EXPOSED: The 7 Environmental Infractions Most Commonly Levied Against Missouri Manufacturing Plants By the DNR & EPA

Avoiding The Dreaded “NOTICE OF VIOLATION” - Simple Steps You Can Take

In my 22 years of experience working for the Missouri DNR, I noticed a repeating pattern with manufacturing facilities who were getting thrown into the hot seat over 7 common compliance mistakes. 

It’s almost as if the entire dialogue was taken off of a movie script...

A facility would receive a dreaded “NOTICE OF VIOLATION” letter in the mail. An upset manager would call the DNR stating he or she had no idea the environmental law they broke even existed. Then, they would claim they were being targeted or victimized by the “heavy-handed” regulatory agency for some unknown nefarious reason.

It never failed. 

Ironically, the real-world scripted response given by the DNR enforcement staff each and every time was always the same: “Ignorance of the law is not an acceptable excuse”.

Understandably, many facility managers and small business owners think it is impossible to keep up with all of the “random” DNR & EPA regulations. In their eyes, it is a work in futility. Sweeping it all under the rug seems to be the de facto strategy for those that don’t decide to proactively deal with it, and that always leads to the enforcement hot seat.

Truth be told, it is an extremely challenging and daunting task to research and understand all of the environmental laws and rules that govern various manufacturing installations. It can be intimidating, overwhelming, and downright depressing.

But there is good news!

I’ve always been a big believer in the strategy of reverse-engineering problems. It’s a much more manageable and efficient way to solve complex issues. Reversing the process could help you to start down the pathway of becoming an expert with environmental compliance.

Let me explain why…

Since I noticed that the majority of violations were based on the same 7 common infractions, studying this list could be a better starting point rather than diving into the entire Code of State Regulations head-first. It’s like looking up the answers to the math questions in the back of the textbook back when you were in high school.

Having a better understanding of the most common enforcement occurrences might help you avoid getting into hot water in the future. So with no further adieu, here are the top 7 environmental infractions that the DNR and EPA levy against manufacturing installations:

1. Failure to Obtain Permits: Manufacturing plants must obtain the necessary permits for their operations BEFORE construction or expansion of the facility, including permits related to air pollution emissions. Failing to obtain these permits or not renewing them on time can lead to notices of violation and fines.

2. Noncompliance with Emission Limits: Manufacturing plants are required to comply with specific emission limits set by state environmental agencies and the EPA, especially when dealing with processes that involve hazardous air pollutants (HAPs). Exceeding the limits for dust, VOCs, HAPs, and products of combustion can result in violations and penalties.

3. Inadequate Monitoring and Reporting: Even if a facility has properly obtained a construction permit, there may be ongoing monthly & yearly tracking requirements listed in the permit as special conditions. This can also include monitoring requirements. Accurate monitoring and reporting of air pollution emissions are crucial for compliance. Failure to properly monitor emissions or submit required reports can lead to notices of violation and fines.

4. Improper Handling and Disposal of Hazardous Waste: Manufacturing plants can generate hazardous waste as part of their operations. This can also include a separate category of regulated non-hazardous “special wastes”. Improper handling, storage, or disposal of hazardous waste can result in violations and penalties.

5. Failure to Implement Pollution Control Measures: Some of the larger manufacturing plants that have significant levels of regulated air pollutant emissions are expected to implement appropriate pollution control measures to minimize their environmental impact. Neglecting to install or maintain pollution control equipment can lead to notices of violation and fines.

6. Lack of Employee Training and Awareness: Adequate training and awareness among employees regarding environmental compliance are essential, and required by law. Failure to provide proper training or ensure employee compliance with environmental regulations can result in violations and penalties.

7. Neglecting to Conduct Regular Inspections and Maintenance: This could be one of the easiest aspects of compliance to implement. However, many facilities still get tripped up over this category when compliance could be as simple as keeping a log book. Regular inspections and maintenance of equipment and pollution control systems are necessary to identify and address any issues promptly. Neglecting these activities can lead to violations and fines.

