An MTR is a certifiable document that communicates critical data for raw materials, such as steel and other metal alloys.
The document certifies the material’s compliance with contract and regulatory standards required for an application. The MTR is generally supplied by the material manufacturer and will follow the material throughout the supply chain. An MTR is an important document that ensures materials used in a specific application can handle the requirements of use.
What information is in an MTR?
An MTR will contain several easily identifiable characteristics of a material and many that are not so easily identifiable. Easily identifiable information includes the material’s general size and shape. Other details include heat number, material weight, classification, and grade. The Heat number is particularly important. It provides a way to trace the material back to initial production units and the process conditions during fabrication.
An MTR also includes detailed mechanical properties and chemical analysis. Chemical analysis refers to specific levels of each element aligned with the tolerances set for the material’s grade and use. Mechanical properties refer to the physical properties of a material and how they satisfy the standards set by regulatory bodies and international standards organizations.
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.
Below is a sample Material Test Report template, often called a mill test report or material test report. This guide on how to read important MTR documents includes an explanation of each relevant field. Manufacturers, inspectors, and customers should be able to easily identify and understand these fields. This will ensure the validity and conformity of materials and their proper application.
Sample MTR
Sample MTR Fields
The sample MTR contains eight (8) main fields. Read more about each field below.
#1 – Material Heat Number
A material heat number is the main method of traceability for a given material. When comparing an MTR with raw materials, the corresponding heat number must be matched. This includes accompanying paperwork and marking on the surface of the material itself.
#2 – Material Grade (not pictured)
The material grade classifies various metals by their composition and physical properties. In the sample MTR, we can see that the material is 316/316L stainless steel.
#3 – Product Specifications Met
Product specifications refer to the ASTM and ASME standards applied to a given material. For example, metals used in pressure and vacuum applications have to meet specific product specifications. ASTM standards have a prefix including the letter “A”. Standards from the ASME have a “SA” prefix.
#4 – Material Dimensions
A material’s size and dimensions will be included on an MTR and displayed as material dimensions. This will change depending on the raw material. For example, metal plates are measured in thickness, while pipes are measured in diameter. In the sample MTR, the material is plate and labeled by thickness, width, weight, and length.
#5 – Mechanical Properties
Mechanical properties are specific tolerances a material has when used in specific applications. If a material falls within the outlined tolerances, it can be used. If the specification extends beyond those tolerances, it cannot.
#6 – Chemical Analysis
Chemical Analysis, like mechanical properties, refers to a specific chemical makeup that certifies a material can be used for a given application without risk of failure.
#7 – Heat Treatment (not pictured)
Heat treatment refers to a specific process of heating or cooling, usually to extreme temperatures, a material undergoes. The reviewer will identify all processes in the product specification and confirm details are accurate. In the sample MTR, the solution has a minimum arrival temp of 1900F and was water quenched.
#8 – Certified Mill Signature
The certified mill signature is provided by the responsible employee at the source mill. The employee signs to certify that the information is accurate.
MTR FAQ
Want more information on MTRs? Please visit the Encompass Solutions MTR FAQ page.
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.
An MTR is an industry-standard document that asserts all the characteristics of steel and alloy materials. It confirms the material meets regulatory standards for its many different grades, tolerances, and purposes. So, why is an MTR important? MTRs allow recipients to properly store the material to ensure quality is maintained most appropriately. The MTR also provides traceability that manufacturers, inspectors, distributors, and customers need for reference. This traceability goes back to its raw or recycled source materials. From the forge to the final destination, an MTR is used throughout the supply chain.
A Day In The Life Of An MTR
So, let’s say I work at a mill. My colleagues and I have sweated and bled through the process of creating a beautiful steel plate or pipe for you. It’s been forged, tested, and certified to meet or exceed all regulatory standards, as well as your project or order specifications.
The day it arrives on-site at your facility is joyous and the team comes together in celebration to welcome the inventory’s newest addition. Here’s where the MTR comes in. First, you need to confirm you got what you paid for. The MTR is your certified document that this is the case.
