CNC West News Features

Decenber 2001 •  January 2002 • Vol. XX No. 2 • An Arnold  Publication

Industry  NewsExecutive Hotline

Executive  Hotline

The BIG News- Lockheed Wins $200 Billion Contract for 3000 Supersonic Jets, Many Subcontractors Will Benefit Over 20 Years

DOD chose Lockheed-Martin's design for the new Joint Strike Fighter for Air Force, Navy and Marines plus the British air force and navy. Boeing lost out but could be a subcontractor along with Northrop Gruman, BAE Systems of Britain and Raytheon, plus Pratt & Whitney for jet engines worth $4 billion over 9 years, $50 billion over 30 years starting in 2007.

Western aerospace vendors will benefit with subcontracts. Northrop will add 1600 employees the first year, 1200 in El Segundo, CA. for design and assembly of the center fuselage. Moog Aircraft Group in Torrance, CA. may benefit for its mechanical systems. Its one of dozens of So. Calif firms getting a share of the $100 billion in subcontract work to flow into the region. TRW's San Diego operation expects $5 billion in decades to come.

The program will pump $30-$40 billion into Northrop's Air Combat Systems operation between now and 2040. Northrop will use four major machine shops locally including Brek Manufacturing, Gardena and Arden Engineering of Orange. Assembly will occur in Palmdale while Lockheed will do assembly in Ft. Worth, Tx. The initial phases of production last until 2012.

Shipbuilder Northrop Wins OK for $2.1 Billion Newport News Takeover

Newport News shipbuilding agreed to the $2.1 billion takeover by Northrop Grumman. The merger creates a work force of 97,000 and adds a third shipbuilder to its roster involving 17,800 workers. It owns yards in Louisiana and Mississippi that make Navy ships. Its bid won over General  Dynamics deal and had Pentagon approval. And the present war footing means business for Northrop's Global Hawk unmanned aircraft which could mean 60 for the Air Force. Also, there's hope more B-2's could be built, 21 of which were made between '93 and 2000.

Co. has a new president also, Ronald Sugar, former chief of both TRW and Litton. Newport News has sales of $2 billion and backlog of $8 billion, good for 5-7 years. Northrop also has these acquisitions under its wings besides Litton. It bought Grumman, Logicon, Ryan Aeronautical.

The F-35 will boost California subs. It's home to 13 of the 67 major subs for Lockheed and many will also farm out some work. Major production won't begin for 10 years. Others ready to benefit include Paramount Machine, Rancho Cucamonga, Parker Aerospace, Irvine, and Eaton Aerospace, also Irvine. Companies expect work to generate $5 billion each over the course of the project. Kavlico, Moorpark, makes position sensors, part of plane's hydraulics. Some expect overall work to benefit at least 200 companies. One expert figures that for every 100 jobs first-tier subs will spawn 600 to 1000 more at machine shops.

Small Cerritos Firm Seeks Marine Award 
For Rugged Combat Vehicle

Flyer Technologies of Cerritos, CA. is expanding its dune buggy sights to a light strike vehicle for the Marine Corps called the Flyer 21 (ITV-LVS). It has a range of 450 miles, speed to 75 mph, has turbo intercooled diesel, seats 1 to 6.

If contract is won vehicles would be made in El Segundo, returning auto making to So, Cal for first time since GM closed is Van Nuys Chevy plant in 1992. Initial contract would call for 2700 vehicles worth about $250 million..

Mergers & Acquisitions...Buy & Sell Remains Strong

IBM has acquired Burlingame, CA- based Crossworlds, pioneer-application integration software company, for $129 million. CrossWorld's product allow businesses to integrate disparate software applications... GenCorp, maker of aerospace products and chemicals, has regained ownership of Aerojet Fine Chemicals from NextPharma Technologies. Sacramento-based Aerojet gets the 40% ownership returns to GenCorp which gets back the 40% of Aerojet it didn't already own.. Kodak has bought Encad, maker of wide format inkjet printers for $25 milllon. Encad is based in San Diego, Ca. Sales of these printers amount to about $2.4 billion a year, increasing by 15% annually... Motorola agreed to buy Synchronous of San Jose, CA. for $260 million in stock. The company, founded in 1980, makes fiber-optic equipment that boosts capacity of cable systems.   Jupiter Networks paid $200 million in stock for Pacific Eroadband Communication of San Jose, CA. whose products are cable-modem termination systems. Juniper say the market is now $500 million year and will grow to $9 billion in 2005.... Applied Materials, Santa Clara, CA. has purchased Schlumberger of France's electron-beam water-inspection business for detecting microscopic defects that ruin expensive silicon wafers.

