May 2008 Edition

INDUSTRY NEWS

Tornos/Tsugami Alliance Has Little Impact in U.S.

While Tornos S.A., Switzerland, and Tsugami Corp., Tokyo, announced the formation of an alliance in February, Bradley Morris, president of Rem Sales, the exclusive North American importer of Tsugami machine tools, clarified the announcement. He said the partnership agreement primarily affects Europe and Asia.

"Basically there are two steps to the agreement," he said. "In the first contract, Tsugami is building an entry-level, single spindle machine in China for Tornos to sell in Europe and Asia. In the second, Tsugami is distributing Tornos multispindle machines in Asia. Here in North America, Rem Sales will continue to sell and support Tsugami machines. The two companies and their sales and support networks remain independent."

Welding Equipment and Supplies Predicted to Grow
 to $13.2 Billion by 2008 End

The global market for welding equipment and supplies will be worth $13.2 billion by the end of 2008 according to a report – Welding Equipment And Supplies: The Global Market – from BCC Research. It is expected to increase to $16.8 billion by 2013, a compound annual growth rate of five percent.

The market is broken down into applications of welding equipment and consumables, various gases for welding, safety and protective equipment, and welding robots and accessories. Of these, welding equipment and consumables have the largest share of the market. Worth an estimated $10.7 billion by the end of 2008, this segment should reach $13.6 billion in 2013. This segment is a steadily growing one as consumables are required not only for new equipment but also for all existing equipment.

Various gases for welding have the second largest share of the market. Expected to be worth $2 billion in 2008, this segment should reach $2.6 billion by the end of the study period. Gases are used for shielding as well as for welding processes.

The safety and protective equipment segment will be worth $406 million by the end of 2008. It should reach $487 million by the end of the study period. This segment is growing steadily as safety regulations are enforced globally.

More industries are automating their production to a large extent, and robot welding is becoming a standard feature of such automation. The market for welding robots is growing at a higher rate than any other market for industrial robots.

Expected to be worth $108 million in 2008, this segment should reach $148 million by the end of the study period.

2007 a Record Sales Year for CAD/CAM Developer Delcam

CAD/CAM developer Delcam achieved record sales in 2007, continuing the strong increase that has been seen in recent years. Group sales for the year to December 31, 2007 rose by 11 percent to $59.3 million from $53.3 million in 2006. The results were driven by growth in software licence and maintenance sales in the core Power Solution range of software, and by additional revenue from the company’s newer software ranges, FeatureCAM, which was acquired in July 2005; PartMaker, which was acquired in July 2006; and Crispin, which was acquired in December 2006.

Profitability suffered as result of the weak dollar. With more than half of Delcam’s global sales undertaken in dollars, the weakness impacted profit by more than $1 million. Profit before tax was $4.29 million compared with $5.57 million achieved in 2006.

Peter Miles, Delcam’s president, pointed to the expected benefits of the closer relationship with leading metrology supplier Renishaw, following its $12.17 million investment in April, as a contributing factor to the company’s profits.

"Since then, we have been working together on new initiatives," he said, "including the development of software to support Renishaw’s new inspection probes and for applications in the medical industries."

Las Vegas Machine Tool Show to Premiere in 2011

The American Machine Tool Distributors’ Association and Society of Manufacturing Engineers announced they will collaborate on the Machine Tool Experience-Las Vegas – MTELV – event to be launched in 2011.

MTELV – pronounced metal-ev – is an industry event for machine tool professionals by machine tool professionals. It is projected to combine features and strengths of corporate open houses, customer training sessions, client appreciation events, and new product announcements.

AMTDA and SME will have equal representation on planning and operational committees. They will work with representatives of builders, distributors, and customers to develop MTELV 2011, and will share details with the industry sometime this summer.

The MTELV collaboration is in addition to the existing agreement between AMTDA, SME, and AMT for the current APEX events such as WESTEC and EASTEC.

CAD Growth Slows, but Remains Strong

The CAD industry has undergone a renaissance during the last five years as a result of factors such as hardware advances that put 64-bit, multi-core computers into the mainstream.

According to a report by Jon Peddie Research, CAD software vendors saw combined revenues of $5.23 billion in 2007. The CAD software market increased 20 percent in 2007 compared to 2006 when revenues were $4.36 billion. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies. Strong growth continues in the emerging economies that will then offset contractions in the west.

In addition, there was broadening acceptance of 3D techniques. Also, the marriage of CAD visualization with information management helped redefine the CAD industry and extend its relevance throughout the enterprise. In an industry known for a conservative rate of change, there is a significant shift taking place as smaller businesses invested in new technologies to improve their processes and efficiency.

