December 2005 •  January 2006 • Vol. XXIV No. 2 • An Arnold Publication

Industry  News • Executive Hotline

Executive Hotline

Adding Horsepower To The Google Engine

Google’s search engine now pours over an astounding 8 billion Web pages for each search. Google’s director of search quality and research, Peter Norvig, is focused on what it still misses. His team of 140 scientists and engineers add more depth, speed and relevance to the world’s best search engine.

 E-mails, out-of-print books, blogs, research paper might contain useful links. Search engines nevertheless access only 25% of all online data; the rest is out of reach. Norvig’s mission is to enable Google to scan the contents of public libraries, build-in translators for foreign-language links and store and index e-mails cheaply.

 Verisign Faces Revolt Over .Com Fees

VeriSign Inc. faces significant opposition from its channel of domain name registrars over a proposed deal with the Internet Corp for Assigned Names and Numbers that would allow the company to significantly raise the price of a .com registration. No official reaction in yet, but watch this trend.

Managing The Next-Generation It Infrastructure

Data centers, networks, databases and software tools that support your company must consolidate, standardize and streamline to deliver cost efficiency. “The most effective IT cost-cutting program eventually hits a wall: the complexity of the infrastructure itself,” reports Forbes.

 Today’s infrastructures may seem high-tech but actually resemble an old-fashioned automobile: “handmade by an expert craftsperson and customized to the specifications of an individual customer.” An application developer typically specifies the exact server configuration for each application, and the infrastructure group fulfills that request. The result: thousands of application silos, each with its own custom-configured hardware, and a jumble of often-incompatible assets.

 Now technological advances allow companies to shed this build-to-order approach in favor of one that’s off the shelf. Under the new model, satisfying IT requirements is more akin to shopping by catalog. A developer who needs a storage product, for instance, chooses from a portfolio of options, each described by service level (such as speed, capacity or availability) and priced according to the infrastructure assets consumed (say, $7 a month for a gigabyte of managed storage). The system’s transparency helps business users understand how demand drives the consumption and cost of resources. By reducing complexity, eliminating redundant activity and boosting the utilization of assets, companies can make their infrastructure 20% to 30% more productive.

International News

Beijing — Manufacturing activity in China expanded at an unchanged pace in November, according to a survey of purchasing managers. The Purchasing Managers’ Index stood at 54.1 last month, unchanged from October, the China Federation of Logistics & Purchasing and the National Bureau of Statistics, who jointly publish the index, said in a statement. The reading compares with 55.1 in September and is the third-highest since the index started in April

Britain's industrial sector suffered a further setback in November, with the pace of growth slowing despite strong output and robust export orders, per the most recent UK survey. The CIPS Purchasing Managers’ Index (PMI) for manufacturing fell to 51 last month from 51.6 in October, confounding expectations of a rise. Any figure above 50 indicates growth, and the data suggested that activity in the sector is rising but at a slower pace. The survey showed a rise in the export orders index to 53.8, its highest level since May 2004, as Germany and France experienced a recovery and the pound weakened.

Aerospace Sector

Cathay Pacific Airways Places Record Aircraft Order 

Cathay Pacific Airways just placed its biggest ever order for new aircraft to grow the airline, expanding its fleet to strengthen Hong Kong as a global aviation hub. 

 The airline has made commitments for 16 advanced wide-body Boeing 777-300ER aircraft to be delivered between September 2007 and July 2010; with purchase rights for 20 more. It also made commitments to acquire three Airbus A330-300s to operate regional routes. 

 Cathay Pacific Chief Executive Philip Chen said: “These aircraft orders mark an exciting and significant milestone in the development of our airline – demonstrating our Board’s confidence in the long-term future of the airline and Hong Kong. The addition of these new aircraft to the 100 we will have by next year will make us a carrier of significant size.” 

Defense News

Air Assault Expecitionary Force Testing New Technologies  

The Air Assault Expeditionary Force is testing more than 40 new technologies at Fort Benning, Ga., including the tough-bot, a two-wheel, remote-control vehicle with mounted cameras that send pictures to wrist-screens. The new tool is small enough to maneuver around boxes, trash, objects and just about anything that might be an IED.

 “I like the fact that it can save lives,” said Spc. Michael Schakey, Company A, 1st Battalion, 29th Infantry Regiment, and a veteran of Operation Iraqi Freedom I with 101st Airborne Division. “It has a multitude of uses, and we find new applications for it every day.” 

 The tough-bot is similar to a remote-control car with the added feature of being able to transmit images to a small display screen the soldier straps to his wrist. The soldier controls the tough-bot the same way he would a remote-control car. Only the tough-bot has two cameras on it, so he can see what it sees. 

Computers And Electronics Black Friday Surge In PC Sales

Computer manufacturers are relieved that Americans bought a load of laptops during the holiday shopping opening last week.

