U.S. CUTTING TOOL CONSUMPTION UP 5.8 PERCENT MCLEAN, VA — June U.S. cutting tool consumption totaled $186.57 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 collaboration, was down 2.8% from May’s $191.93 million and up 6% when compared with the total of $175.97 million reported for June 2016. With a year-to-date total of $1.095 billion, 2017 is up 5.8% when compared with 2016. These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools. “2017 continues to be a much stronger year for cutting tools than 2016,” says Steve Stokey, president of USCTI. “High consumer confidence is a strong indicator that cutting tools sales will continue to improve through the second half of the year.” Costikyan Jarvis, president of Jarvis Cutting Tools, said, “Combining the recent PMI of 56.3, Capacity Utilization of 76.6% and July’s job growth (209,000 jobs), this month’s Cutting Tool Survey result supports our view of a slow, but steady, growth in the economy. While most macro level indicators are sound, there is some uncertainty how global politics (North Korea, Venezuela, etc.), the Federal rate increases, and the diminishing Federal Balance Sheet will affect economies. On a more micro level, automotive and aerospace continue their robust demand, but we would like to see more improvement in areas like housing starts, agriculture and oil. From the cutting tool producers viewpoint, our revenue growth is being driven by the strong market segments while Caterpillar’s recent improved outlook may signal growth in some of the remaining segments.” STUDY: QUALITY PRACTICES BOOST PROFITS AND EFFICIENCIES MILWAUKEE — Continuous improvement practices and initiatives have a direct, positive impact on an organization’s finances, according to senior executives and quality professionals surveyed in March by ASQ and Forbes Insights, the research arm of Forbes media. The results of the survey, featured in “The Rising Economic Power of Quality: How Quality Ensures Growth and Enhances Profitability,” shows that organizations embracing formal quality initiatives are more likely to attain higher levels of productivity than those that aren’t. The research draws on responses from 1,000 senior executives and nearly 900 quality professionals from around the world and from a multitude of industries. According to the results, the biggest benefits to businesses implementing formal quality initiatives include boosting customer growth and sales, followed by efficiency gains. Areas most likely impacted by quality initiatives include operations, customer service and production. Forty-seven percent of respondents said quality programs increased their company’s profitability, and one in five said growth exceeded 5% in the most recent year as a result of these initiatives. Only 9% said quality initiatives decreased profitability while 15% of respondents didn’t know how quality impacted their bottom lines in the most recent fiscal year. “Organizations that implement effective and innovative quality initiatives often experience increased profitability because of their emphasis on customer needs,” said ASQ CEO William Troy. “Quality can help organizations remain agile and responsive to meet the growing needs of its customers — customers who will offer repeat business as a result of quality products and services.” But the results also show that ongoing quality issues, like employee turnover, quality issues from suppliers and lack of leadership support are affecting overall competitiveness. The data shows that 84% of respondents agree that ongoing issues are, or somewhat are, negatively impacting competitiveness. Furthermore, 20% of respondents say these issues are costing them more than 10% of their total annual revenue. Respondents who self-identified their organization as a leader in performance excellence report fewer losses due to ongoing issues. A higher percentage of these organizations, which often have enterprise-wide quality initiatives, report revenue growth due to their quality programs. Other key findings include: A spirit of collaboration and open communication is more essential to quality success than other initiatives. Stakeholders need to know they can speak up as issues arise, or if they have improvement ideas. While quality encompasses a broad variety of activities and programs, the most common denominators include collaboration and risk management. Quality measurement is widespread, but more data is needed. Less than one-fourth of enterprises have extensive metrics for their quality efforts. The ability to obtain the right data at the right time is a continuing issue. Customer satisfaction is the metric most often leveraged. Digital transformation means new ways to approach quality. It makes speed essential in the ability to deliver quality outcomes, as well as to measure and report results. EXPANSION IN U.S. MANUFACTURING TECHNOLOGY ORDERS ACCELERATING MCLEAN, VA — June manufacturing technology orders climbed 6.5% over May, according to a report released by The Association for Manufacturing Technology. The latest U.S. Manufacturing Technology Orders report also shows a year-over-year increase of more than 10%, the fifth consecutive month posting a year-over-year gain. The U.S. manufacturing technology market has been weak since oil prices began to drop dramatically in June 2014. Orders peaked on a monthly basis that September at $643 million and bottomed out at $260 million in June 2016. The International Manufacturing Technology Show, held in September 2016, rekindled the market, but it was not until March 2017 that year-overyear numbers began to consistently show a positive, accelerating trend upwards. June figures are up 10% over June 2016 and represent the volume and growth that supports an announcement that the manufacturing technology market is officially expanding. “If the