Come Together - acquisitions and partnerships among machine tool companies - Brief Article

Machine tool companies are buying one another. Machine tool companies are partnering with one another. This activity may seem unsettling . . . as if the number of players in the industry is in decline. However, the more important consideration is the potential of this consolidation and partnering to augment the productive capacity of shops. Viewed in this light, what we are seeing today represents a natural development from the very premise on which the machine tool industry was founded. This trend of consolidation is one we should have seen coming, oh, 100 or so years ago.

Information technology at least partly explains why this coming together seems to have picked up in the last few years. With computers moving electrons in place of humans moving paper, organizations are easier to integrate. This is true outside the machine tool industry, as well. Try to name an industry today that's not consolidating.

Among machine tool companies, strategic purchases or partnerships can help end users by saving them from having to deal with multiple sources. A recent partnership provides an example. A lathe maker, a machining center maker, and a robot maker all recently announced they would partner to offer complete cells to the wheel-making industry through a single point of contact. Presumably, a given manufacturer of wheels might have chosen equipment comparable to what these three companies have to offer anyway. But the partnership saves this manufacturer the time and effort necessary to deal with three different suppliers. The wheel maker gets to offload that hassle

Compare this benefit to the reason the machine tool industry got its start in the first place. Over a century ago, manufacturers routinely created for themselves the machinery needed to make their own products. Machine tool companies offered what was a novel idea at the time--the promise to let manufacturers outsource machine production.

Now, by achieving consolidated sources for related equipment, some machine tool companies are taking another step in the same direction. In addition to producing the machines, these companies now can also offer to eliminate some of the management burden associated with having a variety of machine tools in a single shop. In other words, this is one more way machine tool companies let shops devote less resources to determining how they will produce . . . and more resources simply to producing

Monarch Machine Tool Web site is simple and effective

Cortland's Monarch Machine Tool keeps it simple and effective.

The main page (www. monarchmit.com) features a black and

red border for links and a white background for text. Monarch

opens its page with a single-paragraph description of its

business followed by more specific information. Each specific

description is linked to a corresponding section. The site links

are also arranged in order of usefulness, listing classes of

machines. The linked pages offer further specificity, down to

individual machines. Monarch includes necessary specifications

for each model as well. The company's contact information

features several methods, including an online form. The

contact form requests relevant information in order to avoid general inquiries that may waste both parties' time. The

technical section offers documents in Adobe Acrobat format

and Monarch offers a link for visitors who don't already have

the program. For companies outside the area, Monarch lists its

distributor-network contact information. Like the rest of the

site, it's thoughtfully arranged, so finding the number of a

Monarch distributor in China or Singapore isn't a problem.

Monarch also includes a page of its history that now covers

nearly a century of metalworking. For owners of older machine

tools, Monarch has a page of its upgrade services. This site,

like the products shown, looks fairly simple, but is really

precision made.

Small diameter boring bars—Criterion Machine Works, booth 3039

Criterion Machine Works' 0.250" diameter solid carbide boring tools feature a length tolerance of [+ or -] 0.010" to minimize downtime when changing a tool during a production run. The tools are precision-ground flat to ensure that the cutting edge is centered. According to the company, this characteristic can maximize boring results, promote longer tool life and further contribute to reduced downtime.

Twenty-seven different diameter and length configurations are offered. Minimum bore diameters range from 0.140" to 0.200". Depending upon the bore diameter, the tools can bore holes as deep as 1.250".

Online training for Swiss-style lathes

The dwindling supply of talented machine tool operators is one of the metalworking industry's most conspicuous dilemmas. It has been especially difficult to find employees who are qualified to operate multifunction Swiss-style lathes, let alone more straightforward CNC mills or turning centers. Some machinists, though comfortable operating typical CNC equipment, may not even understand how a multi-axis Swiss machine functions.

Recognizing that the key in cultivating a knowledgeable workforce lies in intuitive training methods, Index Corporation (Noblesville, Indiana) teamed with Oxygen Education (Indianapolis, Indiana) to develop a graphics-driven online training course for the Traub line of CNC Swiss-style lathes. The course is based on an interactive "virtual machine" that includes graphical representation of all significant machine components, subsystems and the CNC.

The first half of the chapter-based course describes the various machine components and demonstrates how they interact with each other. In these initial chapters, students are able to observe various machine components and their functions, which might not be possible when viewing an actual machine in action. By first displaying how a guide bushing, bar feeder or lubrication system works, for example, students will understand what the machine is before learning how to operate it in the second half of the course.

The machine operation section of the course covers the most routine tasks, including wiping barstock before installation, as well as more advanced duties such as presetting tools. The training CNC makes accessible and adjustable every button, knob and switch found on the actual machine control to allow students to play out "what if" scenarios.

Upon completing each chapter, students must pass an exam before advancing to the next chapter. This provides shop management with a mechanism to gage student performance, while allowing students to learn at their own pace. After completing the course, students can return to any portion of the course for review. Unlimited 24/7 access anywhere an Internet connection is available offers shops an alternative to having employees travel for their machine training. Index intends to create similar training courses for other machine models, including its multi-spindle machines.