In 2008, Jon Peddie Research estimates the CAD market will grow to $6 billion, an increase of 15 percent. This is slightly down from an earlier prediction of 18 percent growth with some vendors facing decreased sales primarily in the architectural fields. In all, however, the CAD industry is growing and will continue to grow through 2012.

In 2007 the worldwide installed base of CAD users reached 5.31 million, a 20 percent increase from 2006 when the number of CAD users was 4.42 million.

In 2007 the majority of CAD users, 63 percent, were working in 2D, and 37 percent worked in 3D. However revenues for 3D CAD programs are higher. In all, revenues for 3D accounted for 53 percent of the market and 2D accounted for 47 percent of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. The research group states the trend will continue. Since 2D programs are less expensive than 3D, the research company sees the slow encroachment of 2D programs offered for free by companies hoping to woo 2D users to their 3D products.

The trend to 3D will continue but not all of the 2D users are going to make the transition to 3D. In many cases, the transition means a change of job description. Sometimes, the growth of 3D CAD is happening as professionals add CAD to their portfolio of tools. However, 2D users who make the transition to 3D can expect to see increased job prestige and increased income.

Conference to Examine Cutting Edge Manufacturing Innovations

The Society of Manufacturing Engineers announced the Innovations That Could Change The Way You Manufacture initiative. This member-driven initiative outlines emerging technologies with potential positive impact on manufacturing. It also provides an educational framework for SME members and manufacturing practitioners to keep up-to-date with the industry’s latest and greatest innovations.

These innovations, which include such "what’s hot" advancements as Direct Digital Manufacturing; DDM; "what’s now" like self-assembling nanotechnology; and "what’s green or eco-friendly" like ultracapacitors; will be showcased at the upcoming Competitive Manufacturers Conference scheduled for June 17 to 19 at the Chicago Marriott Schaumburg. It is designed to connect manufacturing professionals to leading industry experts.

The Innovations initiative was born out of a series of meetings, e-mail exchanges, and other communications between SME’s Technical Community Network – TCN – and the larger manufacturing community. The TCN requested nominations for ideas from the community, kept some and eliminated others, and then presented its findings to SME’s Manufacturing Enterprise Council for review. The Council selected five innovations that could change manufacturing based on such criteria as universality across industries, positive impact on manufacturing, current availability for integration, and overall industry value. These innovations include

• Direct Digital Manufacturing;
• Ultracapacitors;
• Self-Assembling Nanotechnology;
• Intelligent Device Integration – IDI; and
• Integrated 3D Simulation and Modeling/Desktop Super Computers

Some, like DDM, ultracapacitors, and self-assembling technology are already making an impact on industry, while others such as, IDI and integrated 3D simulation and modeling/desktop super computers, hold great potential for industry-wide use.

DDM is becoming an essential part of the nation’s key manufacturing industries such as aerospace, automotive, medical, and entertainment. The automotive industry uses DDM as a part of additive fabrication to build assembly aids. Orthopedic surgeons use it to create customized metal joint implants. It is used by video game designers to develop gaming characters.

Ultracapacitors have 10,000 times more stored power than a typical D-cell sized electrolytic capacitor. Ultracapacitors also have an unparalleled life span. These high-density energy storage devices now provide long-lasting power solutions for cellular electronics, medical equipment, and hybrid automobiles.

Self-assembly nanotechnology also made the list because this "what’s now" and "what’s green" innovation has moved beyond theory to practice, most notably when IBM used it to enhance conventional computer chip manufacturing. This technology makes it possible for objects, devices and even systems to form other structures without external prodding or manipulations.

This type of manufacturing at the microscopic level also holds great promise to enhance daily life with such possible uses in water purification, sanitation, agriculture, computer manufacturing, and more. The innovation’s "green" element comes in when it applies to alternative energy such as photovoltaics or converting the sun’s energy into electricity.

The fourth innovation also selected for its "what’s hot" potential is, Intelligent Device Integration, in which equipment, instruments, or machines have their own computing capability. Currently used in personal and handheld computers, IDI offers visibility into, and management of, equipment, products, and consumer interactions. By combining sensor data with two-way wireless communications, it promises more detailed, real-time views of activities and objects, and will enable organizations to respond faster and predict manufacturing incidents before they occur.

Integrated 3D Simulation and Modeling/Desktop Super Computers, the final innovation that could change manufacturing, are destined to revolutionize computer modeling. For instance, a large computer display showing automobile data. From it, users could see any segment or part instantly and in as much component detail as desired, with 3D display and full rotation. These super computers will make it possible for the computer to be used as a microscope, telescope, and "time machine" to manage, view, and tool a complete manufacturing system.

These five innovations will be featured at the Competitive Manufacturers Conference. Other conference highlights will include interactive sessions on Lean Manufacturing practices and collaborative strategies with a special focus on ways a company can develop its own innovations.