Wednesday, June 25th, 2014

Sholtis Credits Staff with ‘Manufacturer of the Year’ Award

By Mike Verespej, SPI Correspondent

You could fill a book with the long laundry list of accomplishments that led to injection-molding company Plastic Molding Technology Inc. being chosen in March as the 2014 small company Manufacturer of the Year by the Manufacturing Leadership Council. In its 10th year, Frost & Sullivan’s Manufacturing Leadership Council honors companies and individuals that are shaping the future of global manufacturing.

And while certainly proud of what the $10 million El Paso, Texas, company with 100 employees has accomplished, CEO Charles A. Sholtis is even prouder of what the award says about his workforce.

Charles Sholtis

Charles Sholtis

“The award speaks volumes about the caliber of our management team, the workforce we have, and what they’ve accomplished the last three years in streamlining processes, identifying areas for waste and cost reduction and finding ways to be more sustainable,” Sholtis said. “It says a lot about their ability to take on large projects as a team and make the company more profitable through operational excellence.”

Indeed, despite escalating raw material prices and the economic crash in late 2008, PMT achieved record revenue and earnings in fiscal years 2010 through 2013.

“You are only as good as your people. Without them, we wouldn’t be the success story we are,” said Sholtis. “These honors simply reinforce that the plastics industry is at the forefront of best practices in manufacturing.”

Here are just some of PMT’s achievements the last three years:

  • Savings of 1.8 million kilowatt hours (kWh) of energy per year, half of them from a grinder control system developed in-house that has reduced energy consumption on the company’s 40 plastics grinders by 95 percent or nearly 900,000 kWh annually.
  • Eighteen all-electric presses added since 2010—part of a $2.9 million investment in equipment and automation—have cut energy consumption by almost 400,000 kWh annually.
  • Plant-wide efficiency has improved to 96 percent, and on-time deliveries have risen to 98 percent.
  • Production scrap was reduced by more than 50 percent in the first year of a program to cut waste. The company also reduced its use of virgin resins by 380,000 pounds annually by blending in plastic regrind and using recycled resin.
  • A new mold storage system has saved an estimated 780 man-hours per year and sped up the mold setting process, and a new overhead crane system for mold handling has saved an estimated 250 man-hours annually.
  • A standalone mold service bench with a gantry crane on the production floor has reduced the time needed for routine cleanings, saving another 420 man-hours per year.

Frost & Sullivan’s Manufacturing Leadership Council in March honored 100 world-class manufacturing companies and individual leaders as winners of the 2014 Manufacturing Leadership Awards (ML Awards). According to the Council, recipients of the ML Awards have distinguished themselves by embracing breakthrough innovation and enabling their companies to anticipate and respond to customers with unmatched agility.

Friday, May 2nd, 2014

Strong Start for Future Leaders in Plastics

By Katie Masterson, SPI Program Manager, Industry Affairs, and FLiP Liaison

The Future Leaders in Plastics (FLiP) gained momentum this past week as a group of young leaders in plastics traveled to the SPI headquarters to  brainstorm, establish a mission for the group and further explore the benefits that SPI provides.

From left, Shreyas Naik ,Michael Stark, Brennan Georgianni, Jacob Groh, Jason Smith, Heather McKee, Gerry Benedicto, Beth Trenor, Lucas Shaffchick, Jennifer Zerda, Ricky Schultz, Shannon Stickler, Nic Nixon

Seeking representation across SPI’s membership for this brainstorm, seated members from the four Industry-sector Councils nominated a small group of young professionals under 40 years of age for this first meeting.

This group, accompanied by young leaders among SPI’s staff, kicked the meeting off on Thursday, April 24 with a tour of the Capitol and networking dinner. The next day, SPI President and CEO, William R. Carteaux highlighted the advantages of belonging to a trade association like SPI. Ted Fisher, Material Suppliers Council Chair, reinforced those benefits and provided a member perspective. Then the group launched into brainstorming and had several breakouts throughout the day where items were discussed and a plan was laid out for the direction of FLiP.