Female-Owned Firms Grow at Fast Pace, 
California Leads Nation, Growth up 14%

Women-owned businesses have grown 14.3% in Calif. compared to 7% nationally since 1977, more than four times. 1.6 growth rate of all local private businesses. Sales rose 61.5% vs. 40.4% nationwide. Portland, OR leads in number of women owned businesses with 35%, St. Louis is second with 33%, San Francisco has 60,601 female-run businesses employing 97,927 people generating $22.5 billion in sales. Oakland has 59,794 such firms with 92,866 workers generating $16.1 billion.

Despite Commercial Cutbacks a New Diversified Boeing Thrives as Both Prime and Sub Contractor

Boeing is well positioned to gain military spending, deriving about 40% of sales from defense and space business, airplane's share down to 60%. Says Chairman Phil Condit, "its been gratifying to see that our strategies were robust". The $51 billion firm now headquartered in Chicago has set up  three distinct businesses that operated as such. Boeing may close its 717 jet line in Long Beach but continue 777 output in Seattle. It has orders for 127, 82 delivered and may deliver 522 airliners this year but only 350-400 in 2002. Its Delta 4 rocket is set for launch in April. So space, communications and missile products are the new focus with ballistic missile defense program, satellites, missile and air traffic management.

It will develop a fuel cell powered single engine plane that could eventually replace gas turbine auxiliary power units.

Chipmakers Rebound in Sales, Prices, 
Innovations Continue for Smaller, Faster Ones

Leaders in semiconductor field have aggressive 15-year plan leading to smaller and faster circuits and computers. By 2013 chipmakers will make circuits of only 32 nanometers and by 2016, get down to 22, less thank one two hundredth thickness of single red blood cell. Ananometer is one billionth of a meter. Today chips are based on 180-nanometer technology. Intel has moved into 130 devices. Intel's transistor design, the Terahertz, can switch off 1-trillion times a second.... Chip sales expected to climb 6% next year to $150 billion, $218 billion by 2004... And Genecor of Palo Alto, CA. and Dow Corning plan to build biological machines on slivers of silicon. Both firms are teaming up to build biochips.

LATE NEWS at Presstime

After a decade of consolidation the Los Angeles defense industry is poised to grow again. Aircraft & Parts has $4 billion output last year with 52,000 workers, ship & boat build did $37.5 million while guided misiles, space vehicles did $145 million... Apple Computer has unveiled a $399 portable music player device the size of a card deck as it ventures beyond the world of personal computers....Sunnyvale' Cepheld biotech firm has developed the portable smart Cydler to identify anthrax, smallpox and other deadly pathogens. Company is also developing device called GeneXpert to simplify DNA ID's by handling all 3 types of process in a single machine... The Nummi plant in Fremont, CA. (GM & Toyota) will make a fourth vehicle in 2002, the 2003 Toyota Voltz to be sold in Japan, a right-hand drive version of the Pontiac Vibe sports-wagon for U.S. starting in Feb./Mar. GM hopes to sell 40-50,000 Vibes in 2002, 60-75,000 in 2003, Nummi now makes Toyota Tacoma pickup, Corolla sedan and Chevrolet Prizm sedan... Applied Materials, Santa Clara, CA. based chip equipment maker, landed a $200 million order from a Shanghai semiconductor company. Its for Grace semiconductor, building a $1,5 billion chip plant in Shanghai... Federal Reserve reports high tech's economic clout is two times greater in western U.S. than rest of nation. High tech paychecks cover 14.6% of non-farm wages in 9 western states compared to only 7.5% in rest of nation. Its 17% in Calif. and 16% in Washington state...Superior industries, Van Nuys, CA. wheelmaker for cars, wins contract with Daimler-Chrysler in Germany for aluminum wheels for 2002 Chrysler PT Cruiser..Howmet Aluminum of City of Industry is closing its plant that sells aircraft parts to Boeing. Co. is subsidiary of Alcoa, Darien, CT.