The problem with getting a new plate or pipe to add to your inventory is that it kind of looks like all the other plates and pipes in your inventory. Sure, within a few days of receipt you might be able to point it out and recollect the BOM it belongs to, its specific heat, chemical, and impact properties. However, as weeks and months may go by, its luster may dim, and your reference as to its specific qualities and characteristics alongside it.
Let’s face it, it’s nearly impossible to visually identify the differences in grades of steel for even the most seasoned metal fabrication veterans. The MTR is your certified record of all these details and more. It helps categorize, store, and dispatch materials when you need them. Without it, determining the materials’ exact specifications is exceedingly difficult. Getting the right materials out to customers, even more so. Now, you may be asking yourself, “how does a manufacturer or distributor keep track of all their MTRs?” in short, Encompass built a solution.
The MTR Solution
For many manufacturers and distributors, inventory from mills all over the world can fill warehouses throughout the operation. There it will patiently wait until called upon for any specific order or project. In that time, your MTR library is going to grow into a substantial catalog. Encompass has customers with more than 40,000 MTRs at their facilities. So, how do you keep track of it all?
In short, most people have a very hard time managing and interacting with their MTR catalog. Document management involves a lot of legwork. Whether your shop floor or sales force needs the info, keeping your MTRs in order can be a full-time job. Tracking it down MTRs, confirming the validity, and offering records involve enough back and forth to make your head spin. Keep in mind, that after a transaction has taken place records will be referenced for many years. Fortunately, purpose-built software can manage these records and help route them where and when appropriate. All this can be done within the confines of your well-ordered and secure ERP system. The tool even helps maintain your historical records in case you need to reference them years down the line.
For more information and answers to frequently asked questions on the subject of Material Test Reports, visit our MTR FAQ.
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.
On Monday it was announced that a U.S. Steel and United Steelworkers Union deal has been reached as a “tentative agreement”. The consensus has helped to avoid a steelworker strike that would involve more than 14,000 steelworkers in tubular operations, domestic flat-rolled steel, and ore mining facilities throughout the eastern United States.
Steelworker Strike Update
Details of the agreement are under wraps while the proposed four-year contract is still under reviewed.
U.S. Steel President and CEO David Burritt released a written statement in which he described the agreement as “fair and in the best long-term interests” as it pertains to U.S. Steel’s and its employees’ futures. Burritt’s stamen goes on to say “Together, we’ve agreed on terms that will create certainty and stability for our many stakeholders, enable our company to implement our long-term business strategy, which includes continued, responsible investments in our people and plants, and position U.S. Steel to remain a leader in the highly competitive global steel industry.”
According to USW Local 1899 vice president Jason Fernandez, Local presidents are returning from negotiations in Pittsburgh and will take time to deliberate with union members on the best course of action. The eventual voting process will be planned to accommodate workers schedules, so it may take up to a week before a decision is made regarding whether to accept U.S. Steel’s proposed contracts or not.
Steelworker Strike Background
Negotiations have been taking place since July, leading up to the September 1st expiration date of worker contracts. Things became heated when it seemed clear that U.S. Steel would not make good on a pay raise that workers had done without over the course of three years in the interest of the company’s future. As company profits reached into the billions over the last three years, workers grew incensed that upper management showed no signs of reciprocation for the hit workers took during the last round of contract negotiations. A steelworker strike was authorized by unions across the eastern US, but never fully enacted.
ArcelorMittal, the largest steelmaker in the US, remains in talks with the USW over contract negotiations and a strike is still possible for the company’s near 16,000 steelworkers.
Steelworker Strike Effects On 2016 Midterm Elections
It has been speculated that the turmoil in the US steel industry will have a significant effect on the outcome of the midterm elections.
While president trump has imposed tariffs on aluminum and steel imports as an effort to drive demand to U.S. producers, not everyone has enjoyed the renewed activity. Jeff Astle, an employee of Universal Stainless and president of Local USW 9531, asserts the contract recently signed by his chapter to be the best he’s seen in 23 years. When asked about what’s changed, he stated, “There was once upon a time I was only working 40 hours a week, barely, but now business is thriving – we are working so many hours it’s not even funny.”
