canadian market. gearing resulting in a “symphony of
economy and sustains more than 76,000 The 40,000 square-foot facility formulates, processes motion.” Consumables such as syringes
jobs. and packages a variety of product types including: canned are assembled at very high rates in a
beverages; concentrates; topicals; powders; vaporizers; compact footprint while assuring compli-
CSV Midstream Solutions Corp. in and medicinal products. ance to rigid quality standards.
Calgary has completed expansion of its Althea Group Holdings Ltd. is an Australian licensed ATS employs approximately 4,400
Karr 6-18 Sour Natural Gas Processing producer, supplier and exporter of pharmaceutical grade people at 22 manufacturing facilities.
Plant, acquired from Paramount Re- medicinal cannabis.
sources Ltd. in 2019. Karr, near Grande
Prairie, Alta., now has 150 million cubic
feet per day of total raw sour gas han- GM invests $28M in cogen at engine plant
dling capacity. The expansion includes
sour gas sweetening, refrigeration, oil
St. Catharines project cuts greenhouse gas emissions, electricity costs
treatment, storage, water handling and OSHAWA, Ont. — Gen- to run on the renewable
utilities including the addition of a digital eral Motors Canada has landfill gas delivered to
control system and 15 megawatts of gas completed a $28 million the plant through a short
turbine-driven power generation. investment in cogenera- pipeline.
tion at its St. Catharines, The project involves
BevCanna Enterprises Inc., a Vancouver Ont. propulsion plant. partnerships with
manufacturer of cannabinoid-infused The automaker fore- Alectra Utilities and
beverages and consumer products, has casts cogeneration will the Ontario Centres of
signed a letter of intent with State B reduce net greenhouse Excellence. It’s the first
Beverage Co. to manufacture white-la- gas emissions by ap- complete renewable
bel CBD and THC-infused drinks. State B proximately 70% while landfill gas industrial
is a Brujera Elixirs Inc. brand that cur- buffering the engine and cogeneration system
rently includes Boozewitch (sober-cu- transmission plant from Inside GM’s St. Catharines, Ont. engine plant. PHOTO: GM in Ontario delivering
rious mixers) and three performance rising electricity and renewable fuel from an
drinks in development by the Squamish, carbon costs. generate electricity from newly offsite source.
BC company. BevCanna will create the The 6.4-megawatt project installed engines at the plant. GM has committed to power
new State B beverage concept that will uses renewable landfill gas GM will also recover other- all of its global operations’
combine functional and cannabis drinks. delivered by pipeline from the wise wasted thermal energy to electricity needs with 100%
State B will handle national sales and nearby Walker landfill working power and heat the plant. renewable energy by 2040.
marketing efforts. with partner Integrated Gas Instead of using natural gas, The facility will be running
Recovery Services (IGRS) to the new engines are adapted at full capacity by Oct. 31.
6 PLANT October 2020
PLT_October2020_AMS.indd 6 2020-10-02 1:38 PM
Elkem to build biocarbon pilot in Quebec
Plant will produce a renewable alternative to metallurgical coal
CAREERS
CHICOUTIMI, Que. — A Norwegian company Lafert North Amer-
that produces silicones, silicon and alloys is in- ica, a supplier of
vesting in a new biocarbon pilot plant in Canada. motors and drives,
Elkem Metal Canada Inc.’s $26 million project has appointed
aims to secure industrial verification of its tech- Douglas Backman
nology for renewable biocarbon with a long-term its North American
goal of climate-neutral metal production. The sales director. Most
technology also has potential for use in other recently he was
industrial sectors. the vice-president Douglas Backman
The project is getting more than $17 mil- Pilot plant will use sawmill waste. PHOTO: ELKEM of Danfoss (Vacon)
lion from the Canadian, Quebec and City of Canada Inc. in Mississauga, Ont.
Saguenay governments, reducing Elkem’s net biocarbon briquettes, or compressed blocks of
investment to $8.7 million. coal dust, a renewable alternative to metallurgi- Aurora Cannabis Inc. has appointed
Construction is planned for this year near cal coal that reduces the environmental impact Miguel Martin CEO, replacing Michael
Elkem’s production site in Chicoutimi, Que. of foundries and steelworks. Singer, who has served as Interim CEO
The industrial process, specifically for silicon Elkem Metal Canada intends to replace 43,000 since February. He continues his role
and ferrosilicon production, will use climate-neu- tonnes of metallurgical coal per year used at its as executive chairman. Martin came
tral, renewable biocarbon instead of fossil coal Chicoutimi plant, with 37,000 tonnes of bio-bri- to Aurora from Reliva, a US CBD brand
as a reduction agent. quette (biocarbon) for a potential reduction of where he served as CEO. He assumed
Elkem already uses close to 20% biocarbon in 100 kilotonnes of CO2 equivalent per year. the role of CCO at Edmonton-based
its Norwegian production and the company is The pilot plant will source raw materials from Aurora in July.
targeting 40% by 2030. local sawmills, including recycled bark, wood
The project supports the manufacturing of chips, sawdust and wood shaves. Nexii Building Solutions Inc., a manufac-
turer of green construction materials,
has hired four executives. Brian Carter,
Province ramps up.ventilator Micron to make.. executive vice-president of manufac-
components production face masks.
