October •  November 2005 • Vol. XXIV No. 1 • An Arnold Publication

Industry  News • Executive Hotline

Executive Hotline

Aerospace Sector

Strike settled: New Business at Boeing — The machinists union voted 80% in favor of accepting Boeing’s package of benefits at the close of September. There is new work to do too: the U.S. Army and Boeing (NYSE:BA) signed a $192.5 million contract for 13 new AH-64D Apache Longbow multi-role combat helicopters a week earlier, on Friday, September 23. The new Apache Longbow aircraft, to be built in the current Block II configuration, are in addition to AH-64A Apaches being remanufactured under a multi-year contract with the Army. Production will begin in early 2006 and will be performed at the Boeing facility in Mesa, Ariz., where Apaches have been manufactured since the program started.

Additionally — Boeing and Avion Group signed final agreements for the purchase of four Boeing 777 Freighters at the Cargo Facts Symposium. The new cargo planes will be operated by Avion Group’s subsidiary, wet-lease operator Air Atlanta Icelandic. That Group and Boeing are in serious negotiations to convert three Air Atlanta Icelandic 747-400 passenger airplanes into 747-400 BCF (Boeing Converted Freighter) models.

The combined value of the four 777 Freighters and the three 747-400 BCFs at Boeing list prices is approximately $1 billion.  

Boeing Company also detailed its 2005 Current Market Outlook (CMO) for the People’s Republic of China, forecasting a requirement in China for just over 2,600 new airplanes worth $213 billion over the next 20 years. Over the forecast period, China is and will remain the largest market outside the United States for new commercial airplanes. With the continued high rate of growth for the China air travel and air cargo markets, China’s fleet will nearly quadruple to more than 3,200 airplanes by the end of the forecast period.

Boeing and Spirit AeroSystems celebrated the public unveiling of the first all-composite demonstration nose section for the 787 Dreamliner recently at Spirit’s Wichita facility, formerly a part of The Boeing Company.

U.S. increases order for combat-tested Javelin — On the heels of a $119 million contract from the U.S. Army in May, the Raytheon-Lockheed Martin Javelin Joint Venture (JV) received a $110 million modification to a firm-fixed-price contract for Javelin Anti-tank Weapon System production on October 4, 2005.

The contract is for an additional 901 command launch units and 101 trainer systems.  Work will be performed in Orlando, Fla., and Tucson, Ariz., and will be completed by September 2008.  Javelin is currently in full-rate production.

“In operations Enduring Freedom and Iraqi Freedom, Javelin has been used successfully for surveillance, as an assault weapon, against buildings, against vehicles (including armor and pick-up trucks) and against fighting positions,” said Col. Lloyd McDaniels, U.S. Army Close Combat Weapon Systems project manager.

The Javelin JV is also working on a number of technology spirals in support of future requirements.

Raytheon to Increase Army Sensor Commonality via $180 Million Upgrade of 872 Vehicles  — As 572 new Abrams and Bradley fighting vehicles, 300 LRAS3 (Long Range Advanced Scout Surveillance Systems) and other Army ground platforms roll out, all will be equipped with upgraded “night vision” sights produced by Raytheon Company.    

Using $180 million in follow-on funds, the company will give the Army’s M1A1 vehicle fleet a new generation of sensors under a one-year contract that was driven by “lessons learned” during the Middle East conflict.

Katrina/Rita’s Economic Effects – High Volatility

Nobody really knows the long term effect the hurricanes will have on nation’s economic prospects.  The Institute for Supply Management released its manufacturing index, a measure of the nation’s industrial activity, which is expected to come in at 52, down from 53.6 in August.   

Buy, Sell & Merge

HP to Acquire RLX Technologies - HP will bolster with Linux management of HP BladSystem Portfolio by signing a definitive agreement to acquire RLX Technologies™, Inc., a pioneer of server blade management technologies.

