Additive manufacturing system maker Stratasys, has acquired Solidscape for$38 million plus certain purchase price adjustments.
New Hampshire-based Solidscape is a manufacturer of 3D printers serving investment casting applications in the jewelry, medical, dental and industrial markets. The company’s technology produces patterns that are used to cast highly precise metal parts.
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EPA Chief Calls Natural Gas Production “A Good Thing”
The Daily Oklahoman (5/25, Casteel) reports EPA administratorLisa Jackson said she “favored natural gas production and said she didn’t know of any ‘proven case’in which hydraulic fracturing had affected drinking water” while before a House committee. She alsoadded that natural gas companies are cognizant of EPA’s fracking studies because the agency has soughtout their support. Additionally, “Jackson and an Interior Department official defended the Obamaadministration’s record in approving new leases and permits for offshore drilling in the year sincethe BP spill in the Gulf of Mexico. David Hayes, deputy Interior secretary, said production in the Gulfhad been essentially stable since the accident.” She reiterated that her agency will help residents inthe case that natural gas drilling will affect the state’s clean water.
Innovative Die Castings Wanted!
To be a winner in today’s economy, you must meet and even exceed expectations. In a competitive global market, customers take notice of the best. NADCA knows that competition improves the competitor. With its annual International Die Casting Design Competition, it recognizes and rewards the outstanding casting designs of the year. Each entry is judged on its design, quality, cost savings, ingenuity, innovation and industry-changing potential.
Entering and winning is one of the best ways to gain visibility with leading decision-makers. The competition is open to aluminum, magnesium and zinc die castings. Any number of castings may be entered. However a separate entry form is required for each casting or assembly of castings. In addition, the metal surface cannot be improved or concealed by tumbling, shot blasting, coating or other surface treatments.
Judging is conducted by an independent panel of experts from the die casting industry, with no ties to eligible companies. The four equally weighed criteria are ingenuity of casting/product design; overall quality; cost savings; and market-expanding potential.Winning castings will be displayed during the 2011 Die Casting Congress & Tabletop in Columbus, OH and winners will be honored during the Die Casting Design Luncheon.NADCA’s Die Casting Engineer Magazine,Website and the Design Website will also feature the winning castings.
This competition helps promote increased use of die castings by recognizing and publicizing outstanding designs. For more information on the 2011 International Die Casting Design Competition please visit, www.diecastingdesign.org/castings/competition or contact Alex Monroe at monroe@diecasting.org for more details.
NADCA’s 2011 Die Casting Shipment Report Provides Insight on Current and Future Shipping Data
NADCA’s 2011 Die Casting Shipment Report is now available. This report details the shipments, by alloy, of die castings in 2007 through 2010.It also includes a custom versus captive breakdown, and industry sales estimates. The report includes projections for shipments in 2011 and a forecast for 2012.
NADCA conducted its annual shipment survey of die casting operations in the United States and Canada in March, 2011. This survey is the fourth annual comprehensive attempt to gain industry trend data from as many die casting operations as possible.Over 150 aluminum die casters provided their data for 2010.Over 75 zinc die casters sent in their data and ten magnesium die casters provided shipment levels for 2010.The data was reviewed for consistency and calculations were made on the total shipment data for each type of metal (aluminum, zinc and magnesium.The report indicates that in 2010 there was a:
- 40% shipment increase of aluminum die castings
- 34% shipment increase of zinc die castings
- Slight drop in shipments of magnesium die castings
This report assists in providing the most current insight on the North American die casting industry while also enabling companies to forecast future shipments in specific markets and overall.The 2011 Die Casting Shipment Report is now available for the modest price of: $30 for Corporate Members, $45 for Individual Members and $60 for Non Members. Visit: http://www.diecasting.org/publications publication # 880-2 to download your copy today!
Bloomberg News (5/18, Kowalski) reports, “Manufacturers in the US have a more optimistic outlook for sales and spending in 2011 than they did at the end of last year, according to a survey by the Institute for Supply Management.” The survey found that “purchasing managers at US factories anticipate sales will grow 7.5 percent this year, up from a 5.6 percent December forecast.” Meanwhile, service providers lowered their anticipated sales increase from 3.4 percent in December to 2.1 percent. “Much of manufacturing has emerged from the economic downturn and is experiencing significant growth,” Norbert Ore, chairman of the group’s factory committee. He added, “The positive forecast for revenue growth and improved employment will drive the continuation of the recovery.” Reuters (5/18, Schnurr) also reports the story.
