August 2007 Edition

NEWS

Industry News

Walter Achieves Perfect Safety Score

A perfect score of 93 won Walter USA, Waukesha, WI, the Sandvik Highly Protected Risk Award. The Walter facility was one of two installations to win the award worldwide in the FM Global audit, which examines risk control, emergency preparedness, emergency response plans, safety/health programs, and overall housekeeping.

Walter was certified in August 2006, as conforming to ISO 14001:2004 Environmental Management System by a DQS auditor from Chicago, IL, and continues improving its environmental program and commitment to the safety of employees in the manufacturing area by monitoring its environment, testing air quality, checking noise levels, and reducing machine emissions.

Safety suggestion boxes were placed throughout the plant. Three employees were trained as first responders, and were equipped to respond to health or safety emergencies.

Machine Tool Delinquency Rate at All-Time Low

The May figures for the Agie Charmilles Machining Business Activity Index machine tool delinquency rate hit an all-time low for the second consecutive month. The rate is about a third of the home mortgage delinquency rate and compares favorably with other debt rates.

The index decreased to 62 in May from 67 in April. The index is created by surveying machine tool-users concerning their current business level versus three months earlier, in this case, February 2007.

Any reading above 50 indicates that business activity has improved. The index was inaugurated in October 2004.

Business activity was strongest in stamping die in the south region. In May, the 30-day delinquency rate on machine tool leases reached its lowest level, approaching one percent, much lower than the 4.37 percent rate for credit card debt as measured by the Moody Credit Card Index. It was also lower than the 4.95 percent home mortgage delinquency rate reported by the Mortgage Bankers Association.

The Agie Charmilles/US Bancorp Equipment Finances Machining Industry Financial Strength Index was 555 in May versus 526 in April 2007, previously the best reading on record; 313 in May 2006 and 55 in January 2002, the worst reading on record.

Any reading above 100 indicates that USBEF’s machine tool lease payment delinquencies – a measure of machine tools users’ liquidity and consistent profitability – are at a rate below the average rate of 1990 to 1999. As profitability rises liquidity rises, delinquencies fall and the index rises.

The approximately 126,000 U.S. companies that use machine tools have about 2 million machine tools and employ 750,000 to 1 million workers in directly-related occupations, such as toolmakers, machinists, operators, and programmers.

Almost all mid-size to large manufacturing companies use, and periodically purchase or lease, machine tools, so these indices are a measure of the health of U.S. manufacturing. The Machining Business Activity Index is a coincident indicator of this key manufacturing sector. The Financial Strength lags business activity and leads capital investment.

3M Acquires Diamond Products

3M, St. Paul, MN, acquired Diamond Productions Inc., a manufacturer of superabrasive diamond and cubic boron nitride – CBN – wheels and tools for dimensioning and finishing hard-to-grind materials in metalworking, woodworking, and stone fabrication. Terms of the transaction were not disclosed. DPI is located in Wayne, NJ, and employs about 50 people.

Texas College Wins Machining Certification

South Texas College, Hidalgo and Starr counties, TX, is the first college in Texas to earn the National Institute of Metalworking Skills Accreditation for its Precision Manufacturing Technology Program. The accreditation means that STC has met and exceeded national metalworking industry standards for quality of instruction, incorporation of important, high-level industry skills, and overall safety.

The accreditation process included an on-site audit by a three-person team from NIMS, during which they interviewed personnel at all levels of the program and the college, observed course instruction, inspected the facility and equipment, and analyzed the safety practices of the college. Each program instructor was required to earn NIMS credentials for the specific courses they instruct and program students must have earned and continue to earn NIMS credentials in the modules they are taking.

First Quarter 2007 Workholding Sales Up from 2006

First quarter 2007 shipments of workholding equipment for the U.S. – $61 million – were up 6.5 percent from first quarter 2006, according to the Workholding Product Group of the Association for Manufacturing Technology – AMT. Workholding equipment shipments within the U.S. by the 38 companies participating in the Workholding Product Group – WPG – statistical report totaled $53.4 million while exports amounted to $7.6 million.

The report shows first quarter 2007 U.S. domestic shipments and exports were both up from first quarter 2006. Domestic workholding equipment increased 3.3 percent and U.S. exports increased 11.8 percent from 2006 levels. Of domestic orders, the Midwest remained the largest destination, with 38.7 percent of total domestic shipments going to that region. This decline from 46.3 percent in first quarter 2006, as well as slight drops in shipments to the South and Northeast, was offset by gains in the Central and Western regions. Additionally, first quarter 2007 employment levels were up 9.6 percent from the same quarter in 2006.

The WPG is comprised of AMT members who produce chucks, jaws, collets, vises, fixtures, and other workholding equipment.

New Wing Contract for A-10 Aircraft

The Boeing Co., Chicago, has been awarded a U.S. Air Force contract worth up to $2 billion for engineering services and the manufacturing of 242 wing sets for the Air Force’s A-10 fleet between 2007 and 2018.

The A-10 wing replacement program calls for replacement wing sets to be delivered in parts and kits for easy installation. Boeing has teamed with key suppliers to meet the requirements presented by the A-10 contract. The replacements will permit the A-10 fleet to fly at least 20 more years.

The A-10, first introduced in 1976, is a twin-engine jet aircraft designed for close-air support of ground forces. The single-seat aircraft can be used against ground targets, including tanks and other armored vehicles.

