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February 2006 Precisely Canadian is produced by the Canadian Machine, Tool, Die & Mould Federation, a Cooperative Initiative of CAMM, CTMA, CPMA and the Mould Makers Council of CPIA.
The Goal of the Federation
is to Address as a Unified Force the Issues Common to Each Member
Association.
Table of Contents
Conservatives Could Be Supportive of MTDM IndustryED BERNARD Canada now has a new minority government which we all hope will prove to be more supportive of the MTDM sector than the Liberals were. We really need some leadership directing our country. Part of the Conservative platform included improvements to the SR&ED ITC Incentive Program. Members of the Federation Board met with Conservative leaders prior to the election to confirm our support to the party and to solicit their support to our industry. With your help, or at least those of you who participated in our recent survey, we have identified the top 30 problems plaguing our industry. We will be continuing to work toward solutions for these concerns but we need everyone who is able to join with CAMM and CTMA and CPIA Mold Makers Council to support our Canadian MTDM Federation. It appears that we have the attention of government on all levels and the importance of our sector is being understood better than ever before but finding ways to bolster our sector remain difficult to define.
Once we’ve addressed the most important issues on our list, we’ll turn our focus to the next most important. Our companies have weathered the “perfect storm” but there are more tsunamis on the horizon. Despite the efforts of so many of us, our sector still remains too fragmented.
In recent years the metal cutting machinery sector has greatly consolidated and competition in that field has driven rapid advances in MTDM technology. This technology can be purchased by anyone, anywhere.
A speedy operator, with skill in state of the art software and high speed CNC machining making $30 an hour, can easily outperform 100 speedy operators with skills using chisels and hammers making $0.30 an hour. Our challenge lies in the fact that third world governments have recognized the same needs that we are identifying here and they are subsidizing their emerging MTDM sector with brand new state of the art software and high speed CNC machining centres, while our MTDM sector struggles to reinvest in new technology with extremely narrow profit margins and not enough assistance from our government. We currently have the experience to be able to apply more rapidly new technologies, than regions that are at earlier stages of MTDM development, but as we saw with decades of Russian Olympic athletes who were given more opportunity, with top-notch equipment to practice, than our local “unprofessionals,” they took home a lot of “gold.” We are in a global race and, except for our experience, we appear to be the underdogs. Our government wants to help us but we haven’t been able to find a way for them to support us using existing programs.
Perhaps we are nearing a time that our industry will have to consolidate, like so many others before us. ed@bernardmould.com (CMTDMF)
UK Group Tries to Solve Ongoing Payment Concerns of IndustryLikely one of the oldest “prodders” to do something is to see your counterparts “doing something.” Their efforts either offer a solution, or what not to do. Here’s a development, by the UK’s Gauge and Tool Makers Association relating to a very pressing concern, to improve the payment terms with automakers. The GTMA’s initiative is still unfolding.
In response to member requests, the GTMA, in association with Barclays Asset Finance, has launched a tool-leasing program. The program is supposed to allow tool makers to offer press tools, mould and die tools to their customers on a lease basis, financed through Barclays.
“This is another ‘brick in the wall’ of our overall supply chain strategy,” says GTMA business development manager Alan Fairweather. “(We are) providing GTMA members with the contacts and infrastructure to strengthen their position in their selected sector supply chains.”
The new program is supposed to improve the cashflow for tool makers. It allows a customer, a Tier 1, Tier 2, or OEM company, to amortize the cost of the tooling over several years.
This could include arrangements to cover maintenance of the tool.
And, the leasing program provides a potential marketing advantage to both supplier and purchaser by reducing project risk and the cost of finance. The GTMA says both of these are currently factored into quoted prices.
This financial initiative has been timed to be compatible with the establishment of the GTMA Buyer/Supplier Network that will be launched this year and begins with a three-month pilot scheme for members in southeastern England. It is not necessary for any of the parties to be a Barclays account holder in order to participate in the program.