Stabenow, Peters Announce Bill To Boost Funding For More Efficient Cars
The Detroit Free Press (5/10, Snavely) reports Sen. Debbie Stabenow (D-MI) “said today she thinks legislation aimed at expanding the availability of federal grants for fuel-efficient technology has a good chance of adoption.” She and Rep. Gary Peters (D-MI) yesterday announced “legislation aimed at expanding the US Department of Energy’s Vehicle Technologies Program.” The bill would add “$300 million annually for five years to support the development of fuel-efficient technology for light vehicles and commercial trucks.” Peters also touted support for the bill from “unions, environmental groups and business groups such as the US Chamber of Commerce.”
The Detroit News (5/10, Priddle) reports, “The representatives introduced a similar bill last term, but it got caught in a Senate filibuster, despite bipartisan support in the House.”
Innovative Die Castings Wanted!
To be a winner in today’s economy, you must meet and even exceed expectations. In a competitive global market, customers take notice of the best. NADCA knows that competition improves the competitor. With its annual International Die Casting Design Competition, it recognizes and rewards the outstanding casting designs of the year. Each entry is judged on its design, quality, cost savings, ingenuity, innovation and industry-changing potential.
Entering and winning is one of the best ways to gain visibility with leading decision-makers. The competition is open to aluminum, magnesium and zinc die castings. Any number of castings may be entered. However a separate entry form is required for each casting or assembly of castings. In addition, the metal surface cannot be improved or concealed by tumbling, shot blasting, coating or other surface treatments.
Judging is conducted by an independent panel of experts from the die casting industry, with no ties to eligible companies. The four equally weighed criteria are ingenuity of casting/product design; overall quality; cost savings; and market-expanding potential.Winning castings will be displayed during the 2011 Die Casting Congress & Tabletop in Columbus, OH and winners will be honored during the Die Casting Design Luncheon.NADCA’s Die Casting Engineer Magazine,Website and the Design Website will also feature the winning castings.
This competition helps promote increased use of die castings by recognizing and publicizing outstanding designs. For more information on the 2011 International Die Casting Design Competition please visit, www.diecastingdesign.org/castings/competition or contact Alex Monroe at monroe@diecasting.org for more details.
NADCA’s 2011 Die Casting Shipment Report Provides Insight on Current and Future Shipping Data
NADCA’s 2011 Die Casting Shipment Report is now available. This report details the shipments, by alloy, of die castings in 2007 through 2010.It also includes a custom versus captive breakdown, and industry sales estimates. The report includes projections for shipments in 2011 and a forecast for 2012.
NADCA conducted its annual shipment survey of die casting operations in the United States and Canada in March, 2011. This survey is the fourth annual comprehensive attempt to gain industry trend data from as many die casting operations as possible.Over 150 aluminum die casters provided their data for 2010.Over 75 zinc die casters sent in their data and ten magnesium die casters provided shipment levels for 2010.The data was reviewed for consistency and calculations were made on the total shipment data for each type of metal (aluminum, zinc and magnesium.The report indicates that in 2010 there was a:
- 40% shipment increase of aluminum die castings
- 34% shipment increase of zinc die castings
- Slight drop in shipments of magnesium die castings
This report assists in providing the most current insight on the North American die casting industry while also enabling companies to forecast future shipments in specific markets and overall.The 2011 Die Casting Shipment Report is now available for the modest price of: $30 for Corporate Members, $45 for Individual Members and $60 for Non Members. Visit: http://www.diecasting.org/publications publication # 880-2 to download your copy today!
The AP (4/20) reports, “Harley-Davidson’s net income more than tripled during the first quarter, yet the US economy still weighed on sales at home and will continue to do so as the company retools its manufacturing operations.” Harley’s profit was nearly four times higher than it was this time last year, but it fell four cents-per-share short of analysts’ expectations. “The company reduced the low end of its estimate for motorcycle shipments this year, as a precaution, because of possible supply interruptions from the March 11 earthquake in Japan.” CEO Keith Wandell “pointed out continued growth worldwide ‘even as we continue to encounter some headwinds in the US related to the challenging macroeconomic conditions.'”
