January 2008 Edition
INDUSTRY NEWS
Industry News
Responding to a poll, fewer owners and managers of small manufacturing businesses indicated during the third quarter of 2007 that they are planning for expansion during the next 12 to 24 months, according to the latest Small Business Research Board study.
Of the 800 owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by International Profit Associates, 25 percent said they plan to expand their businesses the next 12 to 24 months. This was a decrease of four points from the 29 percent who said during the second quarter that they were planning to expand their businesses.
About 39 percent responded that they expected expansion of facilities at current locations or the addition of new locations, as their primary methods for growing their businesses. Expansion at current locations was mentioned by 21 percent of the participants while 18 percent said they intend to add locations.
Enhancing customer service capabilities had 20 percent of the vote.
The addition of new products was cited by 18 percent as being their leading method for assisting in the expansion of small business during the third quarter, while providing more services was cited by 11 percent of the small manufacturing companies.
As far as productivity, the addition of more automation or technology is regarded as the leading means for improving operating efficiency the next 12 to 24 months. This was followed by improved staff training and the addition of more staff as a means for enhancing productivity. Improvements to existing automation was fourth.
Mori Seiki, U.S. headquarters in Chicago, IL, acquired Sandvik Tobler SAS, France, a division of Sandvik Tooling. With operations in Louvres, France, Sandvik Tobler produces precision mandrels and clamping solutions for the automotive industry. The company posted 2006 sales of approximately $12.5 million.
The transfer of Sandvik Tobler to Mori Seiki is subject to obtaining the appropriate approvals from the relevant antitrust authorities.
The 2007 FABTECH International and AWS Welding Show surpassed attendance expectations and set new highs for number of exhibiting companies and net square footage of exhibit space. The four-day showcase of metal forming, fabricating, stamping, tube and pipe, and welding equipment attracted nearly 31,000 visitors from more than 75 countries, a 27 percent increase compared to the last time the show was in Chicago in 2005.
Attendees visited exhibits filling 461,627 ft2 of booth space in the north and south halls of McCormick Place. The annual event is co-sponsored by the American Welding Society, Fabricators and Manufacturers Association International, and the Society of Manufacturing Engineers, and is supported by the National Association of Manufacturers, an industry partner.
September U.S. manufacturing technology consumption totaled $438.95 million, according to the Association for Manufacturing Technology and the American Machine Tool Distributors' Association. This total, as reported by companies participating in the United States Manufacturing Technology Consumption – USMTC – program, was up 21.7 percent from August, and up 2.9 percent from the total of $426.39 million reported for September 2006. With a year-to-date total of $3.08 billion, 2007 was up 6.7 percent compared with 2006.
These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
"Evidence that manufacturing is alive and well in the U.S. can be seen in September's extraordinary surge in manufacturing technology orders," John B. Byrd III, AMT president, said. "It is especially impressive that orders surpassed those placed in September of 2006, when the biennial International Manufacturing Technology Show was held in Chicago, traditionally a peak in order activity."
The USMTC report, jointly compiled by the AMT and AMTDA, represents the production and distribution of manufacturing technology, and provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology consumption is a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.
U.S. manufacturing technology consumption is also reported on a regional basis for five geographic breakdowns of the United States.
Northeast Region – Manufacturing technology consumption in the Northeast Region in September stood at $46.26 million, down 8.9 percent when compared with August's $50.77 million and 21.8 percent less than the total for September a year ago. At $470.54 million, the 2007 year-to-date total was 10.9 percent higher than the comparable figure for 2006.
Southern Region – Totaling $49.86 million, September manufacturing technology consumption in the Southern Region was 6.3 percent greater than August's $46.90 million and 19.4 percent more than the September 2006 tally. The year-to-date total of $401.86 million beat the comparable figure for 2006 by 6.5 percent.
Midwestern Region – At $206.04 million, Midwestern Region manufacturing technology consumption in September was up 79.8 percent when compared with August's $114.6 million, and 46.7 percent higher than the September total last year. Compared with 2006 at the same time, the year-to-date total of $974.16 million represented an 8.7 percent increase.