Rather than putting off environmental compliance until you get a “NOTICE OF VIOLATION” letter and a big fat fine, this headache can be easily avoided by taking these steps:

1. Study the list of infractions listed above, and research actual cases that have occurred in the past with facilities related to your own.

2. Appoint a lead worker at your facility to look into all areas of the operation that could have vulnerabilities related to these infractions, and to serve as a company contact or environmental compliance designee.

3. Have your environmental manager or lead worker research and identify all rules within the Missouri Code of State Regulations (CSR) and the Code of Federal Regulations (CFR) that could apply to your facility.

4. Create a proactive compliance plan that can be made readily available should an inspector from the Missouri DNR or USEPA show up unannounced at your front door.

5. EXPECT a visit from environmental regulatory agency representatives even if you’ve never had a surprise inspection in the past.

To conclude…

You can avoid unnecessary fines and notices of violation by simply planning ahead. Don’t forget that ignorance of the laws & rules is not an acceptable excuse to regulators. It won’t get you off the hook.

Take the effort to get ahead of this now, rather than later. Besides, environmental compliance is your responsibility, and it should be incorporated into your facility’s normal business operations.

While it might seem to be a chore that takes valuable time away from running your business, view it not only as a necessity, but as something that can actually improve your facility’s efficiency and help you meet your bottom line.

And remember, you can press the “Easy Button” to shortcut the entire process by reaching out to me. Strategic Regulatory Compliance Consultant Agency is just a phone call away, and you can leverage my experience!

Carlton Flowers
Environmental Consultant, SRC

5 Benefits of Implementing Quality Improvement In Your Facility

Is Quality Improvement Worth Your Investment?

Hello industry friends 👋, I want to share with you the story about my journey with Quality Improvement (QI), and give you FIVE WAYS that QI can benefit your organization if you aren’t already familiar with it.

Back in the early 1990’s, I had the great opportunity to work at MoDOT, beginning my engineering career. I gained a ton of knowledge about highway design, construction, bidding & contracting, and more, but one of the most significant experiences I had was being involved in the rollout of their Quality Improvement program.

Are you familiar with Quality Improvement? If you’re not, go and google “Deming Cycle” right now, and you’ll get the gist of it. In a nutshell, it’s a process that helps you identify problems, get to the root cause, and plan out the fix.

To be honest, I was very skeptical about “QI'' at first. So were the majority of my coworkers. We all thought it would be some type of new-age “feel good” program, a total waste of energy that we’d all forget about over time. But after I went through the extensive training program, it completely changed my perspective on it. I was completely hooked, so much so that I decided to become a QI facilitator and trainer myself. 💡

What amazed me the most was how simple the QI process was, yet how incredibly effective it proved to be when solving problems or making improvements on operational efficiency. It became a game-changer in everything we did, and it stuck with me for the rest of my life.

After moving on from MoDOT to join the Department of Natural Resources, I taught and used the process on a regular basis when solving compliance problems for manufacturers, agricultural installations, and construction industry companies. There was always an opportunity to use quality improvement in what I did for my clients.

If you’re not already familiar with this concept and wondering whether or not you should look into QI for your organization, let me give you five benefits to consider in adopting this transforming philosophy:

Benefit #1 - Problem Solving Superpowers

QI equips you with a systematic approach to problem-solving. It empowers your team to identify root causes, brainstorm solutions, and implement effective changes. Say goodbye to firefighting and hello to proactive problem-solving! 🔥

Benefit #2 - Streamlined Processes

With QI, you'll streamline your organization's processes like never before. By identifying inefficiencies and eliminating waste, you'll boost productivity and save valuable time and resources. Efficiency for the win! 🚀

Benefit #3 - Empowered Employees

QI encourages a culture of continuous improvement. By involving employees at all levels, you'll empower them to contribute ideas, take ownership of their work, and make a real impact. Engaged employees are happy employees! 😊

Benefit #4 - Customer Satisfaction

When your processes are optimized through QI, it directly translates into improved customer satisfaction. Delivering high-quality products or services becomes second nature, and your customers will thank you for it. Happy customers, happy business! 🌟

Benefit #5 - Competitive Edge

Organizations that embrace QI gain a competitive edge in their industry. By staying ahead of the curve, adapting to changes, and constantly improving, you'll position yourself as a leader in your field. Stay ahead of the game! 🏆