Some ideas that resulted from the brainstorm include:

  • Recognizing and bringing together young professionals at current SPI conferences and events
  • A networking reception at NPE next spring
  • Better leveraging and informing SPI benefits to  this age group
  • A mentor program

The group will be pursuing becoming an official committee of SPI’s, finalizing a mission statement and will be working with Katie Masterson and other SPI staff to draft a set of bylaws so they can begin to tackle some of these ideas and tasks that resulted from the meeting.

“We’re going to try to keep this positive forward momentum going as a result of this meeting,” said Masterson.

To be added to FLiP communication, please e-mail your contact information to: FLiP@plasticsindustry.org or contact Katie Masterson at (202) 974-5200.

(Pictured from left, Shreyas Naik, Michael Stark, Brennan Georgianni, Jacob Groh, Jason Smith, Heather McKee, Gerry Benedicto, Beth Trenor, Lucas Shaffchick, Jennifer Zerda, Ricky Schultz, Shannon Stickler, Nic Nixon and Annina Donaldson)

Thursday, May 1st, 2014

Chicago Plastic Bag Ban Leaves Consumers Holding the (paper) Bag

By Michael Salmon, Public Affairs Manager

Families in Chicago, plastics industry workers and consumers will be impacted after the City Council passed a partial plastic bag ban on April 30, forcing many city businesses to go back to the more expensive and heavier paper bags, which are not as environmentally friendly as once thought.

By banning plastic bags, consumers in Chicago and other cities where plastic bags have or will be banned in the future will be going back to heavier and bulkier paper bags or reusable bags. In addition to the job loss associated with a ban on plastic bags, SPI: The Plastics Industry Trade Association, is also concerned about replacing plastic with paper and reusable bags that are not consumer and environmentally friendly.

Here are some facts about paper, as reported by the American Progressive Bag Alliance:

Less material means less waste and fewer emissions.

  • Plastic bags generate 80% less waste than paper bags.
  • Plastic bags generate only 50% of the greenhouse gas (GHG) emissions of composted paper bags.
  • The production of plastic bags consumes less than 4% of the water needed to make paper bags.
  • A typical plastic bag weighs 4-5 grams and can hold up to 17 pounds—nearly 2,000 times its own weight.
  • Plastic grocery bags require 70% less energy to manufacture than paper bags, and produce half the amount of greenhouse gas emissions in the process.
  • Plastic bags take up 85 percent less space than paper bags in landfills.
  • During their life cycle, plastic bags require about one-third less energy to make than paper bags. Plastic grocery bags are an extremely resource-efficient multi-use plastic bag choice.
  • For every seven trucks needed to deliver paper bags, only one truck is needed for the same number of plastic bags, helping to save energy and reduce emissions.
  • It takes 91% less energy to recycle a pound of plastic than it does to recycle a pound of paper.
  • By using plastics in their packaging, product manufacturers save enough energy every year to power a city of 1 million homes for 3-1/2 years.

In addition to recycling, a recent national survey shows that over 90% of Americans reuse their plastic bags. About 65% of Americans reuse their bags for trash disposal. Other common uses include lunch bags and pet pick-up. In this regard, the reuse of a plastic shopping bag prevents a second bag from being purchased to fulfill these necessary functions.   These replacement bags are often thicker, bigger and intended to go to the landfill, meaning the unintended consequence is that more plastic is going into the landfill.

A look at other areas in the country where rules on plastic bags were implemented recently shows that bans and taxes don’t work.

  • A ban or tax would make no difference in litter reduction since plastic bags only make up a tiny fraction (less than 0.5 percent) of the U.S. municipal solid waste stream.
  • In October 2010 along North Carolina’s Outer Banks area, the North Carolina Solid Waste and Management Annual Report for FY 2010-2011 reported that a correlation between the law and the number of bags collected is not apparent.
  • According to a study from the National Center for Policy Analysis (NCPA), a ban on plastic bags can negatively impact retail sales in the ban area as well, shifting business to stores just outside the bag ban region. For example, in Los Angeles County, a survey taken one year after a plastic bag band was implemented revealed that the majority of stores surveyed in areas with a ban reported an overall average sales decline of nearly 6 percent while the majority of respondents surveyed in areas without a ban reported an overall average sales growth of 9 percent.

