Transcript Slide 1

The Five Critical
Challenges Facing
Every Owner &
Manager
in The Crane
& Lifting
Industry Today
Knowing exactly how to avoid
these threats can dramatically
impact your company’s bottom
line every day
Why Crane Inspection & Certification Bureau
commissioned a study…
• Every day Crane Inspection & Certification Bureau is
in contact with owners, managers and operators of
lifting and material handling equipment.
• As a crane and lifting industry safety training company,
we are constantly impacted by the challenges
companies face for increasing productivity safely,
compliance requirements, and the
implications of down time in their businesses.
• So, in mid-2011 we engaged Empire Research Group,
an independent research company, to investigate
some of the greatest challenges these owners and
managers face and to offer their take on solutions.
We are pleased to share their study with you!
Crane Inspection & Certification Bureau, LLC - © 2011
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This is What We Wanted to Know
• What has the lifting and material handling
equipment industry experienced over the
years?
• What are the greatest threats facing
owners and managers today?
• What can be done to overcome the
challenges, to maintain a safe
environment, compliant with OSHA &
ANSI/ASME regulations, and improve our
customer’s bottom line?
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Statistics and Trends
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The lifting and material handling equipment
industry is a flagship sector of the U.S. economy
• There is a strong relationship between
construction investment and
equipment sales
• The total equipment sector is actually
comprised of three major industries:
– Equipment manufacturing
– Machinery and equipment
merchant wholesalers
– Machinery and equipment
maintenance and repair
• The total construction equipment
industry is directly responsible
for over $139 billion
Source: U.S. Construction Equipment: Powering Jobs and Dollars, September 2009, HIS Global Insight
5
The industry is a reflection of the economy
350
300
250
200
150
100
50
2008
2007
2002
2001
1997
0
1992
• Low interest rates and a booming economy
in the late 1990s fueled residential, public,
and commercial construction in the U.S.
– This, in turn, boosted demand
for construction machinery
and lifting and material handling
equipment, taking the industry
from 160 heavy equipment sales
firms in 1992 to 280 in 2001…
– A 75% increase in less than 10 years
• The strong economy also led to the
construction of new football stadiums
and other sports arenas
– Again driving sales of heavy equipment
to complete the projects in 2008
Source: Construction Machinery and Equipment Reference for Business, Encyclopedia of Business, 2 nd ed. 2011
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Eight years of consecutive growth lead to
equipment sales of $24 billion in 1998
• The industry weakened slightly in 1999
dropping shipment values to $21.9 billion
• However, the passing of the 1998
Transportation and Efficiency Act for the
21st Century, the biggest public works
bill in U.S. history, set aside $219 billion
for transportation needs
– $175 billion was earmarked for road
and bridge repair and construction
• The impact on the lifting and material
handling equipment market was
extremely positive…
– Sales rebounded in 2000 to
$22.5 billion
Equipment Sales in
$Billions
$24.0
$23.5
$23.0
$22.5
$22.0
$21.5
$21.0
$20.5
1998 1999
2000
Source: Construction Machinery and Equipment Reference for Business, Encyclopedia of Business, 2 nd ed. 2011; Construction Equipment, December 1, 1998
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Exports helped manufacturers in a
cyclical industry
• U.S. lifting and material handling
equipment exports dropped more than
38% in 2009 compared to the previous
year for a total $12.8 billion worth of
machinery shipped to other nations
– Declines of between 30 to 50% took
place for major world regions
• And then… U.S. equipment retail sales
climbed 21% in 2010 vs. 2009
• And, exports of U.S. equipment were
up by 48% in the first half of 2011
totaling $11 billion
2010
U.S.
Sales
climb
21%
2009
U.S.
