Die-Tech Blog

Japanese Parts Shortage Halts General Motors Production

Mon, 21 Mar 2011 08:00:00 EST

DETROIT - A shortage of parts from Japan will force General Motors Co. to halt production at its pickup plant in Shreveport, La., next week, the company said Thursday.

It's the first time a U.S.-based automaker will stop production in North America over parts shortages caused by the earthquake and tsunami in Japan. Toyota Motor Co. and Subaru have already slowed North American production to conserve parts that they normally import from that nation.

GM makes two compact pickups at its Shreveport plant, the GMC Canyon and Chevrolet Colorado. Both use a five-speed manual transmission made by Japanese supplier Aisin Seiki Co, which has halted production in Japan and suspended overtime in North America.

GM's other North American plants haven't been affected so far.

GM said it will resume production as soon as possible. Meanwhile, the company has enough of the trucks in inventory that it would take more than two months to sell them all. The trucks could be at the plant, en route to showrooms or on dealer lots.

Ford Motor Co. and Chrysler Group LLC said their plants haven't been affected by shortages.

Japanese Disaster Is Stressing Global Supply Chain

Mon, 21 Mar 2011 08:00:00 EST

Tony Prophet, a senior vice president for operations at Hewlett-Packard, was awakened at 3:30 a.m. in California and was told that an earthquake and tsunami had struck Japan. Soon after, Mr. Prophet had set up a virtual "situation room," so managers in Japan, Taiwan and America could instantly share information.

At Hewlett-Packard, which builds computers in Tokyo, the disaster response has been described as "doing triage."

Mr. Prophet oversees all hardware purchasing for H.P.'s $65-billion-a-year global supply chain, which feeds its huge manufacturing engine. The company's factories churn out two personal computers a second, two printers a second and one data-center computer every 15 seconds.

While other H.P. staff members checked on the company's workers in Japan - none of whom were injured in the disaster - Mr. Prophet and his team scrambled to define the impact on the company's suppliers in Japan and, if necessary, to draft backup plans. "It's too early to tell, and we're not going to pretend to predict the outcome," Mr. Prophet said in an interview on Thursday. "It's like being in an emergency room, doing triage."

The emergency-room image speaks volumes. Modern global supply chains, experts say, mirror complex biological systems like the human body in many ways. They can be remarkably resilient and self-healing, yet at times quite vulnerable to some specific, seemingly small weakness - as if a tiny tear in a crucial artery were to cause someone to suffer heart failure.

Day in and day out, the global flow of goods routinely adapts to all kinds of glitches and setbacks. A supply breakdown in one factory in one country, for example, is quickly replaced by added shipments from suppliers elsewhere in the network. Sometimes, the problems span whole regions and require emergency action for days or weeks. When a volcano erupted in Iceland last spring, spewing ash across northern Europe and grounding air travel, supply-chain wizards were put to a test, juggling production and shipments worldwide to keep supplies flowing.

But the disaster in Japan, experts say, presents a first-of-its-kind challenge, even if much remains uncertain.

Libyan Air Strikes Drive Up Oil Prices

Mon, 21 Mar 2011 08:00:00 EST

LONDON-Crude-oil futures jumped after allied air strikes against Moammar Gadhafi's forces in Libya further escalated a conflict that has disrupted the country's oil exports for a month.

Meanwhile, protesters clashed with government forces in Yemen, Bahrain and Syria over the weekend, stoking fears that unrest would continue to spread throughout the Middle East and North Africa region, which is home to many of the world's biggest oil producers.

US Manufacturing Numero Uno

Mon, 07 Mar 2011 08:00:00 EST

The following post is provided by MANTEC.

The United States is the number one manufacturing nation in the world! According to the United Nations report, U.S. manufacturers produced $1.7 trillion in goods in 2009, 40% more than China. A lot has changed in manufacturing since employment peaked at 19.6 million in 1979. Market shifts mean that manufacturers, particularly small and mid-sized firms, are facing new, significant challenges.

The Next Generation Manufacturing Strategies (NGMS) address the market shifts for profitable manufacturing growth. To be competitively positioned to capitalize on the opportunities available in the dynamic markets of today and tomorrow- to not just survive, but to grow and thrive- U.S. manufacturers must address six key critical areas in concert: Continuous Improvement, International Trade, Supplier Development, Sustainability, Technology Acceleration and Workforce.

Sure, it is not a completely rosy picture; however there are many bright spots. Last year 136,000 manufacturing jobs were added- the first net increase since 1997. U.S. manufacturers are focusing on complex and expensive goods where China excels at products with low profit margins.

Many manufacturers have utilized the six NGMS. Continuous Improvement (aka- LEAN) is probably the most widely known method to remain competitive. Continuous Improvement enhances productivity and frees up the capacity that will provide manufacturers a stable foundation to pursue innovation and growth. All employers know they need a strong, engaged and skilled workforce in all levels of the organization. Workforce development will be a key element in a manufacturer’s growth.

Many more opportunities exist with the additional NGMS. International Trade should not be ignored in a strategic, market and sales development plan. It is a world market and capitalizing on opportunities is important. Supplier Development focuses on the competitive position using an efficient supply base and identifying innovative process and products.

Sustainability is a key driver as global demands for diminishing resource increase and renewable technology needs expand. Technology Acceleration leverages opportunities and solutions required to grow in the global marketplace.

Oil, Gold and Silver On The Rise... What Does It Mean For Manufacturers?

Tue, 01 Mar 2011 08:00:00 EST

Over the last few weeks I've heard rumors of $5 and $6 a gallon gasoline. Well I'll be honest, it's been a little bit more than a rumor.

Just last night, Glenn Beck, the popular conservative talk show host ranted for about an hour on the end of cheap oil and what it means to the American people. Of course Glenn did take a few breaks to talk about how the Middle East and Africa are going up in flames... but that's another story.

But getting back to the oil prices... Beck stated that for every dollar crude oil prices rise, we'll see a 2 cent rise at the pumps. Which when you say it like that it doesn't sound too bad. But to get to $5 and $6 a gallon gas, we would have to see quite a jump in crude oil prices.

As of this morning in York, PA, a mid grade gallon of gas cost $3.13. So to hit $5 a gallon we would be looking at an increase of $1.87 at the pumps. For that to happen we are looking for around a $94 dollar increase in the price of a barrel of crude oil.

Maybe it's time to get some oil futures?

But this isn't just about oil...

Commodity prices have been on the rise for several years now. Gold has been hitting record highs just about every other month for the last year or two. Silver is finally on the march.

Pretty much any commodity you look at on a price chart is on an upward tick. And of course the greatest barometer is that good old grocery bill!

So it's pretty apparent that we are in a full out bull market on commodities. But what does all this mean for manufacturers?

All throughout the media and in Manufacturing Economy Daily news updates I've seen nothing but sunshine and lollipops news about how the economy is on the rise and manufacturing is making a great comeback.

Sounds great... but I'm not buying it.

With $5 and $6 per gallon gas on the horizon, commodity prices are only going to continue to go in one direction and that's UP! It takes gas to cut timber, mine, grow food, and pretty much run our economy. We're so dependent on oil it's sickening.

Did I mention yet that our dollar is continuing to plummet and the Federal Reserve continues to print more of it? Don't believe me... go look at a 10 year US Dollar Index chart and tell me which way your dollar is headed.

So with soaring gas prices, food prices, health care costs, education costs, a devaluing dollar and consumer debt still pretty much out of control, I just don't see people buying lots of new toys, houses, cars or anything they really don't need.

What does this mean for manufacturing? Well, when consumers aren't consuming there isn't as much of a need for the products that manufacturers produce. Also the price of those products will continue to rise in effect driving the cost of goods in only one direction... UP!

So what should be taken from all of this? Basically, we're not even close to being out of the woods yet. And the last people I would take my economic and financial advice from would be the Federal Reserve and the media because they aren't exactly accurate at predicting the future of our economy.

As manufacturers, now is a time to proceed with caution. Just ask yourself, what would another year like 2007 do to your business?

What would that look like? Think about it for a second...

Not so good? Well a wise man sees what's coming and prepares. You either plan ahead or plan to fail. So what's your plan?

Senate Makes One Change To Healthcare Law, Rejects Repeal

Thu, 03 Feb 2011 08:00:00 EST

WASHINGTON – To hear Senate Republicans tell it, the defeat of their attempt to repeal the Democrats' health care overhaul was really a victory of sorts on the long march to the 2012 congressional and presidential elections.

The repeal effort sank Wednesday along party lines, 51-47, as expected. But in the process, Republicans forced Democrats on the record in favor of President Barack Obama's signature overhaul and launched what they described as a two-year effort to discredit it in the lead-up to a bid for a second term.

"These are the first steps in a long road that will culminate in 2012, whereby we will expose the flaws and the weaknesses in this legislation," said Texas Sen. John Cornyn, the party's campaign chief.

"We think this is just the beginning," said Republican leader Mitch McConnell. "This issue is still ahead of us."

What's certain is that Wednesday's vote changed nothing about the debate that consumed Congress for two years, dominated the midterm elections and has now moved to the courts.

Two federal judges have ruled the law is unconstitutional, partially or in its entirety, citing a requirement for individuals to purchase coverage and pay a penalty in taxes if they fail to do so. Two other judges have upheld the law.

The controversy is all but certain to be settled by the Supreme Court. Sen. Bill Nelson, D-Fla., announced he would file legislation urging the justices to act quickly.

In spite of the maneuvering and the side-taking, senators overwhelmingly voted to cancel the law's requirement that businesses, charities and state and local governments file income tax forms for every vendor that sells them more than $600 in goods. That repeal was approved 81-17 after Republicans pointed out it had originally been their idea. Obama said he would accept the change.

Toyota Narrowly Keeps Top Spot

Tue, 25 Jan 2011 08:00:00 EST

TOKYO (AP) — Toyota sold 8.42 million vehicles globally in 2010, narrowly remaining the world's top automaker ahead of General Motors amid recall woes in the key North American market.

GM also released a new tally Monday for its global 2010 sales, at 8.39 million vehicles, slightly fewer than Toyota's number, but a dramatic 12 percent rebound from 7.48 million vehicles the year before.

The race between the two giants appears to be getting close, with the chance the tables could be turned, seeing GM once again rising to the top.

"General Motors is going strong, and it's a sure sign of its re-emergence," said Yasuaki Iwamoto, auto analyst with Okasan Securities Co. in Tokyo.

Meanwhile, Toyota wasn't showing much growth in North America — and growing slower in China than GM — partly because it lacks the U.S. automaker's extensive model lineup such as large-size sedans, he said.

Toyota's global sales, including truckmaker Hino Motors Ltd. and Daihatsu Motor Co., which makes small cars, rose 8 percent from 2009, driven by solid sales growth in China and other Asian nations, the Japanese manufacturer said.

Toyota Motor Corp. dethroned General Motors as the world's No. 1 automaker in worldwide vehicle sales in 2008 — a position GM held for nearly eight decades. Since then, General Motors, now called General Motors Co., was bailed out by the U.S. government and underwent restructuring after a brief period in bankruptcy protection.

Industry Economist Optimistic About Recovery

Tue, 25 Jan 2011 08:00:00 EST

WASHINGTON AP — Industry economists say the U.S. economic recovery is gaining strength, with more firms expressing positive hiring plans than in over a decade.

A new survey from the National Association for Business Economics finds that economists are more hopeful about overall economic growth, the job market and demand for companies' products and services by many measures than they have been since the start of the Great Recession.

The survey found that business decisions are now "being driven by the fundamentals of an improving economy," said Shawn DuBravac, an economist with the Consumer Electronics Association who analyzed the findings.

The quarterly survey includes the views of 84 economists for private companies and trade groups who are NABE members. The data are reported by broad industry group. Many results are expressed as Net Rising Index, or NRI — the percentage of panelists reporting better outlooks minus the percentage whose outlook is bleaker.

The number of economists who saw hiring by their firms increasing over the next six months was 42 percent, compared with 7 percent who expected to lay off workers. The NRI of 35 was the highest in the 12 years that the question has been asked.

Culture Change Led To Success At Ford

Mon, 10 Jan 2011 08:00:00 EST

DEARBORN, Mich. (AP) — In every boom cycle of its 107-year life, Ford Motor Co. became complacent, unprepared for the inevitable bust in the auto business.

From the 1920s, when Ford lost its dominant position in the U.S. because it was slow to update the Model T, to the 2000s, when it squandered billions in SUV profits and narrowly avoided bankruptcy, the company stuck with some strategies too long and didn't pay enough attention to others.

"You often hear people at Ford say we can't manage prosperity. I think it's really quite different than that. It's that we stop changing," Executive Chairman Bill Ford told The Associated Press in a recent interview.

Now, coming off a great 2010, Executive Chairman Bill Ford and Alan Mulally, the man who replaced Ford as CEO four years ago, say they are ready to break that cycle. Mulally has transformed the company into a simpler, nimbler organization that's ready to react to change more quickly. Management experts aren't so sure.

Thanks to strong new products and stumbles at rivals like General Motors and Toyota, Ford saw the industry's biggest increases in market share. It had the best-selling vehicle — the F-Series pickup — and ended 2010 with its second straight annual profit. Ford's U.S. sales rose 20 percent, almost double the industrywide increase.

$4 Gas On The Way?

Thu, 06 Jan 2011 08:00:00 EST

Three dollars a gallon for gasoline may start to sound good by comparison this summer. With rising global demand for oil, gas could reach $4 a gallon in the coming months in some states, according to fuel forecasters.

That means flying, shipping a package and ordering a pizza could all grow more expensive as companies pass along their higher energy costs. Over time, those higher fuel prices will work their way into almost all consumer goods, from groceries to clothing, as items travel by truck, train or plane before reaching the store.

For a few months, the price will likely stay stable or drop a bit from $3 per gallon as people come off their longer holiday trips and hunker down in the winter, said Jessica Brady, spokeswoman for AAA in Tampa. "Once we hit spring," she added, "you'll see those prices for crude oil and retail gas prices go up."

Average gas prices in Florida have been rising in recent weeks, topping $3 for regular last month. The state tends to hover right around the national average, Brady said. But with a relatively weak U.S. dollar, the relative price of crude oil is higher.