turing, joins the Vancouver company
following seven years as president and
Linamar gets $2.5 million to produce 10,000 units for COVID-19 fight CEO of Seaspan Shipyards. Rob Simp-
son, senior vice-president of engineer-
VANCOUVER — Micron Technologies ing, previously led structural engineer-
Inc. is ramping up to produce face ing firm Glotman Simpson. Laurenz
masks for the fight against the COVID-19 Kosichek, vice-president of architec-
pandemic. ture, was a principal at Stantec Archi-
The manufacturer of personal protec- tecture Ltd. David Fisher, vice-president
tive equipment, a subsidiary of Micron of business optimization, comes to Nexii
Waste Technologies Inc. in Vancouver, from Mitsui Home Canada.
has installed a three-ply mask-man-
ufacturing machine and associated General Fusion has appointed Klaas de
equipment. Boer as chair of its board. His appoint-
The company has received a Medical ment coincides with the arrival of new
Ontario Premier Doug Ford and Linamar CEO Linda Hasenfratz tour the Device Establishment Licence from institutional investors backing the
Guelph, Ont. plant. PHOTO: ONTARIO GOVERNMENT Health Canada that permits it to manu- Vancouver fusion energy developer’s
facture Class I products at its Delta, BC commercialization program. de Boer has
GUELPH, Ont. — The Ontario government is investing facility. more than 20 years of venture capital
$2.5 million in Linamar Corp. to support the retooling of its A N95 mask-manufacturing machine is experience spanning Europe, North
assembly line to manufacture ventilator components. also onsite and Micron expects produc- America and the Middle East.
The company, a major player in automotive parts and tion to begin in October. The company
systems based in Guelph, Ont., will produce 10,000 e700 plans to send samples to the National Neo Performance Materials Inc. has
ventilators. Institute for Occupational Safety and appointed Greg Share an independent
O-Two Medical Technologies has partnered with Health for certification for medical grade director. Share is managing partner of
Linamar and others, including Bombardier, to produce the N95 masks. Ambina Partners LLC, an investment
devices. “We believe that the supply of face firm focused on financial services and
“By building home-grown capacity to make ventilators, masks will remain constrained as software companies. Neo Performance
we will never again have to rely on any other country for governments and corporations mandate Materials in Toronto manufactures rare
this critical piece of lifesaving medical equipment,” said masks be worn in public spaces, the earth- and rare metal-based materials
Ontario Premier Doug Ford. workplace, and in educational centres,” for high technology and sustainable
The funding comes through the province’s Ontario To- said Micron CEO Kal Malhi. products industries.
gether Fund.
www.plant.ca PLANT 7
PLT_October2020_AMS.indd 7 2020-10-02 1:38 PM
INDUSTRY MIX MISCELLANY FROM THE
WORLD OF MANUFACTURING
Kraken unleashed
In Scandinavian folklore, the kraken is a giant
Bet on natural resources squid-like monster that terrorizes sailors off the
A national task force has coasts of Greenland and Iceland. The Newfound-
a plan for getting Canada land Labrador version is not so scary. It’s doing
through a pandemic re- interesting things with marine robotics.
covery: natural resourc- Kraken Robotics Inc.’s XL version of the Thun-
es. Canada has plenty of derFish autonomous underwater vehicle (AUV)
them but the idea is to is larger than the Alpha model, has an increased The ThunderFish XL. PHOTO: KRAKEN
go beyond sending raw depth rating, carries a larger payload and has
materials out to be made greater endurance during deep dive survey missions.
Canadian recovery plan. PHOTO: HUEBI - STOCK.ADOBE.COM into stuff that we end up NRC-IRAP is helping the project along with non-refundable funding of $3 million.
buying back. Capabilities include: transitioning from high-speed survey mode to “zero” speed
The Task Force for Real Jobs, Real Recovery – which represents more hovering mode; through-the sensor acoustic, laser and optical target detection,
than 250,000 businesses and over 3 million workers – released a blueprint image recognition and inspection; and onboard sensors that improve navigational
that shows under the right conditions, natural resources and manufacturing accuracy.
could create up to 2.6 million new jobs and increase GDP by 17%. This rep- The AUV will be depth rated to 6,000 metres and carry an array of sensors and
resents a potential $200-billion increase in potential labour earnings, while custom payload modules that will be integrated with – holy Industry 4.0 – advanced
cutting greenhouse gas emissions. artificial intelligence algorithms.
The report outlines 19 recommendations aimed at achieving goals that Stay tuned for a concept of a robust and autonomous multi-modal docking solution
include: allowing the AUV to function as a seabed resident that runs missions from its under-
• Leveraging Canada’s world-class industries; advancing regulatory effi- water docking station.
ciency; attracting capital investment; ensuring access to resource lands;
and maximizing Indigenous economic participation.
• Ensuring job creation and building resiliency; advancing Indigenous
employment; and enhancing skilled workforce mobility.
• Aligning climate action and natural resource development; driving chal-
lenge-oriented innovation; advancing emissions reduction technologies
and plastics innovation; supporting sustainable forestry and mining; and
developing hydrogen and small modular nuclear reactor industries. …We have raised the issue
Check out Securing Canada’s Economic Future: Natural resources for real jobs and of Canada’s unpreparedness
real recovery at https://realrecovery.ca.
for pandemic diseases for quite a
while. You need to have manufacturing
Just like real cigarettes capacity. You need to have the ability
We have Beyond Meat, stay tuned
to quickly respond.
for Beyond Tobacco.
Interesting story, Molori Energy Volker Gerdts, director of VIDO-Intervac, which is leading the Canadian efforts to
develop a COVID-19 vaccine, commenting on how greater government investment
Inc., a Vancouver oil and gas compa-
in a facility would have put a Canadian solution at the forefront of global efforts.
ny, has taken a hard turn out of the
energy business to provide a safer
smoking experience.
