TECH MANUFACTUREXPO TO DEBUT MAY 4 TROY, MI—Tech ManufactureXPO will occur on May 4 from 8:30 a.m. to 3:30 p. m. Eastern standard time. It is a virtual expo that can be considered the online equivalent of a traditional trade show. Attendees can reach multiple suppliers with the click of a button, chat oneon- one with manufacturing industry colleagues and download free whitepapers, case studies and podcasts. Tech ManufactureXPO also will include a keynote address from Reshoring Initiative founder Harry Moser. The Reshoring Initiative is a nonprotectionist effort to reduce American imports, increase net exports and regain manufacturing jobs. Going local can reduce a company’s total cost of ownership (TCO) of purchased parts and tooling and offer a host of other benefits while bringing U.S. manufacturing jobs back home. The Initiative documents for large manufacturers the benefits of sourcing in the United States. Archstone Consulting’s 2009 survey showed that 60% of manufacturers use “rudimentary total cost models” and ignore 20% of the cost of offshoring. The Initiative is providing its TCO Estimator software free to help OEMs compare the true TCO of local vs. offshore sources and to help job shops sell the benefits of local sourcing to their customers. Tech ManufactureXPO is geared toward global manufacturers, formulators and end-users of adhesives and sealants. Potential attendees run the gamut of the manufacturing industry, and include manufacturing professionals responsible for engineering and managing product assembly operations throughout the original equipment market. Register today at www.techmanufacturexpo. com. GLOBAL AUTOMOTIVE OUTLOOK FOR 2011 APPEARS POSITIVE WESTLAKE VILLAGE, CA—Global new light-vehicle sales this year are projected to reach 76.5 million units, which would surpass the record of 72 million light vehicles sold 2010, according to J.D. Power and Associates Automotive Forecasting. If new light-vehicle sales reach their expected levels, this would be 6% higher than the 2010 total, which shattered the previous record of 70 million units set in 2007. “Overall growth in the world economy has been supporting further recovery in auto sales,” says John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. “We’re seeing signals of stability and increased consumer demand for new vehicles as economic optimism increases.” Most regions saw sales growth in 2010, including North America, South America and Asia, with China being a key to growth for that continent. Western Europe was the notable exception to the growth pattern, as its sales suffered when the government-sponsored vehicle- scrappage programs expired in 2010. For the first time in 2010, emerging auto markets accounted for more than one-half of global light-vehicle sales—51%—clearly signaling the shift of power in the global automotive market that has been taking place during the past five years. That momentum in the emerging markets is expected to continue throughout 2011. STUDY FINDS OUTSOURCING LOSING FAVOR CHICAGO—According to a study by BDO USA LLP, an accounting and consulting organization, 35% of U.S. technology companies surveyed are currently outsourcing services or manufacturing to companies outside of the United States. This represents a 43% decrease from the 2009 high when 62% of companies were outsourcing and a slight decline from 2010 (37%). The study of 100 CFOs also found that of the companies who are not currently outsourcing (65%), the majority would not consider outsourcing beyond their backyard (58%), either choosing the United States, (25%), Canada (13%) or indicating no plans to outsource at all (20%). And while some U.S. regulations have CFOs concerned (83% note concern with the changing national tax landscape), jobs and operations are not expected to head overseas any time soon. “Outsourcing can be looked at as a bellwether of the economy,” says Don Jones, partner in the technology and life sciences practice at BDO. “Tech companies turned to outsourcing in 2009 in order to reduce operating costs and ride out the recession. Since then, we’ve seen a marked decrease as companies recover and look to create jobs and growth close to home.” These findings are from the fourthannual BDO Technology Outlook Survey, which examines the opinions of 100 chief financial officers at leading technology companies located throughout the United States. MANUFACTURING TECHNOLOGY CONSUMPTION UP 85% IN 2010 MCLEAN, VA and ROCKVILLE, MD—December U.S. manufacturing technology consumption totaled $446.76 million, according to The Association for Manufacturing Technology (AMT) and the American Machine Tool Distributors’ Association (AMTDA). This total, as reported by companies participating in the USMTC program, was up 40.9% from November and up 104. 8% when compared with the total of $218.16 million reported for December 2009. With a year-to-date total of $3,236 million, 2010 is up 85. 3% compared with 2009. These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program. “For the first time in USMTC history, we experienced four months of consecutive growth following IMTS, ending the year on a solid upswing,” says Douglas K. Woods, president of AMT. “2010 orders closed strong, up 85% over 2009, and December’s orders were 40.9% higher than the previous month. With backlogs firming and quotation levels accelerating, we are very optimistic that the industry will see strong results in 2011.” The U.S. Manufacturing Technology Consumption (USMTC) report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national consumption data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology consumption provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity. PLAN OUTLINES NIST R&D GRANTS GAITHERSBURG, MD—The National Institute of Standards and Technology (NIST) has posted a three-year plan outlining the