Manufacturing Experts Emphasize Importance Of Training
Tom Snyder, president of Ivy Tech Community College, and Steve Dwyer, president and CEO of Conexus Indiana, write in the Indianapolis Star (4/30) that while manufacturing remains a strong source of jobs in Indiana, the field is changing and becoming more technologically complex. As a result, “workers need more advanced skills to be tech-savvy problem-solvers who work on a team, not at an assembly line.” This kind of worker can be hard to find, and a large number of experienced professionals are reaching retirement age. However, “there’s a movement under way to address this issue and create a national system of ‘industry-approved’ credentials.” As a key example of this they noted the introduction of the AMERICA Works Act, which “would prioritize federal workforce training funding for programs that teach toward a nationally portable, industry-recognized credential, including those endorsed by the Manufacturing Institute, the educational arm of the National Association of Manufacturers.”
Innovative Die Castings Wanted!
To be a winner in today’s economy, you must meet and even exceed expectations. In a competitive global market, customers take notice of the best. NADCA knows that competition improves the competitor. With its annual International Die Casting Design Competition, it recognizes and rewards the outstanding casting designs of the year. Each entry is judged on its design, quality, cost savings, ingenuity, innovation and industry-changing potential.
Entering and winning is one of the best ways to gain visibility with leading decision-makers. The competition is open to aluminum, magnesium and zinc die castings. Any number of castings may be entered. However a separate entry form is required for each casting or assembly of castings. In addition, the metal surface cannot be improved or concealed by tumbling, shot blasting, coating or other surface treatments.
Judging is conducted by an independent panel of experts from the die casting industry, with no ties to eligible companies. The four equally weighed criteria are ingenuity of casting/product design; overall quality; cost savings; and market-expanding potential.Winning castings will be displayed during the 2011 Die Casting Congress & Tabletop in Columbus, OH and winners will be honored during the Die Casting Design Luncheon.NADCA’s Die Casting Engineer Magazine,Website and the Design Website will also feature the winning castings.
This competition helps promote increased use of die castings by recognizing and publicizing outstanding designs. For more information on the 2011 International Die Casting Design Competition please visit, www.diecastingdesign.org/castings/competition or contact Alex Monroe at monroe@diecasting.org for more details.
Chrysler Joins Other US Automakers In Reporting Quarterly Profit
The AP (5/3) reports that Chrysler has finally reported a profit, and its announcement of $116 million in first-quarter earnings marked “the first time in nearly seven years” that “Detroit’s car companies are all making money.” The last time Chrysler was in the black was in 2006; it declared bankruptcy in 2009 along with GM, which has since reported four profitable quarters. With its first-quarter earnings announcement, Ford has reported eight in a row. Consultant Van Conway called the news “kind of miraculous.” The AP attributes the success of the US automakers to a number of factors, including streamlined operations and lower costs, an improving economy, and also hardships faced by Japanese competitors stemming from recalls and supply chain issues created by the disasters in that country. “Conway said consumer confidence is improving, which will help car sales.”
The AP (4/20) reports Titan-Atlas Manufacturing, “a company that makes prefabricated homes, will start production this year of small wind turbines at its plant in North Charleston,” South Carolina. “The small turbines are installed on rooftops or poles and supplement other energy sources.” The AP notes, “The company also makes wind turbines in Canada.”
New Zinc.org Website Highlights Key Zinc Message
Zinc.org was re-launched this week with a new look and a new purpose – to redefine how IZA interacts with the world on the web.
The site explores the value of zinc in its main uses and highlights the industry’s social-responsibility and sustainable development activities.Other features include an expanded, searchable zinc resource center and the use of digital and social media to showcase the versatility and essentiality of zinc. In 2010, there were over 50,000 unique visitors to the zinc.org website.
A main focus while developing the new site was to broaden zinc’s connection with cyber-visitors of all ages and interests.“We want to engage our web visitors and also make it as easy as possible for them to explore the world of zinc online,” said Rob Putnam, IZA’s Director of Communications.
In addition to making the website more interactive and informative, much of the content developed for the site is mirrored in print and other digital media that can be readily adapted by IZA members and others to share the positive messages of zinc.
“Our new website illustrates well the many progressive programs the industry is undertaking and offers informative and positive messages about zinc to its visitors” said Stephen Wilkinson, IZA’s Executive Director.
While the new web site is a big step into zinc’s digital future, IZA will continue to roll out new features and additions, with even more enhancements planned ahead.We invite you to visit www.zinc.org.
Innovative Die Castings Wanted!
To be a winner in today’s economy, you must meet and even exceed expectations. In a competitive global market, customers take notice of the best. NADCA knows that competition improves the competitor. With its annual International Die Casting Design Competition, it recognizes and rewards the outstanding casting designs of the year. Each entry is judged on its design, quality, cost savings, ingenuity, innovation and industry-changing potential.