It recently acquired a start-up life AI R&D comes to Toronto
sciences company in Las Vegas and Cerebras Systems, which has developed a computer system
has adopted its name, Taat Lifestyle that accelerates artificial intelligence (AI) work, is expanding
& Wellness Ltd. The Beyond Tobacco smoking to Canada with an office in Toronto.
An unidentified manufacturer al- alternative. PHOTO: TAAT The tech company based in Los Altos, Calif. introduced its
ready producing cigarettes is handling CS-1 technology in November 2019. Its innovative computing
the first production-scale batch of system helps companies using artificial intelligence to poten-
Beyond Tobacco cigarettes made with hemp. They feature “rich naturally tially cut the training time of an artificial neural network from
occurring terpenes” as Taat makes a play for some of that still significant weeks to a few hours.
global tobacco money (1.3 million smokers, US$975 billion). The magic to this deep learning is a giant (46,255-square The CS-1 computer.
Taat filed a US patent application for a process that causes the hemp- millimetre) wafer scale engine that contains 400,000 sparse PHOTO: CEREBRAS
based material to emit the scent and taste of tobacco – original flavour and linear algebra compute cores, each flexible and programma-
menthol – with a satisfactory volume of smoke, but no nicotine. And the ble. The system provides the performance of a room full of servers into a compact
cannabidiol (CBD) content is a non-psychoactive derivative of hemp, so unit the size of a mini-fridge maxing the power draw at 20 kilowatts.
lighting one up won’t result in a wacky tobaccy buzz. Cerebras likes Ontario’s innovation vibe, hence the regional office in Toronto that
The “sticks” look like regular smokes and they come in a regular-looking will focus on accelerating R&D and establishing an AI centre of excellence.
package (in the US), all of which emulates the classic smoking experience. With more than 15 engineers currently employed, Cerebras plans to triple its
A test run in Nevada sold out in less than 72 hours. Toronto team.
8 PLANT October 2020
PLT_October2020_AMS.indd 8 2020-10-02 1:38 PM
ECONOMY
Productivity is up
…but a record job decline
T
he COVID-19 pandemic and the OWNERSHIP OF NEW FIRMS ACROSS INDUSTRIES
resulting lockdown helped boost
Educational services
labour productivity but led to a The success of enterprises owned by women
Health care and social assistance
record decrease in employment. depends on the industry, according to a 2005-
Arts, entertainment/recreation
Statistics Canada reports the la- Other services (except public admin.)
2013 Statistics Canada study. Fewer than one-
bour productivity of businesses rose Retail trade fifth of start-ups were owned by women during
9.8% (compared to 4.5% in Q1). Hours Accommodation/food services the study period. Most had lower survival rates
worked falling at a much faster pace Admin/support, waste mgmt./remediation services and labour productivity than those owned by men
Real estate, rental/leasing
than output drove the productivity or equally owned. In industries where there’s a
Finance/insurance
gain. higher concentration of women-owned start-
Professional, scientific/technical services
However, the real gross domestic Information/cultural services
ups, survival and productivity were higher than
product of businesses declined 14.5% Management of companies & enterprises enterprises owned by men. In manufacturing,
(mostly occurring in April) following Wholesale trade women owned 4% of firms, men 70% and 16%
a 2.8% decrease in the first quarter. Manufacturing reported shared ownerships.
This is a 16.7% drop from the second Utilities
Agriculture, forestry, fishing/hunting Majority Women Owned
quarter of 2019. The decline was
Transportation/warehousing Majority Men Owned
widespread across all goods- and Construction Equally Owned
service-producing industries. Only Mining, quarrying & oil and gas extraction
the agriculture and forestry sector 0% 50% 100%
saw an increase. Source: Statistics Canada, CANSIM
Hours worked fell 22.1%, more
40%
than three times the 7% decrease in
the first quarter. Hours worked were
down 27.5% from the second quarter Average pay for a Percentage of Canadian
of 2019. university graduate CEOs that remain as
Employment also suffered a record employed in confident as they were
drop (22.7%), while hours worked per manufacturing with pre-pandemic, versus 26%
job rose 0.7%. The number of people an executive or senior of global CEOs; 12% are
who had more than one job fell by management role, less optimistic compared
almost half (44.3%), while the number according to the to 29% of global CEOs,
$134,747
of people who were absent without 2020 EMC-PLANT according to KPMG’s
pay almost doubled (98.6%). Manufacturing Salary Global CEO Outlook.
Hours lost vary by industrial sector. Survey.
Manufacturing was down 30.6 million
hours. The greatest decline was in
58%
other private services (41.9 million
69%
hours).
Labour costs per unit of output US respondents
rose 4.1% after rising 0.7% in the first Percentage of Canadian who objected to the
quarter. The last comparable increase businesses that require PPE to now-cancelled Trump
occurred in fourth quarter of 1986 operate safely administration’s 10%
IMAGES: STOCK.ADOBE.COM
(3.6%). according to an tariff on Canadian raw
This rapid rise is attributed to “an August survey by aluminum, according to
unprecedented increase” in the aver- Statistics Canada. an Aug. 7-9 poll by Leger
age compensation per hour worked and the Association for
(14.3%), which topped a historic Canadian Studies.
productivity gain (9.8%).
Average hourly compensation rose
16.5% in service-producing businesses
12%
and increased 9.5% in goods-produc-
ing businesses. The gain in hourly Net hiring outlook for Canadian manufacturers of non-durables over
compensation was widespread across the next three months, according to the latest ManpowerGroup
all main industrial sectors, except Employment Outlook Survey. Net outlook for durables manufacturers
professional services (3.5%). is 9%. Overall, Canadian employers have a seasonally adjusted outlook of 6%.