MoldMaking Technology's Show in Novi, Michigan Coming Up QuicklyThis is a busy year for trade shows and conferences, just within North America. Coming up very soon is the MoldMaking Expo which is presented by MoldMaking Technology magazine. Both are now owned by Gardner Publications and this is its first full year for the show. The basic details are April 25-26, 2006, at the new Rock Financial Showplace, formerly the Novi Expo Center. The Lead Time Leaders Awards ceremony follows with an evening of casino games, entertainment and prizes.
Now for the Expo Basics:
Engel Technology Expands Capabilities of All-ElectricsIt seems that advances in injection moulding equipment ignore the basic function of processing and controlling a resin for a mould. To offset that dilemma, Precisely Canadian will talk from time to time about advances in specific injection moulding machinery. In this issue, it’s Engel’s turn which replied to our request to explain its latest advances. The company talks about X-MELT which further expands the capabilities of all-electric injection moulding. The technology is appropriate for the high-speed moulding of precision thin-wall or thin-section parts using highly engineered thermoplastics. Engel’s proprietary X-MELT expansion melt technology can be used in full production to mould thin-wall, lightweight parts, with a wall thickness of just 0.011 to 0.019 in. (0.3 to 0.5 mm) with an injection time of 0.08 sec. The thought has been that a dedicated micro-molding, or hydraulic accumulator-driven machine, was required for these parts.
Alternatively, this shut-off can be integrated into a hot runner system. Positioning and maintaining the screw at the set position, under high pressure, requires extremely precise control of the machine’s injection unit. Engel developed the X-MELT process to fulfill that requirement for its E-Motion, all-electric machine line. Engel Canada Inc. has some test figures. If you’d like that information, a contact is Joachim Kragl, manager, processing and technologies, email: Joachim.kragl@engel-ec.com, phone: 519 836-0220, ext 2315. Mention you are responding to an article in Precisely Canadian. Engel’s website is www.engelglobal.com.
Indian Auto Show Impresses by the Players and Market GrowthLast month’s Auto Expo 2006 in New Delhi, India, can correctly be described as Asia's largest automotive show. The event is organized by the Automotive Component Manufacturers Association of India (ACMA), the Confederation of Indian Industry (CII), and the Society of Indian Automobile Manufacturers (SIAM). The event is also supported by the Association of State Road Transport Undertakings, and the All India Motor Transport Congress.
The event attracted delegations from 20 countries and visitors from 65 countries, including 24 vehicle manufacturers. The major exhibitor was Germany, followed by Taiwan, the UK, Italy, and the largest-ever presence by the Indian Auto Component Industry.
Auto Enterprise 2006 for small enterprises in the automotive sector was held simultaneously for OEMs and associated industries to exhibit their latest innovations. This show within a show offered opportunities to buy or sell technology “know-how,” and interact with the leading policy makers of global auto manufacturers.
The product profile at Auto Enterprise 2006 included automobile components and accessories, electricals, automobile air cooling systems, tires and tubes, dies and moulds, tooling, safety equipment, testing and pollution control equipment, materials for the automotive industry, petroleum products, lubricants, sub-assemblies, garage and service equipment, car-care/decorating.
Magna International showcased its Magna Innovation Lightweight Auto concept vehicle. The MILA combines an eco-friendly compressed, natural gas 150 hp engine with a high performance.
Magna Donnelly, an operating group of Magna International Inc., announced its joint venture in India with Lumax Automotive Systems. The new venture, Lumax Magna Donnelly Automotive Mirrors Pvt Ltd., will manufacture and supply interior and exterior mirrors to OEMs.
Magna's other divisions, Magna Steyr, Magna Powertrain and Magna Cosma, were present in full force to explore business opportunities.
The other Canadian companies who visited the show were Multimatic, Concord and ATFCan, Ottawa.
In 2004-2005, the annual production in the Indian automotive industry of all segments was 8.3 million by the numbers. Production is going through an exponential increase because:
Canadian companies can leverage the Indian advantage by:
Software Technology Maximizes Effectiveness of Team Approach
For Nypro, an expanded role in the supply chain required closer collaboration from customers, suppliers, and partner manufacturers. PTC’s Windchill ProjectLink laid the groundwork for this new model of partnership.
