June • July 2007 • Vol. XXV No. 5 • An Arnold Publication

Industry  News • Executive Hotline

Executive Hotline

Raytheon to Pursue Avionics Contract For New Space Vehicle

The Missile Systems division of Raytheon Co. will submit a proposal to be the prime contractor in partnering with NASA to develop the avionics for NASA’s Ares 1, the crew launch vehicle that will carry astronauts into space following the 2010 retirement of the space shuttle, company officials said.

OSI’s Rapiscan Gets $7M in Orders          

OSI Systems Inc.’s Rapiscan Systems division in Los Angeles has been given two contract orders worth a combined $7 million from two U.S. government agencies.

The specific agencies were not disclosed. Rapiscan will supply the agencies with its Eagle Gantry, Gamma Radiographic Detection Systems Gantry and Secure 1000 systems.

Tesla Motors Gets $45M in New Funding 

Electric car startup Tesla Motors has raised $45 million in new funding. Funding came to the San Mateo-based company from Technology Partners, which focuses on clean technology and life sciences, and Capricorn Investment Group. Both firms are in Palo Alto. Also adding to the funding was Tesla chairman Elon Musk.

Tesla plans to start making its two-seat roadster later this year, and has already received more than 400 deposits for the zero-emission roadster, which will cost about $100,000 and travel 200 miles on one charge.

In February, Tesla said it would open a new car plant in New Mexico instead of California.

Thousands of Students Flock to Career Expo in Oregon

Organizers of a job exposition held in mid-May at the Oregon Convention Center said the program has attracted some 4,500 students. Twelve employers and organizations sponsored the event, including Boeing Corp., Gunderson Inc., Legacy Health System, Oregon Iron Works, Evraz Oregon Steel Mills Inc., PCC Structurals Inc. and the Portland Development Commission. The Manufacturing 21 Coalition, Oregon Building Congress and Portland Workforce Alliance also contributed to the event.

Port OKs Biofuel Plant

The Port of Sacramento in May approved a proposal from Primafuel Inc. to build a biofuel facility.

The Long Beach company would build a 60-million-gallon biofuel production facility on port land.

Rahul Iyer, executive vice president with Primafuel, said the company’s total investment would be $60 to $90 million.

The company would lease 10 to 14 acres of land along Industrial Boulevard from the Port. The plant would consist of a research and development building, five manufacturing modules, and a series of tanks for feedstock and finished products.

Bechtel Ranked Top U.S.  Contractor

For the ninth year in a row, Bechtel Corp. was listed as the top U.S. contractor by the trade magazine Engineering News-Record. The magazine ranks engineering companies each year by revenue — Bechtel’s was $20.5 billion in 2006. Fluor Corp. of Irving, Texas, ranked No. 2 this year. Last year’s No. 2 firm, Dallas-based Centex  dropped to No. 25 this year.

Webcor Builders of San Mateo was at No. 29, the same ranking it had last year. San Francisco’s Swinerton ranked No. 30 and Redwood City’s DPR Construction ranked No. 35.

Space Systems/Loral Awarded  Contract To Build High-Power Satellite For SES New Skies

Space Systems/Loral Palto Alto, CA a subsidiary of Loral Space & Communications  and a leading provider of high-power commercial satellites, announced that it has been awarded a contract to manufacture a new spacecraft for SES NEW SKIES, a subsidiary of SES Global.

Boeing Announces $4.7B Plane Order          

The Boeing Co. said the TUI Group, a tourism company based in Europe, has ordered 11 787-8s and 50 737s valued at $4.7 billion at list prices.

Lockheed Martin WinsTargetry Systems Contracts Worth $4.5M

Lockheed Martin Corp. has received three contracts worth $4.5 million to provide modular targetry systems to the U.S. Army and U.S. Marine Corps. The army will receive systems for three ranges at Fort Hood, Texas, and for three ranges at Fort Blix, Texas. These six systems will include stationary infantry targets, stationary armor targets, and moving armor targets.

Northrop Grumman Unit Lands Air Force Project

Northrop Grumman Technical Services of Herndon won a 45-month, $8 million contract from the Air Force to improve the storage and availability of technical data for weapons systems at Hill Air Force Base, Utah.

Among the weapons systems maintained at that location are the A-10 Thunderbolt, F-16 Fighting Falcon and intercontinental ballistic missiles.