Gasoline expert Fred Rozell predicts that 15 states, including Alaska, Hawaii, Connecticut and Rhode Island, will see gasoline prices top $4 a gallon by Memorial Day.

Demystifying Die Protection

Tue, 04 Jan 2011 08:00:00 EST

Originally die protection was developed just to prevent damage to the tool and die during the operation of a stamping press. As sensor and controls technology knowledge has evolved and stampers knowledge of it has expanded, die protection technology has been expanded into other applications, such as increasing production rates and to perform quality assurance.

Technology is rapidly changing lives and how people live. Most days they leave the house and go to work without noticing that anything differs that day from the day before or even the week before. But every day the world changes. It may be gradual and subtle, but change is constant and unstoppable.

One of the best examples of this is the evolution of cell phones. These days everyone has a cell phone and many people have more than one.

The first hand-held phones on the market were bulky and had a short battery life. Service was restricted to major cities and highways. Cell phones evolved and now can be used as movie cameras, to access the Internet, send text messages, do daily planning, alert with alarms—and the list goes on and on.

The point is that as dependence on electronic technology increases, stampers must stay current and use the technology that is available.

Questions to Ask About Die Protection

In considering how technology may improve your operations, you may start by asking some questions. The first question to ask is, what is the industry standard? In other words, what is the competition doing? The answer is likely that they are using die protection.

The second question to ask might be, what can I do that other stampers cannot? Some stampers can perform 100 percent inspection on critical dimensions. By doing so, they can set control limits to detect when a process is starting to go out of control before they produce bad parts, thus eliminating defective parts and the need for rework. With vision systems becoming more user-friendly, many progressive stampers are integrating cameras into their stamping processes to gain even more of a competitive edge over their competition.

Like almost everything else, embracing new technology starts with becoming familiar with the basics. Die protection is no different.

So, what is die protection? Originally die protection was developed just to prevent damage to the tool and die during the operation of a stamping press. As sensor and controls technology has evolved and stampers’ knowledge of it has increased, die protection technology has been expanded into other applications, such as raising production rates and performing quality assurance.

In some cases, die protection technology has allowed die builders to create very intricate dies that were impractical to manufacture before because they were vulnerable to die crashes. As a result, some of the more intricate dies allow stampers to form components in one stage that would have required two or more operations, thereby eliminating some secondary operations.

So what comprises die protection? Die protection has two main components: sensors and controls. Sensors are the “eyes” of the die protection system; they detect what is going on in the die. Controls can be described as the brains of die protection.

The rest of the article can be read at TheFabricator.com.

Tokyo Steel To Raise Steel Prices 10%

Tue, 21 Dec 2010 08:00:00 EST

TOKYO, Dec 20 (Reuters) - Tokyo Steel Manufacturing Company said on Monday it will raise prices of all its steel products by around 10 percent or 6,000-8,000 yen ($71-95) per tonne to offset the higher cost of scrap, its major input.

Tokyo Steel, Japan's biggest construction steel maker, said it will raise H-beam prices by 12 percent or 8,000 yen per tonne to 75,000 yen in January, and that of checkered H-beam steel by the same amount to 85,000 yen.

Hot coil prices will also rise 8,000 yen, to 67,000 yen.

"While the demand outlook is still uncertain only raw materials costs are going up," Naoto Ohori, managing director of Tokyo Steel, told a news conference.

"The higher raw material costs are pushing up our costs."

It will be the firm's first across-the-board price rise in five months.

Rival Nippon Steel Corporation, the world's fourth-biggest steel maker, this month notified distributors of a price rise of 4 percent, or 3,000 yen per tonne, for H-beam steel, citing higher raw material costs and a decline in inventories to a record low level, according to media reports.

Manufacturing in Philadelphia Area Grows

Fri, 17 Dec 2010 08:00:00 EST

Manufacturing in the Philadelphia region expanded in December at the fastest pace since April 2005 as orders and the factory workweek increased.

The Federal Reserve Bank of Philadelphia’s general economic index unexpectedly rose to 24.3 from 22.5 last month. The gauge was forecast to decrease to 15, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

Growth in China and other emerging economies, corporate purchases of new equipment and stronger consumer spending are bolstering production. Manufacturing may keep powering an economic recovery that Fed policy makers this week said has been slow to create jobs.

Congress Sends $801 Billion Tax Cut Bill to Obama

Fri, 17 Dec 2010 08:00:00 EST

WASHINGTON — Congress at midnight Thursday approved an $801 billion package of tax cuts and $57 billion for extended unemployment insurance. The vote sealed the first major deal between President Obama and Congressional Republicans as Democrats put aside their objections and bowed to the realignment of power brought about by their crushing election losses.

The bipartisan support for the tax deal also underscored the urgency felt by the administration and by lawmakers in both parties to prop up the still-struggling economy and to prevent an across-the-board tax increase that was set to occur if the rates enacted under President George W. Bush had expired, as scheduled, at the end of the month.

Administration officials said Mr. Obama would sign the package into law on Friday.

The final vote in the House was 277 to 148 after liberal Democrats failed in one last bid to change an estate-tax provision in the bill that they said was too generous to the wealthiest Americans and that the administration agreed to in a concession to Republicans. The amendment failed, 233 to 194.

Google Going Head to Head With Microsoft & Apple

Fri, 10 Dec 2010 08:00:00 EST

The first crop of computers powered by Google Inc's Chrome system will start selling in mid-2011 and come with free Verizon Wireless connections for two years, opening another front in its rivalry with Microsoft Corp and Apple Inc.

The new Chrome-based notebooks will come with 100 megabytes of free wireless data transfers per month for two years courtesy of Verizon, executives told reporters on Tuesday.

They are designed to promote Web-centric computing, in which consumers use online applications instead of downloading software to their PCs. To support that, the company started up on Tuesday a Web store selling some 500 games, news and other software appilcations

, carving out a bigger role in the next generation of Internet media and entertainment.

It seems that the wave of the future is definitely "cloud" computing. We already started to see that with Apple's MacBook Air. The MacBook Air comes with no CD/DVD drive (althought you can buy one separate) and with a 64GB or 128GB Solid State drive... which in hard drive terms isn't that big anymore considering I just purchased a new iMac with a 1TB drive.

Overall, I'm pretty excited because with all the app stores cropping up and digital versions for just about everything I could possibly want, I'll no longer need storage space and book shelves for books, CD's, DVD's, software, etc. And if everything is getting stored in the cloud... then I don't really need a hard drive either.

So what do you think about the "cloud" and how do you think it will affect your work environment?

Economic Recovery or Wishful Thinking?

Thu, 02 Dec 2010 08:00:00 EST

According to the following mainstream media sources, economic data seems to be pointing toward a broad-based recovery. Here's what some of them had to say:

The AP (12/2, Rugaber) reports, "The economy is showing new life in the final months of the year. ... The stock market had its best day since September after a report that the private sector hired the most workers in three years." US factory output "grew for the 16th straight month in November." The Institute for Supply Management "said its index of manufacturing activity came in at 56.6 for November," and "a new survey by the Federal Reserve finds that almost all of the nation -- 10 of its 12 regions -- is growing economically."

Bloomberg News (12/2, Willis, Homan) reports, "Stocks rallied across the globe after reports showed industrial strength extending to China and Europe, spurring orders at companies such as Dow Chemical Co. Holiday sales gains indicate factories stand to benefit further from a pickup in consumer spending that would allow the recovery to become more broad-based."

According to the Washington Post /Bloomberg (12/2, Zumbrun), "Five Fed banks, including Boston and San Francisco, said the economy grew 'at a slight to modest' rate, while five others, including New York and Chicago, reported a 'somewhat stronger pace of economic activity.' Conditions were reported as 'mixed' in the Philadelphia and St. Louis regions. The report, based on anecdotal information, signals an improvement in the economy after sluggish growth in the summer prompted the Fed last month to announce $600 billion in asset purchases to help cut unemployment persisting near 10 percent."

According to the Wall Street Journal (12/2, Dougherty, Lahart, subscription required), optimism on the outlook for the US economy is bolstered by new data showing that growth is being fueled by increased demand rather than federal stimulus spending.

Another Wall Street Journal article (12/2, Barkley, Sparshott, subscription required) notes that the Fed said, "Expectations for the holiday shopping season were generally positive, with several districts expecting higher sales when compared to year-ago levels." However, according to the Fed, "Employers are waiting for clearer signals of expanding business prospects before adding significantly to payrolls."

Overall, I think it's a little wishful thinking. We still have millions of Americans without jobs and many that are working are in positions that leave them highly uncompensated.

Also, the national debt continues to grow and the dollar continues to weaken. Gold and silver continue to climb as any shred of confidence investors had in our fiat currency is pretty much but a vapor.

But really, what is the definition of an "economic recovery"? If it's a simple as looking at a chart with some numbers going in one direction rather than another... then maybe we have a recovering economy.

Only time will tell but the economy is what it is and isn't turning into the BOOMING economy of the early 2000's anytime soon.

How Germany Got It Right On The Economy

Wed, 24 Nov 2010 08:00:00 EST

BERLIN

It may be turkey week in America, but it's goose month in Germany. In many restaurants, you can get goose in your salad and goose in your soup to go with your goose entree. Diners fairly honk their way through November.

But then, Germans have something to honk about. Germany's economy is the strongest in the world. Its trade balance - the value of its exports over its imports - is second only to China's, which is all the more remarkable since Germany is home to just 82 million people. Its 7.5 percent unemployment rate - two percentage points below ours - is lower than at any time since right after reunification. Growth is robust, and real wages are rising.

It's quite a turnabout for an economy that American and British bankers and economists derided for years as the sick man of Europe. German banks, they insisted, were too cautious and locally focused, while the German economy needed to slim down its manufacturing sector and beef up finance.

Wisely, the Germans declined the advice. Manufacturing still accounts for nearly a quarter of the German economy; it is just 11 percent of the British and U.S. economies (one reason the United States and Britain are struggling to boost their exports). Nor have German firms been slashing wages and off-shoring - the American way of keeping competitive - to maintain profits.

One key to Germany's miracle is the mittelstand, as the family-owned small and mid-size manufacturing firms that dominate the economy are known. Last week, I visited AWS Achslagerwerk, a factory of one such firm, in the farmlands of Saxony-Anhalt, about two hours west of Berlin. As in many such companies, this factory turns out specialized products: axle-box housings for Chinese and German high-speed trains, machine tools requiring climate-controlled precision measurement. With annual revenue of 24 million euros, the factory has won a significant share of the world market, though it employs only 175 production workers.

Quantitative Easing Explained

Mon, 15 Nov 2010 08:00:00 EST

I know this isn't directly related to metal stamping and tooling... but this economic policy affects all of us and every industry. Check it out and leave your comments below. Thanks!

Commodities Advance to 25-Month High

Thu, 11 Nov 2010 08:00:00 EST

Commodities extended a rally to a 25- month high as the global appetite for crops outpaced dwindling supplies, and precious metals surged on demand for a haven from slumping currencies.

The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose as much as 1.6 percent to 320.38, the highest level since Oct. 6, 2008. The gauge has jumped 21 percent since Aug. 31, led by cotton, sugar and silver.

Last week, the dollar slumped to the lowest level since December against a basket of major currencies on plans by the Federal Reserve to expand a U.S. stimulus program by buying more debt. The euro fell today amid debt woes in the region, sending gold to a record high. Soybeans and cotton climbed, partly on mounting demand in China.

"The fundamentals for most commodities are very strong, and the global currency situation, not just the dollar but also the yen and sterling and euro, are like pouring gasoline on a fire," said James Dailey, who manages $145 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania.

The CRB index rose 1.2 percent to settle at 319.11. The UBS Bloomberg Constant Maturity Commodity Index advanced 1.4 percent to 1,588.37. Earlier, the gauge of 26 prices reached 1,603.01, the highest level since June 17, 2008.

Raw sugar extended a rally to a 29-year high on concern that India may cap exports to boost domestic supplies after a smaller-than-expected cane harvest. Soybeans also gained.

After the close of regular trading, silver futures dropped from a 30-year high and gold declined after CME Group Inc.'s Comex unit raised margin requirements.

Manufacturers Lay Out Expectations For New Congress

Wed, 03 Nov 2010 08:00:00 EST

Corporate chieftains and small-business owners have compiled long wish lists for the wave of Republicans entering Congress, amid uncertainty about where a full roster of incoming conservatives stand on key business issues.

At the same time, business executives said Tuesday's Republican gains should change the Obama administration's approach to corporate America. Mr. Obama, who has signed a law to aid small businesses, meeting with Seattle entrepreneurs in August.

"Voters have resoundingly rejected more government spending, higher taxes, and more burdensome regulations that have caused crippling uncertainty for businesses," said U.S. Chamber of Commerce president Tom Donohue. The Chamber poured up $50 million into the campaign, 90% of it in support of Republican candidates.

Republicans took control of the House of Representatives Tuesday night, and narrowed the Democratic majority in the Senate.

Voters appear to be divided over what the new Congress should tackle first, according to exit polls. Cutting taxes was the top priority of 19% of those polled, while 36% of them preferred spending to create jobs and 39% wanted first to reduce the federal deficit, according to a National Election Pool exit poll conducted by Edison Research. Six percent of voters couldn't decide what they would like Congress to tackle first.

Obama administration officials and congressional Democratic leaders have called for an extension of the lower income tax rates for individuals earning less than $200,000 and couples earning less than $250,000. The tax rates for filers earning more would revert to pre-2001 levels, under Mr. Obama's plan.

Republicans say now isn't the right time to raise taxes on the wealthy, many of whom are business owners who they argue could use money they keep to create jobs.

Both Democrats and Republicans aimed political and policy messages at small business in the run-up to the vote. President Barack Obama and congressional Democrats pushed through a series of tax breaks and a $30 billion lending program that was the centerpiece of a Small Business Jobs Act Mr. Obama signed in September at a White House ceremony attended by supportive entrepreneurs.

Some business leaders worry that some of their priorities could be rejected by tea-party legislators, whose small-government stance was a key to their election.

10 Design Laws For Tool Designers

Wed, 03 Nov 2010 08:00:00 EST

Employers Getting More Bang For Their Buck In New Hires

Thu, 28 Oct 2010 08:00:00 EST

Employers seem to be getting more bang for their buck with their new hires in the "new economy". BMW is hiring and getting higher skilled workers for less money. This seems to be an industry wide trend.