Central Region – Central Region manufacturing technology consumption stood at $97.48 million, three percent less than the $100.48 million total for August and 20.5 percent less than the total for last September. Compared with 2006 at the same time, the year-to-date total of $811.76 million was up 8.6 percent.
Western Region – At $39.31 million, Western Region manufacturing technology consumption in September fell 17.9 percent compared with the $47.9 million total for August, and was 37 percent less than in September 2006. The year-to-date total of $418.34 million was 4.4 percent less than the comparable figure in 2006.
Engineering, technical, and industrial professionals increasingly rely on the Internet to accomplish their jobs, according to results of the GlobalSpec Engineering Trends Survey. This sixth annual study surveyed engineers, technical buyers, scientific professionals, and other members of the industrial community to determine Internet usage patterns.
About 31 percent of respondents indicated they spent more than eight hours each week online for work-related purposes in 2007, compared to 23 percent in 2006.
Those who responded stated they are spending this time performing important tasks:
- 90 percent of respondents have used the Internet to find components and suppliers
- 85 percent go online to obtain product specifications.
Respondents have clear preferences for performing online searches. The majority use more than one search engine for work-related purposes. The top three preferred search engines were Google, GlobalSpec, and Yahoo.
Survey results indicated an online presence drives industrial professionals to take offline action. About 85 percent of respondents stated they contacted a supplier after visiting a web site, and 49 percent ordered samples. They also respond to online advertising, with 81 percent reporting they visited an advertiser's web site and 59 percent e-mailed the advertiser.
Although engineering, technical, and industrial professionals have embraced the Internet for work-related purposes, new media has not gained wide acceptance in the industrial sector. Few respondents indicated spending time on blogs, discussion groups, online forums, networking sites, podcasts, audiocasts, and wikis.
The exception to the reluctance to partake in the new media are webcasts and webinars, which have been used by 23 percent of respondents for work-related purposes.
Additional findings from the GlobalSpec Sixth Annual Engineering Trends Survey include:
- 64 percent of respondents use two or more search engines for work-related purposes;
- 70 percent of respondents visit more than five work-related web sites each week;
- Printed buyer's guides are used by only two percent of respondents.
Access the survey results at: www.globalspec.com/wp/GS_EngineeringTrends07
The board of directors of Mecco Marking & Traceability, Cranberry Township, PA, appointed David Sweet as company president. Sweet was vice president of operations, a position he has held since joining the company in 2005.
He is a 10-year veteran of the laser industry, previously serving in senior level positions with related companies. He holds a degree in mechanical engineering from Worcester Polytechnic Institute. Dean Frenz will remain as the firm's chief executive officer and will continue to oversee the company's other primary division, which provides dot peen marking solutions.
Lucas-Milhaupt, Inc., Milwaukee, WI, a subsidiary of Handy & Harman., acquired Omni Technologies Corp., Danville, NH. Omni Technologies specializes in the manufacture and distribution of aluminum-based brazing and soldering materials.
Lucas-Milhaupt is a member of the Handy & Harman Precious Metals Group, an association of companies focused on the development and application of brazing technologies.
The Fabricators & Manufacturers Association Foundation board of directors elected Boyd Coddington, James P. Bouchard, and Delbert "Del" Mullens to the board at the group's annual meeting. Each will serve a two-year term on the 15-member board, which provides governance for the FMA Foundation.
Coddington is an automotive designer, builder, and fabricator in the custom-fabricated hot rod industry. He is best known as the under-the-gun, deadline-stomping star of "American Hot Rod," a show that airs on The Learning Channel. He also is owner of the Boyd Coddington Hot Rods and Collectibles based in La Habra, CA. Coddington's trademark billet aluminum wheels are a product that launched an industry, and today he continues to introduce sheet metal work, welding, and pipe bending to the public.
Bouchard is Chairman and CEO of Wheeling-Pittsburgh Steel Corp., Wheeling, WV.
Mullens is owner of Wesley Financial Corp., Bloomfield Hills, MI.