Monday, April 28th, 2014

Chicago City Officials Vote Against American Manufacturing, 30,000 Jobs in Jeopardy

By Lee Califf, Executive Director, American Progressive Bag Alliance

Plastics industry jobs in Illinois suffered a blow on April 24 when the Chicago City Council’s environmental committee unanimously passed a partial plastic bag ban in the city. The measure is scheduled to go before the full city council this week before it is official.

This is a concern of SPI: The Plastics Industry Trade Association, who cites the jobs created from the plastics industry as a major plus for America’s economic recovery. The plastic bag manufacturing and recycling sector in the United States employs 30,800 people in 349 communities across the country. That’s a significant number of people in the total 900,000 employed by the U.S. plastics industry.

The plastics industry impact in Chicago is a snapshot of the entire country. An in-depth data analysis of the plastics industry’s 2012 performance globally and in the U.S. is detailed in the newly released reports titled, “The Definition, Size and Impact of the U.S. Plastics Industry,” and “Global Business Trends, Partners, Hot Products.”

The report contained the following numbers:

  • $41.7 billion – the U.S. plastics industry’s payroll in 2012
  • 1.4 million – the number of jobs attributed to the plastics industry when suppliers are added
  • $456 billion – the total U.S. shipments attributed to the plastics industry when suppliers are added
  • 6.7 of every 1,000 non-farm jobs – in the U.S. are in the plastics industry
  • 15.8 of every 1,000 non-farm jobs – in Michigan are in the plastics industry
  • 15.4 of every 1,000 non-farm jobs – in Indiana are in the plastics industry
  • 13.3 of every 1,000 non-farm jobs – in Ohio are in the plastics industry
  • 1 – California (because it is the largest state) has the most plastics industry employees (74,000)
  • 50 – number of states where plastics industry employees and manufacturing activities are found

SPI’s economic reports are free of charge for members. For non-members, the cost of each report is $395. Both reports may be downloaded at http://www.plasticsindustry.org/store

Thursday, April 17th, 2014

Plastics Industry Leaders Clean Up the Beach While in Miami

By Michael Salmon, Public Affairs Manager

Bottles, aluminum cans, food wrappers, rubber tires and even a discarded grill were among items pulled from the Crandon Park beach in Miami during a beach clean up event hosted by the Ocean Conservancy and SPI: The Plastics Industry Trade Association.  The beach cleanup kicked off SPI’s National Board Meeting  held in a nearby Miami hotel.

SPI President and CEO William R. Carteaux and VP Patty Long didn’t hesitate to wade through knee-deep water for trash.

SPI President and CEO William R. Carteaux and VP Patty Long didn’t hesitate to wade through knee-deep water for trash.

As the bus of 40 to 45 SPI staff and association members pulled up to the beach, Miami-Dade County Park coordinator Alex Martinez noted that “with this number of people collecting the trash, we’ll actually get something done.”

SPI President and Chief Executive Officer William R. Carteaux slipped on a pair of rubber gloves and led the group, wading through the knee-deep water at times. After a couple of hours in the water and scouring the underbrush, SPI members and staff collected nearly three pickup trucks full of trash from a particular section of beach. At one point, association member Tad Mcguire and SPI staffer Michael Taylor pulled out a rusty tent supporter, claiming lightheartedly, “we’re the plastics industry, we’re not quitting.”

The following day, SPI presented a check to Miami-Dade Park Service official Bill Ahern for the Sea Turtle Conservation Program. Ahern and his wife Selina Mills originally met while on a sea turtle preservation event, and have put much effort into their preservation during the last 25 years.  The Florida Fish and Wildlife Conservation Commission recognizes Ahern’s efforts behind turtle preservation and issued a permit for further work in that area, conducting  turtle surveys, relocating nests, hatchling releases and other duties regarding marine turtles.

In addition to welcoming new members and association business at the meeting, SPI promoted its zero waste initiative, as well as their ongoing concern to mitigate the trash in the oceans and waterways. It is a feature in SPI’s new magazine, titled Marine Debris: A Deep Dive into the Science & Solutions.