Exports
drop
38%
Source: Plan Now for Future Fleet Needs, March 17, 2011, Equipment Today; U.S. construction machinery exports: 2009 declines top 38 percent, but business improved as year progressed, 3/3/2010,
News Release, Association of Equipment Manufacturers; Total U.S. construction machinery exports at midyear-2011 at $11 billion, Equipment World, 8/29/2011; Crane Hot Line, 9/1/2011
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Danger in the Industry has been Increasing
• Annually between 1983 and 1992 , the
following were reported:
– Average of 10 crane-related injuries
– 1,200 lost work days
• 1993 - 79 deaths caused by human
and mechanical error involving cranes
• 1997 to 2007 - annual deaths ranged
between 62 and 90
• 2008--the number jumped to 197…
– Then to 217 in 2009
• 2010 - there were 121 fatalities
• Through May 2011, there were 57 crane
related deaths
250
Crane-related
Fatal Injuries
200
150
100
50
0
1997
2003
2008
2010
Source: Bureau of Labor Statistics, Crane-Related Occupational Fatalities, Fact Sheet 2009 Take Special Care When Using Cranes, ENVIRONMENT, SAFETY & HEALTH SAFETY BULLETIN , U.S. Department of Energy,
November 1993; Maritime Crane Accidents Bring Calls for Better Training & Maintenance Programs, C. Daniel Negron, Inland Port Magazine, September/October 2010; Industrial Accident in Long Beach Proves Fatal for
Worker, September 25, 2010, Fatal occupational injuries by occupation and event or exposure, All U.S., 2010, Preliminary Annual Data from CFOI, U.S. Dept. of Labor, Bureau of Labor Statistics, August 25, 2011
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Mobile & Overhead Crane Accidents Can
Cause Serious Injury or Death
• Up to 45% of all mobile crane
accidents involve electrocution
• Other major causes of mobile
crane accidents are:
• 11% of these accidents are often
the direct result of negligence of
crane-related professionals or the
lack of adequate operator training
or experience
• Overhead Crane/Rigging accident
statistics kept close to the vest
Assembly or
dismantling
problems
Falls
Crushing by
counter
weight
Dropped
loads
Outrigger
use
Crane
overturns
Boom
buckling or
collapse
Rigging
failure
Source: Overhead Crane Accidents, Online Lawyer Source, 2001-2011
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Most Accidents Result from Human Error
and Crane Setup
• At least 50% of crane incidents
occur because the mobile crane
or outriggers are not set-up
properly
• Specific hazards that can cause
or contribute to failure or
collapse include:
– Failure to extend the
outriggers fully
– Not extending all outriggers
– Failure to get completely
"off-rubber"
– Not accounting for poor
ground conditions
– Failure to level the crane
Source: Mobile Crane Outriggers, SMO 07-0203, SeaBright Insurance Loss Control; International Union of
Operating Engineers (IUOE), National Urban Search and Rescue Response System Heavy Equipment & Rigging Specialist Training, October 2008
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It's not just lifting and material handling
workers who fall victim to crane accidents
• On average, nearly 80 lifting and material
handling equipment workers are killed
each year in crane-related accidents
• Many more workers are seriously
injured as a result of crane
accidents and collapses
• Bystanders and passersby are also
being injured and killed at an
alarming rate by crane accidents
• When an accident happens, everyone can
be held liable, including, but not limited to:
the company, property owners, insurance
companies, and the crane equipment
manufacturers involved in the project table.
• Let’s look at a couple of examples…
Source: July 2008 report on Crane-Related Occupational Fatalities published by the U.S. Department of Labor Bureau of Labor Statistics;
Crane Accidents, Schwartz Zweben LLP, A National Accident & Personal Injury Law Firm
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Accidents are Costly
• A tender vessel captain fractured his Cspine when he slipped on hydraulic fluid
from a deck crane that was leaking badly,
and which the owner would not repair
– A $1,200,000 verdict was reduced
to $550,000 …only because of a
pre-existing condition
• An accident victim who suffered crush
injuries when a crane he was dismantling
collapsed on top of him, resulting in
severe fractures and permanent injuries
– He was awarded $1,120,000
Source: Gorn v. Asp., Maritime injury captain, The Law Offices of Dennis Mestas, Alaska; Verdicts & Settlements - Catastrophic Injuries, Charlotte, NC Catastrophic Injury Lawsuits, Warren &
Kallianos, Personal Injury Attorneys
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Increased Litigation—Today’s Owners are
Under Siege
• Multiple issues threaten to reduce profitability:
high materials costs, terminated or delayed
projects, and less financing
• When the economy is at a low, owners
cannot easily look the other way or take
pennies on the dollar when they are not
fully compensated for their work
• Companies are facing liabilities in the
course of contract litigation that pose
bigger risks than ever before
• Because litigation can prove devastating
for all but those with the deepest of pockets,
owners need to prepare for battle to ensure
the most favorable outcome
Source: Damages Alone Results in USD 5.3 Million Jury..., Business Wire, February 3, 2006;
Contract Litigation: Why You Need to Gear Up for a Battle, By Kevin Martin, Construction Magazine, March 2011
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Regulations Have Changed Slowly Over
the Years… UNTIL NOW!
• OSHA’s crane and derrick standard had
been virtually unchanged, since its
promulgation in 1971
• In 2002, OSHA acknowledged that
industry consensus standards had been
updated, and crane technology had
changed considerably over three decades
• Today, the new crane law, OSHA 29CFR
1926 Subpart CC Crane Construction
Standard, which went into effect on
November 9, 2010, incorporates many
changes that affect employer
responsibilities…
– How will you ensure compliance?
