February 2008 Edition

INDUSTRY NEWS

Industry News

Lasers Down; Workholding Up

While industrial laser equipment and system sales were off by more than 17 percent from the previous quarter, workholding equipment sales jumped almost 21 percent from the same period the previous year, according to Association for Manufacturing Technology surveys.

Third quarter 2007 orders of industrial laser equipment and systems were reported at $116.6 million, off 17.6 percent from the previous quarter, according to the AMT. Orders within North America taken by the 24 companies reporting in the third quarter totaled $80.2 million, while exports amounted to approximately $36.4 million.

The report showed the value of orders of CO2 lasers decreased 16.4 percent. To protect confidentiality, the value of YAG lasers was not available. However, based on Nd:YAG units, orders fell 26.4 percent from the second quarter. Of the 374 total units of all types ordered, 68.4 percent of industrial laser orders were configured as a laser system – defined as a laser source and workstation. The value of laser system orders, however, made up 91.5 percent of total orders.

"Considering the strong second quarter and the state of the overall economy, these figures are not cause for alarm," John B. Byrd III, AMT president, said. "Despite the decline in orders, the third quarter numbers fall within the normal quarter-to-quarter fluctuations."

Third quarter 2007 figures are based on actual data reported by companies voluntarily participating in the Laser Market Data Survey. Second quarter data reported was revised to reflect changes in data participants have made during the course of the third quarter.

At $67.9 million for third quarter 2007, shipments of workholding equipment from the U.S. were up 20.8 percent from third quarter 2006, according to the Workholding Product Group of AMT. Workholding equipment shipments within the U.S. by the 35 companies participating in the WPG statistical report totaled $55.1 million while exports amounted to $12.8 million.

The report from the WPG shows that domestic workholding equipment orders increased 12.0 percent and U.S. exports increased 82.8 percent from year-earlier levels.

The export figure is boosted by record high exports in July followed by strong exports in the second two months of the quarter.

The Midwest remained the largest domestic destination, with 42.8 percent of total domestic shipments going to that region. The West's and Northeast's shares of orders remained level, while the Central region went from a 20.9 percent share in the second quarter to 16.1 percent in the third quarter. The South increased share slightly, moving from 15.5 percent up to 17.3 percent. Additionally, third quarter 2007 employment levels were up 8.0 percent from the same quarter in 2006.

The Workholding Product Group is comprised of AMT members who produce chucks, jaws, collets, vises, fixtures, and other workholding equipment.

Protective Equipment Not Chic Enough for Some

For the second year in a row, a survey of safety professionals has found that noncompliance with personal protective equipment – PPE – protocols continues to be an issue in the workplace.

Eighty-seven percent of respondents said they had observed workers failing to wear PPE when they should have been, according to a survey of attendees at the 2007 National Safety Council Congress in Chicago, conducted by Kimberly-Clark Professional, Roswell, GA. Eighty-five percent of safety professionals answered yes to the same question in a survey undertaken by Kimberly-Clark Professional at the 2006 NSC Congress.

"Despite the undisputed need for PPE when undertaking hazardous tasks, people continue to risk bodily harm by failing to protect themselves," Randy Kates, general manager of the safety business for the company, said. "In this survey, we not only asked why people did not comply with PPE protocols, but what could be done to alter these behaviors."

The main reason for not using protective gear was discomfort, according to 62 percent of respondents, followed by workers thinking PPE was not necessary for the task, PPE was too hot, PPE fit poorly, or was unattractive.

When asked what could be improved about PPE, three quarters of survey respondents said they would increase comfort. Safety professionals also gave the nod to more fashionable PPE. Eighty-four percent said that they would be more apt to purchase fashionable and attractive PPE if workers would be more likely to wear it and the price was comparable to what they were currently paying for similar products.

Respondents were also asked whether they were concerned about the potential health and safety issues faced by their workers as a result of exposure to oil, grease, heavy metal residues, or other toxic elements on reusable rental shop towels. Nearly three-quarters voiced concern, with 44 percent of these respondents saying they were very concerned. Twenty-three percent said they were not concerned.

AWS Receives $200,000 for Welder Education

The American Welding Society and the American Welding Society Foundation, Miami, FL, each received a $100,000 donation from the Hobart Institute of Welding Technology, Troy, OH, and OKI Bering, Cincinnati, to help relieve the nationwide shortage of welders.

The AWS estimates a shortage of at least 200,000 welders by 2010. The Hobart Institute of Welding Technology provides training and education about various welding technologies. OKI Bering is a wholesaler of welding, safety, and industrial supplies.