Entering and winning is one of the best ways to gain visibility with leading decision-makers. The competition is open to aluminum, magnesium and zinc die castings. Any number of castings may be entered. However a separate entry form is required for each casting or assembly of castings. In addition, the metal surface cannot be improved or concealed by tumbling, shot blasting, coating or other surface treatments.
Judging is conducted by an independent panel of experts from the die casting industry, with no ties to eligible companies. The four equally weighed criteria are ingenuity of casting/product design; overall quality; cost savings; and market-expanding potential.Winning castings will be displayed during the 2011 Die Casting Congress & Tabletop in Columbus, OH and winners will be honored during the Die Casting Design Luncheon.NADCA’s Die Casting Engineer Magazine,Website and the Design Website will also feature the winning castings.
This competition helps promote increased use of die castings by recognizing and publicizing outstanding designs. For more information on the 2011 International Die Casting Design Competition please visit, www.diecastingdesign.org/castings/competition or contact Alex Monroe at monroe@diecasting.org for more details.
The New York Times (4/2, A16, Navarro) reported, “A state law took effect on Friday requiring electronics manufacturers to make it free and convenient for New York residents to recycle their old or broken computers, television sets and gadgets.” Implementation of this law, designed in part “to make it simpler for consumers to prepare for 2015, when it will be illegal to throw electronics into the regular trash,” could take some time, officials say. “Environmental advocates and New York City officials say that manufacturers have gotten off to a slow start educating the public and posting information on their Web sites about how consumers should proceed.”
Automakers Seek To Balance Performance, Efficiency
Reuters (4/5) reports automakers are trying to balance performance goals with fuel economy as they design the next generation of pickup trucks, which will have to meet higher efficiency standards. One primary avenue to achieving these efficiency and performance goals is using better, but more expensive, materials in the vehicle’s construction. Battery technology is another means of meeting the corporate average fuel economy (CAFE) standards, but similarly creates additional costs in the vehicle’s production. The article explores some of the methods specific automakers are exploring to reach the new efficiency goals.
EVs Expected To Become Increasingly Important. McClatchy (4/5, Hall, Schoof) reports, “Interest in electric vehicles has ebbed and flowed with the price of oil over the last three decades, but something new is clearly afoot.” Evidence for that is the production of the Chevrolet Volt and Nissan Leaf as well as the establishing of related battery plants in the US. “The Energy Department estimates that there’ll be enough manufacturing capacity for 50,000 electric vehicle batteries by the end of 2011 and 500,000 by the end of 2014.” Eric Isaacs of the Argonne National Laboratory “said that China had no cost advantage in battery manufacturing.” It also notes the development of charging stations being made in the US with the support of federal stimulus funds.
Navistar Working On Engine Design To Reduce NOx Output. The New York Times (4/5, B1, Zeller, Mayersohn) reports, “From 2010 onward, all new truck engines must achieve tough, near-zero limits for NOx, a chief ingredient of smog. Virtually every truck maker besides Navistar chose to use an add-on system” that has been approved by the EPA, while Navistar chose “to invest hundreds of millions of dollars to refine an engine that produces minimal NOx in the first place,” as well as in lawsuits alleging the add-on systems fail to meet standards. It’s new engine “could be the simplest, most elegant solution to the vexing engineering problem of how to reduce smog created by diesel truck exhaust.” So far Navistar’s effort has resulted in its engines losing market share to “20.2 percent this year, down from 28.5 percent in 2009.”
The Chicago Tribune (3/13, Bergen) reported that “many employers, in Chicago and elsewhere, are hiring again, easing fears that the economic recovery will be jobless,” yet “wariness remains among observers who predict a long road back to fuller employment.” Moreover, employers report that they are “hiring in very specialized areas.” A Chicago-area construction firm, for example, is hiring “specifically in engineering and cold welding, but very slowly.” Another Chicago-area executive, Jim McShane of The McShane Cos. in Rosemont, said “he is blown away by the deluge of applicants. … ‘We advertised for a project engineer and had over 400 applicants … and many had five to 10 years of experience.” The Tribune added that Pimco strategist Tony Crescenzi predicted that “a ‘new normal’ will be felt in some key industries, notably housing and autos,” with employment levels below the highs of the pre-recession era.