Source: Cranes and Derricks in Construction Final Rule and Other Affected Subparts, August 9, 2010
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Case Study: Tragic Workplace Fatality
Could Have Been Prevented
• Crane operator moved the first rack
up and over employees who were
hanging parts on the second rack
• The crane clipped the rack stands,
causing the remaining rack to fall
• A temporary employee, Darryl
Johnson, was caught and crushed
under the weight of the rack,
resulting in his death
• RESULTS: Willful violation with
$245,000 in penalties
Source: Galvanizer Issued Big Fine After Crane Death, Hoist Magazine, April 8, 2010
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• As the industry has
changed over the years,
challenges have increased
relating to increased costs,
compliance requirements,
accidents and litigation
• Let’s look further into these
threats causing loss of
lives, time, production and
revenue and their
underlying causes
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Challenge #1:
Impact of Near Misses, Accidents,
Injuries and Death on a Business
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Lifting and Material Handling has
Increasingly become a Deadly Business
• Primary causes of all crane-related deaths
and injuries are:
– Crane collapses
– Overhead power line contacts
– Struck by crane load
– Struck by crane parts
– Other
• Inattention to detail, followed by deficiencies
in work organization and planning, is the
leading cause for crane incidents in nuclear
plant equipment accidents
– 74% of crane incidents, and 90% of
forklift incidents result in accidents
– In fact…50% of all hoist and rigging
incidents are associated with the use
of crane equipment
Crane-Related
Deaths & Injuries
23%
39%
11%
14%
14%
Crane Collapses
Overhead Power Line Contacts
Struck by Crane Load
Struck by Crane Parts
Other
Source: Understanding Crane Accident Failures: A report on the causes of death in crane-related accidents, Presented at 2010 Crane & Rigging Conference May 27, 2010;
A Survey of Crane Operating Experience at U.S. Nuclear Power Plants from 1968 through 2002, U.S. Nuclear Regulatory Commission, Office of Nuclear Regulatory Research
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What’s Causing so Many Deaths?
• 6 fatalities in 2005 and 8 in 2004 were
the result of multiple fatality incidents
involving cranes
• Of the crane-related fatalities in 2006:
– 42% were caused by being
struck by falling objects
– 13% of these fatalities were
due to the crane striking them
– 46% were killed when an object
the crane was transporting fell
from the crane onto them
• In 2008, 7% of the crane related deaths
were innocent bystanders
• Over 50% of U.S. crane accidents that
had injuries in 2009 resulted in fatalities
Source: Bureau of Labor Statistics, Crane-Related Occupational Fatalities, Fact Sheet 2009; Crane Accident Injury Claims, Personal Injury Compensation Claim 2010
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Incidents and Fatalities happen with all
Types of Cranes
• Types of cranes involved
in fatalities:
– Mobile Cranes
– Tower Cranes
– Floating or Barge Cranes
– Overhead Cranes
• 24% of crane related incidents
from unspecified types include:
– Floating or Barge Crane
– Overhead Crane
– Unspecified
Overhead Power Lines
Crane Collapses
Struck by boom/jib
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: Understanding Crane Accident Failures: A report on the causes of death in crane-related accidents Presented at 2010 Crane & Rigging Conference May 27, 2010
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Tragedy Points out Continuous Need for
Safety Standards
• Difficult conditions are faced by
offshore energy workers like working
12 hours a day in an atmosphere of
extremely combustible materials
while cranes are swinging heavy
equipment over their heads
• A crane was lifting a large piece of
equipment from the platform and
loading it to a work boat
• An apparent failure of the boom hoist
cable caused the crane to collapse
• A 20 year old employee was fatally
struck by the crane’s harness
Source: Worker killed in offshore crane accident near Galveston, Fulefix, August 18, 2011; The BP Spill: Has the Damage Been Exaggerated?, Time Magazine, July 29, 2010
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Accidents and Near Misses Cause Tremendous
Loss
• National Safety Council estimates the
cost of one lost-time accident at about
$27,000, with
• Money spent on just one lost time
accident could easily cover the cost of
providing comprehensive and ongoing
safety training programs for operators,
site managers and supervisors
• In just one year, in the U.S., the total
cost of accidents and near misses
including fatalities and non-fatal injuries
was $13 billion
– These statistics highlight the
importance of safety in the industry
Source: More training needed for crane operators-Crane operators don't have certification requirements, but hairdressers do. By Ronald J. Cowper, Seattle Daily Journal and DJC.com,
3/25/2004; Safety Improvement Approaches in Construction Industry: A Review and Future Directions, 47th ASC Annual International Conference Proceedings, 2011
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Challenge #2:
OSHA Regulations or
Investigations, Costs of
Compliance and Imposed Fines
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OSHA Backing Tough-Talk with Record
Levels of Enforcement
• “There is a new sheriff in town… Make
no mistake about it. The Department
of Labor is back in the enforcement
business.”
