Industrial Archives

Interest rates forecast + construction and manufacturing

Written by Christopher Richmann on August 19, 2024. Posted in Coating & Finish Systems, Compressed Air, Construction, General, Industrial, Industries Served, Manufactured housing, Manufacturing. Leave a Comment

Interest rates vary by industry, lender, borrower, loan type, etc. However, almost all interest rates are affected by the Federal Reserve, which sets the rate that banks use to lend money to each other. This rate is known as the “fed fund rate,” and it influences all other loans.

So while the Federal Reserve doesn’t have direct control over, say, mortgage or auto-loan interest rates, their decisions wield a strong influence.

The Federal Reserve has two specific goals: increasing employment and creating stable, affordable prices. They attempt these objectives by changing rates to fit specific situations. When the market is seeing rapid inflation, it’s often because overall demand for products and services is too high. To ease this demand, they may increase rates and try to cool the market. However, if the market is stagnant, they may lower rates, which would (in theory) stimulate economic activity and overall demand.

(This, we admit, is a far-too-simple explanation of the Federal Reserve and interest rates.)

Decisions made by the Federal Reserve have a massive impact on many industries, including manufacturing and construction. If you work in these industries, it helps to understand what the Federal Reserve will do, why it will do it, and what impact it will have on your business.

Interest rates forecast

When inflation was running wild, the Federal Reserve attempted to cool the market by increasing interest rates. It was believed that by reducing rates, overall demand would be tempered. Using the supply-demand principle of basic economics, it was hoped that by making it more expensive to borrow money, people would start purchasing less, reducing demand and stopping runaway inflation.

Since the summer of 2023, interest rates have been kept around 5.5%, which is higher than the levels from the previous ten years. But, with inflation cooling, it appears the Federal Reserve is now open to lowering interest rates. Already, the Fed has telegraphed that rates will be cut as early as September.

According to a Morningstar report, Fed officials are expected to “deliver hefty cuts” over the next few years. The Federal Reserve rate could drop to 1.75% by the end of 2026.

The Federal Reserve Bank of St. Louis is making a similar prediction. Their forecast chart calls for interest rates to drop to 4.1% in 2025 and 3.1% by 2026.

So, by almost all accounts, interest rates will drop. But what will this mean for your industry?

Lower interest rates: the impact on manufacturing

Whether manufacturers produce massive equipment or small components, they are impacted by interest rates. Demand for their products will fluctuate quickly after interest-rate hikes are announced, as buyers try to make purchases before the increases take effect. When high rates are in play, consumers and businesses often reconsider large purchases.

High interest rates have clear implications for manufacturers producing large, expensive products. However, the impact also affects makers of small parts and components, who rely on orders from larger manufacturers. The components they produce may not be expensive, but demand for the final product could decline when interest rates are high.

Alternately, when interest rates are low, manufacturing companies experience high demand. It is far more affordable for customers to borrow money, which means large-scale orders, often totaling millions of dollars, can be reduced by tens of thousands.

With an expectation for lower interest rates in the next few years, customers may delay their orders. Instead of ordering now, they may wait a year or two, expecting that by mid-year 2025 or 2026, the cost of borrowing will be much lower. Potentially, this could create a lull for the remainder of the year and a rapid increase in activity once low interest rates are in action.

Lower interest rates: the impact on construction

The construction industry, whether it’s traditional construction or offsite construction (also known as modular), has a unique, two-fold relationship to interest rates. Builders are directly impacted by interest rates, as they often borrow money for materials, tools, and development property. The industry also relies on a consumer base that is heavily influenced by interest rates. Construction (particularly residential) needs homebuyers, but with high interest rates, consumers hesitate to buy homes.

Recently, the construction industry has struggled to maintain growth, although total output remains relatively high. Throughout most of 2022, roughly 1.6 to 1.7 million privately owned housing units were under construction, according to the Federal Reserve Bank of St. Louis. The number has stayed steady, but it has dropped over the past year, from nearly 1.7 million to under 1.6 million.

According to a report from Bluebeam, a construction software company, “higher interest rates have completely frozen the owner-occupied residential construction market.” However, if rates come down, as expected, we could see increased demand for new construction.

Lower interest rates could also create more demand in commercial construction. High rates create a barrier in commercial building, which has projects that are far more expensive (typically) than residential building. With lower interest rates, we could see refreshed activity in commercial construction.

Reduce your impact with Elevated

No matter what the future holds, Elevated Industrial Solutions can be your partner in the manufacturing and construction industries. We understand the needs of dynamic companies like yours, helping you make the right decisions about your company, its processes, and more. Our solutions include coating and finishing, industrial supplies, compressed air systems and services, and assembly tools and services.