Milling Cutter provides high feed rates

Available in 2.000-4.000 in. body diameters with 4-corner insert design, Metal Slash Mill directs cutting forces into machine spindle to achieve feed rate up to 0.078 ipt. Unit is available with CS3000 CVD-coated grade for high-speed milling of carbon steels and stainless steels, ACZ310 PVD-coated grade for general-purpose milling of die steels and cast irons, and ACZ330 PVD-coated grade for general-purpose milling of steels and stainless steels.

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Mount Prospect, IL - (August 24, 2006) Boasting feed rates of up to 0.078" IPT, the new Metal Slash Mill from Sumitomo offers high productivity milling.

The unique design of this milling cutter directs cutting forces into the machine spindle to achieve high feed rates even in low rigidity conditions.

A four-corner insert (screw on assembly) design yields low tooling costs per part. Sumitomo customers are already experiencing the benefits. "With the Sumitomo Slash Mill we realized incredible cycle time reductions by applying this high feed mill to our current manufacturing processes. Some of our cycle times were reduced by a matter of hours, actually seeing our long, complex parts made in half the time! With the unique design of this tool and it's reliable, longer insert life, it's a win-win for our shop. We can increase machine capacity without relying only on added operators or added hours, " stated Brian Shoning, machining center groupleader, Vermeer Mfg. Co.

U.S. stock standard Metal Slash Mill bodies are available in 2.000" - 4.000" diameters.

The Metal Slash Mill is available with CS3000, a CVD coated grade for high-speed milling of carbon steels and stainless steels, the ACZ310 PVD coated grade for general purpose milling of die steels and cast irons, and the ACZ330 PVD coated grade for general purpose milling of steels and stainless steels.

Germany hosts the world of machine tools and metalworking technology - Exposition mondiale de La Machine-Outil - Brief Article

One of the main reasons that EMO tends to peak when it goes to Hanover is that Hanover is in Germany; Germany is the second largest consumer of machine tools in the world (behind only the United States). Germany is also one of the leading producers and exporters of machine tools in the world. The German machine tool industry has been especially strong in this year and last, so the appearance of EMO in Hanover is very timely for its host country. German participation in this year's EMO accounts for about 45 percent of the number of exhibitors and share of the booth space.

U.S. participation is down this year compared to past shows. Recent reports indicate that 27 U.S. exhibitors will be displaying their products, about 22 fewer than in 1999. Weak domestic sales and the strong dollar have apparently discouraged a better showing. However, most visitors from the United States go to EMO to size up technology offerings from overseas suppliers.

Although machine tools are the main focus at EMO, it also covers manufacturing systems, precision tools, automated flow of material, computer technology, industrial electronics and accessories. In short, the fair covers manufacturing technology in its entirety. The product categories include machine tools for cutting, forming, parting and eroding; sheet metal and wire working machines; machine tools for thermal electrochemical and other processes; electronic controls; components for flexible automation; CAD/CAM; assembly systems and industrial robots; material flow and warehousing; industrial electronics, sensor technology and diagnostics; precision tools; measuring tools, testing and measuring equipment; abrasives; coolants and lubricants; welding, cutting, hardening, and heating equipment; and many types of mechanical, hydraulic, electrical and electronic accessories for metalworking.

Machining's role in making cancer "history": a machine shop in a new cancer treatment center produces components to precisely guide proton radiation t

Medical and metalworking technologies meld in an effort to heal in Houston, Texas. The two disciplines are working in concert to make cancer "history" at M.D. Anderson's new Proton Therapy Center, located in the heart of the Lone Star State's largest city.

One of only four proton radiation centers in the United States, M.D. Anderson's $125 million facility will serve more patients than any of the other centers, treating 3,500 per year when it reaches full capacity. In order to support such an aggressive treatment schedule, the facility houses its own machine shop that includes four networked CNC vertical machining centers (VMCs).

The primary duty of these machines is to produce two patient-specific components for the center's gantries, or radiation beam delivery devices. One of these components is a brass aperture that receives a window to shape the beam to match a tumor field's outline. The other is an acrylic compensator block into which is machined a cavity to shape the beam to release its energy at the appropriate depth within the patient's body. The ability to manipulate the beam in a way that damages a cancerous tumor without harming nearby healthy tissue is what makes proton therapy such a precise and powerful cancer treatment.

Most hospital-based machine shops are equipped with toolroom-type mills and lathes that are used to produce one-off fixtures or instruments. The shop at M.D. Anderson's proton therapy center does have such equipment for that type of work. However, it is first and foremost a production shop, as John Barr points out. Mr. Barr, the shop's supervisor, selected most of the shop's machine tools and related equipment. Four Mazak Nexus 410 VMCs will bear the brunt of the shop's production work. When the center reaches full capacity, those machines will produce thousands of apertures and compensators each yearMODERN MACHINE SHOP was invited to tour the center and its dedicated shop a few months in advance of the official opening in June 2006. During the visit, Mr. Barr and Paul Wisdom, a deft machinist who is currently "on loan" from M.D. Anderson's nearby instrument shop, explained the role that machining technology plays in support of an effective cancer treatment procedure.

Protons Pack A Punch

The 94,000-square-foot facility is topped by an open, inviting entrance with numerous offices and examination rooms. However, the building is an iceberg of sorts, because 42 feet of it is below ground. Located in this bunker are four proton radiation treatment rooms and the compact machine shop that measures 36 by 44 feet. These rooms are surrounded by 8-foot-thick concrete walls and a ceiling that's 12 feet thick. The subterranean location and beefy enclosure are required to contain stray radiation during treatment.

