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NewsDesk: Manufacturing Growth Strengthens

Economic activity in the US manufacturing sector expanded in November for the sixth consecutive month, while the overall economy grew for the 54th consecutive month, according to the Manufacturing ISM Report on Business released on Dec. 2.

The PMI registered 57.3%, an increase of 0.9 percentage points from October’s reading of 56.4%. The PMI has increased each month since June, with November’s reading reflecting the highest reading of 2013.

The ISM report is based on a survey of purchasing and supply executives, and readings below 50 indicate contraction, while those above 50 indicate expansion.

Aside from the PMI, nine of the 10 indices tracked as part of the Manufacturing ISM Report on Business showed growth in November. That included: New Orders (63.6%), Production (62.8%), Employment (56.5%), Supplier Deliveries (53.2%), Inventories (50.5%), Prices (52.5%), Backlog of Orders (54.0%), Exports (59.5%), and Imports (55.0%). The only index showing contraction was Customers’ Inventories (45%).

Source: Institute for Supply Management

Of the 18 manufacturing industries, 15 reported growth in November in the following order: Plastics & Rubber Products; Textile Mills; Furniture & Related Products; Primary Metals; Food, Beverage & Tobacco Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; Computer & Electronic Products; Nonmetallic Mineral Products; and Fabricated Metal Products. The three industries reporting contraction in November are: Apparel, Leather & Allied Products; Wood Products; and Machinery.

In the machinery area, one of the survey respondents said: “Federal debt, deficit and inefficiency are causing a level of caution and uncertainty.”

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More Vendor Tooling Capacity Needed

By 2018 Harbour Results Inc. anticipates vendor tooling capacity constraint within the automotive industry, according to its 2013 Vendor Tooling Study released late last year.

In approximately five years, the required capacity of the vendor tooling industry will reach $15.2 billion, with available current supply of only $9.25 billion, Harbour found.

Vendor tooling, which is tooling purchased by the original equipment manufacturer (OEM) to be run in Tier One or Tier Two facilities, is a crucial part of the automotive industry and the vehicle development process, accounting for an average of $550 per vehicle in North America at 2012 vehicle volume. This capacity issue affects the entire value stream from vendor tooling suppliers to Tier One suppliers and OEMs.

“Capacity will become a serious challenge for the automotive industry in the near future. If the North American tooling industry doesn’t respond to the challenge someone, such as European and Asian tooling suppliers, will,” said Laurie Harbour, president and CEO of Harbour Results Inc. “Our study, in partnership with the Original Equipment Suppliers Association [OESA], addresses potential issues that we’ll face and provides several strategies to counteract industry changes.”

The study gathered information from 10 OEMs, nearly 50 major Tier One suppliers and more than 50 global tooling suppliers.

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FABTECH Sets Attendance RecordFABTECH 2013

Held in November in McCormick Place in Chicago, FABTECH 2013 set records in terms of numbers of attendees and exhibitors as well as floor space. In all, 40,667 attendees visited 1573 exhibitors at product displays spread across 650,000 square feet of exhibits at McCormick Place. Attendees also benefited from the FABTECH educational conference held simultaneously with the four-day expo that included an unprecedented number of expert-led sessions on some of the hottest topics in manufacturing.

FABTECH Canada, will take place March 18–20, 2014 at the Toronto Congress Centre. On April 10–12, the inaugural FABTECH India, co-located with the India Institute of Welding’s Weld India Exhibition, will take place in New Delhi. On May 6–8, 2014, FABTECH Mexico will take place at the Centro Banamex in Mexico City.



Hannover Fairs USA (HFUSA), the US subsidiary to Deutsche Messe organizer of the world’s leading trade fair for industrial technology, HANNOVER MESSE, on Dec. 5 announced a long-term partnership with The Canadian Wind Energy Association (CanWEA) to further grow CanWEA’s Annual Conference and Exhibition. In concert with CanWEA, HFUSA will promote CanWEA’s Annual Conference and Exhibition among a global network of exhibitors, delegates and attendees. The partnership will provide additional support to CanWEA members that also participate in wind energy events in Hannover, Germany and around the world.