Assembly tools increase safety

Written by Christopher Richmann on July 12, 2024. Posted in Assembly tools, Featured, Industrial, Industrial, Industrial, Manufactured housing, Manufacturing, Metalworking, Safety. Leave a Comment

Successful manufacturers and industrial leaders understand the importance of safety.

Maintaining a safe environment through company culture and attention to detail is critical to the long-term success of your organization. It reduces risk and, more importantly, ensures employees are free from harm. It’s also the right thing to do.

There are numerous ways to enhance safety. Company leaders can appropriately organize a facility, decrease the need for climbing ladders, automate dangerous tasks, and remove safety barriers. Training, of course, is one of the most important tools for maintaining a safe working environment. (For example, many companies provide training for dealing with silica dust.)

The correct assembly tools also improve safety. It’s also critical to ensure these electric, pneumatic, and battery-operated tools are up-to-date and maintained.

Safety first: a legal and financial argument

First and foremost, you should focus on safety because it’s the right thing to do. As a manufacturing manager, leader, or owner, it’s your moral and ethical responsibility to create a safe working environment. This means a physical environment that is as safe as possible and a company culture that relentlessly focuses on safety.

It’s also the law, with various legal implications for companies that do not meet various safety standards. Not meeting these statutes can incur fines, injury claims, and more. As the claims and fines go to court, the public is aware and your brand may suffer.

Safety also brings financial benefits.

According to the National Safety Council, the average cost for all workers’ injury claims in 2020-2021 was $41,757. The most expensive type of claims were related to motor vehicles; these had an average cost above $89,000. The least expensive was a cut or scrape, which still cost around $24,000. Strains, which can be reduced by assembly tools, cost an average of $36,200.

The exact savings from a safety investment can be extremely difficult to calculate. The general wisdom is that for every dollar you spend in safety, you’ll realize about $2 in savings. If that holds, investing $50,000 in safety equipment would save $100,000. Even half that number would be a solid ROI.

So there are financial motivations, as well as legal and ethical reasons, to invest in safety equipment. Some of this investment, at least for manufacturers, will be in high-quality assembly tools that reduce issues while increasing productivity.

How assembly tools increase safety for your team

Reduce repetitive strain

Employees in manufacturing are subject to regular physical demands. But it’s not a short-term, intense burst of physical activity; it’s steady, repetitive motion. Performing the same task repeatedly will test nerves, muscles, and joints, all of which could become damaged.

Assembly tools, however, can reduce repetitive motions and create an easier overall process. They can eliminate repetitive work that strains muscles and creates injury, boosting productivity while enhancing workplace safety.

Decrease mental fatigue to reduce lapses in attention

Repetitive industrial tasks will not only wear out muscles, they can also cause a mind to become fatigued or inattentive. According to OSHA, fatigued workers may lack the “energy to do their jobs safely or effectively.” They can also have difficulty paying attention or take longer to react. They could even take more risks, increasing the chance of injuries.

Reliable assembly tools could reduce the need for repetitive tasks and increase overall safety by helping workers stay sharp, alert, and mentally engaged.

Use automatic shutoffs

High-quality assembly tools have various safety features built into their design. These features ensure that dangerous activity is avoided and people are protected throughout a long workday.

For instance, some tools’ automatic shutoffs activate after a variety of triggers. If an unsafe use or mistake is detected, the tool will automatically shut off to prevent potential injury.

Safety interlocks

Another assembly tool feature that can increase safety is an interlock. An interlock is a device or system that prevents a user from making an inappropriate or unsafe maneuver with a tool. If someone uses a tool inappropriately, the interlock adjusts the system to a safer state.

For safety reasons, interlocks prevent a user from making unsafe actions or prevent use if an unsafe condition is detected. For example, some assembly tools have guards that keep users from touching a moving component, such as a cutter or grinder. An interlock system will make the tool nonoperational if this guard is removed.

Reduce or eliminate “torque reaction”

Torque reaction is related to repetitive-motion strains. Essentially, when an operator is running a screwing, bolting, or twisting tool of some type, they use their muscles to absorb the heavy torquing and twisting motion. This creates fatigue and weakness, especially when absorbing the torque is a regular part of the day.

Fortunately, torque reaction arms are available. These assembly tools, which can be used in various manufacturing environments, take the tool weight and torque out of the operator’s hands. This reduces wear and tear on the operator, enhances production quality, saves time, and reduces costs from downtime and tool use.