The apertures and compensators are the final two components in the subatomic beam delivery process. An injector first strips protons from the nucleus of hydrogen atoms and delivers them to a synchrotron, or particle accelerator. The synchrotron, essentially a magnetic "racetrack," accelerates the protons in a vacuum to an energy level approaching 250 million electron volts. The protons then travel at nearly light speed to rotating beam-delivery gantries located in three of the four treatment rooms. Though the huge gantries measure 35 feet in diameter and weigh 190 tons, they rotate smoothly, quietly and precisely 360 degrees around a patient and direct the proton beam to 0.5-mm positioning accuracy. The aperture plates (as many as four identical 2-cm-thick plates may be required) and compensator are inserted into the gantry's snout to shape and focus the beam as it exits the gantry en route to the targeted tumor.

The protons enter the a patient's body at a low energy level, peak their energy level within the tumor and effectively stop there so that surrounding healthy tissue is left unharmed. Apertures and compensators are matched sets specific to each patient and each different beam delivery angle into a patient's body. While no two sets of apertures and compensators are alike, the process for creating these components is the same for all.

Machining From A CAT Scan

The brass aperture plates and acrylic compensator blocks are first squared and face milled to size. The brass is machined dry; the acrylic is machined using high-pressure coolant. One corner of each component receives a notch, which serves as a key to ensure that the components are properly oriented when installed in a gantry snout.

The shapes of the aperture window and compensator cavity are determined by a model of the patient's tumor, which is obtained via a computed tomography scan, or CAT scan. The CAT scan captures the tumor volume one thin 2D slice at a time. The 2D images, taken at discrete depths throughout the tumor, stack together to create what is essentially a 3D model of the tumor. The electronic tumor model is part of each patient's file in the IMPAC treatment planning system, which the shop can access via the network.

American investment continues its slide - The World Machine Tool Output & Consumption Survey

Machine tool purchases by United States metalworking factories have been declining since 1998. The latest annual survey shows the trend continuing in 2002, with the one-time undisputed leader now in fourth place behind China, Germany and Japan.

For most of the 1990s, the United States led all other countries in annual installations of productive new machine tools.

But the capital investment slump that started a few years back continues, and in 2002 the United States consumed only $3.3 billion, down one-third from 2001. A year ago it had moved out of first place among consuming countries for the first time since 1993.

It's some consolation that the decline is widespread among the world's industrialized countries: Of the top dozen purchasers of machine tools, all but one had a lower investment in machine tools than in the year before.

The one exception in that pervasive cutback is China. Last year it actually increased its purchases by 20 percent, to the point where China is now the world's leading consumer of machine tools. It bought an estimated $5.7 billion worth of the machines in 2002, outspending Germany's $4.8 billion and Japan's $3.4 billion. (See Top Consumers table.)

The international statistics come from the 38th 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.

The term "consumption" is a derived statistic. It's what economists call "apparent consumption," and it's calculated by taking a country's local production, subtracting out the value of its exports, and adding the value of its imports. So in the case of the United States, domestic builders shipped $l.9 billion and exported $0.9 billion. At the same time, importers brought in $2.3 billion, so apparent consumption for 2002 comes to $3.3 billion.

The United States isn't likely to see a quick rebound. New orders, which predate consumption deliveries by anywhere from a week to many months, continue to slip.

Orders for new machines, tracked by an unconnected series of monthly reports from the two machine tool trade groups, fared poorly again last year. The latest U.S. Machine Tool Consumption (USMTC) survey of participating member companies shows total orders written during the year 2002 at 19 percent below the previous year.

The most recent monthly figure in that series, for January of this year, is also 19 percent behind the bookings posted for January 2002. That ledAlbert W. Moore, president of AMT -- The Association for Manufacturing Technology, which conducts the orders survey, to comment about America's productive capacity. "Over half of U.S. manufacturers are working with machines made in the 1960s and '70s," he says.

"The only way they can regain international competitiveness is to allow hem to fully expense he purchase of equipment in the year that it s acquired," Mr. Moore continues. "The clock s ticking for American manufacturing; the time for action is now!"

While the monthly USMTC reports orders for future consumption within the United States, the annual Gardner Publications' WMTO&CS collects statistics on actual shipments in 28 countries around the world.

Biggest Output

In addition to calculating consumption, the World Survey also lists countries by the output of their domestic machine tool industries. Germany ranks at No. 1 with $6.7 billion in 2002 shipments, slightly ahead of Japan's $6.4 billion. Italy's machinery sector, characterized by many small firms rather than a few big ones, is third, followed by the Peoples Republic of China and then the United States. (See Top Producers table.)

The total output of the surveyed countries in 2002 came to an estimated $31.0 billion, or about 14 percent less than those same 28 participants produced in 2001. The largest bloc of producers is the CECIMO consortium of mostly Western European countries. Its 15 members shipped a total of $16.1 billion, or 52 percent of the world's output.

The survey also tracks export activities. In general, the leading producers are also the top exporters, the top five of which are Germany, Japan, Italy, Switzerland and Taiwan. The latter two export more than 80 percent of their domestic production.

