Participate in the Financial Benchmarking Surveys

May 2012
1859 - the first recorded use of the word “technology” in its current meaning.
AMTonline.org
The 2012 CASG Conference is looking terrific!
Time to sign up!
May 17 - 18
Crowne Plaza at Historic Union Station
Indianapolis
The scene is set and the wealth of experience and knowledge is yours for the asking. If
you are a builder or associated in any way with automated systems builders, then you
can’t afford to miss this once-a-year event. It is specific information and networking
See Page 5
See Page 2
A monthly report to members from AMT - The Association For Manufacturing Technology
Jim Ellison
awarded honorary
member status
How well do you know AMT? Are you familiar with all the
products and services we offer to help further your business?
Do you know about the ways you can get involved to help
the association better serve its membership? Join us for a
half day of learning, collaborating and networking with your
association and fellow members!
As a stronger association, with one voice, AMT will review
products and services, committees, and the future of the
industry. Participating in the most convenient Regional
Meeting for you will provide a breadth of resources for you to
accomplish your business and manufacturing goals.
Jim Ellison, Chairman Emeritus of Ellison Technologies, was awarded with the
prestigious Honorary Membership award
by AMTDA, The American Machine Tool
Distributor’s Association at The MFG Meeting held March 8-11 in Orlando, Fla. Accepting the award on Jim’s behalf were Tim
Kilty, President and CEO of Ellison Technologies, Inc., and Kent Lorenz, President of
the Midwest Division of Ellison Technologies, Inc., and former AMTDA Chairman in
2007-2008.
Peter Borden, AMTDA President commented, “Jim Ellison’s influence on AMTDA
and the entire machine tool industry has
been widely known and regarded, and deserves to be recognized and applauded. Jim
served on almost every committee and task
force at AMTDA beginning in the 1970s and
continuing through his entire career. Jim’s
chairmanship in 1981-82 was highlighted by
AMTDA’s entrance into the regional machine tool show business which allowed
AMTDA to expand its products and services
offerings, and provided the foundation for
PRESORTED
FIRST CLASS MAIL
U.S. POSTAGE
PAID
PERMIT #163
DULLES, VA
Ellison – See Page 8
Cincinnati - May 31 Los Angeles - June 1 Detroit - June 5 Chicago - June 6
Houston - June 7 Charlotte - June 12 Hartford - June 13
Maximize Your AMT Membership
Address Service Requested
AMT - The Association For Manufacturing Technology
7901 Westpark Drive
McLean, VA 22102
Participate in the Financial Benchmarking Surveys
It’s May already—AMT’s financial benchmarking surveys for builders* are open and
we’re ready to receive your 2011 data!
What does this mean for you? It means
that you need to take action now—find out if
your financial officer has submitted your company’s data for the Operating Metrics, Financial Performance, and Compensation (Plant,
Professional, and Executive) Surveys. These
surveys are member-only programs—and, as
with all surveys, the more members that participate, the more valuable the reports will be.
Participating in these surveys makes good
business sense. Have you ever applied for a workin-progress loan? You provide the bank with
your financial information—but how do they
evaluate the strength of your application? They
want to compare your numbers to other companies like yours. Now, by participating in these
surveys and receiving a free copy of the reports,
you can provide them with that valuable resource. The Financial Performance Report paints
a picture of how business in your segment is
going. For example, you can see the percent of
domestic sales broken down by what a company
makes: material removal machines, forming
and handling machines, automated cells and
systems, cutting tools and holders, or workholding products. Information at this level of detail
is not available elsewhere—and all you have to
do is submit your company’s information in
order to receive a free copy of the reports.
Another use for the reports is to benchmark your own practices, either for your inter-
Surveys
– See Page 4
Page 2
AMT NEWS/May 2012
CASG —
Lots of loose ends to tie
up before Election Day
Taxes
Taxes continue to dominate the
dialogue in Washington this spring,
as Congress looks for ways to reduce
our deficit, increase employment
and boost the sluggish economy. The
United States now has the dubious
distinction of having the highest
corporation tax rate in the developed world and the only one with a
worldwide system of taxation. A
complete overhaul of our tax code is
necessary sooner rather than later,
but Congress seems to prefer quick
incremental fixes rather than real
long-term reform.
Late last month, the House
GOP leadership passed a $46 billion
small business bill that would allow
businesses with fewer than 500 employees to deduct up to 20 percent of
their profits in 2012. Senate Democrats oppose the bill. They offered a
counterproposal that would give a
one-year 10 percent tax break only
to companies that hire new employees or increase wages. It would also
reinstate 100 percent bonus depreciation for 2012. Current law is 50
percent bonus depreciation for 2012.
House Republicans oppose this bill.
With each chamber opposing the
AMT NEWS
Published monthly by the
Communications Department
©2012 AMT
The Association For Manufacturing Technology
7901 Westpark Drive
McLean, Virginia 22102
703-827-5234
E-mail: [email protected]
Ruth Sharpe . . . . . . Editor & Designer
Bonnie Gurney. . . . Director - Communications
Penny Brown. . . . . Media Communications Manager
Pam Kachel. . . . . . . Communications Coordinator
www.AMTonline.org
Contact AMT
AMT NEWS
Penny Brown . . . 703-827-5275 . . [email protected]
Ruth Sharpe . . . . 703-827-5234 . . [email protected]
AMTonline
Diyana Hrzic . . . . 703-827-5260 . . [email protected]
. . . . . . . . . . . . . . . . . . . . . . . [email protected]
Submit company news articles . . . . . www.AMTonline.org/membercms
Advocacy
Amber Thomas . 703-827-5230 . . [email protected]
Graham Schnaars 703-827-5229 . . [email protected]
Business Development
Jeffery Traver . . . 703-827-5251 . . [email protected]
Exhibitions - Apply for space at IMTS 2012
John Krisko . . . . . 703-827-5252 . . [email protected]
Tom Snyder . . . . 703-827-5235 . . [email protected]
Industry Engagement
Steve Lesnewich . 703-827-5227 . . . [email protected]
Meetings . . . . 888-379-4659 . . . www.AMTonline.org/meetings
MTConnect®
Paul Warndorf . . . . . . . 703-827-5291
. . . . . . . . . . . . . . . . . . . [email protected]
MTInsight
Mark Kennedy . . 703-827-5220 . . [email protected]
Julie Germain . . . 703-827-5222 . . [email protected]
Smartforce Development
Greg Jones . . . . . 703-827-5203 . . [email protected]
Strategic Information & Research
Pat McGibbon . . 703-827-5255 . . [email protected]
Strategic Initiatives
Peter Borden . . . 703-827-5215 . . [email protected]
Technology
Paul Warndorf . . 703-827-5291 . . [email protected]
other’s version, it’s unlikely that
either bill will make it to the president’s desk – a scenario that has
played out again and again on
Capitol Hill.
More likely to see action this
year is legislation to deal with the
long list of tax preferences that expire at the end of the year along
with the Bush tax cuts. If Congress
fails to act, taxes will increase on
many small businesses and middle-class taxpayers in 2013. That’s
not a popular alternative for members in an election year – a powerful impetus for action.