 Computers and Electronics

 Moore’s Law — Gordon E. Moore, then the R & D director of Fairchild Semiconductor, which he co-founded, foresaw in 1965 that silicon chips were going to plummet in price. He even tried to approximate the rate, projecting a drop of 50% a year for the next 10 years. “I never had any idea it was going to be at all precise,” he said last week of his prediction. Yet it was accurate enough to have since gained the stature of holy writ: Moore’s Law, one of the most oft-quoted insights in science and industry. Stripped of its technical details, it amounts to an expression of faith in the march of technology — the inexorable trend in electronics toward the smaller, the cheaper, the more powerful.

“Moore’s Law is an example of a tangible belief in the future — that the future isn’t just a rosy glow,” says Carver Mead, Caltech’s emeritus Betty and Gordon Moore Professor of Engineering and Applied Science, who joined Moore in a public discussion celebrating the law’s 40th anniversary last week.

 Over four decades, technological progress has been so closely tied to Moore’s Law that Silicon Valley gurus constantly worry about when the price/miniaturization trend will run out. Several times in the last 40 years, insurmountable physical barriers appeared to be looming. Each time, however, a sharp turn in technology gave Moore’s Law another couple of decades of life. “It still amazes me how far we’ve been able to go,” Moore says.

“One of these days we’re going to have to stop making things smaller,” Moore says. But he’s wary of predicting developments too far into the future, mindful that even his brash forecast in 1965 turned out to be conservative. “As engineers,” he observes, “we’re always way too optimistic in the short run. But in the long run, things will always evolve much further than we can see.”

Hewlett Packard Growth Outperforms Competition — HP outgrew the total disk storage market by 4 percentage points in the second quarter of 2005, according to market data released today by IDC. HP’s worldwide total disk storage systems factory revenue increased by 13.9 percent year-over-year for the quarter.

Mobile Broadband Boundaries Expand —   HP and Verizon Wireless announced plans to bring mobile broadband connectivity to upcoming HP mobile business devices, offering users high-speed wireless data access that extends beyond the reach of today’s current patchwork of Wi-Fi hot spots. As part of the collaboration, the companies will jointly market HP business notebooks and other mobile devices that take advantage of Verizon Wireless’ EV-DO (Evolution-Data Optimized) network, the nation’s largest high-speed wireless broadband network with data download speeds of 400 kbps to 700 kbps.  With the technology, HP customers will be able to enjoy secure broadband-comparable wireless access to email, the Internet and critical business data when away from the office and home. No longer confined by Wi-Fi hotspot locations, users can work where they want to, even staying connected in a taxi cab.

HP expects to make this mobile broadband technology available to customers through a PC Card solution this fall. The company is also shipping a new line of microdisplay, plasma and LCD TVs as well as its high-definition Digital Entertainment Centers in time for holiday shopping. The advanced digital media technology will enable HP HDTVs to communicate with all PC devices on a home network, including HP Digital Entertainment Centers.

Chips Ahoy 

   Proprietary Process Drives Design Innovation for Medical, Industrial and Automotive Applications — A proprietary BiCMOS analog process technology from National Semiconductor Corporation dramatically improves the performance of the company’s next-generation precision and low-power, low-voltage operational amplifiers. This process sets new amplifier industry standards for lower power consumption and noise levels in portable handheld devices and medical, industrial and automotive applications.

IBM extended its server family with the introduction of a complete line of new entry servers including the new IBM xSeries 100 server.

The x100, the newest member of IBM’s expanding Express Portfolio for small-medium businesses (SMB), is an affordable server entry point available from a top-tier server vendor. Paramount Home Entertainment is the latest company to back the Blu-ray Disc format as the next generation DVD standard, joining a growing list of media and technology companies endorsing Blu-ray.

Mazak and Gibbs Enter Strategic Collaboration

 Gibbs and Associates, developer of GibbsCam®, CAM software for programming CNC machine tools, and Mazak-USA (Florence, Kentucky) announced that they have entered into a strategic collaborative partnership agreement, to optimize support for Mazak’s multi-task CNC machine tools, such as the Integrex, Integrex E-Series, Multiplex, Quick Turn Nexus, and Super Quick Turn (SQT) model.  The companies have entered into a non-disclosure agreement which will allow them to exchange information about and collaborate on next generation solutions.