US Auto Exports Increasing
USA Today (3/7, Woodyard) reports, “Whether it means hawking family-friendly Dodge Journeys in Europe or sporty Chevrolet Camaros in Asia, US auto exports from US- and foreign-owned plants are rising.” A “weaker dollar and the perception of higher quality in US-made vehicles are leading to hopes of more vehicle exports, although the figures pale compared with the number of vehicles imported into the US” More than “1.5 million new cars were exported last year, up 38% from 2009, Commerce Department data show. Last year’s automotive exports were valued at $36.7 billion.” After Canada and Mexico, “the next most popular export destinations in 2010 were Saudi Arabia, China and Germany.”
Learn Design Online!
The NADCA Education division has recently launched its new Online Education system. Online education and training offers students the convenience of taking courses anywhere and the ability to complete courses at their own pace.In addition, companies and individuals can save money on travel expenses and reduce time away from the office.
The following courses may be of particular interest to die casting designers:
Introduction to Die Casting – This course helps to familiarize students, designers, engineers and interested buyers with the die casting process. NADCA has prepared this course to review the basics of die casting. The course will provide specifications for various alloys, briefly explain the types of machines used to cast these alloys and information that compares the die casting process to other processes. $99.00
Product Design – This online course offers an understanding of what should be included in the die casting die design. The course begins with a tooling design philosophy and evolves into all the major systems that must be included in the die. This course is targeted to the die casting tool designer, engineer, toolmaker and others involved in the design, construction and use of die casting dies. $59.00
New courses are being added frequently. NADCA’s Online Education system allows students to leave the course and begin where they left off. Each full course concludes with an exam and can count towards certification.
For course descriptions or to register please visit: www.diecasting.org/education/online. For additional information on NADCA’s Education options please contact Melisa Twarog at 847-808-3161 or email: education@diecasting.org.
Under the headline “World factory input costs rising sharply,” Reuters (3/1, Cable, Yao) reported that manufacturers across the globe are struggling to come to grips with rising input costs and other inflationary pressures. “With the latest surge in commodity prices yet to fully feed through into consumer prices, inflation could well climb further in the next few months,” an expert with ING said. Regarding the situation in Asia, Reuters notes that Chinese manufacturing is down amidst inflation issues, while India is facing even larger inflationary pressures. “Manufacturers are facing ever steeper increases in input costs, reflecting the tightness of labor markets and rising material costs, which will continue to add upward pressure on output prices,” one expert said.
Boeing Learns Lessons From Dreamliner Outsourcing
The Los Angeles Times (2/16, Hiltzik) reports on the “costly lesson” Boeing has learned due to outsourcing on the Dreamliner. “The 787 has more foreign-made content – 30% – than any other Boeing plane, according to the Society of Professional Engineering Employees in Aerospace, the union representing Boeing engineers.” According to the article, there were “early” indications Boeing’s outsourcing would lead to difficulties in development. “Boeing executives now admit that the company’s aggressive outsourcing put it in partnership with suppliers that weren’t up to the job. They say Boeing didn’t recognize that sending so much work abroad would demand more intensive management from the home plant, not less.”
Learn Design Online!
The NADCA Education division has recently launched its new Online Education system. Online education and training offers students the convenience of taking courses anywhere and the ability to complete courses at their own pace.In addition, companies and individuals can save money on travel expenses and reduce time away from the office.
The following courses may be of particular interest to die casting designers:
Introduction to Die Casting – This course helps to familiarize students, designers, engineers and interested buyers with the die casting process. NADCA has prepared this course to review the basics of die casting. The course will provide specifications for various alloys, briefly explain the types of machines used to cast these alloys and information that compares the die casting process to other processes. $99.00
Product Design – This online course offers an understanding of what should be included in the die casting die design. The course begins with a tooling design philosophy and evolves into all the major systems that must be included in the die. This course is targeted to the die casting tool designer, engineer, toolmaker and others involved in the design, construction and use of die casting dies. $59.00
New courses are being added frequently. NADCA’s Online Education system allows students to leave the course and begin where they left off. Each full course concludes with an exam and can count towards certification.
For course descriptions or to register please visit: www.diecasting.org/education/online. For additional information on NADCA’s Education options please contact Melisa Twarog at 847-808-3161 or email: education@diecasting.org.
The common wisdom emerging from the national media frequently notes that the American economy has lost its ability to “make things”…that we lost most of our manufacturing capability to China and to Mexico.The common wisdom notes that we have simply become a nation of hamburger flippers, as well as a nation where we merely trade information with each other.