Industry News

Daewoo Expands West Coast Sales and Service

In a move designed to expand its customer service capabilities, Daewoo has opened a modern 3,800 sq. ft. office and showroom for its western region in Sante Fe Springs, CA.  Sharing space with Daewoo at this location is its southern California distributor, Protek Machinery. Protek is headquartered in Simi Valley Ca. along with their tech center.

The new facility houses the company’s west coast showroom, and will provide sales, service, demo and training that comprise Daewoo’s West Coast Region.  The combined staff consists of eleven administrative, sales, programming and service professionals. Representative selections of Daewoo turning and machining centers are available for demonstration.  Replacement parts inventory are available at both tech centers. 

Daewoo is one of the world’s foremost builders of powerful horizontal and vertical turning centers and machining centers, and has served the U.S. metalworking industry for more than twenty years.  Protek is a well respected distributor of metalworking machines and supplies.  It’s management team shares more than 50 years industry experience.

Brown & Sharpe Expands West Coast Operations with Addition of Two Distributors

Brown & Sharpe, Inc. has added two distributors to its west coast sales operation.

H S and S Inc., Santa Clara, California, will represent Brown & Sharpe in Northern California.  The company has 10 employees and operates a technical support center, showroom and service department.

HP Gaging, Riverside, California, will represent Brown & Sharpe Measuring Systems in an area from east Los Angeles to Riverside County, California and will be one of two distributors representing Brown & Sharpe Precision Measuring Instruments in Southern California.

 “Both of these distributors have extensive experience selling and servicing measuring systems,” said Angus Taylor, Brown & Sharpe west coast Regional Manager.  “They each bring a high degree of knowledge and professionalism to our operations.”

Name Change for Hardinge® CNC Lathes

Hardinge machines have the unique ability to easily accept a jaw chuck or a collet without the use of an adapter. This capability is now being emphasized on the company’s latest line of QUEST® high-performance, multi-tasking CNC lathes.

 QUEST 51 machines are now labeled QUEST 8/51 (8" jaw chuck/51mm bar capacity) and QUEST 65 machines are QUEST 10/65 (10" jaw chuck/65mm bar capacity). Both machine sizes are offered in precision & Super-Precision® versions.

 Because an adapter is not required for the use of collets on Hardinge lathes, the collet seats directly in the spindle allowing gripping forces directly over the workpiece. The result is minimum overhang of the workpiece from the spindle bearings, resulting in maximum part rigidity for heavier deeper cuts, maximum utilization of spindle RPM, superior tolerances and finishes, and a larger work envelope than lathes equipped with only a jaw chuck or collet adapter.

Todd Jones Appointed  General Manager 
Of  Methods West/
Southern  California

Bill Ankrom, Methods corporate vice president, has appointed Mr. Todd F. Jones as general manager of the Methods West/Southern California office.

Mr. Jones is an 18 year veteran of the Methods West office in Phoenix, Arizona. He has been the senior sales engineer and, for the past two years, the engineering manager of the Methods High-Speed Tech Center specializing in high-speed machining applications and engineering. Jones is a degreed engineer and has given several seminars on HSM technologies.

Methods is the exclusive USA importer/distributor for Nakamura turning centers, Matsuura machining centers, Fanuc machining centers and wire EDM systems. Methods West is also the distributor of Citizen swiss screw machines in southern California and Arizona.

The California office specializes in multi-axis turning applications and engineering.