China's spending spree on machine tools in 2002 puts it at the top of the list of importers, which also includes the United States, Germany, Italy and South Korea. The American market continues to be highly import oriented, even though imports dropped one third from the previous year. The $2.3 billion worth of overseas-built machine tools it brought in has the U.S. market with a 70 percent import penetration (imports as a percentage of consumption). Other highly import-oriented markets include the United Kingdom (89 percent) and Canada

Our machine tool industry--changer or changee?

he United States machine tool industry is experiencing unprecedented change. Our historic business models are no longer applicable. Machine tool consumption has declined by more than 60% since 1997, causing ruthless and seemingly endless hyper-competition. Industrial globalization, outsourcing strategies, customer demands for more services, and the relentless advance of technology are heaping even more stress on machine tool companies.

The predominant feeling in our industry is that the good ole days are a distant memory, never to return again. Let's get real. Are we actually challenging ourselves as an industry, asking the right questions and analyzing root causes? What are we doing, other than lamenting and waiting for the economic turnaround? Are there deeper issues negatively affecting our industry long term we are not confronting?

Let's face some facts. In 2003 China is projected to be the number one machine-tool-- consuming nation in the world. Germany will be second and the United States will plummet to third. Why? Because other countries are aggressively building and protecting their manufacturing base while we let ours slip away. Even a robust United States economic turnaround will not bring back the substantial number of manufacturing jobs permanently lost to other countries in the past several years. Do we want to return to number one, or are we satisfied with third?

More facts. The United States machine tool industry is in danger of losing its technology and manufacturing process knowledge base. The machine tool business has been so difficult for so long that several industry icons have closed their doors forever. Some of the best people in the industry have tossed in the towel and left the business to work in other industries. Further mortgaging our future is our difficulty in attracting young applications engineers, service technicians, and sales personnel because of perceived poor career opportunities.

I believe the writing is on the wall. The US is losing countless manufacturing jobs as we continue to migrate from being a producer-nation to being a consumer-nation. This shift weakens our economic foundation, and makes us vulnerable to ever changing geopolitical scenarios such as we now face with oil-- supplying nations. The end result, if we take no counter measure, will be the decimation of the US machine tool industry, and the rendering of our prospects for future growth, prosperity, and manufacturing competitiveness DOA.

High-volume bar machine

The Romi CNC 30 G features hydraulic collet chuck and automatic parts unloading, as well as "U" shaped cross-slide gang tooling with T slots for toolholder positioning. Interactive programming screens make the machine equally adept at mixed-volume, short-run production, as well as dedicated high-volume applications, says Romi Machine Tools, Ltd.

The machine occupies a 94.5" x 86.6" footprint. Other specifications include maximum bar capacities of 1.625" (round), 1.250" (hex) and 1" (square): a maximum bar length of 47.42"; and a maximum cutting length of 4.72". In addition, the bar machine is capable of rapid traverse rates of 630 ipm and 512 ipm for the respective XZ axes.

In addition to "T" slots for one cut-off toolholder, the ten-station, "'U" shaped cross slide gang tooling system features one mechanical bar puller with a built-in cut-off toolholder; two external turning toolholders; two boring bar holders; one double boring bar holder; and five reduction sleeves.

Potential benefits of using the machine, as cited by the company, are accelerated cycle times and reduced non-cut time.

Companies collaborate to offer on-machine inspection

Delcam and Renishaw have joined forces to offer On-Machine Verification to companies seeking to increase the productivity of their machine tools. Though this technology is advantageous for companies that do not currently have existing inspection capabilities, it is also beneficial to subcontractors that need to machine larger components.

Data for the process can be collected using Renishaw's spindle probes, such as the established MP 700 or the compact OMP 400. Neither of these probes needs to be calibrated in all the vectors in which they are to be used. This reduces the number of points required to measure a given part and therefore produces shorter verification cycle times.

PowerInspect can use the data to gage surface accuracy or to measure features, such as circles, cylinders, cones, spheres and planes. The capability to program complete verification sequences off-line means that there can be minimal interruption of the machining operations, says the manufacturer.

The technology can yield time savings by enabling the quality of the component being machined to be monitored at all stages in the manufacturing process. Therefore, errors can be detected earlier, and thus corrected more quickly. Similarly, the extent of any damage caused, example, by a tool breakage, can be assessed. The user can thus determine whether the part can still be completed within tolerance or if the part will have to be scrapped. If a part has to be transferred to a dedicated CMM and the inspection indicates any errors, then the component must be returned to the machine tool and re-clamped in position before being machined again. Time-consuming for any component, this process might require hours for a heavy item, such as a large aero structure or a press tool for an automotive body panel. In addition, the setup back onto the machine tool might result in a new series of errors in the component and lead to a further cycle of inspection and re-machining.

