July 2008 Edition

INDUSTRY NEWS

Workholding Sales Up Compared to 2007

Shipments of workholding equipment from the U.S. were $63.6 million for first quarter 2008, up 4.4 percent from first quarter 2007, according to the Advanced Workholding Technology Group – AWT – formerly the Workholding Product Group, The Association For Manufacturing Technology.

Workholding equipment shipments within the U.S. by the 36 companies participating in the AWT statistical report totaled $54.8 million while exports amounted to $8.8 million.

The report from the AWT shows that domestic workholding equipment increased 2.8 percent and U.S. exports increased 15.3 percent from year-earlier levels.

The Midwest remained the largest domestic destination with 41.6 percent of total domestic first quarter shipments going to that region, although this represents a slight decline from fourth quarter 2007.

The Central region gained 1.2 percent, bringing it to 17.5 percent, whereas the Northeast lost 1.2 percent to account for 13.9 percent of domestic shipments in the first quarter.

The South and West increased shares slightly, making up 16.5 and 10.4 percent of domestic shipments, respectively. Additionally, first quarter 2008 employment levels were up 0.4 percent from the same quarter in 2007.

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

MAN
The Modern Applications News Industrial Average – MANIA – tracks 34 publicly traded companies in the metalworking field and compares the companies’ 30-day trend to the corresponding trend of the Dow-Jones Industrial Average for the same period, to compare the movements between the averages

Fastener Patent Infringement Suit Settled

PennEngineering, Danboro, PA, announced a settlement agreement with Richard Manno & Co., Inc. that resolves allegations that Manno sold, or offered for sale, products that infringe PennEngineering’s intellectual property. Details of the settlement agreement were not disclosed. PennEngineering develops and manufactures PEM self-clinching, broaching, weld, and surface mount fasteners.

The original complaint was filed November 13, 2007, in Federal District Court in Nevada. The PEM products in question included PEM Types SKC, TPS, and FH fasteners.

According to Mark Petty, PennEngineering president, his company started the litigation to protect its intellectual property rights.

Tesco Technologies to Operate Under Seco Tools Name

Tesco Technologies Inc., Novi, MI, has dropped the Tesco identity and will carry the Seco Tools Inc. name. Seco acquired Tesco in 2004. Tesco was known for its Jabro brand line of tooling, targeted at mold and die, medical, and aerospace applications. Jabro is a Seco Tools Inc. brand.

What was the Tesco Technologies facility in Hayes, VA, will remain open and be re-assigned as a Seco Tools sales office.

Seco Tools has corporate headquarters in Warren, MI, and is part of the Seco Tools AB global organization.

FARO and DPI Strike Licensing Deal

FARO Technologies, Inc., Lake Mary, FL, a maker of portable computer-aided measurement hardware and software, announced that it acquired an exclusive license from Dimensional Photonics International, Inc. DPI is a provider of high-speed, high-accuracy digital shape scanners – for global rights to develop, manufacture, and sell DPI technology and products. Terms of the agreement were not disclosed.

FARO expects the transaction to be mildly dilutive to earnings in 2008 and 2009. The license covers technology and products only – no personnel or facilities are involved; rights to more than 20 existing and pending patents; and to technologies developed and patented by the Massachusetts Institute of Technology.

FARO will establish a new Technology Center of Excellence in the Boston area, close to the existing DPI team, to ensure technology transfer, as well as to draw upon the technical talent available in that area. The new R&D team will fall under FARO’s current engineering organization.

DPI’s proprietary technology – Accordion Fringe Interferometry – creates a 3D digital model of a physical object’s surface by immersing it in patterns of light, then recording how the light reflects. Its non-contact technology can achieve accuracy of 25µ or better in a 500mm field of view. The technology is scalable, able to scan objects from nano-scale to several meters in size.

