Korea Shows Its Machine Tool Muscle

Spurred chiefly by its growing auto industry, Korea is now on its way to becoming a major manufacturer of machine tools. Currently, that country ranks seventh among the world's producers. According to a report from the US Chamber of Commerce, the auto industry, combined with new interest in electronics and constructions, has ignited rapid growth in much of Korea's economy. The report further notes that: "Korea's market demand has changed from standard, cost-effective or general products to high-precision, high-speed, and high-powered machine tools. In line with this trend, market demand for computerized numerically controlled (CNC) machine tools has rapidly increased.

"The Korean machine tool industry has gradually upgraded levels of technology, and Korean-made products are considered compatible in the world market in terms of functional technologies such as machining and assembly processes," the report continues.

"There are currently 128 machine tool manufacturers in Korea, most of which are medium and small-sized companies. In particular, Korea's production of numerically controlled (NC) machine tools grew constantly at a 2% annual rate. The Korean machine tool industry aims at increasing the NC production ratio to 70%," the US Commerce report concludes.

The best of Korea's machine tool production will be shown at the Seoul International Machine Tool Show (SIMTOS2006) April 12-17, which promises to be the largest machine tool show ever held in Korea. Held at the Korea International Exhibition Center, SIMTOS2006 will be three times larger than the previous SIMTOS2004.

Sponsored by MOCIE (Ministry of Commerce, Industry and Energy) and organized by KOMMA (Korea Machine Tool Manufacturers' Association), the show will include more than 3300 booths representing over 400 machine tool companies from 30 countries including Japan, Italy, UK, Switzerland, Spain, Turkey, USA, and Russia. They predict at least 60,000 trade professionals will attend.

Exhibition categories will include metalcutting machines (CNC lathes, multipurpose machining centers, grinding machines, and EDM). Metalforming machines (hydraulic presses, servocontrolled presses, CNC shearing machines, bending machines, lasercutting machines, and robots). The exhibition halls will be divided into five sections: Metalcutting Machines, Metalforming Machines, Industrial Robots and Automation, Cutting Tools/Measuring Equipment, and Machine Tool Parts.

American factories continue to increase equipment investment: competitors in Asia also increased their consumption of machine tools in 2005

Last year, metalworking factories in the United States consumed $5.8 billion in new machine tools. That represents a 14 percent increase over American consumption of $5.1 billion in 2004, which in turn was a whopping 30 percent improvement over the spending level in 2003.

Clearly, there has been a turnaround in the worrisome slump in American capital spending, which saw double-digit negative percentage changes in the opening years of the new millennium. In a ranking of countries by their machine tool consumption, the United States moves ahead of Germany into third place.

That's the good news. The not-so-great news is that competitive goods-producing economies--particularly those in Asia--also increased their investment in machine tools.

China, the world's largest consuming country for the last 4 years, saw a 15 percent boost in 2005. Japan, number two in the world, broadened its investment by nearly 30 percent. Among other Asian consumers, South Korea increased consumption by 20 percent. Taiwan, which had posted an unsustainable near-doubling of consumption a year ago, declined in consumption by 19 percent but nevertheless managed to hold on to the number-seven position. Suddenly booming India showed a 73 percent increase in machine tool installations compared to 2004.

The international statistics come from the 41st World Machine Tool Output & Consumption Survey, conducted annually by Gardner Publications, Inc., publisher of this magazine. The study measures output, trade and consumption from major industrialized nations.

Of the 28 countries in this year's survey, three-quarters showed an increase in consumption. The term "consumption" is a derived statistic. It's what economists call "apparent consumption," and it's calculated by taking a country's production, adding in the value of its imports, then subtracting its exports. The figure of $5.8 billion in machine tools consumed by the United States comes from taking $3.2 billion in American output, adding $3.8 billion in imports and reducing the sum by the value of American exports, $1.2 billion.