Equipment age matters and so does maintenance

Finally, we’ll leave you with a simple reminder: the age of your assembly tools and equipment matters. There is a connection between the age of tools and the increased potential for injury. Occupational hazard studies have found that the age of equipment can create a higher rate of injury. Much of this is connected to modern features, and many of the studies don’t involve industrial equipment, but it still suggests that when you have new, up-to-date equipment, you are more likely to see fewer injuries.

Better, newer equipment leads to higher safety or equipment that is maintained and re-calibrated from a certified lab. So if you have older equipment and items that need to be updated, contact an industrial professional today for updated equipment.

Safety equipment and gear from professionals

Safety is the most important aspect of properly managing and operating a facility. When you are dedicated to safety, your plant will be more profitable and productive. You’ll also be a more attractive place to work, an essential factor when expanding your team is a high priority.

Get the latest advancements, best brands, and product variety in industrial safety equipment and safety supplies. Plus, turn to us for refurbished tools, maintenance, and calibration from an A2LA (1522.01) certified lab. We’re experts in safety.

Top challenges facing the metal fabrication industry

Written by Christopher Richmann on June 18, 2024. Posted in Coating & Finish Systems, Compressed Air, Industrial, Industrial, Industrial, Manufacturing, Metalworking. Leave a Comment

The metal fabrication industry is going through numerous changes quickly. Technology is evolving, customer demands are changing, and new materials are being requested. At the same time, there is a lack of skilled workers and fewer raw materials available.

The obstacles are seemingly infinite, but this is a resilient industry. To help prepare for the future, here are the main challenges facing the metal fabrication industry…

Rising costs

Although the issue of rising costs is universal, inflation is having a significant impact on this industry. As consumers know, the cost of raw materials is increasing. In the fourth quarter of 2015, for instance, the price of iron ore was about $48 per ton. It rose to more than $87 in 2019. In 2021 it skyrocketed to nearly $200! The price is down from that high mark, thanks to inflation reduction measures, but is still more than $100.

Demand for customization

Consumers are demanding faster delivery speeds for their metal products and expect complete customization. A successful metal manufacturer strives to meet these demands, no matter how difficult. These customizations and specializations require estimates and quotes. Not only is the product more expensive already with these customizations, but added labor (including the estimates themselves) adds to the cost.

Customization also creates an issue for inventory. In an attempt to leverage lower prices, a shop may purchase a bulk supply of materials. These materials may be useless if a customer demands customized metal products.

Dealing with customization and finding that balance between efficiency and customization demands can be a major issue for metal fabricators.

Limited supply

The pandemic created a significant barrier in the supply chain, which metal fabricators (and manufacturers of all types) are still recovering from. But it’s not just the pandemic, which (as of this writing) started over four years ago; it’s also issues with transportation labor and staff shortages.

There is also a lack of machinery, as machine manufacturers and assembly lines are struggling to create output. Used machinery has become increasingly popular, although this creates obvious concerns for manufacturers who can’t afford a shutdown.

Meeting sustainability expectations

According to McKinsey & Company, “the steel industry is among the three biggest producers of carbon dioxide.” With steel produced in a relatively small number of select locations, it’s a prime candidate for decarbonization. There is demand from both governments and consumers for carbon-friendly metal products, but reducing the overall footprint is not easy.

“Green metal” is mostly achieved by using renewable energy in the manufacturing process. Wind, solar, and hydroelectric power can all make metal fabrication less impactful on the environment, but implementing these changes has a cost. Metal fabricators must weigh the benefits, including the potential for higher sales and lower long-term costs, against the high initial price.

Workforce shortage

No matter the industry, sector, or specific role, there is a shortage of labor. It’s impacting technology, healthcare, transportation, retail, food service, and yes — metal fabrication. There simply aren’t enough CNC operators, machining specialists, and general laborers to meet industry demands. This has led to delays, shortages, missed orders, and an overall sluggishness to the industry as a whole.

To address this problem, people within the industry have made changes and launched new initiatives. One of the biggest efforts is to work with community colleges that can train and educate future metal workers. Community colleges, trade schools, and now high schools are also positioned to attract new operators, increasing the potential job pool.

This is, admittedly, a problem that has been ongoing for years, even decades, but that doesn’t mean it will just fade away. The effort to address workforce shortages must continue. Much like paying the energy bill, investing in the future workforce is now a fundamental part of doing business in the metal fabrication industry.

Adopting and training for technology

Technology is pervasive throughout every industry. In metal manufacturing, successful, competitive fabrication means integrating advanced technology and making it part of everyday operations. It’s no longer a luxury; technology is a must.