Sales of personal computers in U.S. retail outlets during Thanksgiving week increased 35 percent over the same week the year before. Overall revenue increased by 11 percent, better than expected, according to research firm Current Analysis. In 2004, computer sales increased by only 7 percent while revenue decreased by 3 percent. Turkey week is a crucial period for retailers and electronics manufacturers as a significant bulk of the holiday sales occur then. The most active day remains Black Friday, the day after Thanksgiving.

Although sales of PCs and electronics have been strong this year, part of the growth has been fueled by price cuts. The worry, among some analysts and executives earlier in the year, was that price cutting could eliminate the benefits of increased unit sales. While price cuts clearly did reduce some of the potential gain, the increase in revenue will likely buoy the outlook for some.

“This shows that the (computer electronics) industry has got some legs,” said Matt Sargent, an analyst at Current Analysis, who added that the results were higher than expected.

Nokia Predicts 10% Rise In Mobile Device Sales For 2006

Nokia Corp has forecast that sales of mobile devices in 2006 will grow more than 10% from the 780 million units it now estimates for 2005, and despite falling handset prices, it said the market will also grow in value. Only two months ago the industry leader was forecasting device sales of 760 million this year and its new estimates represent a 21% increase over industry sales in 2004.

Clean Enough For Automakers?

A number of secondary processes, including cleaning, are required before assembly. Improper part cleaning can adversely affect downstream processes such as heat treating and plating, confirms MMS online. According to Garth Weston, technical director for Proceco Ltd. (Quebec, Canada) it depends largely on the application. Clearances between mating parts or the size of an orifice that a fluid must flow through are two examples. Automakers generally require that, after final part cleaning, critical components must not release particles larger than 250 microns, or a collection of particles weighing more than 1 milligram.

Marubeni Citizen-Cincom Acquires Brookdale Associates

Marubeni Citizen-Cincom  announces the acquisition of Brookdale Associates.  This acquisition will be a joint venture with Citizen Machinery Co. Ltd and Marubeni Corporation. 

Brookdale Associates has been a leading distributor for Marubeni Citizen-Cincom (MCC) for more than 20 years.  With the cooperation of the MCC Tech Center, they have developed many tooling accessories, including the Cool Blaster high pressure pumps, which have made Cincom products more productive. The synergy between the two companies will bring value added engineering capabilities to MCC distributors and customers throughout North America. 

The new company will be called Citizen Machinery America Inc (CMA).  Jim Sasanecki of Brookdale is expected to stay on as V.P. of Engineering. Mr. Hiroshi Shinohara of Citizen Machinery Co. Ltd will be President, and John Antignani of MCC will be Executive Vice President.

Ellison Manufacturing Technologies and Carl Zeiss IMT Partnership

 Ellison Technologies Corporation creates and markets a wide-range of capital equipment, products and solutions. The company announced recently the partnership between Ellison Manufacturing Technologies and Carl Zeiss IMT Corporation in their ongoing dedication to high quality products and services for customers.

“Zeiss is recognized as the leader in CMM technology,” stated Graham Hooper, President of Ellison Manufacturing Technologies.  “We are featuring a complete lineup of ZEISS inspection equipment such as the CONTURA® measuring machine.  Zeiss products enable us to help our customers’ compete-to-win in today’s competitive global market place”.

Carl Zeiss IMT Corporation designs and manufactures industrial metrology equipment including coordinate measuring machines, horizontal-arm, form-roundness and surface measurement instruments and, non-contact form metrology instruments. Carl Zeiss also offers retrofit and upgrade packages for customers looking to improve efficiency and capability of existing equipment.

The company welcomes Roman Chruszcz, Product Manager for Metrology Solutions who brings more than 20 years metrology experience to the Ellison group.  

View Engineering Extends its Range with Acquisition of Micro-Metric

View Engineering, Inc. announced recently  that it has acquired the assets of privately held Micro-Metric, Inc. of San Jose, CA.  

Founded in 1979, Micro-Metric is a producer of high-magnification, non-contact critical dimension and coordinate nanometrology systems used in the semiconductor, data storage and MEMs industries. 

View Engineering provides high-accuracy, large-area video and laser-based coordinate measuring systems used for process monitoring and control in the data storage, microelectronics, printed circuit and precision machining industries. 

The combination of the two companies strengthens View’s capabilities in its core markets of electronic assembly and data storage, and will extend the company’s offerings into nanometrology (measurements of less than 0.1 mm).

No changes in management or staffing of either company are planned.  Micro-Metric will continue to operate from its headquarters in San Jose. 