Scott George Joins Methods West As District Sales Manager

Todd Jones, Methods West general manager, has appointed Mr. Scott V. George as Orange County district sales manager. Mr. George is a collegiate All American swimmer and water polo player and a 1991 graduate of Cal State Long Beach. He has worked in the southern California industrial machinery business ever since and most recently with the DMG Group.

 Mr. George has complete sales responsibility in Orange County for all Methods milling and turning technologies and Citizen swiss screw machines. He resides in Huntington Beach with his wife and two daughters.

Randy Martin Joins Dix Metals

Dix Metals announced the addition of Randy Martin to its sales team. Mr. Martin was previously General Manger of Precision Aluminum Sawing Service, Los Angeles. With some 30 years of hands-on experience in the metal service industry, Mr. Martin attended San Jose State.

  Dix Metals recently moved into a new 111,000 sq. ft. facility located in Huntington Beach, California. Dix was founded in 1972 and was originally located in Santa Ana, California. According to Bob Dix Sr., president of Dix Metals, Inc., “The company originally provided raw materials (primarily aluminum) to customers in the manufacturing and metalworking industries. During these initial years, the company found that many precision machining applications required raw materials to be squared prior to finish machining. CNC and conventional machines are not designed to efficiently remove stock to precision dimensional flat, square, and parallel tolerances. Through the years, Dix   has invested heavily in equipment specifically designed for this purpose and demand for precision tolerance blanks has grown considerably.”

Tim Pyle Joins MTI As Manufacturer’s  Rep

Manufacturing Technology, Inc. (MTI)—manufacturer of slicing and dicing systems and related abrasive products, including diamond blades and saws—has announced that Tim Pyle has joined MTI as West Coast and Southwest Manufacturer’s Representative.

Tim Pyle brings more then 20 years of experience in sales and manufacturing and has for the past three years has  worked at MTI supporting sales efforts. According to MTI, Pyle’s new position will allow him to spend more time with the the company’s customer base as he maintains certain key accounts, seeks new business in current markets, and identifies new markets and opportunities for MTI’s product line.

Delcam Seeks Extra Resellers in North America

Delcam, a leading specialist developer of modelling and machining software for the toolmaking industry, is seeking additional resellers for its CAD/CAM systems in North America. 

The company, which is still seeing increased sales of its Power Solution software despite the slow down in the American economy, is looking to further accelerate its growth with additional outlets in central and Eastern Canada and in several US states, including 
Washington, Oregon, Texas and Oklahoma.

Delcam is a supplier of CAD/CAM software for the manufacture of all types of tooling, including moulds for plastics, glass and ceramics, and casting dies, press tools and patterns for metals.

The Power Solution software range comprises the PowerShape hybrid modelling software, PowerMill for the generation of machining data, CopyCAD for reverse engineering, the ArtCAM engraving package, and the  Power-Inspect inspection programm. Together these provide a complete product development solution, from the initial design concept through to tooling manufacture for mass production.

Companies interested in joining the Delcam reseller network should contact: Pedro Leon, VicePresident, e-mail: pl@delcam.com

Siemens Opens California Motion Control Tech Center

Siemens Energy & Automation, Inc.  announced the opening of a western region technical center in Cypress, Cal., to support its machine tool automation customers.

The new tech center will combine resources for OEM Sales, application engineering and field service for the Motion Control Systems business in an existing Siemens facility for industrial and construction sales. The Cypress location was selected to take advantage of the accelerating trend of machine tool OEMs to source traditional machine tool automation products such as CNC, servo and spindle drives with other product groups that include switchgear and PLCs.
Siemens can provide all of these products and systems in complete turnkey cabinet solutions.

Said Sr. account manager Chris Britton, “Customers are increasingly looking for single source suppliers, so having representation of the full Siemens product portfolio locally under one roof makes it easier for them to get the service they need.”  Mr. Britton will head up the new technical center.

Kennametal IPG Names Three Regional Business Managers

 Kennametal Industrial Products Group has reorganized its sales regions to increase the number of regional managers in the field supporting its total portfolio of brands within Kennametal IPG, accoring to Ty Taylor, Kennametal IPG vice president of sales. “The regional sales managers will be able to focus more time with our key distributors than ever before,” said Taylor. “And by supporting Kennametal IPG Brands, we will be able to maximize our market penetration and minimize conflicts.”