So there you have it! Quality improvement isn't just a buzzword – it's a game-changer that can revolutionize your organization. Embrace the process, empower your team, and watch the magic happen! ✨

Have you had any experiences with QI? I'd love to hear your thoughts and stories in the comments below. Let's start a conversation and continue our journey of improvement together! 🙌

Carlton Flowers

#QualityImprovement #GameChanger #TransformYourOrg

“Collaborative Compliance” - The Key to Winning the Regulatory Compliance Game

Is It Possible to Reduce Costs and Simplify Complex Regulatory Compliance Processes?

This is the most common question I get from the regulated community when it comes to ongoing environmental compliance. Keeping up with the wide array of DNR and EPA compliance regulations can be a headache for facilities trying to focus on meeting the bottom line, and staying out of trouble. Most companies view the environmental regulators as a big stumbling block to success, and a barrier to free enterprise.

The answer to the question is a resounding “yes”... IF you have the right coaching from someone who knows how to cut through the regulatory red tape, pages of rules and laws, and create a workable pathway to compliance. But to many plant managers in the world of manufacturing and industry, figuring out the regulatory landscape can seem like an insurmountable headache without proper help. 

Many companies find themselves grappling with compliance issues, often viewing regulators as adversaries rather than potential partners in a complex journey. After 29 years of working in environmental regulation, I've learned that a different approach can not only simplify the process but also save companies significant time and money.

Some companies have the resources and staff to plow through it on their own, others just need a guide who can shine the light on the dark pathway. That’s why I created Strategic Regulatory Compliance Consultant Agency in 2019 after my 29-year tenure with the State of Missouri, where I served as the Environmental Compliance Assistance Engineer for small businesses, and those who don’t have the staff to solely focus in this area.

While there are many other environmental consulting and engineering firms in the Midwest that companies can seek out for help, let me give you 7 key factors of consideration on why Strategic Regulatory Compliance Consultant Agency can provide your facility with the most value:

1. Changing the Game Through “Collaborative Compliance”

One common mistake that consultants and regulated companies make is adopting an adversarial stance towards regulators. This is usually the result of prior negative experiences. Fighting and arguing with regulators usually results in significant amounts of wasted time, revenue, and resources. I’ve seen it time and time again in my experience with the State. The mindset that regulators are the "enemy" often leads to a rocky start, which can result in harsh enforcement actions, and more strict regulation.

Instead of fighting regulators, my strategy has always been to work WITH regulatory officials to resolve compliance issues in a collaborative effort. It has always amazed me at what can be accomplished just by changing preconceived notions and negative expectations from the start. This significantly reduces the amount of time to arrive at compliance, and can even result with the manufacturing facility being allowed the production they need, along with the regulatory agency successfully enforcing the laws & rules.

2. Leveraging My Experience to Reach YOUR Goals

During my extensive career as the Compliance Assistance Engineer for the Missouri DNR, I specialized in helping companies navigate the complex world of air quality, solid waste, and hazardous materials regulations. In that time, I spent significant time cultivating my ability to communicate with inspectors and compliance workers in a way that fosters collaboration, rather than confrontation and confusion.

With the years of experience I have under my belt, and the wide variety of manufacturing plants and installations I have assisted in the past, it is highly likely that I will be able to quickly identify the most reasonable pathway to compliance for your facility. You can leverage MY experience to help you reach your production goals while remaining in compliance with the extensive environmental laws & rules.

3. The Costly “Consulting Engineering Dilemma”

Many companies opt for the services of large consulting engineering firms to address regulatory and compliance challenges. While these firms possess technical knowledge, they almost always lack actual regulatory experience. They also don’t possess the skills needed to negotiate and collaborate with regulatory agencies.

Hiring a large consulting engineering firm does have advantages, such as the ability to pound through the necessary groundwork to get a permit application package put together. But they aren’t looking to cut your costs on billable hours. They are trained to drum up enough contract work to meet their bottom line, not protect yours. Large installations normally have the budget to let the consulting firms bill what they need. But small to medium-sized businesses need safer options that will work within their budgetary constraints.