The common wisdom largely adds the U.S. to other formerly powerful nations on the scrap heap of history, a nation whose best days are behind us.The facts are a bit different.
Job Losses
There is no question that employment losses within the U.S. manufacturing sector over the past 30 years have been massive.We all know a neighbor, a friend, or family member who lost their job in manufacturing, particularly in the industrial Midwest.
Total U.S. manufacturing employment peaked in 1979 at 19.6 million people.That total has fallen consistently and painfully to 11.6 million now…a loss of eight million jobs…a loss of 40% of all manufacturing positions.
The common wisdom notes that most of these jobs left in search of less costly havens, initially Mexico and then China.This is certainly true for a share of the jobs.However, the most important factor leading to lesser employment was major gains in worker productivity…we simply make more goods with fewer bodies.While overall U.S. worker productivity gains have run just under 3.0% annually over the past 10 years, productivity gains in manufacturing have run 2-3 times higher.
U.S. Ranking
It might surprise you that the U.S. continues to lead the world in manufacturing output.We produce more than the Chinese, the Japanese, the Germans, etc.U.S. output exceeds that of China by 40%
It might surprise you that the U.S. share of global manufacturing output, at 20%-25%, is essentially the same as it was 40 years ago
It might surprise you that output per U.S. worker is three times what it was in 1980 and twice as high as it was in 1990
Making a Comeback?
U.S. manufacturing employment actually rose by 136,000 net new jobs during 2010, the first annual increase since 1997.Moreover, the weather-distorted January 2011 employment data saw an estimated jump of another 49,000 jobs, the largest monthly gain in 12 years.
Various estimates suggest that the American economy will add 300,000-350,000 net new manufacturing jobs this year, a rise of roughly 3.0%.Longer-term estimates suggest the manufacturing sector could add one million jobs over the next 4-5 years.Such a rise clearly won’t make up for the loss of two million manufacturing jobs in the Great Recession, but it helps.
U.S. manufacturers have largely thrown in the towel on lower cost, lower skill, lesser profit margin manufactured products such as toys and electronics.At the same time, U.S. manufacturers have moved aggressively toward more complex and expensive goods requiring specialized labor, including health care products, jet fighters, computer chips, and industrial machinery (The Associated Press).
Outsourcing of Jobs
American companies have continued the exodus of former American jobs to other less costly parts of the world, although the pace has slowed.The rationale has also changed somewhat.
Hundreds of American firms had sent production and jobs to China, with products then shipped back to the U.S. to be sold.The current environment finds more and more of that production sold within China, or within other Asian nations.This change is identical to that of major foreign automakers who build billion dollar facilities in various communities within the U.S., with the intent of selling those cars not back home, but within the U.S. market.
“Onshoring” of Jobs
One very favorable development within the U.S. manufacturing sector involves decisions by more and more American companies to bring back production and jobs previously sent to China, Mexico, and other low cost production locations.Companies such as Ford, General Electric, and dozens of others have seen the costs of operations, particularly wages, climb dramatically across China while shipping costs have surged.
Issues of shoddy products and the theft of intellectual property have blackened the eye of outsourcing.The reality of too many midnight telephone calls and frequent trips halfway around the world to deal with problems has also taken its toll.
Another painful reality faces companies within the U.S. and from around the world with an interest in setting up production in China.The unspoken but understood fact that a company must typically give up its most sensitive trade and technological secrets to the Chinese in order to get in the door, as one might expect, muddies the water as well.
Many foreign companies have set up shop in China, only to then see products nearly identical to their own soon marketed by Chinese competitors, at substantially lower prices.The laundry list above has provided solid incentive for additional onshoring of jobs in coming years.Drug cartel violence across Mexico has also led hundreds of American firms to reconsider doing business south of the border.
Similar issues are at play in the white collar world of back office operations and call centers, where the American job shift to India has drawn great concern.Sharply higher wage costs and higher levels of worker turnover (note:these people are working during their nights to handle our daytime phone calls) have also led to some jobs coming back home.The emerging issue of cloud computing will also impact white collar outsourcing decisions.
“Rural” Outsourcing
More American companies based in large metropolitan areas are taking advantage of “outsourcing” some of their business operations to rural American communities, especially those where a university might be located.The rationale?Access to talented people with lower wage and housing costs, similar operating hours, and a common language come to mind.
Down the Road
The U.S. still accounts for 40% of total world R&D spending.We lead the world in science and technology, although that lead is slipping, according to the Rand Corporation.