With On-Machine Verification, the part can be inspected prior to being moved. Errors can thus be detected and corrected before the component is transferred to the CMM for its final inspection. The capability to check that the part is reaching its specifications at the various stages of the manufacturing process will save time, reduce the amount of scrap and increase confidence that time is not being wasted working on components that are already too far out of tolerance, says the manufacturer

Mill-Turn Machine combines lathe and machining center

Barnant Company is offering a 24-channel engine exhaust gas scanner for monitoring gas, as well as oil/water temperatures and other critical parameters. The new gas scanner can be used to observe up to 24 Type J, K, T or E thermocouples to sense exhaust gas at various points. The ABS unit is configured for benchtop, control panel or wall, allowing sequential or selective monitoring of all probes. With accuracy of [+ or -] 0.1 percent, this reliable gas scanner is equipped with RS-232C for out-put to a PC or data logger, selectable F[degrees] or C[degrees] settings, hi/lo set points with audible alarm, store/ recall of 2520 readings per channel, 10 second-to-hourly sequential scan capability, real time digital clock, non-volatile memory, full immunity to RF interference and a three-year warranty. The Integrated mill turn centers in NT Series provide full lathe and machining center capabilities in one package with DCG(TM) (Driven at Center of Gravity) technology, box-in-box construction, and turret with built-in milling motor. Machines contain B-axis that uses direct drive motor, and indexing specifications allow for input by units of 0.0001[degrees]. Max spindle speed is 5,000 rpm, max tool spindle speed is 12,000 rpm, and tool-to-tool change time is 1 sec.

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The full capabilities of a lathe and machining center are now available in one package

Irving, Texas, September 20, 2005 - Mori Seiki's new NT Series of integrated mill turn centers fully combines a lathe with a machining center. In designing the series, Mori Seiki completely rethought the design and construction of multitasking machines to harness the turning ability of a lathe and the cutting ability of a machining center.

The NT Series employs both DCG(TM) (Driven at the Center of Gravity) technology and the box-in-box construction of the NH Series horizontal machining centers, along with the turret with a built-in milling motor from the NL Series CNC lathes. The combination of these features is included with no compromises in terms of their performancestan Machines in the NT Series contain a B-axis that uses a DD (Direct Drive) motor, eliminating backlash and making high-speed rotation possible. Indexing specifications for the axis cater to high precision machining requirements, allowing for input by units of 0.0001 degrees.

To make the NT Series as efficient and productive as possible, special attention has been paid to machine speed. Maximum spindle speed is 5,000 rpm with a maximum tool spindle speed of 12,000 rpm. Additionally, the machines' ATC (Automatic Tool Changer) features a tool-to-tool change time of just 1 sec. and a chip-to-chip time of only 3.4 sec.

Special attention to thermal displacement allows machines in the NT Series to perform at the highest levels of accuracy and precision. The lower turret is located symmetrically in relation to the center of the spindle, forming a construction resistant to the effects of heat. Additionally, ball screw and motor jacket cooling have been implemented to completely eradicate inaccuracy caused by heat variations.

The NT Series will make use of MAPPS III, the latest iteration of Mori Seiki's highly successful control system. MAPPS III allows fast processing and is equipped with a collision prevention function that monitors machine movements in real time. The controls also take advantage of the ease and convenience of conversational input, providing high-speed canned cycles that lead to dramatic increases in programming speed.

The NT Series will contain 9 models, with spindle, lower turret and no center support options bringing the total number of variations to 66. Varieties of the machines will be brought to market sequentially.

Mori Seiki will host an Innovation Days event in early November at its Chicago Technical Center to formally introduce the new line to the North American market. Details on the event will be announced in late September.dard unit weighs only 4 lb

Spain, a reference point for the machine tool industry

Surging ahead of countries such as United Kingdom and France, Spain has consolidated its position as one of the world's leaders in the machine tool sector and also as a major industrial country.

The country ranks eighth among the world's main machine tool suppliers, and eighth in terms of export volume. Within the European Union it takes third place, after Germany and Italy.

Behind this significant data lies a long period of effort and initiative to reach such a position since the first mass-produced machine tool was manufactured in Spain in 1863. This is one historical aspect which illustrates the strong industrial tradition within the sector.

AFM, the Association representing the machine tool sector, was founded in 1946 and was one of the first Spanish entrepreneurial associations to become a member of an international professional organization when it joined the CECIMO (European Committee for Co-operation of the Machine Tool Industries).

With regard to the Machine Tool Industry in Spain, it should be said that over roughly the last seven years Spain has been one of the countries which has experienced the most growth in this sector, in proportion to the increasing size and importance of the main machine tool manufacturers. This rate of growth is in terms of both production volume and of exports Data gathered for the year 2002 show that Spain remains among the leading machine tool manufacturer countries.

How to pay for that new machine tool: innovative approaches to funding help shops and plants acquire the technology they need

In recent years, many machine shops have experienced a significant decline in sales; compression of margins; increased competition; exportation of machining and manufacturing demand; difficulty in obtaining working capital and acquisition financing resulting in operating losses; and an erosion in tangible net worth. Those shops that have remained profitable and experienced upward trends have several common characteristics: experienced and disciplined management, a diverse customer base, no significant customer concentrations, proper leverage and stringent cash flow management.

A challenge all equipment buyers experience is determining the best means to fund an equipment acquisition: cash/equity, a bank revolving line of credit or an equipment loan. Equipment financing is especially difficult during lean economic periods, when a prudent businessperson needs to monitor and forecast cash flow needs and availability to remain solvent.

