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New tax laws went into effect at the beginning of this year that change the rules regarding how owners of warehouses, distribution centers and other similar assets can deduct the cost of certain improvements to their property.

The Internal Revenue  Service is using new definitions when it comes to facility improvements. For example, an improvement could qualify as a “betterment” to the property, such as installing a new machine that does the same job better than the old one; a “restoration” of the asset, such as replacing a warehouse roof damaged in a hailstorm; or an “adaptation” to the facility, an example of which would be partitioning an existing warehouse to create space for a temperature-controlled section.

The new tax rules mean owners can no longer fully deduct those repair costs in the tax year that the work was done. Instead, they now must write off the expenses over the asset’s useful life, which can range from seven to 39 years, depending on the type of asset.

Dean Sonderegger, senior product management executive for the software segment of Bloomberg BNA — a unit of Bloomberg L.P. that provides legal, tax, regulatory, and business information — said stretching out the deductions over a multi-year period represents less favorable tax treatment than “expensing” the costs in the year the work was performed.

“The changes could reduce the value of depreciation-related deductions by between 5 and 10 percent,” Sonderegger told DC Velocity.

The rules may also spark renewed interest in leasing certain assets rather than owning them.

Of course, there will always be exemptions. For example, the changes will not apply to work performed as routine maintenance as long as the asset owner provides a documented maintenance schedule. And the rules will effectively exempt assets with a line-item value of $5,000 or less.

Asset owners also will be allowed to deduct the original value of the component being replaced, minus the number of years of the asset’s projected useful life that it was in operation, according to Sonderegger. That means an asset owner could write off $25,000 if the asset being replaced originally cost $50,000 and was removed from service five years into its estimated 10-year useful life.

 

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If you are interested in milling and materials handling for the chemical, food, pharmaceutical and mineral industries, you might want to consider attending a free demonstration being conducted next month by Coperion K-Tron Howokawa Powder Micron Systems.

The complimentary in-house demonstration will be offered on Oct. 14 and again on Oct. 15 at the company’s headquarters in Summit, New Jersey.

Coperion K-Tron will present on key topics and trends related to ingredient feeding and material handling, offing a technical objective overview on methods of both improving current operations and utilizing new process technologies in feeding and sanitary pneumatic conveying of powder and bulk materials. Seminar will allow guests the opportunity to participate in live milling demonstrations and have hands-on access to ancillary equipment including Coperion K-Tron’s new MT12/MT16 micro-ingredient feeder that includes several new design upgrades to increase accuracy and performance.

The new design allows for extended screw profiles, with a smaller overall footprint, allowing for closer discharge dimensions, ideal for multi-ingredient cluster arrangements. The MT12/MT16 micro-ingredient feeder is ideal for applications feeding high-value/high-cost additives in any food, pharmaceutical, plastics, and chemical process that require second to second performance with a high degree of accuracy. Typical applications include feeding jet mills, continuous extrusion processes, and any application where expensive micro ingredients require accurate feeding.

The seminar is suitable for process engineers and equipment operators interested in air classifying mills, ingredient feeders, granulators, hammer mills, sanitary pneumatic conveying, pin mills, or dust collection systems. The seminar is complimentary and offers interactive equipment demonstrations and includes lunch.

While the event is free, registration is required. Visit the company’s website to register.

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Here’s a special sneak preview of some of the stories you will find this week on the Bahrns blog:

  • Stricter federal regulations and a shortage of truck drivers are just two factors that are contributing to a near-record number of trucking companies going out of business. We’ll explain what’s happening and why …
  • Take a guess where the world’s biggest and busiest cargo port is located. Here’s a clue: It’s in Asia. We’ll reveal the answer, plus where US ports rank on the list.
  • Tougher emissions standards from the European Union are causing companies to take a harder look at the type of equipment they use. We’ll show you one company that was able to reduce the emissions of its excavator by an astonishing 90%.

Plus, new tax laws for warehouse improvements, a new design that makes storage tanks last longer, and the “Ultimate Rigging Resource”. All this and much, much more can be found this week on the Bahrns blog … so stay tuned!

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Port of Shanghai

Photo courtesy of Wikimedia Commons and in the public domain

For the fourth year in a row, Shanghai has been ranked as the world’s largest container port by the Journal of Commerce.

The organization, which ranks all of the world’s ports according to the volume of  containers that pass through them, revealed that when it comes to the size and scope of port traffic, Asia is the world leader, holding 9 of the 10 top port rankings and filling 26 of the top 50 slots for the past year, according to a JOC news release.

