The IUV Technology Summit 2011: The Gentle Push Toward Automation and Green Power

The IUV Technology Summit 2011: The Gentle Push Toward Automation and Green Power

By Stephen Metzger, PhD., Senior Editorial Advisor, IUV Magazine

This year’s IUV Technology Summit, held in Phoenix, AZ, was fully in the tradition of the IUV format and focus for these annual conferences—highlighting industry trends in technology and early stage commercialization.

Presenters addressed the trend toward automation, and in particular, the integration of automated and worker-based discretionary control of machines in the workplace.  The ultimate objective of most new technology is, of course, increased productivity, and other speakers embraced this objective in presentations on power systems and vehicle choice.  Broader topics of corporate strategy, internal communications and the business environment rounded out the presentations.  The speakers, topics, and a synopsis of the presentations follow.

Mobile Platform Automation and Sensing Technology

Leading off the program, Phil Van Wormer, Executive Vice President for Sky-Trax Corporation spoke to one of the major themes of the conference, as exemplified in the title of his presentation, “Bridging the Divide Between Man and Automation” . The Sky-Trax indoor vehicle tracking system called, Optical RTLS™, is designed to not only track vehicles, pinpointing their location, but give interactive direction from a central command center.

Sky-Trax and Kollmorgen Corporation have teamed to develop a combined hardware/software system that achieves the purpose of directing warehouse vehicles to specific locations within the warehouse to either pick up goods from, or deliver goods to a given location. 

Benny Forsman, Kollmorgen Business Unit Manager for Pick-n-Go™ North America, described the software package developed by his company and married to the Sky-Trax overhead locator.  The software, called “Pick-n-Go®” operates interactively with the warehouse vehicle fleet so that it can be fully automated, or, alternatively, operate a mixed system of manned and unmanned vehicles.

Forsman emphasized that modernization of warehouse operations need not be an all or nothing investment.  Optimizing for mixed fleet operations, for example, may allow for a lower up front cost of the modernization investment, and also afford an accumulation of operational data which can be used to fine tune warehouse operations.

Forsman noted that presently drivers spend 80% of their time riding and 20% handling goods and packages.  The goal in advancing fully or mixed automated operations is to reverse these ratios, thus achieving a significant increase in productivity.

Stacy Kelly, National Sales and Marketing Manager OEM’S for Sick, Inc. continued the automation theme in describing Sick’s latest sensing devices for mobile platforms.  Her presentation,  “Sensing Technology for Industrial Vehicles:  Impact on Productivity and Safety”, demonstrated how Sick’s advanced laser sensor, mounted on mobile platforms, such as a forklift, could significantly aid in avoiding and preventing damage to vehicles, facility structures and merchandise—and preventing injury to personnel, resulting in greater productivity as well as a safer work environment. 

The Sick device creates “laser bumpers” that fully replace the heavier and less effective protective shields that characterize the traditional vehicle bumper.  The operating principle, according to Kelly, works in three steps: First, an infrared laser pulse is sent to a rotating mirror. Laser pulses are reflected into the operating environment every one-half degree over a wide area zone of interest, defined in any shape. The laser signal bounces back from objects or persons within the zone, or zones, of interest, and is detected by a sensor module.  The time of flight of the laser pulse is compared to the defined zones, and this, in turn, can trigger slow-downs or stops.

Other features of Sick sensing solutions allow detection of load, forklift, and mast height, mast tilt, whether or not a load is present, load weight, load ID/verification, vehicle speed, turning radius, and whether the driver is seated in a proper driving position.

 

Fuel Cells for Forklifts and Utility Vehicles

The focus on aspects of the forklift market continued with fuel cell power solutions for forklifts.  Gus Block, Director of Marketing, Nuvera Corporation, explained that his company is deeply involved in commercial applications of fuel cell technology.  The company’s core businesses are:  Advanced fuel cell stack technology, integrated fuel cell power plants, and hydrogen generation systems.

In his presentation, “5 Steps to Building a Hydrogen Fuel Cell Forklift Fleet”, Block first pointed out the advantages of fuel cells, compared with batteries, as used in forklifts.  First, he stated, you don’t need battery storage areas, which take up valuable space, plus a recharging cycle that takes up both time and space.  Most fuel cell operations in forklifts feature fast refueling, 1-2 minutes, drop-in replacement of batteries, and low cost hydrogen generation.

In building a hydrogen fuel cell forklift fleet the first step is a preliminary evaluation to determine the suitability of a fuel cell fleet.  The ideal candidate for fuel cell conversion would be a 2- or 3-shift operation, two or more battery charges per day, and a fleet of 10-12, or more lift trucks.  High labor and electricity costs are also a significant factor in evaluating feasibility.  Furthermore, the availability on-site of natural gas is an important advantage.  This would enable on-site production for hydrogen using a steam methane reformer, the most economical source of hydrogen for fleets of 10-80 units.  (Delivery of liquid hydrogen to the site is more economical for larger fleets.)

