CNC West News Features

December 2004 •  January 2005 • Vol. XXIII No. 2 • An Arnold  Publication

Industry  News • Executive Hotline

Executive  Hotline

Gov’t Probes Boeing 100-Tanker & $100 Billion Army Programs as Co. Sees Chinese Demand for 2300 Planes by 2023

As Boeing struggles in its bid for 100 AF tankers worth $23 billion, it's involved with $14 billion Army budget for future Combat System, currently worth $5 billion to Boeing, and sees strong Chinese demand by 2023 for 2300 planes. China plans to open 100 airports for commercial use by 2010. More than half of China’s fleet involves 50%+ from Boeing.

Meantime, Boeing is eagerly building its 777 involving 8000 workers at its Everett, WA. plant where new 7E7 Dreamliner is underway, due to fly by 2008. Boeing was founded there in 1917. Co. sees worldwide demand for new aircraft of 24,300 planes over next 20 years. Primaris,a Las Vegas carrier is buying 20 7E7s while Japan’s All Nippon Airways ordered 50 worth $5 billion.

 The FAA & Boeing are probing older planes for safety problems such as outside scratches. So far 80-plus planes have been inspected, 50 with scratches. They tend to weaken planes. Next round involves 1,950 aging 737s. Later thousands more Boeing aircraft will be inspected from 757’s to widebody 767’s and 747 jumbo jets..

Chip Boom to Falter in 2005

While chip sales worldwide rose 27% in Sept. at $18.4 billion, firms making chip making equipment fell 10% or $96 in orders for every $100 in sales. Compared with August, Sept. sales were down 1.7% to $3.32 billion in the Americas.Semiconductor Industry Ass’n, said sales to grow 6% in 2005 and 14% in 2007. Consumer market now accounts for 50% of chip sales vs. 45% for corporate purchases and 5% government. Among fastest growing market is Optoelectronics, including light-emitting diodes in TV displays. Projected to grow 46% to $13.9 billion this year and 13% to $15.7 billion in 2005.

AMD ships two new chips, the Athlon 64 4000+ and Athlon 64 FX-55 chips. FX-55 runs on speeds of 2.6 gigahertz but its performance matches hypothetical 4 gigahertz Petium 4. AMD puts pressure on Intel to stay competitive on performance. AMD chips will also be made in Singapore, deal made with Chartered Semiconductor.

A market is building for 3-D chips as Matrix Semiconductor, Santa Clara,CA., broke through storage chip that stacks memory like layers of pancakes. Matrix making 1 million chips a month.

ClearSpeed Technology of Los Gatos,CA. developing chip to turn computer into high-powered scientific workstation with chip having 96 processors.

Texas Instruments has success with TV chip for big screen TVs that creates images by bouncing light off a million or more microsopic mirrors. Sales projected at $900 million this year. TI spent millions of dollars over 20 years to develop its digital light processor chip.

Busy chip-equipment maker FormFactor relocated its plant in Livermore,CA., a new $55 million manufacturing facility that’s 135,000 sq. ft. It will have 550 employees.

Toyota May Build Hybrids in U.S.

Toyota, which builds Corollas, Tacoma trucks and Pontiac Vibe for GM in its Fremont,CA. plant with 5,700 workers, may build hybrid cars in U.S. with sales expected of 50,000. Prius hybrid and NUMMI plant in Fremont is 5.3 million sq ft. Facility opened 20 years ago.

Hitachi Cutting Jobs, Hits San Jose Plant

Hitachi Global Storage, hard disk drive maker with 3,800 employees in San Jose, will cut 400 workers. Almaden Research Center has 150 workers. They and 400 more, moved to new campus in Evergreen area of San Jose in Nov..In June 2003, Hitachi bought bulk of IBM disk drive operations in San Jose for $2.05 billion.

