Buyers see potential and controversy with nanotechnology
Chemical buyers strive to catch up with latest developments in nanotechnology.
By Rich Weissman -- Purchasing, 4/9/2009 2:00:00 AM
While buyer participation in the expanding nanotechnology industry may be limited to the stain resistant chinos they are wearing or the specialty tennis racket in the gym bags under their desks, it's clearly a part of the chemicals supply market buyers needed to be educating themselves on. While they are likely buying products that use nano materials, buyers may be unaware of their function or the controversy that surrounds the technology.
The science of nanotechnology, sometimes called molecular manufacturing, focuses on the design and manufacture of small electronic circuits and mechanical devices at the atomic or molecular level. For reference, a nanometer is one billionth of a meter, or about 1/80,000th of the size of a human hair. Current work is focused around nanoparticles, nanotubes, nanorings, nanocomposites and nanowires. Some market experts say the potential applications are nearly limitless, but limited industry collaboration, uncertain markets, poor government and industry relationships, and potential health and safety issues weigh heavily on the field of nanotechnology.
Yet, what some may look at as science fiction is already part of the mainstream of materials and products buyers purchase and use today. The manufacture of computer chips and semiconductors has utilized nanotechnology for decades. Consumer products utilizing nanotechnology include cosmetics, sporting goods, clothing and automotive and medical products. According to the University of Massachusetts' Nanomanufacturing Center, nanoproducts are likely to fuel the next economic boom by making products more useful, cost effective, and durable through the incorporation of nanoelements that are biocompatible, low-cost, and environmentally benign.
"Nanotechnology is really expanding and it will be a $1 trillion industry by 2015," says Colin Finan, public affairs and policy associate for the Washington-based Project on Emerging Nanotechnologies, part of the Woodrow Wilson International Center for Scholars. "There are currently 800 consumer products that incorporate nanotechnology." The Project on Emerging Nanotechnologies collaborates with researchers, government, industry, policymakers, and others, to identify gaps in knowledge and regulatory processes, and to develop strategies for closing them. They also work on commercialization of the technology. "We want to minimize the risks and look for maximum benefits," says Finan.
Commercial pursuits
One of the most common uses of nanotechnology is in skin care. Pat Aikens, the technical services manager for sunscreen and skin care products at the Florham Park, N.J. office for chemical giant BASF works with sales and technical teams to offer nano-based zinc oxide and titanium dioxide to cosmetic companies. These nano particles are highly transparent and allow the cosmetics to prevent sunburn. And according to Aikens, "BASF's nano business is growing."
As a producer of nanotechnology products, BASF is committed to the safety of its products. The company assesses its products according to current chemical legislation and also to determine if exposure to nanoparticles is possible during production, processing, or for the end consumer. If it is, BASF performs special toxicology studies. BASF says when nanomaterials are used as intended, none of its products present any hazard to health or to the environment.
"BASF has an extensive research and development team to create an increasing amount of nanotechnology-based products and materials for our customers," says Aiken. "We also work closely with our customers to understand their requirements and develop new products to support them." Aiken says that this cooperation takes place away from the purchasing organization. "We work with a customer's R&D organization for product development and once the materials are specified the buyers take over to handle procurement."
Nanotension
"Not all public perceptions of nanotechnology are good and there is a strong public policy debate going on," says Finan, whose organization tracks these products on his association's web site. Many of the companies and products are household names. AMD uses nanotechnology in its microprocessors. Additionally, JC Penney uses nanotechnology in its bed sheets, Behr in its paint, and Pentel in its writing instruments. Still, some are addressing the risk of nanomaterials, especially carbon nanotubes, a common form of the technology. Both the U.S. Environmental Protection Agency and the U.S. Food and Drug Administration have nanomaterials squarely on their radar screen.
Finan adds that a lot of companies are unwilling to disclose that they have nanomaterials in their products and are worried a bit about public perception. "While the term 'nano' was once a buzzword about the technology it is now a buzzword about risk," he says.
According to Jack Solomon, steering committee chair of the Chemical Vision 2020 Technology Partnership, a collaborative between industry, national laboratories, and academia to leverage financial resources and technical expertise, there is significant stakeholder tension surrounding nanotechnology. "A lot of development is secret and proprietary and it is uncertain which company has competitive advantage," says Solomon. "Those who develop the nanomaterials often patent it to keep it secure and then it takes a while to figure out what has value for the market."
Vision 2020 conducted recently a chemical industry study on the environmental, safety and health impacts of nanotechnology including participants from the manufacturing, governmental and research worlds. The research identified five environmental health and safety-related needs in nanotechnology: testing strategy for assessing toxicity, metrics for assessing particle toxicity, exposure monitoring methodologies, risk assessment methodology, and communication and education concerning ESH and societal impacts.
The supply chain's role
There is hope in generating greater supply chain management involvement as nanotechnology moves from the lab into manufacturing. "The value-chains linking developers to end users are focused more on the potential and implied benefits nanotech products can add to the radical improvement and enhancement of macro-scale products and systems," says Manish Mehta, executive director for industry forums and technologies research at the National Center for Manufacturing Sciences (NCMS) in Ann Arbor, Mich.
"NCMS feels the need for purposeful end-user supplier partnering and co-creation is more important than ever, and perhaps, even an imperative survival strategy for smaller nanotech providers," says Mehta. For example, the U.S. Department of Transportation sponsored a recent project called Nanoparticles for Diesel Additives, which organized end users, test labs, and nanomaterial suppliers to evaluate the impact of improvements in diesel engine performance and emissions. In another project, the U.S. Department of Energy sponsored collaborative fuel cell projects using nano and micro-scale powers to create the commercialization of new fuel cells for defense and recreational markets.
There is certain to be more active purchasing involvement in nanotechnology as the science goes mainstream. Until then, those nanomaterials may be hidden in a material specification document or MSDS sheets, with buyers unaware of the technology, and ongoing controversy.
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