As noted, the $5.8 billion in American consumption represents a 14 percent increase over the $5.1 billion figure a year ago. (However, the figure is still well below the all-time high of $8.7 billion in 1998.)

Spain continues to focus abroad: this year's BIEMH show proved that Spain's machine tool builders, as well as its tooling and accessory manufacturers,

My second time attending Spain's biennial BIEMH machine tool show reinforced the notion that this E.U. country is drawing greater attention from the global metalworking marketplace. The 2006 show was the second edition held at the Bilbao Exhibition Center (BEC), which co-organizes the event along with AFM, Spain's association of machine tool manufacturers. The rain that fell in Spain during the 24th edition of this event didn't seem to dampen the spirit or interest of international attendees. While overall attendance and exhibitor numbers were down slightly compared to 2004 (although still much higher than previous shows that were not held at BEC), the numbers of international visitors and represented countries were both higher. This seems to indicate that there is a growing interest in Spanish machine tool technology abroad.

According to Gardner Publications' 2005 World Machine Tool Output and Consumption study, Spain ranks ninth in the world in machine tool production and tenth in machine tool consumption. AFM representatives note that the automotive and die/mold industries remain big targets for its member companies, but many would like a greater share of the burgeoning aerospace market. Some companies do have a healthy aerospace presence, such as Danobat (one of seven companies within the Danobat Group) with its line of turbine blade grinders
The U.S. market is one that AMT, Spain's association for machine tool accessories, components and cutting tools, would like to see its member companies penetrate. Most of the AMT companies are small to mid-sized manufacturers that export approximately 40 percent of their sales. Carlos Pulana, president of AMT and director of the Izar cutting tool company, believes that the key to success in the U.S. market hinges on identifying niche applications that the Spanish manufacturers can fill. In order to gain exposure in the United States, ten AMT member companies plan to attend IMTS 2006 in Chicago, Illinois. Mr. Pulana notes that their largest U.S. distributor is American Quality Tools, located in Riverside, California.

Live Center is suited for American machine tool industry

Available in 5 models and sizes 1-6 Morse taper, Perfetta(TM) is designed for turning on CNC lathe or for use on CNC grinding machine. Product, manufactured from Chromium-molybdenum alloy, heat-treated to 62 RC surface hardness, and precisely ground, features double-row of angular contact ball bearings and precision thrust bearing that optimize speed and concentricity while minimizing friction. Other components include precision taper roller bearing and needle bearing.

The evolution never ends,

Dorian Tool International introduces the Perfetta(TM) Live Center. These live centers, which have already been recognized throughout the rest of the industrial world as the most precise live centers ever built, are now available to the American machine tool industry. Designed for turning on a CNC lathe or for use on a CNC grinding machine, the Perfetta(TM) live center has over 50 years of proven workmanship. Where speed, precision and dependability are the requirements, these tools guarantee quality and performance.

The Perfetta(TM) Live Center is manufactured from a Chromium-molybdenum alloy which has been heat-treated to 62 RC surface hardness and precisely ground to yield high strength and a long working life. The precise double-row of angular contact ball bearings and precision thrust bearing maximize speed, concentricity and minimize friction. A precision taper roller bearing is used for the heavy-duty Perfetta(TM) Live centers to support a heavy workload and radial thrust. A precision needle bearing located on the rear of the center shaft minimizes any spindle deflection and maximizes weight support and neutralizes any turning vibrations.

To protect and extend the life of the Perfetta(TM) Live Center, the bearings are permanently lubricated with a special light weight oil, and hermetically sealed with a press fit brass shield and a neoprene seal.

The Perfetta(TM) Live Center has been engineered with the most precise workmanship and passed through a very strict quality control process and is continuously improving to meet the more ever demanding needs of today's industry standards.

The Perfetta(TM) Live Center is available in five models and in sizes 1 to 6 Morse taper.