USMTO numbers aren’t convincing enough that a recovery is underway, certainly the buzz among our members underscores that a recovery is indeed underway,” said AMT President Doug Woods. “Members have shared that the aerospace supply chain in the Midwest is hot; auto orders doubled between May and June; and sales in the Southeast exploded. Over the next six months, they look forward to a broadening of the recovery into areas like agricultural, construction, power generation and off-road machinery industries.” The USMTO data supports the anecdotal evidence from AMT members. Automotive-related orders were up 109% from May and the aerospace industry’s bookings of new production technology were up 47%. While the largest growth by any region is the 42% increase in orders originating in the states from Tennessee north to Michigan, the Southeast and West are posting the fastest growth rates year-to-date in manufacturing technology orders. Key indicators that businesses in the manufacturing technology sector rely on have been improving steadily. Housing starts are an important indicator of trends as every new house has at least seven new appliances, a car in the driveway, and a consumer or two with disposable income. In June, housing starts topped 1.2 million which isn’t at peak levels but continues an upward trend in the indicator. The increase goes hand-in-hand with the continuing strength of consumer confidence which, according to the University of Michigan’s Consumer Confidence, has been over 90 since September 2016. It isn’t only the consumer that is fostering growth in the need for additional manufacturing capacity. USMTO tracks well with the Purchasing Managers’ Index (PMI) produced by the Institute of Supply Management. Any mark over 50 represents an expansion and the index is 56.3 in July, up from the June level. Business’ profitability over the past three quarters primes the pump for expansion on corporate investment in new durable goods and production equipment. Mark Killion, director of U.S. Industries for Oxford Economics, noted, “Recent increases in new orders for machine tools are supported by a better environment for business investments in the U.S. and globally, especially in the sectors for metals products, electrical and industrial machinery.” AMT has recently replaced one of its key indicators with the Gardner Business Index (GBI) which tracks well with USMTO and turned upwards markedly in December 2016, about 90 days before the recognizable upturn in USMTO. “As we expected, machine tool orders have performed well in recent months. The backlog index from the GBI: Metalworking bottomed out in January 2016. The backlog index tends to lead machine tool consumption by 14 to 20 months. Since the backlog is still growing at an accelerating rate, we expect solid growth in machine tool orders through at least the end of 2017,” commented Steve Kline, director of market intelligence, Gardner Business Media and creator of the GBI. These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTO program. This report, compiled by AMT – The Association For Manufacturing Technology, provides regional and national U.S. orders data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology orders provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity. PEOPLE NEWS An engineer at Hexagon Manufacturing Intelligence earned recognition in the fifth annual “30 under 30” issue of Manufacturing Engineering, a publication of the Society of Manufacturing Engineers (SME) and Advanced Manufacturing Media. TIM PHELAND, a manufacturing engineer at Hexagon, has been selected as an honoree in a field of 30 young men and women (all age 30 or younger at the time of nomination) who are professionals and students. His profile appears in the July issue of Manufacturing Engineering, which celebrates this group of talented individuals for their demonstrated achievements, leadership, and high-tech work in manufacturing. This SME recognition program emphasizes that the industry is evolving and advancing, and young people are enjoying careers in manufacturing that are important, challenging and rewarding. Pheland received his bachelors of science degree in Industrial and Systems Engineering from the University of Rhode Island. He began his engineering career working for a manufacturer of precision fasteners for the aerospace industry. Pheland accepted a position as a manufacturing engineer with Hexagon and continued to enhance his career with a Master’s degree in the same concentration. Three years ago, Tim joined the parts manufacturing department located at Hexagon’s Quonset Point headquarters in Rhode Island. In his new engineering capacity, he focused on optimizing the company’s CNC systems in the areas of programming and tooling. In just six months, his efforts resulted in a significant reduction in cycle time, as well as doubling throughput, enabling the department to improve quality and cut their “cost per part” in half. “We are very pleased that one of Hexagon’s rising stars has been recognized by the Society of Manufacturing Engineers (SME) 5th Annual “30 Under 30” list,” states Steve Ilmrud, vice president of operations, Hexagon Manufacturing Intelligence North America. “Tim Pheland, a manufacturing engineer at our Rhode Island headquarters, is a shining example of the up-and-coming talent needed to push advanced manufacturing forward in the United States. Tim’s dynamic leadership and focus on excellence in the parts manufacturing area has helped our team to significantly improve production processes and systems. And his optimization work continues today.” BUSINESS NEWS ETQ, a provider of quality management system software, has been acquired by TCV, a technology-focused growth equity firms. TCV brings significant experience in software buyouts, having partnered with many leading