Capital Argument
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A trademark of Paperitalo Publications
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What the US Presidential Election Means for Capital Projects
There are two things to take out of the US presidential election for capital projects.
The first is costs--they are going up. The Light Green Machine Institute has determined that 3 out of every 4 pounds in the total installed weight of a pulp or paper facility is structure and foundations. In other words, concrete, steel, pilings and so forth. These are common building elements in nearly everything we construct in modern society. If the president-elect follows through on his promise to restore the infrastructure of the US, those projects are going to require these materials in large quantities.
We need to anticipate that deliveries will stretch and so will prices.
We received verification last week from a major pulp and paper company senior leader that this is going on already: "...Project costs have skyrocketed in the US. Capital equipment costs seem to be a normal progression but the adds for everything else are much more expensive in the US than elsewhere in the world. This is driving some innovation in how to complete projects here. I feel another reason for the cost amplification here is we underwrite the costs for construction projects that are not pre-engineered. Many of our projects seem to be getting re-engineered. We lost control of this when we outsourced our engineering..."
The other issue coming out of the election is the cost of money. If the president-elect can deliver on his promises to improve the economy, expect interest rates to return to normal levels from the bargain-basement prices we have seen in recent years. In large companies, engineers may think this does not affect them, but it will in terms of overall analysis of projects for viability.
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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