 HR Machinery Announces New CMM Calibration Service

HR Machinery based in northern California announced  the start of a new service capability. Known primarily for the sales and service of horizontal and vertical machine tools, HR Machinery, a division of CMM manufacturer Mitutoyo, now offers the calibration and installation of Coordinate Measurement Machines.   

Recently, service personnel underwent extensive CNC CMM training at Mitutoyo’s Aurora, CO. headquarters. Coupled with the first phase earlier in the year on manual equipment, HR is now positioned to calibrate and repair MTI machines throughout the West Coast.

“Having the factory training and authorized software puts HR in the unique position to properly calibrate the MTI machines in the field – No other service has that software.  HR will use the factory supplied compensation software, giving the end user true confidence in the ability to measure accurately” said Dennis McGuire, who is heading up the new division at HR Machinery.

 AMTDA Names New President

James C. Addy, CMTSE, chairman of the board for the American Machine Tool Distributors’ Association (AMTDA) and president of Addy Machinery Company in Detroit, MI,  announced that John J. Healy, CAE  will  be AMTDA’s new president. Healy  joined the AMTDA team on  November 14, 2005. Healy succeeds Ralph Nappi who, after 19 years of service to AMTDA has moved on to become president of another association.

“It is significant to note that John was the unanimous choice of AMTDA’s Search Committee, based on an intensive four-month recruitment process.” Addy says. “John’s association and industry experience, coupled with his proven track record will allow him to hit the ground running. I look forward to working with him to finalize AMTDA’s 2006-2010 Strategic Plan and improving the value of AMTDA membership for all our members. I know he’s going to deliver the results that we both want and need for our industry and will help AMTDA successfully take on the challenges of the future.”

 Hardinge Announces the Appointment of a New CFO

 Hardinge Inc, a leading producer of advanced material-cutting solutions, recently announced the appointment of Charles R. Trego, Jr. as its Senior Vice President/Chief Financial Officer effective October 31, 2005. Mr. Trego has more than 25 years of experience in the finance area.

Prior to joining Hardinge, Mr. Trego served as Chief Financial Officer for 14 years (1989 – 2003) with Rich Products Corporation, a multinational food products manufacturer and marketer. From 2003 until 2005, Mr. Trego worked at Latham International, a manufacturing firm, serving as its Chief Financial Officer.

 Turn Old Blueprints into 2D or 3D

 Advanced Measurement Labs.,  has introduced a unique and  valuable service for the  manufacturing industry.  All older blue prints are converted to a 2D or  3D electronic media, This is done in a fast turnaround time.  This service is extremely beneficial  for  businesses trying to organize  archiving and the ability to use future technology.

 Strong Showing at Sodick’s 3rd Annual Technology Show

Sodick’s 3rd annual Technology Show was held at their Brea, CA technical center. The two day event was held on October 18 and 19 and the turnout was excellent. The event typically attracts shops from the Southern California area but this year attendees also came from Northern California, Texas and Utah. Attendees got hands on knowledge of Sodick’s wire, sinker, small hole EDMs and high speed machining centers.

“We had an extremely strong attendance at this technology show which is reflective of an improving economy. Our technology show is a more intimate and relaxed setting where customers can learn more about our products,” says Sodick’s Regional Sales Manager Peter Barak.

MTA Relocates

MTA International announces that it has completed the relocation of their main corporate offices and warehouse facilities.

The new facility, at 11675 Chesterdale Road, Cincinnati, OH, expands the main storage and shipping warehouse to over 12,000 sq. ft., and adds valuable office space.

This expansion is in addition to the establishment in 2004, of MTA Internationals warehouse capabilities on the west coast in the Los Angeles metro area.

This growth is the direct reflection of over 16 years of increased machine tool accessory sales, primarily in the sales of 4’, 6’ and 12’ magazine bar feeders in both the fixed headstock and Swiss turn manufacturing areas.

Brinkman International Group Announces Ed Kelly as New VP of Sales

Brinkman International Group  announces the addition of Ed Kelly as the new Vice President of Sales.  Mr. Kelly will be located at  Davenport offices in Rochester, New York and will be intimately involved in the sales of Davenport Machine and C.J. Winter products, as well as other Brinkman International Group companies.

 Ed Kelly comes to Brinkman International Group with eighteen years of sales and marketing experience from various manufacturing companies, with his most recent position being the Northeast Director of Sales for the Industrial Division of Pactiv Corporation, a multi-billion dollar packaging-products company.

 Mr. Kelly’s primary purpose will be to create a company-wide culture of sales and customer service excellence.

 Delcam Increases Support for North American Machine Tool Suppliers

Delcam,  a leading specialist supplier of CAM software, has increased the support it can provide to North American machine tool suppliers with the appointment of Brett Hopkins as Machining Technology Specialist for North America.  Brett will also work with Delcam’s North American sales team on improving general market awareness of the company and its PowerMILL CAM software in the USA and Canada.