The second step in building a hydrogen-powered forklift fleet is a rigorous financial analysis, based on power monitoring of representative forklift units in operation at the site.  Variables such as wage rates, utility costs (electricity, natural gas, water), battery maintenance costs and cost of charging for existing battery-powered forklifts must be compared with similar costs of operation for powering by fuel cells.  Step 3 involves a detailed site survey, permitting, and installation. 

Deployment of equipment according to the site survey plan comprises Step 4 and includes securing necessary approval for operation from the AHJ (“authority having jurisdiction”).  Finally, Step 5 is routine operation, preceded by the necessary training of operating and maintenance personnel, as well as local first responders.

Block pointed out that significant financial incentives exist for the installation of fuel cells and hydrogen generation.  These include, with some limitations, a 30% investment tax credit for fuel cells systems and hydrogen refueling equipment. 

Developments in fuel cell deployment were further outlined by Robert Rose, Executive Director and Sr. Advisor to the Fuel Cell Council.  His presentation, “Fuel Cells and Hydrogen,  A Cost Competitive, Low-Carbon Alternative”, focused on the broader picture of the fuel cell market.

Rose stated that there were approximately 1,000 fuel cell-powered forklift units in operation in 20-25 facilities in the United States.  About 25,000 fuel cell units of all types were shipped in 2009.  Referencing a study by Frost & Sullivan, he sees the market at reaching $5.0 billion by 2016.

Jack Gust, Research and Development, Chief Engineer, The Toro Company, provided an overview of the “Emerging Technology in the Turf Utility Vehicle Market” and, in particular, his company’s experiments with fuel cell powered turf vehicles.  Gust noted some of the companies Toro has collaborated with in various demonstration projects:

• Metallic Power, manufacturer of a zinc-air fuel cell;
  
• Hydrogenics’ fuel cell, tested at Toro’s Palm Springs facility;
  
• Nuvera with that company’s series hybrid voltage management system;
  
• Datech’s small, on-board hydrogen reformer.
  

Gust noted that Toro was selected by ATK, an aerospace and defense company, to help design and build two fuel cell powered utility vehicles with advanced hydrogen storage technology. The project is part of a contract awarded to ATK by the Naval Surface Warfare Center Crane Division, which is collaborating with the Defense Logistics Agency (DLA) to coordinate hydrogen storage development efforts for the U.S. Department of Energy.

As partner in the project, Toro provides extensive operational experience in the area of fuel cell technologies having recently completed a three-year demonstration with the New York State Energy Research and Development Authority (NYSERDA). The NYSERDA project used three prototype hydrogen-powered Toro® Workman® utility vehicles at various sites, including Niagara Falls State Park, Bethpage State Park, and Rockefeller Plaza Government Center.

While the demonstration proved fuel cells are technically viable, Gust also noted, however, that hydrogen fuel cell power is still too expensive for the turf utility vehicle market.

Electric-Powered Utility Vehicles

Joe Wallington, Vice President of Sales and Marketing, Star Electric Vehicles emphasized that electric utility vehicles are a significant part of the company’s growing sales.  Presently the company has 200 dealers throughout the United States, with 82 dealers in the Southeast region of the U.S. and 36 in the Northeast region.

Wallington noted that the outlook for electric utility vehicles is very favorable.  The title of Wallington’s presentation, “Why Clean, Green Electric Vehicles Make Sense for Your Company”, is evidenced by major company and government agency initiatives, such a Frito Lay, General Electric, and  the U.S. Postal Service, as well as other government agencies, which are either purchasing or testing electric vehicles. 

The USPS with over 178,000 urban route vehicles is testing small electric vehicles at five testing centers.  (Part of this program is a pilot design effort by several electric vehicle companies to retrofit electric drive trains into USPS delivery vehicles, which are now gas-driven.)  Frito Lay has 50 electric trucks in a pilot program and a fleet of 25,000 trucks that could eventually be converted.  GE recently announced that it will soon order 15,000 electric vehicles (EVs) and plug-in hybrids and partner with its fleet customers to put an additional 10,000 on the road by 2015.

Wallington stated that Star was making a major effort to place their line of electric utility vehicles in material handling dealerships.  The company is also pressing its line of LSV-qualified people movers, from the six-passenger model to larger buses to resorts and municipalities.

Components and Sourcing Considerations

Douglas LeRoy of LORD Corporation introduced the topic of steer-by-wire technology and noted in the title of his presentation that “Steer-By-Wire Market is Driven by Industrial Vehicles”.  Steer-by-wire (S-b-W) technology implies no mechanical connection between the steering device and the wheels.  The connection is purely electronic, but provides tactile feedback.