All three acquisition payment methods entail both advantages and disadvantages. Cash purchasing is simple, requires no third party intervention and alleviates a buyer from future debt/rental payments--yet a cash purchase may adversely affect a company's solvency. Using a bank working line of credit availability is another simple funding method that requires no third party intervention. The bank line of credit financing method typically offers a competitive, variable rate loan, yet it may adversely affect a company's access to business flow interruptions and impact daily working capital requirements. Leasing has become the most common method of funding equipment needs

The Changing Equipment Finance Marketplace

The equipment finance marketplace has changed considerably in the last decade. As a result of consolidation, industry specialization and contraction of capital markets, machine tool buyers are left with fewer options to find financing sources in the traditional bank and finance marketplace. This has led to the growth of captive finance companies owned and operated by either a manufacturer or a distributor. Captive vendor finance companies provide finance products and services exclusively to their parent companies' customers. Most progressive manufacturers and some of the more prosperous distributors are providing equipment financing as an extension of their selling services in order to promote acquisition.

Captive vendor finance companies provide convenient, creative and alternative finance solutions to equipment buyers. These companies offer distinct advantages over banks, finance companies and brokers. They have an understanding of the industry and equipment, the intended use of the equipment, customer credit profiles and the specific customer equipment applications. Furthermore, captives are able to offer a variety or finance products tailored to meet specific customer needs.

Reviewing Options

Many different finance options are now available. These include a loan, capitol lease, finance lease, operating lease, off-balance sheet lease, tax lease, non-tax lease, promissory note/security agreement, skip payments, step-up or step-down payments, and many others. The variety or product options can often be confusing. To simplify the process, buyers should consider two financial concerns prior to selecting a finance product--tax appetite (the need for depreciation deductions to reduce actual tax paid) and cash flow.

If the buyer seeks the depreciation benefits of ownership, a non-tax lease, lease purchase, finance lease, loan or capital lease may be the product needed. Conversely, if the buyer has no tax appetite, prior or current losses, restrictive loan covenants regarding increased borrowing/leverage, or need for short-term utilization, then a tax lease, operating lease or off-balance sheet lease may be the product needed.

Once the lease product has been identified, the term and payment structure can be developed to meet the borrower's cash flow needs. Other features of the lease such as rate, down payments, balloon payments, deferrals, commencement terms, prepayment penalties and guarantees are then typically negotiated based on the customer's credit strength and specific needs.

In recent years, many machine shops have experienced a significant decline in sales; compression of margins; increased competition; exportation of machining and manufacturing demand; difficulty in obtaining working capital and acquisition financing resulting in operating losses; and an erosion in tangible net worth. Those shops that have remained profitable and experienced upward trends have several common characteristics: experienced and disciplined management, a diverse customer base, no significant customer concentrations, proper leverage and stringent cash flow management.

A challenge all equipment buyers experience is determining the best means to fund an equipment acquisition: cash/equity, a bank revolving line of credit or an equipment loan. Equipment financing is especially difficult during lean economic periods, when a prudent businessperson needs to monitor and forecast cash flow needs and availability to remain solvent.

All three acquisition payment methods entail both advantages and disadvantages. Cash purchasing is simple, requires no third party intervention and alleviates a buyer from future debt/rental payments--yet a cash purchase may adversely affect a company's solvency. Using a bank working line of credit availability is another simple funding method that requires no third party intervention. The bank line of credit financing method typically offers a competitive, variable rate loan, yet it may adversely affect a company's access to business flow interruptions and impact daily working capital requirements. Leasing has become the most common method of funding equipment needs

The Changing Equipment Finance Marketplace

The equipment finance marketplace has changed considerably in the last decade. As a result of consolidation, industry specialization and contraction of capital markets, machine tool buyers are left with fewer options to find financing sources in the traditional bank and finance marketplace. This has led to the growth of captive finance companies owned and operated by either a manufacturer or a distributor. Captive vendor finance companies provide finance products and services exclusively to their parent companies' customers. Most progressive manufacturers and some of the more prosperous distributors are providing equipment financing as an extension of their selling services in order to promote acquisition.

Captive vendor finance companies provide convenient, creative and alternative finance solutions to equipment buyers. These companies offer distinct advantages over banks, finance companies and brokers. They have an understanding of the industry and equipment, the intended use of the equipment, customer credit profiles and the specific customer equipment applications. Furthermore, captives are able to offer a variety or finance products tailored to meet specific customer needs.

Reviewing Options

Many different finance options are now available. These include a loan, capitol lease, finance lease, operating lease, off-balance sheet lease, tax lease, non-tax lease, promissory note/security agreement, skip payments, step-up or step-down payments, and many others. The variety or product options can often be confusing. To simplify the process, buyers should consider two financial concerns prior to selecting a finance product--tax appetite (the need for depreciation deductions to reduce actual tax paid) and cash flow.

If the buyer seeks the depreciation benefits of ownership, a non-tax lease, lease purchase, finance lease, loan or capital lease may be the product needed. Conversely, if the buyer has no tax appetite, prior or current losses, restrictive loan covenants regarding increased borrowing/leverage, or need for short-term utilization, then a tax lease, operating lease or off-balance sheet lease may be the product needed.

Once the lease product has been identified, the term and payment structure can be developed to meet the borrower's cash flow needs. Other features of the lease such as rate, down payments, balloon payments, deferrals, commencement terms, prepayment penalties and guarantees are then typically negotiated based on the customer's credit strength and specific needs.