Provisions that are expiring at
the end of the year include 50 percent bonus depreciation and increased Section 179 expensing –
two important investment
incentives for manufacturers. In
2013, bonus depreciation drops
from 50 percent to zero. The 2012
allowance for Sec. 179, often referred to as small business expensing, is already substantially less
than it was in 2010 and 2011 – dropping to $125,000 with a $500,000
phase-out (indexed for inflation)
from $500,000 with a $2 million
phase-out. Allowances for taxable
years 2013 are scheduled to drop to
a $25,000 deduction with a $200,000
phase-out.
These seemingly arbitrary yearto-year changes in tax law wreak
havoc on investment decisions and
hinder innovation and job creation.
The R&D tax credit expired at the
end of 2011, marking the fifteenth
time it will need extending since it
was created in 1981. Right now,
there is bipartisan support for extending the R&D tax credit, along
with increasing bonus depreciation,
in 2012 and providing some form of
accelerated depreciation in 2013.
With only 6 months until the elections and 12 appropriations bills to
deal with, it may be that passage on
an “extenders” bill will have to wait
until a post-election lame duck
session.
Appropriations
Adequate funding for the Manufacturing Extension Partnerships
remains a top priority for AMT.
House and Senate appropriators are
moving FY13 funding measures
that provide MEPs essentially the
same funding as FY12. Both bills
also provide funding for the new
Advanced Manufacturing Technology Consortia (AMTech) program,
which will award grants to industry-led consortia to develop roadmaps of critical long-term industrial research needs plus fund
research at universities and government labs directed at meeting those
needs. The program’s goal is to accelerate the innovation process that
creates skilled, high-wage manufacturing jobs.
Cont’d from page 1
at its very best. Check out the agenda and figure in your personal contacts and industry scuttlebutt to convince yourself of the value and ROI
of attending.
Ex-Im reauthorization
Congress still has not reauthorized the Ex-Im Bank even though
its Charter expires on May 31. It appears supporters are close to a deal
that would include a multi-year reauthorization and increase the
bank’s lending authority; but there
is a vocal group of opponents that is
holding up the process. They claim
Ex-Im picks winners and losers in
the marketplace and should not
meddle in private enterprise. Supporters counter that Ex-Im helps
level the global playing field and
creates jobs through increased exports. According to Ex-Im Chairman Fred Hochberg, Ex-Im provided
a record $33 billion in export financing in 2011, with almost 90 percent of the transactions benefiting
U.S. small businesses, plus it actually generated a profit for the U.S.
treasury.
Get involved
Click on the American flag on
the AMTonline homepage to visit
the Advocacy Legislative Action
Center and write your members of
Congress on these issues. Urge your
senators and representative to
tackle the challenges at hand now
rather than pushing them down the
road. They need to hear that uncertainty over what Washington will
(or won’t) do next is stifling investment and job creation and holding
back what could be a robust, sustained economic recovery.
For more information, contact Amber
Thomas at athomas@AMTonline.
org or Graham Schnaars at
[email protected].
2012 CASG Conference Agenda
The Different Faces of Automation
Hyatt Regency O’Hare, Chicago, Thursday, May 24, 2012
Wednesday May 23 6:30 - 8:00 pm Reception, Hyatt Regency
Thursday May 24 7:00 am Continental Breakfast
8:00 am - 4:00 pm Conference
8:00 am Welcome to the Conference and Introduction
Tom Kramer, General Manager, ATS sortimat USA and CASG Chairman
Setting the Scene: The Different Faces of Automation
Malcolm Mason, Business Development Director, AMT
Question Time! Challenge AMT’s New MTInsight tool as a source of
business information
Pat McGibbon, VP-Strategic Information & Research, AMT
Reshoring: A Tool For Selling Automation
Base ROI on the part’s total cost instead of its price
Harry Moser, Founder & President, Reshoring Initiative, Kildeer, Ill.
Automating Today’s Medical Developments
Trends as recently defined by builders of automated systems
Joe DiFranco, Publisher & Tom Grasson, Editor,
GIE Media, Today’s Medical Developments
Custom Designed/Built Systems
Balancing Robotics and Custom Automation Gets Results
Gregory M. Olenick, VP & Gen. Manager, Ellison Technologies Automation, Iowa
Panel Discussion- Q & A
12:30 – 1:15 pm Lunch
Trends in Automated Assembly
New technologies: The differences they make. Market: Who’s buying?
Annual Spending Survey Results …
John Sprovieri, Editor, BNP Media, Assembly Magazine
The Financial Strengths and Weaknesses of CASG Companies
Taken from AMT’s Financial Performance Report
John Mackay, President, Mackay Research Group
Custom Systems Outlook — CASG-Specific Forecasting
Addressing all three CASG sub-groups.
Pat McGibbon, VP-Strategic Information and Research, AMT
4:00 pm Closing Remarks and End of Conference
To register, go to www.AMTonline.org/CASGconf. You must be logged in
to register (use the “Forgot your password” link if you need it). The hotel
registration link is at the bottom of the same page.
Labor laws in flux
Earlier last month, the National
Labor Relations Board’s (NLRB) rule to
require employers to post a notice of
employees’ rights to form a union was
blocked by a federal court. The rule,
which was supposed to take effect
April 30, would have required specific
sized notices placed in conspicuous
places explaining employees’ rights to
collective bargaining. The case was
brought to court by the U.S. Chamber
of Commerce. An appeal by the NLRB
is expected. Meanwhile, the Coalition
for a Democratic Workplace, of which
AMT is a member, asked the federal
court to not require businesses to post
the notices until the final decision on
the appeal has been made. For now, no
notice is required. AMT will keep you
informed of any important updates.
On May 1, the NLRB’s rule
that simplifies union-election procedures went into effect. The socalled “ambush election” rule reduces the amount of time allotted
for a union election after a union petition is filed. This leaves little time
for employers to respond, tilting the
likelihood unions will win each
election. Congressional efforts led
by Senator Mike Enzi (R-WY) to
overrule this regulation failed in the
Senate by a vote of 54 to 45, largely
on party lines.
AMT recently signed a letter in
support of Sen. Orrin Hatch’s (RUT) legislation, the Employee
Rights Act (S. 1507). This bill would
not allow rushed union elections
and would prohibit the use of open
ballots – allowing employees to vote
privately and reducing the union’s
ability to coerce employees to vote in
the union’s favor. The bill also requires unions to have elections to recertify their status in a workplace –
providing employees the ability to
re-evaluate whether the union is in
their best interest or not. This is a
strong piece of legislation that
works to balance the power between employers, workers and
unions. AMT encourages you to
contact your senators to support it.
AMT will keep you informed of
action on these labor issues. You can
help by contacting your Congressional
lawmakers and letting them know
how the NLRB’s actions are affecting
your business.
Page 3
AMT NEWS/May 2012
Market
Data
Review
AMT Current Conditions Report
Segment Business Conditions
Status Notes
Machine Tool
Business Conditions
Orders start 2012 strong and look good through summer
Durable Goods Manufacturing
Business Conditions
Still expanding, backlogs growing, but supply chain
issues & potential inflation
Economic Indicators Summary Status Notes
Purchasing Managers Index
Moving back toward 55 – great news
Capacity Utilization for Mfg.