topics of possible future competitions for research and development (R&D) funding under the agency’s Technology Innovation Program (TIP). The research funding roadmap, which looks three years past the current fiscal year, proposes a range of TIP competitions in the fields of civil infrastructure, manufacturing, energy, health care, water resources, complex networks and sustainability. “We are posting the TIP three-year plan to keep our user community— industrial and academic research groups in this case—informed of our current plans for future R&D funding competitions,” says NIST Director Patrick Gallagher. “But I want to stress that these are not engraved in stone. If you have better ideas, we’d like to hear from you.” TIP was created to foster novel technologies to meet the nation’s critical needs, and supports President Obama’s commitment to winning the future by out-innovating, out-educating and out-building our global competition. The White House launched the Startup America initiative with a focus on innovation and a plan to encourage private sector investment in job-creating startups, accelerate breakthrough research and address barriers to success for entrepreneurs. The program provides cost-shared funding, on a competitive basis, for high-risk technology R&D that offers solutions to specific critical national needs identified by TIP. Program officials emphasize that the threeyear plan is not a formal solicitation for proposals. There are no current TIP competitions. TIP funds cost-shared R&D projects by single small-sized or medium-sized businesses or by joint ventures that also may include institutions of higher education, nonprofit research organizations and national laboratories. TIP awards are limited to no more than $3 million total throughout three years for a single company project and no more than $9 million total throughout five years for a joint venture. Proposed TIP competition topics through FY 2014, according to the plan, would include advanced sensing technologies and advanced repair materials for civil infrastructure; advanced materials, biomanufacturing and manufacturing processes and robotics and intelligent automation for manufacturing; technologies to enable a smart grid; technologies for personalized medicine; technologies for water availability; complex networks; and sustainability. FORD REPORTS 2010 FULL YEAR NET INCOME OF $6.6B DEARBORN, MI—Ford Motor Co. Reported 2010 full year net income of $6.6 billion, or $1.66 per share, an increase of $3.8 billion, or 80 cents per share, from 2009. This was Ford’s highest net income in more than 10 years, as strong products and new investments fueled improvements in all of the company’s business operations around the world. “Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all,” says Alan Mulally, Ford president and CEO. “We are investing in an unprecedented amount of products, technology and growth in all regions of the world.” Full year 2010 pre-tax operating profit was $8.3 billion, or $1.91 per share, an increase of $8.3 billion, or $1.90 per share, from a year ago. This increase ref lects a profit in each automotive segment led by strong performance in North America, ref lecting primarily favorable volume and mix as well as favorable net pricing. Ford Credit’s strong profit also contributed significantly to Ford’s full year performance. Ford made significant progress in strengthening its balance sheet, reducing automotive debt by $14.5 billion in 2010, a 43% reduction. These actions will lower annualized interest expense by more than $1 billion. Ford finished the year with automotive gross cash exceeding debt by $1.4 billion. Fourth quarter actions reduced automotive debt by $7.3 billion, including $2.5 billion of newly announced debt reductions to pay down Ford’s revolving credit facility and term loans. Ford reported fourth quarter net income of $190 million, or 5 cents per share, a decrease of $696 million, or 20 cents per share, from the fourth quarter of 2009. This includes the negative impact of special items of $1 billion, primarily associated with a previously disclosed $960 million charge related to the completion of debt conversion offers that reduced outstanding automotive debt by over $1.9 billion. As a result of Ford’s 2010 financial performance, the company will pay profit sharing to approximately 40,600 eligible U.S. hourly employees. The average amount is expected to be approximately $5,000 per eligible fulltime employee. “The progress that we made improving our core automotive business has allowed us to strengthen significantly the balance sheet in 2010, and this will remain a key area of focus for us in 2011,” says Lewis Booth, Ford executive vice president and chief financial officer. “We continue to manage the business for long term profitable growth.” AMT APPLAUDS NEW POST FOR MANUFACTURING POLICY MCLEAN, VA–The Association for Manufacturing Technology (AMT) applauds President Obama’s creation of a new post overseeing manufacturing policy. Ron Bloom was named special assistant to the president for manufacturing policy within the White House’s National Economic Council. Bloom has been the administration’s auto czar since 2009 and has overseen the auto industry restructuring. AMT’s President Douglas K. Woods is optimistic that the move is a step in the right direction toward establishing a national manufacturing strategy. “For nearly two years, and as part of our manufacturing mandate, AMT has been advocating for the appointment of a senior position on manufacturing policy at the White House,” says Woods. “I’m hopeful this is recognition from the administration that job creation and competitiveness depend on a national agenda that emphasizes the importance of manufacturing.” BUSINESS NEWS Phillips Service Industries Inc. (Livonia, MI), a global manufacturing and service