BUSINESS NEWS | COMING EVENTS | PEOPLE NEWS | MERGERS PRESIDENT OBAMA ANNOUNCES NEW PUBLICPRIVATE MANUFACTURING INNOVATION INSTITUTE WASHINGTON, DC—The President announced new steps with the private sector to strengthen the manufacturing sector, boost advanced manufacturing, and attract the good paying jobs that a growing middle class requires. The President announced the selection of a North Carolina headquartered consortium of businesses and universities, led by North Carolina State University, to lead a manufacturing innovation institute for next generation power electronics. President Obama has declared 2014 a year of action. He will continue to work with Congress on new measures to create jobs and grow the economy. He will also use his executive authority to get things done. After shedding jobs for a decade, our manufacturers have added 568,000 over the past nearly four years, including 80,000 over the past five months. Manufacturing production has grown since the end of the recession at its fastest pace in over a decade. The President is committed to building on that progress. In last year’s State of the Union address, the President proposed a series of three new manufacturing institutes that the Administration can create using existing resources - this is the first of those institutes. In May, President Obama launched a competition for these three new manufacturing innovation institutes with a Federal commitment of $200 million across five Federal agencies – Defense, Energy, Commerce, NASA, and the National Science Foundation, building off the success of a pilot institute headquartered in Youngstown, Ohio. The additional two institutes led by the Department of Defense – focused on Digital Manufacturing and Design Innovation and Lightweight and Modern Metals Manufacturing – are still in the selection process and will be awarded in the coming weeks. Each institute is designed to serve as a regional hub designed to bridge the gap between applied research and product development, bringing together companies, universities and other academic and training institutions, and Federal agencies to co-invest in technology areas that encourage investment and production in the U.S. This type of “teaching factory” provides a unique opportunity for education and training of students and workers at all levels, while providing the shared assets to help companies, most importantly small manufacturers, access the cuttingedge capabilities and equipment to design, test, and pilot new products and manufacturing processes. The new manufacturing innovation institute announced today in North Carolina is focused on enabling the next generation of energy-efficient, high-power electronic chips and devices by making wide bandgap semiconductor technologies cost-competitive with current silicon-based power electronics in the next five years. These improvements will make power electronic devices like motors, consumer electronics, and devices that support our power grid faster, smaller, and more efficient. The winning team, led by North Carolina State University, brings together a consortium of leading companies that included some of the world’s leading wide band gap semiconductor manufacturers, leading materials providers, and critical end-users like John Deere and Delphi with universities on the cutting edge of technology development and research, all in a vibrant and entrepreneurial region that can serve as the foundation for ongoing U.S leadership in this important technology. The Department of Energy is awarding $70 million over five years, matched by at least $70 million in non-federal commitments by the winning team of businesses and universities, along with the state of North Carolina. This announcement is another step forward toward fulfilling the President’s vision for a full national network of up to 45 manufacturing innovation institutes, which will also require legislation from Congress. In July 2013, Senators Brown (D-OH) and Blunt (R-MO) and Congressmen Reed (R-NY) and Kennedy (D-MA) co-sponsored bipartisan legislation in both the Senate and House that would create a network for manufacturing innovation led by the Department of Commerce consistent with the President’s vision, helping the United States to take advantage of this unique opportunity to accelerate growth and innovation in domestic production and create the foundation for well-paying jobs that strengthen the middle class. The President will continue to support this bipartisan legislation and will work with Congress to get it passed, and will continue to make progress where he can through existing authority to boost these partnerships that are key to supporting high-quality manufacturing jobs. MANUFACTURERS OPTIMISTIC FOR 2014 PITTSBURGH—Schneider Downs published the third annual analysis of its Manufacturers’ Economic Survey. The survey was used to assess the challenges faced by manufacturing organizations and to identify growth opportunities within the industry. Schneider Downs issued the survey to manufacturers across the United States, representing a variety of industries, with a distribution of small, medium and