If 75 is the new 80, we are cooking
Orders for Mfg. Durable Goods
Steady growth to within 12 percent of the 2007 peak
30 Yr. Mortgage Rate
Rates remain low and home loan access improving
Consumer Sentiment
Not 2007 levels, but heading there slowly
AAA Bond Yields
Yields remain below pre-recession level and are at levels
that seem impossible to beat
Light Vehicle Sales
Broke 15 million units for the first time in years
Housing Starts
Edging upward with minor stumbles, but up from very
low levels
Baltic Dry Index
After small improvement, waffling at a low level
Restaurant Barometer Index
Holding at or near 100 for 7 months, has room to grow
Global Marketing & Sales Committee – Lessons Learned
Doing business in China
By: Richard J. Risotti
Vice President, Global Sales
Kinefac Corporation
As a result of rapid economic
growth and increasing trade liberalization over the past 30 years, China
has become an attractive market for
America leading many of us to travel
the road to China.
In considering doing business
in China, the place to start is to
avoid leaving common sense at the
border. Many of the same practices
that work in the United States also
work in China. Although the Chinese are generally polite, suspicion
and distrust characterize all meetings with strangers. The key is to develop “guanxi” (relationship) which
is very important for conducting
business. Your relationships are the
key to your business success in
China and without them your business plans will fail. Cultivating
guanxi takes patience and time.
The role the government plays
in China is much different from the
role it plays in the United States. In
China, the national, provincial, or
local government agencies with
their local respective officials are involved in almost every aspect of
business. Licenses and permits are
numerous and hard to get. Navigating the Chinese bureaucracy can be
especially challenging because a
lack of transparency makes it hard
to know exactly what you can and
cannot do.
The key is to
develop guanxi.
In addition, U.S. companies
must learn the local business etiquette and norms. The correct protocol can actually be learned from
the Chinese themselves. Humility is
a powerful tool in China and U.S.
companies must be open to learning
from the Chinese.
The most important step for a
U.S. company is to thoroughly understand why it wants to do busi-
ness in China. A clearly defined
goal needs to be developed with a
detailed plan for implementing it.
The road to China can be difficult.
The conventional wisdom is that
“in China nothing is impossible but
everything is hard.” Tremendous
patience and perseverance are
required.
China’s evolution to a market
economy has been breathtaking.
Although tremendous opportunities exist, U.S. companies must be
open to continuous learning and
adaptability in order to manage the
complex environment and the
rapid pace of development. U.S.
companies must appreciate the
challenges waiting for them on the
road to China and be able to navigate the potholes, traps and other
obstacles along the way. Success in
China can be especially difficult if
U.S. managers face language and
cultural differences. In any competitive market, turning dreams
into reality is challenging, and
China’s complexities double that
challenge. By exercising patience
and perseverance, identifying distinct market niches for your products, and having diligence and
flexibility, a U.S. company can
achieve success in China.
[email protected]
2012 looking better than
expected!
Top ten indicators are positive
The Mayans may be predicting the end of the world
in 2012, but U.S. manufacturing, and manufacturing technology in particular, certainly would not be
able to support that position. The year is only a
Pat McGibbon
quarter old, but the numbers for manufacturing
V.P. - Strategic
technology don’t appear to be slowing. Year-to-date
Information & Research
orders are up more than 20 percent over the first
quarter of 2011. A continuation of this trend through the next quarter is
supported by the dashboard appearing here.
Broken down by the numbers, the dashboard is impressive in that 80 percent of the indicators are positive (green), no indicator is pointing downward, and only one indicator remains in the red zone. The take on the
current dashboard is that the odds are for continued growth in the second
quarter of 2012. The worst case scenario, sans a major disaster, is for the
second quarter to be on par with the first and only slightly larger than the
second quarter of 2011. The strength of the indicators suggests a year-end
number clearly up over 2011.
Keeping an eye on the indicators for changes that will have a positive or
negative effect on the current outlook is critical. Indicators likely to have a
positive impact on the outlook are the capacity utilization figures as we
climb toward 80 percent. The flyer in this area would be the housing starts.
The other is the potential of the Purchasing Managers’ Index (PMI) climbing above 55 in the second quarter, which would signal a likely increase in
manufacturing’s growth rate and signal a stronger than expected third
quarter manufacturing technology orders rate.
On the downside, there are three things to keep an eye on. The top two are:
the possibility of the AAA bond rate moving negatively as political uncertainty creeps into risk assumption; and light vehicle sales which could go
either way in the next 2 quarters. The third one to keep an eye on is the PMI.
It’s expected to remain above 50, but any sudden decline in the index should
be eyed with caution.
The best indicator
The most impactful and accurate short-term indicator for our industry
remains the benchmarking surveys that AMT produces for its members
and participants in the North American manufacturing technology
markets. Looking at the latest information available from USMTO, the
most significant manufacturing technology growth industries in 2011
were machine shops and the oil and gas field machinery industries. They
showed the highest percentage point increase in share of all orders placed
as compared to a year ago of the 27 key market industries the USMTO
program tracks.
If you participate in the USMTO, you can find this information in the
industry reports on USMTO.com. If you participate in any of the AMT
market benchmark surveys, you can retrieve, analyze the trends, develop
slide sets and create presentations by subscribing to MTInsight.org.
The key to either method is participating in AMT’s monthly market
benchmarking reports, which takes only a few minutes each month.
Inside MTInsight, AMT’s business intelligence tool for
manufacturing technology, participants can access
new geographic industry breakouts that show which
states have contributed the most toward the growth in consuming industries. For example, it turns out that Texas had the most significant impact
on the increase in the machine shop industry’s overall gain in national
share in 2011. Texas is followed by Washington, Connecticut, Michigan and
Wisconsin. Questions
If you have any questions about the information presented above or
about AMT member services in general, please contact Pat McGibbon at
703-827-5255 or [email protected].
Market Data Review
See page 4
Page 4
AMT NEWS/May 2012
Market Data Review
Sun
M ay
6
Mon
IMTS 2012
Convince Them in
60 Seconds Video
Contest Opens
www.IMTS.com
7
13
Tues
1
8
14
15
2
Wed
9
16
Thurs
3
10
Fri
4
11
Mini Trade Mission - Chennai & Bangalore, India
May 16 – 18
17
18
5
Sat
12
19
AMT Service & Aftermarket
Support Conference
Crowne Plaza Hotel at Historic Union
Station, Indianapolis, Ind.
20
21
IMTSTV
22
23
28
25
26
1
2
CASG Conference
See the new episode
of IMTSTV
27
24
Hyatt Regency O’Hare
Chicago, Ill.
29
30
31
Regional Meeting Regional Meeting
Cincinnati, Ohio
June
3
4
10
5
May 28 - June 1 – Metalloobrabotka Show - Moscow
6
7
Detroit, Mich.
Chicago, Ill.
Houston, Texas
12
13
14
Los Angeles, Calif.
8
Economics &
Regional Meeting Regional Meeting Regional Meeting Statistics Cmte.
11
9
Hardinge Inc.
Elmira, N.Y.
15
16
Regional Meeting Regional Meeting
17
18
IMTSTV
Charlotte, N.C.
Hartford, Conn.
19
20
21
22
23
See the new episode
of IMTSTV
24
25
26
27
28
29
30
Future Activities – 2012
Cont’d from page 3
Producer Price and Wage Report
The Producer Price Index for Finished Goods increased 0.9 percent in March
to 194.4 (1982 = 100). Compared with the level a year earlier, finished goods
prices increased by 2.8 percent. Prices for crude manufacturing materials
increased 3.7 percent from February and 3.7 percent from a year ago.
