This is the first in a series of interviews with the heads of trade
associations responsible for advancing the cause of members serving the
interests of material handling professionals. This month we spotlight
Material Handling Industry of America and its CEO, John Nofsinger.
MHM: Material handling’s image is evolving from mechanical devices in
buildings to a more strategic role in logistics processes and functions.
Even though consumers may not have a solid concept of material handling, it
touches everybody’s life. It’s part of the infrastructure supporting every
business operation. How is the global economy shaping the future state of
material handling and MHIA?
Nofsinger: There’s been a fair amount of consolidation in the industry as
well as globalization of manufacturers and end users. With outsourcing, the
rules have changed dramatically. As an association, one of our challenges
is that we specialize. A big piece of this is that our programming as an
industry has to be constantly renewed to be relevant to this global
consolidated corporate structure. The challenge on this industry is to
uniquely apply proven technology. We must be sure as an association that
we’re inviting everybody we possibly can to the table regardless of where
they’re
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domiciled, as long as they’re doing material handling logistics in
this country.
MHM: What are the stakes involved for companies investing in material
handling technology these days?
Nofsinger: The major investments companies are making in the solutions of
this industry are fairly high risk for them. They can’t afford to make huge
mistakes. At minimum there isn’t enough time to recover and at maximum it
will result in a debt load that’s unmanageable. A big piece of what we’re
trying to do is provide more opportunities for people to understand the
proper application and to give them chances to shorten the time to solution
cycle. That’s why we continue to view the industrial exhibition as one of
the few high-quality opportunities for customers and vendors to shake hands
and look each other in the eye. It’s a way to talk to people who have done
this before and get a level of confidence that these solutions are
affordable and won’t be a career-ending decision for them.
MHM: MHIA by its very name serves the American market. Do you see the day
when your charter will expand to a more global perspective?
Nofsinger: One of our groups will be meeting with a sister group from
Europe to exchange test type data that each region has been collecting.
Some of this effort is designed to continue a process toward the evolution
of a consensus between Europe and America on racking design. Now that the
European community encompasses countries on the Mediterranean and soon some
central and eastern European countries, the community in Brussels is
putting safety directives in place to say you need more definitive design
guides for earthquake and seismic behavior. We’ve lived that for many years
in this part of the world, so our standards are a little further developed.
On the other hand, engineers sometimes have different approaches to the
design of things. We’re collaborating to do the best we can between the
regions to make these products as safe as they ought to be. The outcome is
likely to be a set of global standards.
MHM: Does that mean we’ll eventually have an international material
handling organization?
Nofsinger: Because we have formal liaison relationships today with the
European and Japanese associations, we exchange visits, attend each other’s
meetings and collaborate on technical issues. I can see a federation but I
don’t know if I can see anything in the next 10 years that would be a
single association. That’s because there are still national associations in
these countries that are fairly provincial, just as some of our
associations can be.
MHM: What’s happening at the product group level of MHIA?
Nofsinger: Our groups can be divided into several types. A handful of them
have a primary interest in standards and technical activity. Their products
have to be permitted in order for them to be built, and local authorities
may have some say in what gets done. For them it’s commercially critical
that they be involved at the inner circles of the development of these
consensus approaches and in our case through ANSI [the American National
Standards Institute] because it becomes the only way you can practically
apply products in this part of the world.
When you get into systems activities, involving collections of things,
those groups realize the best thing they can do is build awareness through
case studies or regional seminars. They want to take some of the risk out
of play.
Statistical information is always important, and there’s a lot of user
safety activity. OSHA has struggled with the science behind its lifting
guidelines, but everyone accepts that the underlying reason for going there
is valid, to come up with ways to mitigate injuries to workers. An
important objective is to collaborate with OSHA on behalf of large groups
of the membership to better position our products.
MHM: MHIA has also been more closely involved with transportation issues
affecting the supply chain.
Nofsinger: In the late ’80s we started to step away from the traditional
way of looking at material handling and became a little more inclusive of
technologies we didn’t traditionally think of, including information
technologies that allow concurrence. But even in that era, our work was
pretty much inside of buildings. Six years ago we did a rendering for the
cover of our annual report. The roof was lifted off a building and we see
conveying, racks and trucks, but as you look outside the building there are
trucks backing up to the building and ships on the sea and airplanes
flying. The handoffs to these modes are not clear-cut. The issues are much
more gray. In the next report we showed our products bridging the world as
part of its infrastructure of flow.
MHM: That is really making itself known as the military gets more
visibility in the media.
Nofsinger: The traditional way was you threw a bunch of troops on a ship
and you took them across to a battle zone. Sometime between when they left
and when they arrived, battleground conditions changed. Ideally what they
would like to be able to do would be to kit every soldier for the exact
mission he’ll face. But even today it isn’t that simple. The way one
officer explained it to me, if you’re on one of these ships and you get
there and there’s no one on the beach but friendlies, then you should
probably leave through the door on the ship that’s near the flower shop and
give them all flowers. If they’re not friendlies, you want to leave via the
door that’s near the hand grenade department because you might need those.
That’s not the most efficient way to enter these conditions. We need
systems that are dynamic and changing. We’re in a unique position at this
moment in time where material handling is more widely respected at the most
senior levels of industry. We have a set of conditions in logistics and
flow that demand we apply the products of this industry.
MHM: Is that proving itself in terms of membership activity?
Nofsinger: We have more companies today involved at the work group or
product section level than we did in 2000. There’s been a lot of gray
matter applied in the last couple years to ready the industry for the next
chapter. Competitive pressures will mount and expectations will be greater
than ever but I don’t think the industry has ever been better prepared. MHM
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