In 2013, Shanghai handled 33.62 million Twenty-Foot Equivalent Unit (TEU) cargo containers. That’s up 3.3% from 2012, when it handled 32.53 million TEUs. The Shanghai port is supported by three busy manufacturing areas — Wusongkou, Waigaoqiao and the deep-water Yanghan. It also is the gateway port for the Yangtze River Delta.

Close behind Shanghai is the Port of Singapore, which handled 32.6 million TEUs in 2013, an increase of 2.9% from 2012. Singapore is the world’s busiest trans-shipment hub.

China Captures Third and Fourth Spots

Two Chinese ports — Shenzhen and Hong Kong — captured third and fourth place, respectively. Shenzhen is adjacent to Hong Kong and south of the Pearl River Delta in China’s Guangdong province, an important manufacturing area. Wal-Mart’s Asian headquarters and global procurement center is located in Shenzhens’ special economic zone.

Hong Kong was the world’s biggest port from 1999 until 2004. Its volume was actually down 3.3% in 2013 due to a 40-day dockworker strike at five of its terminals. The strike was resolved in early 2013.

Rounding out the top ten of the world’s largest ports were Busan (South Korea), Ningbo-Zhoushan (China), Quingdao (China), Guangzhou Harbor (China), Jebel Ali (Dubai) and Tianjin (China).

Rotterdam Europe’s Largest Port

Europe’s largest and busiest port was in Rotterdam, the Netherlands, which came in 11th in the global rankings. Its traffic volume also decreased during 2013 — from 11.87 million TEUs in 2012 to 11.62 million in 2013, or a drop of 2.1% — due to the results of a massive reconstruction and expansion project.

The only US port to make the top 20 was the Port of Los Angeles, which handled 7.87 million TEUs in 2013, down 2.6% from 8.08 million TEUs the previous year. But when combined with the nearby Port of Long Beach, the two had a combined volume of  14.6 million TEUs, which would rank it ninth globally with a year-over-year growth rate of 3.4%.

Four US ports were ranked in the top 50, handling a combined 23.1 million TEUs, or the equivalent of what’s handled annually by the Shenzhen port. In addition to Los Angeles and Long Beach, the Port of New York and New Jersey, with 5.5 million TEUs, and ports in Georgia, with 3 million TEUs, were also in the top 50. Just missing the cut were Virginia, Oakland and Houston.

Asia Captures Largest Market Share

Asian ports showed the largest growth in 2013, with a 4.2% year-over-year growth, outpacing the 3.2% growth among the top 50 overall. US ports showed a 1.7% growth rate, while the 10 European ports in the top 50 had only a 1.3% growth rate. The six ports in the Middle East and Africa showed only about a 1% growth rate.

Asia led regional market share with 70.5% of the 421.3 million TEUs of cargo containers the top 50 ports handled in 2013. European ports held 13.5% market share, while the Americas held 8.5% and the Middle East and Africa held a 7.5% market share.

 

 

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Maersk shipping containers

Photo courtesy Wikimedia Commons (In the public domain)

The amount of cargo moving through the Ports of Los Angeles and Long Beach was down slightly in July as retailers braced for a possible strike by dockworkers this fall.

The ports were bustling in May and June as retailers rushed to shore up their inventories in preparation for back-to-school shopping. But by July, the amount of cargo moving through the two ports leveled off due to uncertainty about contract negotiations between West Coast port operators and the International Longshoreman’s and Warehouse Union.

The Port of Los Angeles posted a year-over-year increase of 0.25% in total containerized imports and exports in July. Imports declined by 1.98% and exports increased by 3.62%.

At the Port of Long Beach, total container volume increased 3.7%, with imports up 0.9% and exports down 6.2% compared to July 2013, according to statistics released by the ports.

Contract Already Expired

The deadline for a new contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association, which represents port owners, expired June 30. But both sides have publicly declared that they are committed to avoiding the type of cargo disruptions that occurred in 2002, when a strike shut down West Coast ports for 10 days, creating a backlog that took several months to be cleared. That disruption cost the US economy an estimated $15 billion in reported losses.

In June, the two sides issued a joint statement after the old contract expired: “While there will be no contract extension, cargo will keep moving, and normal operations will continue at all ports until an agreement can be reached between the Pacific Maritime Association (PMA) and ILWU.”

Ben Hackett — founder of Hackett Associates and author of Port Tracker, which is published in conjunction with the National Retail Federation – said that even though imports are higher due to the labor uncertainty, trade volumes remain solid due to a strengthening US economy.

“The impact of this is that the Peak Season will be muted, suggesting that the monthly growth rates will be les than the seasonal norm,” Hackett wrote. “Due to the jump in July imports, our West Coast projections were well up but not strong enough as we had anticipated more of a shift to the all-water route. Clearly, economic fundamentals are no match for cautionary measures to safeguard against labor relations.”