Darrel McCoy has been named Kennametal IPG regional business manager for the western states. Jeff Carey has been named Kennametal IPG regional business manager for the Chicago/Milwaukee area. Fred Bock has been named Kennmetal IPG regional business manage for the northeastern sales region.

Kennametal IPG applied product specialists and factory representatives will cover the same territories as they do now, so distributors’ individual sales people  will not change. The change is in the regional structure that oversees and supports field sales.

“Darrel brings more than 20 years of sales, marketing and management experience to his new role,” says Bill Millwee, Kennametal IPG regional business director for the mid-western United States. “His proven ability to build lasting, successful distributor and end-user relationships, and his excellent track record working with manufacturers representatives make him a true asset to the Kennametal IPG sales management team, it’s distributor partners and its end user customers,” he said.

OGP Announces New, Larger Western Technical Center

Optical Gaging Products, Inc. (OGP) has relocated its Tempe, Arizona regional technical center into a larger facility, and expanded the services it offers. The new facility is designed to support sales, applications support, service, and training for the company’s customers in the western United States, Mexico, and western Canada. The move reinforces the company’s commitment to the region it established with its first Arizona office in 1985.

 “We needed more room to meet the needs of our large, and growing base of customers,” says Mark Glowacky, western regional manager  for OGP. “Our new multi-purpose facility lets us do product demonstrations, service, and customer training simultaneously.” Additions were made to the staff at the Tempe office to enhance these services.

The Tempe Technical Center has a dedicated classroom with large screen LCD projection for classroom-based product training, demonstrations, and regional meetings. The demonstration rooms include all the current OGP products including SmartScope Flash, Flare, ZIP and Quest 250 benchtop video measurement systems, SmartScope Quest 450 and Apex large format systems, Cobra 2D and 3D laser profile scanners, and Focus and QL-20 Contour Projectors.

Glowacky says, “Our expanded demonstration labs give us enough room to demonstrate our measurement systems and perform detailed applications studies for our customers at the same time. The decision to move into a large space was customer-driven. We wanted to be more responsive to customer requests.”

NTMA Training Centers Of Southern California Sets A National Record  

NTMA Training Centers of southern California in Norwalk graduated 30 machinist training students Thursday, November 15, setting a national record for the largest graduating machinist training class.

The Los Angeles chapter of the National Tooling and Machining Association established the Training Centers over 32 years ago as part of their ongoing efforts to support and promote the vital contributions made in the country by the machinist industry. The Training centers are located in Norwalk, Costa Mesa, and Ontario, with a new Training Center soon to open in the San Fernando Valley.

The course work completed by this class is financed by the State of California under the Employment Training Panel, which supports programs that provide training to put unemployed workers back to work. The Panel also supports retraining to raise the skill level of California’s employees and advance the State’s economy.

“Graduating a class of 30 students is a tremendous accomplishment by the students and the staff,” said Irv Hart, NTMA Training Centers CEO.

250 applicants competed to enter this class of 32 students, and the 30 graduates who completed the course represent the largest ever graduated from the Training Centers. The 16-week training course involves rigorous classroom training that includes algebra, geometry, trigonometry, blueprint reading and metallurgy, along with progressively challenging hands-on conventional machinist training and computer numerically controlled (CNC) training using state-of-the-art equipment.

NTMA Training Centers of Southern California is a nonprofit Training Center Trust that prepares and furthers the skills of men and women for a successful career in the machining tooling and manufacturing industry; and provides the industry with qualified trained machinists.

Thomas Wright Named
CEO of Acu-Rite.

Thomas N. Wright—CEO of Anilam, Inc., a Miramar, Florida-based manufacturer of CNC controls and DRO systems—was recently named CEO of Acu-Rite, Inc., based in Jamestown, New York. He will maintain both positions.