Brett’s main objective will be to work closely with machine tool suppliers to develop a range of demonstrations that highlight the strengths of both the particular piece of equipment and Delcam’s software.  These demonstrations will cover examples from Delcam’s traditional toolmaking applications and from the company’s newer target markets in the aerospace, autosport and composites industries.

He will also ensure that Delcam’s post-processors keep up-to-date with developments in machine tool controls and option files.  The aim will be to ensure that a new post is available as soon as any new machine hits the market and so ensure that it will be productive from the moment it is installed by the customer.

 Brett has spent more than six years using Delcam products on the most demanding jobs, specializing in high-performance machining applications.  His most recent position was Machining Center Applications Team Leader for Makino Die/Mold Technologies.  In this role, he was responsible for leading all activities of the machining center applications staff for North and South America. 

Salvagnini  America Names New President of North American Operation

Bill Bossard, Vice President Marketing & Sales of Salvagnini America, has been named President of the company’s North American unit, announced CEO Eugenio Bassan. In addition to continuing in his role as chief marketing officer, Bossard will perform a variety of executive duties.

Mr. Bossard joined Salvagnini in 2002, and during his tenure has overseen a rapid growth in sales and an expansion of the company’s national network of regional sales managers and sales representatives. Formerly sales director of Pankl Aerospace Systems, Cerritos, CA, Bossard has more than 22 years of regional, national and worldwide sales management experience and 32 years of experience in manufacturing, metals, and machine tools.

Exact JobBOSS Receives MPMA President’s Award

Exact JobBOSS, creators of an industry leading shop floor manufacturing software – JobBOSS; was presented with the  Minnesota Precision Manufacturing Association (MPMA) President’s Award.

The 2005 Annual MPMA Member Meeting was held October 26, 2005.  Exact JobBOSS is a 20 year sponsor of the MPMA and received the President’s Award for its effort to spark excitement in high-school and college students by sponsoring the Exact JobBOSS ThunderDome Arena

The Midwest Robotics League (MRL) is a robot combat league formed to encourage students to use their math, science and technology skills to compete against other students.

BattleBots IQ is an educational program comprising of: A Robotics Curriculum based on the National Curriculum Standards and Massachusetts Institute of Technology’s (MIT) mechanical engineering methodology; Teacher Training; and a National Competition where students showcase their custom built robots, and compete for top honors.

Surfware’s TrueMill Technology Receives 2005 Technology of the Year Award

 Surfware, Inc. announced  that its patent-pending TrueMill technology was selected as one of the five Technologies of the Year for 2005 from IndustryWeek.

Since 1993, IndustryWeek’s Technology and Innovation Awards Program celebrates the primary drivers of the world’s economic progress — innovators and technologies. The awards are given in the spirit of Josef Schumpeter, the distinguished Harvard economist and social theorist who posited more than 50 years ago that the mission of both organizations and societies should be to accelerate the pace of innovation.

TrueMill, a new tool path engine is only available in SurfCam Velocity.

KMT Waterjet Systems Announce Distribution Agreement

KMT Waterjet Systems and Robotic Production Technology (RPT) announced recently an official agreement making RPT an authorized distributor and integrator of KMT pumps for high-pressure robotic cutting systems in North America.

“We’re very proud to have a formal distribution agreement with KMT,” said Robotic Production Technology President Kevin McManus. “The KMT product is widely recognized around the world as a leading high-pressure intensifier pump. Many of our existing customers already use KMT products, and those that have recently switched from the leading competitor are pleased and have no plans of switching back.”

KMT, formerly Ingersoll Rand, is a leading manufacturer of ultra-high pressure waterjet and abrasive waterjet pumps used in high-volume automotive and other similar applications. The pumps create up to 60,000psi and cut virtually any material from steel and titanium to glass and produce.

Under the agreement, RPT will sell KMT high-pressure pumps both individually and integrated into its many waterjet system solutions. RPT is also authorized to service the products and supply KMT spare parts.

2005 Machine Tool Consumption Up 10.2 Percent

September U.S. Machine Tool Consumption (USMTC) participants accounted for 1,855 orders for machine tools with a value of $295 million. Metal forming orders accounted for 80 machines with a value of $24 million.

The USMTC report is a joint program of AMTDA and AMT.

Henning in New Headquarters-Celebrates 15th Anniversary

Henning Software of Hudson, Ohio (southeast of Cleveland) officially dedicated its new corporate offices on Monday, October 17, 2005.  The new headquarters includes a “state-of -the-art” training center for new and current users of Henning software. “This dedication also coincides with our company’s 15th anniversary,” adds company vice president, Billie Henning.  Hudson Mayor Bill Currin presided at the ribbon cutting ceremony on October 17, 2005.