Over the last two years, many highly skilled workers have been layed off and there haven't been as many jobs created that have been lost. Also, think of all the college graduates that have been pumped into the work force over the last few years... unable to find work in their desired field or profession.

Here's a piece from the Washington Post article:

This situation is creating a huge talent pool for manufacturing companies to hire from. Among the applicants at BMW: a former manager of a major distribution center for Target, a consultant who oversaw construction projects in four Western states; a supervisor at a plastics recycling firm. Some held college degrees and resumes in other fields where they made more money.

But they're all in the factory now making $15 an hour - about half of what the typical German autoworker makes.

The trade debate in the United States usually focuses on the jobs lost to factories in the developing world. But the recession has forced countless skilled workers in this country to consider jobs they would have rejected in the past. They now offer foreign manufacturers a resource that was far less common just a few years ago: cheaper wages for better talent.

"We are a low-wage country compared to Germany," said Kristin Dziczek, director of the Labor and Industry Group at the Center for Automotive Research. "And that helps put jobs here."

As employers, this is really a time of great opportunity. With all this talent available, and eager to work, now is the perfect time to take your team to the next level. Think of it in terms of professional football.

In the National Football League, you have 32 teams all trying to put the best team on the field either through the NFL Draft or Free Agency. But now, let's say 4 teams went out of business. So now all those players on those teams are free agents along with all the other players that contracts hav expired and have become free agents. Also, don't forget the draft class.

So now you have this rich talent pool to pull from. You can upgrade your offensive line, get highly touted wide receiver or maybe get that franchise quarterback you've been needing for the last decade. Really, the sky is the limit.

In the NFL they have a salary cap... but in business, it really just comes down to what you are willing to pay for the talent you want to acquire.

So in retrospect, this recession could really be a blessing in disguise for a lot of companies, IF they are taking the necessary steps to prepare their team for the upcoming season and seasons.

We NEED More Stimulus!

Thu, 21 Oct 2010 08:00:00 EST

Bloomberg News (10/21, Hays, Willis) reports, "Nobel Prize-winning economist Joseph Stiglitz said today the US needs more fiscal stimulus to aid the economy and that more unconventional monetary easing by the Federal Reserve would do little to spur the recovery." In an interview with Bloomberg Radio, Stiglitz said, "What we really need is a second round of stimulus. If you gave money to the states they would be able to keep those employees; those employees would then be able to spend money."

Is this guy really serious? What is with all these so-called economist? At this point, I have lost all respect for the Nobel Foundation.

My first point is this... you don't fix over spending and irresponsible fiscal policy by spending more money. Common sense (although it doesn't look to be very common anymore) would be to cut spending! Isn't that what any other family or business had to do to make it through the Great Recession?

Why does the government (Federal Reserve... which isn't Federal) and their economists feel that the only way to economic prosperity is to print more money? All this is doing is tanking the US dollar and making the super rich richer and the poor poorer. At this point I'd like to say that they are all a bunch of numbskulls.... but they know what they are doing. They are systematically tanking our currency.

Point number two... the Nobel Foundation gave President Obama the prize when he wasn't even in office yet for a year or whatever it was. So I'm sure he wasn't the "peacemaker" of the year. That was just plain goofy.

But now you want to give a Nobel prize to an economist that endorses economic policy that has actually caused and will continue to cause more financial unrest and stress on the people of this nation and the world? Something just doesn't make too much sense here... just who's agenda is the Nobel Foundation pushing?

My advice... get your gold and silver while you still can and at a good price. We're going to need it!

Overhauling Manufacturing's Image

Tue, 12 Oct 2010 08:00:00 EST

The public’s image of manufacturing still conjures up an ugly building with spewing smokestacks. Just ask anyone.

People’s attitude toward manufacturing turned positive for a time during World War II as U.S. manufacturing prowess emerged as a deciding factor in our winning the war. And the patriotic and positive image of Rosie the Riveter certainly didn’t hurt. But, in recent years, the industry’s reputation has not kept pace with the changes that have taken place.

There is no cookie-cutter mold for factories. They come in many sizes and types, from tiny operations in private apartments to Boeing’s Everett, WA, factory, the world’s largest building by volume, which sits on almost 100 acres. The factory has its own fire department and numerous coffee stands. Large aircraft require large assembly lines, or bays, and Everett appears to fill the bill.

The many types of factories and plants almost defy definition. Some are single-material plants, such as steel mills, while others have no material reference and instead house processes, such as packaging, or produce energy, or assemble small appliances.

Today, manufacturing is still factory-centered, but it is by no means factory-bound. Several developments and concepts have fundamentally changed the nature of manufacturing.

The first is the placement of manufacturing within the supply chain cycle. This chain, as we know, extends from suppliers, to customers, and back again, with the vital element of feedback and the subsequent opportunity to make corrections and additions to products and processes. Supply chains have grown from the supplier next door to global sourcing.

The second distinguishing feature of today’s factory is electronic control and scheduling, a change that has progressed from simple electrical connections, to MRP, to precise quality control and split-second timing and recording. I am talking about a communication and control network that reaches across the globe and has made the supply chain and logistics come alive.

To these I would add PLM and CAD, which confirm designs, from inception to engineering for manufacture, and help to bring out new technology to meet the demands of an ever larger, more impatient, and critical customer base. These technological advances help to widen the product spectrum and interlink the design and manufacturing process with sales and marketing.

Today’s factory is still bricks and mortar, but within that structure manufacturing comprises the three levels of manufacturing information, manufacturing communications, and manufacturing innovation, and all their interrelationships. So plants and factories come in more varieties than ever with far more complex management and in-depth quality control.

Clearly, there is a need for a giant promotional effort to redefine factories and manufacturing. At the present time, too many towns and cities, given a choice of new businesses to attract, would select a gambling casino, a sport’s arena, or a theme park. But manufacturing is an essential ingredient in fighting a recession. It is incumbent upon us to renew and revitalize its image.

Robert Malone, based in New York, is principal of

Robert Malone Associates and former editor-in-chief

of Managing Automation.

Young Workers Not Interested In Manufacturing Jobs

Fri, 08 Oct 2010 08:00:00 EST

According to recent research, a majority of younger workers think manufacturing is important to the country’s success and prosperity — but they don’t want to be the ones with manufacturing jobs.

While 55% of survey respondents ages 18-24 said manufacturing is important to the nation’s standard of living and economic prosperity, only 41% of them think careers in the sector are “interesting and rewarding,” according to Deloitte’s recent study, “Made in America? What the public thinks about manufacturing today.”

In fact, when given a list of seven industries, young workers said manufacturing offered the sixth most attractive career path, ahead of the retail industry, but behind sectors including technology, energy and health care.

But it’s not just young workers who are weary of manufacturing careers. The study also found:

Only 30% of parents would encourage their child to pursue a career in manufacturing
22% of respondents think the school system encourages students to pursue careers in manufacturing, and
A scant 18% said their parents encouraged them to pursue a career in manufacturing.

The study suggests that could lead to an even greater shortage in skilled workers. Even at the height of the recession, many companies suffered from a lack of skilled production workers, scientists and engineers.

And the study is quick to point out that as the global manufacturing industry gets more competitive and more companies adopt “lean” operations, production and front-line workers will be required to have extensive skills in team building and problem solving.

America Needs Policies That Unleash Free-market Forces

Thu, 30 Sep 2010 08:00:00 EST

In a blatant effort to bolster his Democratic Party's election prospects, House Majority Leader Steny H. Hoyer has touted a new manufacturing agenda for America. Mr.Hoyer's plan fails at the outset because our global competitors do not set manufacturing agendas year to year or election to election like we do. They plan for the next generation. If we are to compete and win, so must we.

I believe this strongly because, unlike my peers in Congress, I am not a politician, but a businessman. Before coming to Congress last year, I helped lead a manufacturing firm that produced automation components, such as the damper that enables your airline seat to recline or the precision assembly parts that likely produced your bluejeans. The shock absorbers at the end of the subway line under the U.S. Capitol bear our company's logo.

Though America is still the world's largest manufacturing economy ($1.72 trillion in 2009), the jobs picture tells a different story. In the past decade, nearly 6 million manufacturing jobs have been lost in the United States, with 272,000 of them in New York state.

The plain truth is that U.S. policy and policymakers bear much of the blame.

Our poor policy decisions start with taxes. At 39.21 percent, America's anti-competitive corporate tax rate is the world's second-highest, topped only by Japan's. While politicians in Washington bash American companies and workers who create value, our foreign competitors have beaten us to the pro-growth punch.

The average corporate rate for the 30 largest industrial economies has fallen from 37.6 percent in 1996 to 26.3 percent today. In a recent study of the research and development (R&D) incentives of eight leading Western economies, the United States finished dead last. Even France boasts a better R&D tax regime.

Meanwhile, we burden U.S. workers with a 39 percent corporate tax rate, fail to set a long-term R&D tax policy, and now Mr.Hoyer's Democrats are planning to increase capital gains and dividend taxes. This is no way to run tax policy.

Even with a competitive tax regime, the success of U.S. manufacturers still depends on U.S. brainpower. Yet U.S. universities take our best and brightest and produce an overabundance of personal-injury lawyers and Wall Street executives, not the engineers we need to compete. Our competitors are smarter about smarts. Sixty-three percent of Japan's undergraduate degrees are in engineering fields. China graduates 56 percent of its students in engineering. South Korea, 46 percent. The United States trails at 32 percent. We need to do better at the brain game.

Manufacturing Group Spent $1.11M In 2Q Lobbying

Mon, 20 Sep 2010 08:00:00 EST

SEATTLE — The National Association of Manufacturers spent $1.11 million lobbying the federal government during the second quarter, according to a recent disclosure report.

That's up slightly from the $1.05 million it spent lobbying in the same quarter of last year.

The organization, which represents manufacturers nationwide, lobbied on the federal budget, Congressional bills related to clean air and water, patent reform and intellectual property rights, smart energy grids and cap and trade initiatives, along with other issues in April through June.

The group lobbied the federal government on the Hiring Incentives to Restore Employment act, which gives tax benefits to employers who hire certain previously unemployed workers, and on the Jobs for Main Street act, which called for investment in infrastructure and hiring of teachers, police officers and other similar jobs.

The association also lobbied on specific political nominations, including those of Brian Hayes and Mark Pearce to the National Labor Relations Board, and Islam Siddiqi and Michael Punke for ambassador-level positions at the office of the U.S. Trade Representative. All four were confirmed in the roles.

In addition to Congress, the group lobbied the departments of state, labor, commerce and the Environmental Protection Agency, the Office of Management & Budget and other federal bodies, according to the document filed July 16 with the House Clerk's Office.

Gold Hits Record High

Mon, 20 Sep 2010 08:00:00 EST

Gold hit record highs for a fourth day on Monday as speculation the Federal Reserve may announce further moves to stimulate the U.S. economy after its policy meeting this week piqued interest in the precious metal.

Spot gold hit a record $1,283.25 an ounce and was bid at $1,281.20 an ounce at 1429 GMT (10:29 a.m. EDT), against $1,275.95 late in New York on Friday. U.S. gold futures for December delivery rose $5.40 percent to $1,282.90 an ounce.

Concern over U.S. economic growth has sparked talk that the Fed may signal a move toward further quantitative easing, which could potentially prove inflationary.

It has also raised expectations that interest rates will stay low, undermining the dollar and cutting the opportunity cost of holding non-interest bearing gold.

"All the stories stack up hugely in favor of gold currently," said Saxo Bank senior manager Ole Hansen. "A move higher to between $1,300-1,350 could be a good target toward year-end, but it will come in steps."

The precious metal is likely to consolidate for the time being, he said, as investors await fresh news on the outlook for the global economy, and on U.S. monetary policy.

To read the rest of the article go to FoxBusiness.com.

Skilled Labor Shortage Frustrates Employers

Wed, 15 Sep 2010 08:00:00 EST

(CBS) Job openings at businesses fell to 2.54 million in June from 2.6 million in May, meaning there is now five unemployed workers on average for every job opening.

There's a brighter spot in manufacturing, where some companies are looking for workers, CBS News Correspondent Cynthia Bowers reports.

On a quick tour of her family's factory, Linda Fillingham proudly shows off employees making the metal parts that go into some of America's biggest machines.

What's holding her machine shop back isn't a shortage of work. Instead, it's a shortage of workers, whom she's willing to pay $13 to $18 an hour.

"Thirty to 40 we could use right now," Fillingham said.

And she's not alone. The government says there are 227,000 open manufacturing jobs, more than double the number a year ago. One hundred eighty-three thousand have been created since December, the strongest seven-month streak in a decade.

Fillingham said it's hard to fill these jobs because they require people who are good at math, good with their hands and willing to work on a factory floor.

She's had to resort to paying people to learn on the job, like 25-year-old Matthew McDannel. The average manufacturing worker is more than twice his age.

"Maybe the work's too hard," said McDannel. "Maybe it's too hot. Maybe people just think about it and they're just, like, 'Oh, I don't want to do that.'"

By the year 2012 it's estimated this country will be three million skilled workers short, and it's not just in manufacturing sector. A recent survey found 22 percent of American businesses say they are ready to hire if they can find the right people.

"They're dipping their toes in the water, seeing if it's the right time to hire, but you also have potential employees doing the same thing and testing that employer to see if it's the right place for them," careerbuilder.com's Jason Ferrara said.

Fillingham hopes to convince a new generation that manufacturing jobs aren't a part of the past but instead the foundation of the future.

"You need to come up to bat and play the game if you want to be in it," said Fillingham. "It's there if you want to do it."

The Importance of the Daily Meeting

Thu, 09 Sep 2010 08:00:00 EST

By Kevin Meyer

Several lean blogs have coincidentally discussed the importance of the daily stand up accountability meeting over the last few days, so I wanted to add my voice in complete agreement.

Mark over at the Lean Blog wrote about the daily huddle from a hospital perspective.

The conversation quickly steered to the idea of starting each meeting, at any level, with a brief discussion of employee safety. As I thought back to my time in manufacturing — yes, that’s a very common practice in manufacturing settings, including those that aren’t using Lean methods. So my mind went back to how rarely I’ve seen that practiced in hospitals — why is that?