Despite more recent successes, major challenges remain.Millions of lost jobs will never return.At the same time, ninety percent of manufacturers report having difficulty in finding skilled production workers.In addition, a large share of the manufacturing workforce will retire sooner rather than later, with the average U.S. manufacturing worker being 50 years old (The Agurban).
Greater cooperation between local universities, community colleges, and high schools to provide quality training for local manufacturers remains a challenge largely unmet.Parents and educators need to promote a career in manufacturing as a highly desirable outcome for tens of thousands of new graduates.
Boeing Learns Lessons From Dreamliner Outsourcing
The Los Angeles Times (2/16, Hiltzik) reports on the “costly lesson” Boeing has learned due to outsourcing on the Dreamliner. “The 787 has more foreign-made content – 30% – than any other Boeing plane, according to the Society of Professional Engineering Employees in Aerospace, the union representing Boeing engineers.” According to the article, there were “early” indications Boeing’s outsourcing would lead to difficulties in development. “Boeing executives now admit that the company’s aggressive outsourcing put it in partnership with suppliers that weren’t up to the job. They say Boeing didn’t recognize that sending so much work abroad would demand more intensive management from the home plant, not less.”
The AP (2/3, Chapman) reports, “Whirlpool Corp.’s fourth-quarter earningsrose 80 percent, mostly because its costs fell and it enjoyed a tax benefit, but the world’s biggest appliancemaker said it is now raising prices to help deal with higher raw material costs.” Similar sentiments came fromElectrolux AB, which yesterday “reported that its fourth-quarter net income rose 2 percent.” The AP notes, “Likemany businesses, Whirlpool – which makes many brands of appliances, including its namesake, Maytag and KitchenAid- has been concerned about rising material costs for a while. The company said cost cuts, improved productivity,higher unit sales and lower incentive compensation all were offset in the fourth quarter by both higher materialscosts and lower selling prices.”
Bloomberg News (2/3, Kinnander) reports, “Electrolux AB, the world’s second- biggest appliance maker, forecast modest growth in North America and Europe this year, hindering the Swedish appliance maker’s prospects for raising prices to claw back higher costs.” The company “needs to push through price increases to customers to counter the extra expense of steel, copper and resins. While the company has expanded globally, it still derives about one-third of sales from North America. Raw-material inflation and lower prices deflated earnings in that markets in the fourth quarter, it said today.”
The Wall Street Journal (2/3, Hagerty, Grundberg, subscription required) reports that both Whirlpool and Electrolux may lose ground to Korean white goods manufactsurers, such as LG and Samsung. “The Korean manufacturers aren’t going along” with the higher prices, one analyst said. Meanwhile, “the costs for our most important raw materials continue to increase,” Electrolux CEO Keith McLoughlin is quoted as saying. “In addition to increased costs for steel, we also see considerable increases in resins and base metals. We have signed contracts for a significant part of this year’s raw material requirements.”
Higher Commodity Costs Could Squeeze Company Profits
Under the headline “Rising Costs Threaten Corporate Profits,”Reuters (1/26)reports increasing commodity costs are pushing on the margins for many big US companies that haveotherwise been making a comeback from the economic crisis. While commodity costs have not made animpact yet, analysts say that may change over the course of this year. “There’s no question thatcosts are going to rise; The question is whether or not they’ll be able to pass it through,” saidCLSA analyst Mark Connelly.
Analysis: Automakers race to trim weight, keep trucks brawny
(Reuters) – Major automakers are scrambling to strip hundreds of poundsoff future pickup trucks in an effort to meet new U.S. standards for fuel economy without sacrificing strengthor towing capability.
The new mandates take effect in 2016, giving automakers such as Ford and General Motors just one design cycle to make significant changes that will require costly steel substitutes including aluminum, new steel alloys and magnesium.
Automakers are faced with having to pass on those higher costs to consumers who have come to associate mass with performance.
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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 11, 2011) – Edward Lee,President of Molycor Gold Corp. (TSX VENTURE:MOR)(PINK SHEETS:MLYFF)(FRANKFURT:M1V) (“Molycor” or the “Company”)is pleased to report the Company has signed engagement contracts with James Sever, M.S., M.B.A., B.S, and RobertBrown, two renowned experts in the magnesium industry to assist the Company with the completion of the preliminaryeconomic assessment study for the Tami-Mosi magnesium project located near Ely, Nevada.
