5 Things to note from the Hose Manufacturers Conference

CUYAHOGA FALLS, Ohio—There is plenty of room for growth in the hose industry, especially with the adoption of autonomous and electric automotive technology. These growth opportunities were at the forefront of the Hose Manufacturers Conference, which returned to Ohio Nov. 12.

The biannual event is hosted by Rubber & Plastics News and organized in conjunction with Continental ContiTech and Beaver Manufacturing Co. Inc.

The first day of the two-day conference featured 11 presentations, including a keynote address that focused on the strength of the U.S. economy and the immediate economic outlook for the U.S.

Here are 5 takeaways from the first day of the event.

1. The economy looks good

Roger Tutterow, professor of economics at Kennesaw State University, kicked off the Hose Manufacturers Conference with good news: The economy remains strong, despite what appears to be some recent hiccups.

"I don't think economic expansions die of old age. I think economic expansions die because of bad policy," Tutterow said, noting that he believes the policies of the Trump administration are on-target when it comes to growing the economy amid global pressures.

"The economy has slowed," Tutterow said, "but we do not believe that recession is the most likely trajectory in the near term."

The biggest reason for that, he said, is simple: Consumer confidence has not waned much. As long as the American consumer continues to spend, they will drive the economy toward growth. And, Tutterow noted, "Main Street America has not abandoned the economy yet."

Overall, Tutterow sees plenty of reasons to remain optimistic about America's economic future. In addition to consumer spending, the economy continues to add jobs. Moreover, manufacturing still has a solid foundation.

"Odds of a recession in 2020 right now are 1 in 3, which is right where we started in 2019," Tutterow said. "I have friends that think (a recession) is an even bet, but I don't think it is."

2. Electric vehicle demand varies greatly by region

Across the globe auto makers are investing in and rolling out new electric vehicle technology at a rapid clip. But whether or not consumers embrace that technology depends greatly on the region, according to Jeff Andrasik, product testing manager and senior testing engineer at Smithers.

"A lot of the Asian countries really are driving the attitude toward electric vehicles," Andrasik said.

Consumers in China, he said, are the most likely to purchase an electric vehicle. There, two thirds of drivers say they are likely to buy an EV for their next car. In Japan, 59 percent of drivers say they are likely to purchase an electric vehicle.

Meanwhile, in America, two thirds of drivers say they plan to purchase an internal combustion engine vehicle.

There are a number of reasons that Americans are less likely to purchase an EV, Andrasik said. Battery range, recharge times and the lack of infrastructure supporting EVs are among the biggest factors, though, vehicle price and low traditional fuel costs also play roles.

3. EV technology itself is going to drive acceptance

While the adoption of EV technology seems inevitable, there are big challenges to take on before the technology can dominate the industry, according to David Antanaitis, General Motors' global lead engineer for brake calipers, corner assemblies, jounce hoses, wheelspeed sensors and brake cooling ducts.

"The reality check is that there are still significant challenges to overcome," Antanaitis said. "Some battery raw materials are limited and may come from politically unstable regions of the world. … (Also), infrastructure for charging is not well developed."

Plus, batteries are costly to replace, roughly one third the cost of the overall vehicle, according to Antanaitis.

Battery life also may be a factor.

"There are actually state regulations that mandate minimum warranty period," Antanaitis said. "Commonly accepted is 8 years, 100,000 miles. Although, in places like California there are considerations for 10 years, 150,000 miles. The actual battery life experienced in use will depend on specifics."

4. AV adoption is not likely soon

While it is likely that electric vehicle technology will take hold within the automotive industry, even as the auto makers continue to work toward autonomous vehicles, envisioning, Antanaitis said, an industry that rivals airline travel.

Still, a more complete adoption if AV technology likely is a long way off.

"Personally, I think even the pessimistic projection may be optimistic," Antanaitis said. "Most projections show AVs becoming a significant factor in the automotive industry during the next few decades."

5. The best hose manufacturing and distribution practices are STAMPED

Safety may begin with the manufacturer, but it certainly doesn't end there.

Joanna Truitt, NAHAD director of training and the Hose Safety Institute, believes that establishing a culture of safety throughout the hose industry—from the supplier, to the manufacturer, distributor and, ultimately, the end user—requires everyone to be the same page.

Getting everyone on the same page requires communication and collaboration, she said. And the easiest way to do that is through the STAMPED method, which focuses on key areas of development and use. Factors that contribute greatly to the hose during its time in use are:

• Size
• Temperature
• Application
• Material/Media
• Pressure
• Ends
• Delivery

Taking these same factors into consideration during new product development also helps to establish a foundation of safety.

"It benefits our industry when distributors, manufacturers and suppliers agree to solutions and best practices that set a high standard of safety," Truitt said. "If, together, we can kind of collaborate and understand what those minimum guidelines for fabrication, post fabrication and handling might be during the development stage, we might be better off when the product hits the market."