Washington State Unemployment Rate Hits Another Record Low

The state’s unemployment rate fell to 4.4 percent last month from 4.6 percent a month earlier and April’s rate is the lowest since the state began keeping records 31 years ago, according to state officials. In the Seattle/Bellevue/Everett area, the unemployment rate fell to 3.8 percent, down from 4.4 percent in March. The U.S. unemployment rate rose to 4.5 percent last month from 4.4 percent a year earlier.

 “The news last month that Washington had record-low unemployment was very exciting, and today’s announcement is even further proof that our state economy is one of the strongest and fastest-growing in the nation,” said Gov. Chris Gregoire, in a statement.

Silicon Wafer Shipments up Slightly in Q1

Worldwide silicon wafer area shipments remained stable with a one percent increase during the first quarter 2007.

San Jose-based SEMI Silicon Manufacturers Group said total silicon wafer area shipments were 2,100 million square inches during the most recent quarter, a slight increase from the 2,070 million square inches shipped during the previous quarter. The new quarters total is about 11 percent above first quarter 2006 shipments.

Callaway Improves Over First Quarter 2006

Callaway Golf Co., a Carlsbad maker of golf equipment, reported May 3 that it had net income of $33 million on net sales of $335 million during the quarter ended March 31. That translates as 48 cents per diluted share.

In the year-ago quarter, Callaway reported net income of $23 million on net sales of $302 million. That equals 33 cents per diluted share.

Aerospace Predicted to Hold Strong

“This is not a replay of the ’90s,” pronounced Jack Kyser, chief economist at the Los Angeles County Economic Development Corp. “The economy is growing and adding jobs.”

Aerospace and defense companies had been a major component of the regional economy for decades, building and supporting military and commercial customers.

Aerojet Nabs NASA Contract

NASA has selected Rancho Cordova-based Aerojet to provide developmental engines for its new rocket.

Aerojet will develop engines for the Ares I crew launch vehicle first stage roll control system. The engines are part of the developing roll control system, which would help Ares stay on trajectory through the first two minuets of flight.

 NASA’s Ares program will carry astronauts to orbit Earth.

ArmorWorks Moves to Chandler, AZ Celebrated

Military contractor ArmorWorks celebrated its move to Chandler with a grand opening and ribbon cutting Wednesday, drawing dignitaries including U.S. Sen. John McCain.

ArmorWorks founder and CEO Bill Perciballi,  who served in Desert Storm as an Army special forces officer, discovered then that troops refused to wear body armor plates.

”It was one size fits all, and it was heavy,” he said. “I felt the armor the services had wasn’t appropriate for the operations the Army was engaged in.”

He learned of emerging technology in aerospace and automotive industries that could be translated into use in armor. As an industrial and materials engineer, he developed armor that weighed less, and he made it in seven sizes.

Besides body armor, the company also makes protective equipment for vehicles and aircraft.

Scottsdale General Dynamics Unit to Make FAA Radios

The Federal Aviation Administration has ordered $10 million worth of high-frequency radios and equipment from a Scottsdale-based division of General Dynamics Corp.

Industry News

Toyoda Extends Support with New Service Network

 Toyoda Machinery has introduced a new Service Network, expanding its customer service department.

 “Our goal is to deliver the shortest possible response time while minimizing downtime and customer expenses,” explains SPD National Service Manager, Pete Lechtanski.

The Service Network goes beyond Toyoda’s service team to include its dealers’ service team members and independent contract service houses for areas without a local dealer. This expanded reach allows Toyoda to deliver quicker response time to any location in North America.

“Each member of the Service Network is required to complete a thorough training process and earn certification directly from Toyoda,” Lechtanski adds.

Certification will be available in three areas: general service, installation, and advanced levels. The advanced levels certification includes specialization in specific areas, such as spindles and rail-guided vehicles. 

Starting in April 2007, Toyoda’s Service Network  added a second shift, extending its hours of operation to 11 p.m. CST. This will provide better support to Toyoda customers on the west coast and lengthen the opportunity for east coast customers to request overnight shipments.

EDM Network Opens California Office

EDM Network is expanding its presence in the western U.S. by opening a western regional sales facility in Murrieta, California. Larry Wetmore has been hired to oversee that facility as western region sales manager. EDM Network is the exclusive importer and service support center for Chmer EDMs in the United States.