Within 18 months of acquiring the technology, the seat count increased by ten-fold and is now used by Nypro employees, suppliers, and customers in at least 15 countries ranging from Asia to North America to Europe to Latin America. PTC’s Quick Start was used to get the system installed, tested, trained, and into production successfully in six weeks.
Pavilion for Mould Makers at NPE Has Prime PositionVisitors looking for design and tooling solutions at NPE 2006 will discover a wide range of alternatives within a new multi-exhibitor pavilion for mould makers from the United States, Canada, and Mexico. (Got those show dates: June 19-23 at Chicago’s McCormick Place.) The North American Moldmakers Pavilion will be the first such pavilion at an NPE and is jointly sponsored by the SPI Moldmakers Division, the American Mold Builders Association (AMBA), and the Canadian Association of Moldmakers (CAMM). However, you will not see a row of mould makers from countries such as Taiwan or China. This is a pavilion for North American mould makers. “The North American Moldmakers Pavilion will expand the range of mould making options available to visitors beyond the already extensive array of tooling-related companies that normally exhibit at NPE,” says Walt Bishop of SPI. “The pavilion provides an attractive opportunity for newcomers, particular smaller companies, to display their capabilities at NPE.” Those incentives to exhibit in the pavilion include a 25% lower space fee than is normally charged to companies that are not members of SPI, a high-traffic location in the East Hall, and signs and displays for the pavilion placed prominently throughout the Grand Concourse of McCormick Place and the promenade to the East Hall. MoldMaking Technology magazine is presenting a conference on business and strategy topics of interest to mould makers. As at previous NPEs, the 2006 show will attract visitors from a wide range of companies that buy moulds, specify mould design, or work with mould makers on product development, according to Jeanette Bradley, executive director of AMBA. Ms Bradley makes a good point when she says that by combining the exhibits of many mould makers in one area, the North American Moldmakers Pavilion will provide easy access to tool making solutions for custom moulders, product designers, and OEMs from around the world. The pavilion will also showcase the capabilities of North American mould makers to visitors from overseas, according to Cyndi Butcher, president of CAMM. “A number of our members, particularly the smaller mould shops, do not normally have the opportunity to meet face to face with prospective customers from abroad. The North American Moldmakers Pavilion is a way for these companies to take part in a world-scale trade show.”
Report on Medical Show Offers Insights on New MarketsPrecisely Canadian asked for a wrap-up of last fall's ComPaMED. This trade fair for medical device suppliers was held parallel to MEDICA at the Düsseldorf Trade Fair Centre. Innovation, as shown by the materials, miniaturized components and increasingly complex systems, is an important driver of this market. The full report is interesting because it shows off new applications for plastics and that means new business opportunities for Precisely Canadian's readers. The market also seems to be very much about complex systems. Here are just a couple of the trends and products that were on display:
ComPaMED attracted over 300 exhibitors and more than 9,000 specialist visitors. The next ComPaMED in Düsseldorf will be held Nov. 15-17, 2006; MEDICA Nov. 15-18, 2006. The respective websites are www.compamed.de and www.medica.de.
In-Bound Trade Mission With Mexico Continues Successful PatternJust before the Christmas rush, the Canadian Consulate General in Monterrey along with the federal government’s Ontario Regional Office and Ontario Exports organized a buying trip to Ontario for three companies from Mexico’s plastics industry. These processors from the Monterrey region were looking for suppliers of injection machinery, injection and blow moulds. You might recall there was an outbound mission to Monterrey last June which was preceded by a virtual trade mission. For the November event, individual programs were prepared which meant that each company met with the appropriate group of Canadian suppliers according to their specific needs. Preliminary results indicated that:
The president of Contenedores IEM is the current president of a plastics association in Monterrey. The group is developing a technology park where training, technology and best practices will have a major role.