As an alternative to hydraulic steering systems, S-b-W has a number of advantages, LeRoy explained.  First, hydraulic steering systems are only 60-70% efficient compared to electric S-b-W with 90% efficiency.  Hydraulic systems present environmental disposal issues and risk of leaks during operation.  They also tend to be noisy.  Repair can be costly as hydraulic systems have a highly complex parts list.  S-b-W is an answer to these problems.

S-b-W increases efficiency of battery-operated vehicles, thus insuring longer battery life and increasing machine productivity.  Further, LeRoy notes, driver ergonomics can be built into the system with LORD’s Tactile Feedback Device™ (TFD).  TFD prevents over and under steering and can regulate the angle of the wheels, adjusting for speed.
Adding the S-b-W component to a product requires addressing the system architecture, properly configuring the device, and commercializing through effective promotion.  S-b-W is a means of “up-featuring” the vehicle, leading to increased sales at better margins.  It pays, LeRoy says, to “select (end product) suppliers with industry experience.”

John Updike, Drive Train Engineering Manager for the Hilliard Corporation addressed the issue of foreign vs. domestic sourcing of components. In his presentation, “Developing New Technology, Meeting Cost Targets and Staying Ahead of Foreign Competition”, he noted that in its three core divisions, Motive Controls, Drive Trains, and Power Generation and Filtration, Hilliard products contain 95% domestic content.

Companies are faced with on-going decisions with regard to sourcing abroad or reinvesting in domestic operations to improve manufacturing methods and increase process capabilities.  Reinvesting means a capital outlay, additional overhead, but result in better control over manufacturing and quality control and can afford quicker implementation of design changes.

Outsourcing can benefit from lower labor costs and lower overall production costs, but also means increased transportation costs, possibly less quality control, and longer reaction time with respect to design changes and changes in the market environment.  It may also jeopardize a company’s intellectual property.  Updike noted that if your domestically sourced product is more expensive, you have to convince the customer that it is worth the additional outlay.

Strategic Considerations and Planning

New technology development proceeds in the context of corporate strategic vision and planning, nuanced communications in the corporate culture, and the economic environment.  Three of the conference presenters addressed these topics.

Todd Sauey, President and CEO of Columbia Par Car, presented a list of companies that had seen the future and reacted to it effectively and contrasted these firms to others that had not reacted well and had either gone out of business, needed a government rescue, or became significantly reduced in size.  His provocative presentation, entitled, “CSI—Death of the OEM”, gave as examples of companies missing the boat as RCA, Borders, and Timex; whereas companies which clearly understood where current trends were leading included Microsoft and Amazon, among others.

Sauey attributed some failures to simple corporate arrogance--an “invincibility persona”.  Examples of this were IBM (desktop market) and AT & T—and in contrast, Southwest Air and LG.  Companies displaying “corporate blinders with no awareness of global connectivity” included CLARK, the golf and tennis industry, and West Bend.  Companies that “got it” included Toyota and Sony.

At the heart of corporate failure, Sauey contends, is a failure to invest in the strategic driving force of the business and a lack of strategic vision as reflected in a company’s mission statement and its core values.  Successful firms were agile, responsive, and displayed an ability to listen (to what the market was telling them) and change.

Fundamental to realizing the attributes of successful companies, is the ability to communicate effectively. Jim Trufan, Sr. Project Manager, St. Onge Company, held forth the proposition, agreeing with a Time Magazine feature story that, “2010 was the year in which we stopped talking.”  According to Trufan, the deluge of communication technology has, in fact, depreciated the value of communication—regardless of how important, or even critical it may be.  To counter this trend of “Broken Communications”, as his talk was entitled, Trufan suggests 13 rules of effective e-mail communication.  Getting to the point, being concise, avoiding a “paper trail” of e-mails, and remembering who you are communicating with, are some of the major guidelines to be observed.

As a wrap-up of the conference, Stephen Metzger, economist, Senior Editorial Advisor to IUV Magazine, and a Managing Director of International Market Solutions, presented the outlook for the industrial utility and mobile equipment industry. The most important points made by Metzger related to the near-term end of discretionary fiscal and monetary policies aimed at stimulating the economy; and the policy debate over entitlements and government spending in general—highlighted by growing concern over the size of the national debt and the impact this would have on the value of the dollar and interest rates.

Metzger was cautiously optimistic for the short term given positive trends in business investment, which is a major factor in predicting the market for industrial/utility vehicles.  “Going forward,” said Metzger, “there is likely to be a mix of good news and not such good news as we enter and go through the second half of 2011.  The prospect of higher interest rates and slow, albeit positive growth, in the second half may well extend into 2012 and even beyond.”  (Access to my forecast will be posted on the online version of IUV Magazine.)

About the Author:


Stephen Metzger, PhD, is Managing Director of International Market Solutions, LLC, an internationally-based market research firm. He is also Principal of International Competitive Assessments, the market research arm of IMS. ICA has produced four major studies of the small, task-oriented vehicle market since 2000.

Mr. Metzger is Senior Editorial Advisor for Industrial/Utility Vehicle Magazine.