Processing Outlook Report: Materials Processing Segment

Although this encompasses a range of facilities with varying plants, respondents seem to be unified in taking a less severe, yet cautious attitude when looking ahead to 2009 purchases.

Feb 20, 2009

Although this encompasses a range of facilities with varying plants, respondents seem to be unified in taking a less severe, yet cautious attitude when looking ahead to 2009 purchases. Also, while they're not among the early adapters for these new feedstock types, this group does demonstrate a higher level of acceptance for wireless technologies. When it comes to 2009 vs. 2008 purchasing projections:

58 percent indicated that they will spend more on safety programs and related products in 2009. Last year, more than 41 percent spent more than $40,000 in the category.
Conversely, 71 percent of respondents said that they will not invest as much this year on automation equipment as they did in 2008. Last year, 46 percent spent between $40,000 and $100,000 in this category.
Looking at overall capital equipment expenditures, 26 percent of respondents said that they spent more than $750,000 last year, but 52 percent said that they will spend less in 2009 due to economic conditions.

In addressing energy costs:

39 percent said that energy conservation initiatives have offset price hikes in keeping costs even.
22 percent said that costs are down due to internal energy conservation practices and lower oil prices.
The remainder indicated that they continue to deal with rising energy costs.

In working to reduce energy usage (respondents could check all initiatives that applied to their facility):

79 percent have started to do simpler things like shutting off lights, and relying less prominently on heating and air-conditioning services to help control costs.
64 percent cited machinery overhauls and increasing preventive maintenance practices as a way to reduce the amount of energy needed to power their older equipment.
50 percent also added instrumentation that allows for better equipment monitoring and control in maximizing energy usage.
47 percent have implemented new, more efficient lighting products.
36 percent said that they have purchased new, more efficient equipment.

When asked which initiatives could be implemented in order to realize greater energy efficiency gains, while least impacting operational efforts:

41 percent identified facility improvements.
The remaining were split between improved usage patterns and individual equipment upgrades.

Questions were also asked regarding the respondents' familiarity and use of new feedstocks:

The feedstocks that they are most familiar with, in order of precedence, are plant by-products, biomass and agricultural by-products.
Far and away, the most prominently used of the newer feedstock types is plant by-products.
The feedstock that respondents feel has the most promise moving forward is, again, plant by-products.
The biggest obstacle readers see with the integration of these non-fossil fuel sources are the associated new equipment costs.

On the software front:

The most important software functionality cited was inventory management (31 percent), followed by remote equipment monitoring (27 percent).
The greatest realized gains from software investments were operational efficiencies (38 percent) and quality control (21 percent).
Looking ahead, respondents' greatest needs are simulation capabilities and inventory management.

In terms of wireless technology integration, readers again cited equipment monitoring, along with data capture, as having the greatest impact on their operations, but only 15 percent said that they have retrofitted current equipment with wireless capabilities. The greatest benefits cited for wireless use were fewer location limitations and the absence of cables.