While that may be the case for a veteran of the industry, low-level workers lament that record profits of steel producers, like U.S. Steel and ArcelorMittal, have failed to trickle down. These workers represent a substantial voting bloc for the incumbent and the Republican party. Without the support of these steelworkers, an air of uncertainty hangs looms as the November elections draw near. Talks of walkouts are circling and more than 31,000 steelworkers have granted union negotiators the power to activate a strike that would affect the country’s two largest producers, U.S. Steel and ArcelorMittal. The two companies account for nearly half of all steel produced in the United States.
Material handler at Universal Stainless Henry Polite finds himself between a rock and a hard place, stating “I’m proud to be a steelworker, but I would just like to see more concern for the underdog [the workers], than just the higher-ups.”
The United Steel Workers Union summed up the sentiments of neglected workers in a statement that alleges, “Top company officials have given themselves more than $50 million in pay and bonuses since 2015 while the hourly workforce has not received a wage increase over the same period.”
When it comes to how these resentments could manifest at the polls, Soren Fanning, a history professor at Robert Morris University, alluded to 2016, when the presidential election was all but sold as, ‘we are bringing the steel industry back to Western Pennsylvania, back to America,’. Trump won by fewer than 80,000 votes in the region. Fanning suggests that “People vote their frustrations [And] right now what you’re seeing amongst steelworkers is a real sense of urgency that these promises of better conditions, more purchasing power, more health care get fulfilled and, if they don’t, they are going to go with the party of change.”
Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.
USW negotiations continue as representatives report that progress had been made in the latest round of contract bargaining with US Steel. Negotiations between the two entities will continue and a strike will be avoided provided that gaps in asks from union members can be filled in a reasonable timeframe.
Currently, US Steel proposes an additional $145 healthcare premium per month to be used toward healthcare and dental coverage. Representatives for the USW negotiations calculated the lifetime cost to workers over the term of the agreement would total $10,440. The number would eat up the proposed wage increases from the USW and effectively put workers back at square one.
Key issues that remain to be resolved include health and dental costs, incentive pay, supplemental unemployment benefits, and disagreement on the use of a Voluntary Employees Beneficiary Association fund.
Following this week’s announcement that US Steel workers voted in favor of strike approval, ArcelorMittal steelworkers across the region have mobilized in preparation for a strike authorization vote of their own. The vote will take place next week on Monday.
Members will meet with USW leaders at the meetings, where they will receive updates on the expected bargaining process, a rundown on strike rules, review benefits afforded to members during a strike, and, if deemed necessary, pursue strike authorization. A recently released update included the statement, “If significant progress is not made by early next week, we will return home to deliver detailed reports at membership meetings and seek your support for a strike authorization.”
If the strike is approved, the United Steel Workers Union members at ArcelorMittal locations throughout the United States could join US Steel steelworkers in a complete work stoppage in the event contract negotiations fall apart. USW officials and steel companies have been in contract negotiations for months leading up to the workers’ September 1st contract expiration date.
ArcelorMittal Steelworkers Unsatisfied With Proposed Terms
ArcelorMittal has earned the ire of steelworkers, who have not received a pay raise in three years, for proposing concessions that include hits to supplemental unemployment, incentive, vacation pay, hot-rolled steel bonuses, and health care. Union representatives communicated that these concessions could result in as much as an additional $8,000 per year in out-of-pocket health costs for the affected families.
US Steel released its update on Wednesday of this week, saying, “We have submitted a revised proposal to USW leadership that reflects the ongoing dialogue during our most recent round of negotiations. The revised six-year proposal, which we strongly believe is in the best long-term interest of all U.S. Steel stakeholders, includes a 14% base wage increase over the term of the agreement, guaranteed profit sharing, and healthcare premiums offset with transition payments.”