The metal cutting machine tool index increased 0.7 percent, and the metal
forming machine tool index increased 0.2 percent. Compared with last March,
metal cutting prices rose 4.8 percent and forming prices rose 3.2 percent.
For more information or for a copy of the complete Producer Price & Wage
Report, contact Russell Waddell, Industry Economist, at 703-827-5258 or
[email protected].
Foreign Trade Report – February 2012
U.S. machine tool exports valued $204.2 million in February, up 17.2 percent
from January’s total of $174.2 million. Exports for year-to-date 2012 totaled
$378.4 million, an increase of 0.1 percent when compared with the same
period of 2011. Monthly machine tool imports valued $421.8 million in February, down 12.8 percent from January’s total of $483.9 million. Imports for
year-to-date 2012 totaled $905.7 million, an increase of 79.2 percent when
compared with the same period for 2011.
Mexico was the leading destination for U.S. machine tool exports in February with $38.5 million, a 35.8 percent increase from January. The second
largest destination for U.S. machine tool exports was China, with $34.1 million, a 29.8 percent decrease from January. Completing the top five destinations for U.S. machine tool exports were Canada ($22.7 million), India ($13.3
million) and Germany ($10.7 million).
Japan ($187.7 million) and Germany ($66.5 million) were the top suppliers of the
U.S. machine tool imports for February 2012. Compared with January’s figures,
Japanese imports decreased by 3.7 percent and German imports decreased by 6.6
percent. Completing the top five sources of U.S. machine tool imports in February
were South Korea ($36.4 million), Taiwan ($30.1 million) and China ($17.7 million).
With MTInsight, you can interactively evaluate the imports and exports of
machine tools by the United States. Discover all of the countries with whom
the United States is trading, scrutinize that trade at the most detailed commodity classification level, and interpret the progression of U.S. machine
tool trade over time. For more information about any aspect of this report or to
make a specific data request, contact Kim Brown, Industry Engagement Manager, at [email protected] or 703-827-5223.
JULY
U.S. Manufacturing Technology Orders
February 2012
July 10 - 24 – Submit designs for the IMTS 2012 Rally Fighter Design Competition - www.IMTS.com
July 26 – Voting open for 1 week to pick the design competition winner - www.IMTS.com
SEPTEMBER
800,000
September 10 - 15 – IMTS 2012, McCormick Place, Chicago, Ill.
700,000
OCTOBER
Please call 888-379-4659 for meetings information ~ Call 800-524-0475 for information on international events
600,000
$ Thousands
October 24 - 25 – Global Forecasting & Marketing Conference - Hyatt Regency, St. Louis, Mo.
500,000
400,000
300,000
Surveys
Cont’d from page 1
nal review, or for your board of directors. The compensation reports
provide detailed information on salary and benefit information, all broken out by the type and level of employee (there are different reports for
the plant worker, professional and executive), or by the companies’ line of
business, product, or sales volume.
Determining what percentile your
company falls into can show your
BOD that, maybe, you need to add to
your benefits package, or that you are
in a position where you can hold the
line on compensation for the next
budget. Or maybe you’ve decided that
it’s time to move your sales staff from
salary-based to commission-based
compensation. The Professional Employee Compensation and Benefit Report will show you how many others
are using the same model, and you
can use that data to strengthen or
change your position.
Or maybe you know that your
company should be more profitable,
but are unsure of where or what to
look at changing. The Operating Metrics Report contains analysis that directly identifies characteristics of
profitable companies, like the relationship between old and new products in a company’s portfolio, or their
backlog, or even their staff turnover.
Every business is in need of ways to
ascertain their status, and benchmarking surveys provide the most
expedient means to do so.
The best thing about these surveys is that they are unique, confidential, and easy—submit your data
online at https://www.amtfinancialsurvey.com. Each company has
a designated administrator who can
see all the survey questions and answers, but that person can parse out
the individual surveys so that only the
HR contact can see the compensation
surveys, and only the CFO can see the
Financial Performance Survey.
So, take advantage of your AMT
membership and participate in the
financial benchmarking surveys! The
reports have many more uses, but it is
up to you to apply them to your company, and if you don’t participate
now, you may need them and have to
pay for them later.
For more information on the 2012
AMT Financial Benchmarking Surveys, contact Kim Montenyohl at 703827-5262 or kmontenyohl@
AMTonline.org.
*The 2012 Sales and Management
Compensation surveys for distributors
closed already. The reports will be
available for sale in the near future.
For more information on how to purchase them or the 2011 DACS report,
please contact Clara Mora at 703-8275276 or [email protected].
200,000
100,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20072008
Total order value
3-month moving average
2009 2010 2011 2012
12-month moving average
February U.S. manufacturing technology orders totaled $444.06 million, up 9.3% from January
and up 35.2% when compared with the total of $328.44 million reported for February 2011. With
a year-to-date total of $850.40 million, 2012 is up 21.7% compared with 2011.
Like What You’re Reading?
Don’t risk losing any of your great AMT member benefits …
◆ AMT NEWS ◆ Access to AMTonline ◆ IMTS discount
Renew your membership today! It’s so easy … just go to www.
AMTonline.org/renewal and login with your user ID and password. Pay online with a credit card, or send in a check.
Have questions or need a renewal form? Contact Kate Fritz at
703-827-5259 or at [email protected].
www.AMTonline.org/renewal
Page 5
AMT NEWS/May 2012
Regional growth highlighted at SIMM 2012 show
Take a sleepy fishing village of
roughly 2,000 residents. Add a philosophical change by a respected national leader. Mix in a growing worldwide marketplace. Sprinkle with
efficient logistical necessities. Then
allow about 25 years to put it all together. The result? The city of Shenzhen, China, in 2012. Now a cosmopolitan city of more than 20 million
residents, inspired by the “one China,
two systems” capitalist experiment
by then-Premier Deng Xiaoping, and
fueled by product demands of global
marketers like Wal-Mart and Apple,
Shenzhen is one of the hottest manufacturing regions in China. Located
in the Pearl River Delta area between
Guangzhou (Canton) and Hong
Kong, Shenzhen hosted the 2012
Shenzhen International Machinery
and Molds Industry (SIMM) Exhibition March 28-31.
AMT member companies participated both in their own booths
and in the AMT/USA Pavilion at
SIMM. A total of 38 AMT companies
were in attendance, which covered
all nine halls of the Shenzhen Exhibition Center and occupied more than
A total of
38 AMT
companies
were in
attendance
at SIMM.
90,000 sm (approximately 900,000
sq. ft.) of exhibit space. The AMT/
USA Pavilion was featured in an excellent location at the center of the
main exhibit hall. Members enjoyed
access to AMT’s private conference
area, an informal meeting area and a
mini-kitchen facility that provided
coffee and other amenities throughout the event. AMT’s Shanghai Technical Center also provided representation for other AMT members via
an information stand within the
pavilion.
Exhibitors in the AMT/USA Pavilion reported outstanding business
activity during the show in a brisk
manufacturing environment. Indeed, as the show closed, reports
from the first quarter indicated an
economic growth rate of 10.1 percent in China.
AMT Co-Chairman Tim
AMT Co-Chairman Tim Dining
accepts an award from the Shenzhen
Machinery Association in appreciation for the support of AMT over the
last several years.