corporation that serves a wide variety of industries with its diverse collection of technology-based companies, has acquired Skytronics Inc. (El Segundo, CA), a leading aircraft component manufacturer and maintenance repair organization. Renishaw Ltd. (Hong Kong) has won the Best Supplier award at the 2010 China Higher Educational Equipment Supplier Evaluation. Renishaw, with the inVia Raman microscope, is the first and only Raman spectroscopy supplier to win this award. The award was presented by the Higher Educational Laboratory Research Society, whose review and inspection committee comprises experienced professors, spectroscopy experts and user representatives from well-known universities in China. Olympus (Center Valley, PA) will begin selling its biomedical and industrial microscopes and imaging instruments directly throughout 14 additional states, including Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, New Mexico, North Dakota, South Dakota, Texas, Utah, Wisconsin, Wyoming and Michigan. 2011 marks the 30th anniversary of the founding of Sciemetric Instruments (Ottawa, Canada) whose technology has been used by some of the world’s largest manufacturers to improve quality and their manufacturing processes. The company’s process monitoring and quality management systems and software help manufacturers monitor the variables that impact critical manufacturing processes. This, in turn, enables them to improve product quality and maximize profitability. Dickten Masch Plastics (DMP, Nashota, WI), a custom Wisconsin and Iowa-based thermoplastics and thermoset molder with metal stamping and assembly capabilities, recently earned ISO/TS 16949: 2009 certification as a Tier 1 automotive supplier. The certification validates DMP’s commitment to its customers and to the continuous improvement. The registration also will support DMP’s Fluid Level Indicator business to Tier 1 automotive OEMs. Spitzer Industries Inc. (Houston) announced the completion of its acquisition of Advanced Inspection Technologies (AIT, Melbourne, FL). AIT specializes in performing advanced nondestructive testing (NDT) of welds and base materials, using phased array ultrasonic testing and computed radiography. The acquisition also furthers Spitzer’s fabrication capabilities with deeper welding engineering and technology capabilities. InterTech Development Co.’s (Skokie, IL) testing applications laboratory is making free engineering and costprojection reports available to quality assurance engineers. These are application-specific reports intended to help engineers gage the costs of integrating multiple facilities worldwide while still maintaining ISO 9001, ISO 12485: 2003 and other quality standards. AV&R Vision & Robotics Inc. (Montreal, Canada) won contracts worth more than $1.5 million from two major European players in the jet engine industry. AV&R will install surface inspection systems in Germany and England. AV&R specializes in gas turbine manufacturing solutions in robotic material removal and automated surface inspection. PEOPLE NEWS TRW Automotive Holdings Corp. (Liviona, MI) has appointed its president and CEO John C. Plant to the additional post of chairman of the board. Plant has held the position of president and CEO and has been serving as a member of TRW’s board since 2003. NP Photonics Inc. (Tucson, AZ), an advanced fiber laser products company for sensing and metrology applications, has appointed Terry Hannon to the role of president and CEO. Hannon most recently served as vice president of NP, where he was responsible for marketing, sales and corporate strategy. Creaform (Lévis, Quebec) has appointed Stéphane Galibois to the role of vice president of technology sales for North America. Galibois will take charge of business development and strategic accounts for the region. He also will oversee Creaform’s team of sales specialists and distribution network for the continent. Yokogawa Corp. of America (Houston) has appointed Chet Mroz to the role of president and COO of Yokogawa’s North American operations. Mroz is based in the Sugar Land, TX, office and is responsible for all day-to-day operations in North America. Methods Machine Tools (Sudbury, MA) has appointed Michael Minton to the position of national applications engineering manager. He will be responsible for coordinating the national applications and automation services throughout North America. IPG Photonics Corp. (Oxford, MA) has appointed Chris Pilcher to the role of sales manager for Canada. Pilcher has experience selling industrial lasers and systems to OEMs, integrators and end-users, most recently with Trumpf Canada Inc. ASSOCIATION NEWS The Society of Manufacturing Engineers (SME, Dearborn, MI) is recognizing Robert V. Petrach Jr.,CMfgE, with the 2011 Award of Merit for the contributions he has made to the his local chapter, affiliated chapters and the Society overall. Petrach, an injection molding manager at Safety Technology International (Waterford, MI) was nominated for this recognition by members of SME’s Oakland-Macomb No. 69 chapter for his dedication and great enthusiasm for manufacturing engineering. The award of merit is bestowed on outstanding SME members who, in the judgment of the International Awards & Recognition Committee, have made valued, balanced contributions to the Society’s professional activities and growth. The Coordinate Metrology Society (CMS, Benbrook, TX), the membership association for measurement professionals, will hold its 27th Annual Coordinate Metrology Systems Conference (CMSC) July 25 to 29, 2011, at the Arizona Biltmore Hotel and Spa in Phoenix. This five-day event is designed for users of portable 3-D coordinate measurement solutions utilized on manufacturing factory floors or by science laboratories. To register, visit www.cmsc.org.
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