Labour productivity in the US rose Net outlook is based on organizations that plan to hire versus those laying off
1.6% in the second quarter, after employees. Seventy-three per cent of employers expect current staffing levels to
posting zero growth in the previous remain unchanged, 12% expect to increase payrolls, 9% will cut staff and 6% are
quarter. unsure of their hiring intentions.
www.plant.ca PLANT 9
PLT_October2020_AMS.indd 9 2020-10-02 1:38 PM
GROWTH
NAPOLEON’S Hats off to a manufacturing dynamo
for doubling revenues in five years.
SIZZLE
INNOVATION BY KIM LAUDRUM
AND QUALITY
N
ot even COVID-19 can douse the sizzle
ARE PART OF
at Napoleon. The manufacturer of
gas and wood stoves and fireplaces,
barbecues, and heating and air conditioning
ITS DNA (HVAC) systems embarked on an ambitious
five-year plan in 2013 to ensure revenues
from innovations represented 30% of sales
within each of its three divisions. By 2018,
overall sales doubled, earning the Barrie,
Ont. firm its seventh nod as one of Canada’s
Best Managed Companies.
On March 23, Napoleon shuttered its
plants and operations to comply with
COVID-19 lockdown requirements in Ontar-
io. During this time, some of its 900 skilled
workers volunteered with neighbouring
manufacturers to meet surging demand for
medical equipment by making face shields.
By mid-April, Napoleon recalled 50 of its
workers, established new COVID-19 pro-
tocols throughout the plant to protect the
health and safety of staff, and returned to
manufacturing, eventually bringing back all
of its Canadian workforce.
Why? Sales are on fire. Families isolating
during the pandemic are eating meals at
home. That’s boosting an already emerging
trend for backyard entertainment products
and demand for barbecues beyond normal
expectations. In fact, the company is hiring
100 skilled workers, according to Napoleon
president Ron McArthur, and it already has
400 applications.
McArthur says finding skilled workers
is not a challenge in the Simcoe County
area. Being near major highways, Georgian
College and a manufacturing hub serving
OEM auto manufacturers Honda and Toyota
means Napoleon can tap a large skilled-
trades labour pool.
The area’s reputation as a four-season out-
door playground also makes it an attractive
place to live and work. Plus, the company
offers good paying jobs. “When you are a
company with a good reputation, it makes it
easier to recruit,” McArthur says.
How did Napoleon get there? Wolfgang
Schroeter, a Germany-trained tool and
die maker, and his wife Ingrid Schroeter
co-founded the manufacturing business in
the late 1970s, initially making steel railings
and patio furniture in Barrie. As the story
goes, in 1978 Wolfgang designed and built a
wood stove for his father-in-law that so im-
pressed his neighbour, he also wanted one.
President Ron McArthur presents a Napoleon barbecue. PHOTOS: STEPHEN URHANEY As demand for the wood stove grew, so too
10 PLANT October 2020
PLT_October2020_AMS.indd 10 2020-10-02 1:38 PMdid Wolf Steel Ltd.’s reputation for on-time ensuring most manufacturing such as ma-
delivery, quality work and innovation. chining, fabricating, assembly, welding and
Wolf Steel was the first wood stove manu- painting operations take place onsite.
facturer to introduce a single-cast-iron door Making Napoleon a recognized quality
with Pyrocerm ceramic glass so customers brand spurred sales in other divisions, too.
could see the flame inside. Continuous Focus groups indicated 70% of gas-grill
improvement and innovating products to consumers remember the brand name. But
meet market demand was in the company’s only 4% of fireplace or furnace customers
DNA from the start. It drives the successful Preparing parts for installation on HVAC products. remember any manufacturer’s brand.
growth strategy at Wolf Steel, now the legal To gain quality brand awareness is one
entity of what is best known as Napoleon. of the reasons why Napoleon expanded its
That growth can be traced from the wood barbecue line and distribution to big-box
stove market to developing residential retailers such such as Canadian Tire, Home
fireplaces. Venting innovations in fireplace Depot and Lowes in the US. It’s hoped build-
design sparked industry firsts and Napo- ing quality brand recognition in one market
leon’s name awareness grew. So making will cross over to the fireplace and HVAC di-
hearth products for the larger market in visions, boosting sales across the board. No-
home-building developments made sense. tably, HVAC market potential is greater than
Diversifying the lineup to include products the grill and fireplace markets combined.
in the multi-billion dollar HVAC market was Producing high-volumes of barbecues at a
a logical next step. Components destined for the HVAC line. price point of less than $1,000 for the big-box
Wolfgang brought ingenuity for design stores and to reach a global market prompt-
engineering and a knack for solving man- ed Napoleon to manufacture in China. To
ufacturing challenges to the enterprise, ensure quality control and reach markets in
successfully matched by Ingrid’s talent for Asia, a plant was purchased in Guangzhou,
administration and marketing. Their sons China.
Chris and Stephen also work for the family Napoleon is registered to ISO9001 – 2015
business. After 36 years the Schroeters were certification, which helps ensure consistent
proud of their success, but sought to position quality control at all of its manufacturing
the company Chris and Stephen could see to plants. In all, Napoleon has two plant loca-
its future growth. tions in Ontario (Barrie and Mississauga);
one in Crittenden, Ky.; and one in China.