– Secretary of Labor, Hilda Solis
• The Occupational Safety and Health
Administration, which falls under the charge
of the Labor Department, has made good
on the Secretary’s promise by recording
unprecedented levels of enforcement
• Throughout 2010, substantial efforts were
made to redirect OSHA’s mission from one
of education and outreach to one of
enforcement and compliance
Source: Damages Alone Results in USD 5.3 Million Jury..., Business Wire, February 3, 2006; “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement”,
Nicoud Insurance Services 2010
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Crane Accidents are the Leading Cause of
Work-Related Fatalities
• Although construction workers
are only 8% of the workforce in
U.S., they accounted for more
than 22% of work-related
deaths every year
• Moreover, they are 71% more
likely to suffer from nonfatal
injuries, compared to all other
industries
• New regulations have been put
in place, due to the magnitude of
the problem… specifically that at
least 80 people a year die
from crane-related accidents
Source: OSHA’s Guidelines in Preventing Crane Accidents, Mesriani Law Group, HG Legal Directories.org citing OSHA study, NIH study and U.S. Labor Department survey, January 14, 2010
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OSHA Construction Regulations Demand
Compliance
- Effective November 8, 2010, employers must ensure that
all operators are competent to operate the equipment safely, and if they
do not have the required knowledge or ability they must be trained and
evaluated on that training before operating the equipment and by
November 10, 2014 they must be qualified or certified.
– Crane inspections now require a competent person
inspect each shift and monthly with monthly inspections being
documented – and that annual/comprehensive inspections be performed
by a qualified person
– Must be documented as qualified
– Must be qualified
– Must be supervised by a competent and
qualified person and must use manufacturer procedures or employer
procedures developed by a qualified person
– Prevent encroachment/electrocution
-----Source: Crane Inspection & Certification Bureau, OSHA 29CFR 1926.1400
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Serious about Enforcement
Dear Employer:
• The 2010 budget called for a 9.9%
increase in OSHA’s budget, funding
Last year, the Occupational Safety and
more than 100 new compliance officers Health Administration (OSHA) surveyed
employers to collect workplace injury
• The 2011 budget proposed hiring even
and illness data. The Agency used this
more, as well as shifting many of
data to identify the approximately
OSHA’s current compliance assistance 15,000 workplaces with the highest
Days Away from work, Restricted, or
employees into an enforcement role
Transferred (DART) rates; your
– $227 million was set aside in 2010
workplace was one of those identified.
This means workers in your
for enforcement programs
establishment are being injured at a
• OSHA has tripled its number of
higher rate than in most other
businesses in the country.…………….
“significant cases” (those involving
citations of $100,000 or more) in the
past year and is more frequently
imposing penalties of $1 million
March 2010, portion of OSHA ominous letter
or more
to approximately 15,000 U.S. employers who
had reported high rates of workplace injuries
Source: “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement”, Nicoud Insurance Services 2010
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Challenge #3
Equipment Damage, Failure,
Replacement Costs, Rental
Costs, and Project Delays
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The Recession has forced many businesses
into Survival Mode
• Investment in safety and overall riskmanagement has been scaled back
• Loss control personnel have been
laid-off
• Upgrades in aging equipment have
been delayed
• The recession has forced employers
to streamline payroll, and put more
responsibilities on those employees
that were not laid off
• Results: equipment damage, higher
maintenance costs, increased risk of
accidents, and wasted funds
Source: “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement”, Nicoud Insurance Services 2010
Crane Inspection & Certification Bureau, LLC - © 2011
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Equipment Replacement is Costly
• With increased regulations and
safety concerns, lack of
preventative maintenance can
lead to the need to replace
equipment costing businesses
$495,000 to almost $1 million for
each rough terrain crane, for
example
• Monthly crane rental rates can run
from about $4,000 for a small RT
to more than $150,000 for a large
crawler, eating away at the
company’s bottom line
Source: Machinery Trader, Cranes for Rent, Sandhills Publishing Company 2011
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Equipment Problems lead to Delayed
Projects
• The highest uncertainty in most
projects relate to time delays, and
costs in use of construction
equipment
• In addition to equipment problems,
or the need to rent equipment,
delays can include:
– Time and/or cost overrun
– Disputes
– Litigation
• Can any business afford delays as
a result of poorly maintained
equipment…, or worse, accidents?