The specific technology varies, but it often starts with high-quality, thorough data that can be used to make better purchasing, fabrication, sales, and marketing decisions. Deep-learning AI programs, which integrate robotics into the system and can perform basic tasks like cutting and welding, will be useful for profitability. Even when they are produced in high volume, products fabricated by robots are precise and durable.

Automation will be used to drive efficiency and reduce costs. Companies need to quickly adopt this technology and train their staff to work with these complex yet time-saving machines.

Reduced efficiency, same demand

Earlier, we discussed how customization is in demand, but customers also expect rapid efficiency. Unfortunately, there is an overall reduction in efficiency, caused by many of the factors we have already discussed, including workforce shortages, supply chain issues, and the need for technology training and adoption.

Customers have become accustomed to rapid delivery, but that is no longer the case. A report from The Logic Factory says that the average copper pipeline project has decreased in size by 30%. And yet, the time to market is 15% longer. Smaller orders, more time to complete. This is just one example of how production in metal fabrication and construction has become less efficient.

Demand for lightweight metals

The aerospace and automotive industries, two critical sectors for metal fabrication companies, are demanding more lightweight metals, including aluminum, titanium, and magnesium. These metals have become popular for modern transportation, aviation, and aerospace vehicles, thanks to their strength, durability, and lightweight profile.

This, too, is an ongoing problem. In 2009 there was a demand for roughly 18.7 billion tons of aluminum, according to the Aluminum Association. By 2018, this demand peaked at 28.1 billion tons. Although it dipped, it was still at 26.3 billion in 2021.

Finding material, bringing it into a facility, and meeting the demands of customers who meet lightweight metals, will continue to be an issue for metal fabricators at home and abroad.

Help for fabrication companies

Metal fabrication companies require the right tools, abrasives, adhesives, tapes, and more. Elevated provides a wide variety of readily available industrial supplies for trusted brands. We also offer coating and finishing as well as assembly tools. Plus, we have compressed air systems and services for companies in western Ohio, eastern Michigan, and South Carolina. But it’s more than just having a supply of superior products from trusted brands, Elevated has the expertise to help you meet your goals. We’re there to ensure you’re reducing overall costs, improving quality, increasing safety, and saving time.

3M Xtract sanding system

Written by Christopher Richmann on February 23, 2023. Posted in Abrasives, Featured, Industrial, Industrial, Industrial supplies, Woodworking. Leave a Comment

At Elevated Industrial Solutions, we’re proud to offer the most effective, reliable tools, components, and accessories for a wide variety of industries. We offer leading brands, including 3M, which provides an innovative abrasive system – the Xtract ^TMsanding platform. 3M calls it “clean sanding.”

Why is that part of their tagline? This system provides superior dust extraction and clean sanding for a wide variety of applications, all while maintaining excellent performance from an effective orbital sander.

Xtract creates cleaner work environments

The most impressive aspect of this sanding system is the ability to extract dust particles, removing them from the atmosphere while creating a cleaner, healthier work environment. Using an innovative system that places extraction holes near every single particle of dust, the sander pulls a staggering 99% of all dust, almost creating dust-free sanding. This means a cleaner work environment, less exposure to dust and fine particles, greater productivity, longer disc life, less cleaning, and fewer dust particles on the final product. This all improves the final results while making workers happier.

The system utilizes multiple features to create this impressive dust extraction. It uses a premium net disc that allows dust to pass through, while the unique hole pattern on the film disc allows dust to move from the environment into the sander with ease. No matter where a particle of dust is located, it will be near a hole for quick extraction.

The advanced extraction starts with an open-weave net structure, which ensures every particle is near a dust-extraction hole. As a user sands a material, almost all dust is sucked through the netting and into a fitted backup pad. Then it exists through the vacuum exhaust, where it can be deposited into a filter bag or dust extraction unit.

It delivers the best dust extraction on the market, without requiring the user to line up holes in the sanding unit. All of these features result in faster implementation, less time cleaning, greater productivity, and (most importantly) a safer working environment for you and your team!

Xtract has advanced performance for multiple substrates

Manufacturers of virtually all types can take advantage of the superior performance, cut rate, and dust extraction, as this system is designed for a variety of materials, including wood, metal, and composite.

The net discs from 3M perform well on multiple substrates, and they come in various grades to ensure superb performance no matter what your specific needs. There are coarser grades, which are ideal for tough surfaces, leveling filler and putty, or even the removal of stubborn coatings. People using this abrasive can also select finer grades, which can be used on final finishes or soft substrates like paint or wood.