Growth strategy Working on the fireplace line. Total manufacturing capacity is 1.4 million
In 2018, Chris and Stephen became co-CEOs square feet.
of Napoleon. Like his father Wolfgang, Chris tighter than a Swiss watch,” he says. Worldwide, Napoleon had about 800
looks after operations as well as research and At the outset of creating the strategic plan, employees in 2013. Now it employs close to
development. Stephen takes after his mother McArthur says Napoleon learned it had been 1,600 and sells to more than 35 countries,
Ingrid, running sales and marketing. Wolfgang doing some things well. from Dubai to Australia. International sales
and Ingrid continue on the company’s board “We knew we had to provide world-class represent 20% of total revenues.
of directors. customer service to reach our objective,” he It’s interesting to note 60% of Napoleon’s
McArthur joined the company as president says. “How could we ensure the customer mainly high-end gas grills are made in Can-
in 2012, responsible for management and has a ‘Wow!’ experience every time they deal ada. Some barbecues for the big box stores
finance. Previously, he served as president with us?” are manufactured in China. But “100% of Na-
of Hudson Bay Wholesale. He was president Napoleon provided a superior product, poleon’s gas and wood fireplaces are made in
of the largest division within the Van Houtte which he says customers perceived to be Canada,” McArthur says.
Coffee Co. And he worked for WSI, where he expensive. Top of the line Prestige gas-grills Continuous improvement has always
expanded the internet marketing company range in price from $1,299 to $4,549. “But been important to innovating new products,
into 32 countries in Europe, the Middle East when we ask them, ‘Why did they buy it?’ reducing time and costs, and improving man-
and Latin America. customers answer: ‘Because of the quality’.” ufacturing processes. Says McArthur, “We
By 2013 Napoleon set a growth goal: to The barbecues are well made with innova- could put in a new process or system and in
double sales within five years. To do it, tive safety features such as LED-lit control a couple of months we’ll look at it again and
Napoleon aimed to reach 30% of sales every knobs that indicate if the gas is left on. The see if we could improve it.”
year from new products in each of its three Prestige line also comes with a lifetime With growth doubled and exports rising,
divisions. That would require an ongoing “bumper to bumper” warranty. Napoleon burns bright.
dedication to research and development of Quality is a key part of Napoleon’s strategy
new barbecue, hearth and HVAC products. for keeping competition at bay. It’s not the Kim Laudrum is a Collingwood, Ont.-
McArthur won’t reveal the percentage of only Canadian manufacturer of barbecues. based business writer and regular contrib-
the annual budget set aside for R&D, but he Broil King, for example, operates out of utor to PLANT. E-mail kimlaudrum777@
does allow it’s “significant.” He’s also tight- Waterloo, Ont. and the US Broil King’s grills gmail.com.
lipped when asked about annual revenues. are also sold across the country through big
“As a private enterprise the company is run retail chains. Quality control is achieved by Comments? E-mail jterrett@plant.ca.
www.plant.ca PLANT 11
PLT_October2020_AMS.indd 11 2020-10-02 1:38 PMINSURANCE
Include cyber insurance
as part of a risk mitigation
strategy.
BY IMRAN AHMAD, KATHERINE
BARBACKI, JELENA CVETKOVIC
AND JULIE MORAND
C
yber attacks are on the rise.
Of the various threats aimed
at manufacturers, ransom-
ware continues to be among the
most common. The ease with
which sophisticated attackers
can infect entire networks to
quickly paralyze operations Cyber insurance has evolved in response to evolving threats. PHOTO: ZEPHYR_P - STOCK.ADOBE.COM
has led to a surge in ransom
Cyber
amounts. malware, phishing and other
Faced with continuously techniques leading to a loss.
evolving threats, it’s difficult, if Privacy liability. Privacy is-
ATTACKS
not impossible, for companies sues are increasingly important,
to completely eliminate the risk especially when they entail the
of becoming victimized. That’s unauthorized access or exfil-
why it’s important to deal with tration of personal information.
attacks quickly and efficient- Cases of class action litigation
ly. One of the ways to do so is have risen steadily in Canada
through cyber insurance, which over several years.
has become an essential part of ARE YOU COVERED? The continuously evolving
any risk mitigation strategy. sophistication of attacks com-
Most policies will offer general ware attacks typically involve ters, credit monitoring services bined with increasing regulatory
coverage for extortion, includ- a ransom demand in exchange and call centre services. scrutiny and data protection
ing the ransom payment and for a decryption key that allows • Business interruption. legislation means companies
services of specialists such as the victim to recover data. The Ransomware attacks often have must be equipped to respond. A
forensic and communications amounts demanded vary widely, a paralyzing effect leading to comprehensive cyber insurance
firms. Typically, specialists but can be significant. loss of income. Business inter- policy provides rapid access to
recommended by insurance • Forensic investigation. ruption coverage helps recover vetted cybersecurity experts
providers have been carefully Systems must be secure before income lost during an attack and and some monetary relief from
vetted for their expertise and being brought back online. the period of restoration. the increasing costs associated
have pre-negotiated rates. This entails an investigation to • Crisis management costs. with cyber attacks.