Use Electronics to Connect Even More So With TechnologyLast fall, Makino produced a very successful trade and conference event outside of Detroit. Now, it is offering new and existing customers, the chance to advance their metalworking capabilities with a series of on-line seminars. There wasn’t unfortunately very much advance notice so some have already taken place however there are more to come. The seminars are archived at Makino.com for you to view later. “We'll use this as a continuously-updated tool for shops to train new employees and implement new processes,” says Mark Rentschler, marketing manager at Makino. The seminars are ideal for operations involved in production machining,
“We’ll show people how to get the most out of their machine tools and processes, without requiring them to set foot outside their shop,” says Bill Howard, product manager, vertical machining centers, for Makino. Howard will be a presenter several times in the 2006 series, including “Competing Globally in the Die/Mould Market” on February 16 and “Hard Milling Solutions” on March 9.
Upcoming seminars are listed on the Makino website at www.makino.com/events. The site lists both on-line and in-person seminars. All that is needed to participate is an Internet connection on a computer that has audio capabilities such as a sound card and speakers.
Innovative Pavilion at NPE Addresses Emerging TechnologiesA multi-exhibitor pavilion at the NPE 2006 will explore four technologies that will have a major influence on the plastics industry. NPE is of course sponsored by SPI and runs from June 19 to the 23rd at Chicago's McCormick Place. (Those dates mean it’s time to book your hotel space.) The New Technology Pavilion will be organized around innovations or technical issues deemed by SPI to have broad implications in the plastics industry for years to come, according to Lynne Harris, SPI's vice-president of science and technology. These include four themes: Nanotechnology: Tiny fillers that could yield big dollars. By incorporating filler particles of molecular size in polymer matrices, materials scientists are creating new types of nanocomposites that expand the performance of plastics. You’ll want to find out their affect on the resin’s processing nature, and how it affects the mould design. Other themes: bioplastics: innovative resins from abundant sources; energy efficiency at a time of increased fuel costs; recycling, because of a resurgence of conservation mandates. Each of the first four days of NPE 2006 will be devoted to presentations on one of the themes in the pavilion. “We have set aside a large and prominent area in the South Hall of McCormick At least 2,000 companies are expected to exhibit at NPE with one-third of them coming directly from outside the U.S.A. That means you have a chance to see many, many new suppliers, all in one shopping trip. Also, don’t forget to sign up to receive the NPE Advisor newsletter. I just received my first copy. Very helpful. And, when you check out the NPE site at www.npe.org, check out the pavilion for mould making. (At press time, Precisely Canadian was told Federation members are entitled to a special rate to exhibit in the Government of Canada/CPIA pavilion. This special rate applies to other events by CPIA. For details, contact Ms Sally Damstra at sdamstra@cpia.ca, or Ms C. Entine at centine@cpia.ca.
Articles in Leading Magazine’s Newsletter Have Ongoing RelevanceHaving gone through more than a few websites for the December issue of Precisely Canadian, a series of articles carried in the newsletter of Modern Machine Shop a while back came to mind very quickly. The articles talk about what your website should say. First point: If your business is being judged against two others for the same project, and the prospective buyer only finds a listing of equipment for each company, their tolerance capabilities, length of time in business…then that’s all you will ever be judged on. So don’t just list your equipment. Say what you can do with it. Give examples of what you have done to serve the needs of your clients. Second point: In a survey with major customers, the remark was made that machining capability can be bought. Customers are looking for dependable, technically proficient partners. They’re more interested in what is done with the equipment, within the overall system, that is the business itself. To read the full insights, use the following links:
Industry Events for the TDM Players
Workshop Focused on Cost-Effective Production of Auto PartsA customer workshop hosted by the Polyurethanes Business Unit of Bayer MaterialScience AG last fall in Heiligenhaus near Ratingen, Germany, focused on the production of instrument panels for automobiles. The guests saw the back-injecting of outer instrument panel skins with the polyurethane foam system Bayfill®, and the latest trends in mould construction, processing technology and quality assurance. The two-day event attracted about 50 participants. To kick off the event, guests were taken through the Technical Service Center facilities in Leverkusen where they saw instrument panels for the Volkswagen Golf manufactured in a closed mould using a Bayfill polyurethane mixture that cures in 60 sec. Production in an open mould was also explained using a video on a multi-media wall. Partner companies gave talks on the advances made in mould construction and processing technology. Rupert Hune from WIS Tooling GmbH presented electrically operated foam moulds which are reported as combining superior ergonomics, easy operation, high productivity and a low maintenance. Gero Willmeroth from Hennecke GmbH, a wholly-owned subsidiary of Bayer MaterialScience, reported on polyurethane processing in high-pressure machines. He gave a detailed explanation of the process used to backfill the skin with Bayfill on a rotary table and TransFlex equipment. In addition to its own polyurethane processing equipment, Frimo Lotte GmbH showcased a new technology for producing grained Class A surfaces which is based on a further development of the negative thermoforming method. This Frimo In-mold Graining Technology (FIT) involves a cost-effective method in which three-dimensional PVC, ABS or TPO (thermoplastic polyolefins) skins are first produced by means of thermoforming and are then given a texture.
