Plastics Industry Takes Grievances on U.S.-China Trade Relations to Congress

In extensive comments recently submitted to the House Ways and Means Committee, SPI highlighted the sweeping sentiment of the plastics industry that U.S. foreign trade policies and unfair competition from China are leading factors in the decline of the nation's plastics manufacturing industry. SPI referenced its recent global trade report, which indicated a $14-billion trade deficit in contained plastics products in 2002, of which more than half of that deficit is attributed to trade with China. More importantly, the comments contained anecdotal data documenting proof of harm collected from the injection molding, moldmaking and blown film manufacturing sectors, and supporting SPI's assertion that the U.S. plastics industry is suffering as a result of devastating economic conditions and deleterious domestic and foreign trade policies. SPI thanks those of you who provided examples of how unfair trade practices have hurt your ability to compete. If you have a story about how your company's business has been adversely affected by foreign trade, please take time to forward it to SPI South at prastatt@socplas.org. Access the full text of SPI's Comments by clicking on the link. For more information, contact Lori Anderson, (202) 974-5281 or email landerso@socplas.org.

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Some Senators Have Concerns About Association Healthcare Plans (AHP)

Thanks to everyone who has written their U.S. Senators asking their support for The Small Business Health Care Fairness Act (HR 660 and S. 545). If passed by Congress, it will allow small businesses to purchase coverage through associations that meet federal requirements, giving them greater bargaining power and a more level playing field. The Congressional Budget Office has estimated that AHPs would lower health insurance premiums for small businesses by 13-25 percent. If you haven't already, please write your Senators requesting that they support S. 545. Click here for more information on SPI South's AHP Grassroots Initiative.

With all the benefits that AHPs will provide, some in Congress are still cautious about supporting this legislation. Their concerns stems from the original ERISA (Employee Retirement Income Security Act 1974) that permitted the establishment of association healthcare plans that were free from state regulation and oversight. Due to a number of them becoming insolvent from fraud and abuse, Congress brought the plans under state regulation in 1983. According to a story in the Wall Street Journal, some insurance companies established associations for the sole purpose of offering discounted insurance rates. In many cases, the rates were not discounted and the associations did not disclose their affiliation with insurance companies.

With these concerns in mind, the proposed legislation seeks to ensure that the potential for fraud and abuse are eliminated. Per the legislation, any association sponsoring an insurance plan must have been in existence for at least three years for substantial purposes other than providing health insurance coverage. Tough criminal penalties for willful misrepresentation as an exempt AHP or collectively bargained status are also included in the language, as well as provisions for cease activity orders against fraudulent health plans and mandates establishing the responsibility of the board of trustees for meeting required claims procedures.

In addition to the Bush Administration's support of the legislation, Labor Secretary Chao and Small Business Administrator Barreto actively support it. To address some common concerns, Secretary Chao has stated that the Labor Department's Employee Benefits Security Administration would regulate AHPs as it currently does with other health plans covering 72 million people. The legislation also requires the Secretary of Labor to consult with states regarding the regulation of AHPs domiciled in their state. The Secretary of Labor must also report to Congress no later than January 1, 2006, on the effect of AHPs in reducing the number of uninsured individuals.

Additionally, AHPs that offer benefit options that are not fully-insured must have reserves sufficient for unearned contributions, benefit liabilities, expected administrative costs and any other obligations, as well as a margin for error recommended by a qualified actuary. AHPs must also obtain aggregate and specific stop-loss insurance; indemnification insurance for any claims if the plan is terminated and must make annual payments to an Association Health Plan Fund to guarantee that indemnification insurance is always available. In addition, an AHP must maintain surplus reserves of between $500,000 and $2 million, depending on the level of stop-loss coverage. If an AHP is unable to provide benefits when due or is otherwise in a financially hazardous condition, the Secretary of Labor is required to act as a trustee to administer the plan for the duration of the insolvency. A certified AHP may terminate only if the trustees provide 60 days advanced written notice to participants and beneficiaries and submit a plan for timely payment of all benefit obligations. A Solvency Standards Working Group is to be established within 90 days after enactment to recommend initial regulations.

For more information, contact Maureen Healey, (202) 974-5219 or email mhealey@socplas.org.

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Automation - Today's Necessity for Tomorrow's Flexibility

In today's competitive market, molders are seeking advantages over their competitors by utilizing four-level stack molds to maximize the amount of product and types of products that are produced. When implementing a high capacity four-level mold, the typical concern focuses on the capability of collecting a significant quantity of product from the mold while minimizing scrap, as well as the option to quickly change the machine over to process another product in a fast and efficient manner when required. CBW Automation has answered this challenge by developing a flexible side entry robot system to meet the automation requirements for these high capacity four level molds.