Jamie Flinchbaugh has a video blog on the subject.

Regardless of where you sit in the organizational hierarchy, daily huddles are a great tool for any team to create engagement, alignment, surface problems, and more.

Lee over at Daily Kaizen also had a post on the importance of a morning meeting.

As an organization transitions to a Lean management system many of existing structures and practices change. Teams and individuals begin to work together in new, more disciplined and more effective ways. One of the most important changes early on in the transformation is the requirement that team members participate in a Daily Huddle. Having a Daily Huddle is a simple change, but for teams and managers it a profound change.

All in the past two days. That should tell you something.

The daily stand up meeting is critically important, and it does change the culture. Traditional organizations wait a week or two between staff meetings to discuss issues, and by the time the meeting rolls around many subtle issues have been forgotten. Rigid agendas often prevent the surfacing and discussion of unplanned topics. Team members can go days without talking with each other.

A brief morning meeting done right creates collaboration, communication, and accountability to results.

To read the rest of the article visit EvolvingExcellence.com.

10 Questions Metal Stampers Should Be Prepared to Answer

Tue, 31 Aug 2010 08:00:00 EST

The following article is provided by ToolandDieing.com

I came across an interesting article which appears to be from the point of view of a metal stamping companies' customer:

Competition from offshore metal stamping and declines in demand due to the recession has wreaked havoc on domestic metal stamping suppliers in the last few years. With a declining base of financially solvent metal stampers, OEMs find themselves struggling to find suppliers who they can transition their business to quickly and efficiently.

Here are 10 questions you should ask in finding the right metal stamping supplier

1. Does the new metal stamping supplier have the tools available to serve me; press tonnage, capacity, and quality systems and standards?

2. Ask for samples of their capability including value added services such as welding, finishing, or assembly.

3. Does the supplier have experience in managing both domestic and offshore tooling sources? Ask for specific examples.

4. Is the metal stamping supplier financially sound? While their answer is important to hear, make sure to have a Standards and Poor Stability Rating Report in hand to validate their answer.

5. Tell me about the workforce from people on the floor to the engineers involved?

6. Will they work to improve my current total cost of manufacturability?

7. Can they demonstrate the ability to help improve inventory turns and cash flow?

8. Explain the importance of quality and repeatability to current needs; cost and output are highly affected by how precise each part must be. Can the supplier meet these requirements?

9. What are some R&D efforts done recently in terms of improving and sustaining the company- especially in the area of metal stamping? This question can be taken one step further to: Can the supplier partner with us on research and development projects?

10. Most importantly, can I tour the facility to see examples of in-process tools and parts produced?

To read more, visit ToolandDieing.com.

Chip Shortage Set Off By Recession Makes Smart Phones More Scarce

Mon, 23 Aug 2010 08:00:00 EST

NEW YORK (AP) — The seemingly recession-proof smart phone is suffering from a side effect of the rough economy: Manufacturers simply can't build enough of the gadgets because chip-makers that rolled back production last year are now scrambling to play catch-up.

The chip shortage means Apple Inc.'s rivals are having trouble making enough phones to compete with the iPhone, a problem expected to persist through the holidays. It's also affecting wireless carriers, some of which are seeing delays in improving their networks, and it could even raise computer prices.

There isn't an across-the-board shortage of chips, but rather problems with certain components here and there. If just one of the 20 to 30 critical chips that go into a smart phone is unavailable, the whole production line screeches to a halt.

Sprint Nextel Corp., for instance, couldn't satisfy demand for HTC Corp.'s EVO 4G, the first phone to use a faster "4G" network, in parts of the country. Motorola Inc. said shortages of a wide range of chips, from memory to camera sensors to touch-screen controllers, are contributing to problems supplying enough of the new Droid X phones to Verizon Wireless. The carrier's online store reports a two-week wait for shipping orders.

The chips that go into smart phones compete for production capacity with other chips at the gigantic factories run by contract manufacturers such as Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp. Makers of a vast array of electronics, from TVs to data center switches, also depend on the factories.

The chip-making industry had a tough start to 2009. February sales were only $14.2 billion, down 30 percent from the year before, according to the Semiconductor Industry Association.

Although sales sprang back later in the year, manufacturers were spooked and reined in investment in chip factories. Capital spending plunged 41 percent to $25.9 billion in 2009, after dropping 31 percent the year before, according to research firm Gartner Inc. Total chip production capacity shrank.

Now the factories are having trouble scaling up production fast enough. The chip factories, or "foundries," are running at 96 percent capacity, up from 56 percent at the depth of the recession, according to the SIA.

"The semiconductor guys are really continuing to operate on all cylinders," said Linley Gwennap, president of research firm The Linley Group.

Gartner predicts worldwide investment in the chip industry zooming 84 percent this year to $47.5 billion. That forecast is up from March, when it looked for a 56 percent increase.

While investment is recovering, it takes months to set up new production lines and upgrade existing ones. That's why executives see shortages lasting until next year. Gwennap also sees caution in the industry because the global economic recovery is starting to look quite tentative.

"Even where companies are facing shortages, they're saying 'Nah, I'm not sure I want to invest right now, because demand could turn down any minute.' That makes for a very difficult environment," he said. "In normal times, companies would be hiring, investing in more equipment and factories and trying to increase supply, but these aren't normal times."

Though consumers may have to wait for new phones, they're unlikely to notice price increases. Phone prices are heavily subsidized by carriers, and competition in the industry means it's likely someone in the supply chain will absorb higher prices for the chips.

However, research firm iSuppli warns that prices for PCs could rise this year because of short supplies of memory chips. The prices for these commodity chips are highly volatile. Smaller memory-chip manufacturers need to replace factory equipment, and tool suppliers are struggling to keep up, iSuppli said.

Makers of computer and phone networking equipment were the first to report problems this spring. They continue to face constraints, which means trouble for U.S. wireless carriers that are struggling to increase network capacity to cope with data traffic from the iPhone and other smart phones.

Alcatel-Lucent and LM Ericsson AB, the two largest makers of equipment for U.S. phone companies, have both reported problems making deliveries. They're both suppliers to AT&T Inc., which has complained that it can't beef up its wireless data network as fast as it would like, as it's trying to deal with traffic from the iPhone.

Computer networking giant Cisco Systems Inc. is also feeling the pinch and expects problems to continue through the year.

"We continue to see challenges in procurement of components this quarter," Cisco CEO John Chambers said recently. "Supplier lead times now appear to have stabilized, but are still longer than we would like."

Apple is an exception. Although the company can't keep the iPad and iPhone 4 in stock, it blames that on demand outstripping assembly line capacity, not on problems procuring the right chips.

That may be partly "dumb luck" on Apple's part, Gwennap said, but it could also be a case of it being "good to be the king."

"As a chip supplier, you're going to service your best customers first," he said. "If my choice is to try to make Apple happy or some smaller customer of mine, I might take all of my supply and give it to Apple."

Obama Signs Manufacturing Enhancement Act

Mon, 16 Aug 2010 08:00:00 EST

In 1980, around the time that globalization exploded and free trade agreements became more prevalent, the U.S. had 19.2 million manufacturing jobs. Since then, the sector’s total employment has fallen to just 11.6 million as jobs are outsourced to low-wage nations, like Mexico and China.

President Barack Obama on Wednesday signed into law a piece of legislation designed to ease costs for U.S. manufacturers by reducing tariffs on raw materials and other component parts not readily available in America.

The Manufacturing Enhancement Act of 2010 passed both houses of Congress with overwhelming bipartisan support. In the Senate, the bill passed unanimously with a roll call vote. In the lower chamber, only 43 lawmakers voted against the measure.

The president sought to portray the measure as part of his administration and congressional Democrats’ commitment to restoring the nation’s struggling manufacturing base.

Under the bill, U.S. manufacturers were forced to apply for a tariff reduction or suspension. The request was then reviewed by the Obama administration, two congressional committees and the U.S. International Trade Commission. If there was no domestic opposition, the relief was granted. However, the suspensions are only temporary and can be restored if an American business begins manufacturing a product covered under the bill.

According to the Congressional Budget Office, the measure would save U.S. companies $298 million over three years and reduce the federal deficit by $5 million over the next decade.

The bill will provide a badly needed boost to the nation’s manufacturing sector, according to The National Association of Manufacturers, which claims it will boost output by $4.6 billion and create 90,000 jobs.

China Surpasses Japan as World's No. 2 Economy

Mon, 16 Aug 2010 08:00:00 EST

Japan lost its place to China as the world's No. 2 economy in the second quarter, as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of 0.4 percent, the government said Monday, far below expectations of 2.3 percent growth in a Kyodo news agency survey.

The figures underscore China's emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its worldwide influence is growing.

China has surpassed Japan in quarterly GDP figures before, but its passing of Japan in the second quarter is likely to mark the period in which the lead became insurmountable.

China's economy will almost certainly be bigger than Japan's at the end of 2010 because of the big difference in each country's growth rates. China's economy is growing about 10 percent a year; Japan's is forecast to grow 3 percent this year.

Japan's nominal GDP, which is not adjusted for price and seasonal variations, was worth $1.286 trillion in the April-to-June quarter, compared with $1.335 trillion for China. The figures are converted into dollars based on an average exchange rate for the quarter.

iPad Leads to Innovation in Manufacturing Warehouse

Mon, 09 Aug 2010 08:00:00 EST

It’s a good bet that Steve Jobs and the folks at Apple haven’t yet cataloged the ways in which their new iPad device is being put to use in manufacturing circles. And good money says a lot of manufacturers probably don’t see the fast-selling tablet computer as anything more than a fancy distraction from weightier business matters.

But in Elkhart, IN, Tim Markley is already thinking about how he will use the iPad next. The president of Markley Enterprises, a manufacturer of sales and marketing support products, sees the Apple tablet computer as a way to make warehouse operations and supply chain execution more efficient. The company has already outfitted its swing-reach forklifts with iPads, a move Markley says has improved the put-away process. Now forklift operators, instead of jotting down notes with a pen and paper and then walking to a terminal to log put-away locations, simply tap their iPad screens to enter the data into the warehouse management system on the spot. The connection is facilitated by the SmartTurn WMS (now part of RedPrairie), which has been architected to work with the iPad. The operator’s input updates the WMS in real time, letting other workers see put-away locations immediately.

To measure the effects of this iPad-based automation, Markley outfitted operators with pedometers. So far, they’re taking 30% fewer steps to complete their tasks, he says. That may put a kink in the corporate fitness program, but it certainly boosts productivity.

Markley may be something of an outlier in a PC-dominated industry, having run his company on Mac computers for years and purchased “almost every Mac device ever made.” But he’s not the only one who sees industrial potential in a device that has been hailed mainly as a consumer play. In a recent research note, analysts at AMR Research/Gartner said that with “some enhancement,” the iPad could facilitate data integration from an enterprise system, such as MRP, ERP, or MES, to a more localized system, such as a database, machine tool control software, or order or warehouse management application. Although it will need help from application developers and others, the analysts wrote, “the iPad just might be a ‘game changer’ for manufacturing operations.”

Markley, for one, is just getting started. He plans to add iPads to the carts his workers use for picking. The administrator of the WMS will decide which orders to fill, output that plan to a spreadsheet, and e-mail a customized version to each iPad, using the device’s unique e-mail address. The picker will open the spreadsheet on the iPad and find his or her work instructions.

The process has been facilitated by the growth of cloud computing, according to Markley. The SmartTurn WMS software is cloud-based and platform-agnostic. As more businesses embrace cloud computing, he said, “all of your [applications] become platform-independent, because as long as you can access the Web, you’re there.”

Of course, the iPad’s durability will need some testing in industrial settings, but Markley says they are working without incident so far.

Manufacturers Concerned With Slowdown in Economic Recovery

Mon, 02 Aug 2010 08:00:00 EST

The latest economic report on gross domestic product (GDP) shows that the pace of our nation’s recovery has slowed to 2.4 percent from 3.7 percent in the first quarter. The slowdown is further evidence of the fragile state of the economy and the urgent need for policies that encourage job creation and competitiveness. The National Association of Manufacturers (NAM) today reiterated its call for Congress, candidates for office and opinion leaders to support and publicly endorse the NAM’s comprehensive Manufacturing Strategy.

Factors that contributed to the second-quarter slowdown included very modest growth in consumer spending and less support from inventories. The report also showed a surge in imports, highlighting the fierce competition that U.S. manufacturers face in selling products overseas and in our domestic market.

“We think this country needs a battle plan, which is why we released our comprehensive ‘Manufacturing Strategy for Jobs and a Competitive America’. There is a great deal of uncertainty in today’s business environment – from tax, trade and energy policy to health care reform and new regulations – and this uncertainty is hurting manufacturers’ ability to create jobs,” said NAM President and CEO John Engler. “The manufacturing sector has led the recovery to date and is crucial in our continued economic security and prosperity. To compete, we need to move forward with the comprehensive approach outlined in our Manufacturing Strategy. We can not afford new burdens and added cost.”

For the complete Manufacturing Strategy, please visit www.nam.org.

Dollar Trades Near Lowest Since November

Mon, 02 Aug 2010 08:00:00 EST

The dollar traded near its weakest since November against the yen on signs the U.S. recovery is losing momentum and after Former Federal Reserve Chairman Alan Greenspan said the slowdown feels like a “quasi recession.”

The Dollar Index was close to a three-month low before a report today that may show U.S. manufacturing growth slowed in July, adding to evidence the Fed will keep interest rates near zero. Australia’s dollar rose against 15 of its 16 most-traded counterparts as reports yesterday showed China’s manufacturing expanded for a 17th month and South Korea’s exports increased for a ninth month, boosting demand for higher-yielding assets.

“The U.S. economy is certainly losing some steam,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “We are seeing bond yields slide, dragging the U.S. dollar lower in tandem.”

The dollar traded at 86.49 yen at 9:07 a.m. in Tokyo from 86.47 yen in New York on July 30, when it reached 85.95 yen, the lowest level since Nov. 30. The U.S. currency was at $1.3056 per euro from $1.3052. Australia’s dollar rose 0.4 percent to 90.77 U.S. cents. The yen bought 112.92 per euro from 112.84 last week, when it touched 112.03, the strongest since July 23.