A cut rate that sets a higher standard

3M provided this chart to demonstrate the cut rate for the Xtract

Before we continue it’s important to cover what cut rate is. Cut rate is the rate at which an abrasive removes material from a surface (wood, metal, etc.); the cut rate is sometimes called the material removal rate (MRR). Cut rates are influenced by particle size, with larger and coarser particles conventionally believed to exhibit faster material removal rates – or high cut rates. Regardless of dust extraction and performance versatility, if a sander can’t complete the job efficiently, it’s not much use, especially on a large industrial scale. The Xtract system delivers one of the best cut rates on the market.

With a new line of abrasives from 3M, the system has a superior cut rate and a longer life. On a solid surface, the 710W features 3M’s proprietary Cubitron II precision-shaped abrasive grain. Cubitron II starts with a cut-rate that is 32% higher than the leading competitor. Not only does it start stronger, but this abrasive also finishes stronger. Cubitron II features a grain that as it wears continually fractures into a sharp point, ending with a 25% higher cut rate through the life of the disc. This all results in better sanding, quicker work, and better productivity. These features make the 3M Xtract sanding system one of the best abrasives and one of the most important tools in your operation.

Xtract features to improve sanding efficiency

Available in the 3M Xtract Electric Random Orbital Sander and the 3M Xtract Pneumatic Random Orbital Sander, this sanding system could add greater productivity and performance to your sanding operations. You can also add the portable dust extractor, filter bags, and a variety of sanding discs with a range of grit sizes.

Elevated can help your woodworking needs

We have recommendations for whatever your operation is, with expertise in abrasives and sanding. Our company has been helping people like you – in the industrial, manufacturing, and construction industry – for more than 60 years. (We can’t believe we started in the 50s.)

Contact Elevated to get a demo or order the 3M Xtract sanding system and other clean sanding solutions for your manufacturing facility.

Time for rapid countertops

Written by Christopher Richmann on December 5, 2022. Posted in Adhesives, Countertop, Industrial, Industrial supplies, Uncategorized. Leave a Comment

Using the best products and materials for your manufacturing operation is imperative. Your tools, equipment, and materials need to meet your high standards, which is why we keep a full inventory of products from Integra Adhesives, a leader in glues and materials for various surfaces, including countertops.

Integra Adhesives’ (Integra) Surface Bonder Rapid is one of the top options for anyone who manufactures products that will be exposed to cold temperatures. With winter around the corner, you can create high-quality, reliable products with Surface Bonder Rapid from Integra! (And you can do it fast!)

About the Surface Bonder Rapid

Surface Bonder Rapid is a specialty adhesive designed for faster production output. It dries faster —without sacrificing strength — reducing wait time and significantly increasing productivity. That’s great if you’re a high-volume manufacturer who needs things done quickly. Because this adhesive is specifically designed to cure in half the time of other products, your fabrication efforts can continue with peak efficiency.

Rapid can be used in many situations, but it’s ideal for mitered edges, deck seams, and vertical applications. It’s no drip. With a high strength, it gives better performance to thinner sheets and can be counted on to create long-lasting surfaces.

Various materials can be fabricated with Surface Bonder Rapid, including:

Natural stone
Quartz
Compact ceramics
Porcelain

Surface Bonder Rapid has a working time of 4 to 8 minutes and a fixture time of 10 to 16 minutes, so your team can apply the adhesive and start working on the material faster than ever.

To meet your specific needs, Surface Bonder Rapid is available in a variety of colors, including shades of gray, brown, white, and black to match every application. Integra has a lab that combines advanced technology and practical knowledge to create color matching that is unsurpassed in the industry. But you don’t need to call their lab to get color information. You can use their app or contact us!

Comparing Rapid to other surface bonder products

We know selecting a specific surface bonder can be tricky. It’s why we developed a comparison chart, so you can select the best Integra Adhesives product for the job. Use this chart from the technical specs and know which product is best for which substrate (stone, engineered stone, porcelain, marble, etc.) and job.

Compare Integra Adhesives Glues

Your source for Integra Adhesives

Integra has a full line of top-quality adhesives, but they do not sell directly to customers. To get their products (which are in high demand), you need to work with a preferred vendor. That’s Elevated.

We’re proud to be one of the leading vendors for Integra Adhesives, with more than 4,000 tubes of Integra products available in warehouses across the nation. We can offer two-day shipping to most locations and have over 100 colors in stock. Plus, we can break a case for those smaller jobs. Our service is unparalleled with people committed to seeing your business succeed. And we carry all lines of surface bonders as well as a range of other countertop products such as caulks and polishers.

To improve your manufacturing and fabrication process, contact us. We have a staff of industry experts, ensuring you get the right materials to increase productivity while reducing costs.