James Sever is president of Alpha Omega Engineering Incorporated with over 30 years of non-ferrous metals, chemical, industrial, operational and management experience. From 1989–1998, Mr. Sever was employed by Alcoa and Northwest Alloys Inc. at the Addy Magnesium operation located in Washington State. During this time, his responsibilities increased from Process Engineer to Quality Superintendant. Ultimately he became Technical Manager for production operations. His accomplishments at the Addy operation included doubling both the magnesium production and the reduction plant capacity without capital investment; reducing Repair & Maintenance costs by 8% on a plant wide basis; attaining and maintaining a Return on Assets of >16% over a 3 year period; resurrecting Team Management in the plant; setting safety records for every department managed; inventing a new style high efficiency condenser; implementing quality principles in controls and capability; implemented a tool used in a 6 sigma process control known as “SIPOC” (a model based on Suppliers, Inputs, Process, Outputs and Customers); an 8 step decision making system and a Statistical Process Control that included an Evolutionary Operation analysis system.
Robert Brown is president of Robert E. Brown and Associates, a wholly owned subsidiary of Magnesium Assistance Group Inc. and is professionally affiliated with the American Institute of Mining and Metallurgical Engineers. Mr. Brown has over fifty years of industry experience in both ferrous and non-ferrous materials that includes twenty years in the technical management areas of light metal foundries and reduction plants. He consults to major international magnesium companies to assist in evaluation, planning, process design, and marketing and troubleshoots new operations.
Mr. Brown is the publisher of “Magnesium Monthly Review” since 1971 and a contributing editor and columnist for “Light Metal Age” and the “Australian Journal of Mining” and has over 25 publications including one titled “Lloyd M. Pidgeon – Magnesium Pioneer” to which he personally met and interviewed Dr. Pidgeon, who was responsible for re-evaluating the original German work and reduced it to a practical and commercial production process. Mr. Brown served as Executive Secretary for the International Magnesium Association (IMA) for three years and participated in a panel of world experts for the IMA and has also provided numerous additional magnesium columns, articles and reviews for other world metals publications.
Over his fifty year career, Mr. Brown has held various positions throughout the various stages and departments of magnesium production and operations. One example was being the Director of Magnesium Operations for a 10,000 TPY silicothermic magnesium reduction plant in Selma, Alabama and being responsible for all magnesium production operations including: 1) Quarrying of dolomite ore; 2) Primary reduction of calcined dolomite; 3) Melting and casting all forms of primary magnesium and its alloys; 4) Supervised 200 employees through 3 department heads and 17 foremen. Other positions held during his career included: Chief Metallurgist; Plant Engineer; Project Manager; and Design Supervisor.These two men bring with them decades of experience and are a welcome addition to Molycor’s project development team.
About Magnesium:
Magnesium is a widely used industrial metal categorized by its light weight and the supply of which has undergone dramatic change. The production of the metal from source has almost ceased in Canada and the United States with only one company in Utah remaining. The Chinese now produce 7/8 of the world’s primary supply. The total world production is estimated at approximately 800,000 metric tonnes (2008 USGS). This distortion of the market has led to dumping charges and the incidence of an import duty in the United States; this dependence on virtually only one foreign source presents opportunity. The price of magnesium is currently US$3,300 a metric tonne or US$1.50 lb (Minor Metals). The metal has enjoyed a favorable price for decades and has reached US$6,000 a metric tonne in times of demand.
US Manufacturers Facing Steep Price Increases For Raw Materials
The Eau Claire (WI) Leader-Telegram (1/9) reported,”Blame it on a better economy, but manufacturers — both locally and nationally –are facing steep price increases for steel, copper and other raw materials.” PeterHoeft, president of Hoeft Builders, called the trend “very typical, especially forsteel,” explaining, “There are very few steel manufacturers domestically, and theycan set prices as demand dictates.” The article noted, “Increased metal prices translateinto higher costs for manufacturers and, ultimately, consumers. Wagner Cos., a Milwaukeemetal products manufacturer, anticipates a 5 to 8 percent steel price increase thiswinter and perhaps another 10 percent increase later in the year.” The company has”beefed up its steel inventories at lower prices” as a result.
New Items for Sale at the Die Casting Equipment & Supplies Exchange!!
Recently, NADCA launched its newest tool to help address the die castingindustry – The Die Casting Equipment &Supplies Exchange – where users can post items to sell and search items to buy, as well as placerequests for an item that you are looking for. The site is easy to use and acts as a type of classified”hub” for buying, selling, and requesting equipment and supplies. For only $10, your item can be listed -complete with description, image, and asking price.
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