The yen fell against 15 of its 16 most-traded counterparts after Japanese Finance Minister Yoshihiko Noda said in Tokyo excessive currency movements are bad for the economy and he’s closely watching financial markets.

Supply Chain Woes Threaten Global Recovery

Mon, 02 Aug 2010 08:00:00 EST

Large industrial companies around the world are defying fears of a “double-dip” recession, reporting signs of increasing strength in demand and striking a cautiously optimistic note about the growth of the global economy.

Many industrial groups reported better-than-expected profits for the second quarter and raised their full-year growth forecasts. However, big manufacturers could be held back by their inability to secure vital components from supply chains weakened by the downturn and unable to increase production fast enough to meet demand.

Caterpillar, FedEx and Honeywell in the US, Honda and Hitachi in Japan, and Siemens in Europe all raised their outlooks last week, while results from companies such as Boeing, Nissan, BASF and VW exceeded analysts’ consensus forecasts.

Yet some suppliers to large industrial multinationals that cut costs sharply in the early part of the downturn are finding it hard to increase production capacity rapidly, while many report that financing remains expensive and difficult to access. Manufacturing supply chains in the US and Europe are showing signs of straining to cope with demand.

Tin Gains to Highest Level Since Lehman Failure in 2008

Tue, 27 Jul 2010 08:00:00 EST

Tin, the best performing industrial metal this year, climbed to the highest level since the collapse of Lehman Brothers Holdings Inc. in September 2008 as shrinking inventories signaled steady demand.

The metal for three-month delivery advanced as much as 2.1 percent to $19,800 a metric ton on the London Metal Exchange, and traded at $19,500 at 1 p.m. in Shanghai. That’s the highest intraday price since Sept. 3, 2008, before Lehman’s failure triggered a credit-market seizure and global recession.

LME inventories of the metal used in packaging, solder and cans have shrunk 43 percent this year to 15,370 tons, the lowest level since June 2009. A rally in equity markets, declines in the dollar and optimism that the economic recovery remains intact helped an index of London-traded metals to post the biggest weekly gain since February last week.

“The contractions in stockpiles underline improving demand against supply,” Ran Jun, an analyst at researcher Beijing Antaike Information Development Co., said today. Demand for tin products and electronics has recovered a lot from western countries this year, Ran said.

Exports of tin from Indonesia, the world’s largest producer, dropped 16 percent this year through May compared with the same period last year, Barclays Capital said on July 13. Outbound shipments fell 25.7 percent in June from a year ago, according to Indonesia’s trade ministry.

China Is Number 1... at Consuming Energy

Tue, 20 Jul 2010 08:00:00 EST

BEIJING (AFP) – China on Tuesday rejected an assessment from the International Energy Agency that it had surpassed the United States to become the world's top energy consumer, calling the data "unreliable".

The Financial Times and the Wall Street Journal cited a top IEA official as saying the Asian giant had taken over the top spot in 2009, earlier than expected.

According to the IEA, China consumed 2.252 billion tons of oil equivalent of energy in 2009, from sources that included coal, nuclear power, natural gas and hydroelectric power -- about four percent more than the United States.

But an official with China's National Energy Administration told reporters the report was flawed.

Toyota Settles Patent Dispute with Hybrid Technology Maker Paice

Tue, 20 Jul 2010 08:00:00 EST

NEW YORK (AP) — Toyota Motor Corp. said Monday it has settled a years-long dispute with a U.S. company that had claimed the Japanese automaker used its technology without permission in its hybrids. The deal ends a squabble that had briefly threatened to block the Prius from being sold in the U.S.

Toyota and Paice LLC said they have settled their patent dispute and agreed to have all lawsuits between them dismissed. The terms were confidential, the companies said. No financial details were disclosed.

"After six years of litigation, we are pleased to reach a settlement with Toyota," said Frances Keenan, chairman of the Paice board, in a statement.

Lean Proves Lucrative for Medical Device Manufacturer

Tue, 13 Jul 2010 08:00:00 EST

Thomas Medical has adopted a Lean approach to become one of the top medical device manufacturers in the Greater Philadelphia area.

EAST WHITELAND — Thomas Medical Products in the Great Valley Corporate Center has adopted a "pay it forward type of mentality" to help spread the benefits of lean manufacturing in the region.

"We had companies help us," said Peter J. Rapp, vice president of operations for the GE Healthcare company. Because of higher costs, U.S. manufacturers "need to have the right systems in place. Sharing best practices and learning from each other" is one way to do that.

In recognition of its efforts, the medical device maker was singled out by the Institute for World Class Manufacturing, the education and training program operated by the Delaware Valley Industrial Resource Center, for its "Journey to World Class Manufacturing Award" at the organization's recent annual dinner.

"They participate in helping other companies by sharing with them their processes," said Mark Basla, vice president of marketing and business development for DVIRC. "They're good enough and nice enough to be willing to share with plant tours, roundtables and seminars.

"There are a lot of companies like Thomas Medical here (in the Delaware Valley) that do that — share their time and resources for the benefit of other companies in the region."

Lean is a systematic approach to identifying and eliminating waste — non-value added activities — and creating value for the customer. DVIRC said the system "typifies the best in leadership, culture, strategy and operational excellence that defines advanced manufacturers today."

DVIRC has done more than 600 projects for companies ranging from very small, 30 employees, to large multi-plant global businesses working on three continents.

To read the entire article, click here.

Unemployment Report Indicates Sluggish Economic Recovery

Wed, 07 Jul 2010 08:00:00 EST

The loss of 125,000 jobs in June led broadcast network newscasts Friday evening, and gets significant and universally negative coverage on the wires and in this morning's newspapers. The CBS Evening News (7/2, lead story, 3:40, Pelley) called it "troubling news about jobs and the impact that's having on our economic recovery."

Though the unemployment rate "actually dropped from 9.7 percent to 9.5 percent," that is "partly because the labor force shrank by more than 650,000 people and when people stop looking for work, the government drops them from its unemployment count." CBS (Mason) said the numbers "suggest that the recovery, which only a few months ago appeared to be picking up speed, now seems to be sputtering."

The AP (7/3, Aversa, Rugaber) reports the private sector "added just 83,000 jobs for the month. Looked at from that angle or almost any other, from a teetering housing market to falling factory orders, the recovery is limping along as it enters the year's second half. And that is when the benefits of most of the government's stimulus spending will begin to wear off."

The loss "reflected the end of 225,000 temporary jobs" with the US Census Bureau. AFP (7/3, Beatty) says the White House "has warned that unemployment will remain high for the rest of the year, while polls show it is a crucial issue with voters."

McClatchy (7/3, Hall) reports, "Friday's mixed jobs report from the Labor Department was the latest in a series of signs that the US economy remains locked in a frustrating cycle of crippled growth that's better than the recent recession but not strong enough to boost employment much."

The Financial Times (7/3, Politi, subscription required) added that one of the few positives that can be gleaned from the report is that the unemployment rate declined from 9.7% in May to 9.5% in June, the lowest level since July 2009. Still, this decline is a result of the job market shrinking, meaning that more Americans remain waiting for the recession to get better.

Bloomberg News (7/3, Homan, Matthews) reports economists were predicting a 9.8 percent unemployment rate.

GM Seeks $5B Credit Line for Slowdown, to Repay Debt

Wed, 07 Jul 2010 08:00:00 EST

General Motors is seeking a line of credit of at least $5 billion from banks to enable it to repay debt and prepare for another decline in U.S. auto sales, said a person familiar with the talks.

GM had $23.3 billion of cash and about $14 billion of debt as of March 31, according to its first-quarter financial report. Although the automaker repaid the final $5.8 billion of government loans in April, the federal government still owns a 61% stake. A public stock offering, expected to begin later this year, would enable the government to sell at least some of its shares in GM.

GM's U.S. sales have risen 14% in the first half of this year from a year earlier. Its market share fell to 19.2% from 19.6%, despite shedding four brands -- Hummer, Pontiac, Saab and Saturn. In the first quarter, GM earned an $865-million profit.

The automaker is restructuring unprofitable European operations, but growing in China, Russia, India and Brazil, where most of the auto industry's growth is to occur in the next decade. GM sold more cars in China in the first half of 2010 (1.21 million) than in the U.S. (1.08 million).

It also has given stock valued at $6.66 million to 14 top managers, including $1.33 million worth to Chairman and CEO Ed Whitacre according to a filing with the Securities and Exchange Commission.

Seeking a new line of credit can prepare GM to operate without government assistance.

Copper on the Rebound as US Manufacturing Expands

Thu, 01 Jul 2010 08:00:00 EST

Bloomberg

Copper prices rose for the first time in three days after a report showed that U.S. manufacturing expanded for a ninth straight month, easing concern that the global economic recovery is faltering.

The Institute for Supply Management-Chicago Inc. said today its business barometer in June stood at 59.1. Figures greater than 50 signal growth. Commodity and equity market rallied after the report. This quarter, the metal fell 17 percent, the first drop since the end of 2008.

“Copper will be incredibly volatile in the coming months,” Spencer Patton, the chief investment officer of Steel Vine Investments in Chicago, said in an e-mail. “Global growth will be self-sustaining, but slower.”

Copper futures for September delivery rose 2 cents, or 0.7 percent, to $2.9505 a pound on the Comex in New York.

Earlier, futures fell as much as 2 percent. A report today showed that U.S. private-sector employers added fewer jobs than forecast. China’s benchmark stock index fell to a 14-month low on mounting concern that the nation’s expansion is easing. China and the U.S. are the world’s top metal buyers.

In June, copper declined 5 percent. Futures are down 12 percent this year.

“Copper’s drop is indicative of a significant downshift coming in the back half of this year for industrial growth,” said James Dailey, who manages $145 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania.

The price may fall to as low as $2.30 a pound by the end of the year, Dailey said.

Copper for delivery in three months rose $21, or 0.3 percent, to $6,515 a metric ton ($2.96 a pound) on the London Metal Exchange.

Aluminum, zinc, lead and nickel also climbed on the LME. Tin dropped.

The Pros and Cons of Globilization

Tue, 29 Jun 2010 08:00:00 EST

This is an excerpt from an article by Mike Collins on Manufacturing.net.

People around the globe are more connected to each other then ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent and international communication is commonplace.

Globalization is an economic tidal wave that is sweeping over the world. It can’t be stopped, and there will be winners and losers. But before drawing any conclusions on how it affects the U.S. economy, consider some of the general pros and cons of globalization.

The disadvantages of globalization

1. “The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. It is wonderful for managers and investors, but hell on workers and nature.”¹

2. Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages and poor living and working conditions), as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage.

3. Multinational corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization.

4. Opponents say globalization makes it easier for rich companies to act with less accountability. They also claim that countries’ individual cultures are becoming overpowered by Americanization.

5. Anti-globalists also claim that globalization is not working for the majority of the world. During the most recent period of rapid growth in global trade and investment, 1960 to 1998, inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources, while the poorest 80 percent consume just 14 percent.

6. Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of the globe.

7. Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking.

8. Social welfare schemes or “safety nets” are under great pressure in developed countries because of deficits and other economic ramifications of globalization.

The positive side of globalization

Globalization has a positive side as well. Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some deep-seated problems like unemployment and poverty. The marginal are getting a chance to exhibit in the world market.

Here are some other arguments for globalization:

1. The proponents of global free trade say that it promotes global economic growth, creates jobs, makes companies more competitive, and lowers prices for consumers. It also provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity creates the conditions in which democracy and respect for human rights may flourish.

2. According to libertarians, globalization will help us to raise the global economy only when the involved power blocks have mutual trust and respect for each other’s opinion. Globalization and democracy should go hand-in-hand. It should be pure business with no colonialist designs.

3. Now there is a worldwide market for companies and consumers to access products from different countries.

4. There is a world power that is being created gradually, instead of compartmentalized power sectors. Politics are merging and decisions that are being made are actually beneficial for people all over the world.

5 There is more influx of information between two countries.

6. There is cultural intermingling. Each country is learning more about other cultures.

7. Since we share financial interests, corporations and governments are trying to sort out ecological problems for each other.

8. Socially we have become more open and tolerant towards each other, and people who live in the other part of the world are not considered aliens.

9. Most people see speedy travel, mass communications and quick dissemination of information through the Internet as benefits of globalization.

To read the rest of the article, click here.

Let's here your comments below!

As Chinese Wages Rise, Automation Is Replacing Workers

Tue, 22 Jun 2010 08:00:00 EST

Bloomberg News (6/21, Lee) reported, "New minimum wage laws, a looser yuan and worker strikes like those at Honda Motor Co. are raising costs at factories in China's Pearl River Delta, prompting companies to increase automation of assembly lines." Manufacturers such as "Foxconn Technology Group, Nissan Motor Co.'s Chinese venture and VTech Holdings Ltd. said they are investing in factory equipment to reduce their reliance on labor.

Wages in the region called the world's factory floor increased 17 percent in the past six months," data indicate. An official with INFACT Global Partners said, "Factories need to think seriously about how they produce more with less," and "need to begin to enhance their productivity so that they are in a position to remain competitive."

To read the complete article click here.

7 Questions to Ask About Machine Safety

Tue, 22 Jun 2010 08:00:00 EST

Machinery is involved in one in four workplace deaths, according to the Industrial Accident Prevention Association (IAPA). To protect workers from hazards surrounding machinery, the IAPA urges supervisors to ask these questions:

1. Is the guarding in place and used properly?

2. Is the machinery in good repair and used properly?

3. Are lockout procedures clear and understandable?

4. Are workers trained before work starts on machines?

5. Are written job procedures available to workers and are they understood and followed by them?

6. Is required personal protective equipment (PPE) in good repair and used properly?

7. Are incidents and injuries investigated to find and eliminate the root cause?

If you answered "no" or were unsure about the answers to any questions, review your machine safety program immediately!

Tom Broudeau provided the "7 Questions to Ask About Machine Safety". What do you think about the 7 questions and are there more that you feel could be added?

Copper On the Rise as Dollar Slides

Wed, 16 Jun 2010 08:00:00 EST

It definietly seems that we are and have been in a bull market for metals. The price of gold, silver and also copper continue to rise as the dollar slides against the euro. Here's the latest news from the Washington Post...