"As an owner of companies in the fabricating and powder coating industry, I am keenly aware of the competitive global nature of manufacturing and the need for well-trained employees in today's market," Mullens said. "Being a member of the FMA Foundation board will let me work in collaboration with business and industry to help prepare future employees for the world of manufacturing."
More information on the FMA Foundation is available at
www.fma-foundation.org
TekSoft, Inc., Scottsdale, AZ, was renamed Geometric Technologies, Inc. This follows the decision to adopt the "Geometric" brand across all operating companies by its holding company, Geometric Ltd., formerly Geometric Software Solutions Company Ltd., Mumbai, India. The management team and structure of Geometric Technologies remains the same. Geometric specializes in solutions for product lifecycle management.
Worldwide sales for Yamazaki Mazak Corp. reached $2.165 billion for the 2007 fiscal year, a 19 percent increase from 2006.
The company credits record customer acceptance and implementation of advanced machine tool technologies led by multi-tasking, 5-axis, and process-integration strategies.
Elsewhere in the world, Mazak has opened a second factory in Minokamo, Japan, devoted to production of the Nexus II series CNC Turning, Vertical, and Horizontal Machining Centers. This new plant will free up capacity at Mazak's Oguchi, Seiko, and Minokamo Plant 1 facilities, reducing lead times for Multi-Axis and Multi-Tasking machines.
Additional investments in expansion are being made outside of Japan. The factory in China has doubled in factory floor space and factories in the UK and Singapore are undergoing capacity improvements as well. In all, Yamazaki Mazak's global manufacturing operations stand at more than 4 million ft2 among eight factories in five countries.
Carl Zeiss Industrial Metrology opened its North American Computed Tomography Technology Center in December. Visitors learned the advantages and benefits of computed tomography and experienced the technology first-hand during demonstrations. Applications engineers and Carl Zeiss representatives were on-hand to discuss applications-specific issues and explain how this technology can help improve part quality.
The facility offers companies the benefits of CT scanning without the need for capital investment. The facility features the new Zeiss Metrotom, a 225kV metrotomography system for industrial applications, as well as a Varian BIR 450kV CT system.
Seco Tools, whose North American headquarters is in Warren, MI, signed an agreement to acquire 100 percent of the shares in the tool manufacturer ALG, Moscow, Russia. The acquisition is part of a goal to maintain an active presence in all major industrial markets. ALG, which offers metal cutting machining and wear parts, has shown robust growth in recent years, and is regarded as a strong brand in the Russian market. It is one of the top three toolmakers in Russia.
The combination of ALG's customer base, distribution network, and strong brand, along with Seco Tools' product offering and technical expertise, is expected to provide a platform for increased sales. ALG has about 170 employees.
The transaction is planned for completion in the first quarter of 2008 and is conditional on approval from the relevant authorities. The acquisition is expected to make a positive contribution to earnings per share starting in 2008.
PennEngineering, Danboro, PA, served trademark and patent infringement complaints to six fastener manufacturers attending the National Industrial Fastener Show/West, Las Vegas, in November. The complaints were filed on November 13, 2007, in Federal District Court in Nevada.
PennEngineering alleged the companies were exhibiting and offering for sale products which violate one or more of PennEngineering's trademarks and patents. PennEngineering asked a federal district court in Nevada to require these companies to immediately cease and desist and to award PennEngineering appropriate damages.
The companies were Shanghai Jingyang Import & Export Co., Ltd.; Clinching Fasteners Co., Ltd.; Shenzhen Hongyijin Metal Co., Ltd.; Dongtai City Huwaei Standard Component Corp.; Finexpress Fastener Co., Ltd.; and Richard Manno & Co., Inc.
PennEngineering develops and manufactures PEM self-clinching, broaching, weld, and surface mount fasteners; SI inserts for plastics; and Atlas SpinTite, MaxTite, and Plus+Tite blind threaded inserts.
Finite element analysis software from ALGOR, Inc., Pittsburgh, was a readers' choice product of the year finalist in the National Aeronautics and Space Administration's Tech Briefs magazine.