The donations were granted to the AWS Foundation Welder Workforce Development Program, which was launched in 2006 to address the need for recruitment and specialized training of entry-level welders while supporting welding workforce needs for companies. The Welder Workforce Development Program is part of the AWS Foundation's $10 million capital campaign, "Welding for the Strength of America," aimed at facilitating programs, scholarships, and other initiatives in support of the welding industry. At year-end 2007, the AWS Foundation raised $2.6 million toward its campaign.

OKI Bering's donation will be granted over a five-year term beginning in 2007. The funds are earmarked for the development of a welding industry career website that allows job-seekers to search and apply online for job opportunities at various levels.

During the next five years OKI Bering will direct its surplus inventory materials to welding schools across the nation. Welding materials are one of the many critical necessities in school welding programs, but the expense of purchasing materials can be high, and often programs are forced to close due to lack of funding. It is expected that the total donated inventory will amount to more than $1 million.

Hexavalent Chromium Fume Control Guidance White Paper

A white paper from the United Air Specialists, Cincinnati, provides specific guidance on how to comply with OSHA specifications on hexavalent chromium and minimize harmful exposure through air filtration.

Hexavalent chromium compounds are used as corrosion inhibitors and present an occupational hazard to workers that weld, cut, torch cut, or grind chromium-containing metals such as stainless steel. Exposure to hexavalent chromium through inhalation or touch can pose health risks to workers, including lung cancer, skin and membrane ulcerations, allergies, and skin irritation.

Welding environments vary, including the welding process in use, the amount of hexavalent chromium fumes generated, and the welding location. In the paper, experts explain why a source capture system combined with a cartridge collector can deal with stainless weld fumes in each of these scenarios.

The white paper, "Fume Collection Solutions for Hexavalent Chromium Exposure" can be downloaded in PDF format by going to the United Air Specialists web page – http://www.uasinc.com/ – and clicking on the "New UAS White Paper" link on the left side of the page.

Mazak Expands Technology Center

Mazak Corp., Florence, KY, is expanding its Southwest Regional Technology Center, in Houston, TX. The technology center opened in 1982, focusing on manufacturing technologies for the energy industries. The $2 million additional investment will create another 40,000 ft2 of floor space and reconfigure the center for easier customer use.

The first floor will include capabilities for product and process applications development, including room for more than a dozen multi-tasking and 5-axis machines – Integrex e-Series Vertical and Horizontal machines, Variaxis Mark II Series, Cybertech Turn Series, and others. This floor will include customer classrooms, conference rooms, seminar and presentation areas, and a dining room.

"Since the Southwest is a leading market for Mazak's Integrex and other multi-tasking models, we are committed to providing advanced manufacturing training close to the customers in this valuable market," Brian Papke, Mazak president, said.

Expanded sales and support offices will be on the second floor. The parking area will accommodate more than 130 customer vehicles.

Mazak will be networking the developments that come out of the Southwest Regional Technology Center and making them available to all companies involved in the production of energy-related components.

Gibbs & Associates Merges with Cimatron

Gibbs & Associates, also known as Gibbs Systems, Inc., Moorpark, CA, developer of GibbsCAM, will merge with Cimatron, an Israel-based, international CAD/CAM software company.

Gibbs, known for its CNC machine tool software, will be the U.S. subsidiary of Cimatron. The combined companies' annual revenues are expected to exceed $40 million, moving Cimatron into the top 10 CAM software vendors.

Cimatron will pay William "Bill" Gibbs, founder, chairman, and CEO of Gibbs System, and its sole shareholder, a cash consideration of $5 million, as well as 1.5 million newly issued ordinary shares of Cimatron.

Cimatron's outstanding share capital after the closing will be comprised of approximately 9.4 million ordinary shares.

Company representatives said the merger of CimatronE integrated CAD/CAM suite for toolmaking and the production-geared GibbsCAM application lets the merged company offer a product portfolio for the entire spectrum of manufacturing.

Following the closing, Bill Gibbs will continue to manage the GibbsCAM product-line business as president and CEO of the new subsidiary, and will join the Cimatron senior management team. In addition, Mr. Gibbs will be nominated to serve as vice chairman of Cimatron's board of directors. Cimatron is headquartered in Givat Shmuel, Israel.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange, with subsidiaries and a distributor network located in more than 35 countries.

In a statement to Gibbs employees, Bill Gibbs wrote that he had several reasons for the merger: "CimatronE is a good product; Cimatron is a publicly traded company; this provides financial potential a private company doesn't have. I like the people running Cimatron."

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