“We are extremely pleased to be partnering with Mazak to support their line of multi-task machine tools,” stated Robb Weinstein, Gibbs and Associates’ Senior Vice-President of Sales and Strategic Planning. “Multi-task machine tools represent one of the fastest growing segments of machine tools and Mazak is the leading provider worldwide.  As a matter of fact, Mazak customers already make up a significant percentage of GibbsCam MTM users.  Working with Mazak, GibbsCam will provide a powerful NC programming solution able to support the wide variety of capabilities and configurations Mazak offers. With GibbsCam, Mazak users will have the capability, flexibility, and ease of use needed to optimize the productivity of their Mazak machine tools.” 

Setco Now Authorized Service Provider for  Franz Kessler Spindles

Setco, a prominent  manufacturer  and rebuilder of precision spindles and slides in North America, and Franz Kessler, a large European precision spindle manufacturer, have signed an agreement authorizing Setco to be the service provider for all Franz Kessler spindles in North America. Under the terms of the agreement, Setco will handle all spindle repairs and spindle warranty service in North America.

”The Franz Kessler service agreement is a win-win-win; for the customers, Kessler and Setco,” says Robert Kufner, director of operations and service for Setco. “Kessler knows that when a spindle goes down, customers need local service that can deliver quick turnaround to get their machine back on line, and that’s what makes this partnership so strong,” Kufner added. “In this business, experience and know-how make the difference. Setco has manufactured standard and custom spindles for over 90 years, and we have the technical expertise to repair and rebuild spindles to better-than-new performance.”

Kennametal Partners With Novator

Kennametal Inc., a global leader in tooling, engineered components, and advanced materials, is partnering with Novator AB (Spanga, Sweden), a leading orbital drilling machine supplier, to marry Novator’s drilling equipment and expertise in orbital drilling with proprietary, high-performance tools from Kennametal that has the potential to cut in half the costs and time it takes to assemble a commercial aircraft.

Current practice in aircraft/aerospace assembly calls for drilling numerous holes in alloys or composite materials.   Because traditional push-drilling involves driving the point of the drill through either aluminum or a stack of laminated materials, burrs or delamination can be created both in the exit holes and within the laminate stacks. As a result, aircraft manufacturers often assemble parts, drill holes, disassemble parts, clean and deburr the holes, then re-assemble them prior to final fastening. Also, hole size is determined by a specific tool size, so many tools are required, and there are a limited number of times such a tool can be reground for precision use.

Novator’s patented orbital drilling technology combines the spinning of the drill on its own axis with a mechanical spindle that rotates eccentrically around a principal axis. These dual high-speed rotations have the effect of feeding the tool through the material rather than pushing it.   The tool’s cutting edge is only partially and intermittently engaged with the material surface, so heat buildup is minimal. Orbital motion also allows the tool diameter to be smaller than the hole, which makes for efficient chip and heat extraction.

30 Year Anniversary for Chmer EDM

Chmer EDM announced their 30th year anniversary.  Chmer EDM will hold a celebration on November 4, 2005 to celebrate 30 years manufacturing EDMs. They have grown from a small family EDM manufacturing company to the largest EDM builder in Taiwan.  With their five manufacturing plants and more than 500 people, they now produce more than 1,500 EDMs annually.

Chmer offers a complete EDM product mix with more than 45 different models of EDMs—Wire EDMS, manual, ZNC and CNC Sinker EDMs, plus manual and CNC small hole EDM drillers.

 GE Fanuc Automation Names AIC Authorized Distributor in Nevada

GE Fanuc Automation has named AIC as its authorized local distributor for the state of Nevada. AIC has been serving the state for more than 27 years, and now as an authorized distributor, is providing significantly enhanced localized services and support, including inventory, training, sales representation, and in-depth technical assistant.

AIC has a qualified staff of control system specialists, including mechanical, computer, and electrical engineers.

“We are uniquely capable of working with our customers to develop control systems from concept, through to commissioning. Our partnership with GE Fanuc Automation strengthens our current abilities and reaffirms our commitment to our customers of supply and supporting the highest quality automation products,” explains Eric Juillerat, president of AIC.