Currently, U.S. Steel, ArcelorMittal, and workers are operating under contract extensions.
Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider, and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.
The whole situation is rooted in a decision made three years ago, when U.S. Steel was on the verge of bankruptcy. Workers conceded to a wage freeze and reduced work hours in the hopes that the company would rebound from dire straits. In short, it did. U.S. Steel is now expecting profits to exceed $2bn, the highest in 10 years.
According to a union spokesperson, “Angry USW members conducted strike authorization meetings at each U.S. Steel local over the past week.”
United Steelworkers’ Unrest
Among the chief complaints from steelworkers is having undergone three years of work without pay increases, which comes at a time when US Steelmakers are reaping significant gains. For perspective, hot-rolled coil steel is currently selling for $900 a ton, according to the metal pricing website SteelBenchmarker. To put that into perspective, steel prices have more than doubled from the low of $412 on Dec. 14, 2015. Roughly the same three-year period in which workers state they have not experienced a pay increase.
To add insult to injury, USW claims that CEO David Burritt and U.S. Steel upper-management have endowed themselves with more than $40 million in compensation since 2015.
Proposed Changes To United Steel Workers’ Contracts
After three years with no pay increases, the USW is coming to the negotiating table seeking raises. However, the Pittsburgh-based steelmaker is looking for concessions that include more out-of-pocket health care costs, reduced retiree benefits, and a commitment to no raises in the latter half of a proposed six-year contract.
According to US Steel, the contract includes a $4,000 signing bonus, at least $6,000 in profit-sharing, and wage increases over the first 3 years of the 6-year contract. On top of the proposed terms, US Steel says that employees will gain $0.15 per hour towards their 401(k) retirement plans.
According to a statement issued by the USW, “Our committee will be returning to Pittsburgh next week to resume negotiations with U.S. Steel management to reach an honest and fair settlement. As you know, management’s proposals so far have been completely unacceptable, particularly in light of the company’s projected profit this year of nearly $2 billion. We will be sure to keep all members informed of any progress we make at the table next week and of whatever next steps we anticipate.”
Consequences Of A United Steelworkers Strike
The consequences of a USW strike, at least on the US manufacturer, will depend on the size and scale of operations and whether or not a manufacturer has a stockpile of materials to work with. Make-to-order manufacturers will be at the highest risk of disruption and may find fulfillment increasingly difficult if the supply of raw materials is cut abruptly. when it comes to manufacturers who are not a level-one priority for raw steel, the result is having to choose to cut production or pay the import fees on steel from outside the US and pass the cost on to their customers. If the latter is the case, those manufacturers run the risk of losing customers as a result of higher prices for their manufactured goods. On the customer-facing end, higher steel prices may be on the horizon.
US Steel And The United Steelworkers Strike Of 1986
U.S. Steel was involved in a strike/lockout situation more than 30 years ago in 1986. During this work stoppage, about 22,000 steelworkers brought about the longest steel industry work stoppage in US history. The strike/lockout lasted from August 1, 1986, to January 31, 1987.
The effects included disrupting deliveries and expensive and unplanned plant-idling operations. To continue running at a diminished capacity, management-level employees began loading trucks and trains with previously-produced steel kept in inventory themselves and shipping it to customers. The result was violent clashes between management with striking workers.
USW Facts
USW forms the largest industrial labor union in North America with 860,294 members. Their current rate of dues is equal to 1.45% of total earnings, plus $.02 per hour. This tops out at a maximum of 2.8 the average steelworker’s hourly rate, plus $.02 per hour. Minimum dues are $5.00 per month.
Relevant US Steel, US Steel Steelworkers, And USW Union Salary Information
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.
New metal tariffs on foreign materials are likely going to affect industries that employ millions of Americans. Beverage and robotics manufacturing are just two of the affected industries, but these two will be among the segment most heavily affected by the new tariffs on imported building materials. The metal tariffs recommended by the U.S. Commerce Department apply to aluminum and steel imported to the US from abroad. The tariffs reach as high as 53%, which could pose a big problem for industries relying on these essential metals for manufacturing purposes.