large organizations. Respondents of the survey saw an increase in employment opportunities in 2013 and are hopeful that trend carries into the New Year; however, as uncertainty still surrounds the U.S. economy and the current administration’s fiscal policies, manufacturers remain just cautiously optimistic heading into 2014. Additionally, respondents are expecting a modest increase in customer demand, much of which is expected to come from overseas. Manufacturers anticipate sales to slightly increase in 2014, largely due to the identification of these new market opportunities. Many respondents also noted that 2013’s results were fiscally better than anticipated. The hope is that momentum will carry into 2014. While survey results yielded a positive forecast for 2014, increasing health care and energy costs and government regulations still serve as the primary concerns of many manufacturers. This survey was conducted between October 7, 2013 and November 1, 2013. U. S. CUTTING TOOL CONSUMPTION DOWN 16.6% IN NOVEMBER MCLEAN, VA—November U.S. cutting tool consumption totaled $156 million, according to the U.S. Cutting Tool Institute and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 16.6 percent from October’s total and down 7.0 percent from November 2012. Yearto- date shipments are $1.88 billion, which is down 3.9 percent from the same period in 2012. These numbers and all data in this report are based on the totals actually reported by the companies participating in the CTMR program. The totals here represent about 80 percent of the U. S. market for cutting tools. “The month-to-month comparison for November suffered in part due to strong sales in October,” said Brad Lawton, chairman of AMT’s Cutting Tool Product Group.”The year-to-date comparison to 2012 shows a much more modest decline and was also fairly consistent from April or May through November, something anyone doing a forecast should appreciate.” The Cutting Tool Market Report (CTMR) is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U. S.-based manufacturers of cutting tool technology. DOMESTIC, WORLD ECONOMIC OUTLOOK OPTIMISTIC, ACCORDING TO PWC’S MANUFACTURING BAROMETER NEW YORK—With expectations that economic growth will continue in 2014, U.S. industrial manufacturers expressed optimism about the U. S. economy, and more importantly, toward the broader world economy, which has reached the highest level since the fourth quarter of 2010, according to the Q4 2013 Manufacturing Barometer, released today by PwC US. Looking ahead, respondents appear poised for growth as a majority expect positive revenue gains at their own companies; plans for hiring remain steady; international sales regain momentum; and the headwinds to growth begin to level off. Optimism regarding the prospects of the U.S. economy during the next 12 months rose among U.S. industrial manufacturers to 68 percent in the fourth quarter of 2013, from 60 percent in the previous quarter. Compared to the fourth quarter of 2012, 20 percent more of the executives surveyed are now optimistic about the domestic economy. “Optimism regarding the U.S. economy continued to increase in the fourth quarter, while views of the worldwide economy, although improving, remain divided given continuing levels of uncertainty. Our Global Manufacturing Current Assessment and Outlook indices tell us that executives are generally more positive in regard to the economic environments in which they operate, but aren’t seeing significant improvement in financial results to make large investments in their businesses,” said Bobby Bono, U. S. industrial manufacturing leader, PwC. “As we continue to see the global macroeconomic environment improve, we expect U.S. industrial manufacturing executives, bolstered by strong balance sheets, to more aggressively compete for businesses in international markets and increase capital expenditures.” According to the latest Manufacturing Barometer, overall sentiment about the world’s economic prospects among U.S. industrial manufacturers who market abroad also increased in the fourth quarter of 2013, rising to 47 percent from 40 percent in the third quarter and 32 percent in the fourth quarter of 2012. While nearly half of survey participants expressed optimism, an additional 46 percent remain uncertain about global prospects and seven percent remain pessimistic. Reflecting the increased confidence level about the worldwide economy, international revenue regained upward movement in the fourth quarter of 2013 as 29 percent of respondents reported increased international sales, up from 18 percent the prior quarter. “The expected contribution of international sales to total revenues over the next 12 months also showed a slight tick upward. The rise of global optimism may signal increasing contributions as these international marketers see an improving economic picture in Europe and in emerging markets,” continued Bono. Underscoring the increased confidence levels overall, 85 percent of survey respondents expect positive revenue growth for their own companies in 2014, with 13 percent forecasting double-digit gains and only three percent