In making the announcement EDM Network president, Ron Vogel, said was important to capitalize on the company’s momentum. “Over the past year, Chmer EDM sales have seen significant growth, and we felt it important to support that growth by opening a western region facility. We also felt it was important to bring in someone of Larry Wetmore’s caliber to run it with his vas experience and superior credentials.”

The new facility will handle full sales, service and applications support for the western United States. Larry Wetmore has extensive EDM experience dating back to 1978 when he started as an operator for a wire EDM job shop in southern California. Since then he has managed a large EDM shop, been a general partner in another company and owned his own shop in northern California. He also served as a Sodick distributor for nearly 10 years.

Ammo Opens Second Hall in Las Vegas

The American Manufacturing Expo, (AMMO) has announced the opening of the second hall for the September 18-20, 2007 show.  Several companies have already reserved space in this new exhibit area.

“Floor space in the original hall is extremely limited due to the recent activity in large booth sales,” says Joe Smith, president Smith Publishing, Inc.

“We have been quite pleased with recent exhibit sales activity,” Smith added. 

This is the first time Las Vegas has attracted exhibiting companies such as Haas, Toyoda, Doosan, Marubeni, Kasto Racine, Flow Industries, Gibbs, Mastercam, Hardinge, Pathtrace and a multitude of others. The show will feature a wide range of manufacturing technology.

Mastercam Reports Record Sales Quarter

CNC Software, developer of Mastercam CAD/CAM software, announced that Mastercam sales for the first quarter 2007 have been the highest in the history of the company (23 years). New Mastercam seats, customers updating to the current release, and Mastercam’s Maintenance program have all contributed to the company’s record quarter.

CNC Software also reports that sales for 11 out of the past 12 months have beaten the previous sales records set for each month since the company started in 1984.

“The sales trend that we are experiencing shows that Mastercam customers, new and old, are not only taking advantage of the many enhancements that we have offered over the past 2 years, but are also profiting because of them,” says Steve Bertrand, director of corporate sales. “In addition to new seats sold, we are experiencing an increase in orders for additional seats of Mastercam from existing customers, which is a true testament to this fact.”

Mastercam X originally released in August of 2005, was redesigned to reduce programmer interaction and increase machining flexibility. This release, along with the introduction of the Mastercam Maintenance program, the delivery of Mastercam X2, and recently X2 MR1, have resulted in a record year in 2006 as well as the record first quarter 2007.

“As in the past, we will use our success to reinvest in the company, in Mastercam, and in the success of our users,” says  CNC Software President, Mark Summers.

Mori Seiki Names VP Machining Technology Laboratory

Mori Seiki announced the appointment of Greg Hyatt to the position of VP  Chief Technical Officer of the Machining Technology Laboratory (MTL), a new entity dedicated to enhancing manufacturers’ overall machining process.

In a career that spans more than twenty years, Hyatt initially entered the manufacturing industry through engineering roles in Mori Seiki’s customer base. His extensive experience in overseeing product development and emerging technologies led to a position in the Mori Seiki organization as vp Engineering in 2003.

In his new position as vp Chief Technical Officer of MTL, Hyatt will meet the most tenacious manufacturing challenges of Mori Seiki customers. Mori Seiki MTL focuses on the development of breakthrough technologies beyond the scope of machine tool design to provide performance improvements in areas such as cutting tools and workholding.

Delcam Scores Double First in CIMdata Rankings

Delcam has scored a double first in the latest NC Software and Related Services Market Assessment from renowned US consulting and market research firm, CIMdata. The report has confirmed Delcam as the world’s leading specialist supplier of CAM software and also ranks it as the worldwide leader in supplying CAM systems to the mould, tool and die sector.

Delcam’s Managing Director, Hugh Humphreys, was delighted with the results and claimed that they represented a clear validation of the company’s aggressive growth strategy. “For several years, we have aimed to build our company’s sales by diversifying outside our traditional market in the mould, tool and die sector and increasing our business in other areas, in particular in the automotive and aerospace sectors,” he commented. “During the last year, we have both consolidated our position as the world’s leading supplier of CAM software and services to our core market, and have also moved up the list of suppliers to the automotive and aerospace industries.”