The CBW 4-Level Side Entry Robot System utilizes the time tested High-Speed Retrieval System (HSRS), made from ultra-light carbon fiber material similar to that used in aircraft, and is capable of withstanding accelerations forces up to 30G's. Often times, the HSRS can capture parts from the mold faster than freefall. Part capture is produced by high-flow vacuum part receivers installed on the HSRS and utilizing vacuum transducers to sense part capture before exiting the mold. In addition, the 4-Level Robot offers all the significant economic benefits associated with the choice of a CBW robot retrieval system as compared to freefall, which include:

• Elimination of scrap due to oil or grease contaminants.
• Elimination of mold protection stoppage and associated mold damage by robot verification of part capture prior to exit from mold.
• Optimized cycle times.
• Reduced labor costs.

The CBW 4-Level Robots flexibility includes the new CBW Lumera Controls Platform offering the molder a PC/Windows-based interface for making product changes quickly and easily. The mechanical features include an adjustable retrieval system, transfer and stacking (RTS) module which allow the carbon retrieval support system to expand and compress for different height products with a single adjustment. This feature provides independent adjustment wheels with linear bearings and can accurately move the HSRS frame to the desired position. The associated downstream product handling tooling for each product is designed with fixed attachment points to provide easy tooling removal and replacement when switching between products.

In order to keep pace with the needs and expectations of today's high volume molders and to provide the flexibility needed to adapt quickly for future opportunities, CBW Automation has designed a wide variety of product handling methods into the 4-Level Robot. These can be as simple as product stacking and conveyance to an operator for manual carton loading or up to a fully automatic case packing option.

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Six is Better Than Three! Six-Axis Robots Benefit Plastic Molders

Plastic injection molders are increasingly adding value to their activities by incorporating additional services such as in mold decoration, insert loading and finishing/assembly operations into the basic de-molding cycle. These extra tasks are changing the traditional approach to automation and the selection of industrial robots. Typically, automation solutions for injection molding were built around x, y, z, Cartesian gantry systems offering high speed de-molding using a slim forearm with simple programming requirements. Unfortunately, this type of automation can only accommodate top loading molding machines, has a fairly large footprint and limited movement flexibility. Not to mention, additional operations are not easily incorporated into the remolding cycle as the automation tended to be installed when the molding machine was purchased and stayed with the machine through its working life since retrofit was difficult.

These constraints, coupled with the growing demand to develop the molding operation into a central process at the heart of a component-manufacturing cell, have lead many injection molders to integrate six-axis, industrial robots into their existing production cells. The six-axis robot is now regarded as the first choice on new installations as it provides all the advantages of the simple Cartesian systems (high speed, slim forearm and simple programming) while allowing the incorporation of additional tasks. The six degrees of freedom in movement provide an extremely large work envelope within a small footprint, the robots can be floor, wall or ceiling mounted, and they are able to accommodate both top and side loading molding machines.

Stäubli's RXplastics range, the first six-axis robots designed specifically for the plastics industry, were developed through detailed consultation and evaluation by both injection molding companies and system integrators operating in the plastics sector. The accuracy and inherent rigidity of the six-axis robot, typified by Stäubli RXplastics range, brings additional benefits on speed of demolding. The small forearm minimizes the mold opening time. The high positional accuracy means that the robot arm can be moved to precisely the demolding position required without unnecessary and unplanned movement to the gripper assembly attached to the robot arm. With die interrupt times of just 0.59 seconds consistently achieved on specific remolding applications, Stäubli may have the fastest industrial robot around.

The overall cost of a six-axis robot is much less than the typical three-axis system with gantry. An investment decision for an industrial robot, generally speaking, will see a return on investment within 12 months or less through increased productivity and reduced material waste alone. Benefits to operator safety are realized immediately.

Stäubli Unimation is an international family-owned group founded over 100 years ago in Switzerland employing 3,300 worldwide. Robotic production is centered south of Geneva with facilities across Europe, North and South America and the Far East. The U.S. Corporate Headquarters are located in Duncan, SC, with other offices in California and Michigan.

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Integrated Systems

Today's competitive global economy has forced molders to evaluate every aspect of their operations as North American molders are increasingly facing offshore competition with cheaper labor and lower tooling costs. One way to overcome this obstacle is to reduce the labor component as a percentage of part cost with an automated, higher output system. In the current global environment, successful molders have come to the same conclusion: Automate to survive!

A key aspect of automating a work cell is the successful integration of all the system components. Too often though, a new work cell does not operate according to the originally forecasted productivity. Many times the causes of these problems are rooted in the original integration of the cell. As a result, the company ends up living with deficiencies such as higher scrap, labor, maintenance and process inefficiencies for the life of the system. A work cell containing a machine, mold and automation requires proper planning, a focused and dedicated team, and the full testing and validation of the entire system to reduce the timeline and costs and to improve the productivity of the equipment. However, due to the current economy many injection molders have cut back on in-house resources; reducing the time and energy that the engineering and project management team have to devote to new projects, leading to increased costs and delays when installing new systems.

