Spring 2002 Issue
Improving Energy Use in Metal Casting Foundries
S.C. Metal Casters to Benefit from Grant Through Savings of $1.2 Million
The metal casting industry is continuing its rebound after sharp declines in the 1980s, brought on by decreased demand, increased use of plastics and composites, and increased overseas competition. In this time of resurgence, metal casting manufacturers - who are primarily located in the Midwest and Southeast - are increasingly reliant on energy to fuel their processes. In fact, metal casting is among the most energy-intensive industries in the country. According to the U.S. Department of Energy (DOE), 15% to 25% of production costs are related to the use of energy.
In 1995, leaders from the U.S. metal casting industry teamed up with the DOE's Office of Industrial Technologies to participate in a special program called Industries of the Future. The program outlines nine industries that use large amounts of heat and energy in their manufacturing processes, one of which is metal casting. [See www.oit.doe.gov/industries.shtml for more information]. Goals of the program include a 25% improvement in energy efficiency and a 30% reduction in emissions for all nine industries by 2010.
Improvements in South Carolina
South Carolina's metal casting industry reflects the overall U.S. industry in that most are small businesses, each employing 100 or fewer workers. Many small employers do not have access to the latest technological advancements that may help them cut energy consumption and waste. Last year's dramatic increase in natural gas prices and recent changes in energy deregulation also contribute to special energy needs for this industry segment. Recently, Industries of the Future awarded the SCMEP a $178,400 grant to assist South Carolina's metal casting manufacturers with plant productivity improvements, profitability enhancement, and decreased energy consumption and waste. Up to 50 of the state's metal casting manufacturers - a subset of metalworking and five percent of the state's total manufacturing base - will have the opportunity to take advantage of the funds.
The SCMEP has already begun the process of working with metal casting manufacturers in various parts of South Carolina to provide energy assessments and Competitiveness Reviews. Funds from the grant are being used exclusively to help the state's metal casting manufacturers with energy improvements over the next 18 months. The program is an additional component of SCMEP's overall metalworking initiative created to help South Carolina's metalworking manufacturers become and stay competitive in a global economy.
"With the automotive sector continuing to grow in South Carolina, it is imperative that major suppliers in the automotive supply chain, such as metal casting companies, learn to implement process improvements and reduce energy costs," says John Irion, president of the SCMEP. "SCMEP plans to make available our experienced manufacturing specialists to help metal casting manufacturers of all sizes assess their facilities and implement these kinds of improvements. The end goals are reduced energy costs, reduced waste, and an increased bottom line."
In addition to direct services to manufacturers, SCMEP will create a council of small metal casting manufacturers who will work with other economic development partners, trade associations, universities, and government organizations to deliver industry-wide improvement strategies.
SCMEP is currently looking for metal casting manufacturers statewide to take part in this project. For more information about participation, please contact David Cooper, SCMEP program manager, at 864-288-5687 ext. 215 or dfcooper@scmep.org.