M.A. Ford Announces  Promotion

M.A. Ford  announced the promotion of Judy Brauer to senior marketing and national accounts manager. Judy has been with the company for more than 28 years and has held positions in industrial engineering, human resources and narketing prior to this appointment. As national accounts manager, Judy will be taking on the additional responsibility for the management of all national and regional catalog sales accounts. 

Makino Announces Date Of 2007 Die Mold Expo

Makino’s 2007 Die Mold Expo will be held September 25 through 27, 2007 at the Auburn Hills, Michigan Tech Center. It will feature machine demonstrations, presentations on cutting-edge machining topics, and over 20 tooling and moldmaking vendors.

“Over the last 10 years, our bi-annual Die Mold Expo has become a big event to inform moldmakers about emerging technologies and new techniques,” said Mark Rentschler, Makino’s marketing manager. “In addition, it’s a great way for our engineers to show moldmakers the potential they have to produce molds faster and with less secondary work; sharing with them Makino’s new thinking in moldmaking.”

The machines to be displayed, schedule of presentations and vendors on display will be announced in the coming weeks. Information will be posted when available at Makino.com.

Mori Seiki Names New Marketing Manager

Mori Seiki USA recently announced the appointment of Dana Super to the position of marketing manager. Ms. Super will be responsible for Mori Seiki’s marketing efforts in the United States, as well as contributing to marketing strategy on a global level.

After beginning her career at a business-to-business advertising agency,  Super transitioned into the machine tool industry in 1995. Over the past twelve years, she has served as marketing manager for several of the industry’s leading machine tool builders, including DMG Chicago and Toyoda Machinery.

Ms. Super holds a Bachelor of Arts degree in Mass Communication from St. Cloud State University in St. Cloud, Minnesota.

Amera Seiki Names New Sales Manager

Amera-Seiki Corporation announced that Ronald C. Gauthier has joined Amera-Seiki as Sales Manager, and will be located in the Detroit Metro area.

Gauthier brings more than 20 years of experience in the machine tool business as both a manufacturer and sales and distribution.

Amera-Seiki is a full line provider of bridge mills, vertical turning centers, horizontal machining centers, and turning centers servicing the US metalworking market for over 16 years.

MAG Industrial Automation Systems Appoints President

Global manufacturing system producer MAG Industrial Automation Systems (MAG IAS),  has appointed Dr. Robert Wassmer president. 

Dr. Wassmer comes to MAG IAS from Bombardier Transportation where he was director of the research and development section of the Locomotive & Freight division (July 2000 to January 2003), and then managed Bombardier’s bogie division, including facilities in western/eastern Europe, China and India (February 2003 until his move to MAG IAS). Other past experience includes ADTRANZ (later DaimlerChrysler Railsystems), where he helped coordinate international development projects and introduced standardized engineering processes and IT systems.

 Wassmer earned his doctorate in mechanical engineering at the University of Karlsruhe (Technical University), with a focus on product engineering.

Through strategic acquisitions since 2005, MAG IAS has assembled a group of premier machine tool companies and respective brands with long-standing, international recognition within the durable goods manufacturing industries. MAG IAS now consists of four groups.

 MAG Powertrain (Cross Hüller, Ex-Cell-O and Lamb) supplies mainly to the automotive industry. MAG Advanced Technologies (Cincinnati Machine, Giddings & Lewis, Cincinnati Automation & Test, Hüller Hille and Fadal) develops high performance metalcutting, automation and composite systems primarily for the aerospace, heavy equipment and power generation industries. This group also produces highly-reliable CNC vertical turning centers and machining centers. 

Mitsubishi EDM/Laser Hosts Open House at Joe Gibbs Racing

Mitsubishi EDM/Laser, sponsor of  Joe Gibbs Racing, hosted an open house event on May 10 at the JGR Headquarters in North Carolina. Attendees were given a behind-the-scenes tour of the racing facility, product demonstrations, and a free Mitsubishi Racing tee shirt. 

J.D. Gibbs, president of JGR, spoke to the crowd about his company’s relationship with Mitsubishi EDM/Laser. He discussed the importance of machine reliability and performance to a race team and the critical role manufacturing plays at JGR.

CNC/Quality Control Manager Mark Bringle covered technology advancements and the importance of turn-around time in NASCAR™.

The event offered machine demos on all of JGR’s Mitsubishi equipment.