Source: Offshore technology, Project Experience, Off Shore Wind and Energy.org, updated September 2008
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Challenge #4:
Increased Insurance Premiums
and Litigation, Legal Exposure
and Expenses Due to Deaths
or Serious Injuries
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Case Study: Violations Increase Insurance
• A manufacturer of low-priced modular
homes with 300 employees in Lexington,
MS, was recently cited with 40 safety and
health violations
• A few of the violations included:
– Failing to install guardrails along
open platforms
– Failing to train workers on
lockout/tagout procedures
– Failing to periodically inspect
crane and hoist chains
– No written hazard communication
program to address hazard training
• Cost: Over $60,000 in fines alone
• How does this affect the company’s
insurance?
Source: “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement”, Nicoud Insurance Services 2010
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The EMF Factor Impacts Insurance
Premiums
Contract Value Required to
• Insurance companies use a formula Sales orPay
for OSHA Fines
to determine annual premiums
or Indirect Claim Costs
that include:
OSHA Fine
2% Profit 10% Profit
– Annual wages paid
or Indirect
Margin
Margin
Claim
Cost
– Experience Modification Factor
(EMF)
$10,000
$500,000
$100,000
• The EMF weighs frequency of
claims, accidents and OSHA citations
• Workers’ compensation insurance
$50,000
$2,500,000
$500,000
costs are variable, and depend
greatly on the quality of your safety
management system
$70,000
$3,500,000
$700,000
Source: IS YOUR SAFETY PROGRAM SAVING YOU MONEY? By SeaBright Insurance Loss Control, 2008-2011
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Case Study: Accidents, Deaths Lead to
Litigation
• May 9, 2000: A project manager made the decision
to proceed with "raising“ a crane under
adverse conditions, with an unsupervised,
inexperienced, understaffed, and
under-equipped crew
• The crane collapsed, huge
balancing blocks came crashing
into the decking, and a yellow beam
about six feet long came crashing
down on a 28 year old construction
worker’s head, knocking him to the
ground 30 feet below and killing him
• 2006: Jury awarded damages totaling $5.3 million to the family
Source: Damages Alone Results in USD 5.3 Million Jury..., Business Wire, February 3, 2006
:
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Challenge #5:
Cost of Providing Safety Training
Due to Lack of Knowledge of the
Positive Benefits
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Lack of Training Costs More Than Tuition
• With looming dangers and
inevitable fines from lack of
well trained operators, inspectors,
and supervisors, it makes sense
for businesses to invest
in education
• In today’s economic environment,
businesses are operating in crisis
management, instead of
preventative planning
• Preventable repairs are costing
businesses between hundreds
of thousands to $2 million per
crane in the U.S. each year
Source: Austin Crane Accident Attorney Michael Grossman on Compensation for Austin Crane Accident Injuries, 2011
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Hidden Costs of Lack of Training
• Beyond the sobering statistics on
accidental deaths, there are the "routine"
crane accidents resulting in injuries and
damage to equipment and property
• These cause missed work days, rising
insurance rates, OSHA fines, litigation
costs, and lost business opportunities
• A 3-year study indicated that the injured in
the majority of crane accidents are not
crane operators but other workers, such
as ironworkers, riggers, and carpenters
• Accident investigations or legal
proceedings that follow can tie up the
contractor, the crane company,
management and the project owner
sometimes for years
Source: The Top Five Ways to Reduce Crane-Related Accidents by Kirk Ward, All Erection & Crane Rental 2011
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Safety Training of Operators Cannot Be
Over-Emphasized
• A small amusement park closed
while OSHA safety officials
investigated how a mobile crane
collapsed, injuring two workers
• While performing regularly scheduled
maintenance on a 165-foot-tall,
windmill-like ride, the crane and
part of the ride toppled
• Two park employees were left
dangling by safety harnesses
in the air… one suffered a badly
broken arm and leg
• RESULT: At least 4 months of lost
revenue to the park and lost income
to the employees
Source: Officials examine crane accident at California park, August 31, 2011, CBS News
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The Losses are often Much More than
Time and Money
• A 69 year crane operator died after
getting pinned by the crane near a
river gorge
• The crane was doing work on the
bridge over the river
• For three and a half hours, the
trapped man spoke with medical and
rescue personnel as they worked
• There was optimism he could be
saved after his upper body was
freed, but after the pressure of the
crane was taken off his lower body,
the shock of his injuries set in, and
he died on scene
Source: Fatal Crane Accident, August 30, 2011, Monroe County Fire Wire; OSHA Now at Scene of Fatal Crane Accident, Rochester Homepage
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SO –
What steps can a
business take to
reduce unnecessary
costs while protecting
employees and
improving production?