Copper Rises for Sixth Day as Dollar Weakens
The Associated Press
Tuesday, June 15, 2010; 5:17 PM

NEW YORK -- Copper rose for a sixth session Tuesday as a weakening dollar sent investors in search of other assets seen as stable stores of value.

The dollar continued its slide against the euro as economic data suggests that a debt crisis may not be hurting European countries as much as previously thought. Industrial production in the 16 countries that use the euro grew more than forecast in April, easing concerns that mounting deficits could severely hamper economic output.

Strong industrial production around the world also boosts expectations for demand for copper, which is used in manufacturing.

Copper for July delivery rose 1.25 cents, or 0.42 percent, to settle at $3.0045 a pound. It was the first time copper ended above $3 since June 2.

"Fundamentally, we're still seeing physical demand for copper remain strong," said Catherine Virga, base metals analyst with CPM Group in New York.

The euro rose back above $1.23 for the first time since May 31, rising to $1.2337 in afternoon trading. The currency has been considered a strong indicator of confidence in Europe's economy and has often driven stocks and other risky assets like commodities lower in recent weeks.

The euro had been falling steadily since late April, pushing the dollar higher and commodities lower. Commodities are priced in dollars, so a stronger dollar makes them more expensive for foreign investors.

Other industrial metals also rose. Platinum for July delivery rose $14.60 to settle at $1,578 an ounce, while palladium for September delivery rose $12.95 to $475.55 an ounce.

In energy markets, benchmark crude for July delivery rose $1.82 to settle at $76.94 a barrel on the New York Mercantile Exchange.

In other Nymex trading in July contracts, heating oil rose 4.26 cents to settle at $2.0685 a gallon, and gasoline gained 4.51 cents to close at $2.1035 a gallon. Natural gas prices rose 18.3 cents to settle at $5.189 per 1,000 cubic feet.

Wheat for September delivery remained unchanged at $4.675 a bushel, while corn for July delivery remained unchanged $3.5375 a bushel. July soybeans fell 2 cents to $9.495 a bushel.

Gold rose as investors sought hedges against inflation. August gold rose $9.90 to settle at $1,234.40 an ounce.

Manufacturing Surging, Housing Suffering

Mon, 14 Jun 2010 08:00:00 EST

MarketWatch (6/13, Nutting) reported, "US manufacturing is on a tear, one of the few unambiguous positives in an economy that's still struggling to recover from the deepest downturn in generations. In some ways, this economic recovery fits the classic mold, as factories are running overtime to restock inventories depleted during the panic and to meet renewed demand for capital equipment and consumer goods."

This is "a familiar story of the business cycle: Excesses in production lead to excessive cutbacks, sowing the seeds for the eventual recovery." But "the missing piece this time, of course, is housing," which "after most recessions" has been "one of the main engines pulling the economy forward, as lower interest rates spur demand, which must be met by new construction. Not so this time around." Even with "the herculean efforts by the government...the sector is still severely out-of-balance."

The Pittsburgh Business Times (6/11, Hoover) reported a survey by McGladrey stated smaller manufacturers are not doing nearly as well as larger ones. The report found "Nearly one-third of manufacturers and distributors with $500 million or more in annual revenue" claimed that "their businesses were 'thriving and growing.' Only 19 percent of companies with less than $25 million in revenue said they were thriving."

Tom Murphy, executive VP of manufacturing and wholesale distribution for RSM McGladrey, said, "The improvement in business conditions for larger companies is directly related to increased order activity spurred by growing optimism over the economy." He added, "But we're seeing lower levels of inventory and spot shortages in the supply chain given that small and midsized companies remain so risk-averse following the recession."

Summaries provided by Nam.org.

8 Keys to Just in Time Production

Mon, 14 Jun 2010 08:00:00 EST

The 8 Keys to Just-In-Time production are:

1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production (establish freeze windows to prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end‑item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end item’s bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor.

2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one‑touch" setup ‑‑ this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crew’s efficiency is the result of a team effort using specialized equipment and a coordinated, well-rehearsed process.

3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries.

4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory.

5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns.

6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of “respect for people” contributes to a good relationship between workers and management.

7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used.

8. Small‑lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another.

To read the entire article and notes, click here. Thanks to Raymond Jacobs, Professor of Business Administration, Ashland University for providing the 8 keys.

Union Workers Reach New Labor Deal With Hershey

Mon, 07 Jun 2010 08:00:00 EST

Hershey Chocolate seems to be staying put as unionized workers approved a new labor deal. However, 500-600 workers could lose their jobs. Hershey says they are going to spend approximately $200 million dollars on upgrading their West Hershey plant.

Hershey Workers In Pa. Approve Labor Deal
By Marc Levy, Associated Press Writer
Manufacturing.Net - June 07, 2010

HERSHEY, Pa. (AP) -- Unionized workers at two Hershey Co. hometown chocolate plants on Friday overwhelming approved a labor deal that could eliminate hundreds of jobs and leave just administrative offices in the original factory built by founder Milton Hershey.

Union members approved the deal because of the candy maker's promise to expand and modernize its newer West Hershey plant across town and because of its threat to move the project and jobs elsewhere if the union rejected it, a union official said.

"I think the members thought it was the only way to ensure the plant would be built here instead of somewhere else in the United States," said Diane Carroll, secretary/treasurer of Chocolate Workers Local 464.

The vote was 1,317 to 95, meaning some workers slated to lose their jobs still voted yes because it would save someone else's job, Carroll said.

The company's board of directors still must approve the expansion plan, Hershey spokesman Kirk Saville said.

The Hershey Co., whose sweet treats include Almond Joy, Kit Kat, Milk Duds and Reese's peanut butter cups, could cut 500 to 600 jobs under the plan, which it says is necessary to remain competitive in a changing global market.

The 105-year-old plant, at 19 E. Chocolate Ave., has an unwieldy layout, low ceilings and narrow column spacing that make it inefficient and troublesome to upgrade, Saville said.

Union negotiators and company officials reached a tentative agreement on Tuesday after weeks of quiet negotiations.

The company has told union and state officials that it is willing to spend $200 million on the expansion, and it says the West Hershey factory would become one of the world's largest and most advanced chocolate plants, employing 1,100 people, up from about 500.

Pennsylvania Gov. Ed Rendell has said his administration is discussing financial incentives with Hershey officials in an effort to save jobs.

Are U.S. Manufacturers Gaining Ground on China?

Tue, 01 Jun 2010 08:00:00 EST

Does Chinese manufacturing still yield the benefits it has over the last decade? As the dollar weakened through the economic meltdown, manufacturing in China doesn't seem to make as much financial sense as it used to. Granted over the last few weeks, with the financial problems in Greece and the rest of the European Union, the dollar has been on the rise.

Over the last decade, many companies have gone over seas for their die building and stamping needs. Die building in China can save as much as 40-60% off the cost of tooling. However, quality can sometimes be compromised. The tools usually need to be debugged and reworked in the US unless you have a reliable engineer on foreign soil.

China has been a haven for cost efficient manufacturing work due to low labor costs. The New York Times (5/28, B1, Bradsher) reported that "a strike at a crucial parts factory has forced Honda to shut down all four of its joint venture assembly plants in China." All of the 1,900 workers at Honda's transmission factory in Foshan (100 miles northwest of Hong Kong) have been striking since May 21, according to Honda spokeswoman Yasuko Matsuura. As such, the "four assembly plants in China making Honda cars and light trucks have run out of transmissions, they have also had to shut down."

According to state-controlled Chinese media, workers at the a Honda transmission factory earn $150 to $220 a month and are demanding to be paid the same wages as Honda’s assembly plant workers, who earn $300 to $370 a month. With the advances in knowledge and communication, the Chinese work force is starting to figure out who's getting the short end of the stick on the low labor costs. It seems that the Chinese worker has had enough... and it's time for a change.

The New York Times (5/28, B1, Bradsher) reported that "a strike at a crucial parts factory has forced Honda to shut down all four of its joint venture assembly plants in China." All of the 1,900 workers at Honda's transmission factory in Foshan (100 miles northwest of Hong Kong) have been striking since May 21, according to Honda spokeswoman Yasuko Matsuura. As such, the "four assembly plants in China making Honda cars and light trucks have run out of transmissions, they have also had to shut down."

The Times notes, "Industrial wages have been climbing steeply in the export zones of China's coastal provinces, but workers' expectations have been rising even more steeply." Migrant workers are less likely to work at factories near the China's coast, preferring to find jobs closer to their home in China's interior, "and the resulting labor shortage has given workers new leverage to demand higher wages and better conditions."

So it seems that the Chinese workers are starting to take a stand... which is great news for manufacturers here in the states such as Die-Tech. As the cost of labor and price of doing business in China rises, it will make US manufacturers more competitive on a global scale. The number one factor in companies choosing a supplier is driven by cost. As the playing field levels for US manufacturers, we can be patiently optimistic that the changes taking place in China are for our benefit.

Of course, as the cost of doing business in China rises, some manufacturers will look to other low cost countries such as India and Vietnam. As with just about everything... people are always looking for the best price.

Ford to Invest $135 million into Electric Car Jobs and Development

Tue, 25 May 2010 08:00:00 EST

Are electric cars the wave of the future? Ford and Nissan seem to think so.

Ford Motor Co., working to make a quarter of its vehicles run at least partly on electricity, plans to invest $135 million and add 220 jobs at three Michigan facilities to help it introduce five such models by 2012. The automaker "has said it will begin selling two electric vehicles and three new hybrids by 2012 and that such models will constitute 10 percent to 25 percent of its worldwide fleet in a decade."

However, the Wall Street Journal (5/25, Naughton) notes it is estimated that the growth in fully electric vehicles market will not accelerate. A 2010 study by Deloitte Consulting concluded that these vehicles will constitute no more than 5% of the US market by the end of this decade, citing vehicle high costs and limited driving range.

The Wall Street Journal (5/25, B4, Ramsey) reports Nissan Motor Co. CEO Carlos Ghosn said the world market for electric vehicles is poised to surge, and if that happens automakers would be unprepared to support demand. The CEO said he is more worried about building more factories to meet the demand than about the $5.03 billion investment that Nissan and Renault SA have committed to the first versions of electric vehicles. Ghosn also noted he is optimistic about the rebound of the auto market in the US, and forecast that sales would get to 12 million vehicles in 2010, up 15% from last year.

I'm pretty optimistic that we'll see more electric and hybrid vehicles become available. However, when I was car shopping in 2006, I chose a regular gas engine vehicle. The reason I chose a regular gas vehicle is because unless I was going to drive a hybrid for 150,000-200,000 miles, it just didn't save me any more money. In fact, it would have cost me more.

Now, I haven't done a breakdown recently. So that might be a good idea for an upcoming post. I'm sure the technology has advanced even in the last 4 years. It seems that the hybrid and electric cars are becoming a bit more affordable for the "average joe".

What are your thoughts on hybrid and electric cars? Do you think they are the wave of the future or is there another technology that could be it? Would you buy a hybrid or electric for your next vehicle? Comment below.

Toyota Suspends Sales Of Lexus LS On Recall

Mon, 24 May 2010 08:00:00 EST

It looks like more trouble for Toyota...

Toyota Motor Corp. has suspended sales of Lexus LS vehicles in the United States as it waits to receive new parts following after a worldwide recall of the model, The Wall Street Journal reported late Monday on its Web site. On Friday, Toyota recalled about 3,800 late 2009 and certain 2010 Lexus LS 460 and LS 600h L vehicles due to a problem with the steering wheel.

Handling Supply Chain Disruptions

Mon, 24 May 2010 08:00:00 EST

The following article is provided by Manufacturing.net. With all the eathquakes, erruptions and now oil spills, it definitely shows the importance of having a contingency plan for your business supply chain.

by Amanda Earing, News Editor, Manufacturing.net

With the recent volcano eruption in Iceland, major manufacturers with global suppliers have had to halt operations as flights were grounded throughout Europe. Earlier this year, an earthquake in Chile ground supply chains in the area, halting major food source supplies.

Can disaster planning really help prevent these supply chain disruptions? Are the risks associated with lean inventories worth the cost when operations are halted until supplies are re-stocked? Natural disasters like this, and even the current BP oil leak, can prompt manufacturers to look more closely at their master operating plans.

Paul Smith, VP, Transportation & Logistics, NPI, says that while natural disasters are extremely difficult to predict, all companies must develop contingency plans to help mitigate issues that obviously arrive during awkward and unpredictable times in business.

Smith points out that clearly outlining contingency plans can send a message to customers that service will never be compromised, regardless of the situation.

“That may include having inventory in other parts of the globe that can be used to fulfill customer commitments. This, of course, comes with cost, but sends a strong message to customers that no matter what happens throughout the globe, the manufacturer is prepared for any situation, which can be the differential to the customer when it comes to choosing your products over the competition’s,” says Smith.

Earthquakes, tornadoes, and other natural disasters may be impossible to plan for, but having alternative shipping methods in place is just one example of how contingency plans can quickly solve logistical issues during a natural disaster with little effect on the rest of your operation, or your customer’s.

“In the case of the Iceland volcano, if it were to continue to erupt, the only contingency plans are to expand plans to truck as far south into lower Europe as possible and utilize southern Europe airports or to begin to increase dependence on ocean freight as a means,” says Paul Steiner, Director, Logistics, NPI.

But when an unavoidable disruption takes place, how can you ensure your supply chain maintains its high level of performance?

“There will be times when ensuring a high level of performance may not be possible. Contingency planning is a financial exercise that balances service with costs. In order to develop full contingency plans, you would have to maintain large inventory levels. You would have to balance safety stock, increase lead times, inventory hold costs and transportation costs,” says Steiner.

But with more manufacturers adopting just-in-time inventories, a supply chain disruption can have a domino effect on the entire operation. However, risks can be minimized and JIT inventory works very well the majority of the time.

“The risks come when there are large disruptions in the supply chain. Because you have planned for lean inventory, any adverse change in the market would have a larger effect on your business model because of the lack of inventory,” says Steiner.

Steiner notes that manufacturers must learn to balance safety stock and additional inventory carrying costs versus transportation mode expenses. Balancing your express shipments and smaller lots versus economy shipments and bulk lots is also important.