Hurco to hold 7th Annual Technology Seminar

Hurco will demonstrate the power of its latest technology innovations on Friday, July 27th. With corporate headquarters located in the racing capital of the world, Hurco’s 7th Annual Technology Seminar will incorporate the excitement of the Allstate 400 at the Brickyard® race into the event. Customers can research new products, attend technology seminars, and have some fun at the Indianapolis Motor Speedway all in one day. To register for the Hurco 7th Annual Technology Seminar and Brickyard Track Day Event, please go to www.hurco.com/registration.

The Hurco event starts at 8 a.m. with product demonstrations, technology seminars, and more than 20 vendor exhibits. Attendees will experience the power of Hurco’s new control software, WinMax®, that is power packed with 25 new features.

Customers will also have the chance to preview soon-to-be-released machines, such as the huge VMX84 machining center for large molds, dies, and parts; and the VM1P, a   production machine with an incredibly small footprint.

The Hurco event will conclude with lunch, prize drawings, and an outing to the Indianapolis Motor Speedway to take in the sights and sounds of the final practice day before the Allstate 400 at  the Brickyard® race.

Mastercam Announces 2nd Annual “Innovator of the Future”

CNC Software, developer of Mastercam CAD/CAM software, has announced that the winner of the its IOF (Innovator of the Future) contest for 2007 is Bernie Sievers, a student in the Advanced Manufacturing Program at Vincennes University (Vincennes, IN). This is the second year that a Vincennes University student has been the winner of the contest. 

Mastercam’s Innovator of the Future (IOF) contest helps introduce students to real-world manufacturing by asking them to produce a specific part that will be judged by a special guest from the manufacturing industry. The IOF contest required entrants to design and build innovative monster truck shock absorbers, capable of supporting these huge vehicles without the aid of springs. The contestant also had to submit a written explanation of how the shock was made, and how it improved over designs currently available from commercial manufacturers.

The guest celebrity judge for IOF 2006 was Paul “Pablo” Huffaker, driver of the Grave Digger XVI and Captain’s Curse monster trucks. Pablo, who owns and operates Racesource, Inc., is the only driver in the industry who designs and manufacturers many of the parts necessary to keep his trucks running competitively.

Bernie Sievers’ winning entry was a gas charged shock designed to look like a gun barrel and scope. It has a brushed matte finish and a ventilated rib, often seen on shotguns. For added effect, the frame of the shock looks like a revolver chamber with 10 shell casings inserted in it. Bernie Sievers is a race car enthusiast and is interested in applying his skills to 5-axis CNC machining.

Bayless Adds Market Strength With Acquisition Of Wright Engineering

Earl Bayless, founder and president of Santa Clarita-based Bayless Engineering and Manufacturing, announced the acquisition of Wright Engineering, formerly located in Canago Park. The acquisition marks the fourth company currently owned and operated by Earl Bayless. Wright Engineering joins Bayless Engineering and Manufacturing, Powder Coating Plus, and DoorGate Industries.

Wright Engineering relocated to the Valencia Industrial center last month. The combined companies make up Santa Clarita’s largest sheet metal and precision machine parts manufacture. Moving to a larger space and consolidating metal works under one roof, Wright Engineering expanded its workforce. Former owners Lou Vickovic and Randy Wright have remained with the company following the transfer of controlling interest to Earl Bayless.

Wright Engineering has been doing business for more than 14 years manufacturing high quality precision parts predominantly for aerospace applications. Some of the other industries served by Wright are aircraft, communications and weapons systems builders.

“Manufacturing business often have difficulty finding qualified people,” says Bayless, describing the specialized workforce required in the industry. “Acquiring an existing company and retaining their employees is one way to grow the business.”

Mori Seiki North American Sales Appoints New Vice President

Mori Seiki has announced the appointment of Randy Harland to the role of vpt of North American Sales.

In 2003, Mr. Harland joined Mori Seiki Mid-American Sales, Inc. in territory sales, then sales management as Midwest Sales Manager. In his new position as Vice President of North American Sales, Mr. Harland supports Mori Seiki distributors and focuses on operational improvements to achieve the goal of over 1,800 machine installations this year.

Mr. Harland has a bachelor’s degree from the University of Michigan and a Master’s degree in Marketing from the Thunderbird School of Global Management. Previous to joining Mori Seiki in 2003, he spent fourteen years at Machining Systems, Inc. (MSI), where he began as a territory sales engineer. Eventually, he rose to the position of senior vice president.