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Step #1:
Start with a Safety Analysis,
Risk Assessment Providing a
Snapshot of the Company
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An Ounce of Prevention…
• Crane and rigging operators are
responsible for thousands of
dollars in equipment and inventory
along with the lives of co-workers
• Since 90% of crane accidents
occur due to human error—
– Proper crane safety and
rigging safety training is
imperative in every workplace
which uses this equipment
• Are you investing too much, too
little, or too late in your crane
operation efforts?
Source: Crane Safety Training - Rigging to Protect Against Accidental Drops, by Charlie Bentson King, Workplace Safety Videos, Ezine Articles, December 26, 2010; Ensuring Reliability And Safety Of Your Process
Cranes, Maintenance Technology, March 2008
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An in-depth Safety Analysis and Risk
Assessment is an invaluable tool
• It’s widely known that investing
effectively in crane & rigging
operations can help reduce the risk
of safety and environmental
incidents, breakdowns, loss of
production and premature
equipment failure
• Unfortunately, what level of
investment is “optimal” is not
as well known
• There are various levels of
crane & rigging operations that
dictate what value, benefits and
return a company can expect on
their investment
Source: Ensuring Reliability And Safety Of Your Process Cranes, Maintenance Technology, March 2008
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Safety and Health add Value to your
Business, your Work and your Life
• Effective management of worker
safety and health protection is a
decisive factor in reducing the extent
and severity of work related injuries
and illnesses, and their related costs
• In fact… an effective safety training
program forms the basis of good
worker protection and can save time
and money—about $4 for every
dollar spent
– That’s an astounding 400%
return on investment
Source: Materials Handling and Storage, OSHA 2236, 2002 (Revised), U.S. Department of Labor
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Your Analysis Provides a Company Snapshot to
determine your Organizations Optimal Level
• Once analyzed, owners and managers
will have the information needed to not
only remediate risk factors, but also
demonstrate a measurable return on
investment
• Owners who aggressively apply principles
of safety management definitely see the
impact on schedules, quality, productivity
and costs
• In fact… active owner participation in the
preliminary and active operations results in
a three to five fold accident reduction
– This reduction of accidents and their
corresponding accident severity lowers
accident costs by as much as 8% of
direct labor payroll
Source: “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement, Nicoud Insurance Services 2010; Crane Safety Training for Engineers and Supervisors, Presented by the
Construction Institute of ASCE, Funded by an OSHA Susan Harwood Training Grant
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Step #2:
Frequent Training minimizes
accidents, improves employee
morale, increases productivity,
decreases maintenance costs, and
increases equipment reliability/life
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Step Up Training - Avoid Compliance Fines
• Employers that fail to meet OSHA training
requirements currently need to generate $125,000
in revenue to cover the
$5,000 fine, assuming the company
earns 4% of profit on revenue
• A major component of the new construction
rule for cranes and derricks is the requirement
for operator certification
– By November 10, 2014, crane and derrick
operators must be certified, qualified, or meet
the criteria for operator-in-training before they
are allowed to operate such equipment
• While certification only requires training every 5
years, “frequent training” makes an employee
more valuable to a company, saves money,
reduces accidents, extends equipment life
and avoids delays
Source: “There’s A New Sheriff in Town”: OSHA Backing Tough-Talk with Record Levels of Enforcement, Nicoud Insurance Services 2010
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OSHA 1926.1430 Requires Training for:
•
•
•
•
•
•
•
•
Overhead Powerlines
Signal Persons
Operators
Competent Persons
Qualified Persons
Crush/Pinch Points
Tag-out
And requires that the employer
must evaluate each employee
required to be trained to confirm
that that employee understands the
information provided in the training
Source: Certification Requirements for OSHA Equipment Operators, by Horacio Garcia, ehow Money 2011
50
Be Ahead of the Curve - Get Your People
Trained, Qualified and Certified
• There are four options for operator
certification
– Accredited testing agency
– Audited employer qualification program
– U.S. military
– government entity license
• CICB endorses and supports The National
Commission for the Certification of Crane
Operators (NCCCO) which introduced the
first certification program for crane
operators in 1995
• NCCCO Certification Programs are now
available for Mobile, Tower and Overhead
Crane Operators, Riggers, Signal Persons,
and Inspectors
“Crane Inspection & Certification Bureau fully
endorses the national certification program
offered by the National Commission for the
Certification of Crane Operators (NCCCO), and
will prepare candidates for the CCO
certification examinations.”