As an authorized distributor for GE Fanuc’s complete line of industrial automation solutions, AIC offers training and product demonstrations at its facilities in Reno and Las Vegas, which are staffed by both sales and technical specialists. Customers in Nevada will also benefit from decreased product delivery times, as hardware and software will now be stocked AIC.

 FMB Machinery  Joins  With Hydromat Inc. For Expanded National Sales And Service

FMB Machinery USA, a full-line manufacturer and global leader in bar feeder technology announces that Hydromat, Inc.’s Bar Feeding Group will be a North American distributor of its magazine bar feeders and robotics line beginning Jan. 1, 2006. Hydromat will maintain a full inventory of FMB bar feeders, parts and accessories and provide full service technical support, field service, and order desk capabilities.

Hydromat’s Bar Feeding Group has been a leader in the sales and service of magazine bar feeding equipment in the North American market for the last 20 years. They offer an extensive and experienced national sales and service network supported by its technical center headquartered in St. Louis, Missouri.

FMB offers seven models of magazine bar feeders that handle a range of material between 1mm and 100mm in diameter and 4’ to 14’ in bar length for both sliding and fixed headstock lathes.

Earle M. Jorgensen Company Announces New Spokane Facility

Earle M. Jorgensen Company  announced that its recently-opened Spokane, WA facility has reached full operating status. The facility was first opened on July 1, 2005.

The 15,000 square foot facility has an extensive inventory of bar and tube stock and features the latest in metal cutting equipment. Five new jobs have been created at the site. The facility will enhance and expand service levels in the areas of Eastern Washington, Northern Idaho, and Western Montana.

“Following the significant increase in sales to the region, we wanted to increase service levels and delivery options to our customers beyond those available from our Seattle facility,” said Robert Cloos, District Manager for Earle M. Jorgensen Company. “Our customers, many of who are local screw machine companies, machine shops and local OEMs, will have the benefit of a wide range of metals, and value added machining options. They will also have continued product availability enhanced by the location of the Spokane facility directly on the route to Seattle from our main Chicago operation, which provides seven to ten delivery runs a week.”

Kurt Manufacturing  Appointed Exclusive North American Marketing Agent For Vischer & Boli

Kurt Manufacturing Company, Industrial Products Division, announced that it has signed an exclusive agreement with Vischer & Bolli of Dubendorf, Switzerland to market the VB Dock Lock® Zero-Point Workholding System in the United States, Canada and Mexico.

The announcement was made jointly by Mr. Kurt Bolli of Vischer & Bolli and Mr. Steve Kane, sales and marketing manager for Kurt. The agreement is effective November 1, 2005 with the VB Dock Lock to be marketed through an exclusive Kurt distributor dealer network.

The VB Dock Lock system integrates with workholding devices such as Kurt vises and provides fast, accurate and repeatable setup on machining centers.    The system consists of a patented hydraulic actuated locking cylinder device that positions and locks the vise onto the machine worktable. It allows the user to locate or remove the workholding from a machine, or move it offline or to another machine and/or back again in just seconds with zero-point positioning accuracy every time.

Vischer & Bolli has been a leading European precision workholding supplier since 1957. The VB Dock Lock is widely used throughout Europe by leading precision manufacturers. By partnering with Kurt in North America, Vischer & Bolli said it expects to gain rapid product awareness through Kurt’s established distribution and customer base.

 Pathtrace and Mori-Seiki Announce Collaboration Plans

Pathtrace, developers of EdgeCAM, and Mori-Seiki, have announced collaboration plans to provide factory approved post processors for the Mori-Seiki range of Mill/Turn products.

As part of this collaboration, EdgeCAM will be shown on the Mori-Seiki booth and used to program demonstration parts at major trade shows. The first results from the collaboration were shown at EMO in Hannover in September, where EdgeCAM was demonstrated programming the latest Mori-Seiki NT Mill/Turn machine tools.

In addition, Pathtrace will supply EdgeCAM to the Mori-Seiki technical centers in the USA, an extension to the current arrangement where software has been supplied to Mori-Seiki in both the UK and Japan.