Aerospace  Defense Business Active

Silicon Graphics and NASA-Ames have new supercomputer, the Columbia, at NASA in Mountain View,CA. worth $40 million. It comprises 20 Altix Systems and 10,240 Intel Itanium-2 processors. It reached performance of 42.7 trillion calculations per second—or teraflops with 16 systems... Primaris Airlines ordered 40 new Boeing jets and be first to fly new 7E7 Dreamliner. Order value is $38 billion...As of Nov. defense titans gained on aerospace upswing. Profits rose for Honeywell, United Technologies and General Dynamics with combined net income for 3rd quarter of $1.4 billion....Northrop Grumman has $207.7 million order from AF to produce four Global Hawk unmanned spy planes... GE lost bid for All Nippon Airways purchase of jet engines for 50 Boeing’s new 7E7 which went to Rolls Royce PLC for its Rolls Trent 1000 engine....Space visionaries are aiming high with a space elevator to carry supplies into orbit, a 62,000 mile ribbon stretched from an anchor on Earth to a weight orbiting in space...It would cost billions. Solar-powered cars climb the ribbon, carting parts for space stations, hotels and space colonies...The U.S. & Europe have sued each other at WTO over aircraft subsidies. Boeing says European governments have given $15 billion in aid to France-based Airbus but European Union says Boeing has received $23 billion in government subsidies since 1992.... Airlines are installing broadband in-flight online systems connections such as Boeing’s in-flight  and e-mail and Web-surfing systems called Connexion..Northrop & Boeing are teaming to compete for NASA’s planned manned and robotic space-exploration program called “Project Constellation.”... The Pentagon envisions a costly internet for wars,an “internet in the sky” aims to link satellites, aircraft  weapons and thousands of new ground terminals for soldiers, giving every fighter a God’s Eye View Of Battle..A war-net’s hardware could cost up to $200 billion, including software, in next decade or so....Microsoft and Dell share $500 million contract for software and services to improve security for the Air Force Six-year agreement includes 525,000 decktop windows software licenses. Dell will provide desktop computers. 

 Supercomputing Race Is On

Top three supercomputers include Lawrence Livermore Lab Blue Gene/L by IBM, peak speed of 70.72 teraflops, 360 at completion, the Columbia supercomputer, NASA/Ames with 51.87 teraflops, and Earth Simulator by NEC in Japan with 35.86 teraflops speed that has 5,120 SX 6 processors.. U.S. firms made 90% of supercomputers on the top 500 list. Hewlett-Packard, IBM led all others with 34.6% and 43.2%. Others equal 11% including Linux Network, NEC, DEC and SGI.. The three types are Commodity that links processors into powerful network; High Capability, linking specialized processors, and Hybrid that uses off-shelf processors linked by custom connectors.

Nanotechnology’s Commercial Uses Begin

Nanotechnology, measured in billionths of a meter, still mainly domain of researchers has great potential. A bicycle maker, Easton Sports is using Zyvex of Richardson, TX. Nanotech Co., carbon nanotube, superstrong tubes of carbon atoms one billion of a meter in diameter, in a composite material for bike frames and parts.

Digital Camera to Print—No Computer Used

Pictures designed for 4x6 photos don’t require a computer. They print directly from digital camera. There are now several printers available from Canon, Olympus, Sony, Epson and Hewlett-Packard. If camera is PictBridge-compatible you connect it directly to PictBrige printer using standard USB cable..Also, for memory card slots, include right on printer.Pop card out of camera, slide into printer and boom, you’re a walking Fotomat. These decktop darkrooms range $135 to $215.

Buy & Sell & Merge

Mattson Technology, Fremont,CA., acquired Vortek Industries Ltd., Vancouver..Yahoo acquires e-mail startup Stata Labs..Fener Musical Instruments, Scottsdale,AZ. buys Tacoma, WA’s Tacoma Guitar....Backup software developer Dantz Development, Walnut Creek,CA. sold  to Massachusetts-based EMC which bought Pleasanton,CA.’s Documentium last year.. Quantum,San Jose disk drive-maker, bought Certance,Costa Mesa,CA.... Invision sale to GEW was delayed until Dec. 27.

Industry News [Return to top]

Significant Improvement Seen 
For Durable Goods Manufacturing in 2005

U.S. durable goods manufacturers are expected to invest over $14.5 billion in capital equipment in 2005, according to the 2005 Gardner Research Capital Spending Survey. The annual survey, now in its 37th year, is widely recognized as the metalworking industry’s most comprehensive and accurate study of equipment spending intentions in the U.S.

Results from the 2005 survey indicate an improvement in machine tool consumption on the order of 30%.  

“After a modest 15% projected improvement in 2004, machine tool consumption is forecasted to jump 30% in 2005. While this is a large percentage increase, in dollar terms it is simply getting us back to a more reasonable level of consumption, about to where we were in 2001,” says Steve Kline, executive vp of Gardner Publications.

“The next year (2005) will be a year of consolidation for capital equipment manufacturers,” reports Kline. Machine Tool consumption in the US is expected to reach $5.3 billion, up from a projected $4.1 billion in 2004. Industries that are expected to lead the way are: automotive, aerospace, medical equipment, defense , power generation, and energy production.