Insurers typically appoint a determine the cause and scope Reputational harm is another as-
lawyer specializing in cyber- of the breach. This also helps pect of cyber attacks. Having ac- Imran Ahmad – imran.
security and privacy law. This determine whether a company cess to a team of experts trained ahmad@blakes.com, (416)
breach coach will take leader- is subject to any reporting or to respond to the media and 863-4329) – is a partner
ship of the incident response, notification requirements under other inquiries helps alleviate and Katherine Barbacki –
including coordinating be- Canadian privacy law. some of the potential damage katherine.barbacki@blakes.
tween the various internal and • Data restoration. Opting and reduce the likelihood of a com, (514) 982-4138 – is
external teams, asserting legal not to pay the ransom and re- third party lawsuit. an associate at the law firm
privilege on all communications storing networks from backups Blake, Cassels & Graydon
and documents, and navigating or from scratch (or paying the Covering costs LLP. Both practice in the area
potential reporting and notifi- ransom, but data is lost) will Basic cyber insurance also of cybersecurity, privacy
cation obligations. This further likely lead to costs associated covers third party costs (liability and technology law. Jelena
protects the insured in the event with restoring systems to the coverage). This includes costs Cvetkovic – jelena.cvetkovic@
of an attack that results in a pre-attack state. incurred for damages caused to cna.com, (416) 915-6928) – is
third-party lawsuit. • Notification costs. Under the third parties as a result of an the specialty claims manager
Basic coverage under a typical Canadian privacy legislation, attack, such as: and Julie Morand – julie.
policy includes first party costs companies may be required to Network security liability. morand@cna.com, (416) 542-
from expenses relating to vari- notify affected individuals in the In the event of a cyber attack, 7435) – is a specialty claims
ous components of the incident event of attacks involving a risk the policyholder could incur analyst at CNA Insurance.
response and remediation of harm due to data theft or un- damages and claims resulting
efforts, such as the following: authorized access. Costs include from unauthorized access to (or Comments?
• Cyber extortion. Ransom- the mailing of notification let- disruption of) its network using E-mail jterrett@plant.ca.
12 PLANT October 2020
PLT_October2020_AMS.indd 12 2020-10-02 1:38 PMAWARDS
Pandemic
HEROES
Looking for a fabricator
for a complex project?
Whether it’s a heat exchanger, stack, pressure vessel,
THE WINNING MANUFACTURERS filter, or other custom process equipment, Alps Welding
can turn your design into reality.
Virtual event honours outstanding
contributors to the COVID-19 fight.
BY PLANT STAFF
W
hen Canada was swept up in the
COVID-19 pandemic, many manufac-
turers acted quickly to fill shortages
of personal protective equipment (PPE) for
frontline workers and civilians, hospital
equipment and monitoring devices.
Annex Business Media publications Ca-
nadian Manufacturing, PLANT Magazine
and EP&T hosted the Responding to COVID:
Industry Leadership Honours virtual event Sept. 17 to recognize
companies that stand out as quick and innovative responders. Here’s
a brief rundown of the winners but go to www.plant.ca/qO6PL for a We have experience working with steel, stainless,
recap of the event and details about all the finalists.
and other alloys, including titanium.
PPE-large manufacturer, and Ultimate COVID Hero (most
significant impact). The Canadian Shield was founded in March at
the height of the COVID-19 pandemic, when the Kitchener, Ont.-based
InkSmith, an educational technology company (about eight employ-
ees), decided to produce medical face shields. Within the first few
weeks, it donated 20,000 face shields to frontline healthcare workers
across Ontario, and has donated 750,000 face shields to teachers.
Now the company employs more than 300 team members and has a
federal government contract to produce 10 million units.
PPE – Medium-sized Manufacturer. Auto parts manufacturer
Molded Precision Components (Shanty Bay, Ont.) pivoted to make
face shields when COVID-19 hit in March.
PPE – Small Manufacturer. I3 Biomedical (Mirabel, Que.) creat-
ed a mask infused with its TrioMed technology that deactivates the
COVID-19 virus.
Assisting the Sick. Aerospace manufacturer Space Engine Sys- With over 150 welding procedures, and 40 years of
tems (Edmonton) custom-designed and produced a ventilator and experience meeting the demanding specifications of the
brought it to market in 21 days. energy, mining, chemical, and cleantech industries,
Disease Detection. iLobby (Toronto) launched Fever Check tech- make Alps Welding your first call when looking for a
nology that uses a thermal camera to scan visitors’ temperatures. fabricator for critical equipment.
Services. Nuclear power provider Bruce Power (Tiverton, Ont.)
streamed 1.7-million pieces of PPE to more than 100 organizations.
Sanitization – Hygiene. Hunter Amenities (Burlington, Ont.), a
multinational cosmetic manufacturer, quickly pivoted to hand sani-
tizer that isn’t scented or alcohol-based.
Sanitization – Innovation. Envision SQ Inc. (Guelph, Ont.), a
manufacturer of pollution filters, created a semi-permanent disinfec-
tant that sticks to virtually any surface and kills COVID-19.
Machines Italia – COVID Hero. Forty Creek Distillery Ltd. (Cam-
pari Canada) in Grimsby, Ont. produced high-alcohol hand sanitizer
400 New Huntington Road
for several organizations in the region. Woodbridge, Ontario 905-850-2780
Comments? E-mail jterrett@plant.ca. www.alpswelding.com
www.plant.ca PLANT 13
PLT_JanFeb_Alps.indd 1 2019-01-16 11:02 AM
Alps_Plant_ Jan 2018.indd 1 2019-01-08 12:55 PM
PLT_October2020_AMS.indd 13 2020-10-02 1:38 PMCOVID-19
Hit hard by market Plan for growth.
Focus on
disruptions, manufacturers PHOTO: STOCK.ADOBE.COM
are rethinking strategy. current and future landscape.
3.
GROWTH
Workforce management.