Your option is to continue hiring these large consulting firms who have significant overhead costs to cover, or hiring an expert retired government official with practically no overhead. If you want to only pay for what you actually need, SRC is your answer.

4. A Keen Understanding of the Essentials

In my experience, I've observed that a significant portion of the technical information provided by consulting firms is often unnecessary. Regulatory agencies focus on specific key information to evaluate permit applications, and I know precisely what that entails.

When reviewing permit applications that were completed by large consulting engineering firms, it was normal to find that 3/4ths of the information included was unnecessary, or not done in an acceptable manner for passing review.

With my experience in assisting facilities on the completion of permit applications, I have the ability to strip-down the permit package to what is actually needed, with calculations and process descriptions done in a way that review staff are familiar with. The result? Significant cost savings, and quicker turnaround time on permit issuance.

5. Streamlining the Process

With my knowledge of the essentials, I can drastically reduce the time and information needed to complete a full permit application package. But another reason why I am able to streamline the process is due to my location in Jefferson City, where the regulatory agencies reside.

Having the ability to meet in-person with regulatory staff is a major advantage when working through compliance issues, thus saving you the time and human resources needed for traveling to meetings. SRC can accomplish all of this on your behalf.

6. Negotiation as a Solution

My experience extends beyond technical “know-how”. I specialize in negotiation, bringing together regulatory agencies and industrial installations to create mutually acceptable solutions.

Facilities often feel that compliance constricts their critical bottom-line production level. At the same time, some regulatory officials are limited in their ability to draft permit packages that aren’t prohibitively restrictive.

I’ve learned that there are different ways regulators can look at the “maximum throughput rates” by acknowledging the existence of real-world bottlenecks, thus proving certain pollution scenarios to be impossible.

This result is the negotiation of the most acceptable permit document for all parties involved. I show the regulators how they can more accurately assess the worst-case potential to pollute by creating a set of regulatory limits that can be met more realistically, a permit which allows the industrial installations to meet their necessary maximum production goals all while operating within the law.

7. A Cost-Effective Solution

It’s difficult to determine what the most cost-effective approach is for hiring out compliance help. Some are distracted by lower hourly rates that consulting engineering firms charge, and tend to price shop based on those rates. But when you factor in total time invested to complete the process of obtaining a permit, or getting back into compliance, those low rates can be deceptive.

SRC might have a higher hourly rate than engineering consulting firms. But when you consider that my experience allows me to complete the same tasks in a fraction of the time, your overall expenditures are going to be a lot lower. Plus you can put more faith in the end product, thanks to my regulatory experience.

Ready for a Change? A Free Evaluation Awaits

Before you spend a dime, allow me to offer a free evaluation of your situation. As a matter of fact, I’ll come to you personally. We’ll assess your current company’s challenges and rough out a pathway to compliance with the regulators while ensuring you maximum success!

Connect with me today to explore a better way to manage your regulatory processes. It's time to transform your relationship with the regulators and transform whatever the current situation may be into a successful partnership that works for the best. I look forward to providing you with the most value for your investment!

Carlton Flowers
Owner, SRC LLC

Click the logo below for more information on Strategic Regulatory Compliance consulting services, and also check out my new blog, “Carlton’s Industry List”, for the latest developments in the manufacturing and construction sectors!

A Warning About Handling Broken Fluorescent Light Tubes

IS YOUR FACILITY AT RISK? HERE’S WHAT YOU NEED TO KNOW…

If your facility is still using compact fluorescent lighting, pay close attention and heed my advice. I want to save you from the frustration of a potential money-draining headache by offering a strong word of warning concerning their use.

Fluorescent light tubes are outdated. While it is common knowledge that they consume an enormous amount of excess energy that wrecks your utility budget, they also present a serious health threat to human beings, animals, and the environment when they are broken.

As most of you know, these light tubes contain mercury. When broken, they can release dust and vapors that contain enough mercury to present a significant health risk. Mercury is a dangerous heavy metal that is carcinogenic, and it can easily migrate into the environment contaminating the air, water, and also soil.