expecting negative growth. The projected average revenue growth rate for owncompany revenue over the next 12 months increased to 5.4 percent in the fourth quarter of 2013 from 4.2 percent in the previous quarter. Plans for operational spending in 2014 dipped slightly; 73 percent of U.S. industrial manufacturers planned on increasing operational spending during the fourth quarter of 2013, a decrease of five percent from the third quarter. Over the next 12 months, the leading increased investment areas include new product or service introductions 45 percent, research and development 37 percent and information technology 32 percent. Twenty-three percent of respondents planned M&A activity in the year ahead, focusing on purchasing another business, sale of part or all of own business or a spin-off. In addition, expansion into new markets abroad increased slightly to 20 percent with eight percent citing plans for new facilities abroad, which was offset by 10 percent planning to close or reduce facilities overseas. Building off of the previous quarter’s five-year high, the majority of U.S. industrial manufacturers surveyed plan to add employees to their workforce over the next 12 months. Up two points from the previous quarter, 60 percent of respondents in the fourth quarter of 2013 plan new net hiring in 2014, but will do so at a more moderate pace. Only three percent plan to reduce the number of full-time equivalent employees and 37 percent will stay about the same. The most sought-after employees will be skilled labor 42 percent, followed by professionals and technicians 30 percent and production workers 28 percent. Among the survey findings, legislation and regulatory pressures and concern about lack of demand were the most cited potential barriers to growth over the next 12 months, totaling 47 percent and 42 percent respectively. While lack of demand remains a concern among U.S. industrial manufacturers, it is down 10 percent from a year ago, when it was considered the primary barrier to growth. In addition, several other barriers are lower than a year ago, including oil and energy prices 25 percent, taxation policies 22 percent and decreasing profitability 20 percent, while concern over capital constraints and competition from foreign markets increased from the same period last year. “As the shale energy revolution continues to ramp up in the U. S., we are seeing significant moderation in concerns regarding energy costs among industrial manufacturers, reflecting the positive influence that shale gas is having from investment, operational and demand standpoints. The low-cost energy also provides a significant incentive for manufacturers to shorten their supply chain and bring production facilities back to the U.S.,” Bono said. SPECIAL TOPIC: CYBER-SECURITY AND IT INNOVATIONS Cyber-security continues to be a major area of focus for industrial manufacturers. The latest Manufacturing Barometer revealed that 75 percent of U. S. industrial products manufacturers claim to have a methodology to detect the effectiveness of their organization’s security programs and 82 percent cited having a formalized plan in place for reporting and responding to cyber-security events. Over the past 12 months, only a limited number, 15 percent, reported an increase in cybersecurity events. When polled, U.S. industrial manufacturers cited hackers as the greatest cyber-security threat to their business, 69 percent, followed by current and former employees, 26 percent, and activists and activist organizations, seven percent. Of survey respondents, 38 percent indicated that their business made use of important IT innovations in the past 12 months, while 51 percent responded that their business had not. The two business sectors leading the way for important IT innovations were manufacturing processes 52 percent and security and cyber threats 43 percent. “U.S. industrial manufacturers are embracing IT innovations to both mitigate risks and improve their long term prospects. In addition to IT investments to combat cyber and information threats, we are seeing manufacturers adapt new technologies and innovations including cloud and mobile computing, and big data and analytics. These important IT investments are helping forward-looking businesses guard against disruptive technologies that are changing the manufacturing landscape while providing them with an opportunity to adjust their business models, improve their processes and find new opportunities to grow,” Bono stated. BRADY CORPORATION RECEIVES SILVER BOEING PERFORMANCE EXCELLENCE AWARD MILWAUKEE, WI—Brady Corporation announced it has received a 2013 Boeing Performance Excellence Award. The Boeing Company issues the award annually to recognize suppliers who have achieved superior performance. Brady is one of only 459 suppliers to receive the Silver level of recognition based on specific performance criteria including delivery and quality. Brady maintained a Silver composite performance rating for each month of the 12-month performance period, from October 1, 2012, to September 30, 2013. Brady products supplied to Boeing include print-on-demand