Dining (President & CEO, Greenerd
Press & Machine Company) attended the show and accepted an
award from the Shenzhen Machinery Association in appreciation for
the support of AMT over the last several years. Presented by SZMA President Ms. Huang, the award is now
on display at AMT headquarters in
McLean, Va.
AMT China Chief Representative Xingbin Li observed, “We have
seen this show grow from just a single
hall to nine halls, and the area around
the exhibition grounds from a vacant,
remote area to a downtown business
center with hotels, restaurants and
subway access. It really is an example
in miniature of how this entire region
is growing at lightning speed. AMT
members should really be aware of
the incredible business opportunities
in this area, and AMT’s China staff is
ready to help in every way.”
FOR MORE INFO ON CHINA BUSINESS OPPORTUNITIES, contact Xingbin Li or Knox Johnstone via e-mail at
[email protected] or [email protected].
AMT’s Service & Aftermarket Support
Conference – retooled and revving the engines
By Jerry Adamski
Director, Global Customer Service
– Gleason Corporation
Chairman, AMT Service Committee
Indianapolis will host AMT’s
42nd Service & Aftermarket Support
Conference, May 17-18, 2012, on the
eve of Pole Day Time Trials. This
year’s Indianapolis 500 race is unique
in that all entries will feature turbocharged engines and brand new
model-year chassis. Like those race cars, AMT’s Service & Aftermarket Support Conference is rolling out with a new look.
Not only will the event be more interactive, there will also be a Vendor
Village to showcase the latest products for service operations. The
Global Service Committee planned
the conference to build on the positive feedback gained in 2011, while
also taking into account the suggestions made by attendees for ways to
improve.
In addition to covering topics
that were requested by attendees,
there will also be additional networking and interactive learning opportunities. Please join us to learn
more about: • Service strategies to ensure
customer satisfaction
• Best practices in obtaining,
Do you interact with, serve or depend on customers for your business?
Register Now! www.AMTonline.org/Service
Discover networking, educational and training opportunities.
May 17 - 18, 2012 | Crowne Plaza at Historic Union Station | Indianapolis
managing and keeping your
talent; warranty management;
getting service involved with new
products before they are launched;
and parts management
• Technology to more effectively
help your customers
• How to turn potentially angry
customers into loyal ones
• More useful ways to utilize your
company’s documentation and
“tribal knowledge”
• Marketing your value to grow
your business
Overall, attendees will learn
how to promote the value of their service offerings, and the best ways to
develop and maintain relationships
with customers. They will learn how
to turn service into revenue and a
number of ways to measure success.
This is the only event of its kind
within the manufacturing technology
industry – it’s created for service professionals, by service professionals.
For more information on this event, or to
register, visit www.AMTonline. org/
serviceconf. I hope to see you there.
C & B Machinery has received an order from Allison Transmission for a
new grinding cell. After multiple machine orders for a plant in Chennai,
India, they are bringing this same technology to the United States. C & B
Machinery will build a “flexible” double-disc grinding cell for Allison Transmission in Indianapolis, Ind.
Gleason Corporation has started building their Genesis series of Gear Hobbing
machines at their Gleason Works (India) facility in Bangalore. Genesis models
130H and 210H hobbers are being built for the fast-growing Indian market.
Daniel Janka, President of MAG Global, and member of the AMT Board of
Directors, has been inducted in the Illinois Valley Community College/La
Salle-Peru-Oglesby College Hall of Fame.
Jet Edge, Inc., recently became one of the first U.S. companies to take
advantage of the United States’ new free trade agreement with South Korea,
shipping two containers of industrial ultra-high pressure waterjet equipment valued at more than $700,000 USD to the Republic of Korea.
LVD Strippit has named Dean Arneson to the position
of Sales Engineer. Based in Andover, Minn., he is responsible for the sale of LVD Strippit products in Minnesota,
North Dakota, South Dakota
and northern Iowa. Daniel
Stall has been named Applications Engineer – Laser Products. In this role, he is involved
in a variety of laser sales/marketing efforts, including prodDean Arneson
uct demonstrations, time studies,
applications analysis, software training, trade show
participation and general laser sales support.
Daniel Stall Methods Machine Tools, Inc., will be hosting an open
house June 13-14, 2012. The event, called Metal Storm 2012, will take place at
the company’s headquarters and northeast regional technology center at 71
Union Avenue in Sudbury, Mass. It will feature over 50 machines under
power. Go to www.methodsmachine.com for more information.
SigmaTEK Systems, LLC, announces that SigmaNEST® has been awarded
Autodesk Inventor 2013 certification.
Third Wave Systems will consolidate its two Minnesota facilities, a Productivity Center in Plymouth and its current headquarters in Minneapolis,
into a newly-renovated 12,000 sq. ft. office. The move will enable the company to support an expanding staff and growing inventory, while also promoting a more productive and collaborative work environment. We want to hear from you! What’s happening at your company? When you send out a press
release (or just have some interesting news), please send information to AMT NEWS, Attention:
Editor, 7901 Westpark Dr., McLean, VA 22102; e-mail [email protected].; or go to
www.AMTonline.org/membercms.
Stephen C. Mandes passes away
Long time NIMS Executive Director Stephen C. Mandes has passed away.
He ran the Student Summit at IMTS. NIMS staff remember him as a dear
friend and an inspiring mentor.
If you would like to share your thoughts, memories, and condolences,
you can simply e-mail [email protected].
Purchase the IMTS
2012 app before it’s
released on June 1 & get
IMTS Lite now for FREE.
Page 6
AMT NEWS/May 2012
Targeting
Technology
Request for support on NFPA 79
Electrical Standard
NFPA is organizing for another cycle of updating
the Electrical Standard NFPA 79. AMT holds a seat
on the Standards Development Group that is
responsible for performing this update. For the
past number of revisions, MAG has held this position. We are asking if another member company
would like to take on this role.
Paul Warndorf
To qualify, you must be an electrical engineer involved
V.P. - Technology
in the design of electrical systems. This effort requires
attendance at a number of meetings over the next few years, as well as work
on the development and review of proposed changes to the standard.
If you would like to be considered for this role or if you have questions, please contact Paul Warndorf at 703-827-5291 or e-mail at [email protected].
MPETAC Chair changes hands
After more than a decade of serving on and leading the Materials Processing
and Equipment Technical Advisory Committee (MPETAC) of the Department of Commerce (DOC), AMT has passed the chair position to Paul Webster, Engineering Manager at FANUC FA (Hoffman Estates, Ill). AMT will
continue to play a role and will continue to participate in the group to help
in the success of committee work such as:
1. Introduction and discussion on adopting some level of decontrol for certain 5-axis machine tools. It is now hopeful that an agreement will be
achieved that will allow certain 5-axis machines to be sold outside the
United States without an export license.
2. AMT recently lead, and the MPETAC submitted a proposal to delete the
requirement to get an export license for specially designed components
and parts of deep-hole drilling machines.
3. There has been discussion over the last 4 years on whether there is a need to
introduce export controls on additive materials manufacturing equipment.
The proposal is to require that any machine builder using metal powders
receive an export license before a sale outside the United States.
AMT welcomes Mr. Webster to the chair position and offers assistance to
him as needed. He will be in charge of the remaining 2012 meetings of the
MPETAC, tentatively scheduled for May 22, August 7 and November 13.