Acu-Rite, Inc. and Anilam, Inc. are both wholly-owned subsidiaries of DR. Johannes Heidenhain GmbH, a leading manufacturer of encoders and CNCs.

This union coordinates the activities of the two companies to even better serve the needs of their customers. The potential synergies will allow the two companies to run more efficiently and to be better prepared for future growth.

Both companies will continue to develop products within their current product lines and will maintain their independent product offerings. Worldwide field sales and service activities will also continue to function independently.

Changes expected in the near future include joining the research and development strengths of both companies, and combining  manufacturing operations in Jamestown, New York.

Mr. Wright has been with Anilam, Inc. for 16 years, and has a strong  background in sales and marketing of high-tech measuring and CNC equipment. He has been connected to the machine tool industry, which is the main market for Acu-rite´s product range, for over 25 years.

Also recently appointed was Michael D. Metzger, who was named CFO of Acu-rite, Inc. He has been with the company   for 25 years, most recently as vice president of finance and administration.

Mitutoyo To Resell Delcam’s PowerInspect Software For Their Spinarm II Articulating Arm

Delcam has announced that its Japanese subsidiary, Delcam Japan, has signed an agreement with metrology company Mitutoyo for the resale of its PowerInspect inspection software alongside Mitutoyo’s SpinArmII articulating arm.  Mitutoyo’s decision to add PowerInspect to its product range follows a detailed, six-month evaluation of a variety of inspection software.

PowerInspect provides a quick and easy method for the comparison of tooling or sample components with CAD data. This type of inspection is becoming more important throughout the manufacturing cycle as most design data is now issued as CAD models rather than as drawings.

Inspection reports can be produced automatically, including pictorial, graphical and tabulated data. By giving real time results in an easy to understand format, PowerInspect allows problems to be identified earlier and corrected at lower cost.

The Mitutoyo evaluation was undertaken by Shigeo Miyamoto, chief researcher within the products development department of the company’s Kawasaki Research and Development Center. According to Mitutoyo, PowerInspects’s ability to inspect complex, free-form surfaces and the ease of use of the software were major factors in its decision. The strong technical support available from Delcam Japan was also an important factor.

YCI And Ellison Partnership

YCI. Inc., America, based in Santa Fe Springs, CA, and Ellison Machinery Company of Southern California, also located in Santa Fe Springs, recently formalized an exclusive distribution partnership for YCI Precision Machine Tool in Southern California.

Ellison Machinery, a major provider of metal cutting machinery and manufacturing solutions, can dispatch manufacturing, service, application and sales engineers to address the full range of challenges facing equipment users.

“Ellison Machinery is well known in the industry for selling only the highest quality precision CNC and manual machines, making them an ideal representative for YCI products,” says Bryan Chen, executive vice president, YCI Supermax. “Offering decades of machine tool expertise and an outstanding commitment to the customer, Ellison Machinery represents all the qualities that people have come to expect from YCI.”

The YCI-Ellison alliance is based upon the same goal and commitment to their customers; the joint commitment to superior machine quality, excellent service and total customer satisfaction.

According to Mr. Graham Hooper, vp of sales and marketing of Ellison Machinery of Southern California, “The alliance of YCI and Ellison will be exciting and rewarding. The opportunity to combine our capabilities with those of a world-class manufacturer like YCI will greatly benefit our customers and should enhance their competitive position and profitability.”

Ellison is part of the Meritage Corporation, which has 700 employees and offices throughout the United States and Canada. It is one of the largest providers of factory automation equipment and engineering services in the world.

YCI Supermax is one of North America’s leading manufacturers and distributors of CNC and conventional machine tools. The company’s wide range of products includes manual and CNC milling machines, CNC turning centers, CNC vertical and horizontal machining centers. In addition YCI Supermax offers manual and CNC engine lathes, tool and cutter grinders, and radial drills. The company’s products are manufactured in Taiwan by one of the world’s leading machine tool manufacturers: Yeong  Chin Machinery Industries. In addition to being ISO 9001 certified, Yeong Chin is also the first machine tool builder to be awarded with the ISO 14001 Environmental Protection Certification.  

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