I have witnessed many facilities that do not abide by the EPA recommendations for cleanup when a light tube or CFL bulb breaks, and this is something that can trigger corrective actions on the part of regulators.

Notices of violations and fines can be imposed if an inspector finds evidence that a facility does not follow the proper safety guidelines when bulbs are broken, and this is something they are trained to look out for when performing inspections.

If you don’t have a written contingency plan contained in your standard operating procedures, you run the risk of getting into hot water with the EPA, the DNR, and also OSHA. Many facility managers and safety personnel are not even aware of the recommended steps that are to be taken in the event of a broken bulb.

The following short summary can be used to write your own standard operating procedure to educate employees and managers who handle fluorescent bulbs for replacement, or those who operate equipment that can cause bulbs in use to be broken.

What To Do When A Bulb Breaks

• Evacuate all people from the room.

• Allow at least 5 to 10 minutes of airing out by opening a window or door.

• Shut off the central forced air from your HVAC system.

• Use sticky tape to pick up the small glass shards from the area, and use a stiff piece of paper or cardboard to collect the larger glass pieces.

• Use damp paper towels or disposable wet wipes to clean the floor and all hard surfaces that are affected.

• Place the broken glass, sticky tape, and cardboard into a glass jar or heavy plastic bag.

• ALL cleanup materials and waste should be finally placed into a sealable container appropriate for hazardous materials in order to carry out proper disposal.

• Contact your authorized hazardous materials disposal company about picking up the sealed containers.

• If it is practical, you should continue to allow the room to be aired out for several hours and leave the HVAC system shut off during this time.

Another important word of advice, do not vacuum or sweep up the glass!  Vacuuming and sweeping will spread the mercury-containing powder and vapors that have escaped from within the bulb. This is not a safe cleanup method. It will also contaminate any equipment used.

It is best to plan ahead to prevent these small incidents that can lead to wasting thousands of dollars in OSHA or EPA fines. Careful planning will also help reduce the chances of exposing workers to mercury poisoning. An ounce of prevention is definitely worth a pound of unnecessary suffering.

If you really want to be proactive, he most responsible plan of action is to not have these mercury-containing bulbs in your facility at all. In this day and age, there is no logical reason to continue the risk of using fluorescent light tubes. Furthermore, there are no financial advantages to running out the life of your current fluorescent lighting if they still exist in your buildings.

Stay tuned for my next article which will prove to you why you are wasting more money than you are saving by not proactively replacing ALL of your fluorescent lighting. You will be surprised at what you learn with this information!

Carlton Flowers
Carlton’s Industry List

Regulatory Fines for Compliance Infractions - My Advice for a Positive Outcome

A BALANCED VIEW FOR FACILITIES & REGULATORS

A good topic that is guaranteed to fire off robust conversation would be EPA and DNR fines for environmental compliance infractions. Regulated facilities within the manufacturing, agricultural, and construction industry sectors are the most commonly affected.

In this post we’ll discuss both sides of the equation, and how the levying of fines can actually open up the opportunity for a collaborative effort that ends well for all parties involved.

Facility managers and small business owners often feel as if they are being unfairly and unmercifully punished when a notice of violation comes in the mail accompanied by a potentially financially-crippling fine. But while many might feel that the fines can be heavy-handed or unfair on behalf of the regulatory agencies, there is one simple reason why they feel such legal action is a necessity…

To get your attention.

In my experience, I don’t believe it is the intent of the EPA and DNR to cripple facilities or hinder the business community by levying fines. I also don’t believe agency fines are levied just to exercise their regulatory power.

Whenever a penalty comes into play, it is usually the last step of a process that culminates over many months or years. A fine is issued when the regulatory agency feels it is necessary to protect human health and the environment, and it can result from a civil or criminal enforcement action depending on the egregiousness of the infraction.

The Notice of Violation and corresponding penalty is normally issued because of an imminent threat to residents or employees at a particular installation, or to the surrounding ecosystem. The severity of the penalty is directly proportional to the level of risk of exposure resulting from the failure to adhere to the law & rules. Typically, this is the last action after a series of attempts get the attention of a facility fails.