These meetings are open to the public and all are invited to attend. Topics
planned for discussion include 5-axis machines, aerostatic bearings, coordinate measuring machines (CMM) and probes and additive materials manufacturing (AMM), as well as other areas covered under Category 2 of the
Wassenaar Arrangement. Your technical assistance and participation provides invaluable insight from the industry to support recommended
changes. It is critical that export control regulations remain effective in our
ever-changing manufacturing environment as new products are constantly
being introduced.
Defense Manufacturing Conference - 2012
It is not too early to plan to attend this year’s Defense Manufacturing
Conference. Somehow, each year, this event just keeps getting better.
DMC 2012 will be held Nov. 26-29 at the Marriott Orlando World Center
in Orlando, Fla. This is one of the best forums to get visibility with key
program managers, defense contractors and to understand manufacturing developments being supported by the DoD ManTech program.
For more information go to www.dmc2012.com.
➦
For more information on the above items, please contact Paul
Warndorf at [email protected] or 703-827-5291.
Future B11 Standards meeting
B11 ASC – July 23-24, 2012 – Seattle, Wash.
If you have an interest in participating in this meeting or would like more
information, contact David Felinski at [email protected].
Tech Time…
Disruptive Technologies: Additive Manufacturing
By Tim Shinbara
Technical Director
I’m Tim Shinbara and I have joined
AMT to help everyone better understand technology developments
occurring around the world. I will
be introducing these technologies
here in AMT News and by other
means. This is the start of a series of
topics I will be discussing.
Over the past 36 years technology’s basic definition has not significantly changed. (Personally, I like
Webster’s 1976 3rd edition: the totality of the means employed by a people to provide itself with the objects
of material culture.) What has
changed is the increasing number of
applications that are now associated
with “technology.” In fact, some of
these new areas of application are so
novel that such technologies have
been described as disruptive to the
current way of doing business; this
time disruptive is a good thing!
Few technologies are truly disruptive. So, how can we identify disruptive technologies? Complete due
diligence may require something on
the order of a cost-benefit analysis of
the current baseline processes to be
compared against other candidate
options. This business case exercise
will give you a quantitative data
point to make a decision — does the
value of any candidate option outweigh the cost of disrupting how you
typically do business? However, a
quick litmus test is to categorize and
then count the number of industries
and levels that potentially could be
affected by said technology. It is on
this premise that I introduce Additive Manufacturing as a disruptive
technology. From aerospace to zippers, from up in outer space to down
within our oceans, additive technologies have begun their genesis into
production manufacturing. The level
of disruption is unprecedented with
respect to the manufacturing of end
products. Additive’s disruption is
appropriately second only to IT
(computing, networking) in consideration of the entire life cycle of all
manufacturing elements.
Additive manufacturing literally builds upon itself to realize geometries that were either previously
cost-prohibitive or impossible to fabricate using traditional subtractive
methods (material removed from
work piece). Referred to as “additive”
due to the layer-by-layer build process whereby a 3-D model can be digitally sliced (think X-Y planar slices of
an object starting at the bottom
and moving its way, in Z, to the
top), this manufacturing method
better enables the designer to design for intended functionality,
not for manufacturability.
There are many additive methods and materials available and it is
suggested that you consider a strategy that marries the right technology
to your business needs. Currently, I do
not perceive additive as a competitor
or substitute for current manufacturing in all cases, but as a complement
to better enable competitiveness for
American manufacturers in the
global market. What the future may
hold is a different story.
AMT is committed to raising
awareness and visibility into such
manufacturing technologies as
additive.
For more information about this
series, contact me at tshinbara@
AMTonline.org or at
703-827-5243.
New faces join Manufacturing Technology Department
AMT’s Manufacturing Technology Department has a new focus and
some new staff members.
The department will begin providing greater insight into technologies that are being investigated or requested by end users relative to
member areas of expertise. This will
include monitoring global research
relative to manufacturing. The department will also work with government entities to further understand
their needs and focuses. For example,
work has begun relative to the recently announced National Network
for Manufacturing Innovation, as
well as the creation of a pilot Institute
on Additive Manufacturing.
The department has also positioned itself to better assist in the area
of software and application needs and
support to members in the understanding and implementation of MTConnect®. The department will also
look into creating a community for
members that provide software products and tools to help understand their
common requirements and needs.
To that end, the Manufacturing
Technology Department has new
staff members:
Tim Shinbara has joined the staff
as Technical Director. His chief role
will be researching, compiling and
disseminating trends in manufacturing technologies to AMT member
companies. He will work to update the
Technology Road Map, a document
that pinpoints where manufacturing
needs are relative to equipment and
accessories, and what manufacturers
are looking for in future capabilities.
Tim Shinbara’s
chief role will
be researching,
compiling and
disseminating
trends in manufacturing
technologies to
AMT member
companies.
Shinbara has a background
working in manufacturing technology R&D in the aerospace and defense industries, involvement in government contractual R&D to support
programs for the F/A-18, F-35, GlobalHawk and others. He developed technologies in additive manufacturing
and related to high-temperature
polymer materials and processes for
the F-35 and also transitioned auto
identification manufacturing supply
chain elements – such as RFID and
RTLS – into manufacturing production facilities.
In terms of assisting members,
Shinbara will focus on helping members become aware of the latest technologies in development, particularly those being produced through
university research programs. He
will look for trends in members’ customer base and will work with the
Global Technology Advisory Board
to identify user needs.
Also joining the Manufacturing
Technology Department is Hilena
Hailu, Project Manager. Hailu will be
the primary representative for AMT
within the MTConnect® Institute and
will work to enhance the MTConnect
communications and connectivity
standard. She will be AMT’s representative for the Technical Advisory
Group and will focus on members that
produce software to potentially form a
committee specific to their needs.
Hilena Hailu
will be the
primary representative
for AMT
within the
MTConnect
Institute.
Hailu has a background in software engineering and worked for
Microsoft for 7 years, in particular
working on Office for Mac as an engineer, as well as infrastructure and
operations for that business unit. She
also had internships with both the
National Institutes of Health and
Lockheed Martin. Her focus at NIH
was developing software for clinical
protocols, while her work at Lockheed Martin was to develop a prototype for a next-generation air traffic
control system, which has since been
implemented.
Page 7
AMT NEWS/May 2012
International Report…
Is the glass half full
or half empty?
As one reads newsprojects in preparapapers and other
tion of the 2014 World
sources of information
Cup and the 2016
about Brazil, the mesSummer Olympics.
sages are confusing and
• CNH, Dynapac, Volvo,
sometimes contradicJCB, Terex and
tory. On one hand, we
Putzmeister are
read that the country is
expanding producMario Winterstein
at the brink of a recestion capacity of their
sion with GDP forecast to Business Development
present plants,
Director
increase “only” 3.5 to 4
investing another
percent in 2012. It is said that the
$600 million.
Brazilian government is introduc- •Sinotruck is investing in the
ing protectionist measures to curState of Santa Catarina to
tail imports and stem the influx of
produce heavy trucks.
cheap goods, mainly from China.