Valid Machine Tool Setup for Helical Groove Machining

An investigation is reported on identifying valid machine tool setup conditions for grinding or milling of helical grooves using profiled disc-type cutting tools. When using existing analytical models to design cutter profiles for helical groove machining, it is often found that no valid solution can be found if the machine setup is not properly selected. In the present investigation, the criteria for obtaining a valid cutter profile are established and applied to finding the range of allowable setup conditions for both smooth workpiece profiles and profiles with one or more singular points. These results are illustrated using a CAD/CAM software package for helical groove machining.

Helical grooves for drill flutes, milling cutters, gears, screw mechanisms, and so on, are usually machined from cylindrical stock by grinding or milling using profiled disc-type cutters as illustrated in Figure I. During machining of the helical groove, the cutter rotates about its axis, Z^sub 2^, as the workpiece moves along and rotates about its axis, z. The combined motion of the cutter and workpiece generates the helical groove. Due to the nonrectilinear motion of the cutter along the helical cutting path, the cutter profile defined in the cutter axial section (section AA) in Figure 1 is different from the workpiece profile viewed in the same cross section. This makes it difficult to find either the cutter profile to generate a required shape of the helical groove or the helical groove shape generated by a given cutter profile. Furthermore, it is first necessary to specify the machine setup condition, which includes the separation distance, s, between the cutter and workpiece axes and the setting angle, α, as shown in Figure 1. Each machine setup can lead to a different solution for the required cutter or workpiece profile.

Historically, cutter profiles for helical grooves have been designed by graphical trial-and-error methods (Dudley and Poritsky 1943). To overcome the inherent inaccuracy of this approach, analytical methods were developed to design the required cutter profile or to find the helical groove. These methods can be divided into two classes. The first class is based on graphic reasoning (Friedman, Boleslavski, and Meister 1972; Kaldor and Messinger 1988; Veliko, Nankov, and Kirov 1998), which considers the trajectories of selected points on the cutter profile. The results are visually presented as the envelope of the trajectories in the workpiece transverse section. However, this method cannot be directly applied to finding the cutter profile to generate a desired nelical groove shape. The second class is based on the condition that there is a common normal vector at the points defining the line of contact betweeni the cutter and the helical groove surfaces during cutting (Agullo-Batlle, Cardona-foix, and Vinas-sanz 1985; Sheth and Malkin 1990; Ehmann 1990; King, Ehmann, and Lin 1996a, 1996b). After each contact point is found, the corresponding points on the cutter and helical groove profiles are mathematicalfy related to each other. While the desired cutter or workpiece profile is obtained directly, the application of this method is complicated by the need to calculate the derivative of the given profile.

When applying these methods, it is often found that no valid cutter profile can be obtained for a given machine setup and helical groove profile. In such cases, the machine setup must be adjusted to obtain a valid cutter profile (Agullo-Batlle, Cardona-foix, and Vinas-saiiz 1985). However, no general method has been presented on how to adjust the machine setup. Some ressarchers statistically related the machine setup to a critic al portion of the required helical groove profile, but this inevitably leads to some errors in the resulting profile (Ekambaram and Malkin 1993).

The present paper is concerned with selecting valid machine setup conditions for helical groove machining. Beginning with an analytical model for the cutter profile design, criteria for identifying valid machine setups for a given helical groove are analyzed. The mathematical model for machine setup is then further developed for profiles with singularities. These criteria and the mathematical model are then applied to finding the range of valid machine setup conditions. Some examples are presented to illustrate the method.

Taiwan Machine Tool Industry Enjoys High Growth In 2000 - Brief Article

The export-oriented machine tool industry of Taiwan revived substantially after undergoing several hardships in 1999. In 2000, the import and export value of Taiwan's machine tool industry recorded a sharp growth of 31.9 percent and 64.1 percent respectively, with exports reaching a record high of US$1.5 billion.

There are more than 300 suppliers that produce complete units, and 1000 venders if peripheral satellite factories are also included. Most of them are small- to medium-scale enterprises. Two-thirds are metal cutting machine makers, while the rest are metal forming machine makers. The major Taiwan-made machine tools include machining centers, CNC/non-CNC lathes, CNC/non-CNC milling machines, CNC/non-CNC grinding machines, drilling machines, CNC/non-CNC electric discharge machines (EDM), presses and shearing machines. The top ten export markets for Taiwan-made machine tools in 2000 in order of priority are Hong Kong (including China), the United States, Malaysia, Italy, Thailand, United Kingdom, Germany, Singapore, Japan, and the Netherlands.

As the foremost non-profit trade promotion organization in Taiwan, CETRA and its four representative offices in Chicago, New York, San Francisco and Miami have invested tremendous efforts in promoting Taiwan's machine tools in the United States. To increase bilateral trade opportunities, CETRA regularly offers American buyers and Taiwanese suppliers many trade-related activities in the United States that include the following:

Inviting buyers to visit TIMTOS (Taipei International Machine Tools Show)

Offering free trade inquiry services.

Setting up appointments for buyers before they visit Taiwan.

Holding seminars for Taiwanese exhibitors in Chicago's IMTS show.

Holding seminars on finance to solve financial problems and seek support from the government.