Source: New OSHA Cranes and Derricks in Construction rule was published in August 2010 and took effect in November 2010
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Step #3:
Routine Inspections Ensure
Equipment is Properly
Checked and Maintained
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Be Prepared and Proactive… Save time…
Save Lives… Save Money
• By implementing “each shift”,
“monthly” and
“annual/comprehensive” inspections
by trained competent and qualified
inspectors on crane and hoist
equipment, companies will
– Increase human safety providing
a safer and more productive
environment for their employees
– Reduce their exposure to accidents
and equipment failure
– Improve equipment reliability by
reducing safety related defects
by 60 to 95%
Source: OSHA Enforcement: Committed to Safe and Healthful Workplaces, , U.S. Department of Labor Occupational Safety and Health Administration; Why do I have to have my overhead
cranes and hoists inspected? Best Practices, Industrial Lift and Hoist, May-June 2008
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And OSHA Inspections are Taking Place on
a Constant Basis
• OSHA conducted 40,993 inspections in 2010
– This includes 164 significant
and egregious enforcement
actions, each resulting in
a total proposed monetary
penalty of more than $100,000
• In addition, OSHA conducted:
– 24,759 programmed
– 16,234 un-programmed inspections
• These inspections indicate that OSHA devoted
more resources to proactively target the industries
and employers that experienced the greatest
number of workplace injuries and illnesses
Source: OSHA Enforcement: Committed to Safe and Healthful Workplaces, , U.S. Department of Labor Occupational Safety and Health Administration
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Step #4:
Compliance with Current OSHA and
ANSI/ASME Standards through
Equipment and Operations
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Cranes Impact a Large Segment of Work
Going on at any Job Site
• Crane operation inspections by OSHA
Compliance Officers and Project Safety
Managers generally include a survey,
or walk around, of the entire operation
that questions how the crane will be
operating and how other crafts will be
effected by working with and around the
crane
• Observation of crane operations prior to
an inspection, or asking how cranes
have or will be used, can indicate
possible problem areas that may need a
closer review during the inspection
process
Source: Mobile Crane Inspection Guidelines for OSHA Compliance Officers, Occupational Health and Safety Administration, U.S. Department of Labor
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Follow Compliance Officers Guidelines to
Ensure Compliance and Safety
• Just as an airline pilot runs through
a daily checklist before take-off,
crane operators following a
checklist ensures properly working
equipment and a safe environment
for workers
• OSHA guidelines begin with an
initial survey of crane operations,
looking for crane stability, physical
obstructions to movement or
operation, and proximity of
electrical power lines, as well as…
Leveling
Outriggers
Stability
Structural Integrity
Source: Mobile Crane Inspection Guidelines for OSHA Compliance Officers, Occupational Health and Safety Administration, U.S. Department of Labor
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Create a Safety Plan with Clear
Instructions and Responsibilities
• Keeping equipment properly
maintained requires planning and
directives from owners
• The recommended plan should always
include specifics for:
• Inspection of hoisting and rigging
equipment prior to each use,
performed by a qualified and
competent person
• Defective equipment must always
be immediately repaired or removed
from the jobsite
Source: Crane Safety on Construction Sites, Presented by the Construction Institute of ASCE, Funded by an OSHA, Susan Harwood Training Grant
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Step #5:
Training and Record Keeping for
all involved in Lifting and
Material Handling Operations
and Inspections
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Document Every Inspection for Your
Records and for OSHA
• The following should be maintained for
compliance and safety:
– Records of the inspected cranes
maintained monthly on critical items
in use, such as brakes, crane
hooks, and ropes
– Include the date of inspection, the
signature of the person who
performed the inspection, and the
serial number, or other identifier
– This record should be kept
readily available for review
– Maintain the manufacturer's
maintenance and inspection
records, forms or checklists
Source: Mobile Crane Inspection Guidelines for OSHA Compliance Officers, Occupational Health and Safety Administration, U.S. Department of Labor
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Nearly every product today has a Warning
Label
• In fact, many products have multiple
warning labels, lights, and bells
– We even have warnings
telling us our coffee is hot!
• As a result, many people suffer
from warning overload and just
ignore the warnings…or
– Use Daily checklists!
