The Products Finishing team records its 38th episode of On the Line, looking back at the year in surface finishing for 2023.
Photo Credit: Products Finishing
The end of 2023 marks the completion of the third full season of Products Finishing’s On the Line (OTL) column and corresponding OTL podcast. This installment marks our 38th episode of OTL (not counting several bonus episodes, video eps, etc.) and our last of 2023. To celebrate, PF is looking back at some of the stories from the past year that stood out as representative of some of the major topics in the surface finishing industry. From new and evolving manufacturing trends to workforce concerns, we explore some of the issues that were top of mind for industry experts and offer a glimpse of what may be on the horizon for 2024.
Trends in automotive
It would be an understatement to say that the automotive landscape has experienced a great amount of upheaval the past few years. As the market share of electric vehicles (EVs), hybrids and new energy vehicles (NEVs), such as hydrogen vehicles, grows, so too do some of the ways that finishers are involved in that segment of the automotive industry.
The role finishers play in the production of automobiles will continue to be an important one. While the number of engine and powertrain components that EVs need are fewer than those of ICE vehicles, finishers should be on the lookout for new opportunities not only in the manufacturing of new vehicle components, but also parts that will be used to build the infrastructure needed to support EVs. Put simply, the mix of parts that require coatings will evolve as a varying mix of vehicles are produced.
Here are some responses that OTL featured from industry experts discussing emerging automotive trends:
Photo Credit: MKS Atotech
With the requested high speed of product rollout and the race to release new EVs to the market, there are currently not many “standards” that are aligned on how to make these components. Traditional automobiles had decades of development and have settled into very defined processes and standards. As we know, in the past, the automotive market wasn’t known for high-paced, frequent changes. Reliability and quality requirements have always been very important to carefully track changes and create a level of high-volume repeatable results. Any finisher knows this with the current processes of PPAPs and current production requirements, as looked at from the OEMs, changes can be risky. We see the automakers racing to release the first generation of product to the market. Get a good, reliable product out quickly to satisfy the fast, early growth of the market. This may mean that the initial product may not be as optimized as possible. But in the second and third iterations of the product development, there will be a lot of work upfront to look to simplify designs, improve reliability, efficiency and performance, all while driving down costs.
One thing that cannot be ignored — automakers need to produce profitable products while satisfying the needs and desires of the customers. For EV adoption rates to continue to grow past this first phase, this will all have to happen. And current raw material price increases and demands for limited materials, as well as new processes in recycling and reuse, will be very important in possibly driving further opportunity for finishers. The ability to recycle and to create appropriate life-cycle products is also in line with the increasing understanding of the need to develop, produce, drive and recover vehicles and the corresponding parts sustainably. This is common sense, in society, end-customer, OEMs, tiers and the further industry, including the chemistry experts.
—Darrick Gula, North American regional OEM manager, MKS Atotech
Photo Credit: MKS Atotech
Another bottleneck we are seeing in this EV race is limited production capabilities at the applicator level. Since there are many new parts with varying geometries and performance requirements, there are not many applicators set up to plate or paint them. We have already seen this lead to some delays from OEMs on their delivery timeline for new models and likely will continue to be the case. It is apparent that the number of applicators that have the capacity and capability to produce EV parts, especially some of the large battery components, will need to increase in the coming years.
—Brandon Lloyd, global product manager, paint support technology, MKS Atotec
Regulations
Regulations are always a consideration for finishing operations. This year, the California Air Resources Board passed legislation toeffectively ban the use of hexavalent chromium for decorative plating operations in the state by 2027 and for functional uses of the chemistry by 2039. The ruling has numerous ripple effects throughout the finishing community, including increasing demand for hexavalent chromium alternatives and trivalent chromium solutions. PF has spoken with finishers on both sides — the platers most immediately affected by these new regulations as well as finishers taking steps to transition and suppliers of trivalent alternatives.
Photo Credit: Trion Coatings
The industry has been trying to make the transition for many years now. And some facilities certainly have, especially in California. There are successes that work for a lot of applications. And there are still technology limitations to the process, and then OEM approval spec approval limitations.
I think where [Trion] differs is that we have a foundationally different technology in the use of ionic liquids in our process. While we do use a trivalent chrome to produce plated chrome metal, the foundation of the process is not your typical aqueous chemistry where the existing technologies have been in that space for the past 30 years.
We are very empathetic with the platers — we don’t want to see anyone have to shut down or a facility go out of business. We want to work with [state regulatory] organizations to help them evaluate our technology in that particular state, and then of course, as the regulatory environment moves out of California into other states and potentially down the federal path. We feel like these are all regulatory tailwinds for a new technology. But the most important thing is that it has to perform. It has to meet the needs of the customer. It’s a slow process because there’s a lot of testing involved.
— Kyle Hankinson, Vice President Marketing & Sales, Trion Coatings
Workforce
Ask any finishing operation owner about their biggest challenge and they’ll likely cite staffing challenges. While skilled labor shortages and turnover have always been a problem in the manufacturing industries, COVID exacerbated the problem. Shifting attitudes about careers have also contributed to these shortages. All of these trends have led to a new workforce paradigm that includes increased implementation of automation solutions where possible.
Photo Credit: LAB Midwest
Finishing companies are now being forced to compete for talent. When 85% of manufacturers are saying, “We can’t find enough people,” it’s not enough to put an ad out there or go to a temp service and say, “Hey, give me some bodies.” We have to create a culture and an environment that attracts really good talent. And so, if you are the kind of person that has a degree of talent and has a level of proficiency that allows you to add value in a finishing operation (or in a powder coating operation or metal plating operation) — if you’re that type of person, the opportunities are endless. Especially now — in an environment that is advancing and becoming way more interesting, way more technical — in this day and age of disruption in the workforce, for the people that figure out how to play that game and play it well, there are going to be a ton of opportunities for those individuals.
— Matthew Kirchner, president, LAB Midwest
We’re seeing a change in the identity of the workforce. I think that is a huge factor in the demand for automation. With the younger generation, we’re not seeing a huge group of people who want to go into manual spraying or finishing. That identity of the workforce is making people kind of think outside the box. People are looking to automation as an answer for those challenges.
When you implement the use of robots in a manufacturing facility, you’re introducing new jobs, because we’re not really talking about total lights-out facilities. We still need someone to operate the robot. We still need someone to program the robot and perform maintenance. And, thanks to smartphones, PCs and smart TVs, people are a lot more comfortable around robots and computers than they were, say, 25 years ago.
— Hope Dollarhide, project engineer, FANUC
Looking ahead
As we look to 2024, these issues and others will shape the business of finishers. Products Finishing and On the Line will be there to help keep you in tune with the voices of the finishing community as the industry moves forward. If you have a topic you’d like to see featured in 2024 or would like to propose an interview for OTL, please email me at sfrancis@pfonline.com.
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