Supporting Taiwan makers to participate in machinery shows in the US.

Launching the Image Enhancement Plan to promote a value-added image of Taiwan-made machines.

The American market will no doubt still be one of the most important markets for Taiwan-made machine tools. To keep its competitiveness in the American market, Taiwan's machine tool industry has increased its investment and cooperated with research institutes in developing high speed, high precision automated products. To improve after-sales service and shorten delivery time, many companies have set up their own warehouses or offices in the United States. Taiwan's machine tool manufacturers are one of the major participants in international machine tool show, You can always find them in major machinery shows worldwide, such as IMTS in the United States, EMO in Europe, JIMTOF in Japan, CIMT in China, BI-MU in Italy, and FEIMAFE in Brazil

The United States ranks as the second largest market for exports of Taiwan's machine tools, in which major machine tools purchased by U.S. buyers are lathes, machining centers, milling machines, grinding machines, EDMs and presses. The total export value to the United States was US$273 million in 2000, with a 25.2 percent growth. In the same period, Taiwan also imported US$434 million worth of machine tools from the United States, of which most were used for semiconductor production.

Machine Tool Sales Jump Nearly 35%

Sales of US machine tools continued to rise in November with equipment purchases increasing 34.8% during the month compared to October sales, according to the latest figures available from the American Machine Tool Distributors' Association (AMTDA, Rockville, MD) and AMT-The Association for Manufacturing Technology (McLean, VA).

For November, US machine tool sales reached $210.25 million versus October sales of $156.02 million. The month's sales also were up 54.7% from the $135.94 million in sales reported in November 2002, but year-to-date sales of $1.796 billion declined 8.5% compared to the $1.964 billion for the same period in 2002. The data are based on the totals reported by companies participating in the USMTC program.

"The stars are aligned for a steady manufacturing recovery in 2004," according to Ralph J. Nappi, AMTDA president. "Economic data and anecdotal evidence indicate monetary and tax policy is having the impact many hoped for in the manufacturing community. But a fragile recovery it may be unless Congress makes a genuine effort at dealing with the increasing costs for business and consumers in areas like health care and frivolous litigation."

Regional sales showed increases during November in the Central (115.5%), Midwest (33.9%), and Northeast regions (23.3%), while sales declined in the West (-18.6%) and South regions (-12.9%) versus October sales. Year-to-date sales regionally rose in the South (5.1%) versus YTD 2002 sales, but fell in the West (-21.6%), Northeast (-18.7%), Central (-13.5%), and Midwest regions (-4.4%).

National Tool & Machine Co. Celebrates 75th Anniversary

National Tool & Machine Co., Inc., East St. Louis, Illinois, is celebrating its 75th anniversary.

The company produces a wide range of tools, jigs, fixtures, special machinery and offers general machine work and repair.

Founded in 1929, National Too & Machine has been owned by the same family and stayed in the same location throughout the 75 years.

Sylvester "Syl" Fontana Sr. started the company. In 1969, his son, "Syl" Jr., and brother, John L. Millick took over operations. In 1994, Millick retired and his son, John M. Millick joined Syl Jr. as a co-owner.

"We have always had a willingness to stay on the cutting of technology," stated Syl Fontana. "Combining the technology with lots of effort and an impeccable reputation and one can understand how we lasted 75 years."

An example of staying on the cutting edge of technology is the company's latest equipment acquisition, an OKUMA MX55VB 50 taper CNC vertical machining center with a full 4th axis.

Today, National Tool & Machine operates in a 7,000-sq.-ft. facility (expanded twice over the years) with 12 employees.

The company is divided into several departments including: a CNC department with five pieces of CNC equipment; a Quality Control department; a lathe department with three lathes; a grinding department with eight grinders; a milling department with eight mills; a drilling department with four drill presses; a sawing department with three saws and a welding/fabrication department with welders, presses and shears.

National Tool & Machine's equipment can handle milling jobs up to 20" x 25" x 48" and its lathes go up to 20" swing with four-foot centers.

The programming department utilizes Mastercam software.

The company focuses on small to medium sizedruns and works with virtually all metals and some plastics.

National Tool & Machine serves a wide range of industries within a 200-mile radius of the St. Louis area including: automotive; chemical; aircraft; railroad; medical equipment; appliances; hand tools and general industrial equipment.

"We serve the entire spectrum of manufacturing industries," noted John Millick. "Which is unusual in the marketplace today."

US machine tool consumption steady - Materials Outlook - Brief Article - Industry Overview

U.S. machine tool consumption totaled an estimated $186.93 million in October, virtually even with a revised $186.95 million the previous month but down 0.6 percent from $188.06 million in October 2001, according to a joint report by the American Machine Tool Distributors' Association, Rockville, Md., and the Association for Manufacturing Technology, McLean, Va. "Reports noting the current contraction of the manufacturing economy and excess production capacity for durable goods underscore the need for U.S. manufacturers to adapt to permanent systemic changes taking place," said AMTDA president Ralph J. Nappi. "No doubt, business will improve, but not to prior levels. We must recognize the playing field has changed and that value-added processes are increasingly more pivotal than the rigid product focus embraced in the past." Machine tool consumption in the first 10 months of 2002 totaled more than $1.72 billion, down 26.6 percent from nearly $2.35 billion in the same period last year.