Suppliers News and Advances in BriefIt’s been a busy time for Progressive Components. A few weeks back it announced its first edition of an electronic publication, Tooling Product News, at http://www.tooling-product-news.com. TPN was formerly a tabloid, North American Tool & Mold Making Product News. Progressive has a sister publication, Tooling Press Release, formerly the the Tooling Progress Report, http://www.tooling-press-release.com. TPN will offer the latest product offerings from vendors around the world. Progressive Components Canada has also made an announcement with the appointment of Innocente Fabbro as sales manager with Cy McGrath as Progressive's general manager in Canada. Fabbro will be based out of Montreal. McGrath said that this new team will be evaluating new locations across Canada to better serve the company’s customers. Progressive’s website is www.procomps.com. In mid-January, according to a report in a European newsletter, Planit Holdings acquired the Pathtrace organization. Planit is a holding company for a range of software businesses in global CAD/CAM markets and has furthered its strategy of CAM consolidation with the acquisition of CAM software specialist Pathtrace plc. There’s another software purchase with DP Technology Corp. acquiring Auton. DP Technology Corp. has merged its Esprit CAM software for milling, turning, wire EDM, and multi-tasking machine tools with the complementary Auton CAM system for 3-axis, 5-axis, and high-speed machining. DP Technology’s website is www.dptechnology.com.
Share Your Industry Humour With Your AssociatesSeveral years ago, I did a 50th anniversary issue for the plastics industry. My research had me heading off for the Rare Books Library at the University of Toronto where I would go through back issues of a plastics magazine. I was expected to treat the issues, some going back to the 50s, as carefully as I would a book from mediaeval times. A meeting to plan the anniversary issue included the late Ron Evason, president of SPI Canada, now CPIA, who talked about an ”expanding” belt, made from a material that just stretched and stretched. Very encouraging I guess for those were dieting, or maybe the other way around. Many of you should have a story, a tale or two. You are welcome to share it with your associates in Precisely Canadian. A bit of humour in tough times is always welcome. With your permission we’ll publish them in subsequent issues. Your company can be identified or not so. Your choice. A few sentences or more are welcome.
Progress Continues on Multi-Stakeholder CouncilAt the conclusion of the Great Lakes Manufacturing Forum last March, participants agreed to work together for the benefit of the manufacturing industry in the Great Lakes region. There have been three teleconferences since then, during which key representatives of the seven Great Lakes States and Ontario have been working to design a body to define and promote an agenda for manufacturing in the Great Lakes region. Most of the participants have been partners from the very beginning, helping craft the concept of the Great Lakes Manufacturing Council. For several months the council has been moving forward with this project, bringing together a multi-state, international executive body to drive the concept forward, helping form the council at large. This body is referred to as the Secretariat. Significant progress has been made in defining the council. The schedule calls for a general council meeting in Chicago for late March. This event will be used to present the ideas developed since the Forum, and establish the Council for Great Lakes Manufacturing as a permanent institution, with defined purposes and processes.