1) General-purpose

2) Heavy-duty

3) CNC

4) High Speed

5) Bull Nose

Enduring EMO - machine tool trade show

All of the Americans who took part in EMO 2001, the huge machine tool fair in Hanover, Germany, will remember it as the show that took place right after the terrorist attacks on September 11. Although the terrible events in the United States did not disrupt the show, they left a mark.

Many would-be attendees from the United States had to cancel their visits because of disruptions in flight schedules. (This year 1,300 U.S. metalworking professionals attended compared to 4,000 in 1997, the most recent year the show was held in Hanover.) Those Americans who had already arrived had to deal with the stress and apprehension that comes from being far away from home when terror and tragedy strike in one's own land.

The day of the attack found the team from MODERN MACHINE SHOP scattered in different parts of Europe. Senior Editor Chris Koepfer was en route to Germany from the Czech Republic. Publisher Dan Luciano and company president Rick Kline were in Germany. I was in Switzerland. All of us had the same experience, however. Wherever we were, our overseas hosts shared our shock and pain over the incidents. Their expressions of sympathy and support were heartfelt and genuine.

We all managed to convene for the show in Hanover as planned. There we found a growing sense of solidarity and resolve directed toward America and its citizens. This was evident both in many private comments from individuals and in public expressions such as the minute of silence observed on the second day of the show in memory of the victims. By then, it was clear that the events on September 11 would have repercussions around the world, although the nature and scope of the effects could only be surmised.

There was never a question that the show should proceed as normally as possible. And so it did. Total attendance ultimately hit the 200,000 range as expected. More important, the new products on display showed that metalworking technology is advancing around the world, including in Europe and in Germany in particular. (A broad summary of our observations from the show begins on page 162, but selected highlights will be featured throughout our upcoming issues.)

For the short term, business conditions will be rocky in many parts of the world. For the long term, a spirit of optimism and good will must prevail. There can be no retreat from the commitment to improving quality, boosting efficiency and reducing costs. In this, nothing has hanged.

America's appetite for equipment falters - The World Machine Tool Output & Consumption Survey - Germany surpasses United States as world's largest mac

For the first time since 1993, the United States falls from the top rank among the world's machine tool consumers, slipping behind Germany. Fall-off in the domestic market clobber American builders, whose already-depressed output falls another 17 percent in 2001.

America's metalworking shops and factories acquired only $5.36 billion worth of machine tools during 2001 .That's 21 percent behind the $6.77 billion consumed during 2000, which was 5 percent below the 1999 level, which in turn was 18 percent below that of 1998.

And while Congress plays politics with needed economic-stimulus packages, other countries expand their investment in productive equipment.

Last year Germany boosted its purchases of lathes, presses, machining centers, and so on around 8 percent to $5.58 billion, putting it into the top slot among the world's machine tool consumers. (See Top Consumers table.) The last time that the United States was not the world's leading consumer was in 1993, when China's rapid industrialization made it surge ahead for a year before falling back to its third-place position.

This time, too, China made a substantial gain, as did Italy and France. Even Japan, which has been troubled with three recessions over the past decade, managed to boost its investment 9 percent in 2001, following a 6 percent gain the year before. Among the large consumers, South Korea and Taiwan showed significant declines last year.

The international statistics come from the World Machine Tool Output & Consumption Survey (WMTO&CS), conducted annually by Gardner Publications, Inc., publisher of this magazine. The study measures output, trade and consumption from major industrialized nations.

For all its slipping consumption, the United States isn't going to see a quick rebound. New orders, which predate consumption deliveries by anywhere from a week to many months, keep slipping, too. Orders for new machines, tracked by a separate series of monthly reports from the two machine-tool trade groups, fared very poorly last year. The latest US. Machine Tool Consumption (USMTC) survey of participating member companies shows December orders down 46 percent compared to December 2000. That put the total orders for the year 2001 at 34 percent below the previous year. Or, as Ralph J. Nappi, president of the American Machine Tool Distributors' Association, puts it, "December orders were indicative ofa year that the industry is happy to close."