Simple Solutions That Work! Issue 16

AARON KA BOFF CO-AUTHORED BY AYAX RANGEL HA-International LLC ARTICLE TAKEAWAYS: • Who is your solutions partner during difficult times? • Importance of US alternative solutions Importance of Domestic Supply Chain Solutions Partnerships for Alternatives & Technologies B y the end of 2020 many hoped that 2021 would be a rebounding year for the metal casting industry. On the contrary the stark reality is that 2021 has proven to be one of the toughest years that the metal casting industry has ever experienced. The reality of rapid cost escalation for raw materials was quickly worsened by news of shortages and tight supply of key raw materials to make finished goods. If the cost escalations were not enough, when raw materials could be found and purchased (even at very high prices), ensuring a reliable supply chain was nearly impossible. Products that routinely carried a lead time of four weeks were suddenly being delayed 10 to 12 weeks, with no prior notice. The situation is particularly tight for materials being sea-freighted, which has triggered significant back logs in trucking and rail. There are many motives associated with this surge in prices and tight supply, from the disruptions in sea-freight in the Suez Channel, big backlogs in entry ports, deep freezes in the gulf region, to traversing many geopolitical situations. The situation has turned even more critical as the pent up demand for products and services has risen steadily throughout the year. This challenge was not just purview to tight supplies in petrochemicals and its by- products, but the difficult situation permeated to essentially most, if not all, the chemicals/ products necessary for the various stages of the casting process. From phenolic, shell, furan, and inorganic resins, to pretty much all types of catalysts and co- reactants for foundry binders, refractory coatings, shell sand, and even auxiliary products such as releases and glues are affected. The situation was so precarious that even the packaging used to package the products such as drums, totes, cardboard boxes, and wood pallets became a highly expensive and sought after commodity as its own package services also saw price increases and Issues with availability as well. Unfortunately, the situation continues to be precarious at best. Although the situation with some key chemicals have softened and become more available, there are new chemicals and products constantly being adding to the list. At this moment, and depending on the particular product or products that a foundry or a core shop uses in the casting process, the situation continues to range from tight to severe. WHEN THE WORD “SOLUTIONS” REALLY MATTERS! As all of the aforementioned challenges faced by foundry suppliers impacted the ability of foundries and core shops to produce castings on time, on budget, and with the consistency and quality required, our mindset to being a fast forward solutions oriented enterprise shifted into overdrive. This wasn’t a new mindset, but rather now had to implement all that we have prepared for in order to rapidly respond to these new and seemingly insurmountable challenges. The necessity to deliver our clients the necessary products in order to avoid unnecessary havoc has boosted our creativity to respond to today’s challenges. This rapid response provides cohesion 13 FLEXIBLE MANUFACTURING & ENGINEERING TRENDS Continued on next page