Your Literature is Next Best to Being There for Trade ShowsThis year has begun with what seems to be trade show after trade show with a pace that has kept the Canadian Plastics Industry Association and the Government of Canada very busy. For the first time, Canada’s plastics industry has a national pavilion at the Plastindia trade fair, that takes place this February in New Delhi, India. If you’d like to start your entry into this country or others where there is a Canadian pavilion, consider introducing your company through your literature. Yes, there’s your web but face to face is still best and your print material is a good alternative. The price for this “exhibit” is modest. For example, for the Plastindia event, the cost was $200 (US) for CPIA members and $300 (US) for non-members. That amount covers 100 pieces of your literature. There is even a poster option. Plast 2006 which also takes place in February offered this option as well through CPIA and also had a revolving exhibit area which allows you to exhibit for part of the show. Show dates and location are February 14-18, 2006 in Milan, Italy. Canada had an information booth at the latter show the last time it was held in 2003. Based on very positive feedback from the 2003 show, it was decided to have an expanded presence this year with a mini-pavilion. It is offering rotating exhibitor space to Canadian companies. Companies have their own exhibit space within the pavilion for one or more days, depending upon their interests and the overall demand for space.
By the Stats, Industry Adjusting to Increased Value of DollarThe following update comes from a regular newsletter by Industry Canada’s John Margeson. Margeson reiterates a fairly common experience that despite significant economic challenges due to the increased value of our dollar, the volatility in resin prices, and certainly increased competition from developing countries, the plastics industry has “generally fared well.” Shipments were up in all three published sub-sectors compared to the same period in 2004. Two-way trade expanded in all areas except for a decline in the imports of moulds. Margeson suggests that the more rapid growth of imports (exclusive of moulds) against exports is likely due to the higher value of our Canadian dollar. Cumulative shipment, export and import data for each of the four sub-sectors up to the end of the third quarter is shown below, along with the percentage change compared to the same period in 2004.
Industry Expert Looks Beyond the Grit of Change in AutoDennis DesRosiers is a prolific author on the automotive industry. His December “Observations” was something of a Christmas present after the Ford announcements. The headline read: “The Canadian Automotive Industry is Not in Crisis.” This is the beginning of a new year so let’s start with some positive news. Here are just a few of the points I pulled from his remarks:
DesRosiers says it is a concern that we have not increased our North American production share appreciably within the past decade but, we are holding onto what we’ve got. He goes on to talk about the high investments by the industry as an indicator of future industrial health. Canada is now attracting about 20% of new North American automotive investment. But, with all the positive indicators, there are some negatives. The parts sector is not according to DesRosiers investing in Canada to the same degree as the assembly sector. “Whereas Canadian assembly investment is consistently above 20% of the North American total, the parts sector attracts less than 10% of the continent’s new parts-related capital expenditures.” That’s a big deficit and it’s translated by using the concept of the glass half-filled with water: the deficit shows in fact there is still a great deal of room left in the industry for positive growth.
CPSC Launches On-Line Certification ProgramJob-specific certification is coming to our industry, says Charles Brimley, executive director of the Canadian Plastics Sector Council (CPSC) and the reason is obvious: it benefits everyone. The certification program is said to be the first of its kind to recognize the skills and knowledge of plastics-industry workers. It took three years to develop the program which will help maintain continuous competency. A visit to a classroom isn’t necessary since the program is provided on-line. The “Certification E-Tool,” is a four-step program which allows employees in 13 of the most popular job categories to achieve certification in as few as eight weeks. Candidates are eligible if they meet two criteria: they must have a Grade 12 diploma or one year of experience in the occupation for which they seek certification. They must be working in this job or studying for an academic credential in that type of work. Anton Mudde, president and CEO of Baytech Plastics in Midland, Ontario, and a member of the board of the council, says the first thing employers think of is the cost. They want to know if they will have to pay more for the certified employee. Mudde’s answer: perhaps. “But now you have a worker who is better at what they do, more efficient, more motivated and, with an ability to earn more money for you.” Mudde’s answer again: Maybe. “But they are pretty mobile as it is.” However as Mudde sees it, helping your employees certify their skills sends a strong signal that you care about their development. Certification should then improve loyalty and reduce turnover. The program is expected to be in place by the summer with the cost relatively inexpensive. Brimley sees the fees not as a cost but an investment. “You are improving your company, your workforce and the satisfaction levels of both your clients and employees. There is no better way to spend your money than to spend it on your most important asset, your people.”
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