The next HANNOVER MESSE will run from April 7 to 11, 2014, in Hannover, Germany. Next year marks the 30th anniversary of the CanWEA Annual Conference and Exhibition, which will be held October 27–29, 2014, at the Palais des Congrès de Montréal in Montréal, Québec. For more information, visit


Mergers & Acquisitions

MISTRAS Group Inc. (Princeton Junction, NJ) has acquired Carmagen Engineering Inc. a professional engineering consulting and technical training services provider serving the hydrocarbon processing and other energy-related industries. Since 1986, Carmagen has been providing a wide range of services focused on the oil & gas industry that includes plant operations support; profit improvement analysis; turnaround planning & execution programs; and technical training ranging from process safety to reliability and maintenance, to asset design and integrity instruction. MISTRAS is a global provider of technology-enabled asset protection solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure. For more information, visit

Openings & Expansions

Milacron (Batavia, OH), a global supplier of plastics-processing technologies and industrial fluids, is opening a High Impact Technical Center in Irvine, CA. The center will feature a state-of-the-art showroom, customer training facilities and space for servicing, retrofitting and rebuilding. For more information, visit




GF AgieCharmilles (Lincolnshire, IL) on Dec. 4 announced it will become GF Machining Solutions, a name change that underscores that Georg Fischer AG (GF) is a unified company with three divisions. The change is effective Jan. 1. The new name emphasizes the company’s role as a total solutions provider. The company’s portfolio includes milling, EDM, laser texturing, spindles, tooling, automation and customer services. For more information, visit

Hwacheon Machinery America (Vernon Hills, IL) is adding sales and service dealers for its line of CNC turning machines, machining centers and mold and die machines starting Jan. 1, Robert Nedler, Hwacheon vice president of sales, said in December. The addition of Maruka USA and Motch & Eichele is a major part of the company’s plan to increase market share for its CNC machine tools and represents an upgrade in the quality of its sales, application assistance and service capabilities. For details on which states will be represented by Maruka USA and Motch & Eichele, visit

NASA and the Commonwealth Center for Advanced Manufacturing in Richmond, VA, on Dec. 3 announced they have joined forces to advance technology and innovation. As a government member, NASA will bring access to unique government facilities and programs and provide liaisons to CCAM’s Industrial Operations Board and Technical Advisory Council. NASA scientists will conduct research and development at CCAM and NASA Langlely as collaborative work between NASA, CCAM, industry partners, the University of Virginia, Virginia State University and Virginia Tech. For more information, visit


The German Future Prize was presented on Dec. 4 to a team of experts from TRUMPF, Bosch and the University of Jena. Federal President Joachim Gauck awarded the prize in Berlin to Dr. Jens König (Bosch), Dr. Dirk Sutter (TRUMPF) and Professor Stefan Nolte (University of Jena). The three researchers have established ultrashort pulse lasers as a new tool for industrial production with virtually unlimited possibilities. “We’ve opened a door into a new realm and we won’t know its precise size or full details about it for a very long time,” said Dr. Peter Leibinger, vice chairman of TRUMPF GmbH + Co. KG and president of the Laser Technology and Electronics Division.

Workforce Development

Sandvik Coromant (Fair Lawn, NJ), a global producer of cutting tools for the metalcutting industry, has launched an interactive Metal Cutting Technology (MCT) e-Learning program. The online program was developed by the Sandvik Coromant Academy and was based on the needs of manufacturing personnel all over the world. The 75-course curriculum is ideal for engineers, programmers, operators and students. For more information, visit

NewsDesk is edited by Editor-in-Chief Sarah A. Webster. Please email NewsDesk submissions to


This article was first published in the January 2014 edition of Manufacturing Engineering magazine.  Click here for PDF

Published Date : 1/1/2014

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