“It is a constant balance between flexibility, delivery reliability (most susceptible to disruptions), lead time and inventory levels,” he says.

And when planning for a continuous supply chain, consider where your suppliers are located, vary them where possible, or find suppliers that can ship from other locations in the event of a disruption.

When determining local versus global suppliers and how their locations can affect your supply chain contingency plans, it is important to consider complex international laws, political landscape, implications of import duties and taxes and as well as the cost of disruptions.

“Lead times need to be fully understood for global suppliers and are longer due to ocean sailings, which can be 2-3 weeks. Air freight can always be used to move product in a more expedient matter and can be used as contingency. There is usually less control over production changes and greater difficulties in adjusting to schedule changes,” says Steiner.

When disruptions do occur, getting the supplies you need in a timely matter will determine the alternative method for shipping materials as well.

“Typically, when dealing with a supply chain disruption, the costs of getting the goods you need when you need them will rise substantially because it will require alternative methods of transportation,” says Smith.

Shipments that typically move via ocean can take 20-30 days to arrive versus Air Freight which can take from one to three days to get to you from anywhere in the globe.
“Obviously, with this improved time-in-transit, there is a large differential in the cost associated with these types of services. So, if the bottom line depends on improved time-in-transit, manufacturers should be prepared to pay for it,” says Smith.

Another factor to consider in developing contingency plans is internal threats, such as strikes, breakdowns and stock outs. These are bit more controllable than natural disasters, but the key is to make sure you coordinate and communicate with your suppliers.

Whether the threat is internal or external, manufacturers need to be aware of the impact that the supply chain disruption will have on the customer.

“Most customers understand the sensitivity of natural disasters beyond our control. While the customer understands that issues like this can arise, they expect their suppliers to have well laid out plans to help remedy the situation to ensure that their needs are met. This is often the major differentiator with determining one supplier over another. Essentially, they will choose a supplier based on its ability to develop and ultimately implement contingency plans and/or changes in operations to help ensure that a high level of service and quality are always met no matter what the situation is,” concludes Smith.

Toyota Issues New Recall

Fri, 21 May 2010 08:00:00 EST

Earlier today, Toyota issued a recall on some Lexus 460 and 600 models. There have been customer issues with the steering wheels.

Die-Tech Stamping Cell Phone Components

Fri, 21 May 2010 08:00:00 EST

Watch a Die-Tech automated press manufacture precision metal stampings to be used in the communications and consumer electronics industry. Do you have a Die-Tech metal stamping in your phone?

Bailouts: Solving the Problem or Shifting the Debt?

Wed, 19 May 2010 08:00:00 EST

On Monday, the Treasury Department said that they were going to lose $1.6 billion on a loan they made to Chrysler in 2009. Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said. Also on Monday, General Motors posted a profit for the first quarter in hopes of going public later this year to end government ownership. However, are the bailouts actually helping anything or is the debt just being shifted to taxpayers?

Treasury officials said that the government had no plans to boost its stake in the new Chrysler to cover those losses. So my question is, if they aren't going to increase ownership to cover those loses, who is covering them? It also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to the company that went through bankruptcy proceedings. I think the old saying comes to mind, "you can't get blood out of a turnip". So that's another $1.9 billion passed onto tax payers. The Treasury indicated they didn't have much hope in recouping that money either. But heck... why do you need someone to pay back the money they loaned when you can just print more of it?

This seems to be and has been the crux of the matter with the auto and bank bailouts. Bad business practices are being awarded great sums of money while it's the little tax payers and the generations to come that are going to be paying for these bailouts. What makes anyone really think that either GM or Chrysler are going to end up profitable for the long term when they already have proven for over a decade that they don't know how to be profitable? Why not lend money to companies that have a track record of success to stimulate the economy?

After GM Chrysler got their bailout money, they didn't create more jobs... the CUT jobs, closed factories and instead of selling Hummer, Saturn and other brands, they simply said a deal couldn't be reached and made them disappear. Last time I checked, the purpose of liquidating assets was to get ANY money at all that you could get. It's not about turning a profit or even getting the assets perceived worth. It's all about cash flow. However, then I have to think about who we are talking about here. GM and Chrysler have proven over a decade that turning a profit and cash flow are not their priority.

Sorry for being so pessimistic about this whole bailout. But until every bank and automaker pay back every penny they borrowed from the American people with interest, it's all just smoke and mirrors. Pushing corporate America's debt on the American people. My last question is... who's bailing us out?

To read the articles click the links below:

GM Posts Profit for 1st Quarter

Treasury Takes $1.6 Billion Loss on Chrysler Loan

GM Posts $865 Million Net Income in Push for Public Offering

Mon, 17 May 2010 08:00:00 EST

It looks like GM is trying to get out of the control of "Big Brother" as quickly as they can...

By Katie Merx and David Welch

May 17 (Bloomberg) -- General Motors Co. reported first- quarter net income of $865 million, helped by higher production and smaller discounts, as the maker of the GMC Terrain and the Chevrolet Equinox works toward an initial public offering.

Operating profit was $1.2 billion in the first three months of the year, and the company generated $1 billion in free cash flow, Detroit-based GM said today in a statement. Revenue rose 40 percent from the same period a year earlier to $31.5 billion.

Chief Executive Officer Ed Whitacre has said reporting a profit is a necessary milestone as the biggest U.S. automaker seeks freedom from government ownership. GM, which emerged from bankruptcy protection in July, is considering a return to the auto-lending business to make its offering more appealing to investors, people familiar with the plans said last week.

To read the rest of the article, click here.

It's the Best and Worst of Times for Toyota

Tue, 11 May 2010 08:00:00 EST

It seems to be the best and worst of times for Toyota. On Monday, the U.S. National Highway Traffic Safety Administration said it is carrying out a new investigation into Toyota to see whether it had stalled on a recall for a steering defect in 2005 in the U.S. It had carried out recalls for similar problems in Japan in 2004.

However, the negative press only seems to be putting a few little dings in Toyota's armor. Toyota said Tuesday that January-March profit totaled 112 billion yen ($1.2 billion) compared with a 766 billion yen loss the year before.

Not bad for being the car company that everyone seems to be picking on at the moment. To read the complete article, click here.

Green Before "Green"... Lean Manufacturing

Tue, 11 May 2010 08:00:00 EST

Going Green seems to be the new marketing ploy for many companies. Everywhere we look, whether on store shelves or on the internet, going green is the new trend and is a way for businesses to try and separate themselves from their competition. Green also seems to be good for business. According to Mintel International, sales of "green" products and organic foods have jumped 15 percent since 2006.

Companies like Walmart and Target are going green by pushing reusable bags and offering a large variety of green products in their stores. While "green" seems to be working for many retailers, what does it mean for manufacturers... specifically, metal stamping firms?

It's easy to see that the automotive companies have all jumped on the hybrid band wagon. Many of the huge food companies are now offering organic and natural products, but how is a metal stamping firm to benefit from "Going Green"?

Thinking about this for a few minutes, I came to realize that Lean manufacturing is really all about being efficient and promoting sustainability. Let's take a look at the four goals of Lean.

The four goals of Lean manufacturing systems are to:

Improve Quality

To stay competitive in today’s marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. For most customers

Eliminate Waste

Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. There are seven types of waste:

Transport (unnecessary movement of materials)
Inventory (excess inventory not directly required for current orders)
Motion (extra steps taken by employees because of inefficient layout)
Waiting (periods of inactivity)
Overproduction (occurs when production should have stopped)
Over Processing (rework and reprocessing)
Defects (do not conform to specifications or expectations)

Reduce Time

Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs.

Reduce Total Costs

To minimize cost, a company must produce only to customer demand. Overproduction increases a company’s inventory costs because of storage needs.

By manufacturers utilizing Lean manufacturing systems, the companies are not only being more profitable for their bottom lines, but also using less resource such as raw materials, electricity, gas, water and transportation costs to limit their impact on the environment. Lean manufacturers are probably some of the greenest companies on the planet.

Now let's not kid ourselves, most companies aren't going green because they really love the environment and because it's just the right thing to do. Most companies are making the switch to green and to Lean because it's affecting their bottom line in a profitable way. While the big boys like Walmart and Target take front and center stage for going green, I'd like to give recognition to the Lean manufacturers around the world that were going green through Lean systems before going green was the "in" thing to do.

In what ways do you think Lean manufacturers will utilize green advancements in technology; such as solar power, wind power and other technologies, to improve quality, eliminate waste, reduce time and reduce total costs?

Toyota Waited Almost A Year To Issue Recall!

Mon, 10 May 2010 08:00:00 EST

It seems things are going from bad to worse for Toyota. While they are still the number one automotive company in the world and had strong sales for March and April, their coverage in the media due to the defects and recalls certainly isn't helping them.

According to an Associated Press Investigation, Toyota waited nearly a year in 2005 to recall trucks and SUVs in the United States with defective steering rods, despite issuing a similar recall in Japan and receiving dozens of reports from American motorists about rods that snapped without warning.

To read the entire article, click here.

US Cars Superior to Foreign Cars?

Wed, 05 May 2010 08:00:00 EST

In a recent AP-GFK Poll, American consumer sentiment seems to be favoring domestic automobiles over foreign car makers. In the poll, 38% of those surveyed said that American automakers produced the best quality cars. Mean while, 33% of those polled said that foreign automakers produced the best quality cars. This is a huge shift from the same poll done in 2006. In December 2006, consumers heavily favored foreign automobiles (49%) over domestic (29%).

The poll suggests those numbers are largely fueled by a plunge in Toyota's reputation and an upsurge in Ford's. The poll was conducted in March, as Toyota was being hit hard by negative publicity over its recall of more than 8 million vehicles around the globe and allegations that it responded sluggishly to safety concerns.

Though the U.S. automakers advantage is slim, it marks a significant boost in consumer confidence for American automakers beaten badly by the recession but more so by their poor business practices and the stiff competition from foreign manufacturers.

However, when those polled were asked specifically "which automaker makes the best quality cars"... the answer was 47% saying Asian companies such as Toyota, Honda and BMW. Only 38% said domestic companies such as Ford and General Motors.

So are US automobiles really on the rise or is this rise simply based on the way the poll questions were asked? The only way to really know the truth is to take a look at some real numbers.

General Motors posted a 6.4% gain in U.S. April sales as of yesterday. GM sold 183,997 vehicles in April, up from 173,007 vehicles the same month a year ago when U.S. auto sales were near the bottom of a punishing slump and the automaker was sliding toward bankruptcy. Sales for GM's four remaining brands -- Chevrolet, Buick, GMC and Cadillac -- rose 20% from a year earlier to 183,091 vehicles. Sales of the brands GM has dropped through its U.S. government-funded restructuring -- Hummer, Pontiac, Saab and Saturn -- plunged by 96% to just 906 vehicles as dealers sold off remaining inventory.

Chrysler Group said as of yesterday that U.S. April sales rose 25% to 95,703 vehicles from 76,682 a year ago. Chrysler brand sales for the month rose 61% to 22,386 vehicles, Jeep sales were flat at 19,645 vehicles, and Dodge sales rose 24% to 53,672 vehicles. Total car sales rose 96% and total truck sales increased 7% in April, Chrysler said.

The story was similar at Ford, which reported sales rose 25% on the strength of new models. Ford said it sold 162,996 vehicles last month thanks largely to beefed up demand for its Ford Fusion, Escape, Flex and Transit Connect vehicles. Ford sold fewer than 130,000 cars in April 2009. Ford, which has been battling Toyota for the No. 2 U.S. sales spot, said it has gained market share in 18 of the last 19 months.

Toyota said as of yesterday that U.S. April sales rose 24.4% to 157,439 vehicles from 126,540 a year ago. Passenger car sales rose 20% to 93,407 while light truck sales increased 31.5% to 64,032 and sports utility vehicle sales climbed 40.4% to 28,530. Toyota division sales rose 23.8% to 139,080 and Lexus division sales were 29.3% higher at 18,359.

According to April's numbers, GM has an edge of 26,558 vehicles sold for the month of April in the U.S. According to the Wall Street Journal, GM holds a slight advantage of market share at 19.1 percent in 2009, while Toyota held 16.1 percent, Ford percent held 14.6 and Chrysler held 10.7 percent.

In all, can we draw a conclusion that US cars are superior to Asian cars? I think it's a bit too early to make that proclamation. Even with all of Toyota's bad press from the recalls, consumers were jumping on the deals and incentives that were given in March and April.

GM is still leading in the U.S., with Toyota in second and Ford making some headway in third. However, in the global landscape, Toyota still leads the way with GM in second and Volkswagen in third.

So can we come to a conclusion that US cars are superior to Asian cars? Not really, it's like asking who is the best basketball player in the NBA? Kobe Bryant or LeBron James? Who makes a better Cheesesteak sub? Geno's or Pat's? It's just one of those things that will always debated... unless some automakers go out of business... then we'll know the truth.

I'll leave you with this last little tidbit... when those polled were asked "what would be your dream car", foreign automakers got the nod 38% to 31%. So when it seem that money is no object, foreign cars are superior.

Hamburger University is Coming to Die-Tech

Tue, 27 Apr 2010 08:00:00 EST

In 1961, McDonald's founded their now famous Hamburger University in a restaraunt in Elk Grove Village Illinois. The first students had to complete strictly required courses such as chemistry, marketing, and cooking so that when they graduated, they would be able to create formulas to increase the profit of McDonald's. Many of those with a "McDegree" were able to get jobs in a lab where they could invent new ways to enhance the food in an economical way. Today the Hamburger University is a 130,000 square foot facility where students learn just about everything they need to know about running a success McDonald's manufacturing operation. After all, isn't that the real business of McDonald's?

They are the largest and most efficient manufacturing company of fast edible food like substances in the world. I say "food like substances" because you, me and everyone else in the world still isn't sure about what it is we are actually eating when we buy a Big Mac. But that's another post for another blog.

But really, to McDonald's credit, they truly have a remarkably LEAN manufacturing process. From start to finish, they are the masters of efficiency in the fast food and quick service universe. Shouldn't that be the goal of any manufacturing company? To offer customers efficient, fast turnaround on orders. Granted, a Mickey D's burger may not be a real burger but whatever it is, no matter where you order it in the world, you get the same product in about the same time, every time.