Important Route for Imports, Exports

West Coast ports handle more than two-thirds of all US retail container cargo and most of the cargo arriving from Asia. While an expansion of the Panama Canal is expected to open up East Coast ports to the Panamax super-freighter cargo ships that commonly are used for Asian imports, the deepening and widening of the canal won’t be finished until later this year.

The ILWU, which represents 14,000 port workers at 29 ports from San Diego to Seattle, has threatened to go on strike if a new agreement can’t be reached. The last work stoppage, which occurred in 2002, lasted 10 days and caused an estimated $15 billion in reported losses and created a backlog of cargo that took several months to be cleared.

 

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Starting next week, the company known as Frommelt Safety Products will be known officially as Rite-Hite Machine Guarding. Company officials said the name change is part of an overall initiative to further strengthen and focus the Rite-Hite brand, which owns the Frommelt Safety Products line.

While the name will change, the product line will remain the same. Rite-Hite Machine Guarding will continue to focus on manufacturing machine guarding products such as automated barrier doors, industrial fencing and retractable curtains for robotic and automated welding processes in metal manufacturing, automotive, material handling, paper/packagin, and plastics, among other industries.

The brand names also will remain the same. These include Defender, Flashfold, Vertiguard, SlideAir, Rollshield, Rollshield Side-to-Side, X-Ten and Roboguard Fence.

Eric Esson, Rite-Hite’s Machine Guard’s national sales and marketing manager, said that while the name may be different, the quality will be the same.

“This name change clarifies who we are, what we offer, and emphasizes Rite-Hite’s commitment to improving industrial safety though quality and innovation,” Esson said in a company news release. “We want our customers to know that the machine guarding products are and always have been a part of the Rite-Hite family of innovative, high-quality products.”

Rite Hite makes, sells and services loading dock equipment, industrial doors, safety barriers, HVLS fans, industrial curtain walls and other products designed to improve safety, security, productivity, energy consumption and environmental control. It is headquartered in Milwaukee, Wisconsin.

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The North American robotics industry showed its largest growth ever during the first half of this year, according to statistics released recently by the Robotic Industries Association.

A record 14,135 robots, worth $788 million, were ordered from North American robotics firms from January until June. That’s an increase of 30% in units and 16% in revenues compared to the same period the previous year.

Since 2010, the North American robotics market has shown an average annual growth rate of 26%. This has happened at the same time that the US unemployment rate has been dropping.

Jeff Burnstein, the group’s president, said the two simultaneous occurrences are not coincidental.

“In 2010, after one of the worst recessions in our nation’s history, unemployment in the US was nearing 10%,” Burnstein said in a news release. “Since then, amidst record years for robot sales, unemployment has steadily fallen toward pre-recessionary levels. The unemployment rate reached 6.1% in June of this year, the lowest it has been since September of 2008.”

Burnstein said manufacturing jobs are returning to the US precisely because of the investment industries are making in automation like robots.

“While we often hear that robots are job killers, just the opposite is true,” he said. “Robots save and create jobs.”

The automotive industry had the biggest impact on robot sales. During Q2 2014, orders for robots in this sector were up 97% compared to the same period in 2013. Non-automotive industries such as semiconductors, life sciences and food & consumer goods also showed 22%  growth in robotics while automotive original equipment manufacturers (OEM) and component industries grew by 36% in the first half of this year.

 

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Enterprise Resource Planning

Courtesy David Herrera via Wikimedia Commons

The conveyor belts and rollers that make production lines and manufacturing facilities run efficiently also present a potential to hazard to workers.

Even slow-moving conveyors or rollers can catch clothing, fingers and even limbs inside their moving parts, often resulting in crushing or mangling injuries.

But a UK engineering firm has designed a new roller guard system that helps protect workers from injury by creating a barrier between moving machinery and facility personnel.

It’s called the Martin Return Roller Guard and it can be installed on practically any piece of equipment that features potentially dangerous conveyors or rollers. The assembly — which was developed by Martin Engineering, of Nottingham, England –keeps workers from being drawn into a moving return roller, according to a company news release.

Separates Workers from Moving Parts

It has a solid upper section that delivers pinch point protection, while a slotted lower area allows workers to visually inspect the equipment while still preventing contact with the roller.

Brackets mount the guard to either the side or bottom of a stringer. The device features quick-release pins that facilitate easy access for maintenance or servicing and its side and bottom panels swing open as well. It also has removable end plates to provide access to roller bearings.

The guard is designed to fit all major roll manufacturer sizes, including CEMA C, D & E. It is ideal for any return roller that is less than seven feet off the ground or is in a location where the roller is within easy reach of workers.