•Shiyan, a subsidiary of Chinese
On the other hand, one hears
company Dongfeng ($25 billion
about the growth of the local
in sales last year) started
manufacturing industry includconstruction of their truck
ing soaring automobile, refrigeramanufacturing plant in the State
tor, alternative energy sources
of Rio Grande do Sul.
and medical equipment produc•Ford is upgrading its transmistion. Foreign direct investment is
sion plant in Taubaté in the State
at an all-time high, the oil indusof São Paulo.
try is investing $250 billion in
•Meritor, in partnership with the
drilling and processing equipBrazilian company Randon, is
ment, and new plants are popping
setting up a plant in the State of
up all over Brazil to satisfy inRio de Janeiro to supply the
creased domestic demand for dutruck plant of MAN.
rable and consumer goods alike.
•Toyota is building their first fork
Sometimes it is easy to overlifts plant in the State of São
look that what some construe as
Paulo. They will start producing
bad news others see differently.
5,000 units per year.
For instance, despite being pro•Bombardier started building
tectionist by making it more diffitheir monorail train plant in
cult to import certain low cost
Hortolandia in the State of São
products of dubious quality and
Paulo. Fifteen suppliers are
safety, the measures also provide
setting up shop in the area to
incentives for companies to mansupport Bombardier in this first
ufacture those goods in Brazil
plant outside North America.
thus increasing the demand for
While Brazil is not an easy
manufacturing technology equip- market to penetrate, these projment. The GDP slowdown does
ects will require a lot of investnot necessarily reflect a slowdown ment in machines and manufacin durable goods production or
turing technology equipment.
the investment in manufacturing
AMT members can take advancapabilities, but is an indication
tage of these opportunities by folof a reduction of the output in
lowing some key guidelines:
other areas like mining, agricul•Make a firm commitment to
ture, etc. due to the drop of desupport the Brazilian market
mand for international
and its customers
commodities.
•Offer a product with a sound
Here are some examples of
value-proposition that works for
recent announcements that
Brazil
should reassure anyone in our
•Have a solid and competent local
industry about the opportunities
representative
that abound in Brazil:
•Provide exceptional service and
•Caterpillar, John Deere, Manitotechnical support
woc, Sani, XCMG, Doosan and
•Visit your customers frequently
Hyundai announced investments of about $1 billion in new
plants by the end of 2013 to
manufacture construction
equipment to meet increased
demand due to infrastructure
For more information about the
Brazilian market, contact Mario
Winterstein at mwinterstein@
AMTonline.org.
Service & Aftermarket
Support Conference
May 17 & 18
See page 5
Business Development
Hi! We’re Business Development.
How can we help you?
So, give me your honest answer
to this question: How well do you
know the Business Development
department at AMT?
A lot of times, when people first
see “Business Development,” they
think of it from an association
standpoint and mistakenly assume
that it means we’re here to grow
AMT’s membership. In this case,
however, our department exists to
do business development for you,
the member. Our fundamental job is
to help member companies be
strong and successful – building
healthy profits and good cash flow.
So what are some of the ways
we go about that? Business Development is really divided into two
major areas – consultative services
and market resources.
In terms of consultative services, this is where the BD staff essentially takes on the role of consultant for our industry. Our staff
members have extensive overall
business experience within the industry, global experience with many
international markets and a thorough understanding of many disciplines within manufacturing. We
use that experience on behalf of our
Jeffery Traver
V.P. - Business Development
members for business review days –
dedicated single-day strategic consulting sessions that cover a range of
topics, including accounting, legal,
finance, as well as operational issues
from inventory control through
product portfolio management.
In terms of market resources,
AMT has a great portfolio of international services to assist members in
expanding their businesses globally.
We have physical facilities and personnel located internationally to help our
members export their products. This
includes two sales offices (Beijing and
Guangzhou) and a Technology and
Service Center (Shanghai) in China; a
Tech Centre in Chennai, India; a Tech
Center in Mexico; and a representative
in Poland. Through these offices we
try to help members identify their
customers in those markets, identify
appropriate distribution systems, and
work within local laws, culture and
business practices to make sales.
Our three Tech Centers have
showroom facilities, office infrastructure, and proxy hiring services to help
members find local employees for
roles as varied as service engineers
through sales professionals. The Tech
Centers also offer meeting facilities
for clients, as well as service engineers. Participating member companies are also offered assistance in
exhibiting at international trade
shows in those regions.
Beyond this physical infrastructure, it’s really about the people
behind it — our country managers
are experts on selling manufacturing technology into some of the biggest global markets.
If you’re a member of AMT and
you need an independent look at ways
to improve your business, or help
with specific issues such as penetrating an important global market, it’s
easy and free to use your association
resources in Business Development.
Get to know us! We’re here for you.
Feel free to e-mail me at jtraver@
AMTonline.org.
New hire in Business Development
Sofia Schramm has joined AMT
as the Assistant to the VP-Business
Development.
Schramm will be responsible for
a number of functions in her role, including financial analysis related to
functions within the department to
make sure they stay on budget and to
watch for discrepencies. She will also
help with Business Development-related functions in preparing for IMTS,
such as managing booth invites and
®
Registration for Technical
Advisory Group meeting
Registration for the second MTConnect® Technical Advisory Group
(TAG) meeting of the year is now
open. The meeting will be hosted by
ITAMCO at the Swan Lake Resort in
Plymouth, Ind., on June 19-20, 2012.
Discussions will include enhancements for Version 1.3 of the standard
and the inclusion of information
concerning the tracking of parts. The
TAG will also discuss this year’s
[MC]2 MTConnect: Connecting Manufacturing Conference to occur in
November 2012 and recommendations for speakers and sponsorship
levels.
If you are interested in becoming a
Sofia Schramm’s
primary focus
will be financial
analysis.
sending letters of invitation.
“I’m really looking forward to the
prep for IMTS,” Schramm said. “I have
attended some trade shows as a model
and spokesperson, so to be behind the
scene and see all the planning is exciting. I’m also looking forward to doing
some financial analysis work.”
Schramm previously worked at
the construction firm AMRW and
also Exxon-Mobil.
Originally from Barcelona, Spain,
Schramm moved to the U.S. at age 10.
She received an economics degree
from George Mason University.
MTConnect update
TAG member and attending this meeting, please visit www.MTConnect.org.
For further inquiries, contact Paul
Warndorf at 703-827-5291 or [email protected].
MTConnect.org web site
changes
The MTConnect web site continues to undergo changes to improve its usability, with many of the
changes scheduled to occur during
the month of May.
If you have any questions or recommendations, please contact Hilena
Hailu at 703-827-5293 or hhailu@
mtconnect.hyperoffice.com.
Online user forum under
development
A Users Group forum is being
established for the MTConnect community. The institute will help in this
effort by creating, for the group, an
online user forum web site. Once the
site is up and running, anyone will
be able to ask questions or exchange
ideas about MTConnect. The Users
Group idea was a recommendation
that came out of the last MTConnect
TAG meeting. The Users Group goal
is to establish a sense of community
among those who are interested in
or are implementing the standard.
If you have any comments or recommendations, please contact Dave
Edstrom at 703-827-5211 or [email protected].
Page 8
AMT NEWS/May 2012
Ellison
Cont’d from page 1
Jim Ellison
significant Association membership growth and influence.”
The Ellison legacy with AMTDA
began with Jim’s father, J.O. (Jim)
Ellison who was Chairman of
AMTDA in 1958-1959, and began
the Ellison Company in 1955. Jim
became president of Ellison in
1968 and diversified the company
into new ventures such as accessories through SMW products, as a
machine tool builder at Tree Machine. Jim was the first distributor
to incorporate service and appli-
cations engineers as part of being
a total systems integrator. Jim
was also very active in attracting
new talent to the industry, spending time with Michigan State University to launch their Industrial
Distribution Program, as well as
starting the MBA mentoring program at UCLA’s Anderson School
of Management.
