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Plastics Pipeline

 

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Kalamazoo River - Marshall, Michigan Oil Spill

On the evening of July 25th 2010 the largest oil spill in the history of the Midwest happened in Marshall Township, Michigan. The spill occurred from a cracked seam 5 feet in length in a 41 years old pipeline. This spill dumped over 800,000 gallons of crude oil into Talmadge Creek and then into the Kalamazoo River. The spill has affected many people’s lives in the community and will change the environment along the stretch of the river for many years to come.

Although it is Enbridge Energy’s responsibility to bear the cost of the cleanup, many local businesses including Team 1 Plastics and hundreds of residents donated items to assist with clean up of wildlife affected by the spill. Team 1 Plastics logistics manager,  Dave Sanford, has been following this from the first day of the spill and donated items and volunteered when ever possible. “I volunteered early on with Circle D Wildlife Refuge  in attempts to rescue animals affected by the spill,” said Sanford. “I’ve received my certificate from Emergency Management Institute on Hazardous Materials and completed a 4 hour safety awareness training for oil spill workers which is required before helping with any type of clean up.” He was also interviewed and featured in a feature by CNN on the oil spill.

Team 1 Plastics is happy to support the efforts of it’s team members like Dave Sanford and it reinforces our efforts to be a “Positive Community Member”. In particular, the statements We will support and encourage our team members’ volunteer activities. In addition, Team 1 will focus its financial contributions to the local community. Members of our families or communities will never hear: “It is not our problem;” instead, they will hear: “We will work together to make a positive difference.”

Do you have examples how companies or people are making a difference in their communities?

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Gasoline Engines Will Remain Dominant!

Just after posting our last blog below concerning the “The Dirty Truth About Plug-In Hybrids” I read an Automotive News report by Lindsay Chappell from the 2010 Management Briefing Seminars entitled “Gasoline Engines Will Remain Dominant, Execs Say”. It helped to reinforce my argument at the end of our blog on plug-in hybrids that it will be awhile before these gain any significant market share. The Automotive News article states that conventional gasoline engines will dominant the market for the next 20 years. Though electric vehicles, hybrids and other alternative powertrain technologies are getting a lot of exposure and buzz lately it is just cold hard reality that gasoline engines will dominant for the next few decades. Thus it will be critical for the automobile companies to improve the performance and mileage of gasoline engines. I agree with Barb Samardzich, Ford Motor Co.’s vice president of global powertrain engineering, that designing and improving gasoline engines “will be a great career going forward.” It might not be as glamorous as the new powertrain technologies but it is just as critical for us to improve these conventional gasoline engines so we can reduce our dependence on foreign oil sources.

Do you agree?

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The Dirty Truth About Plug-In Hybrids

I read an interesting article in the July 2010 Scientific American magazine written by Michael Moyer entitled “The Dirty Truth About Plug-In Hybrids”.  The focus was on a Department of Energy study that looked at the environmental consequences of electric vehicles would have if you consider the emissions of the power plants that supply their energy. The researchers split the continental U.S. into 13 regions and examined their mix of coal, natural gas, nuclear and renewable power sources within each region. They assumed nuclear and renewable energy sources where “always on” sources and they get used up quickly for routine tasks. Thus, the researchers concluded that power for the electric fleets would come primarily from coal and natural gas. If you live in a region that uses mostly natural gas electric vehicles will reduce carbon emissions. In regions powered by coal electric vehicles will lead to an increase in the amount of carbon dioxide released into the atmosphere.

I found it interesting that the study only considered the comparison of electric vehicles to hybrid vehicles. They did not include gasoline powered vehicles which are the predominate vehicle on U.S. roads and will continue to be for many years. I am assuming you would see a positive difference on carbon emissions from electric in comparison to gasoline vehicles.

They also only focused on carbon emissions which is only part of the story. If you consider the significant benefits from the reduction of our dependence on foreign oil sources than electric vehicles have additional benefits.

The main problem with the significant acceptance of electric vehicles in the near future will be their cost. Paying $41,000 for a Chevrolet Volt which is not a large vehicle in comparison to an equivalent size gasoline vehicle with high fuel efficiency translates to a payback in decades. It will take automobile companies finding more efficient battery systems and gaining cost advantages as volumes grow before the average consumer will be interested.

Do you plan on purchasing an electric vehicle?

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The New Normal

It was interesting to read a plastics industry survey completed by Plante & Moran titled “The New Normal” that was issued in March 2010. It’s focus was on four areas: sales growth and recovery, human capital, continued cost reductions, and credit management in a “new normal” business environment. There results showed that this recession has forced companies to carve out as much excess as possible to contain costs while remaining viable as on ongoing entity. The most successful plastics companies will retain the lessons of the recession and have an opportunity to enjoy greater profitability at reduced volumes.

I then read the article “The New Normal- Suppliers who survived are lean enough to thrive in an 11-million market” written by This e-mail address is being protected from spambots. You need JavaScript enabled to view it in the July 5th edition of Automotive News. The theme of this article was very similar to the Plante & Moran survey. The auto parts suppliers who emerged from the recession are able to be profitable at much lower volumes. Profits are possible at North American auto volumes of 11 to 12 million units annually.

Team 1 Plastics has experienced the same trend as outlined in both of these items. We had to make some very difficult decisions in the fall of 2008 and early 2009 to remain viable during the depths of the recession. Because we entered this recession in solid financial shape and we reacted quickly we were able to make a small profit in 2008 and 2009. In addition, we were able to manage through volume reductions as high as 60% with no additional credit and on our own cash flow. As we look to a “new normal” we can remain profitable and build on our financial strength at these reduced volumes.

Do you agree or disagree that we are in a “new normal” for business?

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The Power of Links!

Team 1 Plastics has been only blogging since April but we are beginning to see the power of links with other blogs. Our first connection was made with IDES – a search engine and informational resources for plastic materials. This is an excellent website and we use it on a regular basis for information on plastics. In fact, they offer free access to over 85,000 technical datasheets from almost 800 resin manufacturers.

They connected with us after one of our first blog posts and added our blog to their IDES blog directory. Since they added us to their blog directory they have begun #5 as a source of traffic to our website accounting for almost 6% of our traffic. These guests also stay longer with their average time on our site over 140% of the normal.

Because of this connection we have extended the reach of our blog and website to an audience that has an interest in plastics. Now the challenge is for us to provide valuable content and information so that we become a valuable resource within the plastic industry.

Please feel free to share your experiences with linking to other blogs.

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