BY DAVID LINTON Unprecedented challenges
have strained the HR capabilities
S
upply chain disruptions of many manufacturers that have
and increasing costs are laid off staff as production lines
eroding competitiveness. As were halted. Or they were faced
FIVE STEPS TO TAKE DURING
manufacturers pass through the with a labour shortage caused by
recovery stage of the COVID-19 the closing of borders.
pandemic and think about Consult an HR advisory team
growth strategies, there are a THE ECONOMIC RECOVERY about return-to-work programs,
policy updates, leadership and
few areas to keep top-of-mind. management support, and a staff
What needs to change? What communications strategy.
does success look like? Where
should the shifts be made to stay
competitive?
4. Business continuity
planning. A robust plan
minimizes risk of disruptions as
Here are five areas for building conditions change. Be ready to
a growth strategy: change with them.
1. Supply chain disruptions.
Traditional supply chains –
both direct material supply and
Build, test and deploy a plan to
minimize disruptions as condi-
tions change. Include preserving
product sales – will be disrupt- business continuity, managing
ed for some time. Moreover, cash flow, rethinking budgets,
costs have increased. To remain maintaining important vendor
competitive, find new supply and stakeholder relationships,
channels while minimizing addi- and leveraging technology to
tional cost increases. To combat help keep your various plat-
disrupted sales channels, either forms running.
find new sources of revenue
or expand existing ones. This
might mean new geographies,
5. Cash flow and working
capital management. Dy-
namically reforecast as condi-
new products or new channel tions change to maximize your
partnerships. use of working capital and avoid
Build and execute a plan to cash flow stress.
review and adjust supply sourc- Re-plan as needed, pivoting
es that improves resilience, business at any given point
manages costs and adjusts and react quickly to change.
EXTENSIVE UP-TO-DATE CANADIAN inventory-carrying policies. Re-
view go-to-market options, think
There will be losses in line with
the economic downturn. That
LABOUR MARKET INTELLIGENCE about diversifying your product
portfolio and prepare to expand
stresses the importance of man-
aging liquidity and cash flow
into new sales channels. now, taking uncertainties into
ACCESS DATA FOCUSED ON WAGES, TURNOVER,
VACANCIES, PROJECTED INCREASES AND MORE!
Also, this year, the ManufacturingGPS survey is
2. Margin erosion. Reduced
margins will continue for
the foreseeable future. Your
account for future planning.
Addressing these issues will
help increase market share with-
exploring experiences in training across the manufacturing
growth strategy must address the out sacrificing margin.
sector. Through this survey, we will be able to learn about
employers’ motivations for investing in skills training, fact direct material costs have
as well as their preferences for funding models that increased while some costs have This is an edited version of a
support their investments. remained fixed. longer article (Æ) contributed
Incorporate reductions in by BDO Canada LLP (www.
direct material costs and fixed bdo.ca), an accounting, tax,
costs, while increasing revenue consulting and advisory firm.
and productivity. This might Contact David Linton, partner
include automating production and BDO Consulting’s national
lines, retooling and retraining manufacturing and distribu-
staff. Pivoting from what’s cur- tion leader at (647) 795-8008.
rently being produced may be a
solution. Stay on top of financial Comments?
forecasting to respond to the E-mail jterrett@plant.ca.
14 PLANT October 2020
PLT_ExcellenceinMFG_Oct20.indd 1 2020-09-23 2:08 PM
PLT_October2020_AMS.indd 14 2020-10-02 1:38 PMPERFORMANCE
Ready to COACH?
• Are your frontline leaders more clarity about what to do
clear about priorities? next.
Go to the production floor to
ask the frontline leaders direct- Hugh Alley is an industrial en-
MAKING USE OF NEW SKILLS ly, “What do you understand to gineer based in the Vancouver
be the priorities of the organi- area who helps organizations
Obstacles and escalating ties, only urgent requests. zation right now?” and “What achieve significant perfor-
priorities can sap a team If you are frustrated your lat- things are currently preventing mance gains. Call (604) 866-
est initiative is floundering, ask you from addressing those pri- 1502 or e-mail hughralley@
leader’s will to learn. yourself the following questions: orities?” Don’t argue or correct gmail.com.
• What unintended obstacles their answers. Just listen, then
BY HUGH ALLEY make it hard to do what is thank them. Comments?
asked? These answers will provide E-mail jterrett@plant.ca.
L
ean expert (Modele Con-
sulting) Dorsey Sherman’s
presentation at the KataCon6
FIND OUT HOW
conference in February ques-
tioned the meaning of the word
“coach.” During the discussion,
Mike Rother, author of Toyota
Kata, asked how much man-
agers, supervisors and team
YOUR INDUSTRY 4.0 ADOPTION
leaders really wanted to develop COMPARES WITH OTHER
their skills. Did they want to
learn to coach, or were they just CANADIAN MANUFACTURERS
doing it to respond to pressure?
Many answers reflected dis-
interest. One attendee reported A FREE ONLINE PRESENTATION
November 2 • 2 pm EST.
a coaching program where 30
managers/supervisors finished a
90-day program but only 15% of
them actually carried on using
their new skills.
Join us November 2 at 2pm EST as
What can we learn from this?
2021 Jason Myers CEO of Next Generation
Here are five possible conclu- ADVANCED Manufacturing and Will Mazgay, Editor of
sions: MANUFACTURING Canadian Manufacturing, discuss the results
1. The employer didn’t measure OUTLOOK R E P O R T of the Advanced Manufacturing Outlook
or reward the behaviour so report and the adoption of Industry 4.0
technologies by Canadian companies.
they ignored it.