In the 1960's, Husky pioneered the approach of automating integrated work cells to maximize productivity and has completed over 3,000 systems to date. Husky's Automated Systems Group is comprised of over 35 people averaging more than 10 years of industry experience. Its team of designers, testers and project managers work to complement their customers' resources in order to deliver automation solutions that work with extensive planning, focus and rigorous testing of the work cells. The end result is as successfully integrated automated system with superior output per capital.

In the Southern region, Husky's 16,000 sq. ft. technical center located in Peachtree City, Georgia is designed as an injection molding plant with four bays available for the integration and optimization of automated systems. Husky's regional technical centers provide:

• Innovative turnkey solutions that reduce manufacturing costs and increase productivity.
• System concepting and engineering.
• Focused project management.
• A dedicated team.
• Single-source responsibility.
• Speed to market.
• Reduced risk.

For questions regarding how Husky can help with your next system integration in the Southeast, contact Steve Logan, (770) 487-6234, ext. 2231.

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End of Arm Tooling Solutions

When you think about automating your injection molding machine, end of arm tooling is probably not high on your priority list. What comes to mind first are the robots, robot controls, the interfacing between the robot and the injection molding machine, and the safety enclosure. You may even consider secondary operations for your robot such as degating or packaging parts. While these tasks receive full attention, the robot attachment, better known as End of Arm Tooling (EOAT) usually get very little attention.

Typically, the robot manufacturer or system integrator will supply the most cost efficient EOAT solution for the initial parts removal program it is contracted to perform. Many robot manufacturers supply only a limited array of EOAT components for simple parts removal. The end of arm tool only seems to become a priority when the robot drops the parts, scratches them or has difficulty removing them from the mold. Often, when a new mold comes into the plant, the honeymoon period with your new robot soon ends, as the mold itself is generally not built with parts removal automation in mind.

After a couple test shots, your robot programmer needs to program the robot, but first an end of arm tool needs to be rigged so the robot can grab the part. Usually maintenance or set up personnel will build an EOAT with components already being used in the plant. Shortly thereafter, it becomes obvious to all involved that a full line of erector set style, end of arm tool components are needed for optimal automated parts removal from injection molding machines.

As a pioneer of end of arm tool hardware, >ASS< Maschinenbau GmbH in Cologne Germany has been building and designing end of arm tools for over 20 years, and its subsidiary >ATS< distributes a full line of >ASS< EOAT hardware in the U.S. The company specializes in applications for the plastics industry and offers off the shelf components that easily fit into the EOAT erector set for every injection molding application. For more information, contact Juergen Kortberg of ATS, (734) 542-4398 or email info@eoat.net.

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Mega Plastics Week Planned for Charlotte in March 2004

If you are a plastics processor, designer, moldmaker or an OEM that outsources plastics parts manufacturing, then you need to be in Charlotte, NC, March 20-25, 2004, for a week of mega value as several industry groups with overlapping interests host technical conferences and exhibits showcasing the latest in design and processing technologies at the Charlotte Convention Center. The Industrial Designers Society of America's Southern District will kick off the week's activities on Saturday, March 20, with its spring conference. That event will be followed by the SPI Structural Plastics Division's (SPD's) highly regarded technical conference and new-product design competition and the Plastics News-organized Plastics Encounter trade show and Moldmaking Technology magazine's two-day, multi-track conference. This collection of events offers plastics processors the opportunity to establish customer relationships with OEMs, new suppliers, and designers while saving money traveling to only one affordable and accessible location.

"Over the years, I have heard processors say they wished their customers and the product designers had a greater understanding of plastics processing and that they wanted a forum that would bring the various groups together so they could learn from one another," said Richard Sturgis, director of Southern operations for The Society of the Plastics Industry. "These events, particularly the Structural Plastics Division conference, provide a prefect opportunity for OEMs, product designers and plastics processors to engage in productive dialogue and to enhance how their various disciplines interact in the production process."

For 31 years, SPD's Annual Technical Conference's unparalleled learning opportunities have attracted hundreds of attendees from around the world with over 30 technical presentations given by industry experts and hands-on review of innovative parts at its new-product design competition. By co-locating this event with the Plastics Encounter, all entries for the new-product design competition will be showcased in the SPD Pavilion and Design Gallery on the Encounter show floor broadening the exposure of those entering part in the competition. Click on the following link for more information on the SPD Technical Conference & New-Product Design Competition.

The Westin Charlotte, located across the street from the Charlotte Convention Center, has been selected as the headquarter hotel for the Structural Plastics 2004 Conference. A discounted rate of $129 per night is available under the Structural Plastics Conference room block. To secure this rate, reservations must be made by February 25, 2004, by calling 1-866-837-4148.

Click on the following links for more information on the others industry events:

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