Low Growth for European Laser Cutting Market

The European laser-cutting equipment market is experiencing low but steady growth. Of the demand taking place, much of it is arising from end-users’ focus on incorporating more automation into production facilities and providing high-quality products, according to an analysis from Frost & Sullivan Research. European shops are choosing more reliable and flexible laser-cutting solutions they can adapt to address quality and production issues.

This market earned revenues of $344.8 million in 2006 and is estimated to reach $577.6 million in 2013.

Equipment manufacturers are attempting to meet end-user demand with more flexible and adaptable cutting solutions rather than providing stand-alone systems. The analysis firm reports that despite the high initial investment required to purchase these solutions, customers are beginning to purchase them as their higher efficiency could lead to significant future savings.

Perhaps the biggest driver of this market is the immense potential of the eastern European region. The region is becoming a manufacturing hub due to the increase in investment from outside the region, combined with government funding. Attracted by the many subsidies offered, a growing number of companies are setting up manufacturing facilities in Eastern Europe, and this augurs well for the adoption of advanced equipment such as laser cutting systems.

However, several factors are holding back investment at present including perceived high prices, lack of awareness about the compelling advantages of using alternative technology, concerns about product design, and its ability to meet the varied needs of different end-user applications. Manufacturers face the challenge of educating end-users on the new technical developments taking place to promote the long-term potential of these systems.

Flow Taps “Charley” Brown for CEO

The board of directors of Flow International, Corp. Kent, WA, a manufacturer of waterjet technology, named Charles “Charley” Brown as the company’s new chief executive officer, effective upon the retirement of Stephen Light.

During Brown’s 23-year career he has worked for Johnson & Johnson, Black & Decker Corp., and Masco Corp. He was the former president and COO of the Pump, Pool, and Spa Divisions at Pentair, Inc., a company with 2006 revenues of approximately $3.15 billion.

Foreign Automotive Sales Grow While Domestic Production Stagnates

Foreign automakers posted record sales for the 12-month period starting June 2006, while U.S. auto manufacturers showed modest gains or losses.

Mazda North American Operations reported its best June since 2004 with U.S. sales accounting for an 8.6 percent increase versus the same period last year. Year-to-date sales were up 8.5 percent year-over-year. Mazda’s incentive spending is one of the lowest in the industry. With no customer cash and only minimal lease and finance support, Mazda3 celebrated its best June since its 2003 launch with sales up 20 percent versus last year. In its fourth year of production, the Mazda3 remains a sales homerun for the company. Year-to-date, Mazda3 sales are up 20.7 percent.

Kia Motors America had another annual sales record with year-to-date sales increase of 5.3-percent over the same period last year. The Rio sub-compact sedan and five-door as well as the Sportage entry SUV, also had strong June sales. Rio had an 89.3-percent increase over the same period last year, while Sportage sales were up 51.9 percent.

The BMW Group in the U.S. reported an increase of six percent over June 2006. The BMW Group also increased its first half-year sales by 4.5 percent, compared to same period in 2006. Sales of BMW brand vehicles reached the best June and best year-to-date figures ever. In June, sales were up 4.3 percent.

Mitsubishi Motors North America, Inc., reported June sales up 30 percent over last year’s volume and the best June in four years. Calendar year-to-date sales were up 21 percent compared to last year’s first-half total.

Subaru of America, Inc. posted gains over the same period last year. The Subaru Impreza line was up 24 percent, following a trend of double digit gains this year prior to the new 2008 model year arriving in dealer showrooms in August.

Toyota Motor Sales U.S.A., Inc., reported all-time best-ever first-half year sales with an increase of 6.1 percent over last June, contributed to a record-setting second quarter. The Toyota Division posted its best June sales, up 6.9 percent over last June.

Hyundai Motor America announced an all-time record sales month. Hyundai sales were up 12 percent month-over-month and 11 percent over last June. Hyundai’s 2007 Santa Fe saw an increase over June 2006 of 37 percent, followed closely by the Sonata, which experienced a 28 percent sales increase. “The first half of 2007 was the most successful in Hyundai history,” a company representative said.

American Honda Motor Co., Inc., posted record June sales of Honda and Acura vehicles, up 7.3 percent on a daily-selling-rate basis driven by record sales of Acura light trucks and the TSX sports sedan. Acura posted June sales up 6.9 percent higher than last year based on the daily selling rate. American Honda year-to-date sales were up 2.1 percent. The Honda Division was up 7.4 percent compared to last year.

Volkswagen of America, Inc., June 2007 sales represented an increase of 15 percent over the June 2006 total. This performance reflects the best overall sales month for Volkswagen since August 2006.

Mercedes-Benz USA reported sales of new vehicles for June 2007, bringing the total up to a 2.9 percent increase over the first half of last year, marking the best first-half sales in the company’s history.

Nissan North America, Inc., reported sales up 18.2 percent from the prior year. Nissan Division sales increased by 19.4 percent over last year.

Ford Motor Company’s total sales – including sales to fleet customers – were down 8 percent. The decline in total sales reflected a planned reduction in sales to daily rental companies. Daily rental sales were down 39 percent compared with a year ago. In the first half, sales to daily rental companies were down 30 percent.

DaimlerChrysler AG, the third largest U.S. automaker, reported total group sales for June were down two percent compared to June 2006. Chrysler Group, consisting of the Chrysler, Jeep and Dodge brands, posted a one percent decline in June.

What do you think?
Will the information in this article increase efficiency or save time, money, or effort? Let us know by e-mail from our website at www.ModernApplicationsNews.com or e-mail the editor at pnofel@nelsonpub.com.