Processing Outlook Report: Pulp & Paper
As could be expected with the changes in its business climate, this segment will not be among the most dynamic when it comes to purchasing in 2009. Consolidation, the use of less paper in the business world and overall economic conditions point to fewer investments in terms of equipment and newer technologies for this area of the processing community.When it comes to 2009 vs. 2008 purchasing projections:
In addressing energy costs:
- 63 percent indicated that they will spend less on safety programs and related products in 2009. Last year, more than 43 percent spent more than $40,000 in the category.
- Similarly, 87 percent of respondents said that they will not invest as much this year on automation equipment as they did in 2008. Last year, nearly 75 percent spent more than $100,000 in this category.
- Looking at overall capital equipment expenditures, 74 percent of respondents said that they spent more than $750,000 last year, but 63 percent said that they will spend less in 2009 due to economic conditions.
In working to reduce energy usage (respondents could check all initiatives that applied to their facility):
- 25 percent said that energy conservation initiatives have offset price hikes in keeping costs even.
- 24 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.
When asked which initiatives could be implemented in order to realize greater energy efficiency gains, while least impacting operational efforts:
- 69 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.
- 68 percent said that they have purchased new, more efficient equipment.
- 44 percent have implemented new, more efficient lighting products.
- 44 percent also added instrumentation that allows for better equipment monitoring and control in maximizing energy usage.
- 38 percent cited machinery overhauls and increasing preventative maintenance practices as a way to reduce the amount of energy needed to power their older equipment.
Questions were also asked regarding the respondents' familiarity and use of new feedstocks:
- 49 percent identified facility improvements.
- The remaining were split between improved usage patterns and individual equipment upgrades.
On the software front:
- The feedstocks that they are most familiar with, in order of precedence, are plant by-products, biomass and algae.
- Those feedstocks that are used in their plant, again in order of precedence, are biomass and plant by-products.
- The feedstock that respondents feel has the most promise moving forward is biomass.
- The biggest obstacle readers see with the integration of these non-fossil fuel sources is the lack of an industry infrastructure for handling these new feedstock types.
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 19 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.
- The most important software functionality cited was maintenance scheduling (47 percent), followed by inventory management (27 percent).
- The greatest realized gains from software investments were quality control (40 percent) and operational efficiencies (27 percent).
- Looking ahead, respondents' greatest needs are simulation capabilities and inventory management.