KUKA Robotics Celebrates 35 Years

KUKA Robotics Corp., Clinton Township, MI, celebrates its 35th year in the robotics industry with an open house at its headquarters. The robot manufacturer will showcase more than 15 operating robotic demonstration cells.

Student Wins CNC Software Contest

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Bernie Sievers, a student at Vincennes University, won the 2007/2008 Innovator of the Future contest from CNC Software after designing and cutting this steering wheel

CNC Software, Tolland, CT, developer of Mastercam CAD/CAM software, announced that the winner of its Innovator of the Future contest for the 2007/2008 school year is Bernie Sievers, a student in the Advanced Manufacturing Program at Vincennes University, Vincennes, IN.

The contest is designed to help introduce students to real-world manufacturing by asking them to produce a specific part that would be judged by a guest from the manufacturing industry. The IOF contest required entrants to design and cut a steering wheel. Each contestant also had to submit a written description of the part, such as the inspiration for the design, the materials used, and other specifications.

The guest celebrity judge for IOF 2007/2008 was the late Boyd Coddington, known to many from the popular TLC show American Hot Rod.

Runner-up was Kenyon Burrell from Eastern Arizona College, Thatcher, AZ. His design integrated both aesthetics and ergonomics in a steering wheel. Alex Beranek and Jordan Hinkson, both from Kenmore Middle School, Arlington, VA, had honorable mentions with their biohazard symbol steering wheel.

Industrial Wireless Communications in Flux

A recently completed market study from Venture Development Corp., Natick, MA, focused on shipments of products for on-site industrial monitoring and control.

The study, RF/Microwave Industrial Wireless Monitoring and Control Products: For Discrete and Process Manufacturing, Global Market Analysis, found that the largest share of 2007 shipments of these consisted of products using proprietary wireless protocols.

  • Proprietary in these frequency bands: 5, 4.9, 2.4, and 1.4 GHz; 900, 800, 400, 300, 150-174, 54-108, 72, 27, 13-22 MHz
  • IEEE 802.11 Standards: a, b, g, n
  • IEEE 802.15.4 Standards: 802.15.4, ISA SP-100, Wireless HART, ZigBee
  • Other Standards: Bluetooth, Wireless USB

Those using proprietary wireless protocols accounted for $339.9 million of the total of $615.5 million, or over 55 percent.

MAN

Proprietary networks operating in the 400, 800, and 900 MHz ranges have been preferred in industrial applications for several reasons.

Industrial applications in large facilities, such as oil and gas fields or water/wastewater treatment plants, require longer distances, for which these bands are suitable.

Compared to higher frequency networks, these provide better propagation – especially through walls and other obstructions – and require lower transmission power and/or provide longer transmission distances.

The RF components for the products – and thus the products operating at these frequencies – have lower prices.

Dramatic shifts in shipment shares are expected over the next four years, with a trend toward greater implementation of standard wireless networks, and a decline in shipment share of the wireless – RF/microwave – products using proprietary networks.

VDC forecasts that in 2012 shipments of these products using wireless standards will account for 56.5 percent of a market valued at nearly $1.5 billion.

Typical advantages of using standard networks include lower costs, interchangeable products from different suppliers, and established best practices.

VDC forecasts that in 2012 the largest worldwide shipment share will be for products using the IEEE 802.11g standard, followed by those using proprietary protocols operating in the 2.4 GHz band.

Overall, the wireless Ethernet IEEE 802.11 a/b/g/n standards accounted for 34.2 percent of worldwide shipments in 2007.

The share is forecast to increase to 36.7 percent of the total in 2012.

The largest share gain among these is expected for the high-throughput, broad-bandwidth IEEE 802.11n standard.

Declining shares are forecast for the IEEE.11a and b standards, with these expected to be displaced by shipments using the IEEE 802.g and n standards.

The largest share losses are expected for shipments using proprietary networks in the 400, 800, and 900 MHz bands.

Shipments of products using these are still expected to grow over the forecast period, however, at relatively slow rates, as these are being displaced in applications by products using standard networks.