• Ongoing training helps workers to
be aware of the common
misconceptions that will save your
equipment and may even save a life
• And, then-Source: Six dangerous misconceptions about crane safety: Knowing the facts could save your life, The Fabricator, July 2003
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Heed Warnings and Document Training
• Compliance, training and injury prevention
are now a major priority for businesses
• Training is the weak link for many
employers
– Training helps owners, managers
and employees recognize and
prevent accidents
– Frequent, continuous, collaborative
and engaging employee training
keeps those involved sharp thereby
reducing the likelihood of incidents
• Maintaining accurate training records will
help owner’s stay on top of the need for
continuous training while creating an
atmosphere of production and safety
Source: Developing Effective Workplace Safety Programs – Part 1, Risk Management, 2011; Federal Register: August 9, 2010 (Volume 75, Number 152, 8/9/2010, Department of Labor, ORA; IMIS
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To Stay on Top of Your Industry, Everyone
Needs Training
• Due to the high risk of crane operation,
more employers have started to invest in
better crane accident education programs
for managers, supervisors, operators,
riggers, signalpersons, etc.
• Putting a person with inadequate training
behind the controls of any equipment can
put an entire company at risk
• Properly designed crane operation
programs teach personnel the rules of
safe lifting and the dangers of improper
planning and operations
Source: Crane Accidents – Who is Responsible? by Chris N. Jackson, Personal Injury Attorney, August 16, 2010, Ezine Articles
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Summary of Challenges and Solutions
Five Critical Challenges Facing Every Owner and Manager in the Construction Industry
and Solutions to Meet These Challenges
Challenges
Solutions
Impact of Near Misses, Accidents, Injuries, and Deaths
Compliance with OSHA and ANSI/ASME Standards,
Proper and Frequent Inspection and Robust Training
Reduce Number of Incidents Significantly.
OSHA Regulations, Investigations, Compliance Costs, and
Imposed Fines
A Safety Analysis/Risk Assessment provides a snapshot
of a company to determine if policies and procedures
need improvement to avoid these costs.
Equipment Damage, Failure, Replacement Costs, Rental
Costs, Lost Time, & Project Delays
Routine Inspections by properly trained inspectors and
operators ensure equipment is properly checked and
maintained for more reliability, increased life and fewer
incidents.
Increased Insurance Premiums and Litigation, Legal
Exposure, and Expenses due to Deaths or Serious
Injuries
Providing proper policies , procedures and training,
which include contractor and crane rental provider
requirements, will result in lower incident rates.
Cost of Providing Safety Training, due to a lack of
understanding of the positive benefits of offsetting
training costs and ROI
Investing in Training for operators, inspectors and
supervisors for the purpose of reducing accidents is also
an investment in ensuring projects are completed on
time and under budget.
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Before We “WRAP-UP”
1. Are your policies and procedures over and above what
OSHA and ANSI/ASME require?
2. Do you know who is responsible for each lift?
3. Do you know what to look for during a crane/rigging
inspection?
4. Do you know how to tell if your operator is doing the math
for load chart interpretations versus his/her using the LMI?
5. Did you know that a mobile crane, which is 3% out of level,
can lose 50% of its lifting capacity?
6. How often is your refresher training scheduled?
7. Are your managers and supervisors trained?
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If You Need Help - Look for the Most
Experienced Trainers
• Seek a company with quality instructors
formally trained in adult learning principles
dedicated to train based on YOUR needs
• In today’s atmosphere, look for a company
that is accredited by the U.S. Dept. of
Labor and OSHA to perform maritime
inspections (they are the most stringent)
• Your business and employees also deserve
a training company that practices
“Total Customized Service”, one that
emphasizes hands-on equipment and
rigging training and
– Provides on site training utilizing
your equipment, or
– That has multiple training centers with
numerous cranes and rigging gear
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Hands-on Experience to Understand your
Business and Needs
• The best partner for training would be one with trainers and
consultants experienced as operators, inspectors, managers,
instructors, and expert witnesses in material handling, lifting
equipment, craning and earthmoving equipment
• Look for a knowledgeable, non-high pressure, sales team that is
with you as a consultant
• Your business training should result in:
– Lower risks
– Fewer incidents/injuries
– Lower maintenance cost and longer life of equipment
– Decreased cost due to absenteeism and more
positive employees
– Lower insurance rates
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Thanks for the Opportunity to Share this
Research with You • Our hope is that this presentation gave
you some tips that will help you have well
trained crane operations personnel saving money, equipment, lives and
downtime
• And, that when you choose to be
proactive in complying with the newest
regulations, you know what to look for in a
provider
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Safer Operations
Improved Equipment Reliability
Guaranteed Results
www.cicb.com
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