After a fine has been issued for an infraction, from my experience, a line is usually drawn in the sand separating the facility and the regulatory agency. At this point, a struggle often ensues where the facility managers and the regulators argue over the validity and necessity of the fine. This can lead to unnecessary litigation and a significant amount of time and money wasted on settling the issue.

A more productive way to handle these situations is to view them as an opportunity for the regulators and the regulated to come together for the purpose of understanding one another. The great majority of the time, facilities want to do what’s right but just don’t know how.

In the “real” world, facilities have to deal with so many regulatory agencies that compliance with one in particular can slip through the cracks. On the other hand, regulators may not always realize that they are only one in a long list of agencies that demand the attention of facilities for compliance.

While efforts are made by regulatory personnel to reach out to facilities in non-compliance, facility managers often find themselves giving their attention to the agency that poses the biggest threat to continued operations at that time. That’s how a non-compliance situation can get to the level of penalties or fines.

If a facility shows its willingness to get back into compliance, there is hope. Also, if the regulatory agency starts with the assumption that the facility did not intend to willfully violate the law, a collaborative and productive effort to right the situation can happen. Negotiation is possible for reduced settlement of fines when open and honest communication takes place.

Anyone that has worked in private industry knows that facility managers are usually caught up in the endless daily struggle for meeting their bottom line. The pressure to keep financially afloat can be great. Often times, regulatory compliance isn’t written in to the cost of doing business.

Additionally, planning standard operating procedures that include environmental compliance may not have taken place from the jump. But when a fine is issued from a regulator, it offers the opportunity to rework their business plan and adjust priorities by bringing the issue to the forefront.

One thing that we must come to realize is that we’re all playing on the same team. Industry brings us the products and services that we as citizens need to have a comfortable living and a strong economy, and regulators are there to ensure that the production of such goods and services is carried out in the most responsible manner that protects human health and the environment along the way.

If a regulatory fine brings people together to work as a team, the outcome can be a win-win situation for all parties involved. In the end, it can help provide the framework a regulated facility needs to ensure future compliance and growth for the business as a whole.

In my next article, I’ll talk about the true cost of doing business in an environmentally safe way, and how some facilities enjoy a short-term unfair competitive advantage due to circumventing the laws & rules covering environmental compliance.

Carlton Flowers
Carlton’s Industry List

Market Watch - Titanium Dioxide Set For Major Growth

Why This Raw Material Is A Positive Growth Indicator for Manufacturers

A good way to predict what is in store for several Missouri manufacturers is to keep your eyes on the raw material titanium dioxide. Why? Because it is directly connected to pigments. Any manufacturing process that involves paint coatings is directly affected by the outlook of this key raw product.

Nothing can happen in manufacturing without a good supply of of titanium dioxide. Raw material suppliers base their production on the outlook of manufacturing itself, which means they are doing their homework on the economic outlook for the manufacturing industry itself.

As we speak, the prognosticators are talking about titanium dioxide becoming a growth industry between the present time and the year 2024. It feeds into the market for paint coatings, paper & pulp, textiles, plastics, rubber, cosmetics, printing inks, catalysts, welding electrodes, food colorants, water treatment agents, and pharmaceutical products.

There’s also a lot of talk going on about the rise in use of polycarbonate plastics in the automobile industry due to demand for lighter weight vehicles, and also products relating to building construction. Titanium dioxide provides the needed protection for these materials which have a low scratch resistance. A rise in plastics plastics production will require an increase in the supply of these protective coatings.

Most of my research points to the use of titanium dioxide in paint coatings first and foremost at 58%, with polycarbonates coming in second. Take special note to the fact that production of water-based paints is on the rise, and this raw material plays a big role in their use and development.

It’s pretty safe to say that titanium dioxide production is a key forecasting agent for market growth, and is definitely something we need to keep our eyes on as a consideration for how much production the Missouri market will be able to soak up for our manufacturers.

I’ll be digging up even more of these key market indicators in the coming weeks. There are about five that I have my eyes on, and I will keep you posted.