There is also displacement expected by shifts to proprietary networks in the 2.4 GHz and 5 GHz bands. As the price of components for products operating in these bands continue to decline, shifts to these frequency bands follow.

Networking products using these communication bands have higher data throughput than for those in lower frequency bands and can be used in all geographic regions.

Small but rapidly growing shipment shares of the products using IEEE 802.15.4, ZigBee, Wireless HART, and ISA SP100 standards are forecast.

Sandvik Coromant Boosts R&D Facility

Sandvik Coromant, Fair Lawn, NJ, a manufacturer of cutting tools, will increase the size of its research and development department by nearly 20 percent, adding 40 new employees during the next three years. Between its R&D department and the research center for cemented carbides in Vastberga, Sweden, the company employs more than 200 employees.

Most of the hiring will take place during the remainder of 2008, with about 20 new positions to be filled during that time.

Industry News

Blue-collar Jobs Lead Employment Decline
According to information released by the National Council for Advanced Manufacturing – NACFAM – seasonally adjusted manufacturing employment was reported at 13.4 million by the Bureau of Labor Statistics in September.

NTMA and PMA Join to Strengthen Industry Advocacy
The Precision Metalforming Association, Independence, OH, and the National Tooling and Machining Association, Fort Washington, MD, are combining their federal government advocacy programs to promote the U.S. government to ensure a strong manufacturing sector.

Unemployment Trend by State
According to the Economic Policy Institute, since the economic downturn began in December 2007, the U.S. has lost more than 600,000 jobs, and the national unemployment rate has risen to a five-year high of 6.1 percent.

Manufacturing Technology Consumption Falls in July
July U.S. manufacturing technology consumption totaled $303.44 million, according to the American Machine Tool Distributors’ Association and the Association For Manufacturing Technology. This total, as reported by companies participating in the U.S. Manufacturing Technology Consumption – USMTC – program, was down 21.5 percent from June but up 5.7 percent from the total of $287 million reported for July 2007.

GE Fanuc Backs MTConnect
GE Fanuc Intelligent Platforms, a unit of GE Enterprise Solutions, Japan, announced its support of MTConnect, a new communication protocol to link machine tools from varying suppliers around the world.

Flow Executes Definitive Agreement in Omax Merger
Flow International Corp., Kent, WA, a developer and manufacturer of industrial waterjet machines, executed a definitive agreement to merge with OMAX Corp., Kent, WA. OMAX was a privately-held provider of waterjet systems.

Dimension 3D Printing Provides $400,000 in Grants to Schools
The Dimension 3D Printing Group, Minneapolis, a business unit of Stratasys, Inc., gave more than $400,000 to schools across the nation to underwrite the purchase of 3D printing systems for the 2008-09 school year.

PennEngineering and Peninsula Components Announce Patent Fight Agreement
The patent infringement suit brought by PennEngineering & Manufacturing Corp., Danboro, PA, against Peninsula Components, Inc., San Carlos, CA, was settled.

Shuttle Follow-on Builder Chooses PLM Software
Siemens PLM Software, Plano, TX, announced Space Exploration Technologies – SpaceX – a privately-held leading space launch vehicle developer and services provider, standardized on Siemens’ NX and Teamcenter software for product design, simulation, and product data management.

Lincoln Electric Opens Automation Center
The Lincoln Electric Co., arc welding products manufacturer, opened its Automation Center of Excellence on October 23, adjacent to its Cleveland headquarters. The 100,000 ft2 facility showcases the company’s robotic welding solutions.

Association For Manufacturing Technology Elects New Board of Directors
The Association for Manufacturing Technology – AMT – elected its 2008-2009 officers and directors at its 2008 Annual Meeting in Austin, TX.

Some Good News in a Sour Economy
There may be at least three silver linings in the dark cloud of global economic crisis, according to a Fabricators & Manufacturers Association, Rockford, IL, economic consultant.