The Gardner Research survey was distributed to 10,000 durable goods manufacturing plants (standard industrial codes 34-38) in the U.S.  

Over 1,400 manufacturing professionals responded, describing in detail their capital equipment spending intentions for 2005. Capital equipment manufacturers use the data by the annual survey to stay on top of metalworking and manufacturing trends and target their future customers.

Fadal Machining Centers Open House:
New Blue Series Demonstration

 Fadal Machining Centers announced an Open House featuring demonstrations of ThyssenKrupp MetalCutting (TKMC) BLUE Series machining centers, including the Bluecut 4, Bluestar 5  and Blueturn 250.  The Open House is scheduled for 10:00 AM to 3:00 PM, Tuesday and Wednesday, January 18-19, 2005 at Fadal Machining Centers, 20701 Plummer Street, Chatsworth, California  91311.

The Fadal Bluecut 4 high-performance HMC was designed to be the first step into higher levels of production for job shops. The twin pallet has rigid boxway construction, ± 5 arc-second accuracy, and ±1 arc-second repeatability, standard simultaneous 4th axis machining, a wide range of cutting power and 24/7 duty cycle.   

The Giddings & Lewis Bluestar 5 HMC features rapid traverse rates of 50m/min and acceleration of 0.7g.  The 180º pallet changer exchanges pallets with a maximum load of 500kg in just 7-seconds.  10,000-rpm and 15,000-rpm spindle options are available.  A 40-position disk-tool magazine accommodates # 40 ANSI B5.50, BT40, SK40 or HSK63 tool tapers with 4-second chip-to-chip tool change time. An optional cassette-style tool magazine with 130-tool pockets features chip-to-chip time of 3-seconds.  

The Hessapp BLUETURN 250 is a self-loading, inverted spindle Vertical Turning Center.  It features a turn/swing diameter of 250/320mm.

Newall Electronics Acquired by BEI Technologies Inc.

Digital readout and linear encoder specialist Newall Electronics has been acquired by the California based BEI Technologies Inc.

The acquisition, announced on the NASDAQ market on October 12, 2004  sees Newall joining a successful group of intelligent sensor and motion control brands, which are already part of the BEI Technologies group.

Derek Rimmer, Newall’s managing director, is delighted with the outcome of negotiations. “The two organizations have a number of complementary technologies,” he explained, from Newall’s headquarters and manufacturing center in Leicester, UK. “I am confident that BEI Technologies’ existing involvement in the automation, aerospace and automotive sectors will provide opportunities for us to extend the markets for our unique technologies.”

Newall has enjoyed significant sucess recently, particularly in the machine tool market, following the development of its digital linear encoder range. Manufacturing will remain in the UK and the company’s slaes and service operations will continue to operate in thier established regions.

Northtech Workholding Promotes Two

NorthTech Workholding has recently announced the creation of two new key positions within their organization. This growth is in keeping with their long-term strategy to become the leading provider of standard as well as custom workholding solutions.

“We’re confident that these organizational changes will significantly strengthen our team,” stated Spencer Hastert, president, NorthTech Workholding, Inc.

After serving as Engineering Manager at NorthTech for seven years, Tim Winard has been appointed Vice President of Engineering & Operations. In this new role, Winard’s responsibilities will include overseeing NorthTech’s engineering and operations teams as well as setting the strategic course for the company’s custom Workholding design, engineering, production, consulting and services offerings. He has been employed with NorthTech for 10 years. 

Shawn Luschei has been appointed National Sales & Marketing Manager for NorthTech. Also a 10-year veteran of NorthTech, Luschei most recently served as the company’s Automotive Products Manager. From his new post, Luschei will oversee a focused, value-added sales plan. Targeting markets such as automotive, defense and medical devices markets. “NorthTech Workholding has become not only a supplier of world-class Workholding products, but a sustaining value-added resource for our customers,” explained Luschei.

Sodick Has Successful California Open House

On November 9 and 10, 2004 Sodick Inc. held their second annual Technology Show at their Brea, California technical. center. The show gave Southern Californian EDM users the chance to see Sodick’s latest technology that debuted at IMTS2004.

One Sodick user stated, “Trade shows give us a chance to see many machine tool manufacturers but Sodick’s Technology Show is a more intimate, relaxed setting where users can see the latest technology and learn more about their products.”

Sodick displayed their new affordable AQ300L wire EDM high-speed machining center and electron beam polishing machine.

 

 

 

 

 

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