systems and high-performance materials for aircraft tubing, informational markers, electrical systems and more. These products identify hydraulic oil, functional application, part number, and provide additional critical information. This identification helps maintenance crews more quickly find areas needing attention and get the aircraft back into the air as soon as possible. COMING EVENTS MARCH 17 AS9100:2009 LEAD AUDITOR TRAINING 25 IPC APEX EXPO 2014 APRIL 15 THE VISION SHOW MAY 7 QUALITY EXPO TEXAS 2014 PEOPLE NEWS NEW CLINKENBEARD QUALITY MANAGER HAS 30 YEARS EXPERIENCE Rockford, IL—Karen Spencer has 30 years of experience in quality management in aerospace, aviation, medical, automotive and manufacturing. She recently joined Clinkenbeard www.clinkenbeard.com as its new full-time Quality Manager. Spencer is a member of the Institute ofCertified Professional Managers(ICPM), one of the largest management certifying body in the US. She also is a Senior Member of theAmerican Society for Quality (ASQ), a global community of individuals dedicated to quality who share the ideas and tools that make the business and work environments better, more efficient and safer. Spencer has been a Point of Contact (POA) for the FAA for several years. This means she was responsible for ensuring that all FAA Rules and Regulations were followed. This included Federal Aviation Regulations (FAR), Advisory Circulars (AC), Airworthiness Directories (AD), Technical Standard Orders (TSO) and Code of Federal Regulations (CFR). She was responsible for ensuring that all directives were in compliance. Spencer was audited by the FAA every 6 months to prove compliance. Spencer also has been a Tier 1 supplier for the automotive industry. The companies she represented are reputable and reliable manufacturers of automobile parts, which meet all material and design standards. “My primary responsibilities at Clinkenbeard include working with team members to ensure that our customers receive a product that fully meets specifications,” Spencer said. “I make sure that any necessary paperwork such as FMEA, control plans and flow charts, are completed in a timely manner. I am also responsible for the quality system and enhancing our existing processes. I will be working with the team to maximize quality using 6s as my guide. My goal is to assist the team in continuing to position Clinkenbeard as a world class facility.” Spencer is currently working on flowchart development and key alert systems for Clinkenbeard, among a wide range of other quality initiatives that meet the wide needs of Clinkenbeard’s growing customer base. LEGENDARY QUALITY MAGAZINE PUBLISHER DIES AT 91 CRYSTAL LAKE, IL—Richard A. Templeton, 91, of Crystal Lake, passed away Wednesday, Dec. 4, 2013. He was born July 3, 1922, in Lakewood, Ohio, to the late Leta and Harry Templeton. Templeton married the late Elaine Wilson on Dec. 8, 1950. He received his Bachelor of Arts in Journalism from the University of Missouri. Templeton served as Vice President of Hitchcock Publishing and publisher of Quality Magazine for many years. He is fondly remembered by the quality industry as the host of fabulous parties each year on opening day at Quality Expo in Rosemont. Dick and his wife, Elaine, welcomed each attendee and exhibitor personally at the door. Survivors include his children, Roger (Amy) Templeton of Union, KY, Rebecca (Louis) Columbaro of Crystal Lake, Elizabeth (John) Kelner of Sarasota, FL, and Paul (Julie) Templeton of Yacolt, WA; nine grandchildren; three great-grandchildren; and brothers, William (Sally) Templeton of Newport, PA and Harry (Ruth) Templeton of Columbus, OH. In addition to his wife, Elaine, and parents, he was preceded in death by his sisters, Jane, Anne, and Bess; and by brother, Robert. BUSINESS NEWS NOMINATIONS FOR WILLIAM A. WILDHACK AWARD BOULDER, CO—Each year NCSL International has the opportunity to recognize an individual for outstanding contributions to the field of calibration, metrology, and leadership to NCSLI by presenting the William A. Wildhack Award. The contributions may be in any appropriate form including oral presentation, conference paper, technical or administrative innovation or accomplishment, and/or outstanding leadership to NCSL International. This award was established in 1976 as the highest award of NCSL International. The purpose of the award is to provide incentive for and recognition of outstanding contributions to the field of metrology and, in particular, contributions that are in consonance with the goals and purposes of NCSL International. The award carries an honorarium in the amount of $2,500, a plaque, and a medallion bearing the likeness of William A. Wildhack. The award is administered by the William A. Wildhack Advisory Panel. Roger Burton, NCSLI Executive VP will preside for 2014. NOTE – Active NCSLI Board members and staff (including contractors) are not eligible for this award. If you know of someone that should be considered, and is qualified to receive this award, please forward your letter of recommendation to Roger Burton.
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