2. Only outcomes were rewarded,
people development is ignored.
3. Frontline managers face so Industry 4.0 is
here, are Canadian
many ‘priorities’ the initiative Manufacturers ready?
got lost.
4. Frontline managers were pre-
viously chastised for the new
STOCK.ADOBE.COM
behaviour. Published by: Sponsored by:
5. Participants felt discouraged Jayson Myers Will Mazgay
Chief Executive Officer Editor
by the obstacles to using their PLT_AdvMfg_Nov2020_AMS.indd 1
Next Generation Canadian Manufacturing
new skills. Manufacturing Canada magazine
But two factors point to the
best answer.
The first is something Deming REGISTER ONLINE: bit.ly/indstry4report
talked about 60 years ago. A lot
of people discouraged by obsta-
cles put in their way give up. WEBINAR SPONSORED BY REPORT SPONSORS
The other comes courtesy of a
2015 Gallup study. It found while
executives typically have 10
priorities, at the front line they
become over 40 ‘priorities.’ With
that many, there are no priori-
www.plant.ca PLT_2021AMO_report_ISL_SVA.indd 1
PLANT 15
2020-09-30 12:50 PM
PLT_October2020_AMS.indd 15 2020-10-02 1:38 PMINDUSTRY 4.0
Survey shows more
manufacturers are
investing in the future.
BY JOE TERRETT, EDITOR
C
anadian manufacturers
are not technology leaders.
Most are small, so they are
inclined to follow once a tech-
nology is proven and the costs
come down.
The 2021 Advanced Manufac-
turing Outlook survey, conduct-
ed by Toronto research firm RK Robotics and automation lead investment choices. PHOTO: BLUE PLANET STUDIO - STOCK.ADOBE.COM
Insights for Annex Business
Getting
Media publications Canadian flow overwhelm the next step in
Manufacturing and PLANT the process. And consider the re-
Magazine, shows companies are quirements needed to implement
SMARTER
more engaged with Industry 4.0 a technology solution profitably,
and the “smart factory” than last such as the skills needed to
year’s survey respondents, but operate the systems, data flow,
they have concerns. And there communications and internal
are still those who are reluctant processes.
to adopt or are not interested. NGen is helping companies
COMPANIES ENGAGE WITH
Thirty per cent of senior exec- segment technology in more
utives, managers and owners of manageable ways. There are
manufacturing operations are also groups that offer help, such
applying industrial internet of DIGITAL TECHNOLOGY as MTech Hub in Burlington,
things (IIoT). That compares to Ont. (www.mtechhub.ca) a
24% of those who participated in Manufacturing Canada. The not- solution needed to do the job. non-profit that focuses on digital
the 2020 outlook survey, while for-profit is focused on matching And it’s not just about jumping transformation, hosted at its
another 17% have a plan, more companies with advanced tech- in and investing in digital tech- innovation centre.
than doubling last year’s re- nologies. “With the use of digital nologies. He observes a mistake He says companies should
sponse. And 23% are evaluating technology, whether its commu- many manufacturers make is to also be looking at how technol-
the technology. Thirty per cent nication, connecting factories invest in solutions looking for a ogy adds value for the customer
are out of the loop compared to and work flow or supply chains, problem, rather than the other in terms of product, service and
39% from last year’s sample. it has become much more evi- way around. collaboration. And there’s a role
There are several reasons dent why that’s important.” to play helping the customer add
identified for not investing in ad- He says it also shows the im- Solving problems value to its customers. “Part of
vanced technologies, but leading portance of having guidance and “My advice is to figure out what the change we’re seeing with
the list are difficulty integrating some sort of playbook; it’s about the business model is, what you Industry 4.0 is it’s driving a more
it in existing systems, followed having the processes in place to want to do, what processes you collaborative model of the value
by a lack of skills to support manage the data and achieve the need to put in place, and what chain than a purely transaction-
investment. desired business objectives. “It’s processes need to be improved, al model of how the supply chain
The top reason for applying not as intimidating as people then go out and find the right works.”
the technology is to improve ef- think,” he adds. solution,” he says. Business and The future looks bright for
ficiency and productivity (41%), Manufacturers have faced skills requirements (getting the companies that respond quickly
but improving maintenance challenges implementing job done using the technology to changes in the marketplace,
functions, and analysis of data technology, most (60%) iden- that’s on hand) must be part of focus on innovation, bring new
are also high on the list. Key tifying funding, plus a lack of the project document. products to market, or improve
benefits reported by 76% of man- skilled talent (47%), resistance He cautions against using them, as many have done in
ufacturers are reducing down- to change (41%) and integrating technology to solve a problem response to the pandemic.
time, increased throughput and legacy technology (40%). that could be fixed by improving The survey received 183 re-
increased quality of product. Myers offered some tips to the efficiency of an existing pro- sponses from company leaders.
“[The survey] really shows help ease companies into more cess. And beware of bringing in Look for a copy of the report
how COVID-19 has accelerated advanced manufacturing, noting technology for one problem that with roundtable comments at
adoption of digital technolo- there’s plenty of help available, causes trouble elsewhere. He www.plant.ca.
gies, even if it means remote and they don’t have to be tech- cites one company that automat-
working,” says Jayson Myers, nology experts. But companies ed part of its process to increase Comments?
CEO of Next Generation (NGen) do need to be experts on the flow, only to see the increased E-mail jterrett@plant.ca
16 PLANT October 2020
PLT_October2020_AMS.indd 16 2020-10-02 1:38 PMYou can also read