The Martin Return Roller Basket is another product that increases workers’ safety. It is designed to prevent a return roller from falling to the ground in the event of mechanical failure. It includes a combination of guards and baskets to provide a systematic approach for protecting workers from falling conveyors.

Like the return roller guard, the basket also has slotted panels to allow for easy inspection. It also has brackets that are designed to fit all major roll manufacturers’ sizes so that the basket can be mounted directly to either the bottom or side of the stringer. Both the roller basket and guard are available in painted steel and two grades of stainless steel.

Provides Easy Access for Maintenance and  Service

Another product — the Martin Conveyor Guard — feature a heavy mesh that protects workers from moving components of conveyor belts. Its rugged modular design is supported by a supplied angle iron structure so that that the device does not need to be attached to the conveyor at all. The conveyor guard is attached using wide clamps that allow panels to be removed and re-installed quickly and simply.

In addition to safety materials for conveyors, belts and other industrial equipment, Martin Engineering also offers safety training programs for workers. Training is available to suit individuals with varied levels of experience and responsibility, covering everybody from the first-day employee to the plant’s senior engineer.

“Attendees attain a better understanding of conveyor safety and performance, helping to justify upgrade investments and increase profitability,” the news release stated.

 

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We all think accidents will be something that happens to someone else. We all know that doesn’t have to be the case. Any new driver can have an accident. So can a veteran driver who is careless, who doesn’t pay attention to obstacles or is simply going too fast. Common sense forklift operation ought to keep any operator out of trouble, but it takes proper training to demonstrate how to do things right.

How easy is it to dump your load by accident?

All it takes is hitting the brakes a bit too soon-and especially while going too fast. This can happen even if your load is built right on the pallet. Dumping a load forward off the pallet is quite easy to do. It is much harder to explain yourself to your superiors, and it takes a lot of work to clean it up. A short YouTube video shows how easily it can happen.

How likely is it for a forklift to end up on two wheels?

Going up on two wheels should be scary enough to keep you from making the same mistake again, but if the truck topples, you may not get a second chance. A video shows a lift on two wheels and how easily it can happen. The lift truck doesn’t have to leave the ground to hurt you.

Your employer should want to take the time to train you

A forklift operator explains in a You Tube video how he crashed his truck and broke his back. The worker was just 16 years old and was hired on the spot to run a forklift. He followed the examples of other operators and imitated their practices-obviously these operators who were his indirect mentors hadn’t been trained properly. Guess what happened? The operator is lucky he didn’t die.

Some consider videos of near-misses-accidents where no one got hurt-to be funny. Yet, in every one of these scenarios, someone could have been hurt or killed, and there are documented cases where the worst has happened.

Watch these videos to learn how not to operate a forklift

If you are a material handler, don’t ever assume that these things can’t happen to you.

If you are the owner or operator of a warehouse where forklifts are operated, don’t assume that your employees won’t engage in these hi-jinks. Even if employees aren’t engaged in horseplay, they can still have massive accidents. All it takes is driving too fast turning to quickly or not checking a mirror just one time.

Watch the videos now and share them with your material handlers-and keep these scenarios on the video screen-and off of your warehouse floor. Tell operators to take their time when handling your material. Give them enough time to do it, and take the time to train them.

Sources:

You Tube: Top Ten Forklift Accidents

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Safety trainers may differ on how to effectively engage the operators and keep their attention during classroom training. Comic relief in safety training can not only lighten the mood, but also give the operators some useful perspective.

Some video clips from various movies show some great examples of how not to use equipment such as forklifts and other items in the warehouse. The videos do show some plausible examples of what can happen when equipment is misused. They also remind material handlers of the risks that can come when equipment is not properly secured in warehouses where customers are present.

The lighter side of warehouse and forklift hijinks

On the lighter side, the different warehouse equipment gets a chance to have the light of glory shine on it. Take for example, the un-glamorous pallet-a platform for dancing-though we won’t recommend it in real life, the video is one to be enjoyed. Shakespeare said that “all the world’s a stage”; and the warehouse is a big part of everyone’s world in one way or another.

Furthermore, everyone would love to see a video that shows kids swiping a forklift from the unsuspecting operator at the local price club warehouse-and see them raise a little Cain when they drive it down the aisles against the unrelenting pleading of their parents to stop-we just hope we never see it in real life.

Sources:

Premier Handling Solutions

http://www.premierhandling.com/latest-news/blink-its-gone-material-handling-equipment-movies-and-weekend-824-movie-preview/

http://www.premierhandling.com/latest-news/forlklift-scene-in-yours-mine-and-ours/

 

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