software companies, including IQMS, Seismic Micro-Technology (SMT), and Genesys. The investment represents EtQ’s first institutional investment since its founding in 1992 and will enable the company to accelerate its innovation efforts, enhance its product development, and expand its international operations. Terms of the transaction were not disclosed. “We selected TCV from many suitors as our first institutional investment partner given their long history of supporting leading technology companies to achieve their strategic objectives and reach their full potential,” said Glenn McCarty, CEO and co-founder of EtQ. “We sought a partner that would not only align with us on achieving our vision and advancing our innovation strategy, but also provide us with the experience, flexibility, and resources to accelerate our growth. TCV’s investment will allow EtQ to deepen and expand our mission of bringing best-in-class software solutions to our customers.” “We have tracked EtQ for several years and have been impressed with its flexible product offering, customercentric approach, and consistent execution,” said Kapil Venkatachalam, general partner at TCV. “We are excited to partner with Glenn and the EtQ team in building on its established leadership in the fast-growing QMS and EHS software sector.” “As regulations become more complex and the need to drive operational excellence grows, EtQ provides mission-critical solutions to its customers,” said Bob Burke, venture partner at TCV. “We are excited to build on the Company’s legacy of product innovation and contribute to the next phase of EtQ’s growth.” EtQ’s platform enables organizations to achieve best-in-class business processes and drive operational excellence. EtQ’s SaaS and on-premises software solutions enable organizations to adhere to regulatory and commercial standards, reduce their cost of quality, manage supplier relationships, and sustain their competitive advantage. EtQ pioneered a flexible product architecture that enables users to create and configure workflows and tools to supplement its out-of-the box functionality. “EtQ is one of the leading vendors in the QMS and EHS software spaces which LNS expects to be a $4.8B market,” said Matthew Littlefield, president and principal analyst at LNS Research. “The EtQ team has done a great job of leveraging cutting-edge technology to keep its platform modern, and the company serves many Fortune 500 customers across multiple verticals, which is unique in this market.” Evercore served as financial advisor to EtQ, and KeyBanc Capital Markets served as financial advisor to TCV. TCV’s investment in EtQ was funded from TCV IX, a growth equity fund with $2.5 billion of committed capital. AUTOMATED PRECISION-SERVICES DIVISION was awarded A2LA Accreditation to ISO/IEC 17025:2005 and ANSI/ NCSL Z540-1-1994 by the American Association for Laboratory Accreditation (A2LA). API Services expanded its current accredited tracker calibration capabilities to include Omnitrac 2 laser tracker and machine tool calibration equipment/ processes. “By us being accredited, customers have the assurance that the equipment used and data provided is accurate and reliable,” said quality manager Kati Allison. ISO 17025 certification is a global compliance system for calibration and testing laboratories requiring strict adherence in order to guarantee the reliability of the measurements provided. Accreditation proves the technical capability of a laboratory to execute certain types of measurement and raises the bar for the company. “Our recent assessment by A2LA on the compliance to ISO 17025 is huge for us,” said Vice President of Services Ron Hicks. “First of all, our continued successful compliance to calibrate our API Laser Trackers at our Newport News office confirms our personnel training, enhanced processes and our communication with our Rockville headquarters means our program is working. “Our customers should rest assured that that we have the technical knowledge and expertise to calibrate and repair their expensive assets. In addition, the additional scope we have added for CNC Machine Tool Calibration, both standard and volumetric also assures the customer our program is working. The ISO 17025 accreditation for machine tool calibration is a testament that our API equipment is up to the test and our personnel are trained to use on the customers CNCs.” This ISO certification shows API Service’s commitment to deliver reliable, high quality calibrations and to continually improve development processes. The scope of the ISO certificate includes the calibration, repair and service of test and measurement equipment and software. A2LA Accreditation imposes stricter requirements than ISO 17025 and ANSI/NCSL Z540 certification alone, particularly focusing on technical competence, traceability of measurements and proficiency of the calibration lab. A2LA is a nonprofit, non-governmental, public service, membership society whose mission is to meet the needs of both laboratories and its users for competent testing and calibration; improve the quality of laboratories and the data they produce; and increase acceptance of accredited laboratory data to facilitate trade, based on internationally accepted criteria for competence (ISO/ IEC 17025:2005). A2LA-accredited laboratories are recognized and accepted in 46 countries around the globe and in over 30 federal, state and local government agencies, companies and associations. They are also recognized by the ILAC, the International Laboratory Accreditation Cooperation, giving more credibility overseas. PERCEPTRON INC. announced that a German automotive manufacturer selected Perceptron gaging and robot guidance for their manufacturing facility in China. The project includes six stations in total: four in-line gaging, one in-line robot guidance