Today Ellison Technologies is
the largest machine tool distributor, with 21 locations across the
United States and Canada and has
over 500 employees.
Tim Kilty states, “Jim has
served as a terrific model for me to
follow, but more importantly, he is
a special friend. It is an honor for
me to succeed him as Ellison CEO.”
“Jim has always been a strong
advocate, not only for manufacturing in the U.S., but also for the
importance of distribution as the
best method of sales and support
for the customer. Jim’s vision and
leadership have been remarkable
and noteworthy for the industry
and for AMTDA. “Jim is a true gentleman,” added Borden.
The honorary membership
award has been made to five individuals in AMTDA’s 87-year history and was most recently presented to Marcus Crotts of Crotts
and Saunders Engineering in
2009.
AMT members earn 2011
Professional Development Award
The Distribution Work Group…Focused
Over the past few years, members would occasionally ask me,
“What does AMTDA do for
members?”
Our elevator pitch declared
that, for 85 years, we have provided
members with a competitive advantage by providing programs to improve their company’s operational
efficiency, with industry information
and statistics for better sales, with
training and educational tools for
better employee performance and
with superior networking opportunities and communications tools.
BUT, every day, we received and
continue to receive lots of specific
questions such as:
• Where do I find a machine that
does…?
• Where do I find new sales/service
personnel?
• How do I solve this HR/insurance/
contract/etc. issue?
• How can USMTO help me?
• How do I find distributors that can
Peter Borden
Strategic Initiatives Officer
help me with this niche product?
• What are you hearing about this
technology/company/trend etc.?
And now at the new AMT, I
believe we can focus on more of your
needs and provide you with more
answers to these issues. Specifically,
the Distribution Work Group is
working on:
• Integrating the former AMTDA
members into the other programs
of AMT
• Starting more Leadership Forums
to help your companies groom the
next generation of industry leaders
• Bringing more users and technologies into the USMTO reports
to make them even better
• Improving training tools and
updating the CMTSE Program
• Helping smaller companies to
effectively use new technology tools
• Improving the imX event model
• Creating a Smartforce initiative
that brings more people into the
industry and helps you recruit
more people to this business
• Advising members with marketing issues
• Growing dialogue between
builders and distributors
• Spending more time with
members to discover new needs
Just as you Google for answers
every day, I believe that AMT can be
the Google for machine tool dealers
and builders to improve their performance and their profitability.
Keep in touch with me at pborden@
AMTonline.org.
Additive Conference provides 5 days of information
Q: What new manufacturing technology has been written up in the last
month in the Economist, the Wall
Street Journal and USA Today?
A: Additive manufacturing
The Additive Manufacturing User’s Group (AMUG) held their annual
meeting in Costa Mesa, Calif., April
22-27. More than 250 users, OEMs,
suppliers and other industry people
met for 5 days of information, networking and fun as they have for more
than 15 years. This dynamic group
has a highly dedicated group of leaders who are passionate about this
growing industry. Over a third of the
attendees were new.
The meeting featured keynotes
and breakouts that were informative
for old and new users alike. Most
were from the United States, but others were from around the globe.
AMUG has been working with
ASTM and now ISO and NIST to create
standards for this technology which is
now under the F42 Standard. It has
created criteria for design, test, materials and processes and terminology.
Additive manufacturing goes by
many names: SLS, DMLS, SLA, FDM,
Rapid Prototyping, Laser Welding,
Directed Energy Deposition (by powder or wire), Powdered Bed Fusion
and others. There is NO agreement on
what the name should be.
Many large OEMs and job shops
have jumped into this to speed the
process of prototyping, as well as to
quickly make tooling and fixture components for their shops. We saw some
remarkable case studies for all kinds
of applications. Parts were made from
plastics, resins, composites and metals hard enough for aerospace parts
and accuracies and repeatabilities are
getting down to +/- .002” or better.
At IMTS, in the Emerging Technology Center (ETC), you will be able
to see some of these new technologies on display. We encourage you to
come and learn how these processes
might help your business.
[email protected]
Seven CMTSE candidates pass
the CMTSE exam in April
By Greg Jones
Vice President, Smartforce Development
Pictured from left to right: Pete Borden, AMT; Tim Kilty, CEO, Ellison
Technologies, Inc.; Christie Lincoln, Marketing Director, United Grinding
Technologies; Brad Morris, The Morris Group Inc.; and Brian Papke, President and CEO, Mazak Corporation.
At The MFG Meeting in March
in Orlando, Fla., Pete Borden, Strategic Initiatives Officer, awarded
the 2011 Professional Development
Award to four AMT member companies. The companies earned the
award by demonstrating a consistent effort in continuous education
and training by encouraging their
sales people to seek Certified Machine Tool Sales Engineer (CMTSE)
certification, in addition to placing
considerable effort in their training
programs across all job functions
and titles.
Mr. Borden presented the
awards to Tim Kilty, CEO, Ellison
Technologies, Inc.; Christie Lincoln, Marketing Director, United
Grinding Technologies; Brad Morris, The Morris Group Inc.; and
Brian Papke, President and CEO,
Mazak Corporation.
The award has been presented
in the past to Hartwig Inc., and
Hurco Technologies, Inc.
The Certified Machine Tool Sales
Engineer (CMTSE) program is the only
nationally recognized program
that acknowledges individuals who possess the skills
and knowledge needed to
perform effectively as machine tool sales engineers.
Today, over 850 individuals have earned the designation through a combination of
practical experience, formal study
and successful completion of a comprehensive, nationwide examination.
The CMTSE program is supported by AMT - The Association For
Manufacturing Technology, The National Tooling and Machining Association (NTMA), the Precision Metalforming Association (PMA), The
Machinery Dealer’s National Association (MDNA) and the Canadian
Machine Tool Distributors’ Association (CMTDA).
CMTSEs demonstrate their
knowledge in areas including:
• Machine Tool Design
• Capital Investment
Justification
• CNC Technology &
Machine Control
• The Selling Process
•Cutting Tool Technology
•Responding to Customer Needs
•Metalworking Technology
•Territory Management
•Machine Tool Accuracy
•Business/Commercial Practices
AMT recognizes and congratulates the following new CMTSEs:
Crotts & Saunders Engineering, Inc.,
William A. Beck, Sales Engineer, Winston Salem, N.C.; FANUC FA America,
Mark D. Brownhill, Program Manager,
Machine Tool Distrib., Earlysville, Va.;
Hurco USA, Michael Cope, Applications Engineer, Indianapolis, Ind.;
Hurco USA, Jason R. Falk, Application
Engineer, Brownsburg, Ind.; Crotts &
Saunders Engineering, Inc., Chris P.
Miller, Sales Engineer, Winston Salem,
N.C.; Eurotech Elite, Roy M. Selway, Regional Sales, Spring Hill, Fla.; Mazak
Corporation, Aimee Shandy, Product
Specialist, Florence, Ky.
The deadline for registering for
the next CMTSE exam is May 31,
2012, and the exam will be held on
July 18, 2012.
For more information about
becoming a CMTSE, Contact Clara
Mora at 703-827-5276 or cmora@
AMTonline.org.