Carlton Flowers
Carlton’s Industry List

2018 Oil Crash - The Potential Effect of Falling Oil Prices on Manufacturing

The Positive & Negative Outcome of Lower Oil Prices to Consider

If you’ve been watching the news, you might have seen that Oil prices are taking a nose dive. WTI Crude is currently sitting at $56.75 at the time I’m writing this post, which is just barely a notch above the low point. This is a definite bear market for oil, and the slide has been steady for a few months now.

Some say that this is the low point, and others say that there will be one more nose dive before it’s over. Whatever the case, the effect is going to be the same, and it’s something that everyone needs to take note of. Now is the time to take into considerations the positive and potentially negative impact of this slide on the economic outlook for Missouri manufacturing.

Let’s start with the positive impact. The most obvious impact will be lower prices at the fuel pump. That means consumers will have more buying power, and it might spur strong retail sales, especially during the holiday season. Consumer spending could stay strong for several months as a result, so this will have a definite impact on those of you who are manufacturing end-user products. B2B manufacturing may not see a spike in sales, but it is possible.

Lower oil prices mean cheaper oil-based chemicals. Those of you in the manufacturing industry that depend heavily on solvents and other oil-based products will probably see a drop in supplier pricing. It might take a while to trickle down, but there will be an effect. So you can count on a little wiggle room in your supply budget soon.

Now let’s look at the down-side. The bear market can have several negative impacts on your bottom line that could offset the positive. So it’s worth considering for your short-term production planning.

When oil prices fall sharply, you would automatically think that automobile sales would spike. That’s not necessarily true. In the past, consumers actually sit on the sidelines and wait to see what the future holds before spending on new cars. Consumers might think, “do I buy that SUV, or should I play it safe and get the small hybrid?”

While we have such volatility in the price of oil, it’s hard for consumers to feel secure in making firm decisions on big ticket purchases like cars. People will often wait until gas prices stabilize before finalizing a new car sale. So if you are somewhere in the supply chain for automobile production, don’t bet the farm on a big increase in buying just because gas prices drop.

If you are exporting, you better do your homework. A drop like this in oil prices has an effect on the strength of the dollar. As oil price drops and the dollar strengthens in value, that’s good for everyone except the countries who are BUYING from the US. A stronger dollar means less buying power for US goods. It’s really a complex relationship. But watch out if you are involved in export trade, or gearing up to expand into trade.

The long-term negative potential impact of the oil price drop would be the economy as a whole. This could be an indication of an impending recession. Couple this with the stock market action, and it very well could be the start of a big slow down.

The bottom line is, you better plan for the worst. There could be a nice spike in demand the short run, but the prospect of an economic slowdown certainly is a possibility.

How has the oil bear market affected the numbers for your facility, if any? Have you considered these factors in your immediate or long-term operational plans? I’m looking forward to hearing your input, and encourage you all to share.

Carlton Flowers
Carlton’s Industry List

Carlton's Industry List Blog Has Launched! What to Expect

Welcome to the Industry List Blog - What’s In Store

Welcome aboard everyone, Carlton’s Industry List Blog has officially started! I’d like to take a few minutes to let you know what I have in store for you and explain what this will be all about.

The Industry List blog site will be my communication tool for sharing cutting-edge information as it happens with the manufacturing industry, the agricultural sector, construction industry, consulting firms, small businesses, and municipalities alike.

You’ll be the first to know about changes in regulations, trends, economic developments, and key factors that can affect your operation before it becomes available in the regular news networks. My goal is to provide highly valuable content that will help you in decision making and planning to keep up with the current state of industry.

You can expect about two to three blog posts per month. I encourage everyone to chime in and comment with your thoughts, insight, and questions about the topics that I bring to your attention. Collaboration among the members will be the key to making this work in the most beneficial way for everyone.

Here’s a summary of the types of articles that I will be bringing to you regularly:

• changes in regulations and pending legislative action

• trends in regulatory practices

• best practices for industry efficiency

• key insight on developments within various niches

• opportunities for energy cost reduction and utility rebates

As we move forward, my goal is to be your point-man for information and be the central hub for all of you, my closest friends who are in this group. Keep your eyes peeled, and be ready to share your thoughts and interact!

Carlton Flowers
Carlton’s Industry List