for form and pierce, and one near-line closure panel gaging. All stations feature Helix sensors, including both structure-mounted and robotmounted, to measure features such as threaded studs, hemmed edges and complex holes. Perceptron’s measurement algorithms allow measurement of non-standard hole shapes, which are increasingly used by manufacturers to error-proof their build process. “This project is a part of a larger vehicle program whereby a similar platform is built at additional plants worldwide,” said Perceptron Vice President of Global Sales and Marketing Rick VanValkenburg. “Perceptron has experienced execution teams around the globe which enables support at all of the customer’s assembly plants. Multiple country projects are very common in the automotive industry and Perceptron has a unique competitive advantage with our local install and support teams.” Perceptron’s dimensional gaging solutions provide a real-time view of production quality, allowing customers to make rapid adjustments and see instant results. The integrated reporting package enables immediate insight into the manufacturing process, turning massive amounts of data into actionable information. These powerful reporting tools also aid in the efforts to reduce process variation and optimize overall vehicle quality, providing more effective troubleshooting tools and faster root cause analysis. All stations at the manufacturing facility in China are currently in the final stage of installation. SCIAKY INC., a subsidiary of PHILLIPS SERVICE INDUSTRIES INC., and provider of metal additive manufacturing solutions, will adopt product life cycle management (PLM) software technology from Siemens to support its Electron Beam Additive Manufacturing (EBAM) solution. Sciaky can now offer its current and future customers a solution that integrates with the same technology that companies around the world depend on every day to enhance product development decision making and produce better products. Siemens PLM Software is a global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. “Sciaky is excited to join Siemens PLM Software’s partner community,” said Bob Phillips, vice president of marketing, Sciaky. “The strength of our two organizations working together will deliver significant value to our customers.” “Siemens PLM Software is committed to creating partnerships that can add value to the business of our customers,” said Vynce Paradise, director of advanced part manufacturing, Siemens PLM Software. “We are pleased to work with Sciaky as they use the latest multi-axis deposition technology we have developed within NX software to support their EBAM 3D metal printing systems.” CONFERENCE NEWS The 2017 COORDINATE METROLOGY SOCIETY CONFERENCE in Snowbird, UT, hosted hundreds of visitors and featured more than 20 original technical presentations. The 33rd CMSC conference reached new heights at 8,000 ft above sea level at the Snowbird Convention Center, where portable metrology professionals convened for the annual transfer of knowledge from technology veterans and solution providers. Keith Bevan of NPL (National Physical Laboratory – UK) served as conference chairman for 2017 and lead a dedicated team of elected and appointed volunteers to organize the event. Expert and novice metrologists and scientists from 12 countries were on hand to experience the topical and interesting talks, as well as the most up-to-date market innovations. CMS members, special industry guests, and master users of portable measurement technology delivered a diverse slate of authoritative white papers and application presentations at the 2017 conference. The agenda included speakers from NASA - Johnson Space Center, Triumph Aerostructures - Vought Aircraft Division, IK4-TEKNIKER (Spain), Idaho Virtualization Laboratory, Lawrence Berkeley National Laboratory, Brookhaven National Laboratory, National Institute for Standards and Technology (NIST), National Physical Laboratory (NPLUK), Los Alamos National Laboratory, Argonne National Laboratory, UNC Charlotte, University College London, Academy of Opto-electronics, Chinese Academy of Sciences, Tianjin University and other leaders in the field. During CMSC, delegates discussed the latest developments covered in the technical presentations including a wide range of applications from close-range photogrammetry in space to metrology-guided wing join automation to point cloud measurements on a CMM artifact using a laser scanner. During the conference, Randy Gruver, CMS certification chair, presented updates on the society’s career enhancement programs including the CMS Level-One and Level-Two Certification examinations and future certifications in the works. Professor Ed Morse, UNC Charlotte, presented an update for the Precision Path Consortium’s Roadmap for Large-Scale Manufacturing, a collaboration of industry, CMS and UNC Charlotte. Robert Schlader from the Idaho Virtualization Laboratory also presented Digital Heritage and the Idaho Virtualization Lab: what is it, what does it mean, and why do it? In the packed CMSC Exhibition Hall, conference delegates explored new product introductions and advancements from technology providers in the portable measurement marketplace. More than 40 exhibitors featured the latest trends in close-tolerance, industrial coordinate measurement systems, software, peripherals and services. During the week, attendees frequented the Exhibition Hall’s main hub of activity — the Measurement and Education Zones — featuring daily learning exercises and displays, practical workshops, and the crowd favorite CMS Quiz Show. The well-rounded conference also included evening networking events, User Group Meetings, a popular 5 Billion Micron Fun Run/Walk, and the annual CMSC Banquet with live entertainment.
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