ILMA Compoundings – December 2019 - 3

BOARD OF DIRECTORS
President
President
ChuckCroghan
Decker
Dave
American
Oil &
Maxum
Petroleum
Supply International, LLC
Vice President
Vice President
Barbara
Kudis
Scott A. Schwindaman
Allegheny
Petroleum
Lubrication
Products
Co.Engineers, Inc.
Treasurer
Treasurer
MichaelDecker
Damiani
Charles
Radco Industries,
American
Oil & Inc.
Supply International, LLC
Secretary
Ann Ball
Secretary
CIMCOOL
Industrial
Scott
A. Schwindaman
Products LLCEngineers, Inc.
Lubrication
Immediate Past
Past President
President
Immediate
Barbara
Beth
AnnKudis
Jones
Allegheny Petroleum
Hangsterfer's
Laboratories, Inc.
Products Co.

Barbara
Ann
Ball A. Bellanti
Battenfeld Grease
&
CIMCOOL
Industrial
Oil
Corporation
Products
LLC of N.Y.

Dave Croghan
Michael
Damiani
MaxumIndustries,
PetroleumInc.
Radco
Lon Fanning
Fanning
Lon
DuBois Chemicals
Chemicals
DuBois
Catharine
T. Golden
Jarrett
Flegel
EtnaLubricants
Products, Inc.
Boss
Frank H. Hamilton
Catharine
T. GoldenIII
SouthProducts,
Atlantic Services,
Inc.
Etna
Inc.
Greg Julian
Frank
H. Hamilton III
Advanced
Lubrication
South
Atlantic
Services, Inc.
Specialties
Greg Julian
Michael McHenry
Advanced
Lubrication
Master Fluid Solutions
Specialties
Kent Morris
Morris
Kent
Pinnacle Oil,
Oil, Inc.
Inc.
Pinnacle
David Richards
Ronald
M. Powell
RichardsApex,
Inc.
Moroil
Technologies

STAFF
Chief Executive
Executive Officer
Officer
Chief
Holly Alfano
Alfano
Holly
Associate Director
Director
Associate
Martha F.F. Jolkovski
Jolkovski
Martha
Director of
of
Director
Communications
Communications
Brenda Gillinson,
Gillinson, CAE
CAE
Brenda
Member Services/
Services/
Member
Marketing Manager
Manager
Marketing
Tim Mack
Mack
Tim

EDITORIAL, DESIGN
EDITORIAL,Editor
DESIGN
Contributing

Digital Communications
Communications
Manager
Manager
Amber Lopez
Lopez
Amber
Membership Manager
Manager
Membership
Meg Thaxton
Thaxton
Meg
Accounting Manager
Manager
Accounting
Margaret Smith
Smith
Margaret
General Counsel
Counsel
General
Jeffrey L.
L. Leiter
Leiter
Jeffrey
Associate Counsel
Matthew Levetown

Brenda Gillinson, CAE
Contributing Editor
Brenda Gillinson, CAE

Designer
Mark St. Amand
Designer
Mark St. Amand

Drew Bankert
Senior Managing Editor
Managing
Editor
Sam Hoffmeister
Sam Hoffmeister

Copy Editor
Amanda Holahan
Copy Editor
Account
Manager
Amanda Holahan
Charity Fox
Account Manager
Charity Fox

THE YGS GROUP
THE YGS
GROUP
Senior
Editor

MEDIA SALES
MEDIA
SALES
Vice
President

Jack Davidson
Executive Vice President
Jack Davidson

LETTER FROM THE CEO

Richard A.
Camper
Barbara
Bellanti
Pacific Precision
Battenfeld
Grease &
Formulators
Inc.of N.Y.
Oil
Corporation

Advertising Account
Executive
Advertising
Tima
Good Account
Executive
tima.good@theygsgroup.com
Tima Good
tima.good@theygsgroup.com

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© 2019 Independent Lubricant Manufacturers Association.
ILMA
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ings magazine. Readers should keep in mind that bylined articles
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Compoundrepresent the views
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ings magazine.
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Notes from UEIL

s I write this month's letter, I have just returned from the Union of the European Lubricants Industry (UEIL) Annual Congress, and discussions and
issues are fresh in my mind. Once again, I was struck by the similarity of the
issues that concern our European colleagues. Like lubricant manufacturers in the
U.S., Europeans are grappling with rapidly changing technologies, such as artificial
intelligence, e-commerce and manufacturing automation. They are struggling with
workforce issues, including finding skilled employees and attracting the younger
generation to our mature industry. Disruption was a frequent theme, and this time,
the focus on sustainability has evolved into discussions on the "circular economy."
Workforce issues continue. Retention and recruitment of employees continue
to be a challenge. Coincidentally, I stumbled on an article in the Wall Street
Journal published shortly after I returned that highlighted some of the same issues
discussed at the congress. Despite high unemployment rates in countries such
as Italy, manufacturers are unable to fill positions, the newspaper reported, and
vocational school enrollment is at an all-time low. Discussions at UEIL echoed the
lack of trained workers and the need to develop strategies to retain existing staff.
Disruption on the horizon. As we've previously reported here in Compoundings,
the oil industry worldwide will be affected by the International Maritime Organization (IMO) 2020 regulations requiring lower-sulfur bunker fuel for ocean vessels.
The impact of the regulations for the lubricants sector is still being calculated, with
shippers developing various compliance strategies. Some shipping companies will
switch to purchasing low-sulfur bunker fuel, others will install scrubbers and other
shippers will move ahead with converting to liquefied natural gas. For those who
supply lubricants to the marine industry, these changes could mean new formulations. In addition, as refiners shift production from heavy bunker fuel to lower-sulfur
diesel fuel, there could be some effect on base oil supply, particularly Group I.
The circular economy. I must admit, I had to Google the term, "circular economy." According to Wikipedia, a circular economy, or circularity, is "an economic
system aimed at eliminating waste and the continual use of resources." For the lubricants industry, a circular economy would mean both recycling of lubricant products
and the use of bio-based or re-refined oils. Is that the direction in which Europe is
headed? My sense is that sustainability initiatives and Europe's desired move to a circular economy are in sync. At the congress a year ago, UEIL announced the creation
of a sustainability task force. The chairman of the task force, Apu Gosalia, asked
when ILMA would be creating a sustainability task force. While ILMA's Safety,
Health, Environmental and Regulatory Affairs Committee (SHERA) touches on
many sustainability issues, are there benefits to an increased focus on sustainability
issues? UEIL's strategy was to take a proactive stance, attempting to stay ahead, or at
least abreast, of European Union regulators. In the U.S., talk of a circular economy is
muted, at least for now. But it never hurts to stay ahead of the game.

Holly Alfano
Chief Executive Officer

http://www.ilma.org

ILMA Compoundings – December 2019

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