That's the beauty of the systems and processes that McDonald's has put in place and everyone of their employees follows. Now, what if any other business, regardless of industry could put these same systems and processes into place, tailored to their industry?

Well, that's the goal of Richard W. Dennis, President and CEO of Die-Tech. Die-Tech is planning and developing their own version of Hamburger University. While I can't go into details at the moment... as it is still in the works. The goal is to create a in-house training modules for every department in the company.

Die-Tech has already had success with this type of training approach in their engineering department. The typical turnaround in the stamping industry for a die design is usually 2-3 weeks. Through the systems and training modules that have been put in place, Die-Tech is able to design a die within 1 week!

Through the training modules, Die-Tech was also able to train an individual that had NO previous die or engineering experience to create a die, release it to production and have less than a 3% error rate on their drawings. This has drastically cut down on rework time for die design to typically under 10 hours. The beauty of the process is that Die-Tech only needs 1 engineer that really understands the in and outs of the die design process... saving Die-Tech time and money.

The next addition to Die-Tech University will be on the production line. Each new Stamping Technician will be trained and become familiar with Die-Tech's systems and processes before ever working on the actual production line. This module will even include a "mock" press where the Stamping Technician trainee will become familiar with all the daily functions of running a stamping press. The goal is to cut down on waste and inefficiency on the actual production floor.

So Die-Tech isn't getting into the fast food industry. However, Die-Tech is always looking to improve and become better at what they do... Stamping Ideas into Reality. What do you think about Die-Tech University? Good idea? Bad idea? Let us know what you think.

US Manufacturing on the Rebound... Upcycle on the Way?

Mon, 19 Apr 2010 08:00:00 EST

Recently, I sat down with Richard W. Dennis, the President and CEO of Die-Tech, to discuss some recent trends in the manufacturing/metal stamping industries. Here are 3 of the trends that we discussed.

Trend #1   The Rebound of Manufacturing in North America

Due to the devaluing of the US dollar and the availability of a fairly trained labor force, Mr. Dennis forsees that manufacturing in North America to be on the rise. Economically, it's simply not making as much sense ($$) for companies in North America to be purchasing their stampings from Europe or China.

A few years ago, companies may have been getting a better deal. But now with the transportation costs and lag time, companies seem to be rethinking that strategy. All they'll need to make up their minds is a nice spike in oil prices... which we can always rely on our friends in the Middle East for that.

Trend #2   LEAN, Mean, Manufacturing Machines

So you would think with the manufacturing making a rebound in the US and North America, that it would equate to more jobs. Mr.Dennis said he "wouldn't go that far".

He said, "I think everyone is going to play that real close to the vest... everyone is looking at more efficient ways of doing things... with all the efficency we've made in this country in manufacturing, there is still several levels of improvement that can be done in every industry. In order to maintain profits and increase margins, I think everybody is forced to take more of a LEAN approach."

His case in point, Die-Tech is doing the work with 34 employees that used to take 60 employees. Over the last decade, Die-Tech has been able to generate the same amount of revenue with half the workforce. Mr.Dennis attributes that to Die-Tech's LEAN approach and highly automated process.

During the economic downturn, Die-Tech used that time to continue employee training and in refining their manufacturing and sales process. While other precision metal stamping firms are shutting their doors, Die-Tech is poised to capitalize on the opportunities ahead.

Trend #3   Shortage of Stampers... Upcycle on the Way?

Due to economic pressure, many metal stamping firms have been under duress for about a decade. Gross estimates say there were about 5,000 independent metal stamping firms in 1990. As of today, the best estimates say there are about 2,000 remaining.

Many financial forecasters are predicting a dip in the economy again in 2011. With another dip, it's very likely that we'll see more companies either close shop or be bought out. That will leave the door wide open for companies that have positioned themselves to capture the business of the failing companies. Of course, this is somewhat a speculation at the moment, as other financial forecasters are saying the exact opposite. Time will tell. But it's always better to be a few minutes early for your flight and make it... than a few minutes late and miss it.

What do you think about these trends? Let us know, comment below.

What's happening with Copper?

Wed, 09 Dec 2009 08:00:00 EST

Copper prices have soared 90% in 2009! This has impact on almost any device that uses electricity since most electrical contacts, connectors, pins, and leadframes are made using copper alloys. But reports indicate that prices are on their way down for 2010...

US Manufacturers at a global disadvantage due to increasing costs of taxes, health care, & pensions.

Tue, 13 Oct 2009 08:00:00 EST

Manufacturers, including precision metal stampers and their customers, continue to generate more economic activity per dollar of production than any other business sector in the United States. We also drive innovation by conducting nearly half of all research and development, creating the bulk of technology in our nation. However, we face rising costs for health care, pensions, corporate taxes, and raw materials that impact our competitiveness in a global, interconnected marketplace.

This new handbook also notes that we are not preparing our students and workers with the correct skills to help us compete globally and until we correct this we will continue to see our global market share erode.

Copper Supply Shortage Seen Looming

Tue, 06 Oct 2009 08:00:00 EST

Read Matt Vincent's Blog -- Copper supply shortage seen looming: According to reporting in UK trade Publication Mining Weekly.com: A copper supply shorage is looming, but top tier copper resources that could fill the supply gap are not only hard to find, but would take time to turn to account. A deficit of 88,000 tons is likely in the short term with a 10 million ton shortage by the year 2020.

Die-Tech's CEO Featured on MANTEC Website

Tue, 12 May 2009 08:00:00 EST

Mantec features Die-Tech, the precision metal stamping located in York Haven, PA, as one of their sucessful partnerships.

Die-Tech Wins Small Business Energy Grant

Tue, 12 May 2009 08:00:00 EST

Governor Rendell announced the 53 companies that have qualified for grants under the Small Business Energy Efficiency Grant Program that closed May 1, 2009. This program is the first under the $650 million Alternative Energy Investment Fund signed into law by the Governor last July. It provides small businesses of 100 employees or less with the opportunity to receive a 25 percent reimbursement grant of up to $25,000 to implement qualified energy efficiency improvements.

Die-Tech is the only corporation in York County to qualify for a grant under this program. We will reduce our electricity consumption by replacing T-12 fluorescent tubes with high-efficiency LED tubes in existing fixtures throughout the building. The LED tubes use 56% less energy, have a life expectancy that is five times greater than that of a fluorescent tube, while providing the same quality and amount of illumination.

The LED tubes also allow the Die-Tech to keep existing fixtures, saving capital and reducing waste going to landfills. Die-Tech sees this as a win-win project and is pleased to participate in the Governor's Energy Efficiency Program.

Time to Upgrade? Richard W. Dennis, President of Die-Tech, Inc., voices his opinions

Tue, 31 Mar 2009 08:00:00 EST

Richard W. Dennis, President of Die-Tech, Inc., a precision metal stamper Central PA is interviewed concerning replacement of manufacturing equipment. Die-Tech does customer, made-to-order, precision metal stampings for the automotive, medical devices, aerospace, military and other industries.

Die-Tech featured in the KeystoneEdge

Wed, 28 Jan 2009 08:00:00 EST

Die-Tech, the precision metal stampings manufacturer in Central Pennsylvania was the host to the DEP's Small Business Energy Efficiency Grant Program announcement in January. During this media event the acting Environmental Protection Secretary, John Hagar spoke with the press and invited small business across the state to apply for the new grant. After the announcement, the attendees where invited to tour Die-Tech's facility to gain a better understanding of the metal stampings that are produced right here in Central PA and shipped around the world for use in automotive, consumer electronics, medical, aerospace, military, and alternative energy devices.
Die-Tech manufactures metal stampings that are characterized by their light-weight, complex forms, high-quality and precision, including connectors, jumpers, lead frame, terminal leadframe, hybrid edge clips, and compliant pins.

PA State Energy Efficiency Grant Program Announced during media event at Die-Tech

Wed, 28 Jan 2009 08:00:00 EST

Die-Tech, a precision metal stamping manufacturer, hosted the DEP's announcement of a new Pennsylvania Energy Efficiency grant program on January 12th on their plant floor. Acting Environmental Protection Secretary John Hangar made the announcement for the new grant program before a host of guests and the Capital Region's news media. This program is designed to help small businesses in the state make the changes needed to conserve energy and improve their competitiveness in the global market.
Following the annoucement, Die-Tech personnel conducted guided tours of the metal stamping facility -- show casing their production of edge clips, connectors, nuclear filter media, and other precsion metal stampings made within the facility.

Die-Tech's Engineering Hotline gaining attention from the professionals in the metal forming industry

Wed, 28 Jan 2009 08:00:00 EST

Die-Tech's new hotline, staffed by engineers for engineers, is featured in MetalForming Magazine. This hotline was implemented to assist those tasked with the responsibility of sourcing or designing metal components to be used in their own manufacturing processes. These metal components may include clips, connectors, pins, heat sinks, jumpers, or lead frame. In fact, any thing that needs to be stamped of light-weight metals for the movement of electricity from one component to another.

Tech Boosts Value of Trained Workers

Wed, 28 Jan 2009 08:00:00 EST

When Richard Dennis, president of Die-Tech Inc. in York County, was warned of the "perfect labor storm" that threatens to erode the manufacturing workforce, he knew his company was already acting to ward off the inability to attract and keep skilled employees.

With both apprenticeship and mentoring programs in place for the past few years, Dennis mandates that all of his 52 employees receive regular training to maintain or improve the skills needed to keep his company competitive and productive.

He and other local manufacturers are beefing up their workforce to make it fit in the trend toward lean manufacturing, which demands an increased use of technology.

Die-Tech manufacturers metal stampings for high-technology applications in the automotive, medical, aerospace, military, consumer electronics, and tlelecommnications industries.

Terminal Leadframes for the Automotive Industry

Wed, 28 Jan 2009 08:00:00 EST

Die-Tech announces a new product launch -- the Terminal Leadframe. A Terminal Leadframe is a custom designed, usually plastic over-molded, precision metal stamping that mates with an industry standard connector in automotive 'black-box' applications.

These custom metal stampings are more robust to meet the demands of under-the-hood automotive environments, yet have the precision required for the plastic injection molds used in the over-molding most applications require.

The concepts learned and developed for the Terminal Leadframe enable Die-Tech to fast-track the product to production. This time-to-market advantage is key to our customer's abilty to compete in today's marketplace.

Metalforming Magazine Features Our Engineering Hotline

Wed, 28 Jan 2009 08:00:00 EST

Die-Tech's new stamping design hotline hit the September issue of Metalforming, the magazine of the Precision Metalforming Association (PMA). The article explains the type of questions our engineers will expect to answer for those tasked with the design and use of precision metal stampings such as connectors, terminal leadframe, spreaders, small heat sinks, hybrid edge clips, SIPs, DIPs, ZIPs, and other metal stampings that allow electricity to move from one component or, area of a device, to another.

Precision Metal Stamping Manufacturer Trains and Retains Workforce

Thu, 09 Oct 2008 08:00:00 EST

Read how Die-Tech is preparing for the future and for the skilled workforce crunch that everyone is predicting. This precision metal stamping manufacturer has developed several career enhancement value streams for training employees. This training is provided both internally by Die-Tech personnel, and externally in partnership with MANTEC.

Hotline for Stamping Design Engineers Just a Phone Call Away

Fri, 23 May 2008 08:00:00 EST

Die-Tech, Inc., York Haven, PA, has introduced a stamping-design hotline as a resource for engineers and others manufacturing for the automotive, telecommunications, military, aerospace, industrial controls and other industries that use precision metal stampings. Call 1-888-89-STAMP for technical support, it is free and available 8 a.m. to 4 p.m., Monday through Friday.

Die-Tech and the Manufacturing Extention Partnership

Mon, 03 Mar 2008 08:00:00 EST

Our Lean corporate culture has enabled us to cut lead times, reduce inventory, reduce set up times, improve quality, and increase our flexibility. Our partnership with MANTEC provides us with cutting edge training on Lean techniques and principals.

A Spotlight on Success

Mon, 30 Apr 2007 08:00:00 EST

How does a company transform itself to an innovative, outward-facing organization? For Die-Tech, Inc., the York Haven manufacturer of precision metal stampings, the first step was benchmarking. Rather than settle for the minimum required to maintain its quality and technical certifications, the company took a hard, critical look at the comparisons it was gathering.

"You're first fight is always with data," says company President Richard W. Dennis. "We were guilty of a mindset that what we were finding didn't apply to us because we were different. But benchmarking showed the chinks in our armor."

Next, Die-Tech engaged a consultant that recommended a more robust training and career/personal development menu for the company's more than 100 employees. That process began eight years ago. Today, the spirit of innovation permeates the company culture. Among its key elements:

Significant exporting
Regular customer interface
New product introductions
On- and off-site training

Yet another element in Die-Tech's outreach is Dennis' service on the MANTEC board of directors, where his enthusiasm for learning and growing has impressed John Lloyd.

"I'm continually amazed at how much he reaches out to take on new initiatives -- simultaneously in many cases," Lloyd says. "He's built an infrastructure that enables his people to absorb those changes."

Die-Tech Interviewed Concerning Websites for Manufacturers

Fri, 30 Mar 2007 08:00:00 EST

Die-Tech, a precision metal stamper located in Central Pennsylvania, understands how powerful the web will become to manufacturers around the world.

Manufacturing Technology Internship Program

Tue, 31 Oct 2006 08:00:00 EST

The Technology Council of Central Pennsylvania (TCCP), Ben Franklin Technology Partners, MANTEC, and Department of Community and Economic Development (DCED) announced the winner of an innovative internship program that matches regional manufacturers with the region's most qualified students.

The winners of the Manufacturing Technology Internship Progam are:

Die-Tech, Inc.
Videon Central, Inc.
Johnstown Speciality Castings, Inc.
Verefi Technologies
QorTek, Inc.
Intuitive Control Systems, Inc.

"The program is a great step forward for all of us working together to re-build manufacturing in Pennsylvania," said Tom Palisin, Pennsylvania's Manufacturing Ombudsman, who works within the Department of Community and Economic Development. "By expanding intership opportunities we are building a foundation of knowledgeable, enterprising individuals who will be poised to expand manufacturing in the Commonwealth."