Capital Argument
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A trademark of Paperitalo Publications
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Four kinds of Money, Part 3
The kind of money we are going to talk about this month is sometimes derisively called "corporate welfare." Whether you think it is moral or ethical is a matter we will set aside for the moment. What I can tell you is your competition is using this source of funding whether you are or not.
What is it? It can be tax abatements, grants, government backed low interest loans, subsidies, training cost assistance, you name it. These are often employed in greenfield projects in order to entice a company to move to a certain location. They have often been used in major rebuilds with a threat that goes something like this, "If we don't get some help in the form of a tax abatement on this project, it will be given to our mill in ____ and this mill may shut down."
As I said, you may like them, hate them or even find them completely abhorrent, but be advised your competitors are using these techniques to shake down their local and state government in order to make themselves more competitive.
So a capital budget cannot be compared to a capital budget across the country until you understand all the off budget goodies that are coming along with it.
This column is directed toward engineers and engineering managers, so the concepts we are describing this month may be foreign concepts to you. However, somewhere up the food chain, there should be some specialists in the executive ranks that can shed some light and expertise on what can be done to make sure your project is as competitive as possible. Your project budgeting process is not complete until you have explored and consider the benefits that may be available to you through government agencies.
What is your opinion? Drop me a line at
jthompson@taii.com. I would like to hear from you.
Engineering Manager of the Year, call for nominations
We are looking for an individual who has done an extraordinary project, one that almost defies belief. Its extraordinary features can be schedule, technology, cost or all three.
We have often gotten nominees that go something like this, "I nominate Joe because he has done a great job of running our engineering department for the last fifteen years." Quite frankly, we are not interested in such nominees.
However, if you know someone who has led a very exceptional project in the recent past (the last two or three years), we want to know about it. We want to honor them and hold them up as an example for Engineering Managers in every pulp and paper mill around the world.
Just send your nomination, with as much details as you can provide, to jthompson@taii.com. We will seriously consider it.
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Current Patent Activity is available here.
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Capital Arguments Engineering Manager of the Year
Hall of Fame
Since its inception, Capital Arguments has believed extraordinary projects are possible. They can be done safely, responsibly and offer a great advantage to their mills with lower capital costs and saved downtime. We established this award in 2008 to recognize those people and companies that follow this philosophy. This award is given once per year somewhere in the world. We honor our inductees permanently here.
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Mac Switkowski--Engineering Manager of the Year 2015
Mac Switkowski, center, holds his Capital Arguments Engineering Manager of the Year Award that was presented by Paperitalo CEO Jim Thompson, left, as Luis Henao, right, vice president at Pratt Industries applauds. Mac brought the new mill at Valparaiso in on time and on budget despite a change of paper machine suppliers mid project.
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Not Awarded 2014
You have to be really good to get this award. We did not receive any qualifying nominations in 2014.
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Not Awarded 2013
You have to be really good to get this award. We did not receive any qualifying nominations in 2013.
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Not Awarded 2012
You have to be really good to get this award. We did not receive any qualifying nominations in 2012.
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Ed Kersey--Engineering Manager of the Year 2011
Jim p
resents Ed with the Engineering Manager of the Year for 2011.
(L - R) Matt Nilsen, Jim Thompson, Ed Kersey and Wayne South. Nilsen is Account Manager and South is Business Development Manager for Kadant Black Clawson, underwriter of this year's award. Ed Managed the construction of the Pratt Industries mill in Shreveport, Louisiana which took 13 months from piling to paper on the reel. His reward? They made him mill manager!
Kadant Black Clawson was a major sponsor of the 2011 Award. Here, on the left, Peter Flynn, President of Kadant Black Clawson, receives the company's duplicate of Ed's Award from Steve Roush, Publisher and Editor, Paperitalo Publications.
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Not Awarded 2010
You have to be really good to get this award. We did not receive any qualifying nominations in 2010.
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Dean Abrams--Engineering Manager of the Year 2009
Now retired, Dean was an engineer at Corrugated Services, Forney, Texas, USA in the summer of 2009 when he completed his award winning project. Dean managed a team that installed a secondary headbox in 11 hours, 30 minutes, paper-to-paper. The experts had said it would take at least 3 days. In April 2010, we presented the award to Dean in the presence of a number of his colleagues.
Here is the award we presented to Dean:
Mike Ahcan--Engineering Manager of the Year 2008
Mike works at the UPM Blandin Mill in Grand Rapids, Minnesota, USA. In 2008, the mill's sole effluent pipe, running outside a building, almost in the Mississippi River, was determined to be in a state of imminent collapse. The experts said it would take a week of total mill downtime to replace it. Additionally, there was a danger of leakage into the river. Mike and his team went to work and replaced the pipe without any downtime and with no spillage. We had a banquet in Grand Rapids for him in July 2009.
And here is Mike's award:
We normally accept nominations in the November-December time frame. They can be sent to jthompson@taii.com with "EMOY Nomination" in the subject line.
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Please write when we tickle your brain cells! Email jthompson@taii.com
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