New tariffs on foreign materials are likely going to affect industries that employ millions of Americans.
The proposed metal tariffs were submitted by Commerce Secretary Wilbur Ross, effectively giving the president three options to choose from as per Ross’ recommendations. The first option is the broadest and most sweeping, in which Ross recommends the president impose tariffs of 24% on all steel and 7.7% on aluminum imports from all countries. The second is far more specific in whose imports are tariffed the hardest, with Ross’ recommended tariffs of 53% on steel imports from 12 countries, including China, Brazil, and Russia, and tariffs of 23.6% on aluminum imports from China, Hong Kong, Russia, Venezuela, and Vietnam. Ross has gone so far as to supplement these tariffs alongside quotas. Finally, the third option Ross has laid out will impose a quota on steel and aluminum imports from all regions, which will limit countries to 63% of the steel and 86.7% of the aluminum that each had shipped to the United States last year.
The Fear Following Metal Tariffs
While it is surmised that these metal tariffs will prompt a reinvestment into the US metals manufacturing sector, some experts believe the shift could earn the ire of many US trading partners. What if, as some economics and trade experts argue, China decides to place tariffs on US semiconductors or India on food imports from the US? Retaliation is the biggest fear according to these specialists beyond the notion that the tariffs will upset the current climate of international trade. Not to mention, most of the US metals importuning comes from valued trading partners and allies not targeted specifically by Ross’ proposed tariffs, like Canada.
US Metal Manufacturing
In the last 18 years, nearly the same number of aluminum smelters have closed their facility doors in the US. Currently, there are only two aluminum smelters running at capacity, with three others in the US operating at partial capacity. On the other hand, steel has enjoyed a bit of a bounce back. Market leaders in metals, like Alcoa and Nucor, are optimistic at the possible shit as it will likely inject US metals manufacturing with some desperately needed vigor. Share prices of US steel and aluminum smelters have surged following the announcement of the proposed tariffs. However, the rally may be premature if the president decides to explore an alternative route in addressing the undermining of domestic metals production.
Nevertheless, Alcoa has announced plans to restart a smelter in southern Indiana by mid-2018. Southeast Missouri may find one if its dormant smelters resurrected, pending negotiations of an electrical supply contract with local utility company Ameren Missouri. While the news for metals manufacturers leaves room for optimism, the state of metals manufacturing has been sorely outpaced by producers like China, which operate many modern facilities that make the processes cost effective. Without significant modernization efforts on top of the revitalization of metals manufacturing in the US, the long-term efficacy of these efforts remains to be seen.
The State Of US Robotics In The Face Of Metal Tariffs
When it comes to the robotics manufacturing industry, the US is a global leader in the field. Innovating creations in every sector from defense and medical applications to the automated manufacturing of confections, the state of robotics has never been more fruitful for the US. However, robotics is an industry that relies heavily on the supply of steel and aluminum as the two metals make up the bulk of manufacturing materials in building robots and robotic components.
The tariffs could significantly increase the costs of innovation at while production gains momentum among competitors abroad. Elsewhere in the world, US competitors in robotics will likely continue to make headway and possibly outpace the US manufacturers forced to adapt to a much different landscape when it comes to materials availability. The imposing of tariffs could additionally upset last year’s optimistic forecast that the metal fabrication robotics market is set to grow at a compound annual growth rate (CAGR) of 18.5% over the next three years.
How Brewers And Canners Are Affected By Metal Tariffs
Breweries and canned food companies are two more industries that are expected to be affected by the move, as they rely heavily on imported metals for the packaging of their products. The resulting tariffs, if accepted will not only raise the prices of canned goods but could significantly increase the cost of beer should breweries decide to abandon canning altogether and go to the bottle.
The two different packaging systems require entirely different mechanical apparatuses, which cost tens if not hundreds of thousands of dollars to implement operate and maintain for brewers. The result is a more costly six-pack, despite what the container is made of.
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.
